Marketable Securities

3 Months Ended

May. 30, 2015

Marketable securities available for sale at May 30, 2015 and February 28, 2015, were as follows:



(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
May 30, 2015
Mutual fund	$	30,011	$	—	$	(13	)	$	29,998
Municipal bonds	$	10,060	$	71	$	(147	)	$	9,984
Commercial paper	$	5,000	$	—	$	—		$	5,000
Total available for sale securities	$	45,071	$	71	$	(160	)	$	44,982

February 28, 2015
Municipal bonds	$	10,973	$	127	$	(118	)	$	10,982
Total available for sale securities	$	10,973	$	127	$	(118	)	$	10,982

As of May 30, 2015, available for sale securities with a fair value of $1.1 million have been in a continuous unrealized loss position for more than 12 months with unrealized losses of $0.1 million.

During the quarter, the Company invested in a mutual fund holding government short-term securities and commercial paper as a means of deploying excess cash generated from operations while preserving liquidity.

The Company’s wholly-owned insurance subsidiary, Prism Assurance, Ltd. (Prism), holds our municipal bonds. Prism insures a portion of the Company’s workers’ compensation, general liability and automobile liability risks using reinsurance agreements to meet statutory requirements. The reinsurance carrier requires Prism to maintain fixed-maturity investments, which are generally high-quality municipal bonds, for the purpose of providing collateral for Prism’s obligations under the reinsurance agreement.

The Company tests for other-than-temporary losses on a quarterly basis and considers the unrealized losses indicated above to be temporary in nature. The Company intends to hold the investments until it can recover the full principal amount, and has the ability to do so based on other sources of liquidity. The Company expects such recoveries to occur prior to the contractual maturities.

The amortized cost and estimated fair values of investments at May 30, 2015, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalty.



(In thousands)	Amortized Cost		Estimated Fair Value
Due within one year	$	5,277	$	5,281
Due after one year through five years	2,816		2,816
Due after five years through 10 years	5,717		5,749
Due after 10 years through 15 years	1,250		1,138
Total	$	15,060	$	14,984

Gross realized gains and losses were not significant during the first three-months of fiscal 2016 or fiscal 2015.