Marketable Securities

9 Months Ended

Nov. 28, 2015

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



(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
November 28, 2015
Mutual fund	$	30,107	$	—	$	(56	)	$	30,051
Municipal bonds	11,111		123		(127		)	11,107
Commercial paper	30,517		—		—			30,517
Total marketable securities	$	71,735	$	123	$	(183	)	$	71,675

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

As of November 28, 2015, available for sale securities with a fair value of $1.2 million have been in a continuous unrealized loss position for more than 12 months, with unrealized losses of $0.1 million.

In the current year, the Company invested in commercial paper and a mutual fund holding short-term government securities 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 municipal bonds and commercial paper at November 28, 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	$	30,601	$	30,602
Due after one year through five years	2,948		2,966
Due after five years through 10 years	6,829		6,922
Due after 10 years through 15 years	1,250		1,134
Total	$	41,628	$	41,624

Gross realized gains and losses were not significant during the first nine months of fiscal 2016 and were $0.1 million during the first nine months of fiscal 2015.