Marketable Securities

3 Months Ended

Jun. 03, 2017

Marketable securities are classified as available for sale:



(In thousands)	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses		Estimated Fair Value
June 3, 2017
Municipal bonds	7,888	145	(57	)	7,976
March 4, 2017
Municipal bonds	9,595	91	(97	)	9,589

We have a wholly-owned insurance subsidiary, Prism Assurance, Ltd. (Prism), which holds municipal bonds. Prism insures a portion of our general liability, workers’ compensation 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.

As of June 3, 2017, marketable 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. We consider these unrealized losses to be temporary in nature. We intend to hold our investments until the full principal amount can be recovered, and we have the ability to do so based on other sources of liquidity. Gross realized gains and losses were not significant during the first three months of fiscal 2018 or fiscal 2017.

The amortized cost and estimated fair values of municipal bonds at June 3, 2017, 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	$	425	$	425
Due after one year through five years	2,656		2,696
Due after five years through 10 years	3,316		3,419
Due after 10 years through 15 years	1,291		1,236
Due beyond 15 years	200		200
Total	$	7,888	$	7,976