Marketable Securities

6 Months Ended

Aug. 27, 2011

Marketable Securities

Marketable Securities

6. Marketable Securities

The Company has investments in municipal bonds of $17.3 million; $5.3 million is current and $12.0 million is non-current. The Company's wholly owned insurance subsidiary, Prism Assurance, Ltd. (Prism), holds $10.6 million of the 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. All of the Company's fixed maturity investments are classified as "available-for-sale," are carried at fair value and are reported as short-term marketable securities available for sale and marketable securities available for sale in the consolidated balance sheet.

The amortized cost, gross unrealized gains and losses, and estimated fair values of investments available for sale at August 27, 2011 and February 26, 2011, are as follows:

(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
August 27, 2011
Municipal bonds	$	17,323	$	192	$	(251	)	$	17,264
Total investments	$	17,323	$	192	$	(251	)	$	17,264
February 26, 2011
Variable rate demand notes	$	7,300	$	—	$	—		$	7,300
Municipal bonds		19,619		313		(360	)		19,572
Total investments	$	26,919	$	313	$	(360	)	$	26,872

The Company tests for other than temporary losses on a quarterly basis and has considered 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 following table presents the length of time that available-for-sale securities were in continuous unrealized loss positions, but were not deemed to be other than temporarily impaired, as of August 27, 2011:

	Less Than 12 Months					Greater Than or Equal to 12 Months					Total
(In thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Municipal bonds	$	462	$	(1	)	$	1,100	$	(250	)	$	1,562	$	(251	)
Total investments	$	462	$	(1	)	$	1,100	$	(250	)	$	1,562	$	(251	)

The amortized cost and estimated fair values of investments at August 27, 2011, 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 call or prepayment penalties.

(In thousands)	Amortized Cost		Estimated Market Value
Due within one year	$	5,247	$	5,256
Due after one year through five years		3,784		3,830
Due after five years through 10 years		4,458		4,537
Due after 10 years through 15 years		2,239		2,284
Due beyond 15 years		1,595		1,357
Total	$	17,323	$	17,264

The Company recognized gross realized gains of $0.4 million during both the three and six-month periods of fiscal 2012, which are included in other income, net in the accompanying consolidated results of operations. Gross realized losses were not material during that timeframe, and there were immaterial amounts of realized gains and realized losses during the three and six-month periods of fiscal 2011.