Investments and Restricted Investments

Accounting standards pertaining to fair value measurements establish a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The inputs used to measure fair value include: Level 1, observable inputs such as quoted prices in active markets; Level 2, inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, unobservable inputs in which little or no market data exists. This fair value hierarchy requires the Company to develop its own assumptions and maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Corporate, U.S. government and agency, and mortgage-backed securities are classified within Level 1 or Level 2 because these securities are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs.

There were no transfers between Level 1 and Level 2 categories during the fiscal year ended February 3, 2018. The fair value of the Company’s financial instruments as of February 3, 2018 and January 28, 2017 are as follows:



($000)	2017		2016
Cash and cash equivalents (Level 1)	$	1,290,294	$	1,111,599

Investments (Level 2)	$	1,224	$	1,288

Restricted cash and cash equivalents (Level 1)	$	62,978	$	64,581

Restricted investments (Level 2)	$	2,838	$	3,628

The underlying assets in the Company’s non-qualified deferred compensation program as of February 3, 2018 and January 28, 2017 (included in Other long-term assets and in Other long-term liabilities) primarily consist of participant-directed money market, stable value, stock, and bond funds. The fair value measurement for funds with quoted market prices in active markets (Level 1) and for funds without quoted market prices in active markets (Level 2) are as follows:



($000)	2017		2016
Level 1	$	104,590	$	84,933
Level 2	16,023		15,490
Total	$	120,613	$	100,423