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Fair Value Measurements - Notes to Financial Statements
3 Months Ended
Apr. 30, 2022
Fair Value Measurements [Abstract]  
Fair Value Disclosures Text Block
NOTE 7
 
– FAIR VALUE MEASUREMENTS:
The following tables
 
set forth information regarding the Company’s financial assets and liabilities that are
measured
 
at fair
 
value
 
(in thousands)
 
as of April
 
30, 2022
 
and January
 
29, 2022:
Quoted
Prices in
Active
Significant
Markets for
Other
Significant
Identical
Observable
Unobservable
April 30, 2022
Assets
Inputs
Inputs
Description
Level 1
Level 2
Level 3
Assets:
 
State/Municipal Bonds
$
28,514
$
-
$
28,514
$
-
 
Corporate Bonds
56,515
-
56,515
-
 
U.S. Treasury/Agencies Notes and Bonds
21,112
-
21,112
-
 
Cash Surrender Value of Life Insurance
11,033
-
-
11,033
 
Asset-backed Securities (ABS)
13,512
-
13,512
-
 
Corporate Equities
803
803
-
-
 
Commercial Paper
367
-
367
-
Total Assets
$
131,856
$
803
$
120,020
$
11,033
Liabilities:
 
Deferred Compensation
(9,272)
-
-
(9,272)
Total Liabilities
$
(9,272)
$
-
$
-
$
(9,272)
Quoted
Prices in
Active
Significant
Markets for
Other
Significant
Identical
Observable
Unobservable
January 29,
2022
Assets
Inputs
Inputs
Description
Level 1
Level 2
Level 3
Assets:
 
State/Municipal Bonds
$
30,451
$
-
$
30,451
$
-
 
Corporate Bonds
76,909
-
76,909
-
 
U.S. Treasury/Agencies Notes and Bonds
19,715
-
19,715
-
 
Cash Surrender Value of Life Insurance
11,472
-
-
11,472
 
Asset-backed Securities (ABS)
18,556
-
18,556
-
 
Corporate Equities
818
818
-
-
 
Commercial Paper
367
-
367
-
Total Assets
$
158,288
$
818
$
145,998
$
11,472
Liabilities:
 
Deferred Compensation
(10,020)
-
-
(10,020)
Total Liabilities
$
(10,020)
$
-
$
-
$
(10,020)
The Company’s investment
 
portfolio was primarily
 
invested in corporate
 
bonds and tax-exempt
 
and taxable
governmental debt securities
 
held in
 
managed accounts with underlying ratings of A or
 
better at April
 
30,
2022 and
 
January 29,
 
2022.
 
The state,
 
municipal and corporate bonds
 
have contractual maturities which
range from one day to 4.6 years. The U.S. Treasury Notes
 
have contractual
 
maturities which
 
range from 46
days
 
to
 
2.4
 
years.
 
These
 
securities
 
are
 
classified
 
as
 
available-for-sale and
 
are
 
recorded
 
as
 
Short-term
investments,
 
Restricted
 
cash and
 
Other assets
 
on the accompanying
 
Condensed
 
Consolidated
 
Balance
 
Sheets.
These assets are carried at fair value with unrealized
 
gains and losses reported net of taxes in Accumulated
other comprehensive
 
income. The
 
asset-backed
 
securities
 
are bonds comprised
 
of auto loans and bank
 
credit
cards that carry AAA ratings.
 
The auto loan asset-backed
 
securities
 
are backed by static pools of auto loans
that were
 
originated
 
and serviced
 
by captive
 
auto finance
 
units, banks
 
or finance
 
companies.
 
The bank
 
credit
card asset-backed securities
 
are backed by
 
revolving pools of credit card receivables generated by account
holders
 
of cards
 
from American
 
Express,
 
Citibank,
 
JPMorgan
 
Chase,
 
Capital
 
One, and
 
Discover.
Additionally,
 
at
 
April
 
30,
 
2022,
 
the
 
Company
 
had
 
$
0.8
 
million
 
of
 
corporate
 
equities
 
and
 
deferred
compensation
 
plan assets
 
of $
11.0
 
million.
 
At January
 
29, 2022, the
 
Company
 
had $
0.8
 
million
 
of corporate
equities
 
and deferred
 
compensation
 
plan assets
 
of $
11.5
 
million.
 
All of these
 
assets
 
are recorded
 
within Other
assets
 
in the
 
Condensed
 
Consolidated
 
Balance
 
Sheets.
 
Level 1 category
 
securities
 
are measured
 
at fair value
 
using quoted
 
active market
 
prices.
 
Level 2 investment
securities include corporate and
 
municipal bonds for
 
which quoted
 
prices may
 
not
 
be
 
available on
 
active
exchanges for identical instruments.
 
Their fair value is
 
principally based on market values determined by
management with
 
assistance of
 
a
 
third-party pricing
 
service.
 
Since
 
quoted
 
prices in
 
active
 
markets for
identical assets
 
are not available,
 
these prices are determined
 
by the pricing service
 
using observable
 
market
information
 
such
 
as
 
quotes
 
from
 
less
 
active
 
markets
 
and/or
 
quoted
 
prices
 
of
 
securities
 
with
 
similar
characteristics,
 
among
 
other factors.
Deferred compensation
 
plan assets consist
 
of life insurance
 
policies.
 
These life insurance
 
policies are
 
valued
based on the
 
cash surrender
 
value of the
 
insurance
 
contract,
 
which is determined
 
based on such
 
factors
 
as the
fair value
 
of the underlying
 
assets and
 
discounted
 
cash flow
 
and are therefore
 
classified
 
within Level
 
3 of the
valuation hierarchy. The
 
Level 3
 
liability associated with the
 
life insurance policies represents a
 
deferred
compensation
 
obligation, the value of which is tracked via underlying insurance
 
funds’ net asset values, as
recorded in
 
Other
 
noncurrent liabilities
 
in
 
the
 
Condensed Consolidated Balance
 
Sheet.
 
These
 
funds
 
are
designed
 
to mirror
 
mutual
 
funds and
 
money
 
market
 
funds
 
that are
 
observable
 
and actively
 
traded.
The following tables
 
summarize the change in
 
fair value
 
of the
 
Company’s financial assets and
 
liabilities
measured
 
using
 
Level
 
3 inputs
 
as of April
 
30, 2022
 
and January
 
29, 2022
 
(dollars
 
in thousands):
Fair Value
Measurements Using
Significant Unobservable
Asset Inputs (Level 3)
Cash Surrender Value
Beginning Balance at January 29, 2022
$
11,472
Redemptions
-
Additions
-
Total gains or (losses)
 
Included in interest and other income (or changes in net assets)
(439)
 
Included in other comprehensive income
-
Ending Balance at April 30, 2022
$
11,033
Fair Value
Measurements Using
Significant Unobservable
Liability Inputs (Level 3)
Deferred Compensation
Beginning Balance at January 29, 2022
$
(10,020)
 
Redemptions
489
 
Additions
(149)
 
Total (gains) or losses
 
Included in interest and other income (or changes in net assets)
408
 
Included in other comprehensive income
-
Ending Balance at April 30, 2022
$
(9,272)
Fair Value
Measurements Using
Significant Unobservable
Asset Inputs (Level 3)
Cash Surrender Value
Beginning Balance at January 30, 2021
$
11,263
Redemptions
-
Additions
-
 
Total gains or (losses)
 
Included in interest and other income (or changes in net assets)
209
 
Included in other comprehensive income
-
Ending Balance at January 29, 2022
$
11,472
Fair Value
Measurements Using
Significant Unobservable
Liability Inputs (Level 3)
Deferred Compensation
Beginning Balance at January 30, 2021
$
(10,316)
 
Redemptions
1,010
 
Additions
(304)
 
Total (gains) or losses
 
Included in interest and other income (or changes in net assets)
(410)
 
Included in other comprehensive income
-
Ending Balance at January 29, 2022
$
(10,020)