XML 88 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
Marketable Securities
 12 Months Ended
Mar. 02, 2013
Marketable Securities [Abstract]  
Marketable Securities
Marketable Securities

At March 2, 2013, the Company has investments in municipal bonds of $38.8 million; $26.0 million is current and $12.8 million is non-current. The Company’s wholly owned insurance subsidiary, Prism Assurance, Ltd. (Prism), holds $12.9 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 or 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 March 2, 2013 and March 3, 2012, are as follows: 
(In thousands)
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Estimated
Fair
Value
March 2, 2013
 
 
 
 
 
 
 
Municipal bonds
$
38,927

 
$
127

 
$
(240
)
 
$
38,814

Total investments
$
38,927

 
$
127

 
$
(240
)
 
$
38,814

March 3, 2012
 
 
 
 
 
 
 
Municipal bonds
$
19,670

 
$
188

 
$
(258
)
 
$
19,600

Total investments
$
19,670

 
$
188

 
$
(258
)
 
$
19,600



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 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 March 2, 2013: 
 
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
$
14,557

 
$
(42
)
 
$
1,052

 
$
(198
)
 
$
15,609

 
$
(240
)
Total investments
$
14,557

 
$
(42
)
 
$
1,052

 
$
(198
)
 
$
15,609

 
$
(240
)


The amortized cost and estimated fair values of investments at March 2, 2013, 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
$
26,010

 
$
26,007

Due after one year through five years
4,122

 
4,160

Due after five years through 10 years
7,174

 
7,221

Due after 10 years through 15 years
1,530

 
1,332

Due beyond 15 years
91

 
94

Total
$
38,927

 
$
38,814



The Company recognized gross realized gains of $0.3 million, $0.8 million and $0.4 million in fiscal 2013, 2012 and 2011, respectively. Gross realized losses were not material during either fiscal 2013 or 2012, and were $0.1 million in fiscal 2011. The gross realized gains and losses are included in other (expense) income, net in the accompanying consolidated results of operations.