Marketable Securities

9 Months Ended

Nov. 26, 2016

We hold the following marketable securities, all classified as available for sale:



(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
November 26, 2016
Mutual fund	$	30,353	$	—	$	(84	)	$	30,269
Municipal bonds	11,419		50		(141		)	11,328
Total marketable securities	$	41,772	$	50	$	(225	)	$	41,597
February 27, 2016
Mutual fund	$	30,178	$	—	$	(55	)	$	30,123
Municipal bonds	12,393		285		(109		)	12,569
Total marketable securities	$	42,571	$	285	$	(164	)	$	42,692

We are invested in a mutual fund holding short-term government securities as a means of deploying excess cash generated from operations while preserving liquidity.

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 November 26, 2016, 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 test for other-than-temporary losses on a quarterly basis and whenever events or changes in circumstances indicate that the carrying amount of an investment may not be recoverable. We consider the unrealized losses indicated above 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.

The amortized cost and estimated fair values of municipal bonds at November 26, 2016, 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	$	367	$	366
Due after one year through five years	4,166		4,164
Due after five years through 10 years	5,594		5,606
Due after 10 years through 15 years	1,292		1,192
Total	$	11,419	$	11,328

Gross realized gains and losses were not significant during the first nine months of fiscal 2017 and fiscal 2016.