Investments and Restricted Investments

The amortized cost and fair value of the Company’s available-for-sale securities as of August 3, 2013 were:



($000)	Amortized cost		Unrealized gains		Unrealized losses			Fair value		Short-term		Long-term
Investments
Corporate securities	$	3,712	$	378	$	(12	)	$	4,078	$	—	$	4,078
Mortgage-backed securities	141		9		—			150		13		137
Total investments	3,853		387		(12		)	4,228		13		4,215

Restricted Investments
Corporate securities	110		7		—			117		—		117
U.S. government and agency securities	3,738		292		—			4,030		146		3,884
Total restricted investments	3,848		299		—			4,147		146		4,001
Total	$	7,701	$	686	$	(12	)	$	8,375	$	159	$	8,216

The amortized cost and fair value of the Company's available-for-sale securities as of February 2, 2013 were:



($000)	Amortized cost		Unrealized gains		Unrealized losses			Fair value		Short-term		Long-term
Investments
Corporate securities	$	4,715	$	468	$	(14	)	$	5,169	$	1,013	$	4,156
Mortgage-backed securities	276		16		—			292		74		218
Total investments	4,991		484		(14		)	5,461		1,087		4,374

Restricted Investments
Corporate securities	1,360		34		—			1,394		1,275		119
U.S. government and agency securities	3,748		397		—			4,145		—		4,145
Total restricted investments	5,108		431		—			5,539		1,275		4,264
Total	$	10,099	$	915	$	(14	)	$	11,000	$	2,362	$	8,638

The amortized cost and fair value of the Company’s available-for-sale securities as of July 28, 2012 were:



($000)	Amortized cost		Unrealized gains		Unrealized losses			Fair value		Short-term		Long-term
Investments
Corporate securities	$	5,104	$	490	$	(45	)	$	5,549	$	1,424	$	4,125
Mortgage-backed securities	425		22		—			447		32		415
Total investments	5,529		512		(45		)	5,996		1,456		4,540

Restricted Investments
Corporate securities	1,358		67		—			1,425		255		1,170
U.S. government and agency securities	3,759		468		—			4,227		—		4,227
Total restricted investments	5,117		535		—			5,652		255		5,397
Total	$	10,646	$	1,047	$	(45	)	$	11,648	$	1,711	$	9,937

Accounting standards pertaining to fair value measurements establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. This fair value hierarchy also requires the Company to 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.

Investments and restricted investments measured at fair value at August 3, 2013 are summarized below:



	Fair Value Measurements at Reporting Date
($000)	August 3, 2013		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Investments
Corporate securities	$	4,078	$	—	$	4,078	$	—
Mortgage-backed securities	150		—		150		—
Total investments	4,228		—		4,228		—

Restricted Investments
Corporate securities	117		—		117		—
U.S. government and agency securities	4,030		4,030		—		—
Total restricted investments	4,147		4,030		117		—
Total	$	8,375	$	4,030	$	4,345	$	—

Investments and restricted investments measured at fair value at February 2, 2013 are summarized below:



	Fair Value Measurements at Reporting Date
($000)	February 2, 2013		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Investments
Corporate securities	$	5,169	$	—	$	5,169	$	—
Mortgage-backed securities	292		—		292		—
Total investments	5,461		—		5,461		—

Restricted Investments
Corporate securities	1,394		—		1,394		—
U.S. government and agency securities	4,145		4,145		—		—
Total restricted investments	5,539		4,145		1,394		—
Total	$	11,000	$	4,145	$	6,855	$	—

Investments and restricted investments measured at fair value at July 28, 2012 are summarized below:



	Fair Value Measurements at Reporting Date
($000)	July 28, 2012		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Investments
Corporate securities	$	5,549	$	—	$	5,549	$	—
Mortgage-backed securities	447		—		447		—
Total investments	5,996		—		5,996		—

Restricted Investments
Corporate securities	1,425		—		1,425		—
U.S. government and agency securities	4,227		4,227		—		—
Total restricted investments	5,652		4,227		1,425		—
Total	$	11,648	$	4,227	$	7,421	$	—

The future maturities of investment and restricted investment securities at August 3, 2013 were:



	Investments				Restricted Investments
($000)	Cost basis		Estimated fair value		Cost basis		Estimated fair value
Maturing in one year or less	$	13	$	13	$	144	$	146
Maturing after one year through five years	3,340		3,613		808		894
Maturing after five years through ten years	500		602		2,896		3,107
Total	$	3,853	$	4,228	$	3,848	$	4,147

The underlying assets in the Company’s non-qualified deferred compensation program totaling $86.3 million, $76.9 million and $74.2 million as of August 3, 2013, February 2, 2013, and July 28, 2012, respectively (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) totaled $74.6 million, $65.9 million, and $63.5 million as of August 3, 2013, February 2, 2013, and July 28, 2012, respectively. The fair value measurement for funds without quoted market prices in active markets (Level 2) totaled $11.7 million, $11.0 million, and $10.7 million as of August 3, 2013, February 2, 2013, and July 28, 2012, respectively. Fair market value for these Level 2 funds is considered to be the sum of participant funds invested under a group annuity contract plus accrued interest.