Investments and Restricted Investments

The amortized cost and fair value of the Company’s available-for-sale securities as of October 27, 2012 were:



($000)	Amortized cost		Unrealized gains		Unrealized losses			Fair value		Short-term		Long-term
Investments
Corporate securities	$	5,102	$	507	$	(18	)	$	5,591	$	1,413	$	4,178
Mortgage-backed securities	321		18		—			339		120		219
Total investments	5,423		525		(18		)	5,930		1,533		4,397

Restricted Investments
Corporate securities	1,358		52		—			1,410		1,290		120
U.S. government and agency securities	3,754		432		—			4,186		—		4,186
Total restricted investments	5,112		484		—			5,596		1,290		4,306
Total	$	10,535	$	1,009	$	(18	)	$	11,526	$	2,823	$	8,703

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



($000)	Amortized cost		Unrealized gains		Unrealized losses			Fair value		Short-term		Long-term
Investments
Corporate securities	$	5,080	$	501	$	(78	)	$	5,503	$	401	$	5,102
Mortgage-backed securities	728		29		—			757		257		500
Total investments	5,808		530		(78		)	6,260		658		5,602

Restricted Investments
Corporate securities	1,357		94		—			1,451		—		1,451
U.S. government and agency securities	3,769		431		—			4,200		—		4,200
Total restricted investments	$	5,126	$	525	$	—		$	5,651	$	—	$	5,651
Total	10,934		1,055		(78		)	11,911		658		11,253

The amortized cost and fair value of the Company’s available-for-sale securities as of October 29, 2011 were:



($000)	Amortized cost		Unrealized gains		Unrealized losses			Fair value		Short-term		Long-term
Investments
Corporate securities	$	5,079	$	443	$	(72	)	$	5,450	$	—	$	5,450
Mortgage-backed securities	800		32		—			832		298		534
Total investments	5,879		475		(72		)	6,282		298		5,984

Restricted Investments
Corporate securities	1,357		95		—			1,452		—		1,452
U.S. government and agency securities	3,774		325		—			4,099		—		4,099
Total restricted investments	5,131		420		—			5,551		—		5,551
Total	$	11,010	$	895	$	(72	)	$	11,833	$	298	$	11,535

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 October 27, 2012 are summarized below:



			Fair Value Measurements at Reporting Date
	October 27, 2012		Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
($000)	October 27, 2012		(Level 1)		(Level 2)		(Level 3)
Investments
Corporate securities	$	5,591	$	—	$	5,591	$	—
Mortgage-backed securities	339		—		339		—
Total investments	5,930		—		5,930		—

Restricted Investments
Corporate securities	1,410		—		1,410		—
U.S. government and agency securities	4,186		4,186		—		—
Total restricted investments	5,596		4,186		1,410		—
Total	$	11,526	$	4,186	$	7,340	$	—

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



			Fair Value Measurements at Reporting Date
	January 28, 2012		Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
($000)	January 28, 2012		(Level 1)		(Level 2)		(Level 3)
Investments
Corporate securities	$	5,503	$	—	$	5,503	$	—
Mortgage-backed securities	757		—		757		—
Total investments	6,260		—		6,260		—
Restricted Investments
Corporate securities	1,451		—		1,451		—
U.S. government and agency securities	4,200		4,200		—		—
Total restricted investments	5,651		4,200		1,451		—
Total	$	11,911	$	4,200	$	7,711	$	—

Investments and restricted investments measured at fair value at October 29, 2011 are summarized below:



			Fair Value Measurements at Reporting Date
	October 29, 2011		Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
($000)	October 29, 2011		(Level 1)		(Level 2)		(Level 3)
Investments
Corporate securities	$	5,450	$	—	$	5,450	$	—
Mortgage-backed securities	832		—		832		—
Total investments	6,282		—		6,282		—
Restricted Investments
Corporate securities	1,452		—		1,452		—
U.S. government and agency securities	4,099		4,099		—		—
Total restricted investments	5,551		4,099		1,452		—
Total	$	11,833	$	4,099	$	7,734	$	—

The future maturities of investment and restricted investment securities at October 27, 2012 were:



	Investments				Restricted Investments
($000)	Cost basis		Estimated fair value		Cost basis		Estimated fair value
Maturing in one year or less	$	1,503	$	1,533	$	1,249	$	1,290
Maturing after one year through five years	2,821		3,040		253		268
Maturing after five years through ten years	1,099		1,357		3,610		4,038
	$	5,423	$	5,930	$	5,112	$	5,596

The underlying assets in the Company’s non-qualified deferred compensation program totaling $74.9 million, $67.5 million and $67.6 million as of October 27, 2012, January 28, 2012, and October 29, 2011, 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 $63.2 million, $57.8 million, and $57.7 million as of October 27, 2012, January 28, 2012, and October 29, 2011, respectively. The fair value measurement for funds without quoted market prices in active markets (Level 2) totaled $11.7 million, $9.7 million, and $9.9 million as of October 27, 2012, January 28, 2012, and October 29, 2011, 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.