Marketable Securities

12 Months Ended

Mar. 03, 2012

4 Marketable Securities

The Company has investments in municipal bonds of $19.6 million; $11.7 million is current and $7.9 million is non-current. The Company's wholly owned insurance subsidiary, Prism, holds $7.9 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 and 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 3, 2012 and February 26, 2011 are as follows:


			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
(In thousands)	Cost		Gains		Losses			Value
March 3, 2012
Municipal bonds	$	19,670	$	188	$	(258	)	$	19,600

Total investments	$	19,670	$	188	$	(258	)	$	19,600


			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
(In thousands)	Cost		Gains		Losses			Value
February 26, 2011
Variable rate demand notes	$	7,300	$	—	$	—		$	7,300
Municipal bonds		19,619		313		(360	)		19,572

Total investments	$	26,919	$	313	$	(360	)	$	26,872

The Company tests for other than temporary losses on a quarterly basis and has considered 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 3, 2012:


	Less Than 12 Months					Greater Than or Equal to 12 Months					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(In thousands)	Value		Losses			Value		Losses			Value		Losses
Municipal bonds	$	3,753	$	(5	)	$	996	$	(253	)	$	4,749	$	(258	)

Total investments	$	3,753	$	(5	)	$	996	$	(253	)	$	4,749	$	(258	)

The amortized cost and estimated fair values of investments at March 3, 2012 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.


	Amortized		Estimated
(In thousands)	Cost		Market Value
Due within one year	$	11,647	$	11,664
Due after one year through five years		2,153		2,206
Due after five years through 10 years		2,711		2,793
Due after 10 years through 15 years		1,592		1,603
Due beyond 15 years		1,567		1,334

Total	$	19,670	$	19,600

Gross realized gains of $0.8 million, $0.4 million and $0.3 million in fiscal 2012, 2011 and 2010, respectively, and gross realized losses of $0.1 million in each of fiscal 2011 and 2010 were recognized and are included in other income (expense), net in the accompanying consolidated results of operations. There were immaterial amounts of gross realized losses in fiscal 2012.

- Definition

Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets.

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