XML 32 R17.htm IDEA: XBRL DOCUMENT v3.8.0.1
NOTE 9 - FAIR VALUE MEASUREMENTS
 12 Months Ended
Jan. 28, 2018
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]
NOTE 9 – FAIR VALUE MEASUREMENTS

Fair value is the price that would be received upon the sale of an asset or paid upon the transfer of a liability (an exit price) in an orderly transaction between market participants on the applicable measurement date. We use 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 for identical assets and liabilities;

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 for which little or no market data exists, therefore requiring an entity to develop its own assumptions.

As of January 28, 2018 and January 29, 2017, Company-owned life insurance was measured at fair value on a recurring basis based on Level 2 inputs. The fair value of the Company-owned life insurance is determined by inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Additionally, the fair value of the Company-owned life insurance is marked to market each reporting period and any change in fair value is reflected in income for that period.

As of January 28, 2018, the assets of the Home Meridian segment’s legacy Pension Plan (the “Plan”) were measured at fair value on a recurring basis based on Level 1 inputs. Pension plan assets, held in a trust account by the Plan’s trustee, primarily consist of a wide-range of mutual fund asset classes, including domestic and international equities, fixed income securities such as corporate bonds, mortgage-backed securities, real estate investments and U.S. Treasuries. As of January 31, 2018, the date of the latest actuarial valuation, Plan assets were netted against the Plan’s Projected Benefit Obligation (“PBO”) on that date to determine the Plan’s funded status. Since the PBO exceeded the market value of the Plan’s assets, the funded status is recorded in our consolidated balance sheets as a net liability. As of January 31, 2018, the net liability for this plan was $2.4 million shown on the “Pension Plan” line of our consolidated balance sheets.  The market value of pension plan assets shown below are as of January 31, 2018.  See Note 11. Employee Benefit Plans for additional information about the Plan.

Our assets measured at fair value on a recurring basis at January 28, 2018 and January 29, 2017, were as follows:

   
Fair value at January 28, 2018
    
Fair value at January 29, 2017
  
Description
  
Level 1
    
Level 2
    
Level 3
    
Total
    
Level 1
    
Level 2
    
Level 3
    
Total
  
     
Assets measured at fair value
                                                
Company-owned life insurance
  
$
-
    
$
23,622
    
$
-
    
$
23,622
    
$
-
    
$
22,366
    
$
-
    
$
22,366
  
Pension plan assets
    
8,757
      
-
      
-
      
8,757
      
13,881
      
-
      
-
      
13,881