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NOTE 11 - FAIR VALUE MEASUREMENTS
 12 Months Ended
Feb. 03, 2019
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]

NOTE 11 – 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 February 3, 2019 and January 28, 2018, 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 February 3, 2019, 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 bond funds. During the fiscal 2019 third quarter, we transferred $3 million to the Pension Plan to reduce the underfunded balance and engaged in a “de-risking” strategy by moving Plan assets into fixed income securities, in order to reduce the volatility of the Plan Assets. As of February 3, 2019, the funded status for this plan was $86,000 shown on the “Other assets” line of our condensed consolidated balance sheets. See Note 13. Employee Benefit Plans for additional information about the Plan.


Our assets measured at fair value on a recurring basis at February 3, 2019 and January 28, 2018, were as follows:


   

Fair value at February 3, 2019

    

Fair value at January 28, 2018

  

Description

  

Level 1

    

Level 2

    

Level 3

    

Total

    

Level 1

    

Level 2

    

Level 3

    

Total

  
                           

(In thousands)

                          

Assets measured at fair value

                                                                

Company-owned life insurance 

   $ -     $ 23,816     $ -     $ 23,816     $ -     $ 23,622     $ -     $ 23,622  

Pension plan assets

     10,992       -       -       10,992       8,757       -       -       8,757