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NOTE 6 - Fair Value Measurements
 3 Months Ended
May 05, 2019
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]

6.

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;

 

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Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

 

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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 May 5, 2019 and February 3, 2019, 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.


On January 30, 2019, our Board of Directors voted to terminate the Pension Plan. Pension Plan termination is an eighteen to twenty-four-month process, that involves seeking certain approvals from both the IRS and Pension Benefit Guaranty Corporation (“PBGC”). As of February 3, 2019, current Pension Plan assets are invested in bond funds and are measured at fair value using Level 1 inputs, which are quoted prices in active markets. 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 10. Employee Benefit Plans for additional information about the Plan.


Our assets measured at fair value on a recurring basis at May 5, 2019 and February 3, 2019, were as follows:


   

Fair value at May 5, 2019

    

Fair value at February 3, 2019

  

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

   $ -     $ 24,533     $ -     $ 24,533     $ -     $ 23,816     $ -     $ 23,816  

Pension Plan assets*

     10,992       -       -       10,992       10,992       -       -       10,992  

* as of February 3, 2019 for Pension Plan assets.