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Fair Value Measurements - Notes to Financial Statements | 9 Months Ended | 12 Months Ended
--- | --- | ---
Nov. 01, 2014 | Nov. 02, 2013 | Feb. 01, 2014
Fair Value Measurements [Abstract] |  |  |
Fair Value Disclosures Text Block | NOTE 7 – FAIR VALUE MEASUREMENTS: The following table s set forth information regarding the Company's financial assets that are measured at fair value (in t housands) as of November 1, 2014, February 1, 2014 and November 2, 2013
|  |  |  |  | Quoted |  |  |  |  |  |
|  |  |  |  | Prices in |  |  |  |  |  |
|  |  |  |  | Active |  | Significant |  |  |
|  |  |  |  | Markets for |  | Other |  | Significant
|  |  |  |  | Identical |  | Observable |  | Unobservable
|  | November 1, 2014 |  | Assets |  | Inputs |  | Inputs
Description |  |  |  | Level 1 |  | Level 2 |  | Level 3
Assets: |  |  |  |  |  |  |  |  |  |  |  |
State/Municipal Bonds |  | $ | 149,893 |  | $ | - |  | $ | 149,893 |  | $ | -
Corporate Bonds |  |  | 8,384 |  |  | - |  |  | 8,384 |  |  | -
Auction Rate Securities (ARS) |  |  | 3,140 |  |  | - |  |  | - |  |  | 3,140
U.S. Treasury Notes |  |  | 3,754 |  |  | 3,754 |  |  | - |  |  | -
Cash Surrender Value of Life Insurance |  |  | 3,852 |  |  | - |  |  | - |  |  | 3,852
Privately Managed Funds |  |  | 308 |  |  | - |  |  | - |  |  | 308
Corporate Equities |  |  | 642 |  |  | 642 |  |  | - |  |  | -
Certificates of Deposit |  |  | 100 |  |  | 100 |  |  | - |  |  | -
Total Assets |  | $ | 170,073 |  | $ | 4,496 |  | $ | 158,277 |  | $ | 7,300
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Deferred Compensation |  |  | (4,201) |  |  | - |  |  | - |  |  | (4,201)
Total Liabilities |  | $ | (4,201) |  | $ | - |  | $ | - |  | $ | (4,201)
The Company's investment portfolio was primarily invested in corporate bonds and tax-exempt and taxable governmental debt securities held in managed accounts with underlying ratings of Aa3 or better at November 1, 2014, February 1, 2014 and November 2, 2013. The state, municipal and corporate bonds have contractual maturities which range from one month to 12.1 years. The U.S. Treasury Notes and Certificates of Deposit have contractual maturities which range from four months to 2.4 years. These securities are classified as available-for-sale and are recorded as Short-term investments, Restricted cash and investments and Other assets on the accompanying Condensed Consolidated Balance Sheets. These assets are carried at fair value with unrealized gains and losses reported net of taxes in Accumulated other comprehensive income. Additionally, at November 1, 2014, the Company had $0.3 million of privately managed funds, $0.6 mi llion of corporate equities, a single auction rate security (“ARS”) of $3.1 million which continues to fail its auction, and deferred compensation plan assets of $3.9 million. At February 1, 2014, the Company had $0.4 million of privately managed funds, $0.6 million of corporate equities, a single ARS of $3.1 million and deferred compensation plan assets of $3.0 million. At November 2, 2013, the Company had $0.4 million of privately managed funds, $0.6 million of corporate equities, a single ARS of $3.5 million and deferred compensation plan assets of $2.9 million. All of these assets are recorded within Other assets in the Condensed Consolidated Balance Sheets. Level 1 category securities are measured at fair value using quoted active market prices. Level 2 investment securities include corporate and municipal bonds for which quoted prices may not be available on active exchanges for identical instruments. Their fair value is principally based on market values determined by management with assistance of a third party pricing service. Since quoted prices in active markets for identical assets are not available, these prices are determined by the pricing service using observable market information such as quotes from less active markets and/or quoted prices of securities with similar characteristics, among other factors. The ARS of $3,450,000 par value was issued by the Wake County, NC Industrial Facilities & Pollution Control Financing Authority. The security is an obligation of Duke Energy Progress and has a credit rating of Aa3. The Company has collected all interest payments when due since the security was purchased and continues to expect that it will receive all interest due on the security in full and timely in the future. The Company's failed ARS is recorded at $3,139,500, which approximates fair value using Level 3 inputs. Because there is no active market for this particular ARS, its fair value was analyzed through the use of a discounted cash flow analysis and observations from previous trades. The terms used in the analysis were based on management's estimate of the timing of future liquidity, which assumes that the security will be called or refinanced by the issuer or settled with a broker dealer prior to maturity. The discount rates used in the discounted cash flow analysis were based on market rates for similar liquid tax exempt securities with comparable ratings and maturities. Due to the uncertainty surrounding the timing of future liquidity, the Company also considered a liquidity/risk value reduction. In estimating the fair value of this ARS, the Company also considered recent trading activity, the financial condition and near-term prospects of the issuer, the probability that the Company will be unable to collect all amounts due according to the contractual terms of the security and whether the security has been downgraded by a rating agency. The Company's valuation is sensitive to market conditions and management's judgment and can change significantly based on the assumptions used. The Company's privately managed funds consist of two types of funds. The privately managed funds cannot be redeemed at net asset value at a specific date without advance notice. As a result, the Company has classified the investments as Level 3. Deferred compensation plan assets consist of life insurance policies. These life insurance policies are valued based on the cash surrender value of the insurance contract, which is determined based on such factors as the fair value of the underlying assets and discounted cash flow and are therefore classified within L evel 3 of the valuation hierarchy. The L evel 3 liability associated with the life insurance policies represents a deferred compensation obligation, the value of which is tracked via underlying insurance funds. These funds are designed to mirror existing mutual funds and money market funds that are observable and actively traded. Cash surrender values are provided by third parties and reviewed for reasonableness by the Company. The following table s summarize the change in fair value of the Company's financial assets measured using Level 3 inputs as of November 1, 2014 and November 2, 2013 (in thousands):
|  | Fair Value Measurements Using Significant
|  | Unobservable Asset Inputs (Level 3)
| Available-For-Sale |  |  |  |  |  | Cash |  |  |
| Debt Securities |  | Other Investments |  |  | Surrender |  |  |
| ARS |  | Private Equity |  |  | Value |  | Total
Beginning Balance at February 1, 2014 | $ | 3,140 |  | $ | 392 |  | $ | 2,957 |  | $ | 6,489
Redemptions |  | - |  |  | (70) |  |  | - |  |  | (70)
Additions |  | - |  |  |  |  |  | 753 |  |  | 753
Total gains or (losses) |  |  |  |  |  |  |  |  |  |  |
Included in interest and other income (or changes in net assets) |  | - |  |  | (1) |  |  | 142 |  |  | 141
Included in other comprehensive income |  | - |  |  | (13) |  |  | - |  |  | (13)
Ending Balance at November 1, 2014 | $ | 3,140 |  | $ | 308 |  | $ | 3,852 |  | $ | 7,300
| Fair Value Measurements Using Significant |  |  |  |  |  |
| Unobservable Liability Inputs (Level 3) |  |  |  |  |  |
| Deferred |  |  |  |  |  |  |  |  |
| Compensation |  |  | Total |  |  |  |  |  |
Beginning Balance at February 1, 2014 | $ | (3,298) |  | $ | (3,298) |  |  |  |  |  |
Additions |  | (663) |  |  | (663) |  |  |  |  |  |
Total (gains) or losses |  |  |  |  |  |  |  |  |  |  |
Included in interest and other income (or changes in net assets) |  | (240) |  |  | (240) |  |  |  |  |  |
Included in other comprehensive income |  | - |  |  | - |  |  |  |  |  |
Ending Balance at November 1, 2014 | $ | (4,201) |  | $ | (4,201) |  |  |  |  |  |
| Fair Value Measurements Using Significant
| Unobservable Asset Inputs (Level 3)
| Available-For-Sale |  |  |  |  |  | Cash |  |  |
| Debt Securities |  | Other Investments |  |  | Surrender |  |  |
| ARS |  | Private Equity |  |  | Value |  |  | Total
Beginning Balance at February 2, 2013 | $ | 3,450 |  | $ | 561 |  | $ | 2,051 |  | $ | 6,062
Redemptions |  | - |  |  | (174) |  |  | - |  |  | (174)
Additions |  |  |  |  |  |  |  | 705 |  |  | 705
Total gains or (losses) |  |  |  |  |  |  |  |  |  |  |
Included in interest and other income (or changes in net assets) |  | - |  |  | 7 |  |  | 141 |  |  | 148
Included in other comprehensive income |  | - |  |  | (1) |  |  |  |  |  | (1)
Ending Balance at November 2, 2013 | $ | 3,450 |  | $ | 393 |  | $ | 2,897 |  | $ | 6,740
| Fair Value Measurements Using Significant |  |  |  |  |  |
| Unobservable Liability Inputs (Level 3) |  |  |  |  |  |
| Deferred |  |  |  |  |  |  |  |  |
| Compensation |  |  | Total |  |  |  |  |  |
Beginning Balance at February 2, 2013 | $ | (2,178) |  | $ | (2,178) |  |  |  |  |  |
Additions |  | (637) |  |  | (637) |  |  |  |  |  |
Total (gains) or losses |  |  |  |  |  |  |  |  |  |  |
Included in interest and other income (or changes in net assets) |  | (228) |  |  | (228) |  |  |  |  |  |
Included in other comprehensive income |  | - |  |  | - |  |  |  |  |  |
Ending Balance at November 2, 2013 | $ | (3,043) |  | $ | (3,043) |  |  |  |  |  |
Quantitative information regarding the significant unobservable inputs related to the ARS as of November 1, 2014, February 1, 2014 and November 2, 2013 were as follows:
As of November 1, 2014 |
Fair Value (in thousands) |  | Valuation Technique |  | Unobservable Inputs |
$3,140 |  | Net present value |  | Total Term |  | 7.9 Years |
|  | of cash flows |  | Yield |  | 0.07% |
|  |  |  | Comparative bond discount rate |  | 0.12% |
As of February 1, 2014 |
Fair Value (in thousands) |  | Valuation Technique |  | Unobservable Inputs |
$3,140 |  | Net present value |  | Total Term |  | 8.7 Years |
|  | of cash flows |  | Yield |  | 0.07% |
|  |  |  | Comparative bond discount rate |  | 0.14% |
As of November 2, 2013 |
Fair Value (in thousands) |  | Valuation Technique |  | Unobservable Inputs |
$3,450 |  | Net present value |  | Total Term |  | 8.9 Years |
|  | of cash flows |  | Yield |  | 0.11% |
|  |  |  | Comparative bond discount rate |  | 0.11% |
Significant increases or decreases in certain of the inputs could result in a lower fair value |
measurement. For example, a decrease in the yield, or an increase to the comparative |
bond discount rate, could result in a lower fair value. |
The Company's investment portfolio was primarily invested in corporate bonds and tax-exempt and taxable governmental debt securities held in managed accounts with underlying ratings of Aa3 or better at November 1, 2014, February 1, 2014 and November 2, 2013. The state, municipal and corporate bonds have contractual maturities which range from one month to 12.1 years. The U.S. Treasury Notes and Certificates of Deposit have contractual maturities which range from four months to 2.4 years. These securities are classified as available-for-sale and are recorded as Short-term investments, Restricted cash and investments and Other assets on the accompanying Condensed Consolidated Balance Sheets. These assets are carried at fair value with unrealized gains and losses reported net of taxes in Accumulated other comprehensive income. Additionally, at November 1, 2014, the Company had $0.3 million of privately managed funds, $0.6 mi llion of corporate equities, a single auction rate security (“ARS”) of $3.1 million which continues to fail its auction, and deferred compensation plan assets of $3.9 million. At February 1, 2014, the Company had $0.4 million of privately managed funds, $0.6 million of corporate equities, a single ARS of $3.1 million and deferred compensation plan assets of $3.0 million. At November 2, 2013, the Company had $0.4 million of privately managed funds, $0.6 million of corporate equities, a single ARS of $3.5 million and deferred compensation plan assets of $2.9 million. All of these assets are recorded within Other assets in the Condensed Consolidated Balance Sheets. Level 1 category securities are measured at fair value using quoted active market prices. Level 2 investment securities include corporate and municipal bonds for which quoted prices may not be available on active exchanges for identical instruments. Their fair value is principally based on market values determined by management with assistance of a third party pricing service. Since quoted prices in active markets for identical assets are not available, these prices are determined by the pricing service using observable market information such as quotes from less active markets and/or quoted prices of securities with similar characteristics, among other factors. The ARS of $3,450,000 par value was issued by the Wake County, NC Industrial Facilities & Pollution Control Financing Authority. The security is an obligation of Duke Energy Progress and has a credit rating of Aa3. The Company has collected all interest payments when due since the security was purchased and continues to expect that it will receive all interest due on the security in full and timely in the future. The Company's failed ARS is recorded at $3,139,500, which approximates fair value using Level 3 inputs. Because there is no active market for this particular ARS, its fair value was analyzed through the use of a discounted cash flow analysis and observations from previous trades. The terms used in the analysis were based on management's estimate of the timing of future liquidity, which assumes that the security will be called or refinanced by the issuer or settled with a broker dealer prior to maturity. The discount rates used in the discounted cash flow analysis were based on market rates for similar liquid tax exempt securities with comparable ratings and maturities. Due to the uncertainty surrounding the timing of future liquidity, the Company also considered a liquidity/risk value reduction. In estimating the fair value of this ARS, the Company also considered recent trading activity, the financial condition and near-term prospects of the issuer, the probability that the Company will be unable to collect all amounts due according to the contractual terms of the security and whether the security has been downgraded by a rating agency. The Company's valuation is sensitive to market conditions and management's judgment and can change significantly based on the assumptions used. The Company's privately managed funds consist of two types of funds. The privately managed funds cannot be redeemed at net asset value at a specific date without advance notice. As a result, the Company has classified the investments as Level 3. Deferred compensation plan assets consist of life insurance policies. These life insurance policies are valued based on the cash surrender value of the insurance contract, which is determined based on such factors as the fair value of the underlying assets and discounted cash flow and are therefore classified within L evel 3 of the valuation hierarchy. The L evel 3 liability associated with the life insurance policies represents a deferred compensation obligation, the value of which is tracked via underlying insurance funds. These funds are designed to mirror existing mutual funds and money market funds that are observable and actively traded. Cash surrender values are provided by third parties and reviewed for reasonableness by the Company. |
|  |  |  | Quoted |  |  |  |  |  |
|  |  |  | Prices in |  |  |  |  |  |
|  |  |  | Active |  | Significant |  |  |
|  |  |  | Markets for |  | Other |  | Significant
|  |  |  | Identical |  | Observable |  | Unobservable
|  | November 2, 2013 |  | Assets |  | Inputs |  | Inputs
Description |  |  | Level 1 |  | Level 2 |  | Level 3
Assets: |  |  |  |  |  |  |  |  |  |  |
State/Municipal Bonds | $ | 158,996 |  | $ | - |  | $ | 158,996 |  | $ | -
Corporate Bonds |  | 978 |  |  | - |  |  | 978 |  |  | -
Auction Rate Securities (ARS) |  | 3,450 |  |  | - |  |  | - |  |  | 3,450
U.S. Treasury Notes |  | 3,404 |  |  | 3,404 |  |  | - |  |  | -
Cash Surrender Value of Life Insurance |  | 2,897 |  |  | - |  |  | - |  |  | 2,897
Privately Managed Funds |  | 393 |  |  | - |  |  | - |  |  | 393
Corporate Equities |  | 606 |  |  | 606 |  |  | - |  |  | -
Certificates of Deposit |  | 100 |  |  | 100 |  |  | - |  |  | -
Total Assets | $ | 170,824 |  | $ | 4,110 |  | $ | 159,974 |  | $ | 6,740
Liabilities: |  |  |  |  |  |  |  |  |  |  |
Deferred Compensation |  | (3,043) |  |  | - |  |  | - |  |  | (3,043)
Total Liabilities | $ | (3,043) |  | $ | - |  | $ | - |  | $ | (3,043)
|  |  |  |  | Quoted |  |  |  |  |  |
|  |  |  |  | Prices in |  |  |  |  |  |
|  |  |  |  | Active |  | Significant |  |  |
|  |  |  |  | Markets for |  | Other |  | Significant
|  |  |  |  | Identical |  | Observable |  | Unobservable
|  |  | February 1, 2014 |  | Assets |  | Inputs |  | Inputs
Description |  |  |  | Level 1 |  | Level 2 |  | Level 3
Assets: |  |  |  |  |  |  |  |  |  |  |  |
State/Municipal Bonds |  | $ | 159,074 |  | $ | - |  | $ | 159,074 |  | $ | -
Corporate Bonds |  |  | 2,799 |  |  | - |  |  | 2,799 |  |  | -
Auction Rate Securities (ARS) |  |  | 3,140 |  |  | - |  |  | - |  |  | 3,140
U.S. Treasury Notes |  |  | 3,405 |  |  | 3,405 |  |  | - |  |  | -
Cash Surrender Value of Life Insurance |  |  | 2,957 |  |  | - |  |  | - |  |  | 2,957
Privately Managed Funds |  |  | 392 |  |  | - |  |  | - |  |  | 392
Corporate Equities |  |  | 585 |  |  | 585 |  |  | - |  |  | -
Certificates of Deposit |  |  | 100 |  |  | 100 |  |  | - |  |  | -
Total Assets |  | $ | 172,452 |  | $ | 4,090 |  | $ | 161,873 |  | $ | 6,489
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Deferred Compensation |  |  | (3,298) |  |  | - |  |  | - |  |  | (3,298)
Total Liabilities |  | $ | (3,298) |  | $ | - |  | $ | - |  | $ | (3,298)

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