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Fair Value Measurements
3 Months Ended
Apr. 29, 2023
Fair Value Measurements [Abstract]  
Fair Value Measurements
NOTE 7
 
– FAIR VALUE MEASUREMENTS:
The following
 
tables
 
set forth
 
information regarding
 
the
 
Company’s financial
 
assets
 
and
 
liabilities that
 
are
measured at fair value (in thousands)
 
as of April 29, 2023 and January
 
28, 2023:
Quoted
Prices in
Active
Significant
Markets for
Other
Significant
Identical
Observable
Unobservable
April 29, 2023
Assets
Inputs
Inputs
Description
Level 1
Level 2
Level 3
Assets:
 
State/Municipal Bonds
$
22,187
$
-
$
22,187
$
-
 
Corporate Bonds
40,057
-
40,057
-
 
U.S. Treasury/Agencies Notes and Bonds
16,541
-
16,541
-
 
Cash Surrender Value of Life Insurance
9,281
-
-
9,281
 
Asset-backed Securities (ABS)
7,925
-
7,925
-
 
Corporate Equities
801
801
-
-
 
Commercial Paper
1,039
-
1,039
-
Total Assets
$
97,831
$
801
$
87,749
$
9,281
Liabilities:
 
Deferred Compensation
$
(8,731)
$
-
$
-
$
(8,731)
Total Liabilities
$
(8,731)
$
-
$
-
$
(8,731)
Quoted
Prices in
Active
Significant
Markets for
Other
Significant
Identical
Observable
Unobservable
January 28,
2023
Assets
Inputs
Inputs
Description
Level 1
Level 2
Level 3
Assets:
 
State/Municipal Bonds
$
23,102
$
-
$
23,102
$
-
 
Corporate Bonds
47,901
-
47,901
-
 
U.S. Treasury/Agencies Notes and Bonds
27,250
-
27,250
-
 
Cash Surrender Value of Life Insurance
9,274
-
-
9,274
 
Asset-backed Securities (ABS)
9,373
-
9,373
-
 
Corporate Equities
923
923
-
-
 
Commercial Paper
1,026
-
1,026
-
Total Assets
$
118,849
$
923
$
108,652
$
9,274
Liabilities:
 
Deferred Compensation
$
(8,903)
$
-
$
-
$
(8,903)
Total Liabilities
$
(8,903)
$
-
$
-
$
(8,903)
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
 
A
 
or better
 
at
 
April 29,
2023
 
and
 
January
 
28,
 
2023.
 
The
 
state,
 
municipal
 
and
 
corporate
 
bonds
 
and
 
asset-backed
 
securities
 
have
contractual maturities
 
which range
 
from
two days
 
to
3.6
 
years. The
 
U.S. Treasury
 
Notes and
 
Certificates of
Deposit have contractual maturities
 
which range from
one day
 
to
2.8
 
years. These securities are
 
classified as
available-for-sale
 
and
 
are
 
recorded
 
as
 
Short-term
 
investments,
 
Restricted
 
cash
 
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.
 
The
 
asset-backed
securities
 
are
 
bonds
 
comprised
 
of
 
auto
 
loans
 
and
 
bank
 
credit
 
cards
 
that
 
carry
 
AAA
 
ratings.
 
The
 
auto
 
loan
asset-backed securities are
 
backed by
 
static pools
 
of auto loans
 
that were
 
originated and
 
serviced by
 
captive
auto finance units,
 
banks or
 
finance companies.
 
The bank
 
credit card
 
asset-backed securities
 
are backed
 
by
revolving
 
pools
 
of
 
credit
 
card
 
receivables
 
generated
 
by
 
account
 
holders
 
of
 
cards
 
from
 
American
 
Express,
Citibank, JPMorgan Chase, Capital One, and
 
Discover.
Additionally,
 
at
 
April
 
29,
 
2023,
 
the
 
Company
 
had
 
$
0.8
 
million
 
of
 
corporate
 
equities
 
and
 
deferred
compensation plan assets
 
of $
9.3
 
million.
 
At January 28,
 
2023, the Company
 
had $
0.9
 
million of corporate
equities and deferred compensation
 
plan assets of $
9.3
 
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.
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 Level 3
 
of the
valuation
 
hierarchy.
 
The
 
Level
 
3
 
liability
 
associated
 
with
 
the
 
life
 
insurance
 
policies
 
represents
 
a
 
deferred
compensation obligation,
 
the value
 
of which
 
is tracked
 
via underlying
 
insurance funds’
 
net asset
 
values, as
recorded
 
in
 
Other
 
noncurrent
 
liabilities
 
in
 
the
 
Condensed
 
Consolidated
 
Balance
 
Sheet.
 
These
 
funds
 
are
designed to mirror mutual funds and money
 
market funds that are observable and
 
actively traded.
The
 
following
 
tables
 
summarize
 
the
 
change
 
in
 
fair
 
value
 
of
 
the
 
Company’s
 
financial
 
assets
 
and
 
liabilities
measured using Level 3 inputs as of April
 
29, 2023 and January 28, 2023
 
(dollars in thousands):
Fair Value
Measurements Using
Significant Unobservable
Asset Inputs (Level 3)
Cash Surrender Value
Beginning Balance at January 28, 2023
$
9,274
Redemptions
-
Additions
-
Total gains or (losses)
 
Included in interest and other income (or changes in net assets)
7
 
Included in other comprehensive income
-
Ending Balance at April 29, 2023
$
9,281
Fair Value
Measurements Using
Significant Unobservable
Liability Inputs (Level 3)
Deferred Compensation
Beginning Balance at January 28, 2023
$
(8,903)
 
Redemptions
292
 
Additions
(82)
 
Total (gains) or losses
 
Included in interest and other income (or changes in net assets)
(38)
 
Included in other comprehensive income
-
Ending Balance at April 29, 2023
$
(8,731)
Fair Value
Measurements Using
Significant Unobservable
Asset Inputs (Level 3)
Cash Surrender Value
Beginning Balance at January 29, 2022
$
11,472
Redemptions
(1,718)
Additions
-
 
Total gains or (losses)
 
Included in interest and other income (or changes in net assets)
(480)
 
Included in other comprehensive income
-
Ending Balance at January 28, 2023
$
9,274
Fair Value
Measurements Using
Significant Unobservable
Liability Inputs (Level 3)
Deferred Compensation
Beginning Balance at January 29, 2022
$
(10,020)
 
Redemptions
1,142
 
Additions
(379)
 
Total (gains) or losses
 
Included in interest and other income (or changes in net assets)
354
 
Included in other comprehensive income
-
Ending Balance at January 28, 2023
$
(8,903)