Ross 2009 Annual Report Download - page 45

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— 43 —
Note B: Investments
The amortized cost and fair value of the Company’s available-for-sale securities as of January 30, 2010 were:
Amortized Unrealized Unrealized Fair Short- Long-
($000) cost gains losses value term term
Auction-rate securities $ 1,050 $ — $ (158) $ 892 $ — $ 892
Corporate securities 9,704 567 (67) 10,204 1,073 9,131
U.S. Government and agency securities 5,247 30 (187) 5,090 — 5,090
Mortgage-backed securities 2,340 79 (3) 2,416 681 1,735
Total $ 18,341 $ 676 $ (415) $ 18,602 $ 1,754 $ 16,848
The amortized cost and fair value of the Company’s available-for-sale securities as of January 31, 2009 were:
Amortized Unrealized Unrealized Fair Short- Long-
($000) cost gains losses value term term
Auction-rate securities $ 1,100 $ — $ — $ 1,100 $ — $ 1,100
Asset-backed securities 984 5 (200) 789 389 400
Corporate securities 13,773 152 (685) 13,240 — 13,240
U.S. Government and agency securities 15,940 446 — 16,386 — 16,386
Mortgage-backed securities 8,189 119 (1,011) 7,297 409 6,888
Total $ 39,986 $ 722 $ (1,896) $ 38,812 $ 798 $ 38,014
At January 30, 2010, the Company had investments of approximately $18.3 million of which $5.0 million had gross unrealized
losses of $0.2 million that had been in a continuous unrealized loss position for more than twelve months. Of the remaining
$13.3 million, $3.0 million of investments had gross unrealized losses of $0.2 million which had been in a continuous unrealized
loss position for less than twelve months. These unrealized losses on investments were caused primarily by the decline in market
values of floating rate corporate and auction rate securities and the impact of interest yield fluctuations on long-term treasury
securities. The Company does not consider these investments to be other than temporarily impaired at January 30, 2010.
In applying the valuation principles to financial assets and liabilities, a three-tier fair value hierarchy was used to prioritize the
inputs used in the valuation methodologies as follows:
Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 — Include other inputs that are directly or indirectly observable in the marketplace.
Level 3 — Unobservable inputs which are supported by little or no market activity.
This fair value hierarchy also requires the Company to maximize the use of observable inputs and minimize the use of
unobservable inputs when measuring fair value. Asset-backed, corporate, U.S. Government and agency, and mortgage-
backed securities are classified within Level 1 or Level 2 because these securities are valued using quoted market prices or
alternative pricing sources and models utilizing market observable inputs. The Company’s investment in auction rate securities is
classified within Level 3 because these are valued using valuation techniques for which some of the inputs to these models are
unobservable in the market.