Ross 2010 Annual Report Download - page 43

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41
Note B: Investments
The amortized cost and fair value of the Company’s available-for-sale securities as of January 29, 2011 were:
($000)
Amortized
cost
Unrealized
gains
Unrealized
losses
Fair
value
Short-
term
Long-
term
Corporate securities $ 7,465 $ 634 $ (37) $ 8,062 $ 300 $ 7,76 2
U.S. government and agency securities 7,959 77 (5) 8,031 2,366 5,665
Mortgage-backed securities 1,111 82 — 1,193 538 655
Total $ 16,535 $ 793 $ (42) $ 17,286 $ 3,204 $ 14,082
The amortized cost and fair value of the Company’s available-for-sale securities as of January 30, 2010 were:
($000)
Amortized
cost
Unrealized
gains
Unrealized
losses
Fair
value
Short-
term
Long-
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
Accounting standards pertaining to fair value measurements establish a three-tier fair value hierarchy, which prioritizes the
inputs used in measuring fair value. These tiers include: Level 1, defi ned as observable inputs such as quoted prices in active
markets; Level 2, defi ned as inputs other than quoted prices in active markets that are either directly or indirectly observable; and
Level 3, defi ned as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own
assumptions.
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. Corporate, U.S. government and agency, and mortgage-backed securities are
classifi ed 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.
Assets measured at fair value at January 29, 2011 are summarized below:
Fair Value Measurements at Reporting Date
Quoted Prices Signifi cant
in Active Markets Other Signifi cant
for Identical Observable Unobservable
Assets Inputs Inputs
($000) January 29, 2011 (Level 1) (Level 2) (Level 3)
Corporate securities $ 8,062 $ — $ 8,062 $ —
U.S. government and agency securities 8,031 8,031 — —
Mortgage-backed securities 1,193 — 1,193 —
Total assets measured at fair value $ 17,286 $ 8,031 $ 9,255 $ —