Ross 2014 Annual Report Download - page 48

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Note B: Investments and Restricted Investments
The amortized cost and fair value of the Company’s available-for-sale securities as of January 31, 2015 were:
($000)
Amortized
cost
Unrealized
gains
Unrealized
losses
Fair
value
Short-
term
Long
term
-
Investments
Corporate securities $ 3,298 $ 243 $ (5) $ 3,536 $ 500 $ 3,036
Mortgage-backed securities 69 5 — 74 — 74
Total investments 3,367 248 (5) 3,610 500 3,110
Restricted Investments
U.S. government and agency securities 3,563 265 — 3,828 — 3,828
Total restricted investments 3,563 265 — 3,828 — 3,828
Total $ 6,930 $ 513 $ (5) $ 7,4 3 8 $ 500 $ 6,938
The amortized cost and fair value of the Company’s available-for-sale securities as of February 1, 2014 were:
($000)
Amortized
cost
Unrealized
gains
Unrealized
losses
Fair
value
Short-
term
Long
term
-
Investments
Corporate securities $ 3,298 $ 325 $ (4) $ 3,619 $ — $ 3,619
U.S. government and agency securities 12,005 1 — 12,006 12,006 —
Mortgage-backed securities 86 5 — 91 — 91
Total investments 15,389 331 (4) 15,716 12,006 3,710
Restricted Investments
Corporate securities 110 5 — 115 115 —
U.S. government and agency securities 3,728 266 — 3,994 145 3,849
Total restricted investments 3,838 271 — 4,109 260 3,849
Total $ 19,227 $ 602 $ (4) $ 19,825 $ 12,266 $ 7,559
The change in fair value of investment securities for fiscal years 2014, 2013, and 2012 was a decrease of $0.1 million, $0.3
million, and $0.1 million, respectively.
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, defined as observable inputs such as quoted prices in active markets;
Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level
3, defined 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 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.
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