Short- and Long-Term Investments	6 Months Ended
Jul. 30, 2011
Short- and Long-Term Investments	NOTE 6. Short- and Long-Term Investments Our short-term investments consist of highly-rated interest-bearing municipal bonds that have maturities that are less than one year and are accounted for as available for sale and certificates of deposit that are guaranteed by the Federal Deposit Insurance Corporation, classified as held to maturity and have maturities that are less than one year. As of the end of the second quarter of fiscal 2011, short-term investments consisted of certificates of deposit of $4.1 million and municipal bonds of $11.4 million. As of the end of fiscal 2010, short-term investments consisted of certificates of deposit of $5.0 million and municipal bonds of $20.2 million. (Refer to “NOTE 9 – Fair Value Measurements” for further discussion on how we determined the fair value of our short-term investments). The associated unrealized losses and gains in the second quarter of fiscal 2011 and in the full year of fiscal 2010, respectively, were immaterial and have been recorded in accumulated other comprehensive loss, or OCL, reflected in the shareholders’ equity section of the consolidated balance sheet. As of the end of the second quarter of fiscal 2011, we held long-term investments in auction rate securities. As of the end of fiscal 2010, our long-term investments comprised of auction rate securities and highly-rated interest-bearing municipal bonds that have maturities that are more than one year and are accounted for as available for sale. As of the end of fiscal 2010, the fair value of our long-term municipal bonds was $0.5 million and the associated unrealized losses were immaterial and recorded in OCL reflected in the shareholders’ equity section of the consolidated balance sheet. Our auction rate securities are AAA/A3-rated debt instruments with maturities of 26 years. They are accounted for as available for sale and backed by pools of student loans guaranteed by the U.S. Department of Education. Their interest rates are reset through an auction process, most commonly at intervals of approximately 4 weeks. This same auction process is designed to provide a means by which these securities can be sold and prior to 2008 had provided a liquid market for them. There continues to be uncertainty in the global credit and capital markets, which has resulted in the failure of auctions representing the auction rate securities we hold as the amount of securities submitted for sale in those auctions exceed the amount of bids. While we have continued to earn and receive interest on our auction rate securities through the date of this report, we concluded that their estimated fair value no longer approximates par value. Due to the lack of availability of observable market quotes on our auction rate securities, the fair market value of these securities has been based on a valuation model using current assumptions. (Refer to “NOTE 9 – Fair Value Measurements” for further discussion on how we determined the fair value of our investment in auction rate securities). As of the end of the second quarter of fiscal 2011 and as of the end of fiscal 2010, the fair value of our auction rate securities was $1.8 million and $2.5 million, respectively. The $0.7 million decline in fair value from the beginning of the fiscal year represents redemptions totaling $0.8 million of certain auction rate securities at par, of which $0.7 million was redeemed during the second quarter of fiscal 2011. The redemptions were offset by a $0.1 million recovery in fair value of auction rate securities that were previously temporarily impaired. The fair value of our remaining auction rate securities as of the end of the second quarter of fiscal 2011 reflects a cumulative decline of $0.4 million from the par value. This cumulative $0.4 million decline ($0.3 million net of tax) is deemed temporary as we have the ability to hold these securities and we do not have the intent to sell them. Furthermore, it is not likely that we will be required to sell the securities before the recovery of their amortized cost basis. If uncertainties in the credit and capital markets continue, we may incur additional losses, some of which may be other-than-temporary, which could negatively affect our financial condition or results of operations. In addition, in the event that we decide to sell these securities and it becomes likely that we will be required to sell the securities before the recovery of their amortized cost basis, we may be required to recognize impairment charges against income. We have classified all auction rate securities as non-current assets on our consolidated balance sheet, as we do not expect them to successfully auction and recover their full or par value within the next 12 months. As of the end of the second quarter of fiscal 2011, we have recorded unrealized gains of $0.1 million ($0.1 million net of tax) for our auction rate securities in OCL reflected in the shareholders’ equity section of the consolidated balance sheets. As of the end of fiscal 2010, we recorded unrealized gains of $0.2 million ($0.1 million net of tax).

NOTE 6. Short- and Long-Term Investments

Our short-term investments consist of highly-rated interest-bearing municipal bonds that have maturities that are less than one year and are accounted for as available for sale and certificates of deposit that are guaranteed by the Federal Deposit Insurance Corporation, classified as held to maturity and have maturities that are less than one year. As of the end of the second quarter of fiscal 2011, short-term investments consisted of certificates of deposit of $4.1 million and municipal bonds of $11.4 million. As of the end of fiscal 2010, short-term investments consisted of certificates of deposit of $5.0 million and municipal bonds of $20.2 million. (Refer to “NOTE 9 – Fair Value Measurements” for further discussion on how we determined the fair value of our short-term investments). The associated unrealized losses and gains in the second quarter of fiscal 2011 and in the full year of fiscal 2010, respectively, were immaterial and have been recorded in accumulated other comprehensive loss, or OCL, reflected in the shareholders’ equity section of the consolidated balance sheet.

As of the end of the second quarter of fiscal 2011, we held long-term investments in auction rate securities. As of the end of fiscal 2010, our long-term investments comprised of auction rate securities and highly-rated interest-bearing municipal bonds that have maturities that are more than one year and are accounted for as available for sale. As of the end of fiscal 2010, the fair value of our long-term municipal bonds was $0.5 million and the associated unrealized losses were immaterial and recorded in OCL reflected in the shareholders’ equity section of the consolidated balance sheet.

Our auction rate securities are AAA/A3-rated debt instruments with maturities of 26 years. They are accounted for as available for sale and backed by pools of student loans guaranteed by the U.S. Department of Education. Their interest rates are reset through an auction process, most commonly at intervals of approximately 4 weeks. This same auction process is designed to provide a means by which these securities can be sold and prior to 2008 had provided a liquid market for them. There continues to be uncertainty in the global credit and capital markets, which has resulted in the failure of auctions representing the auction rate securities we hold as the amount of securities submitted for sale in those auctions exceed the amount of bids. While we have continued to earn and receive interest on our auction rate securities through the date of this report, we concluded that their estimated fair value no longer approximates par value. Due to the lack of availability of observable market quotes on our auction rate securities, the fair market value of these securities has been based on a valuation model using current assumptions. (Refer to “NOTE 9 – Fair Value Measurements” for further discussion on how we determined the fair value of our investment in auction rate securities).

As of the end of the second quarter of fiscal 2011 and as of the end of fiscal 2010, the fair value of our auction rate securities was $1.8 million and $2.5 million, respectively. The $0.7 million decline in fair value from the beginning of the fiscal year represents redemptions totaling $0.8 million of certain auction rate securities at par, of which $0.7 million was redeemed during the second quarter of fiscal 2011. The redemptions were offset by a $0.1 million recovery in fair value of auction rate securities that were previously temporarily impaired. The fair value of our remaining auction rate securities as of the end of the second quarter of fiscal 2011 reflects a cumulative decline of $0.4 million from the par value. This cumulative $0.4 million decline ($0.3 million net of tax) is deemed temporary as we have the ability to hold these securities and we do not have the intent to sell them. Furthermore, it is not likely that we will be required to sell the securities before the recovery of their amortized cost basis. If uncertainties in the credit and capital markets continue, we may incur additional losses, some of which may be other-than-temporary, which could negatively affect our financial condition or results of operations. In addition, in the event that we decide to sell these securities and it becomes likely that we will be required to sell the securities before the recovery of their amortized cost basis, we may be required to recognize impairment charges against income. We have classified all auction rate securities as non-current assets on our consolidated balance sheet, as we do not expect them to successfully auction and recover their full or par value within the next 12 months.

As of the end of the second quarter of fiscal 2011, we have recorded unrealized gains of $0.1 million ($0.1 million net of tax) for our auction rate securities in OCL reflected in the shareholders’ equity section of the consolidated balance sheets. As of the end of fiscal 2010, we recorded unrealized gains of $0.2 million ($0.1 million net of tax).