Investments

9 Months Ended

Oct. 29, 2011

Investments [Abstract]

INVESTMENTS

6. INVESTMENTS

Investments consisted of (in thousands):

				October 29, 2011		January 29, 2011
Marketable securities - Non-Current:
	Available-for-sale securities:
		Auction rate securities - student loan backed		$	84,897	$	85,732
		Auction rate securities - municipal authority bonds			15,437		14,802
			Total available-for-sale securities		100,334		100,534
Rabbi Trust assets: (1)
	Money market funds				774		343
	Municipal notes and bonds				11,572		11,870
	Trust-owned life insurance policies (at cash surrender value)				72,472		70,288
			Total Rabbi Trust assets		84,818		82,501
			Total Investments	$	185,152	$	183,035
(1) Rabbi Trust assets are included in Other Assets on the Consolidated Balance Sheets and are restricted as to their use.

At October 29, 2011, the Company's investment grade auction rate securities (“ARS”) consisted of insured student loan backed securities and municipal authority bonds, with maturities ranging from 17 to 32 years. Each investment in student loans is insured by (1) the U.S. government under the Federal Family Education Loan Program, (2) a private insurer or (3) a combination of both. The percentage of insurance coverage of the outstanding principal and interest of the ARS varies by security.

The par and carrying values, and related cumulative temporary impairment charges for the Company'savailable-for-sale marketable securities as of October 29, 2011 were as follows:

					Temporary			Carrying
(in thousands)			Par Value		Impairment			Value
Available-for-sale securities:
	Auction rate securities - student loan backed		$	93,925	$	(9,028)	$	84,897
	Auction rate securities - municipal authority bonds			19,975		(4,538)		15,437
		Total available-for-sale securities	$	113,900	$	(13,566)	$	100,334

See Note 7, “Fair Value,” for further discussion on the valuation of the ARS.

An impairment is considered to be other-than-temporary if an entity (i) intends to sell the security, (ii) more likely than not will be required to sell the security before recovering its amortized cost basis, or (iii) does not expect to recover the security's entire amortized cost basis, even if there is no intent to sell the security. The Company has not incurred any credit-related losses on available-for-sale ARS and, furthermore, the issuers continued to perform under their respective obligations, including making scheduled interest payments, and the Company expects that this will continue going forward.

The irrevocable rabbi trust (the “Rabbi Trust”) is intended to be used as a source of funds to match respective funding obligations to participants in the Abercrombie & Fitch Co. Nonqualified Savings and Supplemental Retirement Plan I, the Abercrombie & Fitch Co. Nonqualified Savings and Supplemental Retirement Plan II and the Chief Executive Officer Supplemental Executive Retirement Plan. The Rabbi Trust assets are consolidated and recorded at fair value, with the exception of the trust-owned life insurance policies which are recorded at cash surrender value. The Rabbi Trust assets are included in Other Assets on the Consolidated Balance Sheets and are restricted as to their use as noted above. Net unrealized gains and losses related to the municipal notes and bonds held in the Rabbi Trust were not material for the thirteen and thirty-nine week periods ended October 29, 2011 and October 30, 2010. The change in cash surrender value of the trust-owned life insurance policies held in the Rabbi Trust resulted in a realized gain of $0.7 million for both the thirteen weeks ended October 29, 2011 and October 30, 2010and realized gains of $2.2 million and $1.8 million for the thirty-nine weeks ended October 29, 2011 and October 30, 2010, respectively, recorded aspart of Interest Expense, Net on the Consolidated Statements of Operations and Comprehensive Income.