Fair Value

9 Months Ended

Oct. 29, 2011

Fair Value [Abstract]

FAIR VALUE

7. FAIR VALUE

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are prioritized based on a three-level hierarchy. The three levels of inputs to measure fair value are as follows:

• Level 1 – inputs are unadjusted quoted prices for identical assets or liabilities that are available in active markets.
• Level 2 – inputs are other than quoted market prices included within Level 1 that are observable for assets or liabilities, directly or indirectly.
• Level 3 – inputs to the valuation methodology are unobservable.

The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. The three levels of the hierarchy and the distribution of the Company's assets and liabilities, measured at fair value, within it were as follows:

		Assets and Liabilities at Fair Value as of October 29, 2011
		(in thousands)
			Level 1		Level 2		Level 3		Total
ASSETS:
	Money market funds(1)	$	171,513	$	-	$	-	$	171,513
	ARS - available-for-sale - student loan backed		-		-		84,897		84,897
	ARS - available-for-sale - municipal authority bonds		-		-		15,437		15,437
	Municipal notes and bonds held in the Rabbi Trust		11,572		-		-		11,572
	Derivative financial instruments		-		1,457		-		1,457
Total assets measured at fair value		$	183,085	$	1,457	$	100,334	$	284,876
LIABILITIES:
	Derivative financial instruments		-		922		-		922
Total liabilities measured at fair value		$	-	$	922	$	-	$	922
(1)	Includes $170.7 million of money market funds included in Cash and Equivalents and $0.8 million of money market funds held in the Rabbi Trust included in Other Assets on the Consolidated Balance Sheet.

The level 2 liabilities consist of derivative financial instruments, primarily forward foreign exchange contracts. The fair value of forward foreign exchange contracts is determined by using quoted market prices of the same or similar instruments, adjusted for counterparty risk.

The level 3 assets include investments in insured student loan backed ARS and insured municipal authority bond ARS which are available-for-sale.

The Company measures the fair value of its ARS primarily using a discounted cash flow model as well as a comparison to similar securities in the market. Certain significant inputs into the model are unobservable in the market including the periodic coupon rate, market rate of return and expected term.

As of October 29, 2011, approximately 47% of the Company's ARS were “AAA” rated, approximately 20% were “AA” rated, and approximately 33% were “A-” rated, in each case as rated by one or more of the major credit rating agencies.

The table below includes a roll-forward of the Company's level 3 assets and liabilities from January 29, 2011 to October 29, 2011. When a determination is made to classify an asset or liability within level 3, the determination is based upon the lack of significance of the observable parameters to the overall fair value measurement. However, the fair value determination for level 3 financial assets and liabilities may include observable components.

(in thousands)		Available-for-sale ARS - Student Loans		Available-for-sale ARS - Muni Bonds		Total
Fair value, January 29, 2011	$	85,732	$	14,802	$	100,534
Redemptions		(1,700)				(1,700)
Gains and (losses), net:
Reported in Other Comprehensive Income		865		635		1,500
Fair value, October 29, 2011	$	84,897	$	15,437	$	100,334