INVESTMENTS

Investments consisted of (in thousands):



	October 27, 2012		January 28, 2012
Marketable securities:
Available-for-sale securities:
Auction rate securities—student loan backed ⁽²⁾	$	4,755	$	84,650
Auction rate securities—municipal authority bonds ⁽³⁾	15,148		14,858
Total available-for-sale securities	19,903		99,508
Rabbi Trust assets: ⁽¹⁾
Money market funds	23		23
Trust-owned life insurance policies (at cash surrender value)	87,648		85,126
Total Rabbi Trust assets	87,671		85,149
Total Investments	$	107,574	$	184,657


⁽¹⁾	Rabbi Trust assets are included in Other Assets on the Consolidated Balance Sheets and are restricted as to their use.

⁽²⁾ As of October 27, 2012 and January 28, 2012, student loan backed auction rate securities were included in current assets.

⁽³⁾As of October 27, 2012 and January 28, 2012, municipal authority bond auction rate securities were included in current assets and non-current marketable securities, respectively.

At October 27, 2012, the Company’s investment grade auction rate securities (“ARS”) consisted of one student loan backed security and two municipal authority bonds, with maturities ranging from 22 to 28 years.

The par and carrying values, and related cumulative other-than-temporary impairment charges for the Company’s available-for-sale marketable securities as of October 27, 2012 were as follows:



(in thousands)	Par Value		Other-than- Temporary Impairment			Carrying Value
Available-for-sale securities:
Auction rate securities—student loan backed	$	5,200	$	(445	)	$	4,755
Auction rate securities—municipal authority bonds	19,975		(4,827		)	15,148
Total available-for-sale securities	$	25,175	$	(5,272	)	$	19,903

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. As of October 27, 2012, the Company intended to sell the remaining ARS.

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 primarily consist of 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. The change in cash surrender value of the trust-owned life insurance policies held in the Rabbi Trust resulted in realized gains of $0.8 million and $0.7 million for the thirteen weeks ended October 27, 2012 and October 29, 2011, respectively, and realized gains of $2.5 million and $2.2 million for the thirty-nine weeks ended October 27, 2012 and October 29, 2011, respectively, recorded in Interest Expense, Net on the Consolidated Statements of Operations and Comprehensive Income.