Investments

12 Months Ended

Jan. 28, 2012

Investments [Abstract]

INVESTMENTS

6. INVESTMENTS

Investments consisted of (in thousands):

				January 28, 2012		January 29, 2011
Marketable securities:
	Available-for-sale securities:
		Auction rate securities - student loan backed		$	84,650	$	85,732
		Auction rate securities - municipal authority bonds			14,858		14,802
			Total available-for-sale securities		99,508		100,534
Rabbi Trust assets: (1)
	Money market funds				23		343
	Municipal notes and bonds				-		11,870
	Trust-owned life insurance policies (at cash surrender value)				85,126		70,288
			Total Rabbi Trust assets		85,149		82,501
			Total Investments	$	184,657	$	183,035
(1) Rabbi Trust assets are included in Other Assets on the Consolidated Balance Sheets and are restricted as to their use.

At January 28, 2012, the Company's investment grade ARSconsisted of insured student loan backed securities and municipal authority bonds, with maturities ranging from 16 to 31 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 other-than-temporary impairment charges for the Company'savailable-for-sale marketable securities as of January 28, 2012 were as follows:

					Other-than-
					Temporary			Carrying
(in thousands)			Par Value		Impairment			Value
Available-for-sale securities:
	Auction rate securities - student loan backed		$	92,975	$	(8,325)	$	84,650
	Auction rate securities - municipal authority bonds			19,975		(5,117)		14,858
		Total available-for-sale securities	$	112,950	$	(13,442)	$	99,508

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. During the fifty-two weeks ended January 28, 2012, the Company changed its intent regarding the sale of its ARS, resulting in recognition ofan other-than-temporary impairment of $13.4 million recorded in other expense.

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. During the fifty-two weeks ended January 28, 2012, the Company sold $11.6 million of municipal notes and bonds at an immaterial realized loss. The proceeds from the sale of the municipal notes and bonds, along with money market funds on hand, were used to purchase an additional $12.3 million in insurance policies. The change in cash surrender value of the trust-owned life insurance policies held in the Rabbi Trust resulted in realized gains of $2.5 million and $2.3 million for the fifty-two weeks ended January 28, 2012 and January 29, 2011, respectively, recorded aspart of Interest Expense, Net on the Consolidated Statements of Operations and Comprehensive Income.