Fair Value

12 Months Ended

Jan. 28, 2012

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 January 28, 2012
		(in thousands)
			Level 1		Level 2		Level 3		Total
ASSETS:
	Money market funds(1)	$	209,041	$	-	$	-	$	209,041
	ARS - available-for-sale - student loan backed		-		-		84,650		84,650
	ARS - available-for-sale - municipal authority bonds		-		-		14,858		14,858
	Derivative financial instruments		-		10,770		-		10,770
Total assets measured at fair value		$	209,041	$	10,770	$	99,508	$	319,319
LIABILITIES:
	Derivative financial instruments		-		1,458		-		1,458
Total liabilities measured at fair value		$	-	$	1,458	$	-	$	1,458
(1)	Includes $209.0 million of money market funds included in Cash and Equivalents. Amounts held in the Rabbi trust were immaterial.

The level 2 assets and 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 available-for-saleinvestments in insured student loan backed ARS and insured municipal authority bond ARS.

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 January 28, 2012, approximately 46% of the Company's ARS were “AAA” rated, approximately 16% were “AA” rated, and approximately 38% 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 January 28, 2012. 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		(2,650)				(2,650)
Gains and (losses), net:
Reported in Net Income		(8,325)		(5,117)		(13,442)
Reported in Other Comprehensive Income		9,893		5,173		15,066
Fair value, January 28, 2012	$	84,650	$	14,858	$	99,508