Investments

3 Months Ended

Apr. 28, 2012

Investments [Abstract]

INVESTMENTS

6. INVESTMENTS

Investments consisted of (in thousands):

				April 28, 2012		January 28, 2012
Marketable securities:
	Available-for-sale securities:
		Auction rate securities - student loan backed		$	22,289	$	84,650
		Auction rate securities - municipal authority bonds			15,613		14,858
			Total available-for-sale securities		37,902		99,508
Rabbi Trust assets: (1)
	Money market funds				22		23
	Trust-owned life insurance policies (at cash surrender value)				85,958		85,126
			Total Rabbi Trust assets		85,980		85,149
			Total Investments	$	123,882	$	184,657
(1) Rabbi Trust assets are included in Other Assets on the Consolidated Balance Sheets and are restricted as to their use.

At April 28, 2012, the Company's investment grade auction rate securities (“ARS”)consisted of insured student loan backed securities and municipal authority bonds, with maturities ranging from 22 to 29 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 April 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		$	25,200	$	(2,911)	$	22,289
	Auction rate securities - municipal authority bonds			19,975		(4,362)		15,613
		Total available-for-sale securities	$	45,175	$	(7,273)	$	37,902

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 intends 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 April 28, 2012 and April 30, 2011, respectively, recorded aspart of Interest Expense, Net on the Consolidated Statements of Operations and Comprehensive (Loss) Income.