Fair Value

6 Months Ended

Jul. 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 July 28, 2012
		(in thousands)
			Level 1		Level 2		Level 3		Total
ASSETS:
	ARS - available-for-sale - student loan backed	$	-	$	-	$	4,787	$	4,787
	ARS - available-for-sale - municipal authority bonds		-		-		15,323		15,323
	Derivative financial instruments		-		12,177		-		12,177
Total assets measured at fair value		$	-	$	12,177	$	20,110	$	32,287
LIABILITIES:
	Derivative financial instruments		-		154		-		154
Total liabilities measured at fair value		$	-	$	154	$	-	$	154
		Assets and Liabilities at Fair Value as of January 28, 2012
		(in thousands)
			Level 1		Level 2		Level 3		Total
ASSETS:
	Money market funds	$	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

The level 2 assets and liabilities consist of derivative financial instruments, primarily forward foreign currency exchange contracts. The fair value of forward foreign currency 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 for Level 3 assets are unobservable in the market. The table below provides quantitative information on the unobservable inputs discussed above:

Quantitative information about Level 3 fair value measurements (in thousands)
		Fair Value at July 28, 2012	Valuation Technique	Unobservable Inputs	Range (weighted average)
Student loan				Periodic coupon rate	0.50% - 3.27%
ARS	$	4,787	Discounted cash flow	Market rate of return	0.25% - 2.05%
				Expected term	19.3
Muncipal authority				Periodic coupon rate	0.32% - 4.33%
ARS	$	15,323	Discounted cash flow	Market rate of return	0.03% - 3.83%
				Expected term	21.8 - 27.3

Disclosures of Fair Value of Other Assets and Liabilities:

The Company's borrowings under its Amended and Restated Credit Agreementare carried at historical cost in the accompanyingConsolidated Balance Sheet. For disclosure purposes, the Company estimates the fair value of borrowings under the Amended and Restated Credit Agreementusingdiscounted cash flow analysis based on market rates obtained from independent third parties for similar types of debt. The inputs usedto value the borrowings under the Amended and Restated Credit Agreement are considered to be Level 2 instruments. The carryingamount of borrowings under the Amended and Restated Credit Agreementas of July 28, 2012 was $75.0 million. The fair value of borrowings under the Amended and Restated Credit Agreementas of July 28, 2012 was approximately $75.0million. There were no borrowings under the Amended and Restated Credit Agreementat January 28, 2012. See Note 12, “Borrowings”, for further discussion on the Amended and Restated Credit Agreement.

The table below includes a roll-forward of the Company's level 3 assets and liabilities from January 28, 2012 to July 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 28, 2012	$	84,650	$	14,858	$	99,508
Redemptions / Settlements		(80,693)		-		(80,693)
Gains and (losses), net:
Reported in Net Income		830		465		1,295
Fair value, July 28, 2012	$	4,787	$	15,323	$	20,110