Fair Value Disclosures

9 Months Ended

Nov. 02, 2013

Fair Value Disclosures [Abstract]

Fair Value Disclosures

Fair Value Disclosures

The estimated fair values of financial instruments which are presented herein have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of amounts the Company could realize in a current market exchange.

The fair value of the Company’s long-term debt and subordinated debentures is based on market prices or dealer quotes.

The fair value of the Company’s cash and cash equivalents, accounts receivable and other short-term borrowings approximates their carrying values at November 2, 2013 due to the short-term maturities of these instruments.  The fair value of the Company’s long-term debt at November 2, 2013 was approximately $680 million.  The carrying value of the Company’s long-term debt at November 2, 2013 was $615 million.  The fair value of the Company’s subordinated debentures at November 2, 2013 was approximately $202 million.  The carrying value of the Company’s subordinated debentures at November 2, 2013 was $200 million.

During the nine months ended November 2, 2013, the Company recognized an impairment charge of $5.4 million on certain cost method investments.  The Company evaluated all factors and determined that an other-than-temporary impairment charge was necessary.  These investments are recorded in other assets on the balance sheet.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The FASB’s accounting guidance utilizes a fair value hierarchy that prioritizes the inputs to the valuation techniques used to measure fair value into three broad levels:

• Level 1:  Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities

•Level 2:  Inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active

• Level 3:  Unobservable inputs that reflect the reporting entity’s own assumptions

			Basis of Fair Value Measurements
	Fair Value of Assets		Quoted Prices In Active Markets for Identical Items		Significant Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	(Liabilities)		(Level 1)		(Level 2)		(Level 3)
Long-lived assets held for use
As of November 2, 2013	$	3,000	$	—	$	3,000	$	—

Long-lived assets held for use

During the nine months ended November 2, 2013, an additional long-lived asset group held for use was written down to its fair value of $3.0 million, resulting in an impairment charge of $1.2 million, which was included in earnings for the period.  The inputs used to calculate the fair value of these long-lived assets held for use were based upon an offer to purchase the property.