Assets and liabilities measured at fair value

9 Months Ended

Oct. 28, 2011

Assets and liabilities measured at fair value

Assets and liabilities measured at fair value

6. Assets and liabilities measured at fair value

Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, fair value accounting standards establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

The Company has determined that the majority of the inputs used to value its derivative financial instruments using the income approach fall within Level 2 of the fair value hierarchy. However, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. As of October 28, 2011, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has classified its derivative valuations, as discussed in detail in Note 7, in Level 2 of the fair value hierarchy. The Company’s long-term obligations classified in Level 2 of the fair value hierarchy are valued at cost. The Company does not have any fair value measurements using significant unobservable inputs (Level 3) as of October 28, 2011.

(In thousands)	Quoted Prices inActive Markets for Identical Assets and Liabilities (Level 1)		SignificantOtherObservableInputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at October 28, 2011
Assets:
Trading securities (a)	$	6,741	$	—	$	—	$	6,741
Liabilities:
Long-term obligations (b)	2,760,831		19,827		—		2,780,658
Derivative financial instruments (c)	—		15,115		—		15,115
Deferred compensation (d)	18,141		—		—		18,141

(a)Reflected at fair value in the condensed consolidated balance sheet as Prepaid expenses and other current assets of $1,756 and Other assets, net of $4,985.

(b)Reflected at book value in the condensed consolidated balance sheet as Current portion of long-term obligations of $763 and Long-term obligations of $2,721,061.

(c) Reflected in the condensed consolidated balance sheet as Accrued expenses and other current liabilities of $7,842 and non-current Other liabilities of $7,273.

(d)Reflected at fair value in the condensed consolidated balance sheet as Accrued expenses and other current liabilities of $1,761 and non-current Other liabilities of $16,380.