The Company's fair value measurements consist of (a) non-financial assets and liabilities that are recognized or disclosed at fair value in the Company's financial statements on a recurring basis (at least annually) and (b) all financial assets and liabilities.

Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. There is a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The hierarchy is broken down into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities in active markets. Level 3 inputs are unobservable inputs for the asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The Company's long-term investments, interest rate swap agreements and contingent consideration are measured at fair value on a recurring basis. The information in the following paragraphs and tables primarily addresses matters relative to these assets and liabilities.

Cash equivalents, other than credit card receivables, include highly liquid investments with an original maturity of three months or less at acquisition. The Company carries these investments at fair value. As a result, the Company has determined that its cash equivalents in their entirety are classified as a Level 1 measure within the fair value hierarchy.

Collateral investments include monies on deposit that are restricted. The Company carries these investments at fair value. As a result, the Company has determined that its collateral investments are classified as a Level 1 measure within the fair value hierarchy.

Deferred compensation assets include variable life insurance policies held in a Rabbi Trust. The Company values these policies using observable market data. The inputs used to value the variable life insurance policy fall within Level 2 of the fair value hierarchy.

The Company has one interest rate swap designated as a cash flow hedge on $145.0 million of the Company's Senior Secured Term Loan facility that expires in October 2013. The Company values this swap using observable market data to discount projected cash flows and for credit risk adjustments. The inputs used to value derivatives fall within Level 2 of the fair value hierarchy.

The Company had recorded contingent consideration as a result of the acquisition of Florida Tire. The consideration was to be paid to the seller on each six month anniversary of the closing date until the deferred purchase price is paid in full, subject to acceleration or cancellation clauses. The calculation of the contingent consideration was based on a weighted average probability scenario that includes management's assumptions on expected future cash flows. As a result, the Company classified contingent considerations as a Level 3 measure within the fair value hierarchy. During fiscal 2011 the remaining deferred purchase price was cancelled in accordance with the terms of the purchase agreement.

The following table provides information by level for assets and liabilities that are measured at fair value, on a recurring basis.

			Fair Value Measurements Using Inputs Considered as

	Fair Value at January 28, 2012		Fair Value Measurements Using Inputs Considered as
(dollar amounts in thousands) Description	Fair Value at January 28, 2012		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	58,244	$	58,244	$	—	$	—
Collateral investments^(a)		17,276		17,276		—		—
Deferred compensation assets^(a)		3,576		—		3,576		—
Liabilities:
Other liabilities
Derivative liability^(b)		12,540		—		12,540		—

			Fair Value Measurements Using Inputs Considered as

	Fair Value at January 29, 2011		Fair Value Measurements Using Inputs Considered as
(dollar amounts in thousands) Description	Fair Value at January 29, 2011		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	90,240	$	90,240	$	—	$	—
Collateral investments^(a)		9,638		9,638		—		—
Deferred compensation assets^(a)		3,037		—		3,037		—
Liabilities:
Current liabilities
Contingent consideration^(b)		288		—		—		288
Other liabilities
Derivative liability^(c)		16,424		—		16,424
Contingent consideration^(c)		1,224		—		—		1,224

The following represents the impact of fair value accounting for the Company's derivative liability on its consolidated financial statements:

(dollar amounts in thousands)	Amount of Gain/ (Loss) in Other Comprehensive Income (Effective Portion)			Earnings Statement Classification	Amount of Loss Recognized in Earnings (Effective Portion)

Fiscal 2011	$	2,428		Interest expense	$	6,970
Fiscal 2010	$	(14	)	Interest expense	$	6,905

Certain assets are measured at fair value on a non-recurring basis, that is, the assets are subject to fair value adjustments in certain circumstances such as when there is evidence of impairment. In response to a continuing weak real estate market, the Company reduced its prices for certain properties held for disposal and recorded impairment charges of $0.2 million and $3.1 million in fiscal 2010 and 2009, respectively. The fair values were based on selling prices of comparable properties, net of expected disposal costs. These measures of fair value, and related inputs, are considered level 2 measures under the fair value hierarchy. Measurements of assets held and used are discussed in Note 11, "Store Closures and Asset Impairments."