FAIR VALUE MEASUREMENTS

9 Months Ended

Oct. 27, 2012

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

NOTE 12 — FAIR VALUE MEASUREMENTS

Under ASC 820-10, “Fair Value Measurements and Disclosures,” 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.  ASC 820-10 also establishes 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 and are developed based on market data obtained from sources independent of us.  Unobservable inputs are inputs that reflect our assumptions about the factors market participants would use in valuing the asset or liability that are developed based upon the best information available under 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, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly.  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.

Assets and Liabilities that are Measured at Fair Value on a Recurring Basis:

Historically, fair value under ASC 820-10 has applied to our available-for-sale securities.  We had no available-for-sale securities at October 27, 2012.  We did have approximately $20.9 million of available-for-sale securities at January 28, 2012.  These financial assets were carried at fair value following the requirements of ASC 820-10.

The following table provides information by level for assets and liabilities that are measured at fair value on a recurring basis (in thousands):

			Fair Value Measurements
	Fair Value at		Using Inputs Considered as
Description	January 28, 2012		Level 1		Level 2		Level 3
Short-term investments:
Available-for-sale securities:
Municipal bonds	$	5,660	$	—	$	5,660	$	—
U.S. Agency securities	2,000		—		2,000		—
Total current assets	7,660		—		7,660		—
Long-term investments:
Available-for-sale securities:
Municipal bonds	13,284		—		13,284		—
Total non-current assets	13,284		—		13,284		—
Total assets	$	20,944	$	—	$	20,944	$	—

Following is a description of the valuation methodologies used for financial assets and liabilities measured at fair value:

Available-for-sale securities:  Our available-for-sale securities were valued based on quoted prices for similar assets in active markets or quoted prices for identical or similar assets in markets in which there were fewer transactions.

Assets and Liabilities that are Measured at Fair Value on a Non-recurring Basis:

									Realized
	Thirty-nine								Gains (Losses)
	Weeks Ended		Fair Value Measurements						Thirty-nine
	October 27,		Using Inputs Considered as						Weeks Ended
Description	2012		Level 1		Level 2		Level 3		October 27, 2012
Assets:
Long-lived assets held and used	$	34	$	—	$	—	$	34	$	(139	)
Liabilities:	$	—	$	—	$	—	$	—	$	—

In accordance with the provisions of the Impairment or Disposal of Long-Lived Assets Subsections of FASB Codification Subtopic 360-10, long-lived assets held and used with a carrying amount of $172,000 were written down to their fair value of $34,000, during the first quarter of fiscal 2012, resulting in an impairment charge of $139,000 which was included in earnings for the thirty-nine weeks ended October 27, 2012.

Our assessment of the recoverability of the carrying value of our assets involves the projection of future cash flows, which requires the use of significant estimates and assumptions.  Differences in circumstances or estimates could produce significantly different results.  The current challenging economic environment which affects the retail industry makes it possible that additional long-lived asset impairments could be identified and recorded in future periods.