Fair Value Measurements

6 Months Ended

Jul. 30, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

11. Fair Value Measurements

     Fair value is defined as 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 authoritative guidance for fair value measurements establishes a three-tier fair value hierarchy, categorizing the inputs used to measure fair value. The hierarchy can be described as follows: Level 1 — observable inputs such as quoted prices in active markets; Level 2 — inputs other than the quoted prices in active markets that are observable either directly or indirectly; and Level 3 — unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

     Effective January 31, 2010, we adopted enhanced disclosure requirements for fair value measurements. We adopted the second phase of the enhanced disclosure requirements for fair value measurements effective January 30, 2011. Refer to Note 1. There were no transfers into or out of Level 1 and Level 2 during the three and six months ended July 30, 2011 or July 31, 2010, respectively, or during the year ended January 29, 2011.

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

			Fair Value Measurements at Reporting Date Using
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Instruments		Inputs		Inputs
(in thousands)	July 30, 2011		(Level 1)		(Level 2)		(Level 3)
Assets:
Derivative financial instruments	$	89	$	—	$	89	$	—
Liabilities:
Derivative financial instruments	$	362	$	—	$	362	$	—

			Fair Value Measurements at Reporting Date Using
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Instruments		Inputs		Inputs
(in thousands)	January 29, 2011		(Level 1)		(Level 2)		(Level 3)
Assets:
Derivative financial instruments	$	361	$	—	$	361	$	—
Liabilities:
Derivative financial instruments	$	35	$	—	$	35	$	—

			Fair Value Measurements at Reporting Date Using
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Instruments		Inputs		Inputs
(in thousands)	July 31, 2010		(Level 1)		(Level 2)		(Level 3)
Assets:
Derivative financial instruments	$	155	$	—	$	155	$	—
Liabilities:
Derivative financial instruments	$	60	$	—	$	60	$	—

     Derivative financial instruments are comprised of foreign currency forward exchange contracts primarily entered into to minimize our foreign currency exposure related to forecasted purchases of certain inventories denominated in a currency different from the operating entity’s functional currency. Our derivative financial instruments are recorded in the condensed consolidated balance sheets at fair value based upon observable market inputs. Derivative financial instruments in an asset position are included within other current assets in the condensed consolidated balance sheets. Derivative financial instruments in a liability position are included within accrued expenses and other current liabilities in the condensed consolidated balance sheets. Refer to Note 12 for further information regarding our derivative instruments.

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

     Long-lived assets, such as property and equipment and identifiable intangibles with finite useful lives, are periodically evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the asset carrying amount exceeds its fair value, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. The fair values of long-lived assets held-for-use are based on our own judgments about the assumptions that market participants would use in pricing the asset and on observable market data, when available. We classify these measurements as Level 3 within the fair value hierarchy. For the three and six months ended July 30, 2011, we recorded charges for the impairment of long-lived assets of $1.0 million which is included within SG&A in our condensed consolidated statement of earnings. The asset impairment charges reduced the carrying amounts of the applicable long-lived assets, primarily leasehold improvements for certain Men’s Wearhouse and Tux stores, to their fair values of $0.1 million as of July 30, 2011. For the three and six months ended July 31, 2010, we recorded charges for the impairment of long-lived assets of $0.2 million which is included within SG&A in our condensed consolidated statement of earnings. The asset impairment charges reduced the carrying amounts of the applicable long-lived assets to their fair values of $0.2 million as of July 31, 2010.

     Fair Value of Financial Instruments

     Our financial instruments, other than those presented in the disclosures above, consist of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities and current maturities of long-term debt. Management estimates that, as of July 30, 2011, July 31, 2010 and January 29, 2011, the carrying value of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities approximate their fair value due to the highly liquid or short-term nature of these instruments. The fair value of current maturities of long-term debt at July 31, 2010 approximate their carrying amounts based upon terms available to us for borrowings with similar arrangements and remaining maturities.