Note 6: Investments

Certain investments that have original maturities of three months or less are accounted for as cash equivalents. This includes money market funds, time deposits and U.S. government obligations. Temporary and long-term investments consist of government, bank and corporate obligations, and bank time deposits with original maturity dates in excess of 90 days. Temporary investments have original maturities in excess of three months, but mature within twelve months of the balance sheet date. Long-term investments mature in excess of one year from the balance sheet date. The Company determines the cost of securities sold based on the specific identification method. Realized gains or losses are reported in "Interest and other income, net" on the consolidated condensed statements of operations.

The Company classifies its investments as "available for sale" because it may sell some securities prior to maturity. The Company's investments are subject to market risk, primarily interest rate and credit risks. The Company's investments are managed by a limited number of outside professional managers that operate within investment guidelines set by the Company. These guidelines include specified permissible investments, minimum credit quality ratings and maximum average duration restrictions and are intended to limit market risk by restricting the Company's investments to high quality debt instruments with relatively short-term maturities.

The following table summarizes the Company's investments as of July 31, 2011 and January 30, 2011:


	July 31, 2011						January 30, 2011
(in thousands)	Market Value		Adjusted Cost Basis		Unrealized Gain		Market Value		Adjusted Cost Basis		Unrealized Gain
Agency securities	$	53,363	$	53,302	$	61	$	54,747	$	54,658	$	89
Corporate issues		13,656		13,536		120		16,576		16,354		222
Bank time deposits		106,000		106,000		—		68,000		68,000		—

Total investments	$	173,019	$	172,838	$	181	$	139,323	$	139,012	$	311

Agency securities are specific securities that are issued by United States government agencies such as Ginnie Mae, Fannie Mae, Freddie Mac or the Federal Home Loan Banks. Due to the expectation of federal backing, these securities usually hold the highest credit rating possible.

The following table summarizes the maturities of the Company's investments at July 31, 2011 and January 30, 2011:


	July 31, 2011				January 30, 2011
(in thousands)	Market Value		Adjusted Cost Basis		Market Value		Adjusted Cost Basis
Within 1 year	$	141,937	$	141,760	$	112,237	$	112,077
After 1 year through 5 years		31,082		31,078		27,086		26,935

Total investments	$	173,019	$	172,838	$	139,323	$	139,012

Unrealized gains (losses) are the result of fluctuations in the market value of the Company's investments and are included in "Accumulated other comprehensive income" on the consolidated condensed balance sheets. The following table summarizes unrealized gains (losses) in addition to the tax associated with these comprehensive income items:


	Three months ended					Six months ended
(in thousands)	July 31, 2011			August 1, 2010		July 31, 2011			August 1, 2010
Unrealized (loss) gain, net of tax	$	(64	)	$	94	$	(101	)	$	26
Increase (decrease) to deferred tax liability		(19	)		20		(29	)		(5	)

The following table summarizes interest income generated from investments and cash and cash equivalents:


	Three months ended				Six months ended
(in thousands)	July 31, 2011		August 1, 2010		July 31, 2011		August 1, 2010
Interest income	$	277	$	279	$	581	$	503