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 three months. Temporary investments have original maturities in excess of three months, but mature within twelve months of the balance sheet date. Long-term investments have original maturities in excess of twelve months. 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 unaudited 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:


	October 30, 2011						January 30, 2011
(in thousands)	Market Value		Adjusted Cost		Unrealized Gain		Market Value		Adjusted Cost		Unrealized Gain
Agency securities	$	40,754	$	40,720	$	34	$	54,747	$	54,658	$	89
Corporate issues		13,566		13,501		65		16,576		16,354		222
Bank time deposits		80,000		80,000		—		68,000		68,000		—

Total investments	$	134,320	$	134,221	$	99	$	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:


	October 30, 2011				January 30, 2011
(in thousands)	Market Value		Adjusted Cost		Market Value		Adjusted Cost
Within 1 year	$	109,006	$	108,909	$	112,237	$	112,077
After 1 year through 5 years		25,314		25,312		27,086		26,935

Total investments	$	134,320	$	134,221	$	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 unaudited 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						Nine months ended
(in thousands)	October 30, 2011			October 31, 2010			October 30, 2011			October 31, 2010
Unrealized (loss) gain, net of tax	$	(63	)	$	10		$	(164	)	$	36
Decrease to deferred tax liability		(19	)		(1	)		(48	)		(6	)

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


	Three months ended				Nine months ended
(in thousands)	October 30, 2011		October 31, 2010		October 30, 2011		October 31, 2010
Interest income	$	337	$	242	$	917	$	693