Fair Value Measurements

3 Months Ended

Apr. 29, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 7: Fair Value Measurements

When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. The Company uses the following three levels of inputs in determining the fair value of the Company's assets and liabilities, focusing on the most observable inputs when available:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs to the valuation methodology that is significant to the measurement of fair value of assets or liabilities.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed is determined based on the lowest level input that is significant to the fair value measurement.

Instruments Measured at Fair Value on a Recurring Basis

For certain of the Company's financial instruments, including cash held in banks, accounts receivable and accounts payable, the carrying amounts approximate fair value due to their short maturities, and are therefore excluded from the fair value tables below.

Financial assets measured and recorded at fair value on a recurring basis consisted of the following types of instruments:

	Fair Value as of April 29, 2012								Fair Value as of January 29, 2012
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)		Total		(Level 1)		(Level 2)		(Level 3)
Agency securities	$	14,022	$	—	$	14,022	$	—	$	26,132	$	—	$	26,132	$	—
Corporate issues		3,009		—		3,009		—		4,511		—		4,511		—
Bank time deposits		5,102		—		5,102		—		70,000		—		70,000		—
Total financial assets	$	22,133	$	—	$	22,133	$	—	$	100,643	$	—	$	100,643	$	—

Available-for-sale securities included in Level 2 are valued utilizing inputs obtained from an independent service (the "Service"), which uses quoted market prices for identical or comparable instruments rather than direct observations of quoted prices in active markets. The Service gathers observable inputs for all of our fixed income securities from a variety of industry data providers, for example, large custodial institutions and other third-party sources. Once the observable inputs are gathered by the Service, all data points are considered and an average price is determined. The Service's providers utilize a variety of inputs to determine their quoted prices. Substantially all of our available-for-sale investments are valued utilizing inputs obtained from the Service and accordingly are categorized as Level 2. The Company reviews and evaluates the values provided by the Service and agrees with the valuation methods and assumptions used in determining the fair value of investments. The Company believes this method provides a reasonable estimate for fair value.

Financial assets and liabilities measured and recorded at fair value on a recurring basis were presented on the Company's Unaudited Consolidated Condensed Balance Sheets as follows:

	Fair Value as of April 29, 2012								Fair Value as of January 29, 2012
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)		Total		(Level 1)		(Level 2)		(Level 3)
Temporary investments	$	8,611	$	—	$	8,611	$	—	$	83,121	$	—	$	83,121	$	—
Investments, maturities in excess of 1 year		13,522		—		13,522		—		17,522		—		17,522		—
Total financial assets	$	22,133	$	—	$	22,133	$	—	$	100,643	$	—	$	100,643	$	—

During the three months ended April 29, 2012, the Company had no transfers of financial assets or liabilities between Level 1, Level 2 or Level 3. As of April 29, 2012 and January 29, 2012, the Company had not elected the fair value option for any financial assets and liabilities for which such an election would have been permitted.

Instruments Not Recorded at Fair Value on a Recurring Basis

Some of our financial instruments are not measured at fair value on a recurring basis but are recorded at amounts that approximate fair value due to their liquid or short-term nature. Such financial assets and financial liabilities include: cash and cash equivalents, receivables, net, certain other assets, accounts payable and accrued expenses, accrued personnel costs, and other current liabilities.

The fair values of the Company's Term A Loans of $99.5 million and Term B Loans of $247.5 million at April 29, 2012 approximate their carrying amounts based on the variable nature of the rates and their proximity to the March 20, 2012 issuance date.

Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis

The Company measures the fair value of its assets acquired and liabilities assumed in a business acquisition, and goodwill and other long lived assets when they are held for sale or determined to be impaired. See Note 2 for discussion on fair value measurements of certain assets recorded at fair value on a non-recurring basis.