Fair Value Measurements

3 Months Ended

Apr. 28, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 4 - Fair Value Measurements

The FASB has established guidance for using fair value to measure assets and liabilities.  This guidance only applies when other standards require or permit the fair value measurement of assets and liabilities.  It does not expand the use of fair value measurements.  A fair value hierarchy was established, which prioritizes the inputs used in measuring fair value into three broad levels.

· Level 1 - Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;

· Level 2 - Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and

· Level 3 - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

Our financial assets as of April 28, 2012, January 28, 2012 and April 30, 2011 included cash and cash equivalents, which are valued using the market approach.  The carrying value of cash and cash equivalents approximates fair value due to its short-term nature and is considered a Level 1 fair value measurement.  We did not have any financial liabilities measured at fair value for these periods.

The following table summarizes our cash and cash equivalents that are measured at fair value on a recurring basis:

(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
As of April 28, 2012
Cash and short-term investments (1)	$	86,238	$	0	$	0	$	86,238
Credit and debit card receivables (2)		6,053		0		0		6,053
	$	92,291	$	0	$	0	$	92,291
As of January 28, 2012
Cash and short-term investments (1)	$	66,110	$	0	$	0	$	66,110
Credit and debit card receivables (2)		4,492		0		0		4,492
	$	70,602	$	0	$	0	$	70,602
As of April 30, 2011
Cash and short-term investments (1)	$	63,203	$	0	$	0	$	63,203
Credit and debit card receivables (2)		5,850		0		0		5,850
	$	69,053	$	0	$	0	$	69,053

(1) Cash and short-term investments represent cash deposits and short-term investments held with financial institutions, such as commercial paper and money market funds.  To date, we have experienced no loss or lack of access to either invested cash or cash held in our bank accounts.

(2) Our credit and debit card receivables are highly liquid financial assets that typically settle in less than three days.

From time to time, we measure certain assets at fair value on a non-recurring basis, specifically long-lived assets evaluated for impairment.  Long-lived assets are reviewed for impairment in accordance with current authoritative literature whenever events or changes in circumstances indicate that full recoverability is questionable.  If the expected future cash flows related to the long-lived assets are less than the assets' carrying value, an impairment loss would be recognized for the difference between estimated fair value and carrying value and recorded in selling, general and administrative expenses.  Fair value of our long-lived assets is estimated using a projected cash flow analysis and are classified within Level 3 of the valuation hierarchy.  An increase or decrease in the projected cash flow can significantly decrease or increase the fair value of these assets, which would have an effect on the impairment recorded.

Impaired long-lived assets were measured at fair value on a non-recurring basis using Level 3 inputs as defined in the fair value hierarchy.  There were no impairments of long-lived assets recorded during the thirteen weeks ended April 28, 2012 or April 30, 2011.  During the fifty-two weeks ended January 28, 2012, long-lived assets held and used with a gross carrying amount of $966,000 were written down to their fair value of $628,000, resulting in an impairment charge of $338,000, which was included in earnings for the period.  Subsequent to this impairment, these long-lived assets had a remaining unamortized basis of $84,000.

We did not have any non-financial liabilities measured at fair value for these periods.