Investments

6 Months Ended

Jul. 28, 2012

Investments

Note 3. Investments

The following tables summarize the Company’s investments (in thousands):

	As of July 28, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Short-term investments:
Available-for-sale:
Corporate debt securities	$	612,749	$	3,775	$	(55	)	$	616,469
Foreign government		2,026		10		—			2,036
U.S. federal and state debt securities		608,735		864		(19	)		609,580
Total short-term investments	$	1,223,510	$	4,649	$	(74	)	$	1,228,085
Long-term investments:
Available-for-sale:
Auction rate securities	$	19,500	$	—	$	(1,397	)	$	18,103
Total long-term investments	$	19,500	$	—	$	(1,397	)	$	18,103
Total investments	$	1,243,010	$	4,649	$	(1,471	)	$	1,246,188

	As of January 28, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Short-term investments:
Available-for-sale:
Corporate debt securities	$	685,563	$	3,081	$	(799	)	$	687,845
Foreign government		2,033		3		—			2,036
U.S. federal and state debt securities		770,298		1,437		(20	)	$	771,715
Total short-term investments	$	1,457,894	$	4,521	$	(819	)	$	1,461,596
Long-term investments:
Available-for-sale:
Auction rate securities	$	24,500	$	—	$	(1,285	)	$	23,215
Total long-term investments	$	24,500	$	—	$	(1,285	)	$	23,215
Total investments	$	1,482,394	$	4,521	$	(2,104	)	$	1,484,811

As of July 28, 2012, the Company’s investment portfolio included auction rate securities with an aggregate par value of $19.5 million. To estimate the fair value of the auction rate securities, the Company uses a discounted cash flow model based on estimated timing and amount of future interest and principal payments. In developing the cash flow model, the Company considers the credit quality and liquidity of the underlying securities and related issuer, the collateralization of underlying security investments and other considerations. The fair value of the auction rate securities as of July 28, 2012 was $1.4 million less than the par value and was recorded in long-term investments. Based on the Company’s balance of approximately $2.1 billion in cash, cash equivalents and short-term investments, and the fact that the Company continues to generate positive cash flow from operations on a quarterly basis, the Company does not anticipate having to sell these securities below par value and does not have the intent to sell these auction rate securities until recovery. Since the Company considers the impairment to be temporary, the Company recorded the unrealized loss to accumulated other comprehensive income, a component of shareholders’ equity.

The contractual maturities of available-for-sale securities at July 28, 2012 and January 28, 2012 are presented in the following table (in thousands):

	July 28, 2012				January 28, 2012
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	565,566	$	566,593	$	641,433	$	642,317
Due between one and five years		655,445		658,976		816,461		819,279
Due over five years		21,999		20,619		24,500		23,215
	$	1,243,010	$	1,246,188	$	1,482,394	$	1,484,811

For individual securities that have been in a continuous unrealized loss position, the fair value and gross unrealized loss at July 28, 2012 and January 28, 2012 for these securities aggregated by investment category and length of time in an unrealized position are presented in the following tables (in thousands):

	July 28, 2012
	Less than 12 months					12 months or more					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Corporate debt securities	$	36,290	$	(32	)	$	4,852	$	(23	)	$	41,142	$	(55	)
U.S. federal and state debt securities		91,791		(19	)		—		—			91,791		(19	)
Auction rate securities		—		—			18,103		(1,397	)		18,103		(1,397	)
Total securities	$	128,081	$	(51	)	$	22,955	$	(1,420	)	$	151,036	$	(1,471	)

	January 28, 2012
	Less than 12 months					12 months or more					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Corporate debt securities	$	146,963	$	(799	)	$	—	$	—		$	146,963	$	(799	)
U.S. federal and state debt securities		107,603		(20	)		—		—			107,603		(20	)
Auction rate securities		—		—			23,215		(1,285	)		23,215		(1,285	)
Total securities	$	254,566	$	(819	)	$	23,215	$	(1,285	)	$	277,781	$	(2,104	)