Fair Value Measurements

3 Months Ended

May 04, 2013

Fair Value Measurements

Fair Value Measurements

4.  Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price).  ASC 820, “Fair Value Measurement and Disclosures”, outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures, and prioritizes the inputs used in measuring fair value as follows:

Level 1:  Observable inputs such as quoted prices in active markets;

Level 2:  Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and

Level 3:  Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Assets measured at fair value on a recurring basis as of May 4, 2013 and February 2, 2013 are set forth in the table below (in thousands):

Description	Level 1		Level 2		Level 3
As of May 4, 2013
Assets:
Deferred compensation plan assets held in trust (1)	$	44,541	$	—	$	—
Total assets	$	44,541	$	—	$	—
As of February 2, 2013
Assets:
Deferred compensation plan assets held in trust (1)	$	36,871	$	—	$	—
Total assets	$	36,871	$	—	$	—

(1) Consists of investments in various mutual funds made by eligible individuals as part of the Company’s deferred compensation plan.

The fair value of cash and cash equivalents, accounts receivable, accounts payable and certain other liabilities approximated book value due to the short-term nature of these instruments at both May 4, 2013 and February 2, 2013.

The Company uses quoted prices in active markets to determine the fair value of the aforementioned assets determined to be Level 1 instruments.  The Company’s policy for recognition of transfers between levels of the fair value hierarchy is to recognize any transfer at the end of the fiscal quarter in which the determination to transfer was made.  There were no transfers between Level 1 and 2 during the 13 weeks ended May 4, 2013.  The Company did not hold any Level 3 financial assets or liabilities as of May 4, 2013 and February 2, 2013.