Fair Value Measurements (Tables)

9 Months Ended

Nov. 01, 2014

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

In accordance with the fair value hierarchy described above, the following table shows the fair value of our financial assets and liabilities that are required to be remeasured at fair value on a recurring basis:

	Level 1						Level 2						Level 3
	November 1, 2014		February 1, 2014		November 2, 2013		November 1, 2014		February 1, 2014		November 2, 2013		November 1, 2014		February 1, 2014		November 2, 2013
	(In thousands)
Assets:
Cash equivalents 1	$	80,005	$	82,378	$	36,265	$	—	$	—	$	—	$	—	$	—	$	—
Total	$	80,005	$	82,378	$	36,265	$	—	$	—	$	—	$	—	$	—	$	—
Liabilities:
GoJane performance plan liability 2	$	—	$	—	$	—	$	—	$	—	$	—	$	5,915	$	7,416	$	7,350
Exit costs obligation 3	—		—		—		—		—		—		2,889		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	8,804	$	7,416	$	7,350

¹ Cash and cash equivalents include money market investments valued as Level 1 inputs in the fair value hierarchy. The fair value of cash and cash equivalents approximates their carrying value due to their short-term maturities.

² Under the terms of the fiscal 2012 GoJane acquisition agreement, the purchase price also includes contingent cash payments of up to an aggregate of $8.0 million if certain financial metrics are achieved by the GoJane business during the five year period beginning on the acquisition date (the "GJ Performance Plan"). These performance payments are not contingent upon continuous employment by the two individual stockholders. The GJ Performance Plan liability is measured at fair value using Level 3 inputs as defined in the fair value hierarchy. The fair value of the contingent payments as of the acquisition date was estimated to be $7.0 million. This was based on a weighted average expected achievement probability and a discount rate over the expected payment stream. Each quarter, we remeasure the GJ Performance Plan liability at fair value.

³ In accordance with the lease assignment for the 34th Street store, we placed $2.4 million in escrow for payment of real estate taxes. We recorded an exit cost obligation related to the real estate taxes at fair value of $2.0 million on the cease-use date. Additionally, the above exit costs obligation includes $1.0 million of lease costs related to four P.S. from Aéropostale stores with previously executed leases that will not open in connection with our restructuring program. These exit cost liabilities are measured at fair value using Level 3 inputs as defined in the fair value hierarchy. This was based on a discount rate over the expected payment streams. Each quarter we remeasure these liabilities at fair value.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table provides a reconciliation of the beginning and ending balances of the Exit Cost Obligations measured at fair value using significant unobservable inputs (Level 3):

	39 weeks ended
	November 1, 2014			November 2, 2013
	(In thousands)
Balance at beginning of period	$	—		$	—
Fair value of exit costs obligations at cease-use date	3,009			—
Accretion of rent expense	245			—
Payments	(365		)	—
Balance at end of period	$	2,889		$	—

The following table provides a reconciliation of the beginning and ending balances of the GJ Performance Plan measured at fair value using significant unobservable inputs (Level 3):

	39 weeks ended
	November 1, 2014			November 2, 2013
	(In thousands)
Balance at beginning of period	$	7,416		$	7,019
Accretion of interest expense	99			331
GoJane consideration payment	(1,600		)	—
Balance at end of period	$	5,915		$	7,350

Fair Value of Long-Lived Assets Impaired

The table below sets forth by level within the fair value hierarchy the fair value of long-lived assets for which impairment was recognized for the first thirty-nine weeks of 2014 and the first thirty-nine weeks of 2013:

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value		Total Losses
	(In thousands)
November 1, 2014:
Long-lived assets held and used	$	—	$	—	$	6,488	$	6,488	$	64,611
November 2, 2013:
Long-lived assets held and used	$	—	$	—	$	5,431	$	5,431	$	13,624