Fair Value of Financial Instruments

6 Months Ended

Jul. 29, 2017

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. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date:


•	Level 1 – Quoted prices in active markets for identical assets or liabilities;


•	Level 2 – Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;


•	Level 3 – Unobservable inputs based on the Company’s own assumptions.

The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement.

The carrying amounts reflected on the Condensed Consolidated Balance Sheets for cash and cash equivalents, receivables, other current assets, and payables as of July 29, 2017, and January 28, 2017, approximated their fair values.

The following table details the fair value measurements of the Company's investments as of July 29, 2017 and January 28, 2017 (in thousands):



	Level 1				Level 2				Level 3
	July 29, 2017		January 28, 2017		July 29, 2017		January 28, 2017		July 29, 2017		January 28, 2017
Cash equivalents⁽¹⁾	$	2,957	$	—	$	11,362	$	—	$	—	$	—
Short-term investments:
Municipal securities	—		—		4,872		—		—		—
Commercial paper	—		—		3,992		—		—		—
U.S. corporate debt securities	—		—		6,634		—		—		—
Non-U.S. corporate debt securities	—		—		2,943		—		—		—
Certificate of deposit	—		—		—		30,152		—		—
Long-term investments:
U.S. corporate debt securities	—		—		8,655		—		—		—
Non-U.S. corporate debt securities	—		—		5,794		—		—		—
Municipal securities	—		—		1,059		—		—		—
U.S. treasury securities	2,018		—		—		—		—		—

(1) Cash equivalents include a money market fund, commercial paper, non-U.S. corporate debt securities and municipal securities that have a maturity of three months or less at the date of purchase. Due to their short maturity, the Company believes the carrying value approximates fair value.

The Company has certain assets that are measured on a non-recurring basis under circumstances and events described in Note 12 herein. The categorization of the framework to price these assets are within Level 3 due to the subjective nature of unobservable inputs.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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