Fair Value Measurements

6 Months Ended

Jul. 28, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Instruments Measured at Fair Value on a Recurring Basis

Financial assets measured and recorded at fair value on a recurring basis consisted of the following types of instruments:

	Fair Value as of July 28, 2013								Fair Value as of January 27, 2013
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)		Total		(Level 1)		(Level 2)		(Level 3)
Agency securities	$	4,923	$	—	$	4,923	$	—	$	7,907	$	—	$	7,907	$	—
Bank time deposits	—		—		—		—		4,973		—		4,973		—
Total available-for-sale securities	4,923		—		4,923		—		12,880		—		12,880		—
Interest rate cap	591		—		591		—		544		—		544		—
Total financial assets	$	5,514	$	—	$	5,514	$	—	$	13,424	$	—	$	13,424	$	—

Available-for-sale securities included in Level 2 are valued utilizing inputs obtained from an independent service (the “Service”), which uses quoted market prices for identical or comparable instruments rather than direct observations of quoted prices in active markets. The Service gathers observable inputs for all of our fixed income securities from a variety of industry data providers, for example, large custodial institutions and other third-party sources. Once the observable inputs are gathered by the Service, all data points are considered and an average price is determined. The Service’s providers utilize a variety of inputs to determine their quoted prices. The Company reviews and evaluates the values provided by the Service and agrees with the valuation methods and assumptions used in determining the fair value of investments. The Company believes this method provides a reasonable estimate for fair value.

The fair value of the interest rate cap at July 28, 2013 is estimated as described in Note 11 and is included in “Other assets” on the unaudited consolidated condensed balance sheet.

Financial assets measured and recorded at fair value on a recurring basis were presented on the Company’s unaudited consolidated condensed balance sheets as follows:

	Fair Value as of July 28, 2013								Fair Value as of January 27, 2013
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)		Total		(Level 1)		(Level 2)		(Level 3)
Temporary investments	$	—	$	—	$	—	$	—	$	4,973	$	—	$	4,973	$	—
Long-term investments	4,923		—		4,923		—		7,907		—		7,907		—
Other assets	591		—		591		—		544		—		544		—
Total financial assets	$	5,514	$	—	$	5,514	$	—	$	13,424	$	—	$	13,424	$	—

During the six months ended July 28, 2013, the Company had no transfers of financial assets or liabilities between Level 1, Level 2 or Level 3. As of July 28, 2013 and January 27, 2013, the Company had not elected the fair value option for any financial assets and liabilities for which such an election would have been permitted.

Instruments Not Recorded at Fair Value on a Recurring Basis

Some of the Company’s financial instruments are not measured at fair value on a recurring basis but are recorded at amounts that approximate fair value due to their liquid or short-term nature. Such financial assets and financial liabilities include: cash and cash equivalents, receivables, net, certain other assets, accounts payable and accrued expenses, accrued personnel costs, and other current liabilities.

The Company’s long-term debt is not recorded at fair value on a recurring basis, but is measured at fair value for disclosure purposes. The fair value of the Company’s Term Loans (as defined herein) of $123.3 million and Revolving Commitments (as defined herein) of $177.2 million at July 28, 2013 approximate their carrying amounts based on the variable nature of the rates and their proximity to the May 2, 2013 issuance date. See Note 10 for details.

Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis

The Company reduces the carrying amounts of its goodwill, intangible assets, long-lived assets and non-marketable equity security to fair value when held for sale or determined to be impaired.

For its investment in equity interests, the Company has not identified events or changes in circumstances that may have a significant adverse effect on the fair value of its cost method investment during the first six months of fiscal year 2014.