Fair Value Measurements

12 Months Ended

Jan. 28, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

5. 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 the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Entities are required to use a three-level hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

     The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows:

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities

Level 2 – Unadjusted quoted prices in active markets for similar assets or liabilities, or; Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or; Inputs other than quoted prices that are observable for the asset or liability

Level 3 – Unobservable inputs for the asset or liability.

     We measure certain financial assets at fair value on a recurring basis, including our marketable securities, which are classified as available-for-sale securities, certain cash equivalents, specifically our money market accounts, and assets held in our non-qualified deferred compensation plan. The money market accounts are valued based on quoted market prices in active markets. Our marketable securities are generally valued based on other observable inputs for those securities (including market corroborated pricing or other models that utilize observable inputs such as interest rates and yield curves) based on information provided by independent third party pricing entities, except for U.S. government securities which are valued based on quoted market prices in active markets. The investments in our non-qualified deferred compensation plan are valued using quoted market prices and are included in other assets on our consolidated balance sheets.

     From time to time, we measure certain assets at fair value on a non-recurring basis, specifically long-lived assets evaluated for impairment. We estimate the fair value of our long-lived assets using company-specific assumptions which would fall within Level 3 of the fair value hierarchy.

     During fiscal 2011, we did not make any transfers between Level 1 and Level 2 financial assets. Furthermore during fiscal 2011 and 2010, we did not have any Level 3 financial assets. We conduct reviews on a quarterly basis to verify pricing, assess liquidity, and determine if significant inputs have changed that would impact the fair value hierarchy disclosure.

     In accordance with the provisions of the guidance, we categorized our financial assets, whether valued on a recurring or non-recurring basis, based on the priority of the inputs to the valuation technique for the instruments, as follows (amounts in thousands):

	Balance as of January 28, 2012		Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Current Assets
Cash equivalents:
Money market accounts	$	3,793	$	3,793	$	–	$	–
Marketable securities:
Corporate bonds		73,107		–		73,107		–
Municipal securities		61,260		–		61,260		–
U.S. government securities		25,355		25,355		–		–
U.S. government agencies		23,648		–		23,648		–
Certificates of deposit		3,576		–		3,576		–
Commercial paper		1,988		–		1,988		–
Noncurrent Assets
Deferred compensation plan		4,146		4,146		–		–
Total	$	196,873	$	33,294	$	163,579	$	–

			Fair Value Measurements at Reporting Date Using
	Balance as of January 29, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Current Assets
Cash equivalents:
Money market accounts	$	5,397	$	5,397		$	$	–
Marketable securities:
Variable rate demand notes		319,220		–		319,220		–
Municipal securities		151,159		–		151,159		–
U.S. government securities		58,554		58,554		–		–
Corporate bonds		2,055		–		2,055		–
Asset-backed securities		3,031		–		3,031		–
Noncurrent Assets
Deferred compensation plan		4,143		4,143		–		–
Total	$	543,559	$	68,094	$	475,465	$	–