6. Investments

Investments in securities of companies in which the Company does not have a controlling interest, or is unable to exert significant influence, are accounted for as either held-to-maturity, available-for-sale investments or trading investments.

The Company classifies its investments in securities at the time of purchase into one of three categories: held-to-maturity, available-for-sale or trading. The Company re-evaluates such classifications on a quarterly basis. Held-to-maturity investments would normally consist of debt securities that the Company has the intent and ability to retain until maturity. These securities are recorded at cost, as adjusted for the amortization of premiums and discounts, and approximate fair value. Available-for-sale investments primarily consist of municipal bonds and auction rate securities (“ARS”), which are recorded at fair value. Unrealized gains and losses on available-for-sale investments are classified as a component of accumulated other comprehensive income in the consolidated balance sheets, and realized gains or losses are classified as a component of interest and other income, net, in the consolidated statement of operations. Trading securities would normally consist of securities that are acquired by the Company with the intent of selling in the near term. Trading securities are carried at fair value, with changes in unrealized holding gains and losses included in income and classified within interest and other income, net, in the accompanying consolidated statements of operations.

No material unrealized gains or losses on available-for-sale investments were recognized during any of the periods presented. As of the end of each period, the Company had no securities classified as held-to-maturity or trading.

The following table summarizes the Company’s short-term and non-current investments by maturity date that were recorded in the consolidated balance sheets as of January 28, 2012 and July 30, 2011.

	January 28, 2012								July 30, 2011
	<1 year		1- 3 years		Over 3 years		Total		<1 year		1- 3 years		Over 3 years		Total
							(millions)
Available-for-sale investments - short-term:
Municipal bonds	$	48.0	$	--	$	--	$	48.0	$	52.7	$	--	$	--	$	52.7
Restricted cash		2.7		--		--		2.7		1.4		--		--		1.4
Total short-term investments		50.7		--		--		50.7		54.1		--		--		54.1

Available-for-sale investments - non-current:
Municipal bonds		--		109.0		26.1		135.1		--		102.7		23.8		126.5
Auction rate securities		--		--		8.9		8.9		--		--		12.0		12.0
Total non-current available-for-sale investments		--		109.0		35.0		144.0		--		102.7		35.8		138.5
Other non-current investments		4.0		--		--		4.0		--		--		--		--
Total non-current investments		4.0		109.0		35.0		148.0		--		102.7		35.8		138.5
Total Investments	$	54.7	$	109.0	$	35.0	$	198.7	$	54.1	$	102.7	$	35.8	$	192.6

ARS are variable-rate debt securities. ARS have a long-term maturity with the interest rate being reset through Dutch auctions that are typically held every 7, 28 or 35 days. Interest is paid at the end of each auction period. The vast majority of our ARS are AAA/Aaa rated, with the majority collateralized by student loans guaranteed by the U.S. government under the Federal Family Education Loan Program and the remaining securities backed by monoline insurance companies. Our net $8.9 million of investments in available-for-sale ARS are classified as non-current assets in our consolidated balance sheets as of January 28, 2012 because of our inability to determine when our investments in ARS could be sold. On occasion an ARS is called by its issuer as was the case during the first six months of Fiscal 2012, when $3.4 million of ARS were called for redemption. The Company believes that the current lack of liquidity in the ARS market will not have an impact on our ability to fund our ongoing operations and growth initiatives; for that reason, we have no intent to sell, nor is it more likely than not that we will be required to sell these ARS investments until a recovery of the auction process, redemption by the issuer or, if necessary, maturity. These securities are currently paying in accordance with their contractual terms, and as such, management does not believe any individual unrealized loss at January 28, 2012 represents an other-than-temporary impairment, as management attributes the declines in value to changes in interest rates and recent market volatility, not credit quality or other factors.