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Fair Value Measurements
 9 Months Ended
Oct. 27, 2012
Fair Value Measurements Disclosure [Abstract]  
Fair Value Disclosures [Text Block]
Fair Value Measurements
 
Recurring Fair Value Measurements

ASC Topic 820, “Fair Value Measurements and Disclosures,” establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurement), then priority to quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market (Level 2 measurement), then the lowest priority to unobservable inputs (Level 3 measurement).
 
The fair values of cash and cash equivalents, receivables, accounts payable, accrued expenses, other current liabilities and short-term debt approximate their carrying values because of their short-term nature. 

The Company has $1.5 billion, 9.75% notes due January 2014 (the “January 2014 Notes”), of which $750 million was hedged from March 2010 to September 2011.  The Company received cash consideration of $30.3 million when the hedge was terminated in September 2011. The termination of this hedge resulted in a gain which is being amortized over the remaining term of the January 2014 Notes, the unamortized portion of which are reflected in the carrying values of the Notes.

The fair value of the January 2014 Notes was determined based on quoted market prices and is classified as a Level 1 measurement.  The following table reflects the difference between the financial statement carrying value and fair value of the January 2014 Notes as of October 27, 2012 and January 28, 2012 (in thousands):
 
October 27, 2012
 
January 28, 2012
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
January 2014 Notes
1,515,428

 
1,652,853

 
1,525,003

 
1,721,490


 
The following table shows the Company’s assets and liabilities as of October 27, 2012 and January 28, 2012 that are measured and recorded in the financial statements at fair value on a recurring basis (in thousands): 
 
October 27, 2012
 
Quoted Prices in Active Markets for Identical Assets or Liabilities
 
Significant Other Observable Inputs
 
Unobservable Inputs
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
Money market funds
$
473,390

 
$
—

 
$
—

Derivative assets
—

 
529

 
—

Liabilities
 
 
 
 
 
Derivative liabilities
—

 
(26,020
)
 
—



 
January 28, 2012
 
Quoted Prices in Active Markets for Identical Assets or Liabilities
 
Significant Other Observable Inputs
 
Unobservable Inputs
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
Money market funds
$
468,913

 
$
—

 
$
—

Liabilities
 
 
 
 
 
Derivative liabilities
—

 
(36,418
)
 
—



     The fair values of the Company’s money market funds are based on quotes received from third-party banks.  The fair values of the Company’s derivative liabilities are based on quotes received from third-party banks and represent the estimated amount the Company would pay to terminate the agreements taking into consideration current interest and forward exchange rates as well as the creditworthiness of the counterparty.

Non-Recurring Fair Value Measurements
    
During the third quarter of 2012, the Company recognized goodwill impairment charges of $771.5 million and long-lived asset impairment charges of $39.5 million. These charges were based on fair value measurements derived using the income approach, specifically the discounted cash flow, relief from royalty, and multi-period excess earnings methods. The valuation methodologies incorporated unobservable inputs reflecting significant estimates and assumptions made by management. Accordingly, the Company classified these measurements as Level 3 within the fair value hierarchy. The charges were also based, in part, on property appraisals prepared by third-party valuation specialists. The appraisals incorporate a significant amount of judgment on the part of the valuation specialists regarding appropriate comparable properties and an assessment of current market conditions. The Company has also classified these measurements as Level 3 within the fair value hierarchy. Refer to Note D - Impairment of Goodwill and Long-Lived Assets for further detailed information related to the significant unobservable inputs.