Abercrombie & Fitch 2011 Annual Report Download - page 82

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ABERCROMBIE & FITCH CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
January 29, 2011, respectively. Restricted cash includes various cash deposits with international banks that
are used as collateralization for customary non-debt banking commitments and deposits into trust accounts
to conform with standard insurance security requirements.
6. INVESTMENTS
Investments consisted of (in thousands):
January 28, 2012 January 29, 2011
Marketable securities:
Available-for-sale securities:
Auction rate securities — student loan backed ................. $ 84,650 $ 85,732
Auction rate securities — municipal authority bonds ............ 14,858 14,802
Total available-for-sale securities ......................... 99,508 100,534
Rabbi Trust assets:(1)
Money market funds ....................................... 23 343
Municipal notes and bonds .................................. — 11,870
Trust-owned life insurance policies (at cash surrender value) ......... 85,126 70,288
Total Rabbi Trust assets ..................................... 85,149 82,501
Total Investments .......................................... $184,657 $183,035
(1) Rabbi Trust assets are included in Other Assets on the Consolidated Balance Sheets and are restricted
as to their use.
At January 28, 2012, the Company’s investment grade ARS consisted of insured student loan backed
securities and municipal authority bonds, with maturities ranging from 16 to 31 years. Each investment in
student loans is insured by (1) the U.S. government under the Federal Family Education Loan Program,
(2) a private insurer or (3) a combination of both. The percentage of insurance coverage of the outstanding
principal and interest of the ARS varies by security.
The par and carrying values, and related cumulative other-than-temporary impairment charges for the
Company’s available-for-sale marketable securities as of January 28, 2012 were as follows:
Par Value
Other-than-
Temporary
Impairment
Carrying
Value
(in thousands)
Available-for-sale securities:
Auction rate securities — student loan backed ................... $ 92,975 $ (8,325) $84,650
Auction rate securities — municipal authority bonds .............. 19,975 (5,117) 14,858
Total available-for-sale securities ........................... $112,950 $(13,442) $99,508
See Note 7, “Fair Value,” for further discussion on the valuation of the ARS.
79