Urban Outfitters 2009 Annual Report Download - page 65

Download and view the complete annual report

Please find page 65 of the 2009 Urban Outfitters annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 85

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85

URBAN OUTFITTERS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
As of January 31, 2009, there were a total of 50 issued securities with unrealized loss positions
within the Company’s portfolio with a total unrealized loss position of $6,365. The total unrealized
loss position due to write-downs of ARS held by the Company that have experienced auction failures
was $5,283. The Company deemed all of these securities as temporarily impaired. The unrealized loss
positions were primarily due to auction failures of the ARS held and fluctuations in the market interest
rates for remaining securities. The Company believes it has the ability to realize the full value of all of
these investments upon maturity or redemption. At January 31, 2008, there were no issued securities
with an unrealized loss position within the Company’s portfolio.
As of January 31, 2009, the par value of our ARS was $44,025 and the estimated fair value was
$38,742. Our ARS portfolio consists of “A” or better rated ARS that represent interests in municipal
and student loan related collateralized debt obligations, all of which are guaranteed by either
government agencies and/or insured by private insurance agencies at 97% or greater of par value. To
date, we have collected all interest payable on outstanding ARS when due and have not been informed
by the issuers that accrued interest payments are currently at risk. We have the ability to hold the
underlying securities until their maturity.
4. Fair Value of Financial Assets and Financial Liabilities
Effective February 1, 2008, the Company adopted the provisions of SFAS No. 157 that relate to
its financial assets and financial liabilities. SFAS No. 157 establishes a hierarchy that prioritizes fair
value measurements based on the types of inputs used for the various valuation techniques (market
approach, income approach and cost approach). The levels of the hierarchy are described as follows:
• Level 1: Observable inputs such as quoted prices in active markets for identical assets or
liabilities.
• Level 2: Inputs other than quoted prices that are observable for the asset or liability, either
directly or indirectly; these include quoted prices for similar assets or liabilities in active
markets and quoted prices for identical or similar assets or liabilities in markets that are not
active.
• Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.
F-17