Express 2011 Annual Report Download - page 66

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Cash and Cash Equivalents
Cash and cash equivalents include investments in U.S. treasury securities funds with an original maturity of 3
months or less, payments due from banks for third-party credit card and debit transactions for up to 5 days of
sales, cash on hand, and deposits with financial institutions. As of January 28, 2012 and January 29, 2011,
amounts due from banks for credit and debit card transactions totaled approximately $12.6 million and $11.9
million, respectively.
Outstanding checks not yet presented for payment amounted to $20.6 million and $31.5 million as of January 28,
2012 and January 29, 2011, respectively, and are included in accounts payable on the Consolidated Balance
Sheets.
The Company maintains cash and cash equivalents with various major financial institutions. The Company
monitors the relative credit standing of these financial institutions and other entities and limits the amount of
credit exposure with any one entity. The Company also monitors the creditworthiness of the entities to which it
grants credit terms in the normal course of business.
Fair Value of Financial Assets and Liabilities
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. Assets and liabilities measured at fair value are
classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the
measurement date.
Level 1-Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active
markets.
Level 2-Valuation is based upon quoted prices for similar assets and liabilities in active markets or
other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full
term of the financial instrument.
Level 3-Valuation is based upon other unobservable inputs that are significant to the fair value
measurement.
The following table presents the Company’s assets measured at fair value on a recurring basis as of January 28,
2012 and January 29, 2011, aggregated by the level in the fair value hierarchy within which those measurements
fall.
January 28, 2012
Level 1 Level 2 Level 3
(in thousands)
U.S. treasury securities funds ......................... $131,543 $— $—
January 29, 2011
Level 1 Level 2 Level 3
(in thousands)
U.S. treasury securities funds ......................... $168,929 $— $—
The carrying amounts reflected on the Consolidated Balance Sheets for cash, cash equivalents, receivables,
prepaid expenses, and payables as of January 28, 2012 and January 29, 2011 approximated their fair values.
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