Express 2014 Annual Report Download - page 52

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Outstanding checks not yet presented for payment amounted to $14.6 million and $38.3 million as of January 31,
2015 and February 1, 2014, respectively, and are included in accounts payable on the Consolidated Balance
Sheets.
Fair Value Measurements
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.
Financial Assets
The following table presents the Company’s financial assets measured at fair value on a recurring basis as of
January 31, 2015 and February 1, 2014, aggregated by the level in the fair value hierarchy within which those
measurements fall.
January 31, 2015
Level 1 Level 2 Level 3
(in thousands)
U.S. treasury securities money market funds ............. $166,602 $— $—
February 1, 2014
Level 1 Level 2 Level 3
(in thousands)
U.S. treasury securities money market funds ............. $290,361 $— $—
Non-Financial Assets
The Company’s non-financial assets, which include fixtures, equipment, improvements, and intangible assets, are
not required to be measured at fair value on a recurring basis. However, the Company tests for impairment, if
certain triggering events occur indicating the carrying value of these assets may not be recoverable or annually in
the case of indefinite lived intangibles. See additional discussion under the heading “Property and Equipment,
Net” in this note below for additional section that follows.
The carrying amounts reflected on the Consolidated Balance Sheets for cash, cash equivalents, receivables,
prepaid expenses, and payables as of January 31, 2015 and February 1, 2014 approximated their fair values.
Receivables, Net
Receivables, net consist primarily of receivables from our franchisees and third-party resellers of our gift cards,
as well as other miscellaneous receivables. Outstanding receivables are continuously reviewed for collectability.
The Company’s allowance for doubtful accounts was not significant as of January 31, 2015 or February 1, 2014.
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