Urban Outfitters 2011 Annual Report Download - page 69

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URBAN OUTFITTERS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(in thousands, except share and per share data)
The following tables show the gross unrealized losses and fair value of the Company’s
marketable securities with unrealized losses that are not deemed to be other-than-temporarily impaired
aggregated by the length of time that individual securities have been in a continuous unrealized loss
position, at January 31, 2011 and January 31, 2010, respectively.
January 31, 2011
Less Than 12 Months 12 Months or Greater Total
Description of Securities Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses
Municipal and pre-refunded
municipal bonds ........... 103,090 (567) — — 103,090 (567)
Federal government agencies . . 1,397 (2) — — 1,397 (2)
FDIC insured corporate
bonds ................... 67,359 (154) — — 67,359 (154)
Auction rate securities ........ — — 29,462 (3,788) 29,462 (3,788)
Total ...................... 171,846 (723) 29,462 (3,788) 201,308 (4,511)
January 31, 2010
Less Than 12 Months 12 Months or Greater Total
Description of Securities Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses
Municipal and pre-refunded
municipal bonds ........... 25,468 (34) — — 25,468 (34)
Federal government agencies . . 55,988 (135) — — 55,988 (135)
Equities ................... — — 1,501 (299) 1,501 (299)
Auction rate securities ........ — — 37,625 (4,120) 37,625 (4,120)
Total ...................... 81,456 (169) 39,126 (4,419) 120,582 (4,588)
As of January 31, 2011 and 2010, there were a total of 128 and 53 issued securities with unrealized
loss positions within the Company’s portfolio, respectively. The total unrealized loss position due to
write-downs of ARS held by the Company that have experienced auction failures as of January 31, 2011
and 2010 was $3,788 and $4,120, respectively. 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.
As of January 31, 2011, the par value of our ARS was $33,250 and the estimated fair value was
$29,462. 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. The Company does not have the
intent to sell the underlying securities prior to their recovery and the Company believes it is not likely
that it will be required to sell the underlying securities prior to their anticipated recovery of full
amortized cost.
F-16