The following is a summary of investments as of April 28, 2012:

 

The following is a summary of investments as of January 28, 2012:

 

The auction-rate securities and preferred stock were invested as follows as of April 28, 2012:

 

 

As of April 28, 2012, the Company’s auction-rate securities portfolio was 16% AAA/Aaa-rated, 57% AA/Aa-rated, 16% A-rated, and 11% below A-rated.

The amortized cost and fair value of debt securities by contractual maturity as of April 28, 2012 is as follows:

 

 

At April 28, 2012 and January 28, 2012, $14,138 and $14,141 of available-for-sale securities and $15,814 and $17,263 of held-to-maturity securities are classified in long-term investments. Trading securities are held in a Rabbi Trust, intended to fund the Company’s deferred compensation plan, and are classified in long-term investments.

 

The Company’s investments in auction-rate securities (“ARS”) and preferred securities are classified as available-for-sale and reported at fair market value. As of April 28, 2012, the reported investment amount is net of $1,113 of temporary impairment and $2,699 of other-than-temporary impairment (“OTTI”) to account for the impairment of certain securities from their stated par value. The $1,113 temporary impairment is reported, net of tax, as an “accumulated other comprehensive loss” of $701 in stockholders’ equity as of April 28, 2012. For the investments considered temporarily impaired, the Company believes that these ARS can be successfully redeemed or liquidated in the future at par value plus accrued interest. The Company believes it has the ability and maintains its intent to hold these investments until such recovery of market value occurs; therefore, the Company believes the current lack of liquidity has created the temporary impairment in valuation.

As of April 28, 2012, the Company had $15,950 invested in ARS and $2,000 invested in preferred securities, at par value, which are reported at their estimated fair value of $14,112 and $26, respectively. As of January 28, 2012, the Company had $15,975 invested in ARS and $2,000 invested in preferred securities, which were reported at their estimated fair value of $14,140 and $26, respectively. ARS have a long-term stated maturity, but are reset through a “dutch auction” process that occurs every 7 to 49 days, depending on the terms of the individual security. Until February 2008, the ARS market was highly liquid. During February 2008, however, a significant number of auctions related to these securities failed, meaning that there was not enough demand to sell the entire issue at auction. The failed auctions have limited the current liquidity of certain of the Company’s investments in ARS and the Company has reason to believe that certain of the underlying issuers of its ARS are currently at risk. The Company does not, however, anticipate that further auction failures will have a material impact on the Company’s ability to fund its business. During the first quarter of fiscal 2012, the Company was able to successfully liquidate $25 of its investments in ARS at par value. The Company reviews all investments for OTTI at least quarterly or as indicators of impairment exist. Indicators of impairment include the duration and severity of decline in market value. In addition, the Company considers qualitative factors including, but not limited to, the financial condition of the investee, the credit rating of the investee, and the current and expected market and industry conditions in which the investee operates.

As of April 28, 2012, all of the Company’s investments in ARS and preferred securities were classified in long-term investments. As of January 28, 2012, $25 of the Company’s investments in ARS and preferred securities was classified in short-term investments (due to a known upcoming redemption at par value) and $14,141 was classified in long-term investments.