Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS

v3.5.0.2
FAIR VALUE MEASUREMENTS
6 Months Ended
Jul. 30, 2016
FAIR VALUE MEASUREMENTS [Abstract]  
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS
As required, financial assets and liabilities are classified in the fair value hierarchy in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.
The following table sets forth the Company's financial assets and liabilities that are accounted for at fair value on a recurring basis:
(in millions)
 
July 30,
2016
 
January 30,
2016
 
August 1,
2015
Level 1
 
 
 
 
 
 
Restricted investments
 
$

 
$
82.0

 
$
88.0

Short-term investments
 
4.0

 
4.0

 
4.0

Long-term debt - secured senior notes and Acquisition Notes
 
3,804.8

 
3,754.6

 
3,713.8

Level 2
 
 
 
 
 
 
Restricted investments
 

 

 
34.0

Diesel fuel swap liabilities
 

 
0.8

 
3.5

Long-term debt - term loans
 
3,862.0

 
3,886.1

 
4,936.0


The Company's cash and cash equivalents are valued at cost, which approximates fair value, due to the short-term maturities of these instruments.
The fair values of the diesel fuel swaps were estimated using discounted cash flow calculations based upon forward interest-rate yield and diesel cost curves. The curves were obtained from independent pricing services reflecting broker market quotes. As of July 30, 2016, the Company did not have any diesel fuel swaps outstanding.
The fair values of the Company's secured senior notes and Acquisition Notes were determined using Level 1 inputs as quoted prices in active markets for identical assets or liabilities are available. The fair values of the Company's term loans were determined using Level 2 inputs as quoted prices are readily available from pricing services, but the prices are not published. The carrying values of the Company's Revolving Credit Agreement approximated their fair values because the interest rates vary with market interest rates.
Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). The Company did not record any significant impairment charges during the 13 or 26 weeks ended July 30, 2016.