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75
Fair Value Measurements Using Inputs Considered as
Fair Value at
February 2, 2013
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets
Cash and cash equivalents
Money market funds $ 520 $ 520 $ — $ —
Other current assets
Foreign currency derivative instruments 1 — 1 —
Other assets
Auction rate securities 21 — — 21
Marketable equity securities 27 27 — —
Marketable securities that fund deferred compensation 88 88 — —
The following table provides a reconciliation between the beginning and ending balances of items measured at fair value on a
recurring basis in the tables above that used significant unobservable inputs (Level 3) ($ in millions).
Debt securities — Auction rate securities only
Student loan
bonds Municipal
revenue bonds Total
Balances at March 3, 2012 $ 80 $ 2 $ 82
Changes in unrealized losses in other comprehensive income 4 — 4
Sales (65) — (65)
Balances at February 2, 2013 19 2 21
Changes in unrealized losses in other comprehensive income 1 — 1
Sales (13) — (13)
Balances at February 1, 2014 $ 7 $ 2 $ 9
The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
Money Market Funds. Our money market fund investments that are traded in an active market were measured at fair value
using quoted market prices and, therefore, were classified as Level 1. Our money market fund investments not traded on a
regular basis or in an active market, and for which we have been unable to obtain pricing information on an ongoing basis,
were measured using inputs other than quoted market prices that are observable for the investments and, therefore, were
classified as Level 2.
Commercial Paper. Our investments in commercial paper were measured using inputs based upon quoted prices for
similar instruments in active markets and, therefore, were classified as Level 2.
Treasury Bills. Our Treasury bills were classified as Level 1 as they trade with sufficient frequency and volume to enable
us to obtain pricing information on an ongoing basis.
Foreign Currency Derivative Instruments. Comprised primarily of foreign currency forward contracts and foreign
currency swap contracts, our foreign currency derivative instruments were measured at fair value using readily observable
market inputs, such as quotations on forward foreign exchange points and foreign interest rates. Our foreign currency
derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various
bank counterparties that are not traded in an active market.
Auction Rate Securities. Our investments in auction rate securities ("ARS") were classified as Level 3 as quoted prices
were unavailable. Due to limited market information, we utilized a DCF model to derive an estimate of fair value. The
assumptions we used in preparing the DCF model included estimates with respect to the amount and timing of future
interest and principal payments, forward projections of the interest rate benchmarks, the probability of full repayment of