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Table of Contents
72
Fair Value Measurements Using Inputs Considered as
Fair Value at
February 1, 2014
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 $ 53 $ 53 $ — $ —
Commercial paper 80 — 80 —
Treasury bills 263 263 — —
Short-term investments
Commercial paper 100 — 100 —
Other current assets
Foreign currency derivative instruments 2 — 2 —
Other assets
Auction rate securities 9 — — 9
Marketable securities that fund deferred compensation 96 96 — —
Liabilities
Accrued liabilities
Foreign currency derivative instruments 5 — 5 —
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 were measured at fair value as they trade in an active market
using quoted market prices and, therefore, are classified as Level 1.
Corporate Bonds. Our corporate bond investments were measured at fair value using quoted market prices. They were
classified as Level 2 as they trade in a non-active market for which bond prices are readily available.
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 traded 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.
Interest Rate Swap Derivative Instruments. Our interest rate swap contracts were measured at fair value using readily
observable inputs, such as the LIBOR interest rate. Our interest rate swap 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 include 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
the principal considering the credit quality and guarantees in place, and the rate of return required by investors to own such
securities given the current liquidity risk associated with ARS.