Macy's 2010 Annual Report Download - page 95

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
15. Fair Value Measurements and Concentrations of Credit Risk
The following table shows the Company’s financial assets that are required to be measured at fair value on a
recurring basis:
January 29, 2011 January 30, 2010
Total
Fair Value Measurements
Total
Fair Value Measurements
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
(millions)
Marketable equity and
debt securities .... $95 $41 $54 $– $99 $33 $66 $–
On February 25, 2011, the Company sold its investment in The Knot, Inc. and unrecognized gains in
accumulated other comprehensive income were reclassified into the Consolidated Statements of Operations.
Other financial instruments not measured at fair value on a recurring basis include cash and cash
equivalents, receivables, short-term debt, merchandise accounts payable, accounts payable and accrued liabilities
and long-term debt. With the exception of long-term debt, the carrying amount approximates fair value because
of the short maturity of these instruments. The fair values of long-term debt, excluding capitalized leases, are
estimated based on the quoted market prices for publicly traded debt or by using discounted cash flow analyses,
based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements.
The following table shows the estimated fair value of the Company’s long-term debt:
January 29, 2011 January 30, 2010
Notional
Amount
Carrying
Amount
Fair
Value
Notional
Amount
Carrying
Amount
Fair
Value
(millions)
Long-term debt ............................... $6,702 $6,941 $6,969 $8,156 $8,431 $7,946
The following table shows certain of the Company’s non-financial assets that were measured at fair value on
a nonrecurring basis during 2010 and 2009:
January 29, 2011 January 30, 2010
Total
Fair Value Measurements
Total
Fair Value Measurements
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
(millions)
Long-lived assets held
and used ......... $18 $– $– $18 $33 $– $– $33
During 2010, long-lived assets held and used with a carrying value of $36 million were written down to
their fair value of $18 million, resulting in an asset impairment charge of $18 million. During 2009, long-lived
assets held and used with a carrying value of $148 million were written down to their fair value of $33 million,
resulting in an asset impairment charge of $115 million. The fair values of these locations were calculated based
F-47