Cash, Cash Equivalents and Investments

12 Months Ended

Mar. 03, 2012

Cash, Cash Equivalents and Investments [Abstract]

Cash, Cash Equivalents and Investments

4. CASH, CASH EQUIVALENTS AND INVESTMENTS

The components of cash, cash equivalents and investments were as follows:

	Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Short-term Investments		Long-term Investments
As at March 3, 2012
Bank balances	$	453	$	—	$	—	$	453	$	453	$	—	$	—
Money market funds		5		—		—		5		5		—		—
Bankers acceptances		284		—		—		284		284		—		—
Term deposits/certificates		217		—		—		217		202		15		—
Commercial paper		402		—		—		402		355		47		—
Non-U.S. treasury bills/notes		71		—		—		71		71		—		—
U.S. treasury bills/notes		114		—		—		114		40		32		42
U.S. government sponsored enterprise notes		127		—		—		127		91		24		12
Non-U.S. government sponsored enterprise notes		18		—		—		18		10		8		—
Corporate notes/bonds		165		1		—		166		16		121		29
Asset-backed securities		109		—		—		109		—		—		109
Auction rate securities		35		1		—		36		—		—		36
Other investments		109		—		—		109		—		—		109
	$	2,109	$	2	$	—	$	2,111	$	1,527	$	247	$	337
As at February 26, 2011
Bank balances	$	288	$	—	$	—	$	288	$	288	$	—	$	—
Money market funds		20		—		—		20		20		—		—
Bankers acceptances		468		—		—		468		468		—		—
Term deposits/certificates		125		—		—		125		109		16		—
Commercial paper		416		—		—		416		369		47		—
Non-U.S. treasury bills/notes		509		—		—		509		509		—		—
U.S. treasury bills/notes		82		—		—		82		—		40		42
U.S. government sponsored enterprise notes		190		1		—		191		8		66		117
Non-U.S. government sponsored enterprise notes		26		—		—		26		—		10		16
Corporate notes/bonds		342		4		—		346		20		150		176
Asset-backed securities		141		—		—		141		—		1		140
Auction rate securities		35		—		—		35		—		—		35
Other investments		51		—		—		51		—		—		51
	$	2,693	$	5	$	—	$	2,698	$	1,791	$	330	$	577

Realized gains and losses on available-for-sale securities comprise the following:

	For the year ended
	March 3, 2012		February 26, 2011		February 27, 2010
Realized gains	$	1	$	2	$	—
Realized losses		—		—		—
Net realized gains	$	1	$	2	$	—

The contractual maturities of available-for-sale investments at March 3, 2012 were as follows:

	Cost Basis		Fair Value
Due in one year or less	$	1,315	$	1,316
Due in one to five years		192		192
Due after five years		35		36
No fixed maturity date		5		5
	$	1,547	$	1,549

As at March 3, 2012 and February 26, 2011, the Company had no investments with continuous unrealized losses.

The Company engages in securities lending to generate fee income. Collateral, which exceeds the market value of the loaned securities, is retained by the Company until the underlying security has been returned to the Company. As at March 3, 2012, the company had no securities on loan.

During fiscal 2011, the Company recognized an other-than-temporary impairment charge on its auction rate securities in the amount of $6 million as a result of the lack of continuing liquidity in these securities. In valuing these securities, the Company used a multi-year investment horizon and considered the underlying risk of the securities and the current market interest rate environment. The Company has the ability and intent to hold these securities until such time that market liquidity returns to normal levels, and does not consider the principal or interest amounts on these securities to be materially at risk. The Company has not recorded any additional impairment on its auction rate securities as of March 3, 2012. As there is uncertainty as to when market liquidity for auction rate securities will return to normal, the Company has classified the auction rate securities as long-term investments on the consolidated balance sheet as at March 3, 2012.

During fiscal 2011, the Company also recognized an other-than-temporary impairment charge of $11 million against a portion of its claim on Lehman Brothers International (Europe) (“LBIE”) trust assets. These assets are represented by principal and interest payments from matured investments that were originally held at LBIE at the time of bankruptcy. The Company has classified $25 million of these holdings as other investments on the consolidated balance sheet as at March 3, 2012 and February 26, 2011. Previously, these holdings were classified as bank balances on the consolidated balance sheet as at February 27, 2010. The Company has not recorded any additional impairment on its claim of trust assets as of March 3, 2012. The classification change is represented in the consolidated statement of cash flows for the year ended February 26, 2011 as an acquisition of long-term investments.