FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

3 Months Ended

May 04, 2013

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

We determine fair value of financial assets and liabilities based on the following fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels:

Level 1 inputs – unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. An active market for the asset or liability is one in which transactions for the asset or liability occur with sufficient frequency and volume to provide ongoing pricing information.

Level 2 inputs – inputs other than quoted market prices included in Level 1 that are observable, either directly or indirectly, for the asset or liability. Level 2 inputs include, but are not limited to, quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted market prices that are observable for the asset or liability, such as interest rate curves and yield curves observable at commonly quoted intervals, volatilities, credit risk and default rates.

Level 3 inputs – unobservable inputs for the asset or liability.

Accounts receivable, merchandise payables, short-term borrowings, accrued liabilities and domestic cash and cash equivalents are reflected in the Condensed Consolidated Balance Sheets at cost, which approximates fair value due to the short-term nature of these instruments. The fair value of our debt is disclosed in Note 2 to the Condensed Consolidated Financial Statements. The following tables provide the fair value measurement amounts for other financial assets and liabilities recorded in our Condensed Consolidated Balance Sheets at fair value at May 4, 2013, April 28, 2012 and February 2, 2013:

millions	Total Fair Value Amounts at May 4, 2013		Level 1		Level 2		Level 3
Cash equivalents(1)	$	35	$	35	$	—	$	—
Restricted cash(2)	10		10		—		—
Total	$	45	$	45	$	—	$	—

millions	Total Fair Value Amounts at April 28, 2012			Level 1		Level 2			Level 3
Cash equivalents(1)	$	291		$	291	$	—		$	—
Restricted cash(2)	7			7		—			—
Foreign currency derivative assets(3)	2			—		2			—
Foreign currency derivative liabilities(4)	(3		)	—		(3		)	—
Total	$	297		$	298	$	(1	)	$	—

millions	Total Fair Value Amounts at February 2, 2013		Level 1		Level 2		Level 3
Cash equivalents(1)	$	181	$	181	$	—	$	—
Restricted cash(2)	9		9		—		—
Total	$	190	$	190	$	—	$	—

⁽¹⁾  Included within Cash and cash equivalents in our Condensed Consolidated Balance Sheets.

⁽²⁾  Included within Restricted cash in our Condensed Consolidated Balance Sheets.

⁽³⁾  Included within Prepaid expenses and other current assets in our Condensed Consolidated Balance Sheets.

⁽⁴⁾  Included within Accrued expenses and other current liabilities in our Condensed Consolidated Balance Sheets.

The fair values of derivative assets and liabilities traded in the over-the-counter market are determined using quantitative models that require the use of multiple inputs including interest rates, prices and indices to generate pricing and volatility factors. The predominance of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. Our derivative instruments are valued using Level 2 measurements.