Kohl's 2009 Annual Report Download - page 56

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Table of Contents


 
securities we owned as there was no recent activity in the secondary markets in these types of securities. This model used unique inputs for each security
including discount rate, interest rate currently being paid and maturity. The discount rate was calculated using the closest match available for other insured
asset backed securities. A market failure scenario was employed as recent successful auctions of these securities were very limited.
The following table presents a rollforward of our long-term ARS, all of which are measured at fair value on a recurring basis using unobservable inputs
(Level 3):
 

Balance at beginning of year  $—
Transfers into Level 3   424
Sales (at par)  (17)
Unrealized gains / (losses)  (75)
Balance at end of year  $332
Unrealized gains / (losses) are reported net of deferred taxes of $6 million at January 30, 2010 and $29 million at January 31, 2009 as a component of
Accumulated Other Comprehensive Gain (Loss) in the Consolidated Statement of Shareholders’ Equity.
.
Long-term debt consists of the following:
 





Non-callable and unsecured senior debt:
2011   $400
2017   650
2029   200
2033   300
2037   350
Total senior debt   1,900
Capital lease obligations  177
Unamortized debt discount  (7)
Less current portion  (17)
Long-term debt and capital leases  $2,053
Based on quoted market prices (Level 1 per ASC No. 820, “Fair Value Measurements and Disclosures”), the estimated fair value of our senior debt was
approximately $2.1 billion at January 30, 2010 and $1.6 billion at January 31, 2009.
We have various facilities upon which we may draw funds, including a $900 million senior unsecured revolving facility and two demand notes with
aggregate availability of $50 million. Depending on the type of advance under these facilities, amounts borrowed bear interest at competitive bid rates; LIBOR
plus a margin, depending on our long-term unsecured debt ratings; or the agent bank’s base rate. The $900 million revolving
F-14