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LOWE’S 2010 ANNUAL REPORT 39
Fair Value Measurements – Non-Recurring Basis
January 28, 2011
Previous
Fair Value Carrying Impairment
(In millions) Measurements Amounts Losses
Operating stores:
Long-lived assets
฀ ฀ held-for-use฀฀ $15฀฀ $51฀฀ $(36)
Excess฀properties:฀
Long-lived assets
฀ ฀ held-for-use฀฀ $45฀฀ $71฀฀ $(26)
Long-lived assets
฀ ฀ held-for-sale฀฀ $36฀฀ $44฀฀ $฀ (8)
January 29, 2010
Previous
Fair Value Carrying Impairment
(In millions) Measurements Amounts Losses
Operating stores:
Long-lived assets
฀ ฀ held-for-use฀฀ $฀฀฀฀6฀฀ $฀฀฀฀59฀฀ $(53)
Excess฀properties:฀
Long-lived assets
฀ ฀ held-for-use฀฀ $74฀฀ $114฀฀ $(40)
Long-lived assets
฀ ฀ held-for-sale฀฀ $25฀฀ $฀฀฀฀46฀฀ $(21)
Fair Value of Financial Instruments
The Company’s financial instruments not measured at fair value on a
recurring basis include cash and cash equivalents, accounts receivable,
short-term borrowings, accounts payable, accrued liabilities and long-
term฀debt฀and฀are฀reected฀in฀the฀nancial฀statements฀at฀cost.฀With฀the฀
exception฀of฀long-term฀debt,฀cost฀approximates฀fair฀value฀for฀these฀
items due to their short-term nature. Estimated fair values for long-term
debt have been determined using available market information, including
reported trades, benchmark yields and broker-dealer quotes.
Carrying amounts and the related estimated fair value of the
Company’s฀long-term฀debt,฀excluding฀capitalized฀lease฀obligations,฀
are as follows:
January 28, 2011 January 29, 2010
Carrying Fair Carrying Fair
(In millions) Amount Value Amount Value
Long-term debt
฀ (excluding฀capitalized฀
฀ lease฀obligations)฀ $6,209฀฀ $6,715฀฀ $4,737฀฀ $5,127
NOTE 3 INVESTMENTS
The amortized costs, gross unrealized holding gains and losses, and fair
values of the Company’s investment securities classified as available-for-
sale at January 28, 2011, and January 29, 2010, are as follows:
January 28, 2011
Gross Gross
Type Amortized Unrealized Unrealized Fair
(In millions) Costs Gains Losses Values
Municipal฀obligations฀ $฀ ฀฀฀189฀ $฀฀1฀ $฀฀฀–฀ $฀ ฀฀฀190
Municipal฀oating฀rate฀
obligations 163 – – 163
Money market funds 66 – – 66
Other 2 – – 2
Classified as short-term 420 1 – 421
Municipal฀oating฀rate฀
obligations 765 – – 765
Municipal obligations 209 – (1) 208
Other 35 – – 35
Classified as long-term 1,009 – (1) 1,008
Total $1,429 $ 1 $(1) $1,429
January 29, 2010
Gross Gross
Type Amortized Unrealized Unrealized Fair
(In millions) Costs Gains Losses Values
Municipal฀obligations฀ $294฀ $2฀ $฀฀–฀ $296
Municipal฀oating฀rate฀
obligations 7 – – 7
Money market funds 68 – – 68
Other 12 – – 12
Classified as short-term 381 2 – 383
Municipal฀oating฀rate฀
obligations 141 – – 141
Municipal obligations 134 2 – 136
Classified as long-term 275 2 – 277
Total $656 $4 $ – $660
The proceeds from sales of available-for-sale securities were
$814฀million,฀$1.2฀billion฀and฀$1.0฀billion฀for฀2010,฀2009฀and฀2008,฀
respectively. Gross realized gains and losses on the sale of available-
for-sale securities were not significant for any of the periods presented.
The investments classified as long-term at January 28, 2011, will
mature in one to 41 years, based on stated maturity dates.
The Company has elected the fair value option for certain
investments maintained in conjunction with certain employee benefit
plans. These investments are reported as trading securities, which are
included฀in฀short-term฀investments,฀and฀were฀$50฀million฀and฀$42฀million฀
at January 28, 2011 and January 29, 2010, respectively. For the years
ended January 28, 2011, January 29, 2010, and January 30, 2009,
net฀unrealized฀gains฀for฀trading฀securities฀totaled฀$6฀million,฀$7฀million,฀
and฀$14฀million,฀respectively.฀Unrealized฀gains฀and฀losses฀on฀trading฀
securities฀were฀included฀in฀SG&A฀expense.฀Cash฀ows฀from฀purchases,฀
sales฀and฀maturities฀of฀trading฀securities฀are฀included฀in฀cash฀ows฀from฀
investing฀activities฀in฀the฀consolidated฀statements฀of฀cash฀ows฀based฀
on the nature and purpose for which the securities were acquired.