Lowe's 2012 Annual Report Download - page 55

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41
Segment Information - The Company’s home improvement retail operations represent a single operating segment based
on the way the Company manages its business. Key operating decisions are made at the Company level in order to
maintain a consistent retail store presentation. The Company’s home improvement retail stores sell similar products and
services, use similar processes to sell those products and services, and sell their products and services to similar classes of
customers. The amounts of long-lived assets and net sales outside of the U.S. were not significant for any of the periods
presented.
Reclassifications - Certain prior period amounts have been reclassified to conform to current classifications. Certain
amounts within the consolidated statements of cash flows have been reclassified, including the loss on equity method
investments and contributions to equity method investments – net, which are now presented as separate line items.
NOTE 2: Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The authoritative guidance for fair value measurements
establishes a three-level hierarchy, which encourages an entity to maximize the use of observable inputs and minimize the
use of unobservable inputs when measuring fair value. The three levels of the hierarchy are defined as follows:
• Level 1 - inputs to the valuation techniques that are quoted prices in active markets for identical assets or
liabilities
• Level 2 - inputs to the valuation techniques that are other than quoted prices but are observable for the assets or
liabilities, either directly or indirectly
• Level 3 - inputs to the valuation techniques that are unobservable for the assets or liabilities
Assets and Liabilities that are Measured at Fair Value on a Recurring Basis
The following tables present the Company’s financial assets measured at fair value on a recurring basis as of
February 1, 2013 and February 3, 2012, classified by fair value hierarchy:
Fair Value Measurements at Reporting
Date Using
February 1,
2013
(In millions) Level 1 Level 2 Level 3
Available-for-sale securities:
Municipal obligations ........................................................... $ 56 $ - $ 56 $ -
Money market funds ............................................................. 49 49 - -
Municipal floating rate obligations ...................................... 14 - 14 -
Other ..................................................................................... 6 - 6 -
Total short-term investments ................................................ $ 125 $ 49 $ 76 $ -
Available-for-sale securities:
Municipal floating rate obligations ...................................... $ 230 $ - $ 230 $ -
Municipal obligations ........................................................... 41 - 41 -
Total long-term investments ................................................. $ 271 $ - $ 271 $ -