Lowe's 2012 Annual Report Download - page 58

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44
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 February 1, 2013 and February 3, 2012 are as follows:
February 1, 2013
(In millions)
Amortized
Costs
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fai
r
Values
Municipal obligations ........................................................ $ 56 $ - $ - $ 56
Money market funds .......................................................... 49 - - 49
Municipal floating rate obligations .................................... 14 - - 14
Other .................................................................................. 6 - - 6
Classified as short-term ................................................... 125 - - 125
Municipal floating rate obligations .................................... 230 - - 230
Municipal obligations ........................................................ 40 1 - 41
Classified as long-term .................................................... 270 1 - 271
Total .................................................................................. $ 395 $ 1 $ - $ 396
February 3, 2012
(In millions)
Amortized
Costs
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fai
r
Values
Municipal obligations ........................................................ $ 79 $ - $ - $ 79
Money market funds .......................................................... 153 - - 153
Municipal floating rate obligations .................................... 25 - - 25
Other .................................................................................. 2 - - 2
Classified as short-term ................................................... 259 - - 259
Municipal floating rate obligations .................................... 363 - - 363
Municipal obligations ........................................................ 120 2 - 122
Other .................................................................................. 19 - - 19
Classified as long-term .................................................... 502 2 - 504
Total .................................................................................. $ 761 $ 2 $ - $ 763
The proceeds from sales of available-for-sale securities were $1.1 billion, $1.3 billion and $814 million for 2012, 2011 and
2010, 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 February 1, 2013, will mature in one to 37 years, based
on stated maturity dates.
The Company elected the fair value option for certain investments previously maintained in conjunction with certain
employee benefit plans. These investments were reported as trading securities, which were included in short-term
investments, and were $27 million at February 3, 2012. In 2012 the Company sold these investments for proceeds of $29
million and recognized gains of $2 million. Net unrealized gains/losses for 2011 were not significant, and net unrealized
gains for 2010 totaled $6 million. Unrealized gains and losses on trading securities were included in SG&A expense. Cash
flows from purchases, sales and maturities of trading securities are included in cash flows from investing activities in the
consolidated statements of cash flows based on the nature and purpose for which the securities were acquired.
Short-term and long-term investments include restricted balances pledged as collateral primarily for the Company’s
extended protection plan program. At February 3, 2012, short-term and long-term investments also included restricted
balances pledged as collateral for a portion of the Company’s casualty insurance liability. Restricted balances included in
short-term investments were $123 million at February 1, 2013 and $233 million at February 3, 2012. Restricted balances
included in long-term investments were $263 million at February 1, 2013 and $262 million at February 3, 2012.