Lowe's 2013 Annual Report Download - page 52

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44
The following tables present the Company’s non-financial assets measured at estimated fair value on a nonrecurring basis and
the resulting long-lived asset impairment losses included in earnings, excluding costs to sell for excess properties held-for-sale.
Because assets subject to long-lived asset impairment were not measured at fair value on a recurring basis, certain fair value
measurements presented in the table may reflect values at earlier measurement dates and may no longer represent the fair
values at January 31, 2014 and February 1, 2013.
Fair Value Measurements - Nonrecurring Basis
January 31, 2014
February 1, 2013
(In millions)
Fair Value
Measurements
Impairment
Losses
Fair Value
Measurements
Impairment
Losses
Assets-held-for-use:
Operating locations
$
13
$
(26
)
$
19
$
(55
)
Excess properties
56
(17
)
33
(17
)
Assets-held-for-sale:
Excess properties
4
(2
)
8
(4
)
Total
$
73
$
(45
)
$
60
$
(76
)
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, accounts payable, accrued liabilities and long-term debt and are reflected in the financial statements at
cost. With the exception of long-term debt, cost approximates fair value for these items due to their short-term nature. The fair
values of the Company’s unsecured notes classified as Level 1 were estimated using quoted market prices. The fair values of
the Company’s mortgage notes classified as Level 2 were estimated using discounted cash flow analyses, based on the future
cash outflows associated with these arrangements and discounted using the applicable risk-free borrowing rate.
Carrying amounts and the related estimated fair value of the Company’s long-term debt, excluding capitalized lease
obligations, are as follows:
January 31, 2014
February 1, 2013
Carrying
Fair
Carrying
Fair
(In millions)
Amount
Value
Amount
Value
Unsecured notes (Level 1)
$
9,617
$
10,630
$
8,627
$
9,860
Mortgage notes (Level 2)
17
19
19
22
Long-term debt (excluding capitalized lease
obligations)
$
9,634
$
10,649
$
8,646
$
9,882
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 31, 2014 and February 1, 2013 are as follows: