Target 2011 Annual Report Download - page 63

Download and view the complete annual report

Please find page 63 of the 2011 Target annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

pending transactions of similar assets, third-party independent appraisals, valuation multiples or public
comparables, less cost to sell where appropriate. We classify these measurements as Level 2.
Fair Value Measurements – Nonrecurring Basis
Other current assets Property and equipment
(millions) Long-lived assets held for sale Long-lived assets held and used (a)
Measured during the year ended January 28, 2012:
Carrying amount $ 12 $126
Fair value measurement 11 89
Gain/(loss) $ (1) $ (37)
Measured during the year ended January 29, 2011:
Carrying amount $ 9 $127
Fair value measurement 7 101
Gain/(loss) $ (2) $ (26)
(a) Primarily relates to real estate and buildings intended for sale in the future but not currently meeting the held for sale criteria.
The following table presents the carrying amounts and estimated fair values of financial instruments not
measured at fair value in the Consolidated Statements of Financial Position. The fair value of marketable securities
is determined using available market prices at the reporting date. The fair value of debt is generally measured using
a discounted cash flow analysis based on current market interest rates for similar types of financial instruments.
January 28, 2012 January 29, 2011
Financial Instruments Not Measured at Fair Value
Carrying Fair Carrying Fair
(millions) Amount Value Amount Value
Financial assets
Other current assets
Marketable securities (a) $35$35$32$32
Other non current assets
Marketable securities (a) 66 44
Total $41$41$36$36
Financial liabilities
Total debt (b) $15,680 $18,142 $15,241 $16,661
Total $15,680 $18,142 $15,241 $16,661
(a) Held-to-maturity investments that are held to satisfy the regulatory requirements of Target Bank and Target National Bank.
(b) Represents the sum of nonrecourse debt collateralized by credit card receivables and unsecured debt and other borrowings excluding
unamortized swap valuation adjustments and capital lease obligations.
Based on various inputs and assumptions, including discussions with third parties in the context of our
intended sale, we believe the gross balance of our credit card receivables approximates fair value at January 28,
2012. The carrying amounts of accounts payable and certain accrued and other current liabilities approximate fair
value at January 28, 2012.
9. Cash Equivalents
Cash equivalents include highly liquid investments with an original maturity of three months or less from the
time of purchase. These investments were $194 million and $1,129 million at January 28, 2012, and January 29,
2011, respectively. Cash equivalents also include amounts due from third-party financial institutions for credit and
debit card transactions. These receivables typically settle in less than five days and were $330 million at January 28,
2012, and $313 million at January 29, 2011. Payables due to Visa resulting from the use of Target Visa Cards are
included within cash equivalents and were $35 million and $36 million at January 28, 2012, and January 29, 2011,
respectively.
39
PART II