Best Buy 2014 Annual Report Download - page 79

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74
Level 2 — Significant other observable inputs available at the measurement date, other than quoted prices included in Level 1,
either directly or indirectly, including:
• Quoted prices for similar assets or liabilities in active markets;
• Quoted prices for identical or similar assets in non-active markets;
• Inputs other than quoted prices that are observable for the asset or liability; and
• Inputs that are derived principally from or corroborated by other observable market data.
Level 3 — Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of
significant management judgment. These values are generally determined using pricing models for which the assumptions
utilize management's estimates of market participant assumptions.
Assets and Liabilities that are Measured at Fair Value on a Recurring Basis
The fair value hierarchy requires the use of observable market data when available. In instances in which the inputs used to
measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on
the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a
particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to
the asset or liability. The following tables set forth by level within the fair value hierarchy, our financial assets and liabilities
that were accounted for at fair value on a recurring basis at February 1, 2014, and February 2, 2013, according to the valuation
techniques we used to determine their fair values ($ in millions).
Fair Value Measurements Using Inputs Considered as
Fair Value at
February 1, 2014
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets
Cash and cash equivalents
Money market funds $ 53 $ 53 $ — $ —
Commercial paper 80 — 80 —
Treasury bills 263 263 — —
Short-term investments
Commercial paper 100 — 100 —
Other current assets
Foreign currency derivative instruments 2 — 2 —
Other assets
Auction rate securities 9 — — 9
Marketable securities that fund deferred compensation 96 96 — —
Liabilities
Accrued liabilities
Foreign currency derivative instruments 5 — 5 —