Note 2. Additional Financial Statement Information

Cash and Cash Equivalents and Short-Term Investments

Cash and cash equivalents and short-term investments consist of the following:



($ in millions)	February 1, 2014		February 2, 2013
Cash (1)	$	991	$	942
Bank certificates of deposit and time deposits	323		304
Money market funds	196		189
Domestic commercial paper	—		25
Cash equivalents	519		518
Cash and cash equivalents	$	1,510	$	1,460
Bank certificates of deposit and time deposits	$	—	$	50
Short-term investments	$	—	$	50

__________


(1)	Cash includes $64 million and $71 million of amounts in transit from banks for customer credit card and debit card transactions as of February 1, 2014 and February 2, 2013, respectively.

We did not record any impairment charges on our cash equivalents or short-term investments in fiscal 2013, 2012, or 2011.

Other Current Assets

Other current assets consist of the following:



($ in millions)	February 1, 2014		February 2, 2013
Accounts receivable	$	462	$	331
Current portion of deferred tax assets	179		220
Prepaid minimum rent and occupancy expenses	155		147
Prepaid income taxes	84		60
Derivative financial instruments	58		49
Prepaid catalog expenses	3		4
Other	51		53
Other current assets	$	992	$	864

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation and consist of the following:



($ in millions)	February 1, 2014			February 2, 2013
Leasehold improvements	$	3,211		$	3,131
Furniture and equipment	2,493			2,464
Software	1,173			1,078
Land, buildings, and building improvements	1,106			1,101
Construction-in-progress	176			136
Property and equipment, at cost	8,159			7,910
Less: Accumulated depreciation	(5,401		)	(5,291		)
Property and equipment, net of accumulated depreciation	$	2,758		$	2,619

Depreciation expense for property and equipment was $530 million, $554 million, and $586 million for fiscal 2013, 2012, and 2011, respectively.

Interest of $8 million, $6 million, and $4 million related to assets under construction was capitalized in fiscal 2013, 2012, and 2011, respectively.

We recorded a charge for the impairment of long-lived assets of $1 million, $8 million, and $16 million for fiscal 2013, 2012, and 2011, respectively, which is recorded in operating expenses in the Consolidated Statements of Income.

Other Long-Term Assets

Other long-term assets consist of the following:



($ in millions)	February 1, 2014		February 2, 2013
Long-term income tax-related assets	$	185	$	244
Goodwill	180		184
Trade names	92		92
Deferred compensation plan assets	37		27
Lease rights, key money, and favorable lease assets, net of accumulated amortization of $145 and $144	32		31
Restricted cash	14		11
Other indefinite-lived intangible assets	6		6
Derivative financial instruments	6		2
Intangible assets subject to amortization, net of accumulated amortization of $17 and $15	1		3
Other	108		119
Other long-term assets	$	661	$	719

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:



($ in millions)	February 1, 2014		February 2, 2013
Accrued compensation and benefits	$	327	$	369
Unredeemed gift cards, gift certificates, and credit vouchers, net of breakage	238		232
Short-term deferred rent and tenant allowances	93		93
Insurance liabilities	69		72
Accrued advertising	42		26
Credit card reward points and certificates liability	29		18
Sales return allowance	26		27
Derivative financial instruments	14		14
Short-term asset retirement obligations	8		6
Short-term lease loss reserve	—		5
Other	296		230
Accrued expenses and other current liabilities	$	1,142	$	1,092

The activity related to short-term asset retirement obligations includes adjustments to the asset retirement obligation balance and fluctuations in foreign currency exchange rates. The activity was not material for fiscal 2013 or 2012.

No other individual items accounted for greater than five percent of total current liabilities as of February 1, 2014 or February 2, 2013.

Lease Incentives and Other Long-Term Liabilities

Lease incentives and other long-term liabilities consist of the following:



($ in millions)	February 1, 2014		February 2, 2013
Long-term deferred rent, tenant allowances, and unfavorable lease liabilities	$	766	$	750
Long-term income tax-related liabilities	83		132
Long-term asset retirement obligations	59		49
Deferred compensation plan liabilities	37		27
Long-term lease loss reserve	1		1
Derivative financial instruments	1		—
Other	26		27
Lease incentives and other long-term liabilities	$	973	$	986

The activity related to long-term asset retirement obligations includes adjustments to the asset retirement obligation balance and fluctuations in foreign currency exchange rates. The activity was not material for fiscal 2013 or 2012.

Sales Return Allowance

A summary of activity in the sales return allowance account is as follows:



($ in millions)	February 1, 2014			February 2, 2013			January 28, 2012
Balance at beginning of fiscal year	$	27		$	21		$	22
Additions	896			845			720
Returns	(897		)	(839		)	(721		)
Balance at end of fiscal year	$	26		$	27		$	21