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Equity Investments and Other
12 Months Ended
Jan. 30, 2016
Equity Method Investment, Summarized Financial Information [Abstract]  
Equity Investments and Other
Equity Investments and Other
Third-party Apparel Sourcing Business
In 2011, the Company divested a majority ownership interest in its third-party apparel sourcing business to affiliates of Sycamore Partners. In 2015, the Company divested its remaining ownership interest in its third-party apparel sourcing business to Sycamore Partners. The Company received cash proceeds of $85 million and recognized a pre-tax gain of $78 million (after-tax gain of $69 million). The gain is included in Other Income in the 2015 Consolidated Statement of Income and the cash proceeds are included in Proceeds from Divestiture of the Third-party Apparel Sourcing Business within the Investing Activities section of the 2015 Consolidated Statement of Cash Flows.
In 2013 and 2014, the Company received $64 million and $2 million, respectively, in dividends from the third-party apparel sourcing business while accounted for under the equity method of accounting. These dividends reduced the Company's carrying value in the investment. In 2013, $46 million is included in Return of Capital from Third-party Apparel Sourcing Business Investment within the Investing Activities section of the 2013 Consolidated Statement of Cash Flows, and $18 million is included in Other Assets and Liabilities within the Operating Activities section of the 2013 Consolidated Statement of Cash Flows. In 2014, $2 million is included in Other Assets and Liabilities within the Operating Activities section of the 2014 Consolidated Statement of Cash Flows.
The Company's carrying value for this investment was $8 million as of January 31, 2015 and is included in Other Assets on the 2014 Consolidated Balance Sheet. The Company's share of net income (loss) from this investment is included in Other Income on the 2013 and 2014 Consolidated Statements of Income.
Easton Investments
The Company has land and other investments in Easton, a 1,300 acre planned community in Columbus, Ohio that integrates office, hotel, retail, residential and recreational space. These investments totaled $86 million as of January 30, 2016 and $101 million as of January 31, 2015 and are recorded in Other Assets on the Consolidated Balance Sheets.
Included in the Company’s Easton investments is an equity interest in Easton Town Center, LLC (“ETC”), an entity that owns and has developed a commercial entertainment and shopping center. The Company’s investment in ETC is accounted for using the equity method of accounting. The Company has a majority financial interest in ETC, but another unaffiliated member manages ETC. Certain significant decisions regarding ETC require the consent of unaffiliated members in addition to the Company.
In 2015, ETC entered into an interest rate swap with cash settlement due in February 2017. The Company provided a guarantee of payment to the counterparty for amounts owed by ETC, if any, upon settlement if ETC is unable to pay. The Company's estimated maximum potential loss from this guarantee is $77 million, which was determined primarily based upon the current interest rate and estimated fluctuations in future interest rates, developed using historical fluctuations in interest rates. The Company had no liability recorded with respect to this guarantee obligation as we concluded that payment under this guarantee was not probable as of January 30, 2016.
Also included in the Company's Easton investments is an equity interest in Easton Gateway, LLC ("EG"), an entity that owns and is developing a commercial shopping center in the Easton community. The Company’s investment in EG is accounted for using the equity method of accounting. The Company has a majority financial interest in EG, but another unaffiliated member manages the activities that most significantly impact the economic performance of EG including leasing, tenant relationships and maintenance of the center. Certain significant decisions regarding EG require the consent of the unaffiliated member in addition to the Company.