Fair Value Measurements

12 Months Ended

Jan. 30, 2016

Fair Value Measurements [Abstract]

Fair Value Disclosures

Fair Value Measurements

The following table provides a summary of the principal value and fair value of long-term debt as of January 30, 2016 and January 31, 2015:

	January 30, 2016		January 31, 2015
	(in millions)
Principal Value	$	5,750	$	4,750
Fair Value (a)	6,209		5,305

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(a) The estimated fair value of the Company’s publicly traded debt is based on reported transaction prices which are considered Level 2 inputs in accordance with ASC Topic 820, Fair Value Measurements and Disclosure. The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange.

The following table provides a summary of assets and liabilities measured in the consolidated financial statements at fair value on a recurring basis as of January 30, 2016 and January 31, 2015:

	Level 1		Level 2		Level 3		Total
	(in millions)
As of January 30, 2016
Assets:
Cash and Cash Equivalents	$	2,548	$	—	$	—	$	2,548
Marketable Securities	22		—		—		22
Interest Rate Designated Fair Value Hedges	—		11		—		11
Cross-currency Cash Flow Hedges	—		27		—		27
As of January 31, 2015
Assets:
Cash and Cash Equivalents	$	1,681	$	—	$	—	$	1,681
Interest Rate Designated Fair Value Hedges	—		12		—		12
Cross-currency Cash Flow Hedges	—		21		—		21
Liabilities:
Lease Guarantees	—		—		1		1

The Company's Level 1 fair value measurements use unadjusted quoted prices in active markets for identical assets. In 2015, the Company invested in marketable equity securities. These securities are classified as Level 1 fair

value measurements as they are traded with sufficient frequency and volume to enable the Company to obtain pricing

information on an ongoing basis.

The Company’s Level 2 fair value measurements are measured using market approach valuation techniques. The primary inputs to these techniques include benchmark interest rates and foreign currency exchange rates, as applicable to the underlying instruments.

The Company’s Level 3 fair value measurements are measured using income approach valuation techniques. The primary inputs to these techniques include the guaranteed lease payments, discount rates, as well as the Company’s assessment of the risk of default on guaranteed leases.

Management believes that the carrying values of accounts receivable, accounts payable, accrued expenses and current debt approximate fair value because of their short maturity.

The following table provides a reconciliation of the Company’s lease guarantees measured at fair value on a recurring basis using unobservable inputs (Level 3) for 2015 and 2014:

	2015			2014
	(in millions)
Beginning Balance	$	1		$	1
Change in Estimated Fair Value Reported in Earnings	(1		)	—
Ending Balance	$	—		$	1

The Company’s lease guarantees include minimum rent and additional payments covering taxes, common area costs and certain other expenses and relate to leases that commenced prior to the disposition of certain businesses. The fair value of these lease guarantees is impacted by economic conditions, probability of rent obligation payments, period of obligation as well as the discount rate utilized. For additional information, see Note 15, “Commitments and Contingencies.”