Investments

Investments were comprised of the following ($ in millions):



	May 4, 2013		February 2, 2013		May 5, 2012
Equity and other investments
Debt securities (auction rate securities)	$	21	$	21	$	66
Marketable equity securities	3		27		3
Other investments	37		38		59
Total equity and other investments	$	61	$	86	$	128

Debt Securities

Our debt securities are comprised of auction rate securities (“ARS”). We classify our investments in ARS as available-for-sale and carry them at fair value. Due to persistent failed auctions and the uncertainty of when these investments could be liquidated at par, we have classified all of our investments in ARS as non-current assets within Equity and Other Investments in our Condensed Consolidated Balance Sheet as of May 4, 2013, February 2, 2013 and May 5, 2012. At May 4, 2013, our entire remaining ARS portfolio of six investments comprised primarily of student loan bonds with an aggregate par value of $23 million, was subject to failed auctions.

We sold $0 million of ARS at par during the first quarter of fiscal 2014. We do not intend to sell our remaining ARS until we can recover the full principal amount. In addition, we do not believe it is more likely than not that we would be required to sell our remaining ARS until we can recover the full principal amount based on our other sources of liquidity. We evaluated our entire ARS portfolio of $23 million (par value) for impairment at May 4, 2013, based primarily on the methodology described in Note 4, Fair Value Measurements. As a result of this review, we determined that the fair value of our ARS portfolio at May 4, 2013 was $21 million. Accordingly, a $2 million pre-tax unrealized loss is recognized in accumulated other comprehensive income.

We had $1 million, $1 million and $3 million of unrealized loss, net of tax, recorded in accumulated other comprehensive income at May 4, 2013, February 2, 2013 and May 5, 2012, respectively, related to our investments in debt securities.

Marketable Equity Securities

We invest in marketable equity securities and classify them as available-for-sale. Investments in marketable equity securities are classified as non-current assets within Equity and Other Investments in our Condensed Consolidated Balance Sheets and are reported at fair value based on quoted market prices. Our investments in marketable equity securities were $3 million, $27 million and $3 million at May 4, 2013, February 2, 2013 and May 5, 2012, respectively.

We review all investments for other-than-temporary impairment at least quarterly or as indicators of impairment exist. Indicators of impairment include the duration and severity of the decline in fair value, as well as the intent and ability to hold the investment to allow for a recovery in the market value of the investment. In addition, we consider qualitative factors that include, but are not limited to: (i) the financial condition and business plans of the investee, including its future earnings potential, (ii) the investee’s credit rating, and (iii) the current and expected market and industry conditions in which the investee operates. If a decline in the fair value of an investment is deemed by management to be other-than-temporary, the cost basis of the investment is written down to fair value, and the amount of the write-down is included in net earnings.

All unrealized holding gains or losses related to our investments in marketable equity securities are reflected net of tax in accumulated other comprehensive income in shareholders’ equity. The total unrealized gain, net of tax, included in accumulated other comprehensive income was $3 million, $3 million and $0 million at May 4, 2013, February 2, 2013 and May 5, 2012, respectively.

Other Investments

The aggregate carrying values of investments accounted for using either the cost method or the equity method at May 4, 2013, February 2, 2013 and May 5, 2012 were $37 million, $38 million and $59 million, respectively.