Fair Value Measurements

3 Months Ended

Jan. 01, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 4: Fair Value Measurements

Assets and Liabilities Measured at Fair Value on a Recurring Basis (in millions):

			Fair Value Measurements at Reporting Date Using
	Balance at January 1, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
Assets:
Short-term investments:
Available-for-sale securities
Agency obligations	$	10.0	$	0.0	$	10.0	$	0.0
Commercial paper		20.0		0.0		20.0		0.0
Corporate debt securities		54.8		0.0		54.8		0.0
Government treasury securities		496.0		496.0		0.0		0.0
Certificates of deposit		70.4		0.0		70.4		0.0
Total available-for-sale securities		651.2		496.0		155.2		0.0
Trading securities		52.4		52.4		0.0		0.0
Total short-term investments		703.6		548.4		155.2		0.0
Long-term investments:
Agency obligations		4.0		0.0		4.0		0.0
Corporate debt securities		84.4		0.0		84.4		0.0
State and local government obligations		28.1		0.0		0.0		28.1
Certificates of deposit		29.6		0.0		29.6		0.0
Total long-term investments		146.1		0.0		118.0		28.1
Total	$	849.7	$	548.4	$	273.2	$	28.1
Liabilities:
Derivatives	$	29.6	$	0.0	$	29.6	$	0.0

			Fair Value Measurements at Reporting Date Using
	Balance at October 2, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Short-term investments:
Available-for-sale securities
Agency obligations	$	20.0	$	0.0	$	20.0	$	0.0
Commercial paper		87.0		0.0		87.0		0.0
Corporate debt securities		78.0		0.0		78.0		0.0
Government treasury securities		606.0		606.0		0.0		0.0
Certificates of deposit		64.0		0.0		64.0		0.0
Total available-for-sale securities		855.0		606.0		249.0		0.0
Trading securities		47.6		47.6		0.0		0.0
Total short-term investments		902.6		653.6		249.0		0.0
Long-term investments:
Corporate debt securities		67.0		0.0		67.0		0.0
State and local government obligations		28.0		0.0		0.0		28.0
Certificates of deposit		12.0		0.0		12.0		0.0
Total long-term investments		107.0		0.0		79.0		28.0
Total	$	1,009.6	$	653.6	$	328.0	$	28.0
Liabilities:
Derivatives	$	31.5	$	0.0	$	31.5	$	0.0

Gross unrealized holding gains and losses were not material at January 1, 2012 and October 2, 2011.

Changes in Level 3 Instruments Measured at Fair Value on a Recurring Basis

Financial instruments measured using level 3 inputs described above are comprised entirely of our auction rate securities ("ARS"). No transfers among the levels within the fair value hierarchy occurred during the first quarter of fiscal 2012.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (in millions)

Assets and liabilities recognized or disclosed at fair value in the financial statements on a nonrecurring basis include items such as property, plant and equipment, goodwill and other intangible assets, equity and cost method investments, and other assets. These assets are measured at fair value if determined to be impaired.

During the quarters ended January 1, 2012 and January 2, 2011, we recognized fair market value adjustments with a charge to earnings for these assets as follows:

		Value before		Value before		Value before
	Quarter Ended Jan 1, 2012
	Carrying Value before adjustment		Fair value adjustment		Carrying value after adjustment
Property, plant and equipment (1)	$	0.5	$	0.3	$	0.2

		Value before		Value before			Value before
	Quarter Ended Jan 2, 2011
	Carrying Value before adjustment		Fair value adjustment			Carrying value after adjustment
Property, plant and equipment (1)	$	1.1	($	0.9	)	$	0.2
Other assets (2)	$	24.2	($	14.0	)	$	10.2

(1) These assets primarily consist of leasehold improvements in underperforming stores. The fair value was determined using a discounted cash flow model based on expected future store revenues and operating costs, using internal projections. The resulting impairment charge was included in store operating expenses.

(2) The fair value was determined using a discounted cash flow model based on future expected revenues and operating costs, using internal projections. The resulting impairment charge was included in other operating expenses.

Fair Value of Other Financial Instruments

The carrying value of cash and cash equivalents approximates fair value because of the short-term nature of those instruments. The estimated fair value of the $550 million of 6.25% Senior Notes was approximately $662 million and $648 million as of January 1, 2012 and October 2, 2011, respectively.