NOTE 3: Investments
The amortized costs, gross unrealized holding gains and losses, and fair values of the Company’s investment securities classified as available-for-sale at January 31, 2014 and February 1, 2013 are as follows:
|
| | | | | | | | | | | | | | | |
| January 31, 2014 |
| Amortized |
| | Gross Unrealized |
| | Gross Unrealized |
| | Fair |
|
(In millions) | Costs |
| | Gains |
| | Losses |
| | Values |
|
Money market funds | $ | 128 |
| | $ | — |
| | $ | — |
| | $ | 128 |
|
Certificates of deposit | 21 |
| | — |
| | — |
| | 21 |
|
Municipal obligations | 18 |
| | — |
| | — |
| | 18 |
|
Municipal floating rate obligations | 18 |
| | — |
| | — |
| | 18 |
|
Classified as short-term | 185 |
| | — |
| | — |
| | 185 |
|
Municipal floating rate obligations | 265 |
| | — |
| | — |
| | 265 |
|
Municipal obligations | 14 |
| | — |
| | — |
| | 14 |
|
Classified as long-term | 279 |
| | — |
| | — |
| | 279 |
|
Total | $ | 464 |
| | $ | — |
| | $ | — |
| | $ | 464 |
|
|
| | | | | | | | | | | | | | | |
| February 1, 2013 |
| Amortized |
| | Gross Unrealized |
| | Gross Unrealized |
| | Fair |
|
(In millions) | Costs |
| | Gains |
| | Losses |
| | Values |
|
Money market funds | $ | 49 |
| | $ | — |
| | $ | — |
| | $ | 49 |
|
Municipal obligations | 56 |
| | — |
| | — |
| | 56 |
|
Municipal floating rate obligations | 14 |
| | — |
| | — |
| | 14 |
|
Other | 6 |
| | — |
| | — |
| | 6 |
|
Classified as short-term | 125 |
| | — |
| | — |
| | 125 |
|
Municipal floating rate obligations | 230 |
| | — |
| | — |
| | 230 |
|
Municipal obligations | 40 |
| | 1 |
| | — |
| | 41 |
|
Classified as long-term | 270 |
| | 1 |
| | — |
| | 271 |
|
Total | $ | 395 |
| | $ | 1 |
| | $ | — |
| | $ | 396 |
|
The proceeds from sales of available-for-sale securities were $276 million, $1.1 billion and $1.3 billion for 2013, 2012 and 2011, respectively. Gross realized gains and losses on the sale of available-for-sale securities were not significant for any of the periods presented. The investments classified as long-term at January 31, 2014, will mature in one to 38 years, based on stated maturity dates.
The Company elected the fair value option for certain investments previously maintained in conjunction with certain employee benefit plans. These investments were reported as trading securities, which were included in short-term investments. The Company had no purchases or sales of these investments in 2013, and none outstanding at January 31, 2014. In 2012, the Company sold its full portfolio of these investments for proceeds of $29 million and recognized gains of $2 million. Net unrealized gains/losses for 2011 were not significant. Unrealized gains and losses on trading securities were included in SG&A expense. Cash flows from purchases, sales and maturities of trading securities are included in cash flows from investing activities in the consolidated statements of cash flows based on the nature and purpose for which the securities were acquired.
Short-term and long-term investments include restricted balances pledged as collateral primarily for the Company’s extended protection plan program. At February 1, 2013, short-term and long-term investments also included restricted balances pledged as collateral for a portion of the Company’s casualty insurance liability. Restricted balances included in short-term investments were $162 million at January 31, 2014 and $123 million at February 1, 2013. Restricted balances included in long-term investments were $268 million at January 31, 2014 and $263 million at February 1, 2013.
