XML 47 R11.htm IDEA: XBRL DOCUMENT
v3.2.0.727

Fair Value Measurements | 6 Months Ended
--- | ---
Aug. 01, 2015
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements There were no purchases, sales, issuances, or settlements related to recurring level 3 measurements during the thirteen and twenty-six weeks ended August 1, 2015 or August 2, 2014. There were no transfers of financial assets or liabilities into or out of level 1 and level 2 during the thirteen and twenty-six weeks ended August 1, 2015 or August 2, 2014. Financial Assets and Liabilities Financial assets and liabilities measured at fair value on a recurring basis and cash equivalents are as follows:
|  |  | Fair Value Measurements at Reporting Date Using
($ in millions) | August 1, 2015 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |
Cash equivalents | $ | 239 |  |  | $ | 96 |  |  | $ | 143 |  |  | $ | — |
Derivative financial instruments | 141 |  |  | — |  |  | 141 |  |  | — |
Deferred compensation plan assets | 46 |  |  | 46 |  |  | — |  |  | — |
Total | $ | 426 |  |  | $ | 142 |  |  | $ | 284 |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |
Derivative financial instruments | $ | 8 |  |  | $ | — |  |  | $ | 8 |  |  | $ | — |
|  |  | Fair Value Measurements at Reporting Date Using
($ in millions) | January 31, 2015 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |
Cash equivalents | $ | 429 |  |  | $ | 88 |  |  | $ | 341 |  |  | $ | — |
Derivative financial instruments | 157 |  |  | — |  |  | 157 |  |  | — |
Deferred compensation plan assets | 40 |  |  | 40 |  |  | — |  |  | — |
Total | $ | 626 |  |  | $ | 128 |  |  | $ | 498 |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |
Derivative financial instruments | $ | 1 |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |
|  |  | Fair Value Measurements at Reporting Date Using
($ in millions) | August 2, 2014 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |
Cash equivalents | $ | 426 |  |  | $ | 157 |  |  | $ | 269 |  |  | $ | — |
Derivative financial instruments | 41 |  |  | — |  |  | 41 |  |  | — |
Deferred compensation plan assets | 44 |  |  | 44 |  |  | — |  |  | — |
Total | $ | 511 |  |  | $ | 201 |  |  | $ | 310 |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |
Derivative financial instruments | $ | 16 |  |  | $ | — |  |  | $ | 16 |  |  | $ | — |
We have highly liquid investments classified as cash equivalents, which are placed primarily in money market funds, time deposits, and commercial paper. These investments are classified as held-to-maturity based on our positive intent and ability to hold the securities to maturity. We value these investments at their original purchase prices plus interest that has accrued at the stated rate. Derivative financial instruments primarily include foreign exchange forward contracts. The principal currencies hedged against changes in the U.S. dollar are British pounds, Canadian dollars, Euro, and Japanese yen. The fair value of the Company’s derivative financial instruments is determined using pricing models based on current market rates. Derivative financial instruments in an asset position are recorded in other current assets or other long-term assets in the Condensed Consolidated Balance Sheets. Derivative financial instruments in a liability position are recorded in accrued expenses and other current liabilities or lease incentives and other long-term liabilities in the Condensed Consolidated Balance Sheets. We maintain the Gap Inc. Deferred Compensation Plan (“DCP”), which allows eligible employees to defer compensation up to a maximum amount. Plan investments are recorded at market value and are designated for the DCP. The fair value of the Company’s DCP assets is determined based on quoted market prices, and the assets are recorded in other long-term assets in the Condensed Consolidated Balance Sheets. Nonfinancial Assets We review the carrying amount of goodwill and other indefinite-lived intangible assets for impairment annually and whenever events or changes in circumstances indicate that it is more likely than not that the carrying amount may not be recoverable. There were no material impairment charges recorded for goodwill or other indefinite-lived intangible assets for the thirteen and twenty-six weeks ended August 1, 2015 or August 2, 2014. We review the carrying amount of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In June 2015, the Company announced a series of strategic actions to position Gap brand for improved business performance in the future, including its plan to close about 175 Gap brand specialty stores in North America and a limited number of European stores over the next few years. As a result, we reviewed the global Gap brand specialty fleet for impairment during the thirteen weeks ended August 1, 2015. For the thirteen weeks ended August 1, 2015, we recorded a charge for the impairment of long-lived assets of $37 million, primarily related to Gap brand. The amount was recorded in operating expenses in the Condensed Consolidated Statement of Income. The impairment charge reduced the then carrying amount of the applicable long-lived assets of $43 million to their fair value of $6 million during the thirteen weeks ended August 1, 2015. The fair value of the long-lived assets was determined using level 3 inputs and based on discounted future cash flows of the asset or asset group using a discount rate commensurate with the risk. The asset group is defined as the lowest level for which identifiable cash flows are available and largely independent of the cash flows of other groups of assets, which for our retail stores is primarily at the store level. There were no material impairment charges recorded for other long-lived assets for the thirteen and twenty-six weeks ended August 2, 2014.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 + Details
Name: | us-gaap_FairValueMeasurementInputsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration