Nordstrom, Inc. Notes to Consolidated Financial Statements Dollar and share amounts in millions except per share, per option and per unit amounts NOTE 9: FAIR VALUE MEASUREMENTS We disclose our financial assets and liabilities that are measured at fair value in our Consolidated Balance Sheets by level within the fair  value hierarchy as defined by applicable accounting standards: We did not have any financial assets or liabilities that were measured at fair value on a recurring basis as of January 31, 2015 or February 1,  2014.  Financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, accounts receivable and accounts  payable and approximate fair value due to their short-term nature. We estimate the fair value of long-term debt using quoted market prices of  the same or similar issues and, as such, this is considered a Level 2 fair value measurement. The following table summarizes the carrying  value and fair value estimate of our long-term debt, including current maturities: Level 1: Quoted market prices in active markets for identical assets or liabilities Level 2: Other observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs that cannot be corroborated by market data that reflect the reporting entity’s own   assumptions 1  The carrying value of long-term debt includes the remaining unamortized adjustment from our previous effective fair value hedge. We also measure certain non-financial assets at fair value on a nonrecurring basis, primarily goodwill and long-lived tangible and intangible  assets, in connection with periodic evaluations for potential impairment. See Note 1: Nature of Operations and Summary of Significant  Accounting Policies for additional information related to goodwill, intangible assets and long-lived assets. We recorded no material  impairment charges for these assets in 2014, 2013 and 2012. We estimate the fair value of goodwill and long-lived tangible and intangible  assets using primarily unobservable inputs and, as such, these are considered Level 3 fair value measurements. We lease the land or the land and buildings at many of our stores. Additionally, we lease office facilities, warehouses and equipment. Most of  these leases are classified as operating leases and they expire at various dates through 2080. The majority of our fixed, non-cancelable  lease terms are 15 to 30 years for Nordstrom full-line stores and 10 to 15 years for Nordstrom Rack stores. Many of our leases include  options that allow us to extend the lease term beyond the initial commitment period, subject to terms agreed to at lease inception. Most of our  leases also provide for payment of operating expenses, such as common area charges, real estate taxes and other executory costs, and  some leases require additional payments based on sales, referred to as “percentage rent.” Future minimum lease payments as of January 31, 2015 are as follows: NOTE 10: LEASES Fiscal year Capital leases Operating leases 2015 $2 $210 2016 2 231 2017 1 229 2018 1 227 2019 — 219 Thereafter — 1,202 Total minimum lease payments $6 $2,318 Less: amount representing interest (1) Present value of net minimum lease payments $5 January 31, 2015 February 1, 2014 Carrying value of long-term debt 1 $3,131 $3,113 Fair value of long-term debt 3,693 3,511 54