text: **Item 7A. Quantitative and Qualitative Disclosures About Market Risk.**
  Dollars in millions 
  
  **INTEREST RATE RISK**
  We are exposed to interest rate risk primarily from changes in short-term interest rates. As of January 31, 2015, we had cash and cash 
  equivalents of $827, which generate interest income at variable rates, and gross credit card receivables of $2,284, which generate finance 
  charge income at a combination of fixed and variable rates. Interest rate fluctuations can affect our interest income, credit card revenues and 
  interest expense. See Note 3: Accounts Receivable in Item 8: Financial Statements and Supplementary Data for additional information. 
  
  We use sensitivity analyses to measure and assess our interest rate risk exposure. For purposes of presenting the potential earnings effect 
  of a reasonably possible hypothetical change in interest rates from our reporting date, we utilized two sensitivity scenarios: (i) linear growth of 
  approximately 225 basis points over the year and (ii) linear decline of approximately 15 basis points over the year, due to the fact that current 
  interest rates are near historically low levels. Other key parameters and assumptions in our sensitivity analyses include the average cash and 
  cash equivalents balance, average credit card receivables balance and no new floating rate debt. The first hypothetical scenario would result 
  in an approximate $15 increase in future earnings, while the second hypothetical scenario would not have a material effect on future 
  earnings. 