Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v3.21.2
Fair Value Measurements
6 Months Ended
Jul. 31, 2021
Fair Value By Fair Value Hierarchy Level Extensible List [Abstract]  
Fair Value Measurements

7.

Fair Value Measurements

The following table shows the Company's financial assets that are required to be measured at fair value on a recurring basis, by level within the hierarchy as defined by applicable accounting standards:

Level 1: Quoted prices in active markets for identical assets

Level 2: Significant observable inputs for the assets

Level 3: Significant unobservable inputs for the assets

 

 

 

July 31, 2021

 

 

August 1, 2020

 

 

 

 

 

 

 

Fair Value Measurements

 

 

 

 

 

 

Fair Value Measurements

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(millions)

 

Marketable equity and debt

   securities

 

$

46

 

 

$

39

 

 

$

7

 

 

$

 

 

$

143

 

 

$

32

 

 

$

111

 

 

$

 

 

Other financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, receivables, certain short-term investments and other assets, short-term debt, merchandise accounts payable, accounts payable and accrued liabilities and long-term debt. With the exception of long-term debt, the carrying amount of these financial instruments approximates fair value because of the short maturity of these instruments. The fair values of long-term debt, excluding capitalized leases, are generally estimated based on quoted market prices for identical or similar instruments, and are classified as Level 2 measurements within the hierarchy as defined by applicable accounting standards.

The following table shows the estimated fair value of the Company's long-term debt:

 

 

 

July 31, 2021

 

 

August 1, 2020

 

 

 

Notional

Amount

 

 

Carrying

Amount

 

 

Fair

Value

 

 

Notional

Amount

 

 

Carrying

Amount

 

 

Fair

Value

 

 

 

(millions)

 

Long-term debt

 

$

3,296

 

 

$

3,295

 

 

$

3,298

 

 

$

4,903

 

 

$

4,851

 

 

$

4,050

 

 

Nonfinancial Assets

The Company reviews the carrying amount of goodwill and intangible assets with indefinite lives 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.  For the Company's annual impairment assessment as of the end of fiscal May 2021, the Company elected to perform a qualitative impairment test on its goodwill and intangible assets with indefinite lives and concluded that it is more likely than not that the fair values exceeded the carrying values and therefore goodwill and intangible assets with indefinite lives were not impaired.