v3.25.4
Fair Value Measurements
 6 Months Ended
Feb. 01, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
We categorize financial assets and liabilities based on the following fair value hierarchy:
•Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
•Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with observable market data.
•Level 3: Unobservable inputs, which are valued based on our estimates of assumptions that market participants would use in pricing the asset or liability.
Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. When available, we use unadjusted quoted market prices to measure the fair value and classify such items as Level 1. If quoted market prices are not available, we base fair value upon internally developed models that use current market-based or independently sourced market parameters such as interest rates and currency rates. Included in the fair value of derivative instruments is an adjustment for credit and nonperformance risk.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present our financial assets and liabilities that are measured at fair value on a recurring basis consistent with the fair value hierarchy:
 
Fair Value
as of
February 1, 2026
Fair Value Measurements at
February 1, 2026 Using
Fair Value Hierarchy
Fair Value
as of
August 3, 2025
Fair Value Measurements at
August 3, 2025 Using
Fair Value Hierarchy
(Millions)Level 1Level 2Level 3Level 1Level 2Level 3
Assets
Foreign exchange contracts(1)
$2 $— $2 $— $2 $— $2 $— 
Commodity derivative contracts(2)
23 — 13 10 12 1 8 3 
Deferred compensation derivative contracts(3)
3 — 3 — 1 — 1 — 
Deferred compensation investments(4)
1 1 — — 1 1 — — 
Total assets at fair value$29 $1 $18 $10 $16 $2 $11 $3 
 
Fair Value
as of
February 1, 2026
Fair Value Measurements at
February 1, 2026 Using
Fair Value Hierarchy
Fair Value
as of
August 3, 2025
Fair Value Measurements at
August 3, 2025 Using
Fair Value Hierarchy
(Millions)Level 1Level 2Level 3Level 1Level 2Level 3
Liabilities
Foreign exchange contracts(1)
$3 $— $3 $— $3 $— $3 $— 
Commodity derivative contracts(2)
8 2 4 2 11 — 7 4 
Deferred compensation obligation(4)
113 113 — — 102 102 — — 
Fixed-to-floating interest rate swaps(5)
6 — 6 — — — — — 
Total liabilities at fair value$130 $115 $13 $2 $116 $102 $10 $4 
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(1)Based on observable market transactions of spot currency rates and forward rates.
(2)Level 1 and 2 are based on quoted futures exchanges and on observable prices of futures and options transactions in the marketplace. Level 3 is based on unobservable inputs in which there is little or no market data, which requires management’s own assumptions within an internally developed model.
(3)Based on observable equity and fixed income index swap rates.
(4)Based on the fair value of the participants’ investments.
(5)Based on observable SOFR swap rates.
The following table summarizes the changes in fair value of Level 3 assets and liabilities:
Six Months Ended
(Millions)February 1, 2026January 26, 2025
Fair value at beginning of year$(1)$5 
Gains (losses)5 2 
Settlements4 (5)
Fair value at end of quarter$8 $2 
Fair Value of Financial Instruments
The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate fair value. Cash equivalents represent fair value as these highly liquid investments have an original maturity of three months or less. There were $83 million of cash equivalents with fair value based on Level 2 inputs at February 1, 2026. There were no cash equivalents with fair value based on Level 2 inputs at August 3, 2025.
The fair value of short- and long-term debt was $6.751 billion at February 1, 2026, and $6.545 billion at August 3, 2025. The carrying value was $7.075 billion at February 1, 2026, and $6.857 billion at August 3, 2025. The fair value of long-term debt is principally estimated using Level 2 inputs based on quoted market prices or pricing models using current market rates.