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Fair Value Measurements
 9 Months Ended
Apr. 28, 2013
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements
The company is required to 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 that reflect the reporting entity’s own assumptions.
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, the company uses unadjusted quoted market prices to measure the fair value and classifies such items as Level 1. If quoted market prices are not available, the company bases 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 table presents the company’s financial assets and liabilities that are measured at fair value on a recurring basis as of April 28, 2013, and July 29, 2012, consistent with the fair value hierarchy:
 
 
Fair Value
as of
April 28,
2013
 
Fair Value Measurements at
April 28, 2013 Using
Fair Value Hierarchy
 
Fair Value
as of
July 29,
2012
 
Fair Value Measurements at
July 29, 2012 Using
Fair Value Hierarchy
 
Level 1
 
Level 2
 
Level 3
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps(1)
$
4

 
$
—

 
$
4

 
$
—

 
$
13

 
$
—

 
$
13

 
$
—

Forward starting interest rate swaps(1)
3

 
—

 
3

 
—

 
2

 
—

 
2

 
—

Foreign exchange forward contracts(2)
—

 
—

 
—

 
—

 
2

 
—

 
2

 
—

Cross-currency swap contracts(3)
4

 
—

 
4

 
—

 
19

 
—

 
19

 
—

Commodity derivative contracts(4)
3

 
2

 
1

 
—

 
8

 
5

 
3

 
—

Deferred compensation derivative contracts(5)
1

 
—

 
1

 
—

 
1

 
—

 
1

 
—

Total assets at fair value
$
15

 
$
2

 
$
13

 
$
—

 
$
45

 
$
5

 
$
40

 
$
—


 
Fair Value
as of
April 28,
2013
 
Fair Value Measurements at
April 28, 2013 Using
Fair Value Hierarchy
 
Fair Value
as of
July 29,
2012
 
Fair Value Measurements at
July 29, 2012 Using
Fair Value Hierarchy
 
Level 1
 
Level 2
 
Level 3
 
Level 1
 
Level 2
 
Level 3
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forward contracts(2)
$
1

 
$
—

 
$
1

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Cross-currency swap contracts(3)
72

 
—

 
72

 
—

 
79

 
—

 
79

 
—

Commodity derivative contracts(4)
6

 
4

 
2

 
—

 
4

 
2

 
2

 
—

Deferred compensation obligation(6)
119

 
119

 
—

 
—

 
109

 
109

 
—

 
—

Total liabilities at fair value
$
198

 
$
123

 
$
75

 
$
—

 
$
192

 
$
111

 
$
81

 
$
—


___________________________________ 
(1)
Based on LIBOR swap rates.
(2)
Based on observable market transactions of spot currency rates and forward rates.
(3)
Based on observable local benchmarks for currency and interest rates.
(4)
Based on quoted futures exchanges and on observable prices of futures and options transactions in the marketplace.
(5)
Based on LIBOR and equity index swap rates.
(6)
Based on the fair value of the participants’ investments.

Fair Value of Financial Instruments
The carrying value of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings, excluding the current portion of long-term debt, approximate fair value. Cash equivalents of $225 at April 28, 2013 and $80 at July 29, 2012 represent fair value as these highly liquid investments have an original maturity of three months or less. Fair value of cash equivalents is based on Level 2 inputs. The fair value of long-term debt, including the current portion of long-term debt in Short-term borrowings, was $3,453 at April 28, 2013 and $2,663 at July 29, 2012. The carrying value was $3,250 at April 28, 2013 and $2,408 at July 29, 2012. 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.