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Fair Value Measurements
 6 Months Ended
Jan. 26, 2025
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 as of January 26, 2025, and July 28, 2024, consistent with the fair value hierarchy:
 
Fair Value
as of
January 26, 2025
Fair Value Measurements at
January 26, 2025 Using
Fair Value Hierarchy
Fair Value
as of
July 28, 2024
Fair Value Measurements at
July 28, 2024 Using
Fair Value Hierarchy
(Millions)Level 1Level 2Level 3Level 1Level 2Level 3
Assets
Foreign exchange contracts(1)
$3 $— $3 $— $2 $— $2 $— 
Commodity derivative contracts(2)
12 1 8 3 6 — 1 5 
Deferred compensation derivative contracts(3)
4 — 4 — 3 — 3 — 
Deferred compensation investments(4)
1 1 — — 1 1 — — 
Total assets at fair value$20 $2 $15 $3 $12 $1 $6 $5 
 
Fair Value
as of
January 26, 2025
Fair Value Measurements at
January 26, 2025 Using
Fair Value Hierarchy
Fair Value
as of
July 28, 2024
Fair Value Measurements at
July 28, 2024 Using
Fair Value Hierarchy
(Millions)Level 1Level 2Level 3Level 1Level 2Level 3
Liabilities
Foreign exchange contracts(1)
$1 $— $1 $— $— $— $— $— 
Commodity derivative contracts(2)
5 — 4 1 16 1 15 — 
Deferred compensation obligation(4)
110 110 — — 101 101 — — 
Total liabilities at fair value$116 $110 $5 $1 $117 $102 $15 $— 
___________________________________ 
(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 equity index swap rates.
(4)Based on the fair value of the participants’ investments.
The following table summarizes the changes in fair value of Level 3 assets and liabilities:
Six Months Ended
(Millions)January 26, 2025January 28, 2024
Fair value at beginning of year$5 $2 
Gains (losses)2 12 
Settlements(5)(5)
Fair value at end of quarter$2 $9 
Items Measured at Fair Value on a Nonrecurring Basis
In addition to assets and liabilities that are measured at fair value on a recurring basis, we are also required to measure certain items at fair value on a nonrecurring basis.
In the second quarter of 2025, we performed interim impairment assessments on certain trademarks in our Snacks segment. See also Note 6 for additional information on the impairment charges.
Fair value was determined based on unobservable Level 3 inputs. The fair value of trademarks was determined based on discounted cash flow analysis that involves significant management assumptions such as expected revenue growth rates, assumed royalty rates and weighted-average costs of capital.
The following table presents fair value measurements of the trademarks:
December 2025
(Millions)Impairment ChargesFair Value
Allied brands$15 $28 
Late July$11 $47 
Fair Value of Financial Instruments
The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate fair value.
There were cash equivalents of $170 million at January 26, 2025 and $25 million at July 28, 2024. Cash equivalents 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 short- and long-term debt was $7.291 billion at January 26, 2025, and $6.866 billion at July 28, 2024. The carrying value was $7.675 billion at January 26, 2025, and $7.184 billion at July 28, 2024. 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.