Fair Value Measurements

6 Months Ended

Jan. 29, 2012

Fair Value, by Balance Sheet Grouping, Methodology and Assumptions [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.

The following table presents the company’s financial assets and liabilities that are measured at fair value on a recurring basis as of January 29, 2012, and July 31, 2011, consistent with the fair value hierarchy:

	Fair Value as of January 29, 2012		Fair Value Measurements at January 29, 2012 Using Fair Value Hierarchy						Fair Value as of July 31, 2011		Fair Value Measurements at July 31, 2011 Using Fair Value Hierarchy
			Level 1		Level 2		Level 3				Level 1		Level 2		Level 3
Assets
Interest rate swaps(1)	$	23	$	—	$	23	$	—	$	33	$	—	$	33	$	—
Foreign exchange forward contracts(2)	3		—		3		—		—		—		—		—
Cross-currency swap contracts(3)	18		—		18		—		1		—		1		—
Deferred compensation derivative contracts(4)	1		—		1		—		—		—		—		—
Commodity derivative contracts(5)	1		1		—		—		3		3		—		—
Total assets at fair value	$	46	$	1	$	45	$	—	$	37	$	3	$	34	$	—

	Fair Value as of January 29, 2012		Fair Value Measurements at January 29, 2012 Using Fair Value Hierarchy						Fair Value as of July 31, 2011		Fair Value Measurements at July 31, 2011 Using Fair Value Hierarchy
			Level 1		Level 2		Level 3				Level 1		Level 2		Level 3
Liabilities
Foreign exchange forward contracts(2)	$	1	$	—	$	1	$	—	$	9	$	—	$	9	$	—
Cross-currency swap contracts(3)	94		—		94		—		129		—		129		—
Deferred compensation derivative contracts(4)	3		—		3		—		3		—		3		—
Commodity derivative contracts(5)	3		3		—		—		2		2		—		—
Deferred compensation obligation(6)	153		101		52		—		144		97		47		—
Total liabilities at fair value	$	254	$	104	$	150	$	—	$	287	$	99	$	188	$	—

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(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 LIBOR and equity index swap rates.

(5) Based on quoted futures exchanges.

(6) Based on the fair value of the participants’ investments.