Fair Value Measurements

6 Months Ended

Aug. 01, 2020

Fair value measurements are reported in one of three levels reflecting the valuation techniques used to determine fair value.


Fair Value Measurements - Recurring Basis					Fair Value at
(millions)	Classification	Pricing Category	August 1, 2020			February 1, 2020		August 3, 2019
Assets
Short-term investments	Cash and Cash Equivalents	Level 1	$	6,370		$	1,810	$	796
Prepaid forward contracts	Other Current Assets	Level 1	26			23		20
Equity securities ^(a)	Other Current Assets	Level 1	27			39		80
Interest rate swaps	Other Noncurrent Assets	Level 2	239			137		108
Liabilities


Interest rate swaps	Other Noncurrent Liabilities	Level 2	12			—		—

^(a)Represents our investment in Casper Sleep Inc. common stock.


Significant Financial Instruments Not Measured at Fair Value ^(a) (millions)	August 1, 2020							February 1, 2020							August 3, 2019
			Carrying Amount		Fair Value			Carrying Amount		Fair Value			Carrying Amount		Fair Value
Long-term debt, including current portion ^(b)	$	12,384	$	15,457		$	9,992	$	11,864		$	10,244	$	11,635

^(a)The carrying amounts of certain other current assets, commercial paper, accounts payable, and certain accrued and other current liabilities approximate fair value due to their short-term nature.

^(b)The fair value of debt is generally measured using a discounted cash flow analysis based on current market interest rates for the same or similar types of financial instruments and would be classified as Level 2. These amounts exclude commercial paper, unamortized swap valuation adjustments, and lease liabilities.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details