DEBT OBLIGATIONS

4 Months Ended

May 21, 2016

DEBT OBLIGATIONS

DEBT OBLIGATIONS

3.DEBT OBLIGATIONS

Long-term debt consists of:

	May 21,			January 30,
	2016			2016
1.14% to 8.00% Senior notes due through 2043	$	9,830		$	9,826
5.00% to 12.75% Mortgages due in varying amounts through 2027	56			58
0.64% to 0.66% Commercial paper due through May 2016	1,246			990
Other	502			522
Total debt, excluding capital leases and financing obligations	11,634			11,396
Less current portion	(2,626		)	(2,318		)
Total long-term debt, excluding capital leases and financing obligations	$	9,008		$	9,078

The fair value of the Company’s long-term debt, including current maturities, was estimated based on the quoted market prices for the same or similar issues adjusted for illiquidity based on available market evidence.  If quoted market prices were not available, the fair value was based upon the net present value of the future cash flow using the forward interest rate yield curve in effect at May 21, 2016 and January 30, 2016.  At May 21, 2016, the fair value of total debt was $12,530 compared to a carrying value of $11,634.  At January 30, 2016, the fair value of total debt was $12,344 compared to a carrying value of $11,396.

In anticipation of future debt refinancing in fiscal years 2016, 2017 and 2018, the Company, in the first quarter of 2016, entered into additional forward-starting interest rate swap agreements with an aggregate notional amount totaling $1,300.  After entering into these additional forward-starting interest rate swaps, the Company has a total of $1,700 notional amount of forward-starting interest rate swaps outstanding.  The forward-starting interest rate swaps entered into in the first quarter of 2016 were designated as cash-flow hedges as defined by GAAP.