Note 9 - Fair Value Measurements

6 Months Ended

Aug. 03, 2024

Notes to Financial Statements

Fair Value Disclosures [Text Block]

9. Fair Value Measurements

Our financial assets and liabilities are recorded at fair value, using a three-level fair value hierarchy that prioritizes the inputs used to measure fair value.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

($ in millions)	As of August 3, 2024						As of July 29, 2023
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Available-for-sale security	$	—	$	6	$	—	$	—	$	6	$	—
Foreign exchange forward contracts		—		1		—		—		—		—
Cross-currency swap contract		—		12		—		—		2		—
Total assets	$	—	$	19	$	—	$	—	$	8	$	—
Liabilities
Contingent consideration	$	—	$	—	$	—	$	—	$	—	$	4
Foreign exchange forward contracts		—		1		—		—		2		—
Total liabilities	$	—	$	1	$	—	$	—	$	2	$	4

There were no transfers into or out of Level 1, Level 2, or Level 3 assets and liabilities for any of the periods presented.

Long-Term Debt

The fair value of long-term debt is determined by using model-derived valuations in which all significant inputs or significant value drivers are observable in active markets and, therefore, are classified as Level 2. The carrying value and estimated fair value of long-term debt were as follows:

	August 3,		July 29,
($ in millions)	2024		2023
Carrying value (1)	$	395	$	395
Fair value	$	343	$	312

⁽¹⁾ The carrying value of debt as of both  August 3, 2024 and July 29, 2023, included $5 million of issuer’s discount and costs.

The carrying values of cash and cash equivalents, and other current receivables and payables approximate their fair value.