v3.26.1
Fair Value Measurements
 12 Months Ended
Jan. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  The authoritative guidance for fair value measurements establishes a three-level hierarchy, which encourages an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.  The three levels of the hierarchy are defined as follows:

•Level 1 - inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities

•Level 2 - inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly

•Level 3 - inputs to the valuation techniques that are unobservable for the assets or liabilities

Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The following table presents the Company’s financial assets and financial liabilities measured at fair value on a recurring basis.
Fair Value Measurements at
(In millions)ClassificationMeasurement LevelJanuary 30, 2026January 31, 2025
Available-for-sale securities:
U.S. Treasury securitiesShort-term investmentsLevel 1$195 $199 
Money market fundsShort-term investmentsLevel 181 91 
Corporate debt securitiesShort-term investmentsLevel 232 16 
Certificates of depositShort-term investmentsLevel 131 13 
Foreign government debt securitiesShort-term investmentsLevel 221 4 
Municipal obligationsShort-term investmentsLevel 210 — 
Commercial paperShort-term investmentsLevel 2— 49 
U.S. Treasury securitiesLong-term investmentsLevel 1211 150 
Corporate debt securitiesLong-term investmentsLevel 292 88 
Foreign government debt securitiesLong-term investmentsLevel 216 37 
Municipal obligationsLong-term investmentsLevel 2— 2 
Derivative instruments:
Fixed-to-floating interest rate swapsOther current liabilitiesLevel 2$15 $11 
Fixed-to-floating interest rate swapsOther liabilitiesLevel 2— 35 

There were no transfers between Levels 1, 2, or 3 during any of the periods presented.

When available, quoted prices were used to determine fair value.  When quoted prices in active markets were available, financial assets were classified within Level 1 of the fair value hierarchy.  When quoted prices in active markets were not available, fair values for financial assets and liabilities classified within Level 2 were determined using pricing models, and the inputs to those pricing models were based on observable market inputs.  The inputs to the pricing models were typically benchmark yields, reported trades, broker-dealer quotes, issuer spreads, and benchmark securities, among others.

In addition, the Company has previously received performance-based contingent consideration related to the fiscal 2022 sale of the Canadian retail business, which is classified as a Level 3 long-term investment. The Company determined the initial fair value for contingent consideration as of February 3, 2023, based on an income approach using an option pricing model, calculated using the significant unobservable inputs such as total equity value, volatility, and expected term. Subsequent measurements of fair value of the contingent consideration are based on an income approach, which requires certain assumptions considering operating performance of the business and a risk-adjusted discount rate.

The rollforward of the fair value of contingent consideration is as follows:
Years Ended
(In millions)January 30, 2026January 31, 2025
Beginning balance$— $— 
Change in fair value— 177 
Proceeds received— (177)
Ending balance$— $— 

Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis

For the fiscal years ended January 30, 2026, and January 31, 2025, the Company had no material measurements of assets and liabilities at fair value on a nonrecurring basis subsequent to their initial recognition.

Other Fair Value Disclosures

The Company’s financial assets and liabilities not measured at fair value on a recurring basis include cash and cash equivalents, accounts receivable, short-term borrowings, accounts payable, and long-term debt and are reflected in the financial statements at cost.  With the exception of long-term debt, cost approximates fair value for these items due to their short-term nature.  As further described in Note 9, certain long-term debt is associated with a fair value hedge, and the changes in fair value of the
hedged debt is included in the carrying value of long-term debt on the consolidated balance sheets. The fair values of the Company’s unsecured notes were estimated using quoted market prices.

Carrying amounts and the related estimated fair value of the Company’s long-term debt, excluding finance lease obligations and the 2025 Term Loan, are as follows:
January 30, 2026January 31, 2025
(In millions)Carrying AmountFair ValueCarrying AmountFair Value
Unsecured notes (Level 1)$37,530 $34,907 $35,011 $31,557