Note 8 - Fair Value Measurements
 3 Months Ended
Apr. 29, 2023
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

8. 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 April 29, 2023

  

As of April 30, 2022

 

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Level 1

  

Level 2

  

Level 3

  

Level 1

  

Level 2

  

Level 3

 

Assets

                        

Minority investment in common stock

 $—  $—  $—  $120  $—  $— 

Available-for-sale security

  —   6   —   —   6   — 

Foreign exchange forward contracts

  —   —   —   —   2   — 

Total assets

 $—  $6  $—  $120  $8  $— 

Liabilities

                        

Contingent consideration

 $—  $—  $4  $—  $—  $35 

Foreign exchange forward contracts

  —   1   —   —   —   — 

Total liabilities

 $—  $1  $4  $—  $—  $35 

 

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:

 

($ in millions)

 

April 29, 2023

  

April 30, 2022

 

Carrying value (1)

 $395  $394 

Fair value

 $339  $332 

 

(1)

The carrying value of debt as of April 29, 2023 and April 30, 2022 included $5 million and $6 million of issuer’s discount and costs, respectively.

 

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

 

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NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS