Fair Value Measurements

6 Months Ended

Jul. 31, 2011

Fair Value Measurements

Fair Value Measurements

Note 7. Fair Value Measurements

The Company records and discloses certain financial and non-financial assets and liabilities at their fair value. The fair value of an asset is the price at which the asset could be sold in an ordinary transaction between unrelated, knowledgeable and willing parties able to engage in the transaction. A liability's fair value is defined as the amount that would be paid to transfer the liability to a new obligor in a transaction between such parties, not the amount that would be paid to settle the liability with the creditor.

Assets and liabilities recorded at fair value are measured using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:

• Level 1 - observable inputs such as quoted prices in active markets;

• Level 2 - inputs other than quoted prices in active markets that are either directly or indirectly observable; and

• Level 3 - unobservable inputs in which little or no market data exists, therefore requiring the Company to develop its own                 assumptions.

The disclosure of fair value of certain financial assets and liabilities that are recorded at cost is as follows:

Cash and cash equivalents: The carrying value approximates fair value due to the short maturity of these instruments.

Short-term debt: The carrying value approximates fair value due to the short maturity of these instruments.

Long-term debt: The fair value is based on the Company's current incremental borrowing rate for similar types of borrowing arrangements or, where applicable, quoted market prices. The carrying value and fair value of the Company's long-term debt as of July 31, 2011 and January 31, 2011 are as follows:

		Carrying Value		Carrying Value		Carrying Value		Carrying Value
	July 31, 2011				January 31, 2011
(Amounts in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt, including amounts due within one year	$	47,025	$	50,080	$	45,347	$	47,012

Additionally, as of July 31, 2011 and January 31, 2011, the Company held certain derivative asset and liability positions that are required to be measured at fair value on a recurring basis. The majority of the Company's derivative instruments relate to interest rate swaps. The fair values of these interest rate swaps have been measured in accordance with Level 2 inputs of the fair value hierarchy, using the income approach. As of July 31, 2011 and January 31, 2011, the notional amounts and fair values of these interest rate swaps are as follows (asset/(liability)):

	July 31, 2011					January 31, 2011
(Amounts in millions)	Notional Amount		Fair Value			Notional Amount		Fair Value
Receive fixed-rate, pay floating-rate interest rate swaps designated as fair value hedges	$	3,945	$	239		$	4,445	$	267
Receive fixed-rate, pay fixed-rate cross-currency interest rate swaps designated as net investment hedges		1,250		210			1,250		233
Receive floating-rate, pay fixed-rate interest rate swaps designated as cash flow hedges		1,262		(20	)		1,182		(18	)
Receive fixed-rate, pay fixed-rate cross-currency interest rate swaps designated as cash flow hedges		3,082		236			2,902		238
Total	$	9,539	$	665		$	9,779	$	720

The fair values above are the estimated amounts the Company would receive or pay upon a termination of the agreements relating to such instruments as of the reporting dates.