INVESTMENTS

3 Months Ended

May 05, 2023

Investments, Debt and Equity Securities [Abstract]

The Company has strategic investments in equity and other securities as well as investments in fixed income debt securities. All equity and other securities as well as long-term fixed income debt securities are recorded as long-term investments in the Condensed Consolidated Statements of Financial Position. Short-term fixed income debt securities are recorded as other current assets in the Condensed Consolidated Statements of Financial Position.

As of both May 5, 2023 and February 3, 2023, total investments were $1.6 billion.

Equity and Other Securities

Equity and other securities include strategic investments in marketable and non-marketable securities. Investments in marketable securities are measured at fair value on a recurring basis. The Company has elected to apply the measurement alternative for non-marketable securities. Under the alternative, the Company measures investments without readily determinable fair values at cost, less impairment, adjusted by observable price changes. The Company makes a separate election to use the alternative for each eligible investment and is required to reassess at each reporting period whether an investment qualifies for the alternative. In evaluating these investments for impairment or observable price changes, the Company uses inputs including pre- and post-money valuations of recent financing events and the impact of those events on its fully diluted ownership percentages, as well as other available information regarding the issuer’s historical and forecasted performance.

Carrying Value of Equity and Other Securities

The following table presents the cost, cumulative unrealized gains, cumulative unrealized losses, and carrying value of the Company's strategic investments in marketable and non-marketable equity securities as of the dates indicated:


	May 5, 2023								February 3, 2023
	Cost		Unrealized Gain		Unrealized Loss		Carrying Value		Cost		Unrealized Gain		Unrealized Loss		Carrying Value

	(in millions)
Marketable	$	55	$	17	$	(63)	$	9	$	56	$	17	$	(40)	$	33
Non-marketable	712		660		(105)		1,267		714		651		(100)		1,265
Total equity and other securities	$	767	$	677	$	(168)	$	1,276	$	770	$	668	$	(140)	$	1,298

Gains and Losses on Equity and Other Securities

The following table presents unrealized gains and losses on marketable and non-marketable equity and other securities for the periods indicated:


	Three Months Ended
	May 5, 2023		April 29, 2022

	(in millions)
Marketable securities:

Unrealized loss	$	(23)	$	(18)
Net unrealized gain (loss)	(23)		(18)
Non-marketable securities:
Unrealized gain	9		21
Unrealized loss	(5)		—
Net unrealized gain (a)	4		21
Net unrealized gain (loss) on equity and other securities	$	(19)	$	3

____________________

(a) For all periods presented, net unrealized gains on non-marketable securities were primarily due to upward adjustments for observable price changes.

Fixed Income Debt Securities

The Company has fixed income debt securities carried at amortized cost which are held as collateral for borrowings. The Company intends to hold the investments to maturity. As of May 5, 2023, the Company held $200 million in fixed income debt securities which will mature within one year and $123 million in fixed income debt securities which will mature within two to five years.

The following table summarizes the Company’s debt securities as of the dates indicated:


	May 5, 2023								February 3, 2023
	Cost		Unrealized Gain		Unrealized Loss		Carrying Value		Cost		Unrealized Gain		Unrealized Loss		Carrying Value

	(in millions)
Fixed income debt securities	$	350	$	77	$	(104)	$	323	$	348	$	65	$	(95)	$	318