Assets and liabilities measured at fair value

3 Months Ended

May 05, 2023

Assets and liabilities measured at fair value

Assets and liabilities measured at fair value

6. Assets and liabilities measured at fair value

Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, fair value accounting standards establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The Company does not have any fair value measurements categorized within Level 3 as of May 5, 2023.

The following table presents the Company’s liabilities required to be measured at fair value as of May 5, 2023, aggregated by the level in the fair value hierarchy within which those measurements are classified.

	Quoted Prices
	in Active
	Markets		Significant
	for Identical		Other		Significant		Total Fair
	Assets and		Observable		Unobservable		Value at
	Liabilities		Inputs		Inputs		May 5,
(In thousands)	(Level 1)		(Level 2)		(Level 3)		2023
Liabilities:
Current and long-term obligations (a)	$	5,186,906	$	1,965,966	$	—	$	7,152,872
Deferred compensation (b)		47,815		—		—		47,815

(a) Included in the condensed consolidated balance sheet at book value as short-term borrowings of $250,000 and long-term obligations of $7,028,767.

(b) Reflected at fair value in the condensed consolidated balance sheet as accrued expenses and other current liabilities of $7,066 and noncurrent other liabilities of $40,749.