INVESTMENTS

3 Months Ended

May 03, 2024

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 while short-term fixed income debt securities are recorded as other current assets in the Condensed Consolidated Statements of Financial Position.

Total investments were $1.5 billion as of May 3, 2024 and $1.6 billion as of February 2, 2024.

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 and other securities as of the dates indicated:


	May 3, 2024								February 2, 2024
	Cost		Unrealized Gain		Unrealized Loss		Carrying Value		Cost		Unrealized Gain		Unrealized Loss		Carrying Value

	(in millions)
Marketable	$	17	$	24	$	(31)	$	10	$	12	$	24	$	(26)	$	10
Non-marketable	751		1,016		(485)		1,282		732		1,015		(454)		1,293
Total equity and other securities	$	768	$	1,040	$	(516)	$	1,292	$	744	$	1,039	$	(480)	$	1,303

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 3, 2024		May 5, 2023

	(in millions)
Marketable securities:

Unrealized loss	$	(5)	$	(23)
Net unrealized loss	(5)		(23)
Non-marketable securities:
Unrealized gain	—		9
Unrealized loss	(30)		(5)
Net unrealized gain (loss) (a) (b)	(30)		4
Net unrealized loss on equity and other securities	$	(35)	$	(19)

____________________

(a) For the three months ended May 3, 2024, net unrealized losses on non-marketable securities were primarily attributable to downward adjustments for observable price changes.

(b) For the three months ended May 5, 2023, net unrealized gains on non-marketable securities were primarily attributable to upward adjustments for observable price changes.

Fixed Income Debt Securities

The Company has fixed income debt securities carried at amortized cost which are primarily held as collateral for borrowings. The Company intends to hold the investments to maturity. As of May 3, 2024, the Company held $198 million in fixed income debt securities which will mature within one year and $1 million in fixed income debt securities which will mature within five years.

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


	May 3, 2024								February 2, 2024
	Cost		Unrealized Gain		Unrealized Loss		Carrying Value		Cost		Unrealized Gain		Unrealized Loss		Carrying Value

	(in millions)
Fixed income debt securities	$	215	$	36	$	(52)	$	199	$	325	$	67	$	(91)	$	301