Fair Value Measurements
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of January 31, 2026 (in millions):
| | | | | | | | | | | | | | | | | | | | | | | |
| Level 1 | | Level 2 | | Level 3 | | Total |
| U.S. treasury securities | $ | 1,831 | | | $ | 0 | | | $ | 0 | | | $ | 1,831 | |
| U.S. agency obligations | 0 | | | 266 | | | 0 | | | 266 | |
| Corporate bonds | 0 | | | 1,896 | | | 0 | | | 1,896 | |
| Commercial paper | 0 | | | 164 | | | 0 | | | 164 | |
| Asset-backed securities | 0 | | | 157 | | | 0 | | | 157 | |
| Supranational securities | 0 | | | 26 | | | 0 | | | 26 | |
| Money market funds | 694 | | | 0 | | | 0 | | | 694 | |
| Foreign currency derivative assets | 0 | | | 21 | | | 0 | | | 21 | |
| Total assets | $ | 2,525 | | | $ | 2,530 | | | $ | 0 | | | $ | 5,055 | |
| Foreign currency derivative liabilities | $ | 0 | | | $ | 148 | | | $ | 0 | | | $ | 148 | |
| Total liabilities | $ | 0 | | | $ | 148 | | | $ | 0 | | | $ | 148 | |
The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of January 31, 2025 (in millions):
| | | | | | | | | | | | | | | | | | | | | | | |
| Level 1 | | Level 2 | | Level 3 | | Total |
| U.S. treasury securities | $ | 2,072 | | | $ | 0 | | | $ | 0 | | | $ | 2,072 | |
| U.S. agency obligations | 0 | | | 636 | | | 0 | | | 636 | |
| Corporate bonds | 0 | | | 3,540 | | | 0 | | | 3,540 | |
| Commercial paper | 0 | | | 294 | | | 0 | | | 294 | |
| Asset-backed securities | 0 | | | 104 | | | 0 | | | 104 | |
| Supranational securities | 0 | | | 5 | | | 0 | | | 5 | |
| Money market funds | 988 | | | 0 | | | 0 | | | 988 | |
| Foreign currency derivative assets | 0 | | | 112 | | | 0 | | | 112 | |
| Total assets | $ | 3,060 | | | $ | 4,691 | | | $ | 0 | | | $ | 7,751 | |
| Foreign currency derivative liabilities | $ | 0 | | | $ | 26 | | | $ | 0 | | | $ | 26 | |
| Total liabilities | $ | 0 | | | $ | 26 | | | $ | 0 | | | $ | 26 | |
Non-Marketable Equity Investments Measured at Fair Value on a Non-Recurring Basis
Non-marketable equity investments that have been remeasured due to an observable event or impairment are classified within Level 3 in the fair value hierarchy because we estimate the value based on valuation methods which may include a combination of the observable transaction price at the transaction date and other unobservable inputs including volatility, rights, and obligations of the investments we hold. For further information, see Note 3, Investments.
Fair Value Measurements of Other Financial Instruments
We carry our debt at face value less unamortized debt discount and issuance costs on the Consolidated Balance Sheets and present the fair value for disclosure purposes only. The fair values of all of our debt obligations are categorized as Level 2 financial instruments. For further information on the fair values of our debt and the inputs used in the calculations, see Note 11, Debt. About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.