Quantitative and Qualitative Disclosures About Market Risk
−Removed: As of February 3, 2024, our exposure to market risk was primarily from interest rate changes on our debt obligations and short-term investments, some of which are at a Secured Overnight Financing Rate (SOFR).
−Removed: Our interest rate exposure is primarily due to differences between our floating rate debt obligations compared to our floating rate short-term investments.
−Removed: As of February 3, 2024, our floating rate short-term investments exceeded our floating rate debt by approximately $450 million.
−Removed: Based on our balance sheet position as of February 3, 2024, the annualized effect of a 1 percentage point increase in floating interest rates on our floating rate short-term investments, net of our floating rate debt obligations, would increase our earnings before income taxes by $5 million.
−Removed: In general, we expect our floating rate debt to exceed our floating rate short-term investments over time, but that may vary in different interest rate and economic environments.
+Added: As of February 1, 2025, our exposure to market risk was primarily from interest rate changes on our debt obligations and short-term investments.
+Added: Our interest rate exposure is primarily due to differences between our floating rate debt obligations, including fixed rate debt hedged using floating rate interest rate swaps, compared to our floating rate short-term investments.
+Added: As of February 1, 2025, our floating rate short-term investments exceeded our floating rate debt obligations by approximately $1.7 billion.
+Added: Based on our financial position as of February 1, 2025, the annualized effect of a 1 percentage point increase in floating interest rates on our floating rate short-term investments, net of our floating rate debt obligations, would increase our earnings before income taxes by $17 million.
+Added: In general, we expect our floating rate debt obligations to be in line with our floating rate short-term investments over time, but that may vary in different interest rate and economic environments.
See further description of our debt and derivative instruments in Notes 15 and 16 to the Financial Statements.
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