Item 3. Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes in market risks from the information presented in Part II, Item 7A. “Quantitative and Qualitative Disclosures About Market Risk,” in the 2024 Annual Report on Form 10-K, except as disclosed below.

Interest Rate Risk

Changes in interest rates affect the fair value of our outstanding fixed-rate borrowings. As of August 3, 2025 and November 3, 2024, we had $65.8 billion and $56.3 billion in principal amount of fixed-rate borrowings outstanding, and the estimated aggregate fair value of these borrowings was $62.5 billion and $51.4 billion, respectively. As of August 3, 2025 and November 3, 2024, a hypothetical 50 basis point change in market interest rates would change the fair value of our fixed-rate borrowings by approximately $1.8 billion and $1.7 billion, respectively. However, this hypothetical change in interest rates would not impact the interest expense on our fixed-rate borrowings outstanding.

As of November 3, 2024, we had $13.6 billion of outstanding term loans, which are subject to floating interest rates. As of November 3, 2024, a hypothetical 100 basis point change in the interest rate would change the interest expense on our floating-rate term loans for the next 12 months by approximately $137 million. The carrying value of the floating-rate term loans approximates their fair value as the underlying interest rates are tied to the Secured Overnight Financing Rate. We had no floating-rate term loans outstanding as of August 3, 2025.