Item 3. Quantitative and Qualitative Disclosures About Market Risk.

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There have been no material changes in our exposure to market risk from the information provided in Item 7A. Quantitative and Qualitative Disclosures About Market Risk in our Annual Report on Form 10-K for the fiscal year ended January 29, 2022, with the exception of the forward-starting interest rate swaps we entered into during the third quarter of 2022 described below.

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As of November 5, 2022, we maintained five forward-starting interest rate swap agreements with a maturity date of August 1, 2027 with an aggregate notional amount totaling $5.4 billion. A forward-starting interest rate swap is an agreement that effectively hedges the variability in future benchmark interest payments attributable to changes in interest rates on the forecasted issuance of fixed-rate debt. We entered into these forward-starting interest rate swaps in order to lock in fixed interest rates on our forecasted issuances of debt. The fixed interest rates for these forward-starting interest rate swaps range from 3.00% to 3.78%. The variable rate component on the forward-starting interest rate swaps is the Secured Overnight Financing Rate (SOFR). As of November 5, 2022, the fair value of the interest rate swaps was recorded in “Other assets” and “Other long-term liabilities” for $67 million and $1 million, respectively, and accumulated other comprehensive income for $37 million, net of tax.

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