DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

3 Months Ended

Apr. 29, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional amounts of outstanding derivative instruments

The following table presents the notional amounts of outstanding derivative instruments as of the dates indicated:


	April 29, 2022		January 28, 2022
	(in millions)
Foreign exchange contracts:
Designated as cash flow hedging instruments	$	8,758	$	7,879
Non-designated as hedging instruments	8,047		8,713
Total	$	16,805	$	16,592
Interest rate contracts:
Non-designated as hedging instruments	$	6,146	$	6,715

Derivative instruments designated as hedging instruments

The following table presents the effect of derivative instruments designated as hedging instruments on the Condensed Consolidated Statements of Financial Position and the Condensed Consolidated Statements of Income for the periods indicated:


Derivatives in Cash Flow Hedging Relationships	Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives		Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Gain (Loss) Reclassified from Accumulated OCI into Income
	(in millions)			(in millions)
For the three months ended April 29, 2022
			Total net revenue	$	123
Foreign exchange contracts	$	372	Total cost of net revenue	(27)
Interest rate contracts	—		Interest and other, net	—
Total	$	372	Total	$	96


For the three months ended April 30, 2021
			Total net revenue	$	(30)
Foreign exchange contracts	$	(1)	Total cost of net revenue	2
Interest rate contracts	—		Interest and other, net	—
Total	$	(1)	Income from discontinued operations	1
			Total	$	(27)

Derivative instruments not designated as hedging instruments

The following table presents the effect of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Income as of the dates indicated:


	Three Months Ended
	April 29, 2022		April 30, 2021		Location of Gain (Loss) Recognized
	(in millions)
Foreign exchange contracts	$	(231)	$	(29)	Interest and other, net
Interest rate contracts	17		1		Interest and other, net
Foreign exchange contracts	—		5		Income from discontinued operations
Total	$	(214)	$	(23)

Fair value of derivatives

The following tables present the fair value of those derivative instruments presented on a gross basis as the dates indicated:


	April 29, 2022
	Other Current Assets		Other Non- Current Assets		Other Current Liabilities		Other Non-Current Liabilities		Total Fair Value
	(in millions)
Derivatives designated as hedging instruments:
Foreign exchange contracts in an asset position	$	290	$	—	$	200	$	—	$	490
Foreign exchange contracts in a liability position	(1)		—		(8)		—		(9)
Net asset	289		—		192		—		481
Derivatives not designated as hedging instruments:
Foreign exchange contracts in an asset position	480		1		303		—		784
Foreign exchange contracts in a liability position	(389)		—		(609)		(2)		(1,000)
Interest rate contracts in an asset position	—		90		—				90
Interest rate contracts in a liability position	—		—		—		(64)		(64)
Net asset (liability)	91		91		(306)		(66)		(190)
Total derivatives at fair value	$	380	$	91	$	(114)	$	(66)	$	291

	January 28, 2022
	Other Current Assets		Other Non- Current Assets		Other Current Liabilities		Other Non-Current Liabilities		Total Fair Value
	(in millions)
Derivatives designated as hedging instruments:
Foreign exchange contracts in an asset position	$	135	$	—	$	50	$	—	$	185
Foreign exchange contracts in a liability position	(5)		—		(8)		—		(13)
Net asset	130		—		42		—		172
Derivatives not designated as hedging instruments:
Foreign exchange contracts in an asset position	280		2		106		—		388
Foreign exchange contracts in a liability position	(189)		—		(244)		(5)		(438)
Interest rate contracts in an asset position	—		30		—				30
Interest rate contracts in a liability position	—		—		—		(37)		(37)
Net asset (liability)	91		32		(138)		(42)		(57)
Total derivatives at fair value	$	221	$	32	$	(96)	$	(42)	$	115

Gross amounts of derivative instruments

The following tables present the gross amounts of the Company’s derivative instruments, amounts offset due to master netting agreements with the Company’s counterparties, and the net amounts recognized in the Condensed Consolidated Statements of Financial Position as of the dates indicated:


	April 29, 2022
	Gross Amounts of Recognized Assets/ (Liabilities)		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position		Gross Amounts not Offset in the Statement of Financial Position				Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position
							Financial Instruments		Cash Collateral Received or Pledged
	(in millions)
Derivative instruments:
Financial assets	$	1,364	$	(893)	$	471	$	—	$	—	$	471
Financial liabilities	(1,073)		893		(180)		—		42		(138)
Total derivative instruments	$	291	$	—	$	291	$	—	$	42	$	333

	January 28, 2022
	Gross Amounts of Recognized Assets/ (Liabilities)		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position		Gross Amounts not Offset in the Statement of Financial Position				Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position
							Financial Instruments		Cash Collateral Received or Pledged
	(in millions)
Derivative instruments:
Financial assets	$	603	$	(350)	$	253	$	—	$	—	$	253
Financial liabilities	(488)		350		(138)		—		24		(114)
Total derivative instruments	$	115	$	—	$	115	$	—	$	24	$	139

Offsetting amounts


	April 29, 2022
	Gross Amounts of Recognized Assets/ (Liabilities)		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position		Gross Amounts not Offset in the Statement of Financial Position				Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position
							Financial Instruments		Cash Collateral Received or Pledged
	(in millions)
Derivative instruments:
Financial assets	$	1,364	$	(893)	$	471	$	—	$	—	$	471
Financial liabilities	(1,073)		893		(180)		—		42		(138)
Total derivative instruments	$	291	$	—	$	291	$	—	$	42	$	333

	January 28, 2022
	Gross Amounts of Recognized Assets/ (Liabilities)		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position		Gross Amounts not Offset in the Statement of Financial Position				Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position
							Financial Instruments		Cash Collateral Received or Pledged
	(in millions)
Derivative instruments:
Financial assets	$	603	$	(350)	$	253	$	—	$	—	$	253
Financial liabilities	(488)		350		(138)		—		24		(114)
Total derivative instruments	$	115	$	—	$	115	$	—	$	24	$	139