Derivative Financial Instruments (Tables)

3 Months Ended

May 03, 2014

Derivative [Line Items]

Foreign Exchange Forward Contracts Outstanding

We had foreign exchange forward contracts outstanding in the following notional amounts:

(notional amounts in millions)	May 3, 2014		February 1, 2014		May 4, 2013
U.S. dollars (1)	$	1,583	$	1,309	$	1,284
Canadian dollars	C$	8	C$	8	C$	—
Euro	€	26	€	25	€	26
Japanese yen	¥	—	¥	—	¥	2,275

__________ 

(1) The principal currencies hedged against changes in the U.S. dollar were British pounds, Canadian dollars, Euro, and Japanese yen.

Fair Values of Asset and Liability Derivative Financial Instruments

The fair values of foreign exchange forward contracts are as follows:

($ in millions)	May 3, 2014		February 1, 2014		May 4, 2013
Derivatives designated as cash flow hedges:
Other current assets	$	37	$	48	$	51
Other long-term assets	$	4	$	6	$	11
Accrued expenses and other current liabilities	$	16	$	13	$	5
Lease incentives and other long-term liabilities	$	4	$	1	$	2
Derivatives designated as net investment hedges:
Other current assets	$	—	$	1	$	1
Other long-term assets	$	—	$	—	$	—
Accrued expenses and other current liabilities	$	—	$	—	$	—
Lease incentives and other long-term liabilities	$	—	$	—	$	—
Derivatives not designated as hedging instruments:
Other current assets	$	3	$	9	$	6
Other long-term assets	$	—	$	—	$	—
Accrued expenses and other current liabilities	$	2	$	1	$	2
Lease incentives and other long-term liabilities	$	—	$	—	$	—
Total derivatives in an asset position	$	44	$	64	$	69
Total derivatives in a liability position	$	22	$	15	$	9

Effects of Derivative Financial Instruments on OCI and Condensed Consolidated Statements of Income

The effective portion of gains and losses on foreign exchange forward contracts in cash flow hedging and net investment hedging relationships recorded in other comprehensive income and the Condensed Consolidated Statements of Income, on a pre-tax basis, are as follows:

	13 Weeks Ended
($ in millions)	May 3, 2014			May 4, 2013
Derivatives in cash flow hedging relationships:
Gain (loss) recognized in other comprehensive income	$	(15	)	$	36
Gain reclassified into cost of goods sold and occupancy expenses	$	7		$	12
Gain reclassified into operating expenses	$	1		$	2
Derivatives in net investment hedging relationships:
Gain (loss) recognized in other comprehensive income	$	(1	)	$	1