Derivative Financial Instruments (Tables)

6 Months Ended

Aug. 03, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Foreign Exchange Forward Contracts Outstanding

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

($ in millions)	August 3, 2019		February 2, 2019		August 4, 2018
Derivatives designated as cash flow hedges	$	652	$	774	$	1,052
Derivatives not designated as hedging instruments	1,046		660		646
Total	$	1,698	$	1,434	$	1,698

Fair Values of Asset and Liability Derivative Financial Instruments

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

($ in millions)	August 3, 2019		February 2, 2019		August 4, 2018
Derivatives designated as cash flow hedges:
Other current assets	$	15	$	15	$	19
Other long-term assets	1		—		7
Accrued expenses and other current liabilities	1		3		3
Lease incentives and other long-term liabilities	1		—		1
Derivatives not designated as hedging instruments:
Other current assets	11		5		14
Accrued expenses and other current liabilities	7		8		3
Total derivatives in an asset position	$	27	$	20	$	40
Total derivatives in a liability position	$	9	$	11	$	7

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 designated in a cash flow hedging relationship recorded in other comprehensive income, on a pre-tax basis, are as follows:

	13 Weeks Ended				26 Weeks Ended
($ in millions)	August 3, 2019		August 4, 2018		August 3, 2019		August 4, 2018
Gain recognized in other comprehensive income	$	2	$	21	$	15	$	43

The pre-tax amounts recognized in income related to derivative instruments are as follows:

	Location and Amount of (Gain) Loss Recognized in Income
	13 Weeks Ended August 3, 2019						13 Weeks Ended August 4, 2018
($ in millions)	Cost of goods sold and occupancy expense			Operating expenses			Cost of goods sold and occupancy expense		Operating expenses
Total amount of expense line items presented in the Condensed Consolidated Income Statement in which the effects of derivatives are recorded	$	2,449		$	1,274		$	2,458	$	1,229
(Gain) recognized in income
Derivatives designated as cash flow hedges	$	(6	)	$	—		$	—	$	—
Derivatives not designated as hedging instruments	—			(3		)	—		(12		)
Total (gain) recognized in income	$	(6	)	$	(3	)	$	—	$	(12	)

	Location and Amount of (Gain) Loss Recognized in Income
	26 Weeks Ended August 3, 2019						26 Weeks Ended August 4, 2018
($ in millions)	Cost of goods sold and occupancy expense			Operating expenses			Cost of goods sold and occupancy expense			Operating expenses
Total amount of expense line items presented in the Condensed Consolidated Income Statement in which the effects of derivatives are recorded	$	4,811		$	2,302		$	4,814		$	2,427
(Gain) recognized in income
Derivatives designated as cash flow hedges	$	(12	)	$	—		$	(3	)	$	—
Derivatives not designated as hedging instruments	—			(12		)	—			(24		)
Total (gain) recognized in income	$	(12	)	$	(12	)	$	(3	)	$	(24	)