Derivative Financial Instruments (Tables)

12 Months Ended

Feb. 01, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Foreign Exchange Forward Contracts Outstanding

As of February 1, 2020 and February 2, 2019, we had foreign exchange forward contracts outstanding in the following notional amounts:

($ in millions)	February 1, 2020		February 2, 2019
Derivatives designated as cash flow hedges	$	501	$	774
Derivatives not designated as hedging instruments	689		660
Total	$	1,190	$	1,434

Fair Values of Asset and Liability Derivative Financial Instruments

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

($ in millions)	February 1, 2020		February 2, 2019
Derivatives designated as cash flow hedges:
Other current assets	$	6	$	15
Accrued expenses and other current liabilities	2		3
Derivatives not designated as hedging instruments:
Other current assets	4		5
Accrued expenses and other current liabilities	8		8
Total derivatives in an asset position	$	10	$	20
Total derivatives in a liability position	$	10	$	11

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

The effective portion of gains and losses on foreign exchange forward contracts designated in a cash flow hedging relationship and net investment hedging relationships recorded in OCI, on a pre-tax basis, are as follows:

	Fiscal Year
($ in millions)	2019		2018		2017
Derivatives in cash flow hedging relationships:
Gain (loss) recognized in other comprehensive income	$	18	$	50	$	(60	)
Derivatives in net investment hedging relationships:
Loss recognized in other comprehensive income	$	—	$	—	$	(1	)

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

	Location and Amount of (Gain) Loss Recognized in Income
	Fiscal Year 2019						Fiscal Year 2018						Fiscal Year 2017
($ in millions)	Cost of goods sold and occupancy expenses			Operating expenses			Cost of goods sold and occupancy expenses			Operating expenses			Cost of goods sold and occupancy expenses		Operating expenses
Total amount of expense line items presented on the Consolidated Statements of Income in which the effects of derivatives are recorded	$	10,250		$	5,559		$	10,258		$	4,960		$	9,789	$	4,587
(Gain) loss recognized in income:
Derivatives designated as cash flow hedges	$	(29	)	$	—		$	(13	)	$	(1	)	$	—	$	1
Derivatives not designated as hedging instruments	—			(4		)	—			(33		)	—		29
Total (gain) loss recognized in income	$	(29	)	$	(4	)	$	(13	)	$	(34	)	$	—	$	30

Derivatives Not Designated as Hedging Instruments [Table Text Block]

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