Derivative Financial Instruments (Tables)

3 Months Ended

May 02, 2020

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)	May 2, 2020		February 1, 2020		May 4, 2019
Derivatives designated as cash flow hedges	$	319	$	501	$	610
Derivatives not designated as hedging instruments	785		689		666
Total	$	1,104	$	1,190	$	1,276

Fair Values of Asset and Liability Derivative Financial Instruments

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

($ in millions)	May 2, 2020		February 1, 2020		May 4, 2019
Derivatives designated as cash flow hedges:
Other current assets	$	16	$	6	$	20
Accrued expenses and other current liabilities	—		2		2
Derivatives not designated as hedging instruments:
Other current assets	20		4		7
Accrued expenses and other current liabilities	5		8		4
Total derivatives in an asset position	$	36	$	10	$	27
Total derivatives in a liability position	$	5	$	10	$	6

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

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

	Location and Amount of Gain Recognized in Net Income (Loss)
	13 Weeks Ended May 2, 2020						13 Weeks Ended May 4, 2019
($ 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 Statements of Operations in which the effects of derivatives are recorded	$	1,839		$	1,512		$	2,362		$	1,028
Gain recognized in net income (loss)
Derivatives designated as cash flow hedges	(4		)	—			(6		)	—
Derivatives not designated as hedging instruments	—			(43		)	—			(9		)
Total gain recognized in net income (loss)	$	(4	)	$	(43	)	$	(6	)	$	(9	)

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
($ in millions)	May 2, 2020		May 4, 2019
Gain recognized in other comprehensive income	$	21	$	13