Derivative Financial Instruments (Tables)

9 Months Ended

Oct. 31, 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)	October 31, 2020		February 1, 2020		November 2, 2019
Derivatives designated as cash flow hedges	$	474	$	501	$	640
Derivatives not designated as hedging instruments	539		689		706
Total	$	1,013	$	1,190	$	1,346

Fair Values of Asset and Liability Derivative Financial Instruments

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

($ in millions)	October 31, 2020		February 1, 2020		November 2, 2019
Derivatives designated as cash flow hedges:
Other current assets	$	2	$	6	$	7
Other long-term assets	—		—		1
Accrued expenses and other current liabilities	1		2		2
Derivatives not designated as hedging instruments:
Other current assets	4		4		4
Accrued expenses and other current liabilities	6		8		8
Total derivatives in an asset position	$	6	$	10	$	12
Total derivatives in a liability position	$	7	$	10	$	10

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				39 Weeks Ended
($ in millions)	October 31, 2020		November 2, 2019		October 31, 2020		November 2, 2019
Gain (loss) recognized in other comprehensive income	$	(2)	$	—	$	10	$	15

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

	Location and Amount of (Gain) Loss Recognized in Net Income
	13 Weeks Ended October 31, 2020				13 Weeks Ended November 2, 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	$	2,374	$	1,445	$	2,439	$	1,338
(Gain) loss recognized in net income
Derivatives designated as cash flow hedges	(2)		—		(9)		—
Derivatives not designated as hedging instruments	—		4		—		8
Total (gain) loss recognized in net income	$	(2)	$	4	$	(9)	$	8