We manage our economic and transaction exposure to certain risks by using foreign exchange forward contracts to hedge against the effect of Canadian dollar exchange rate fluctuations on a portion of our net investment in our Canadian operations and by using interest rate swaps to mitigate the effect of interest rate fluctuations on our $500 million principal amount of notes due October 1, 2028 (“2028 Notes”). In addition, we use foreign currency forward contracts not designated as hedging instruments to manage the impact of fluctuations in foreign currency exchange rates relative to recognized receivable and payable balances denominated in non-functional currencies.

Our derivative instruments designated as net investment hedges and interest rate swaps are recorded on our Condensed Consolidated Balance Sheets at fair value. See Note 4, Fair Value Measurements, for gross fair values of our outstanding derivative instruments and corresponding fair value classifications.



Contract Type	October 29, 2022		January 29, 2022		October 30, 2021
Derivatives designated as net investment hedges	$	118	$	155	$	125
Derivatives designated as interest rate swaps		500		500		500
No hedge designation (foreign exchange contracts)		112		68		106
Total	$	730	$	723	$	731

Effects of our derivatives on our Condensed Consolidated Statements of Earnings were as follows ($ in millions):



		Gain (Loss) Recognized
		Three Months Ended				Nine Months Ended
	Statement of Earnings Location	October 29, 2022		October 30, 2021		October 29, 2022		October 30, 2021
Interest rate swap contracts	Interest expense	$	(45)	$	(21)	$	(76)	$	(33)
Adjustments to carrying value of long-term debt	Interest expense		45		21		76		33
Total		$	-	$	-	$	-	$	-