XML 67 R25.htm IDEA: XBRL DOCUMENT v3.25.0.1
Derivative Financial Instruments
 12 Months Ended
Feb. 01, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Our derivative instruments consist of interest rate swaps used to mitigate interest rate risk. As a result, we have counterparty credit exposure to large global financial institutions, which we monitor on an ongoing basis. Note 6 provides the fair value and classification of these instruments.

Under our swap agreements, we pay a floating rate equal to the daily Secured Overnight Financing Rate (SOFR) compounded over six months and receive a weighted average fixed rate of 2.8 percent. The agreements have a weighted average remaining maturity of 4.5 years. As of February 1, 2025, and February 3, 2024, interest rate swaps with notional amounts totaling $2.20 billion and $2.45 billion were designated as fair value hedges, and all were considered to be perfectly effective under the shortcut method during 2024 and 2023.
Effect of Hedges on Debt
(millions)
February 1, 2025February 3, 2024
Long-term debt and other borrowings
Carrying amount of hedged debt$2,069 $2,316 
Cumulative hedging adjustments, included in carrying amount(125)(126)

Effect of Hedges on Net Interest Expense
(millions)
202420232022
Gain (loss) on fair value hedges recognized in Net Interest Expense
Interest rate swaps designated as fair value hedges
$1 $(52)$(151)
Hedged debt(1)52 151 
Gain on cash flow hedges recognized in Net Interest Expense23 24 4 
Total$23 $24 $4