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. We also use interest rate swaps to mitigate the effect of interest rate fluctuations on our $650 million principal amount of notes due March 15, 2021, prior to their retirement in December 2020, and on our $500 million principal amount of notes due October 1, 2028. 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 3, Fair Value Measurements, for gross fair values of our outstanding derivative instruments and corresponding fair value classifications.



Contract Type	May 1, 2021		January 30, 2021		May 2, 2020
Derivatives designated as net investment hedges	$	94	$	153	$	126
Derivatives designated as interest rate swaps		500		500		1,150
No hedge designation (foreign exchange contracts)		34		51		21
Total	$	628	$	704	$	1,297

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



		Gain (Loss) Recognized
		Three Months Ended
	Statement of Earnings Location	May 1, 2021		May 2, 2020
Interest rate swap contracts	Interest expense	$	(26)	$	29
Adjustments to carrying value of long-term debt	Interest expense		26		(29)
Total		$	-	$	-