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 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 Consolidated Balance Sheets at fair value. See Note 5, Fair Value Measurements, for gross fair values of our outstanding derivative instruments and corresponding fair value classifications.



	Notional Amount
Contract Type	January 28, 2023		January 29, 2022
Derivatives designated as net investment hedges	$	114	$	155
Derivatives designated as interest rate swap contracts		500		500
No hedging designation (foreign exchange forward contracts)		56		68
Total	$	670	$	723

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



		Gain (Loss) Recognized
Contract Type	Statement of Earnings Location	2023		2022		2021
Interest rate swap contracts	Interest expense	$	(57)	$	(41)	$	2
Adjustments to carrying value of long-term debt	Interest expense		57		41		(2)
Total		$	-	$	-	$	-