Derivative Instruments

6 Months Ended

Aug. 02, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

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 interest rate risk on our $500 million of 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 fair value hedges 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.

Notional amounts of our derivative instruments were as follows ($ in millions):

Contract Type	August 2, 2025		February 1, 2025		August 3, 2024
Derivatives designated as net investment hedges	$	119	$	119	$	103
Derivatives designated as fair value hedges (interest rate swaps)	500		500		500
No hedge designation (foreign exchange contracts)	62		42		59
Total	$	681	$	661	$	662

Effects of our fair value hedges included in Interest expense on our Condensed Consolidated Statements of Earnings were as follows ($ in millions):

	Gain (Loss) Recognized
	Three Months Ended				Six Months Ended
	August 2, 2025		August 3, 2024		August 2, 2025		August 3, 2024
Interest rate swaps	$	9	$	24	$	15	$	9
Adjustments to carrying value of long-term debt	(9)		(24)		(15)		(9)
Total	$	-	$	-	$	-	$	-