Derivative Financial Instruments (Tables)

9 Months Ended

Oct. 27, 2012

Foreign Exchange Forward Contracts Outstanding

As of October 27, 2012, January 28, 2012, and October 29, 2011, we had foreign exchange forward contracts outstanding in the following notional amounts:



(notional amounts in millions)	October 27, 2012		January 28, 2012		October 29, 2011
U.S. dollars (1)	$	1,091	$	873	$	1,042
British pounds	£	9	£	31	£	41
Japanese yen	¥	945	¥	2,564	¥	6,238
Euro	€	26	€	16	€	—

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(1)	The principal currencies hedged against changes in the U.S. dollar were the Euro, British pound, Japanese yen, and Canadian dollar.

Fair Values of Asset and Liability Derivative Financial Instruments

The fair values of foreign exchange forward contracts are as follows:



($ in millions)	October 27, 2012		January 28, 2012		October 29, 2011
Derivatives designated as cash flow hedges:
Other current assets	$	9	$	9	$	3
Other long-term assets	$	1	$	1	$	1
Accrued expenses and other current liabilities	$	8	$	10	$	24
Lease incentives and other long-term liabilities	$	3	$	—	$	4

Derivatives designated as net investment hedges:
Other current assets	$	—	$	—	$	1
Other long-term assets	$	—	$	—	$	—
Accrued expenses and other current liabilities	$	—	$	—	$	2
Lease incentives and other long-term liabilities	$	—	$	—	$	—

Derivatives not designated as hedging instruments:
Other current assets	$	2	$	3	$	2
Other long-term assets	$	—	$	—	$	—
Accrued expenses and other current liabilities	$	3	$	4	$	7
Lease incentives and other long-term liabilities	$	—	$	—	$	—

Total derivatives in an asset position	$	12	$	13	$	7
Total derivatives in a liability position	$	14	$	14	$	37

Effects of Derivative Financial Instruments on OCI and Condensed Consolidated Statements of Income

The effective portion of gains and losses on foreign exchange forward contracts in cash flow hedging and net investment hedging relationships recorded in OCI and the Condensed Consolidated Statements of Income, on a pre-tax basis, are as follows:



	13 Weeks Ended						39 Weeks Ended
($ in millions)	October 27, 2012			October 29, 2011			October 27, 2012		October 29, 2011
Derivatives in cash flow hedging relationships:
Gain (loss) recognized in other comprehensive income	$	(5	)	$	16		$	3	$	(38	)
Gain (loss) reclassified into cost of goods sold and occupancy expenses	$	2		$	(16	)	$	3	$	(37	)
Gain (loss) reclassified into operating expenses	$	—		$	(1	)	$	—	$	(4	)

Derivatives in net investment hedging relationships:
Gain (loss) recognized in other comprehensive income	$	(1	)	$	(1	)	$	2	$	(3	)

Not Designated as Hedging Instrument [Member]

Derivative [Line Items]

Effects of Derivative Financial Instruments on OCI and Condensed Consolidated Statements of Income

Gains and losses on foreign exchange forward contracts not designated as hedging instruments recorded in the Condensed Consolidated Statements of Income, on a pre-tax basis are as follows:



	13 Weeks Ended					39 Weeks Ended
($ in millions)	October 27, 2012			October 29, 2011		October 27, 2012		October 29, 2011
Gain (loss) recognized in operating expenses	$	(3	)	$	6	$	1	$	4

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

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- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

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