Derivative Financial Instruments (Tables)

6 Months Ended

Aug. 02, 2025

We had foreign exchange forward contracts outstanding in the following notional amounts:


($ in millions)	August 2, 2025		February 1, 2025		August 3, 2024
Derivatives designated as cash flow hedges	$	527	$	363	$	457
Derivatives not designated as hedging instruments	422		419		410
Total	$	949	$	782	$	867

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


($ in millions)	August 2, 2025		February 1, 2025		August 3, 2024
Derivatives designated as cash flow hedges:
Other current assets	$	4	$	20	$	8
Other long-term assets	2		—		2
Accrued expenses and other current liabilities	1		—		2
Other long-term liabilities	—		—		1







Derivatives not designated as hedging instruments:
Other current assets	3		13		6
Accrued expenses and other current liabilities	5		—		—

Total derivatives in an asset position	$	9	$	33	$	16
Total derivatives in a liability position	$	6	$	—	$	3

The pre-tax amounts recognized in net income related to derivative instruments are as follows:


	Location and Amount of Gain Recognized in Net Income
	13 Weeks Ended August 2, 2025				13 Weeks Ended August 3, 2024
($ in millions)	Cost of goods sold and occupancy expenses		Operating expenses		Cost of goods sold and occupancy expenses		Operating expenses
Total amount of expense line items presented in the Condensed Consolidated Statements of Operations in which the effects of derivatives are recorded	$	2,189	$	1,244	$	2,137	$	1,290

Gain recognized in net income
Derivatives designated as cash flow hedges	—		—		(4)		—

Derivatives not designated as hedging instruments	—		(1)		—		(6)
Total gain recognized in net income	$	—	$	(1)	$	(4)	$	(6)


	Location and Amount of (Gain) Loss Recognized in Net Income
	26 Weeks Ended August 2, 2025				26 Weeks Ended August 3, 2024
($ in millions)	Cost of goods sold and occupancy expense		Operating expenses		Cost of goods sold and occupancy expense		Operating expenses
Total amount of expense line items presented in the Condensed Consolidated Statements of Operations in which the effects of derivatives are recorded	$	4,204	$	2,432	$	4,128	$	2,482

(Gain) loss recognized in net income
Derivatives designated as cash flow hedges	(5)		—		(6)		—
Derivatives not designated as hedging instruments	—		20		—		(13)
Total (gain) loss recognized in net income	$	(5)	$	20	$	(6)	$	(13)