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Derivative Instruments
 3 Months Ended
Apr. 30, 2016
Summary of Derivative Instruments [Abstract]  
Derivative Instruments
Derivative Instruments
Foreign Exchange Risk
The Company has a cross-currency swap related to an intercompany loan of approximately CAD$170 million maturing in January 2018 which is designated as a cash flow hedge of foreign currency exchange risk. This cross-currency swap mitigates the exposure to fluctuations in the U.S. dollar-Canadian dollar exchange rate related to the Company's Canadian operations. The cross-currency swap requires the periodic exchange of fixed-rate Canadian dollar interest payments for fixed-rate U.S. dollar interest payments as well as exchange of Canadian dollar and U.S. dollar principal payments upon maturity. Changes in the U.S. dollar-Canadian dollar exchange rate and the related swap settlements result in reclassification of amounts from accumulated other comprehensive income to earnings to completely offset foreign currency transaction gains and losses recognized on the intercompany loan.
The following table provides a summary of the fair value and balance sheet classification of the derivative financial instruments designated as foreign exchange cash flow hedges as of April 30, 2016, January 30, 2016 and May 2, 2015:
 
April 30,
2016
 
January 30,
2016
 
May 2,
2015
 
(in millions)
Other Assets
$
11

 
$
27

 
$
11


The following table provides a summary of the pre-tax financial statement effect of the gains and losses on the Company’s derivative instruments designated as foreign exchange cash flow hedges for the first quarter 2016 and 2015:
 
 
First Quarter
 
Location
2016
 
2015
 
 
(in millions)
Loss Recognized in Other Comprehensive Income (Loss)
Other Comprehensive Income (Loss)
$
(16
)
 
$
(10
)
Loss Reclassified from Accumulated Other Comprehensive Income (Loss) into Other Income (a)
Other Income
14

 
17

 ________________
(a)
Represents reclassification of amounts from accumulated other comprehensive income (loss) to earnings to completely offset foreign currency transaction gains and losses recognized on the intercompany loans. No ineffectiveness was associated with these foreign exchange cash flow hedges.
Interest Rate Risk
Interest Rate Designated Fair Value Hedges
In 2014, the Company entered into interest rate swap arrangements related to $100 million of the outstanding 2017 Notes and $100 million of the outstanding 2019 Notes. In 2013, the Company entered into interest rate swap arrangements related to $200 million of the outstanding 2017 Notes and $200 million of the outstanding 2019 Notes. The interest rate swap arrangements effectively convert the fixed interest rate on the related debt to a variable interest rate based on LIBOR plus a fixed percentage.
The swap arrangements are designated as fair value hedges. The changes in the fair value of the interest rate swaps have an equal and offsetting impact to the carrying value of the debt on the balance sheet. The differential to be paid or received on the interest rate swap arrangements is accrued and recognized as an adjustment to interest expense.
In the past, the Company had entered into interest rate swap arrangements on the 2017 Notes. In 2012, the Company terminated these interest rate designated fair value hedges. The carrying values of the 2017 Notes include unamortized hedge settlements which are amortized as a reduction to interest expense through the maturity date of the Notes.
The following table provides a summary of the fair value and balance sheet classification of the derivative financial instruments designated as interest rate fair value hedges as of April 30, 2016, January 30, 2016 and May 2, 2015:
 
April 30,
2016
 
January 30,
2016
 
May 2,
2015
 
(in millions)
Other Assets
$
10

 
$
11

 
$
7