v3.26.1
Derivative Financial Instruments
3 Months Ended
May 02, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Our derivative instruments consist of interest rate swaps used to mitigate interest rate risk. As a result, we have counterparty credit exposure to large global financial institutions, which we monitor on an ongoing basis. Note 4 to the Consolidated Financial Statements provides the fair value and classification of these instruments.

We were party to interest rate swaps with notional amounts totaling $2.45 billion as of May 2, 2026, and $2.20 billion as of January 31, 2026, and May 3, 2025. We pay a floating rate and receive a fixed rate under each of these agreements. All of the agreements are designated as fair value hedges, and all were considered to be perfectly effective under the shortcut method during the three months ended May 2, 2026, and May 3, 2025.


Effect of Hedges on Debt
(millions)
May 2, 2026January 31, 2026May 3, 2025
Long-term debt and other borrowings
Carrying amount of hedged debt$2,376 $2,139 $2,126 
Cumulative hedging adjustments, included in carrying amount(65)(55)(68)

Effect of Hedges on Net Interest ExpenseThree Months Ended
(millions)May 2, 2026May 3, 2025
Gain (loss) on fair value hedges recognized in Net Interest Expense
Interest rate swaps designated as fair value hedges$(10)$57 
Hedged debt10 (57)
Gain on cash flow hedges recognized in Net Interest Expense
Total$$