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52
Quantitative Disclosures about Derivative Financial Instruments
The fair values of foreign exchange forward contracts are as follows:
($ in millions) February 2,
2013 January 28,
2012
Derivatives designated as cash flow hedges:
Other current assets $ 41 $ 9
Other long-term assets $ 2 $ 1
Accrued expenses and other current liabilities $ 10 $ 10
Lease incentives and other long-term liabilities $ — $ —
Derivatives designated as net investment hedges:
Other current assets $ — $ —
Other long-term assets $ — $ —
Accrued expenses and other current liabilities $ 1 $ —
Lease incentives and other long-term liabilities $ — $ —
Derivatives not designated as hedging instruments:
Other current assets $ 8 $ 3
Other long-term assets $ — $ —
Accrued expenses and other current liabilities $ 3 $ 4
Lease incentives and other long-term liabilities $ — $ —
Total derivatives in an asset position $ 51 $ 13
Total derivatives in a liability position $ 14 $ 14
Substantially all of the unrealized gains and losses from designated cash flow hedges as of February 2, 2013 will be
recognized in income within the next 12 months at the then-current values, which may differ from the fair values as of
February 2, 2013 shown above.
See Note 7 of Notes to Consolidated Financial Statements for disclosures on the fair value measurements of our
derivative financial instruments.
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 Consolidated Statements of Income, on a pre-tax basis, are as follows:
Fiscal Year
($ in millions) 2012 2011 2010
Derivatives in cash flow hedging relationships:
Gain (loss) recognized in other comprehensive income $ 46 $ (20) $ (50)
Gain (loss) reclassified into cost of goods sold and occupancy
expenses $ 5 $ (46) $ (33)
Gain (loss) reclassified into operating expenses $ 4 $ (5) $ (5)
Derivatives in net investment hedging relationships:
Loss recognized in other comprehensive income $ — $ (1) $ (5)
For fiscal 2012, 2011 and 2010, there were no amounts of gain or loss reclassified from OCI into income for derivative
financial instruments in net investment hedging relationships, as we did not sell or liquidate (or substantially liquidate) any
of our hedged subsidiaries during the periods.
During fiscal 2011, there was a gain of $1 million recognized in OCI related to treasury rate lock agreements, which is
recognized in income over the life of the 5.95 percent Notes.
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