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54
Quantitative Disclosures about Derivative Financial Instruments
The fair values of foreign exchange forward contracts are as follows:
($ in millions) January 31,
2015 February 1,
2014
Derivatives designated as cash flow hedges:
Other current assets $ 115 $ 48
Other long-term assets $ 23 $ 6
Accrued expenses and other current liabilities $ — $ 13
Lease incentives and other long-term liabilities $ — $ 1
Derivatives designated as net investment hedges:
Other current assets $ 1 $ 1
Other long-term assets $ — $ —
Accrued expenses and other current liabilities $ — $ —
Lease incentives and other long-term liabilities $ — $ —
Derivatives not designated as hedging instruments:
Other current assets $ 18 $ 9
Other long-term assets $ — $ —
Accrued expenses and other current liabilities $ 1 $ 1
Lease incentives and other long-term liabilities $ — $ —
Total derivatives in an asset position $ 157 $ 64
Total derivatives in a liability position $ 1 $ 15
Substantially all of the unrealized gains and losses from designated cash flow hedges as of January 31, 2015 will
be recognized in income within the next 12 months at the then-current values, which may differ from the fair
values as of January 31, 2015 shown above.
Our foreign exchange forward contracts are subject to master netting arrangements with each of our
counterparties and such arrangements are enforceable in the event of default or early termination of the contract.
We do not elect to offset the fair values of our derivative financial instruments in the Consolidated Balance
Sheets, and as such, the fair values shown above represent gross amounts. The amounts subject to enforceable
master netting arrangements are $1 million and $1 million as of January 31, 2015 and February 1, 2014,
respectively. If we did elect to offset, the net amounts of our derivative financial instruments in an asset position
would be $156 million and $63 million and the net amounts of the derivative financial instruments in a liability
position would be zero and $14 million as of January 31, 2015 and February 1, 2014, respectively.
See Note 7 of Notes to Consolidated Financial Statements for disclosures on the fair value measurements of our
derivative financial instruments.