v3.25.4
Derivative Financial Instruments
 12 Months Ended
Jan. 31, 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 8 provides the fair value and classification of these instruments.
Under our swap agreements, we pay a floating rate equal to the daily Secured Overnight Financing Rate (SOFR) compounded over six months and receive a weighted average fixed rate of 2.8 percent. The agreements have a weighted average remaining maturity of 3.5 years. As of January 31, 2026, and February 1, 2025, interest rate swaps with notional amounts totaling $2.20 billion were designated as fair value hedges, and all were considered to be perfectly effective under the shortcut method during 2025 and 2024.

Effect of Hedges on Debt
(millions)
January 31, 2026February 1, 2025
Long-term debt and other borrowings
Carrying amount of hedged debt$2,139 $2,069 
Cumulative hedging adjustments, included in carrying amount(55)(125)

Effect of Hedges on Net Interest Expense
(millions)
202520242023
Gain (loss) on fair value hedges recognized in Net Interest Expense
Interest rate swaps designated as fair value hedges
$69 $1 $(52)
Hedged debt(69)(1)52 
Gain on cash flow hedges recognized in Net Interest Expense23 23 24 
Total$23 $23 $24