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Derivative Financial Instruments
 12 Months Ended
Feb. 02, 2013
Derivative Financial Instruments  
Derivative Financial Instruments

21. Derivative Financial Instruments

Historically our derivative instruments have primarily consisted of interest rate swaps, which are used to mitigate our interest rate risk. We have counterparty credit risk resulting from our derivative instruments, primarily with large global financial institutions. We monitor this concentration of counterparty credit risk on an ongoing basis. See Note 9 for a description of the fair value measurement of our derivative instruments and their classification on the Consolidated Statements of Financial Position.

As of February 2, 2013 and January 28, 2012, one swap was designated as a fair value hedge for accounting purposes, and no ineffectiveness was recognized in 2012 or 2011.

 
Outstanding Interest Rate Swap Summary
   February 2, 2013
 
   Designated Swap   De-designated Swap
(dollars in millions)
   Pay Floating
   Pay Floating
   Pay Fixed
 

Weighted average rate:

            

Pay

   three-month LIBOR   one-month LIBOR   3.1%

Receive

   1.0%   5.3%   one-month LIBOR

Weighted average maturity

   1.5 years   2.4 years   2.4 years

Notional

   $350   $750   $750
 

   
Derivative Contracts – Type, Statement of Financial Position Classification and Fair Value
(millions)
  
 
   Assets   Liabilities  
 
   Classification
   Feb. 2,
2013
   Jan. 28,
2012
   Classification
   Feb. 2,
2013
   Jan. 28,
2012
  
   

Designated as hedging instrument:

                                  

Interest rate swaps

   Other noncurrent assets   $ 3   $ 3   N/A   $ —   $ —  

Not designated as hedging instruments:

                                  

Interest rate swaps

   Other current assets     4     20   Other current liabilities     2     7  

Interest rate swaps

   Other noncurrent assets     82     111   Other noncurrent liabilities     54     69  
   

Total

       $ 89   $ 134       $ 56   $ 76  
   

Periodic payments, valuation adjustments and amortization of gains or losses on our derivative contracts had the following impact on our Consolidated Statements of Operations:

   
Derivative Contracts – Effect on Results of Operations
(millions)
  
Type of Contract
   Classification of Income/(Expense)
   2012
   2011
   2010
  
   

Interest rate swaps

   Net interest expense   $ 44   $ 41   $ 51  
   

The amount remaining on unamortized hedged debt valuation gains from terminated or de-designated interest rate swaps that will be amortized into earnings over the remaining lives of the underlying debt totaled $75 million, $111 million and $152 million, at the end of 2012, 2011 and 2010, respectively.