Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 28, 2017 | Nov. 24, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | J C PENNEY CO INC | |
Entity Central Index Key | 1,166,126 | |
Current Fiscal Year End Date | --02-03 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Oct. 28, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 311,571,536 | |
Trading Symbol | jcp |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Income Statement [Abstract] | ||||
Total net sales | $ 2,807 | $ 2,857 | $ 8,475 | $ 8,586 |
Cost of goods sold (exclusive of depreciation and amortization shown separately below) | 1,852 | 1,795 | 5,498 | 5,422 |
Selling, general and administrative (SG&A) | 840 | 888 | 2,525 | 2,613 |
Pension | 9 | 1 | 3 | 5 |
Depreciation and amortization | 131 | 149 | 420 | 456 |
Real estate and other, net | (2) | 1 | 135 | 48 |
Restructuring and management transition | 52 | 2 | 295 | 17 |
Total costs and expenses | 2,886 | 2,834 | 8,606 | 8,465 |
Operating income/(loss) | (79) | 23 | (131) | 121 |
(Gain)/loss on extinguishment of debt | 0 | 0 | 35 | 30 |
Net interest expense | 78 | 87 | 244 | 275 |
Income/(loss) before income taxes | (157) | (64) | (410) | (184) |
Income tax expense/(benefit) | (29) | 3 | (40) | 7 |
Net income/(loss) | $ (128) | $ (67) | $ (370) | $ (191) |
Earnings/(loss) per share: | ||||
Basic (in dollars per share) | $ (0.41) | $ (0.22) | $ (1.19) | $ (0.62) |
Diluted (in dollars per share) | $ (0.41) | $ (0.22) | $ (1.19) | $ (0.62) |
Weighted average shares – basic | 311.6 | 308.3 | 310.6 | 307.8 |
Weighted average shares – diluted | 311.6 | 308.3 | 310.6 | 307.8 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Net income/(loss) | $ (128) | $ (67) | $ (370) | $ (191) |
Other comprehensive income/(loss), net of tax: | ||||
Net actuarial gain/(loss) arising during the period (1) | 31 | 0 | 36 | 0 |
Prior service credit/(cost) arising during the period (2) | 0 | 0 | 0 | 5 |
Reclassification for net actuarial (gain)/loss (3) | 0 | (3) | 0 | (5) |
Reclassification for amortization of prior service (credit)/cost (4) | 1 | 0 | 3 | 0 |
Net curtailment gain (5) | 0 | 0 | 20 | 0 |
Net settlement gain (6) | 8 | 0 | 8 | 0 |
Gain/(loss) on interest rate swaps (7) | 4 | 2 | (2) | (7) |
Reclassification for periodic settlements (8) | 1 | 2 | 5 | 6 |
Unrealized (gain)/loss | (2) | 0 | 0 | 0 |
Deferred tax valuation allowance | 0 | 1 | 0 | 0 |
Total other comprehensive income/(loss), net of tax | 43 | 2 | 70 | (1) |
Total comprehensive income/(loss), net of tax | (85) | (65) | (300) | (192) |
Net actuarial gain/(loss) arising during the period, tax | (24) | (28) | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Plan Amendments, Tax Effect | (3) | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax | 1 | 3 | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | (4) | (8) | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax | (2) | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Curtailment Gain (Loss), Tax | (11) | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement Gain (Loss) tax | (4) | (4) | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | $ (1) | $ (1) | $ 2 | $ 3 |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) Consolidated Statements of Comprehensive Income/(loss) Parenthetical - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement Gain (Loss) tax | $ (4) | $ (4) | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | (1) | $ (1) | (3) | $ (3) |
pension [Member] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | 1 | 2 | 5 | 6 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 12 | 12 | ||
Selling, General and Administrative Expenses [Member] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | (2) | (6) | ||
Restructuring and management transition [Member] | ||||
Net curtailment gain | 5 | |||
Interest Expense [Member] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | $ 2 | $ 3 | $ 8 | $ 9 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Oct. 28, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | |
Current assets: | ||||
Cash in banks and in transit | $ 175 | $ 125 | $ 172 | |
Cash short-term investments | 10 | 762 | 11 | |
Cash and cash equivalents | 185 | 887 | 183 | |
Merchandise inventory | 3,365 | 2,854 | 3,691 | |
Prepaid expenses and other | 243 | 160 | 254 | |
Total current assets | 3,793 | 3,901 | 4,128 | |
Property and equipment (net of accumulated depreciation of $3,463, $3,802 and $3,842) | 4,316 | 4,599 | 4,651 | |
Assets for Plan Benefits, Defined Benefit Plan | 3 | 0 | 0 | |
Other assets | 632 | 618 | 608 | |
Total Assets | 8,744 | 9,118 | 9,387 | |
Current liabilities: | ||||
Merchandise accounts payable | 1,342 | 977 | 1,493 | |
Other accounts payable and accrued expenses | 1,056 | 1,164 | 1,170 | |
Current portion of capital leases, financing obligation and note payable | 8 | 15 | 15 | |
Current maturities of long-term debt | 232 | 263 | 263 | |
Total current liabilities | 2,638 | 2,419 | 2,941 | |
Long-term capital leases, financing obligation and note payable | 214 | 219 | 9 | |
Long-term debt | 4,039 | 4,339 | 4,509 | |
Deferred taxes | 201 | 204 | 198 | |
Other liabilities | 574 | 583 | 590 | |
Total Liabilities | 7,666 | 7,764 | 8,247 | |
Stockholders’ Equity | ||||
Common stock | [1] | 156 | 154 | 154 |
Additional paid-in capital | 4,701 | 4,679 | 4,676 | |
Reinvested earnings/(accumulated deficit) | (3,376) | (3,006) | (3,198) | |
Accumulated other comprehensive income/(loss) | (403) | (473) | (492) | |
Total Stockholders’ Equity | 1,078 | 1,354 | 1,140 | |
Total Liabilities and Stockholders’ Equity | $ 8,744 | $ 9,118 | $ 9,387 | |
[1] | 1,250 million shares of common stock are authorized with a par value of $0.50 per share. The total shares issued and outstanding were 311.1 million, 307.8 million and 308.3 million as of October 28, 2017, October 29, 2016 and January 28, 2017, respectively. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Oct. 28, 2017 | Jan. 28, 2017 | Oct. 29, 2016 |
Statement of Financial Position [Abstract] | |||
Accumulated depreciation | $ (3,463) | $ (3,842) | $ (3,802) |
Common stock, shares authorized | 1,250,000,000 | 1,250,000,000 | 1,250,000,000 |
Common stock, par value per share | $ 0.50 | $ 0.50 | $ 0.5 |
Common stock, shares issued | 311,100,000 | 308,300,000 | 307,800,000 |
Common stock, shares outstanding | 311,100,000 | 308,300,000 | 307,800,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Cash flows from operating activities | ||||
Net income/(loss) | $ (128) | $ (67) | $ (370) | $ (191) |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||||
Restructuring and management transition | (1) | 0 | 72 | (1) |
Asset impairments and other charges | 4 | 0 | 7 | 2 |
Net gain on sale of non-operating assets | 0 | 0 | 0 | (5) |
Net gain on sale of operating assets | (1) | 0 | (119) | (10) |
(Gain)/loss on extinguishment of debt | 0 | 0 | 35 | 30 |
Depreciation and amortization | 131 | 149 | 420 | 456 |
Benefit plans | (1) | (14) | 95 | (41) |
Stock-based compensation | 7 | 7 | 23 | 27 |
Deferred taxes | (30) | 3 | (49) | 3 |
Change in cash from: | ||||
Inventory | (588) | (710) | (511) | (970) |
Prepaid expenses and other | (2) | (19) | (66) | (87) |
Merchandise accounts payable | 392 | 399 | 365 | 568 |
Current income taxes | 0 | (1) | 3 | (5) |
Accrued expenses and other | (22) | 60 | (88) | (177) |
Net Cash Provided by (Used in) Operating Activities | (239) | (193) | (183) | (401) |
Cash flows from investing activities | ||||
Capital expenditures | (95) | (122) | (287) | (282) |
Net proceeds from sale of non-operating assets | 0 | 0 | 0 | 2 |
Net proceeds from sale of operating assets | 7 | 0 | 153 | 16 |
Joint venture return of investment | 0 | 0 | 9 | 15 |
Net Cash Provided by (Used in) Investing Activities | (88) | (122) | (125) | (249) |
Cash flows from financing activities | ||||
Proceeds from issuance of long-term debt | 0 | 0 | 0 | 2,188 |
Proceeds from borrowings under the credit facility | 249 | 259 | 521 | 259 |
Payments of borrowings under the credit facility | (38) | (97) | (310) | (97) |
Premium On Early Retirement Of Long Term Debt | 0 | 0 | 30 | 0 |
Payments of capital leases, financing obligation and note payable | (2) | (5) | (14) | (24) |
Payments of long-term debt | (11) | (89) | (552) | (2,339) |
Financing costs | 0 | 0 | (9) | (49) |
Proceeds from stock issued under stock plans | 1 | 1 | 4 | 2 |
Tax withholding payments for vested restricted stock | (1) | 0 | (4) | (7) |
Net Cash Provided by (Used in) Financing Activities | 198 | 69 | (394) | (67) |
Net increase/(decrease) in cash and cash equivalents | (129) | (246) | (702) | (717) |
Cash and cash equivalents at beginning of period | 314 | 429 | 887 | 900 |
Cash and cash equivalents at end of period | 185 | 183 | 185 | 183 |
Supplemental cash flow information | ||||
Income taxes received/(paid), net | (1) | (1) | (6) | (9) |
Interest received/(paid), net | (84) | (103) | (247) | (287) |
Supplemental non-cash investing and financing activity | ||||
Increase/(decrease) in other accounts payable related to purchases of property and equipment and software | $ (4) | $ 1 | $ 2 | $ 33 |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 9 Months Ended |
Oct. 28, 2017 | |
Basis of Presentation and Consolidation [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation Basis of Presentation J. C. Penney Company, Inc. is a holding company whose principal operating subsidiary is J. C. Penney Corporation, Inc. (JCP). JCP was incorporated in Delaware in 1924 , and J. C. Penney Company, Inc. was incorporated in Delaware in 2002 , when the holding company structure was implemented. The holding company has no independent assets or operations, and no direct subsidiaries other than JCP. The holding company and its consolidated subsidiaries, including JCP, are collectively referred to in this quarterly report as “we,” “us,” “our,” “ourselves” or the “Company,” unless otherwise indicated. J. C. Penney Company, Inc. is a co-obligor (or guarantor, as appropriate) regarding the payment of principal and interest on JCP’s outstanding debt securities. The guarantee of certain of JCP’s outstanding debt securities by J. C. Penney Company, Inc. is full and unconditional. These unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and in accordance with the rules and regulations of the Securities and Exchange Commission (SEC). The accompanying unaudited Interim Consolidated Financial Statements, in our opinion, include all material adjustments necessary for a fair presentation and should be read in conjunction with the audited Consolidated Financial Statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended January 28, 2017 ( 2016 Form 10-K). We follow substantially the same accounting policies to prepare quarterly financial statements as are followed in preparing annual financial statements. A description of such significant accounting policies is included in the 2016 Form 10-K. The January 28, 2017 financial information was derived from the audited Consolidated Financial Statements, with related footnotes, included in the 2016 Form 10-K. Because of the seasonal nature of the retail business, operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. Fiscal Year Our fiscal year ends on the Saturday closest to January 31. As used herein, “three months ended October 28, 2017 ” and “three months ended October 29, 2016 ” refer to the 13-week periods ended October 28, 2017 and October 29, 2016 , respectively. “Nine months ended October 28, 2017 ” and “nine months ended October 29, 2016 ” refer to the 39-week periods ended October 28, 2017 and October 29, 2016 , respectively. Fiscal year 2017 contains 53 weeks, and fiscal year 2016 contains 52 weeks. Basis of Consolidation All significant inter-company transactions and balances have been eliminated in consolidation. Certain reclassifications were made to prior period amounts to conform to the current period presentation. None of the reclassifications affected our net income/(loss) in any period. |
Change in Accounting for Mercha
Change in Accounting for Merchandise Inventories (Notes) | 9 Months Ended |
Oct. 28, 2017 | |
Change in Accounting for Merchandise Inventories [Abstract] | |
Accounting Changes [Text Block] | Change in Accounting for Merchandise Inventories During the third quarter of fiscal 2017, the Company retired certain legacy systems and implemented a new module of its enterprise resource planning system to account for its merchandise inventories. Along with this implementation, the Company changed its method of accounting for merchandise inventories for its Internet operations from the lower of standard cost (representing average vendor costs) or net realizable value to the lower of cost or market using the retail inventory method (RIM). The change in inventory valuation method with respect to the Company's Internet operations allows the Company to better account for inventory on an enterprise-wide basis and to be more consistent with its omnichannel focus of physical and digital interaction with its customers. The Company believes this will result in greater uniformed costing of inventories and a more consistent matching of cost of goods sold with net sales generated. The effect of the change on the Inventory and Reinvested Earnings/(Accumulated Deficit) balances for the six months ended July 29, 2017 was not material. The Company could not determine the impact of the change to the retail method for its inventory related to its Internet operations for periods prior to fiscal 2017 and therefore could not retroactively apply the change to periods prior to fiscal 2017. |
Effect of New Accounting Standa
Effect of New Accounting Standards | 9 Months Ended |
Oct. 28, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Effect of New Accounting Standards | Effect of New Accounting Standards In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-17, Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes, which requires all deferred tax assets and liabilities to be classified as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. The new standard no longer requires allocating valuation allowances between current and noncurrent deferred tax assets because those allowances are classified as noncurrent. The Company adopted ASU 2015-17 retrospectively in its first quarter ended April 29, 2017. As a result of the retrospective adoption, the Company reclassified deferred tax assets of $208 million and $196 million as of October 29, 2016 and January 28, 2017, respectively, from Deferred taxes (a component of current assets) to a reduction in Deferred taxes (a component of long-term liabilities) on the unaudited Interim Consolidated Balance Sheets. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory , which simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. Under previous guidance, net realizable value is one of several calculations an entity needs to make to measure inventory at the lower of cost or market. However, companies will continue to apply their existing impairment models to inventories that are accounted for using last-in first-out (LIFO) and the RIM. The Company adopted ASU 2015-11 in its first quarter ended April 29, 2017. The adoption of this standard did not have a material impact on our financial condition, results of operations or cash flows as substantially all of our inventory was measured by the RIM impairment model at that time which is considered a continued acceptable method under the new standard. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 changes how companies account for certain aspects of share-based payments to employees. Entities are required to recognize the income tax effects of awards (windfalls or shortfalls) in the income statement when the awards vest or are settled (i.e., additional paid-in capital or APIC pools will be eliminated). The guidance on employers’ accounting for an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation and for forfeitures also changed. The ASU also provides a practical expedient for public companies that allows the use of a simplified method to estimate the expected term for certain awards. The Company adopted ASU 2016-09 in its first quarter ended April 29, 2017. As a result of ASU 2016-09 requiring all windfalls and shortfalls to be recognized when they arise, excess tax benefits that were not previously recognized because the related tax deduction had not reduced current taxes payable have been recorded on a modified retrospective basis through a cumulative effect adjustment to retained earnings as of January 29, 2017. Additionally, the deferred tax assets recognized as a result of this transition guidance have been assessed for realizability and any valuation allowance has been recognized as part of the cumulative effect adjustment to retained earnings also as a result of this transition guidance. Considering these aspects of transitioning to the new guidance, there was no impact to retained earnings as a result of a valuation allowance being recorded against the related deferred tax asset recorded as the cumulative adjustment. In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (a consensus of the FASB Emerging Issues Task Force) (ASU 2016-05). Under the ASU, the novation of a derivative contract (i.e., a change in the counterparty) in a hedge accounting relationship does not, in and of itself, require dedesignation of that hedge accounting relationship. The hedge accounting relationship could continue uninterrupted if all of the other hedge accounting criteria are met, including the expectation that the hedge will be highly effective when the creditworthiness of the new counterparty to the derivative contract is considered. The Company adopted ASU 2016-05 in the first quarter ended April 29, 2017 and the new guidance did not have any impact as the Company had no transactions involving the novation of a derivative. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . ASU 2017-07 requires companies to present the service cost component of net benefit cost in the same line items in which they report compensation cost. Companies will present all other components of net benefit cost outside of operating income, if this subtotal is presented. This guidance is effective for fiscal years beginning after December 15, 2017, and interim periods therein. Early adoption is permitted as of the beginning of an annual period for which financial statements have not been issued or made available for issuance. Entities should apply this guidance retrospectively for the presentation of the service cost component and the other components of net periodic pension cost in the income statement and prospectively, on and after the effective date, for any capitalization of the service cost component of net periodic pension cost in assets. We are currently evaluating the effect that adopting this new accounting guidance will have on our results of operations. In May 2014, the FASB issued ASC Topic 606, Revenue from Contracts with Customers, a replacement of Revenue Recognition (Topic 605) . The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a Company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard is effective for us beginning in fiscal 2018 and we plan to adopt the new standard using the full retrospective approach. We are analyzing the impact of the new standard on our current accounting policies and internal controls and the software changes required to implement the new standard. Although we have not completed all of the required due diligence, we have identified certain impacts to our revenue recognition policies related to gift card breakage and our customer loyalty programs. Whereas we currently recognize gift card breakage, net of required escheatment, 60 months after the gift card is issued, the new standard will require us to recognize gift card breakage, net of required escheatment, over the redemption pattern of gift cards. Additionally, whereas under current standards we utilize the incremental cost method to account for our customer loyalty programs, the new standard will require us to account for our customer loyalty programs as revenue which will require us to defer a portion of our incremental sales to loyalty rewards to be earned by reward members. We are also evaluating the classification of profit sharing income earned in connection with our private label credit card and co-branded MasterCard® programs owned and serviced by Synchrony Financial (Synchrony). Under our agreement with Synchrony, we receive cash payments from Synchrony based upon the performance of the credit card portfolios. Currently the income we earn under our agreement with Synchrony is included as an offset to SG&A expenses. In connection with the adoption of the new standard, we plan to change our presentation to include such income in other revenues. |
Earnings_(Loss) per Share
Earnings/(Loss) per Share | 9 Months Ended |
Oct. 28, 2017 | |
Earnings Per Share [Abstract] | |
Earnings/(Loss) per Share | Earnings/(Loss) per Share Net income/(loss) and shares used to compute basic and diluted earnings/(loss) per share (EPS) are reconciled below: Three Months Ended Nine Months Ended (in millions, except per share data) October 28, October 29, October 28, October 29, Earnings/(loss) Net income/(loss) $ (128 ) $ (67 ) $ (370 ) $ (191 ) Shares Weighted average common shares outstanding (basic shares) 311.6 308.3 310.6 307.8 Adjustment for assumed dilution: Stock options, restricted stock awards and warrant — — — — Weighted average shares assuming dilution (diluted shares) 311.6 308.3 310.6 307.8 EPS Basic $ (0.41 ) $ (0.22 ) $ (1.19 ) $ (0.62 ) Diluted $ (0.41 ) $ (0.22 ) $ (1.19 ) $ (0.62 ) The following average potential shares of common stock were excluded from the diluted EPS calculation because their effect would have been anti-dilutive: Three Months Ended Nine Months Ended (Shares in millions) October 28, October 29, October 28, October 29, Stock options, restricted stock awards and warrant 32.1 32.9 32.9 33.7 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Oct. 28, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt ($ in millions) October 28, 2017 October 29, 2016 January 28, 2017 Issue: 2014 Credit Facility $ — $ 162 $ — 7.95% Debentures Due 2017 — 220 220 2017 Credit Facility 211 — — 5.75% Senior Notes Due 2018 (1) 190 265 265 8.125% Senior Notes Due 2019 (1) 175 400 400 5.65% Senior Notes Due 2020 (1) 400 400 400 2016 Term Loan Facility (Matures in 2023) 1,635 1,677 1,667 5.875% Senior Secured Notes Due 2023 (1) 500 500 500 7.125% Debentures Due 2023 10 10 10 6.9% Notes Due 2026 2 2 2 6.375% Senior Notes Due 2036 (1) 388 388 388 7.4% Debentures Due 2037 313 313 313 7.625% Notes Due 2097 500 500 500 Total debt, excluding unamortized debt issuance costs, capital leases, financing obligation and note payable 4,324 4,837 4,665 Unamortized debt issuance costs (53 ) (65 ) (63 ) Total debt, excluding capital leases, financing obligation and note payable 4,271 4,772 4,602 Less: current maturities 232 263 263 Total long-term debt, excluding capital leases, financing obligation and note payable $ 4,039 $ 4,509 $ 4,339 (1) These debt issuances contain a change of control provision that would obligate us, at the holders’ option, to repurchase the debt at a price of 101%. On May 22, 2017, we paid approximately $334 million aggregate consideration to settle cash tender offers with respect to portions of our outstanding 5.75% Senior Notes due 2018 and 8.125% Senior Notes due 2019 (collectively, the Securities). In doing so, we recognized a loss on extinguishment of debt of $34 million which includes the premium paid over the face value of the accepted Securities of $30 million , reacquisition costs of $1 million and the write off of unamortized debt issuance costs of $3 million . During the second quarter of 2017, we amended our $2.35 billion senior secured asset-based revolving credit facility (2017 Credit Facility) to, among other things, extend the maturity date to June 20, 2022 and to lower the interest rate spread by 75 basis points. All borrowings under the 2017 Credit Facility accrue interest at a rate equal to, at the Company’s option, a base rate or an adjusted LIBOR rate plus a spread. As of October 28, 2017 , outstanding borrowings under the 2017 Credit Facility were $211 million . |
Derivative Financial Instrument
Derivative Financial Instruments (Notes) | 9 Months Ended |
Oct. 28, 2017 | |
Derivative [Line Items] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Financial Instruments We use derivative financial instruments for hedging and non-trading purposes to manage our exposure to changes in interest rates. Use of derivative financial instruments in hedging programs subjects us to certain risks, such as market and credit risks. Market risk represents the possibility that the value of the derivative instrument will change. In an effective hedging relationship, the change in the value of the derivative is offset to a great extent by the change in the value of the underlying hedged item. Credit risk related to derivatives represents the possibility that the counterparty will not fulfill the terms of the contract. The notional, or contractual, amount of our derivative financial instruments is used to measure interest to be paid or received and does not represent our exposure due to credit risk. Credit risk is monitored through established approval procedures, including setting concentration limits by counterparty, reviewing credit ratings and requiring collateral (generally cash) from the counterparty when appropriate. When we use derivative financial instruments for the purpose of hedging our exposure to interest rates, the contract terms of a hedged instrument closely mirror those of the hedged item, providing a high degree of risk reduction and correlation. Contracts that are effective at meeting the risk reduction and correlation criteria are recorded using hedge accounting. If a derivative instrument qualifies for hedge accounting, depending on the nature of the hedge, changes in the fair value of the instrument will either be offset against the change in fair value of the hedged assets, liabilities or firm commitments through earnings or be recognized in accumulated other comprehensive income/(loss) until the hedged item is recognized in earnings. The ineffective portion of an instrument’s change in fair value will be immediately recognized in earnings during the period. Instruments that do not meet the criteria for hedge accounting, or contracts for which we have not elected to apply hedge accounting, are valued at fair value with unrealized gains or losses reported in earnings during the period of change. We have entered into interest rate swap agreements with notional amounts totaling $1,250 million to fix a portion of our variable LIBOR-based interest payments. The interest rate swap agreements have a weighted-average fixed rate of 2.04% , mature on May 7, 2020 and have been designated as cash flow hedges. The fair value of our interest rate swaps are recorded on the unaudited Interim Consolidated Balance Sheets as an asset or a liability (see Note 8). The effective portion of the interest rate swaps' changes in fair values is reported in Accumulated other comprehensive income/(loss) (see Note 9), and the ineffective portion is reported in Net income/(loss). Amounts in Accumulated other comprehensive income/(loss) are reclassified into net income/(loss) when the related interest payments affect earnings. For the periods presented, all of the interest rate swaps were 100% effective. Information regarding the gross amounts of our derivative instruments in the unaudited Interim Consolidated Balance Sheets is as follows: Asset Derivatives at Fair Value Liability Derivatives at Fair Value ($ in millions) Balance Sheet Location October 28, 2017 October 29, 2016 January 28, 2017 Balance Sheet Location October 28, 2017 October 29, 2016 January 28, 2017 Derivatives designated as hedging instruments: Interest rate swaps N/A $ — $ — $ — Other accounts payable and accrued expenses $ 2 $ 2 $ 2 Interest rate swaps N/A — — — Other liabilities 5 29 10 Total derivatives designated as hedging instruments $ — $ — $ — $ 7 $ 31 $ 12 |
Restructuring and Management Tr
Restructuring and Management Transition | 9 Months Ended |
Oct. 28, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Management Transition | Restructuring and Management Transition On March 17, 2017, the Company finalized its plans to close 138 stores to help align the Company's brick-and-mortar presence with its omnichannel network, thereby redirecting capital resources to invest in locations and initiatives that offer the greatest revenue potential. The expected store closures resulted in a $77 million asset impairment charge for store assets with limited future use and a $14 million severance charge for the expected displacement of store associates. During the three months ended October 28, 2017, $52 million in store related closing and other costs such as certain lease obligations were recorded as a result of each respective store ceasing operations. The Company also initiated a Voluntary Early Retirement Program (VERP) for approximately 6,000 eligible associates. Eligibility for the VERP included home office, stores and supply chain personnel who met certain criteria related to age and years of service as of January 31, 2017. The consideration period for eligible associates to accept the VERP ended on March 31, 2017. Based on the approximately 2,800 associates who elected to accept the VERP, we incurred a total charge of $112 million for enhanced retirement benefits. The enhanced retirement benefits increased the projected benefit obligation (PBO) of the Primary Pension Plan and the Supplemental Pension Plans by $88 million and $24 million , respectively. In addition, we incurred curtailment charges of $6 million related to our Primary Pension Plan and $2 million related to Supplemental Pension Plans as a result of the reduction in the expected years of future service related to these plans. As a result of these curtailments, the assets and the liabilities for our Primary Pension Plan and the liabilities of certain Supplemental Pension Plans were remeasured as of March 31, 2017. The discount rate used for the March 31 remeasurements was 4.34% compared to the year-end 2016 discount rate of 4.40% . These events resulted in the PBO of our Primary Pension Plan decreasing by $3 million and the related assets increasing by $34 million and the PBO of our Supplemental Pension Plans increasing by $3 million . The funded status of the Primary Pension Plan was 98% as of the remeasurement date. The components of restructuring and management transition include: • VERP — charges for enhanced retirement benefits, curtailment and other expenses related to the VERP; • Home office and stores — charges for actions to reduce our store and home office expenses including employee termination benefits, store lease termination and impairment charges; • Management transition — charges related to implementing changes within our management leadership team for both incoming and outgoing members of management; and • Other — charges related primarily to contract termination costs and other costs associated with our previous shops strategy and costs related to the closure of certain supply chain locations. The composition of restructuring and management transition charges was as follows: Three Months Ended Nine Months Ended Cumulative Amount From Program Inception Through October 28, 2017 ($ in millions) October 28, October 29, October 28, October 29, VERP $ — $ — $ 122 $ — $ 122 Home office and stores 52 2 173 6 470 Management transition — — — 3 255 Other — — — 8 178 Total $ 52 $ 2 $ 295 $ 17 $ 1,025 Activity for the restructuring and management transition liability for the nine months ended October 28, 2017 was as follows: ($ in millions) Home Office and Stores Other Total January 28, 2017 $ 4 $ 27 $ 31 Charges 101 — 101 Cash payments (61 ) (23 ) (84 ) October 28, 2017 $ 44 $ 4 $ 48 |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Oct. 28, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value, as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Significant observable inputs other than quoted prices in active markets for similar assets and liabilities, such as quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Significant unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. Cash Flow Hedges Measured on a Recurring Basis As of October 28, 2017 , October 29, 2016 and January 28, 2017 , the $7 million , $31 million and $12 million fair value of our cash flow hedges, respectively, are valued in the market using discounted cash flow techniques which use quoted market interest rates in discounted cash flow calculations which consider the instrument's term, notional amount, discount rate and credit risk. Significant inputs to the derivative valuation for interest rate swaps are observable in the active markets and are classified as Level 2 in the fair value measurement hierarchy. Other Non-Financial Assets Measured on a Non-Recurring Basis In connection with the Company announcing its plan to close underperforming department stores in 2017, long-lived assets held and used with a carrying value of $86 million were written down to their fair value of $9 million , resulting in asset impairment charges of $77 million in the nine months ended October 28, 2017. The fair value was determined based on comparable market values of similar properties or on a rental income approach and the significant inputs related to valuing the store related assets are classified as Level 2 in the fair value measurement hierarchy. Other Financial Instruments Carrying values and fair values of financial instruments that are not carried at fair value in the unaudited Interim Consolidated Balance Sheets are as follows: October 28, 2017 October 29, 2016 January 28, 2017 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Total debt, excluding unamortized debt issuance costs, capital leases, financing obligation and note payable $ 4,324 $ 3,683 $ 4,837 $ 4,759 $ 4,665 $ 4,495 The fair value of long-term debt was estimated by obtaining quotes from brokers or was based on current rates offered for similar debt. As of October 28, 2017 , October 29, 2016 and January 28, 2017 , the fair values of cash and cash equivalents and accounts payable approximated their carrying values due to the short-term nature of these instruments. Concentrations of Credit Risk We have no significant concentrations of credit risk. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Oct. 28, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The following table shows the change in the components of stockholders’ equity for the nine months ended October 28, 2017 : (in millions) Number Shares Common Stock Additional Capital Reinvested Deficit) Accumulated Income/(Loss) Total Equity January 28, 2017 308.3 $ 154 $ 4,679 $ (3,006 ) $ (473 ) $ 1,354 Net income/(loss) — — — (370 ) — (370 ) Other comprehensive income/(loss) — — — — 70 70 Stock-based compensation and other 2.8 2 22 — — 24 October 28, 2017 311.1 $ 156 $ 4,701 $ (3,376 ) $ (403 ) $ 1,078 Accumulated Other Comprehensive Income/(Loss) The following table shows the changes in accumulated other comprehensive income/(loss) balances for the nine months ended October 28, 2017 : ($ in millions) Net Actuarial Gain/(Loss) Prior Service Credit/(Cost) Foreign Currency Translation Gain/(Loss) on Cash Flow Hedges Accumulated Other Income/(Loss) January 28, 2017 $ (421 ) $ (33 ) $ (2 ) $ (17 ) $ (473 ) Other comprehensive income/(loss) before reclassifications 53 — — (2 ) 51 Amounts reclassified from accumulated other comprehensive income 8 6 — 5 19 October 28, 2017 $ (360 ) $ (27 ) $ (2 ) $ (14 ) $ (403 ) |
Retirement Benefit Plans
Retirement Benefit Plans | 9 Months Ended |
Oct. 28, 2017 | |
Retirement Benefit Plans [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans The components of net periodic benefit expense/(income) for our non-contributory qualified defined benefit pension plan (Primary Pension Plan) and non-contributory supplemental pension plans were as follows: Three Months Ended Nine Months Ended ($ in millions) October 28, October 29, October 28, October 29, Primary Pension Plan Service cost $ 11 $ 14 $ 32 $ 41 Interest cost 36 38 109 114 Expected return on plan assets (53 ) (54 ) (160 ) (161 ) Amortization of prior service cost/(credit) 1 2 5 6 Settlement expense 12 — 12 — Net periodic benefit expense/(income) $ 7 $ — $ (2 ) $ — Supplemental Pension Plans Service cost $ — $ — $ — $ — Interest cost 2 1 5 5 Net periodic benefit expense/(income) $ 2 $ 1 $ 5 $ 5 Primary and Supplemental Pension Plans Total Service cost $ 11 $ 14 $ 32 $ 41 Interest cost 38 39 114 119 Expected return on plan assets (53 ) (54 ) (160 ) (161 ) Amortization of prior service cost/(credit) 1 2 5 6 Settlement expense 12 — 12 — Net periodic benefit expense/(income) $ 9 $ 1 $ 3 $ 5 During the third quarter of 2017, we recognized settlement expense of $12 million due to higher lump-sum payment activity to retirees primarily as a result of the VERP executed earlier in the year. The lump-sum payments reduced our pension obligation by $195 million . Following these payments and the completion of a remeasurement of plan assets and liabilities, the plan's funded status is 100% as of October 28, 2017. The discount rate used for the remeasurement as of October 28, 2017 was 3.94% compared to the year-end 2016 discount rate of 4.40% . Additionally, the Company had net periodic postretirement income of $6 million and $14 million , respectively, in the three and nine months ended October 29, 2016 related to the Company's noncontributory postretirement medical and dental plan which was included in SG&A expense in the unaudited Interim Consolidated Statements of Operations. The postretirement medical and dental plan was terminated effective December 31, 2016. |
Real Estate and Other, Net
Real Estate and Other, Net | 9 Months Ended |
Oct. 28, 2017 | |
Real Estate and Other, Net [Abstract] | |
Real Estate and Other, Net | Real Estate and Other, Net Real estate and other consists of ongoing operating income from our real estate subsidiaries. Real estate and other also includes net gains from the sale of facilities and equipment that are no longer used in operations, asset impairments, accruals for certain litigation and other non-operating charges and credits. In addition, during the first quarter of 2014, we entered into a joint venture in which we contributed approximately 220 acres of excess property adjacent to our home office facility in Plano, Texas (Home Office Land Joint Venture). The joint venture was formed to develop the contributed property and our proportional share of the joint venture's activities is recorded in Real estate and other, net. The composition of Real estate and other, net was as follows: Three Months Ended Nine Months Ended ($ in millions) October 28, October 29, October 28, October 29, Net gain from sale of non-operating assets $ — $ — $ — $ (5 ) Investment income from Home Office Land Joint Venture (3 ) — (23 ) (29 ) Net gain from sale of operating assets (1 ) — (119 ) (10 ) Other 6 (1 ) 7 (4 ) Total expense/(income) $ 2 $ (1 ) $ (135 ) $ (48 ) Investment Income from Joint Ventures During the third quarter and first nine months of 2017 , the Company had income of $3 million and $23 million , respectively, related to its proportional share of the net income in the Home Office Land Joint Venture and received aggregate cash distributions of $3 million and $31 million , respectively. During the first nine months of 2016 , the Company had income of $29 million related to its proportional share of the net income in the Home Office Land Joint Venture and received an aggregate cash distribution of $44 million . Net Gain from Sale of Operating Assets During the first quarter of 2017, we completed the sale of our Buena Park, California distribution facility for a net sale price of $131 million and recorded a net gain of $111 million . |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 28, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The net tax benefit of $29 million for the three months ended October 28, 2017 consisted of state and foreign tax expenses of $3 million , $1 million of expense related to the deferred tax asset change arising from the tax amortization of indefinite-lived intangible assets and $1 million of expense resulting from state audit settlements, offset by a $30 million benefit relating to other comprehensive income and a net tax benefit of $4 million to adjust the valuation allowance. The net tax benefit of $40 million for the nine months ended October 28, 2017 consisted of state and foreign tax expenses of $10 million and $5 million of expense related to the deferred tax asset change arising from the tax amortization of indefinite-lived intangible assets, offset by a $46 million benefit relating to other comprehensive income and a net tax benefit of $8 million to adjust the valuation allowance and $1 million resulting from state audit settlements. As of October 28, 2017 , we have approximately $2.5 billion of net operating losses (NOLs) available for U.S. federal income tax purposes, which expire in 2032 through 2034 and $63 million of tax credit carryforwards that expire at various dates through 2035. A valuation allowance of $847 million fully offsets the federal deferred tax assets resulting from the NOL and tax credit carryforwards that expire at various dates through 2034. A valuation allowance of $250 million fully offsets the deferred tax assets resulting from the state NOL carryforwards that expire at various dates through 2034. In assessing the need for the valuation allowance, we considered both positive and negative evidence related to the likelihood of realization of the deferred tax assets. As a result of our periodic assessment, our estimate of the realization of deferred tax assets is solely based on the future reversals of existing taxable temporary differences and tax planning strategies that we would make use of to accelerate taxable income to utilize expiring NOL and tax credit carryforwards. Accordingly, in the third quarter and first nine months of 2017 , the valuation allowance was increased by $24 million and $104 million , respectively, to offset the net deferred tax assets created in those periods relating primarily to the increase in NOL carryforwards. |
Litigation, Other Contingencies
Litigation, Other Contingencies and Guarantees | 9 Months Ended |
Oct. 28, 2017 | |
Litigation, Other Contingencies and Guarantees [Abstract] | |
Litigation, Other Contingencies and Guarantees | Litigation and Other Contingencies Litigation Class Action Securities Litigation The Company, Myron E. Ullman, III and Kenneth H. Hannah are parties to the Marcus consolidated purported class action lawsuit in the U.S. District Court, Eastern District of Texas, Tyler Division. The Marcus consolidated complaint is purportedly brought on behalf of persons who acquired our common stock during the period from August 20, 2013 through September 26, 2013, and alleges claims for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Plaintiff claims that the defendants made false and misleading statements and/or omissions regarding the Company’s financial condition and business prospects that caused our common stock to trade at artificially inflated prices. The consolidated complaint seeks class certification, unspecified compensatory damages, including interest, reasonable costs and expenses, and other relief as the court may deem just and proper. Defendants filed a motion to dismiss the consolidated complaint which was denied by the court on September 29, 2015. Defendants filed an answer to the consolidated complaint on November 12, 2015. Plaintiff filed a motion for class certification on January 25, 2016, and on August 29, 2016, a magistrate judge issued a report and recommendation that the motion for class certification be granted. The district court adopted this report and recommendation granting class certification on March 8, 2017. Also, on August 26, 2014, plaintiff Nathan Johnson filed a purported class action lawsuit against the Company, Myron E. Ullman, III and Kenneth H. Hannah in the U.S. District Court, Eastern District of Texas, Tyler Division. The suit is purportedly brought on behalf of persons who acquired our securities other than common stock during the period from August 20, 2013 through September 26, 2013, generally mirrors the allegations contained in the Marcus lawsuit discussed above, and seeks similar relief. On June 8, 2015, plaintiff in the Marcus lawsuit amended the consolidated complaint to include the members of the purported class in the Johnson lawsuit, and on June 10, 2015, the Johnson lawsuit was consolidated into the Marcus lawsuit. The parties have reached an agreement in principle, subject to final court approval, to settle the consolidated securities class action for $97.5 million , which will be funded by insurance. The court granted preliminary approval of the settlement on June 24, 2017. While no assurance can be given as to the ultimate outcome of these matters, we believe that the final resolution of these actions will not have a material adverse effect on our results of operations, financial position, liquidity or capital resources. Shareholder Derivative Litigation In October, 2013, two purported shareholder derivative actions were filed against certain present and former members of the Company’s Board of Directors and executives by the following parties in the U.S. District Court, Eastern District of Texas, Sherman Division: Weitzman (filed October 2, 2013) and Zauderer (filed October 3, 2013). The Company is named as a nominal defendant in both suits. The lawsuits assert claims for breaches of fiduciary duties and unjust enrichment based upon alleged false and misleading statements and/or omissions regarding the Company’s financial condition. The lawsuits seek unspecified compensatory damages, restitution, disgorgement by the defendants of all profits, benefits and other compensation, equitable relief to reform the Company’s corporate governance and internal procedures, reasonable costs and expenses, and other relief as the court may deem just and proper. On October 28, 2013, the Court consolidated the two cases into the Weitzman lawsuit. On January 15, 2014, the Court entered an order staying the derivative suits pending certain events in the class action securities litigation described above. Also, in March 2016, plaintiff Frank Lipsius filed a purported shareholder derivative action against certain present and former members of the Company's Board of Directors and executives in the District Court of Collin County in the State of Texas. The Company is named as a nominal defendant in the suit. The suit generally mirrors the allegations contained in the Weitzman and Zauderer suits discussed above, and seeks similar relief. On May 18, 2017, plaintiff in the Lipsius suit voluntarily dismissed the Collin County action, and on May 19, 2017, refiled the action in the District Court of Dallas County, Texas. On June 8, 2017, the Company’s Board of Directors received a demand from a purported shareholder of the Company, Douglas Carlson, to conduct an investigation regarding potential claims that certain present and former members of the Board of Directors and executives violated federal securities law and/or breached their fiduciary duties to the Company based upon allegations similar to those in the Marcus class action securities litigation and the related shareholder derivative litigation. The Board of Directors has appointed a committee of independent directors to review the demand and make a recommendation to the Board of Directors regarding a response to the demand. While no assurance can be given as to the ultimate outcome of these matters, we believe that the final resolution of these actions will not have a material adverse effect on our results of operations, financial position, liquidity or capital resources. ERISA Class Action Litigation JCP and certain present and former members of JCP's Board of Directors have been sued in a purported class action complaint by plaintiffs Roberto Ramirez and Thomas Ihle, individually and on behalf of all others similarly situated, which was filed on July 8, 2014 in the U.S. District Court, Eastern District of Texas, Tyler Division. The suit alleges that the defendants violated Section 502 of the Employee Retirement Income Security Act (ERISA) by breaching fiduciary duties relating to the J. C. Penney Corporation, Inc. Savings, Profit-Sharing and Stock Ownership Plan (the Plan). The class period is alleged to be between November 1, 2011 and September 27, 2013. Plaintiffs allege that they and others who invested in or held Company stock in the Plan during this period were injured because defendants allegedly made false and misleading statements and/or omissions regarding the Company’s financial condition and business prospects that caused the Company’s common stock to trade at artificially inflated prices. The complaint seeks class certification, declaratory relief, a constructive trust, reimbursement of alleged losses to the Plan, actual damages, attorneys’ fees and costs, and other relief. Defendants filed a motion to dismiss the complaint which was granted in part and denied in part by the court on September 29, 2015. The parties reached a settlement agreement, subject to final court approval, pursuant to which JCP would make available $4.5 million to settle class members’ claims, and the court granted preliminary approval of the settlement on January 3, 2017. While no assurance can be given as to the ultimate outcome of this matter, we believe that the final resolution of this action will not have a material adverse effect on our results of operations, financial position, liquidity or capital resources. Employment Class Action Litigation JCP is a defendant in a class action proceeding entitled Tschudy v. JCPenney Corporation filed on April 15, 2011 in the U.S. District Court, Southern District of California. The lawsuit alleges that JCP violated the California Labor Code in connection with the alleged forfeiture of accrued and vested vacation time under its “My Time Off” policy. The class consists of all JCP employees who worked in California from April 5, 2007 to the present. Plaintiffs amended the complaint to assert additional claims under the Illinois Wage Payment and Collection Act on behalf of all JCP employees who worked in Illinois from January 1, 2004 to the present. After the court granted JCP’s motion to transfer the Illinois claims, those claims are now pending in a separate action in the U.S. District Court, Northern District of Illinois, entitled Garcia v. JCPenney Corporation. The lawsuits seek compensatory damages, penalties, interest, disgorgement, declaratory and injunctive relief, and attorney’s fees and costs. Plaintiffs in both lawsuits filed motions, which the Company opposed, to certify these actions on behalf of all employees in California and Illinois based on the specific claims at issue. On December 17, 2014, the California court granted plaintiffs’ motion for class certification. Pursuant to a motion by the Company, the California court decertified the class on December 9, 2015. On March 30, 2016, the California court granted JCP’s motion for summary judgment. On April 26, 2016, the California plaintiffs filed a notice of appeal. On May 4, 2016, the California court entered judgment for JCP on all plaintiffs’ claims. The Illinois court denied without prejudice plaintiffs' motion for class certification pending the filing of an amended complaint. Plaintiffs filed their amended complaint in the Illinois lawsuit on April 14, 2015 and the Company answered. On July 2, 2015, the Illinois plaintiffs renewed their motion for class certification, which the Illinois court granted on March 8, 2016. The parties have reached a settlement agreement, subject to final court approval, to resolve the California action for $1.75 million . The California court granted final approval of the settlement on November 3, 2017. The parties have also reached a settlement agreement to resolve the Illinois action for $5 million . The Illinois court granted final approval of the settlement on August 9, 2017. Other Legal Proceedings We are subject to various other legal and governmental proceedings involving routine litigation incidental to our business. Accruals have been established based on our best estimates of our potential liability in certain of these matters, including certain matters discussed above, all of which we believe aggregate to an amount that is not material to the Consolidated Financial Statements. These estimates were developed in consultation with in-house and outside counsel. While no assurance can be given as to the ultimate outcome of these matters, we currently believe that the final resolution of these actions, individually or in the aggregate, will not have a material adverse effect on our results of operations, financial position, liquidity or capital resources. Contingencies As of October 28, 2017 , we estimated our total potential environmental liabilities to range from $20 million to $25 million and recorded our best estimate of $24 million in Other accounts payable and accrued expenses and Other liabilities in the unaudited Interim Consolidated Balance Sheet as of that date. This estimate covers potential liabilities primarily related to underground storage tanks, remediation of environmental conditions involving our former drugstore locations and asbestos removal in connection with approved plans to renovate or dispose of certain of our facilities. We continue to assess required remediation and the adequacy of environmental reserves as new information becomes available and known conditions are further delineated. If we were to incur losses at the upper end of the estimated range, we do not believe that such losses would have a material adverse effect on our results of operations, financial position, liquidity or capital resources. As a result of Hurricanes Harvey, Irma and Maria, the Company incurred varying property damage and inventory losses in all of its Puerto Rico stores, in one store in Texas and in one store in Florida. Costs related to the property damage and inventory losses are recoverable (net of deductibles) from property insurance maintained by the Company. We have recorded a $22 million estimated loss for the cost of any property damage and inventory losses and a corresponding receivable of $22 million for expected recoveries from our insurance provider. While no final property and inventory losses or insurance recoveries have been determined and while no assurance can be given as to the ultimate resolution with our insurance provider, we currently believe our estimated loss is the best estimate and such related cost will be recovered by the estimated insurance proceeds. |
Basis of Presentation and Con21
Basis of Presentation and Consolidation (Policy) | 9 Months Ended |
Oct. 28, 2017 | |
Basis of Presentation and Consolidation [Abstract] | |
Consolidation, Policy | J. C. Penney Company, Inc. is a holding company whose principal operating subsidiary is J. C. Penney Corporation, Inc. (JCP). JCP was incorporated in Delaware in 1924 , and J. C. Penney Company, Inc. was incorporated in Delaware in 2002 , when the holding company structure was implemented. The holding company has no independent assets or operations, and no direct subsidiaries other than JCP. The holding company and its consolidated subsidiaries, including JCP, are collectively referred to in this quarterly report as “we,” “us,” “our,” “ourselves” or the “Company,” unless otherwise indicated. J. C. Penney Company, Inc. is a co-obligor (or guarantor, as appropriate) regarding the payment of principal and interest on JCP’s outstanding debt securities. The guarantee of certain of JCP’s outstanding debt securities by J. C. Penney Company, Inc. is full and unconditional. These unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and in accordance with the rules and regulations of the Securities and Exchange Commission (SEC). The accompanying unaudited Interim Consolidated Financial Statements, in our opinion, include all material adjustments necessary for a fair presentation and should be read in conjunction with the audited Consolidated Financial Statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended January 28, 2017 ( 2016 Form 10-K). We follow substantially the same accounting policies to prepare quarterly financial statements as are followed in preparing annual financial statements. A description of such significant accounting policies is included in the 2016 Form 10-K. The January 28, 2017 financial information was derived from the audited Consolidated Financial Statements, with related footnotes, included in the 2016 Form 10-K. Because of the seasonal nature of the retail business, operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. |
Fiscal Period, Policy | Our fiscal year ends on the Saturday closest to January 31. As used herein, “three months ended October 28, 2017 ” and “three months ended October 29, 2016 ” refer to the 13-week periods ended October 28, 2017 and October 29, 2016 , respectively. “Nine months ended October 28, 2017 ” and “nine months ended October 29, 2016 ” refer to the 39-week periods ended October 28, 2017 and October 29, 2016 , respectively. Fiscal year 2017 contains 53 weeks, and fiscal year 2016 contains 52 weeks. |
Reclassification, Policy | Certain reclassifications were made to prior period amounts to conform to the current period presentation. None of the reclassifications affected our net income/(loss) in any period. |
Earnings_(Loss) per Share (Tabl
Earnings/(Loss) per Share (Tables) | 9 Months Ended |
Oct. 28, 2017 | |
Earnings Per Share [Abstract] | |
Earnings/(Loss) per Share | Net income/(loss) and shares used to compute basic and diluted earnings/(loss) per share (EPS) are reconciled below: Three Months Ended Nine Months Ended (in millions, except per share data) October 28, October 29, October 28, October 29, Earnings/(loss) Net income/(loss) $ (128 ) $ (67 ) $ (370 ) $ (191 ) Shares Weighted average common shares outstanding (basic shares) 311.6 308.3 310.6 307.8 Adjustment for assumed dilution: Stock options, restricted stock awards and warrant — — — — Weighted average shares assuming dilution (diluted shares) 311.6 308.3 310.6 307.8 EPS Basic $ (0.41 ) $ (0.22 ) $ (1.19 ) $ (0.62 ) Diluted $ (0.41 ) $ (0.22 ) $ (1.19 ) $ (0.62 ) |
Antidilutive common stock | The following average potential shares of common stock were excluded from the diluted EPS calculation because their effect would have been anti-dilutive: Three Months Ended Nine Months Ended (Shares in millions) October 28, October 29, October 28, October 29, Stock options, restricted stock awards and warrant 32.1 32.9 32.9 33.7 |
Long-Term Debt Long-Term Debt (
Long-Term Debt Long-Term Debt (Tables) | 9 Months Ended |
Oct. 28, 2017 | |
Debt Instrument [Line Items] | |
Schedule of Debt [Table Text Block] | ($ in millions) October 28, 2017 October 29, 2016 January 28, 2017 Issue: 2014 Credit Facility $ — $ 162 $ — 7.95% Debentures Due 2017 — 220 220 2017 Credit Facility 211 — — 5.75% Senior Notes Due 2018 (1) 190 265 265 8.125% Senior Notes Due 2019 (1) 175 400 400 5.65% Senior Notes Due 2020 (1) 400 400 400 2016 Term Loan Facility (Matures in 2023) 1,635 1,677 1,667 5.875% Senior Secured Notes Due 2023 (1) 500 500 500 7.125% Debentures Due 2023 10 10 10 6.9% Notes Due 2026 2 2 2 6.375% Senior Notes Due 2036 (1) 388 388 388 7.4% Debentures Due 2037 313 313 313 7.625% Notes Due 2097 500 500 500 Total debt, excluding unamortized debt issuance costs, capital leases, financing obligation and note payable 4,324 4,837 4,665 Unamortized debt issuance costs (53 ) (65 ) (63 ) Total debt, excluding capital leases, financing obligation and note payable 4,271 4,772 4,602 Less: current maturities 232 263 263 Total long-term debt, excluding capital leases, financing obligation and note payable $ 4,039 $ 4,509 $ 4,339 (1) These debt issuances contain a change of control provision that would obligate us, at the holders’ option, to repurchase the debt at a price of 101%. |
Derivative Financial Instrume24
Derivative Financial Instruments (Tables) | 9 Months Ended |
Oct. 28, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Liabilities at Fair Value [Table Text Block] | Information regarding the gross amounts of our derivative instruments in the unaudited Interim Consolidated Balance Sheets is as follows: Asset Derivatives at Fair Value Liability Derivatives at Fair Value ($ in millions) Balance Sheet Location October 28, 2017 October 29, 2016 January 28, 2017 Balance Sheet Location October 28, 2017 October 29, 2016 January 28, 2017 Derivatives designated as hedging instruments: Interest rate swaps N/A $ — $ — $ — Other accounts payable and accrued expenses $ 2 $ 2 $ 2 Interest rate swaps N/A — — — Other liabilities 5 29 10 Total derivatives designated as hedging instruments $ — $ — $ — $ 7 $ 31 $ 12 |
Restructuring and Management 25
Restructuring and Management Transition Charges (Tables) | 9 Months Ended |
Oct. 28, 2017 | |
Restructuring Reserve [Abstract] | |
Composition of Restructuring and Management Transition Charges | The composition of restructuring and management transition charges was as follows: Three Months Ended Nine Months Ended Cumulative Amount From Program Inception Through October 28, 2017 ($ in millions) October 28, October 29, October 28, October 29, VERP $ — $ — $ 122 $ — $ 122 Home office and stores 52 2 173 6 470 Management transition — — — 3 255 Other — — — 8 178 Total $ 52 $ 2 $ 295 $ 17 $ 1,025 |
Restructuring and Management Transition Charges | Activity for the restructuring and management transition liability for the nine months ended October 28, 2017 was as follows: ($ in millions) Home Office and Stores Other Total January 28, 2017 $ 4 $ 27 $ 31 Charges 101 — 101 Cash payments (61 ) (23 ) (84 ) October 28, 2017 $ 44 $ 4 $ 48 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Oct. 28, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial Instruments Not Carried at Fair Value, Carrying Value and Fair Value | Carrying values and fair values of financial instruments that are not carried at fair value in the unaudited Interim Consolidated Balance Sheets are as follows: October 28, 2017 October 29, 2016 January 28, 2017 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Total debt, excluding unamortized debt issuance costs, capital leases, financing obligation and note payable $ 4,324 $ 3,683 $ 4,837 $ 4,759 $ 4,665 $ 4,495 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Oct. 28, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Components in Stockholders' Equity | The following table shows the change in the components of stockholders’ equity for the nine months ended October 28, 2017 : (in millions) Number Shares Common Stock Additional Capital Reinvested Deficit) Accumulated Income/(Loss) Total Equity January 28, 2017 308.3 $ 154 $ 4,679 $ (3,006 ) $ (473 ) $ 1,354 Net income/(loss) — — — (370 ) — (370 ) Other comprehensive income/(loss) — — — — 70 70 Stock-based compensation and other 2.8 2 22 — — 24 October 28, 2017 311.1 $ 156 $ 4,701 $ (3,376 ) $ (403 ) $ 1,078 |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following table shows the changes in accumulated other comprehensive income/(loss) balances for the nine months ended October 28, 2017 : ($ in millions) Net Actuarial Gain/(Loss) Prior Service Credit/(Cost) Foreign Currency Translation Gain/(Loss) on Cash Flow Hedges Accumulated Other Income/(Loss) January 28, 2017 $ (421 ) $ (33 ) $ (2 ) $ (17 ) $ (473 ) Other comprehensive income/(loss) before reclassifications 53 — — (2 ) 51 Amounts reclassified from accumulated other comprehensive income 8 6 — 5 19 October 28, 2017 $ (360 ) $ (27 ) $ (2 ) $ (14 ) $ (403 ) |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 9 Months Ended |
Oct. 28, 2017 | |
Retirement Benefit Plans [Abstract] | |
Schedule of Pension Plan Expense/(Income) | The components of net periodic benefit expense/(income) for our non-contributory qualified defined benefit pension plan (Primary Pension Plan) and non-contributory supplemental pension plans were as follows: Three Months Ended Nine Months Ended ($ in millions) October 28, October 29, October 28, October 29, Primary Pension Plan Service cost $ 11 $ 14 $ 32 $ 41 Interest cost 36 38 109 114 Expected return on plan assets (53 ) (54 ) (160 ) (161 ) Amortization of prior service cost/(credit) 1 2 5 6 Settlement expense 12 — 12 — Net periodic benefit expense/(income) $ 7 $ — $ (2 ) $ — Supplemental Pension Plans Service cost $ — $ — $ — $ — Interest cost 2 1 5 5 Net periodic benefit expense/(income) $ 2 $ 1 $ 5 $ 5 Primary and Supplemental Pension Plans Total Service cost $ 11 $ 14 $ 32 $ 41 Interest cost 38 39 114 119 Expected return on plan assets (53 ) (54 ) (160 ) (161 ) Amortization of prior service cost/(credit) 1 2 5 6 Settlement expense 12 — 12 — Net periodic benefit expense/(income) $ 9 $ 1 $ 3 $ 5 |
Real Estate and Other, Net Real
Real Estate and Other, Net Real Estate and Other, Net (Tables) | 9 Months Ended |
Oct. 28, 2017 | |
Real Estate and Other, Net [Abstract] | |
Schedule of Other Operating Cost and Expense, by Component [Table Text Block] | The composition of Real estate and other, net was as follows: Three Months Ended Nine Months Ended ($ in millions) October 28, October 29, October 28, October 29, Net gain from sale of non-operating assets $ — $ — $ — $ (5 ) Investment income from Home Office Land Joint Venture (3 ) — (23 ) (29 ) Net gain from sale of operating assets (1 ) — (119 ) (10 ) Other 6 (1 ) 7 (4 ) Total expense/(income) $ 2 $ (1 ) $ (135 ) $ (48 ) |
Basis of Presentation and Con30
Basis of Presentation and Consolidation (Nature of Operations) (Details) | 9 Months Ended |
Oct. 28, 2017 | |
Entity Information [Line Items] | |
State of incorporation | Delaware |
J. C. Penney Corporation, Inc. [Member] | |
Entity Information [Line Items] | |
Year Incorporated | 1,924 |
J. C. Penney Company, Inc. [Member] | |
Entity Information [Line Items] | |
Year Incorporated | 2,002 |
Effect of New Accounting Stan31
Effect of New Accounting Standards (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Oct. 29, 2016USD ($) | Oct. 28, 2017months | Jan. 28, 2017USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New accounting pronouncement or change in accounting principle, effect of adoption, quantification | $ | $ 208 | $ 196 | |
Gift Card Liability, Maximum term | months | 60 | ||
Accounting Standards Update 2015-17 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New accounting pronouncement or change in accounting principle, description | In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-17, Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes, which requires all deferred tax assets and liabilities to be classified as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. The new standard no longer requires allocating valuation allowances between current and noncurrent deferred tax assets because those allowances are classified as noncurrent. The Company adopted ASU 2015-17 retrospectively in its first quarter ended April 29, 2017. As a result of the retrospective adoption, the Company reclassified deferred tax assets of $208 million and $196 million as of October 29, 2016 and January 28, 2017, respectively, from Deferred taxes (a component of current assets) to a reduction in Deferred taxes (a component of long-term liabilities) on the unaudited Interim Consolidated Balance Sheets. | ||
Accounting standards update 2015-11 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New accounting pronouncement or change in accounting principle, description | In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory, which simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. Under previous guidance, net realizable value is one of several calculations an entity needs to make to measure inventory at the lower of cost or market. However, companies will continue to apply their existing impairment models to inventories that are accounted for using last-in first-out (LIFO) and the RIM. The Company adopted ASU 2015-11 in its first quarter ended April 29, 2017. The adoption of this standard did not have a material impact on our financial condition, results of operations or cash flows as substantially all of our inventory was measured by the RIM impairment model at that time which is considered a continued acceptable method under the new standard. | ||
Accounting Standards Update 2016-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New accounting pronouncement or change in accounting principle, description | In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 changes how companies account for certain aspects of share-based payments to employees. Entities are required to recognize the income tax effects of awards (windfalls or shortfalls) in the income statement when the awards vest or are settled (i.e., additional paid-in capital or APIC pools will be eliminated). The guidance on employers’ accounting for an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation and for forfeitures also changed. The ASU also provides a practical expedient for public companies that allows the use of a simplified method to estimate the expected term for certain awards. The Company adopted ASU 2016-09 in its first quarter ended April 29, 2017. As a result of ASU 2016-09 requiring all windfalls and shortfalls to be recognized when they arise, excess tax benefits that were not previously recognized because the related tax deduction had not reduced current taxes payable have been recorded on a modified retrospective basis through a cumulative effect adjustment to retained earnings as of January 29, 2017. Additionally, the deferred tax assets recognized as a result of this transition guidance have been assessed for realizability and any valuation allowance has been recognized as part of the cumulative effect adjustment to retained earnings also as a result of this transition guidance. Considering these aspects of transitioning to the new guidance, there was no impact to retained earnings as a result of a valuation allowance being recorded against the related deferred tax asset recorded as the cumulative adjustment. | ||
Accounting Standards Update 2016-05 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New accounting pronouncement or change in accounting principle, description | In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (a consensus of the FASB Emerging Issues Task Force) (ASU 2016-05). Under the ASU, the novation of a derivative contract (i.e., a change in the counterparty) in a hedge accounting relationship does not, in and of itself, require dedesignation of that hedge accounting relationship. The hedge accounting relationship could continue uninterrupted if all of the other hedge accounting criteria are met, including the expectation that the hedge will be highly effective when the creditworthiness of the new counterparty to the derivative contract is considered. The Company adopted ASU 2016-05 in the first quarter ended April 29, 2017 and the new guidance did not have any impact as the Company had no transactions involving the novation of a derivative. | ||
Accounting standards update 2017-07 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New accounting pronouncement or change in accounting principle, description | In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 requires companies to present the service cost component of net benefit cost in the same line items in which they report compensation cost. Companies will present all other components of net benefit cost outside of operating income, if this subtotal is presented. This guidance is effective for fiscal years beginning after December 15, 2017, and interim periods therein. Early adoption is permitted as of the beginning of an annual period for which financial statements have not been issued or made available for issuance. Entities should apply this guidance retrospectively for the presentation of the service cost component and the other components of net periodic pension cost in the income statement and prospectively, on and after the effective date, for any capitalization of the service cost component of net periodic pension cost in assets. We are currently evaluating the effect that adopting this new accounting guidance will have on our results of operations. | ||
Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New accounting pronouncement or change in accounting principle, description | In May 2014, the FASB issued ASC Topic 606, Revenue from Contracts with Customers, a replacement of Revenue Recognition (Topic 605). The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a Company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard is effective for us beginning in fiscal 2018 and we plan to adopt the new standard using the full retrospective approach. We are analyzing the impact of the new standard on our current accounting policies and internal controls and the software changes required to implement the new standard. Although we have not completed all of the required due diligence, we have identified certain impacts to our revenue recognition policies related to gift card breakage and our customer loyalty programs. Whereas we currently recognize gift card breakage, net of required escheatment, 60 months after the gift card is issued, the new standard will require us to recognize gift card breakage, net of required escheatment, over the redemption pattern of gift cards. Additionally, whereas under current standards we utilize the incremental cost method to account for our customer loyalty programs, the new standard will require us to account for our customer loyalty programs as revenue which will require us to defer a portion of our incremental sales to loyalty rewards to be earned by reward members. We are also evaluating the classification of profit sharing income earned in connection with our private label credit card and co-branded MasterCard® programs owned and serviced by Synchrony Financial (Synchrony). Under our agreement with Synchrony, we receive cash payments from Synchrony based upon the performance of the credit card portfolios. Currently the income we earn under our agreement with Synchrony is included as an offset to SG&A expenses. In connection with the adoption of the new standard, we plan to change our presentation to include such income in other revenues. |
Earnings_(Loss) per Share (Deta
Earnings/(Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income/(loss) | $ (128) | $ (67) | $ (370) | $ (191) |
Weighted average common shares outstanding (basic shares) | 311.6 | 308.3 | 310.6 | 307.8 |
Weighted average shares assuming dilution (diluted shares) | 311.6 | 308.3 | 310.6 | 307.8 |
Basic (in dollars per share) | $ (0.41) | $ (0.22) | $ (1.19) | $ (0.62) |
Diluted (in dollars per share) | $ (0.41) | $ (0.22) | $ (1.19) | $ (0.62) |
Stock options, restricted stock awards and warrant | 32.1 | 32.9 | 32.9 | 33.7 |
Long-Term Debt (Details)
Long-Term Debt (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Oct. 28, 2017USD ($) | Jul. 29, 2017USD ($) | Oct. 29, 2016USD ($) | Oct. 28, 2017USD ($) | Oct. 29, 2016USD ($) | Jan. 28, 2017USD ($) | ||
Debt repurchase, aggregate consideration paid | $ 334 | ||||||
Less: current maturities | $ 232 | $ 263 | $ 232 | $ 263 | $ 263 | ||
Unamortized debt issuance costs | (53) | (65) | (53) | (65) | (63) | ||
Total debt, excluding capital leases, financing obligation and note payable | 4,271 | 4,772 | 4,271 | 4,772 | 4,602 | ||
Total debt, excluding unamortized debt issuance costs, capital leases, financing obligation and note payable | 4,324 | 4,837 | 4,324 | 4,837 | 4,665 | ||
Total long-term debt, excluding capital leases, financing obligation and note payable | 4,039 | 4,509 | 4,039 | 4,509 | 4,339 | ||
(Gain)/loss on extinguishment of debt | 0 | 0 | 35 | 30 | |||
Premium On Early Retirement Of Long Term Debt | 0 | 30 | 0 | 30 | 0 | ||
Payment for Debt Extinguishment or Debt Prepayment Cost | 1 | ||||||
Write off of Deferred Debt Issuance Cost | $ 3 | ||||||
Debt Instrument, Basis Spread on Variable Rate | 75 | ||||||
2014 Credit Facility [Member] | |||||||
Secured Long-term Debt, Noncurrent | $ 0 | 162 | $ 0 | 162 | 0 | ||
Senior Notes 5.65% Due 2020 [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.65% | 5.65% | |||||
Unsecured Long-term Debt, Noncurrent | [1] | $ 400 | 400 | $ 400 | 400 | 400 | |
Senior Notes 5.75% Due 2018 [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | 5.75% | |||||
Unsecured Long-term Debt, Noncurrent | [1] | $ 190 | 265 | $ 190 | 265 | 265 | |
Senior Secured Notes Five Point Eight Seven Five Percent Due2023 [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | 5.875% | |||||
Secured Long-term Debt, Noncurrent | [1] | $ 500 | 500 | $ 500 | 500 | 500 | |
Senior Notes 6.375% Due 2036 [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.375% | 6.375% | |||||
Unsecured Long-term Debt, Noncurrent | [1] | $ 388 | 388 | $ 388 | 388 | 388 | |
Notes 6.9% Due 2026 [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.90% | 6.90% | |||||
Unsecured Long-term Debt, Noncurrent | $ 2 | 2 | $ 2 | 2 | 2 | ||
Debentures 7.125% Due 2023 [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.125% | 7.125% | |||||
Unsecured Long-term Debt, Noncurrent | $ 10 | 10 | $ 10 | 10 | 10 | ||
Debentures 7.4% Due 2037 [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.40% | 7.40% | |||||
Unsecured Long-term Debt, Noncurrent | $ 313 | 313 | $ 313 | 313 | 313 | ||
Notes 7.625% Due 2097 [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.625% | 7.625% | |||||
Unsecured Long-term Debt, Noncurrent | $ 500 | 500 | $ 500 | 500 | 500 | ||
Debentures Seven Point Six Five Percent Due2016 [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.65% | 7.65% | |||||
Debentures Seven Point Nine Five Percent Due2017 [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.95% | 7.95% | |||||
Unsecured Long-term Debt, Noncurrent | $ 0 | 220 | $ 0 | 220 | 220 | ||
2017 Credit Facility [Member] | |||||||
Secured Long-term Debt, Noncurrent | $ 211 | 0 | $ 211 | 0 | 0 | ||
Senior Notes 8.125% due 2019 [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.125% | 8.125% | |||||
Unsecured Long-term Debt, Noncurrent | [1] | $ 175 | 400 | $ 175 | 400 | 400 | |
2016 Term Loan Facility [Member] | |||||||
Secured Long-term Debt, Noncurrent | 1,635 | 1,677 | 1,635 | 1,677 | 1,667 | ||
Notes And Debentures Including Current Maturities [Member] | |||||||
Total debt, excluding unamortized debt issuance costs, capital leases, financing obligation and note payable | $ 4,324 | $ 4,837 | $ 4,324 | $ 4,837 | $ 4,665 | ||
Portions of Senior Notes due 2018 and Senior Notes due 2019 [Member] | |||||||
(Gain)/loss on extinguishment of debt | $ (34) | ||||||
[1] | These debt issuances contain a change of control provision that would obligate us, at the holders’ option, to repurchase the debt at a price of 101%. |
Derivative Financial Instrume34
Derivative Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Oct. 28, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | May 07, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Discussion of Objectives for Using Interest Rate Derivative Instruments | Fix a portion of our variable LIBOR-based interest payments | |||
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 7 | $ 12 | $ 31 | |
Derivative, Notional Amount | $ 1,250 | |||
Derivative, Average Fixed Interest Rate | 2.04% | |||
Description of Reclassification of Interest Rate Cash Flow Hedge Gain (Loss) | Amounts in Accumulated other comprehensive income/(loss) are reclassified into net income/(loss) when the related interest payments affect earnings | |||
Description of Location of Interest Rate Cash Flow Hedge Derivative on Balance Sheet | The fair value of our interest rate swaps are recorded on the unaudited Interim Consolidated Balance Sheets as an asset or a liability (see Note 7). | |||
Description of Location of Gain (Loss) on Interest Rate Cash Flow Hedge Derivative in Financial Statements | The effective portion of the interest rate swaps' changes in fair values is reported in Accumulated other comprehensive income/(loss) (see Note 8), and the ineffective portion is reported in Net income/(loss). | |||
Description of Interest Rate Derivative Activities | We have entered into interest rate swap agreements with notional amounts totaling $1,250 million to fix a portion of our variable LIBOR-based interest payments. The interest rate swap agreements have a weighted-average fixed rate of 2.04%, mature on May 7, 2020 and have been designated as cash flow hedges. | |||
Effectiveness of interest rate swaps | 100.00% | |||
Other Liabilities [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 5 | 10 | 29 | |
Other Accounts Payable and Accrued Expenses [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 2 | $ 2 | $ 2 |
Restructuring and Management 35
Restructuring and Management Transition Cumulative Charges (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Oct. 28, 2017USD ($)Rate | Apr. 29, 2017USD ($)storesemployee | Oct. 29, 2016USD ($) | Oct. 28, 2017USD ($)Rate | Oct. 29, 2016USD ($) | Mar. 31, 2017Rate | Jan. 28, 2017Rate | |
Restructuring Cost and Reserve [Line Items] | |||||||
Severance Costs | $ 14 | ||||||
Number of employees eligible for VERP | employee | 6,000 | ||||||
Number of employees accepted VERP | employee | 2,800 | ||||||
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | $ 112 | ||||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | Rate | 3.94% | 3.94% | 4.34% | 4.40% | |||
Number of stores announced closing | stores | 138 | ||||||
Asset Impairment Charges | $ 77 | $ 77 | |||||
VERP [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Charges | $ 0 | $ 0 | 122 | $ 0 | |||
Cumulative Amount | 122 | 122 | |||||
Home Office And Stores [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Charges | 52 | 2 | 173 | 6 | |||
Restructuring and Related Cost, Incurred Cost | 101 | ||||||
Cumulative Amount | 470 | 470 | |||||
Management Transition [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Charges | 0 | 0 | 0 | 3 | |||
Cumulative Amount | 255 | 255 | |||||
Other Restructuring And Management Transition [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Charges | 0 | 0 | 8 | ||||
Restructuring and Related Cost, Incurred Cost | 0 | ||||||
Cumulative Amount | 178 | 178 | |||||
Total [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Charges | 52 | $ 2 | 295 | $ 17 | |||
Restructuring and Related Cost, Incurred Cost | 101 | ||||||
Cumulative Amount | $ 1,025 | $ 1,025 | |||||
Pension Plan [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Defined benefit plan increase (decrease) due to enhanced retirement benefits | 88 | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | (6) | ||||||
Defined Benefit Plan, Funded Status of Plan, Percent | Rate | 100.00% | 100.00% | 98.00% | ||||
Defined benefit plan incr (decr) in FV of assets due to remeasurement and curtailment | 34 | ||||||
Defined benefit plan obligation increase (decrease) due to remeasurement and curtailment | (3) | ||||||
Supplemental Employee Retirement Plan [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Defined benefit plan increase (decrease) due to enhanced retirement benefits | 24 | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | (2) | ||||||
Defined benefit plan obligation increase (decrease) due to remeasurement and curtailment | $ 3 |
Restructuring and Management 36
Restructuring and Management Transition Charges (Liability Activity) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Home Office And Stores [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
January 28, 2017 | $ 4 | |||
Charges | $ 52 | $ 2 | 173 | $ 6 |
Restructuring and Related Cost, Incurred Cost | 101 | |||
Cash payments | (61) | |||
October 28, 2017 | 44 | 44 | ||
Management Transition [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | 0 | 0 | 3 |
Other Restructuring And Management Transition [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
January 28, 2017 | 27 | |||
Charges | 0 | 0 | 8 | |
Restructuring and Related Cost, Incurred Cost | 0 | |||
Cash payments | (23) | |||
October 28, 2017 | 4 | 4 | ||
Total [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
January 28, 2017 | 31 | |||
Charges | 52 | $ 2 | 295 | $ 17 |
Restructuring and Related Cost, Incurred Cost | 101 | |||
Cash payments | (84) | |||
October 28, 2017 | $ 48 | $ 48 |
Fair Value Disclosures (Other F
Fair Value Disclosures (Other Financial Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Apr. 29, 2017 | Oct. 28, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | |
Fair Value Disclosures [Abstract] | ||||
Total debt, excluding unamortized debt issuance costs, capital leases, financing obligation and note payable, Fair Value | $ 3,683 | $ 4,495 | $ 4,759 | |
Total debt, excluding unamortized debt issuance costs, capital leases, financing obligation and note payable, carrying amount | 4,324 | 4,665 | 4,837 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying value of long-lived assets impaired, fair value disclosure | 86 | |||
Asset Impairment Charges | $ 77 | 77 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Liability | 7 | $ 12 | $ 31 | |
Assets, Fair Value Disclosure, Nonrecurring | $ 9 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
January 28, 2017, shares | 308.3 | |||
January 28, 2017 | $ 1,354 | |||
Net income/(loss) | $ (128) | $ (67) | (370) | $ (191) |
Other comprehensive income/(loss) | $ 43 | $ 2 | 70 | $ (1) |
Stock-based compensation and other | $ 24 | |||
July 29, 2017, shares | 311.1 | 307.8 | 311.1 | 307.8 |
October 28, 2017 | $ 1,078 | $ 1,078 | ||
Common Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
January 28, 2017, shares | 308.3 | |||
January 28, 2017 | $ 154 | |||
Stock-based compensation, shares | 2.8 | |||
Stock-based compensation and other | $ 2 | |||
July 29, 2017, shares | 311.1 | 311.1 | ||
October 28, 2017 | $ 156 | $ 156 | ||
Additional Paid-in Capital [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
January 28, 2017 | 4,679 | |||
Stock-based compensation and other | 22 | |||
October 28, 2017 | 4,701 | 4,701 | ||
Reinvested Earnings/(Accumulated Deficit) [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
January 28, 2017 | (3,006) | |||
Net income/(loss) | (370) | |||
October 28, 2017 | (3,376) | (3,376) | ||
Accumulated Other Comprehensive Income/(Loss) [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
January 28, 2017 | (473) | |||
Other comprehensive income/(loss) | 70 | |||
October 28, 2017 | $ (403) | $ (403) |
Stockholders' Equity (Component
Stockholders' Equity (Components of Other Comprehensive Income/ (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Stockholders' Equity Note [Abstract] | ||||
Total, net of tax | $ 43 | $ 2 | $ 70 | $ (1) |
Stockholders' Equity (Accumulat
Stockholders' Equity (Accumulated Other Comprehensive Income/ (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
January 28, 2017 | $ (473) | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 0 | |||
Reclassification for net actuarial (gain)/loss (3) | $ 0 | $ (3) | 0 | $ (5) |
Amounts reclassified from accumulated other comprehensive income, Prior Service Credit/(Cost), net of tax | 1 | 0 | 3 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 1 | 2 | 5 | 6 |
Net current-period other comprehensive income | 43 | 2 | 70 | (1) |
July 29, 2017 | (403) | $ (492) | (403) | $ (492) |
Net Actuarial Gain/(Loss) [Member] | ||||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
January 28, 2017 | (421) | |||
Other comprehensive income (loss) before reclassifications, gain (loss) on cash flow hedges, net of tax | 53 | |||
Reclassification for net actuarial (gain)/loss (3) | 8 | |||
July 29, 2017 | (360) | (360) | ||
Prior Service Credit/(Cost) [Member] | ||||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
January 28, 2017 | (33) | |||
Other comprehensive income (loss) before reclassifications, gain (loss) on cash flow hedges, net of tax | 0 | |||
Amounts reclassified from accumulated other comprehensive income, Prior Service Credit/(Cost), net of tax | 6 | |||
July 29, 2017 | (27) | (27) | ||
Accumulated Translation Adjustment [Member] | ||||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
January 28, 2017 | (2) | |||
July 29, 2017 | (2) | (2) | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
January 28, 2017 | (17) | |||
Other comprehensive income (loss) before reclassifications, gain (loss) on cash flow hedges, net of tax | (2) | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 5 | |||
July 29, 2017 | (14) | (14) | ||
Accumulated Other Comprehensive Income/(Loss) [Member] | ||||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
January 28, 2017 | (473) | |||
Other comprehensive income (loss) before reclassifications, gain (loss) on cash flow hedges, net of tax | 51 | |||
Amounts reclassified from accumulated other comprehensive income, Accumulated Other Comprehensive Income/(Loss) | 19 | |||
Net current-period other comprehensive income | 70 | |||
July 29, 2017 | $ (403) | $ (403) |
Stockholders' Equity (Reclassif
Stockholders' Equity (Reclassifications Out of Accumulated Other Comprehensive Income/ (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Total, net of tax | $ 43 | $ 2 | $ 70 | $ (1) |
Retirement Benefit Plans (Net P
Retirement Benefit Plans (Net Periodic Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | Mar. 31, 2017 | Jan. 28, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.94% | 3.94% | 4.34% | 4.40% | ||
Net periodic benefit expense/(income) | $ 9 | $ 1 | $ 3 | $ 5 | ||
Other Postretirement Benefits Plan [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Net periodic benefit expense/(income) | (6) | (14) | ||||
Primary Pension Plan | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ (195) | |||||
Defined Benefit Plan, Funded Status of Plan, Percent | 100.00% | 100.00% | 98.00% | |||
Service cost | $ 11 | 14 | $ 32 | 41 | ||
Interest cost | 36 | 38 | 109 | 114 | ||
Expected return on plan assets | (53) | (54) | (160) | (161) | ||
Amortization of prior service cost/(credit) | 1 | 2 | 5 | 6 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | (12) | (12) | ||||
Net periodic benefit expense/(income) | 7 | 0 | (2) | 0 | ||
Supplemental Pension Plans | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Service cost | 0 | 0 | 0 | 0 | ||
Interest cost | 2 | 1 | 5 | 5 | ||
Net periodic benefit expense/(income) | 2 | 1 | 5 | 5 | ||
Primary and Supplemental Pension Plans Total [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Service cost | 11 | 14 | 32 | 41 | ||
Interest cost | 38 | 39 | 114 | 119 | ||
Expected return on plan assets | (53) | (54) | (160) | (161) | ||
Amortization of prior service cost/(credit) | 1 | 2 | 5 | 6 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | (12) | (12) | ||||
Net periodic benefit expense/(income) | $ 9 | $ 1 | $ 3 | $ 5 |
Real Estate and Other, Net (Det
Real Estate and Other, Net (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 28, 2017USD ($) | Apr. 29, 2017USD ($) | Oct. 29, 2016USD ($) | Oct. 28, 2017USD ($) | Oct. 29, 2016USD ($) | May 03, 2014a | |
Net gain from sale of operating assets [Line Items] | ||||||
Joint venture land (in acres) | a | 220 | |||||
Real estate and other (income)/expense, net | $ 2 | $ (1) | $ (135) | $ (48) | ||
Net gain from sale of non-operating assets | 0 | 0 | 0 | 5 | ||
Investment income from Home Office Land Joint Venture | (3) | 0 | (23) | (29) | ||
(Gain) Loss on Disposition of Property Plant Equipment | (1) | 0 | (119) | (10) | ||
Home Office Land Joint Venture, aggregate cash distribution | 3 | 31 | 44 | |||
Net gain from sale of operating assets | $ (111) | |||||
Net sale price of Buena Park CA distribution facility | $ 131 | |||||
Other Cost and Expense, Operating | $ 6 | $ (1) | $ 7 | $ (4) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Income Tax Contingency [Line Items] | ||||
Income tax expense/(benefit) | $ 29 | $ (3) | $ 40 | $ (7) |
Increase to tax valuation allowance for deferred tax assets | 24 | $ 104 | ||
Valuation allowance, methodologies and assumptions | In assessing the need for the valuation allowance, we considered both positive and negative evidence related to the likelihood of realization of the deferred tax assets. As a result of our periodic assessment, our estimate of the realization of deferred tax assets is solely based on the future reversals of existing taxable temporary differences and tax planning strategies that we would make use of to accelerate taxable income to utilize expiring NOL and tax credit carryforwards. Accordingly, in the third quarter and first nine months of 2017, the valuation allowance was increased by $24 million and $104 million, respectively, to offset the net deferred tax assets created in those periods relating primarily to the increase in NOL carryforwards. | |||
Other Comprehensive Income Tax Benefit | $ 30 | $ 46 | ||
State Audit Settlement | 1 | 1 | ||
Net operating loss carryforwards | $ 2,500 | $ 2,500 | ||
State and foreign [Member] | ||||
Income Tax Contingency [Line Items] | ||||
State and foreign tax expenses | (3) | (10) | ||
Amortization of certain indefinite lived intangible assets [Member] | ||||
Income Tax Contingency [Line Items] | ||||
State and foreign tax expenses | (1) | (5) | ||
Net tax benefit to adjust the valuation allowance [Member] | ||||
Income Tax Contingency [Line Items] | ||||
State and foreign tax expenses | (4) | (8) | ||
Federal [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carryforwards | 63 | 63 | ||
Federal tax authority [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Valuation allowance | 847 | 847 | ||
State Tax Authority [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Valuation allowance | $ 250 | $ 250 |
Litigation, Other Contingenci45
Litigation, Other Contingencies and Guarantees (Narrative) (Details) $ in Thousands | Oct. 28, 2017USD ($) |
Loss Contingencies [Line Items] | |
Recorded Best Estimate Environmental Liabilities | $ 24,000 |
Loss Contingency Accrual | 22,000 |
Estimated Insurance Recoveries | 22,000 |
Class Action Securities Litigation - Amount to be Funded by Insurance [Member] | |
Loss Contingencies [Line Items] | |
Estimated Litigation Liability | 97,500 |
ERISA Class Action Litigation [Member] | |
Loss Contingencies [Line Items] | |
Estimated Litigation Liability | 4,500 |
Employment Class Action Litigation CA [Member] | |
Loss Contingencies [Line Items] | |
Estimated Litigation Liability | 1,750 |
Employment Class Action Litigation IL [Member] | |
Loss Contingencies [Line Items] | |
Estimated Litigation Liability | 5,000 |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Estimate Potential Environmental Liabilities | 20,000 |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Estimate Potential Environmental Liabilities | $ 25,000 |