Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Mar. 16, 2020 | Aug. 03, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 1, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 1-15274 | ||
Entity Registrant Name | J. C. PENNEY COMPANY, INC. | ||
Entity Central Index Key | 0001166126 | ||
Current Fiscal Year End Date | --02-01 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-0037077 | ||
Entity Address, Address Line One | 6501 Legacy Drive | ||
Entity Address, City or Town | Plano | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75024-3698 | ||
City Area Code | 972 | ||
Local Phone Number | 431-1000 | ||
Title of 12(g) Security | None | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 227,240,130 | ||
Entity Common Stock, Shares Outstanding | 320,981,685 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Documents from which portions are incorporated by reference Parts of the Form 10-K into which incorporated | ||
NEW YORK STOCK EXCHANGE, INC. [Member] | Common Stock of 50 cents par value | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock of 50 cents par value | ||
Trading Symbol | JCP | ||
Security Exchange Name | NYSE | ||
NEW YORK STOCK EXCHANGE, INC. [Member] | Preferred Stock Purchase Rights | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Preferred Stock Purchase Rights | ||
Trading Symbol | JCP | ||
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Total net sales | $ 10,716 | $ 11,664 | $ 12,554 |
Credit income and other | 451 | 355 | 319 |
Total revenues | 11,167 | 12,019 | 12,873 |
Costs and expenses/(income): | |||
Cost of goods sold (exclusive of depreciation and amortization shown separately below) | 7,013 | 7,870 | 8,208 |
Selling, general and administrative (SG&A) | 3,585 | 3,596 | 3,845 |
Depreciation and amortization | 544 | 556 | 570 |
Real estate and other, net | (15) | (19) | (146) |
Restructuring and management transition | 48 | 22 | 184 |
Total costs and expenses | 11,175 | 12,025 | 12,661 |
Operating income/(loss) | (8) | (6) | 212 |
Other components of net periodic pension and postretirement benefit cost/(income) | (35) | (71) | 98 |
(Gain)/loss on extinguishment of debt | (1) | 23 | 33 |
Net interest expense | 293 | 313 | 325 |
Income/(loss) before income taxes | (265) | (271) | (244) |
Income tax expense/(benefit) | 3 | (16) | (126) |
Net income/(loss) | $ (268) | $ (255) | $ (118) |
Earnings/(loss) per share: | |||
Basic earnings/(loss) per common share | $ (0.84) | $ (0.81) | $ (0.38) |
Diluted earnings/loss per common share | $ (0.84) | $ (0.81) | $ (0.38) |
Weighted average shares – basic | 320.2 | 315.7 | 311.1 |
Weighted average shares – diluted | 320.2 | 315.7 | 311.1 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Millions | 12 Months Ended | |||||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||||
Statement of Comprehensive Income [Abstract] | ||||||
Net income/(loss) | $ (268) | $ (255) | $ (118) | |||
Other comprehensive income/(loss), net of tax: | ||||||
Net actuarial gain/(loss) arising during the period (1) | [1] | (84) | 38 | 67 | ||
Reclassification of net actuarial (gain)/loss from a settlement (2) | [2] | 8 | 4 | 8 | ||
Reclassification for net actuarial (gain)/loss (3) | [3] | 10 | (2) | 16 | ||
Reclassification for amortization of prior service (credit)/cost (4) | [4] | 7 | 4 | 4 | ||
Reclassification of prior service (credit)/cost from a curtailment (5) | 0 | [5] | 0 | [5] | 3 | |
Gain/(loss) on interest rate swaps (6) | [6] | (48) | (9) | 6 | ||
Reclassification for periodic settlements (7) | [7] | (5) | (2) | 7 | ||
Unrealized gain/(loss) | 0 | (1) | 2 | |||
Total other comprehensive income/(loss), net of tax | (112) | 32 | 113 | |||
Total comprehensive income/(loss), net of tax | (380) | (223) | (5) | |||
Other Comprehensive Income Loss Reclassification Pension And Other Postretirement Benefit Plans Settlement Adjustment In Net Periodic Benefit Cost Tax Amount | (2) | (3) | (5) | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 12 | 4 | (3) | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax | (2) | 1 | (9) | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax | (3) | (3) | (3) | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Pre-tax Amount Due to Curtailment | 27 | |||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans Reclassification of Prior Service (Credit)/Cost from a Curtailment, Tax | (1) | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | $ 1 | $ 0 | $ (3) | |||
[1] | Net of $22 million of tax in 2019 offset by a deferred tax valuation allowance of $(22) million , $(10) million of tax in 2018 and $(36) million of tax in 2017. For 2017, the amount includes a $27 million pre-tax gain related to curtailment. | |||||
[2] | Net of $(2) million of tax in 2019 offset by a deferred tax valuation allowance of $2 million , $(3) million of tax in 2018 and $(5) million of tax in 2017. Pre-tax amounts of $8 million , $7 million and $13 million were recognized in Other components of net periodic pension and postretirement benefit cost/(income) in the Consolidated Statement of Operations in 2019, 2018 and 2017, respectively. | |||||
[3] | Net of $(2) million of tax in 2019 offset by a deferred tax valuation allowance of $2 million , $1 million of tax in 2018 and $(9) million of tax in 2017. Pre-tax amounts of $10 million in 2019, $(3) million in 2018 and $25 million in 2017 were recognized in Other components of net periodic pension and postretirement benefit cost/(income) in the Consolidated Statement of Operations. | |||||
[4] | Net of $(3) million of tax in 2019 offset by a deferred tax valuation allowance of $3 million , $(3) million of tax in 2018 and $(3) million of tax in 2017. Pre-tax amounts of $7 million in 2019, 2018 and 2017 were recognized in Other components of net periodic pension and postretirement benefit cost/(income) in the Consolidated Statement of Operations. | |||||
[5] | Net of $(1) million of tax in 2017. Pre-tax prior service cost of $5 million related to the curtailment is included in Other components of net periodic pension and postretirement benefit cost/(income) in the Consolidated Statements of Operations in 2017. | |||||
[6] | Net of $ 12 million of tax in 2019 offset by a deferred tax valuation allowance of $(12) million , $4 million of tax in 2018 and $(3) million of tax in 2017. | |||||
[7] | Net of $1 million of tax in 2019 offset by a deferred tax valuation allowance of $(1) million , $0 million of tax in 2018 and $(3) million of tax in 2017. Pre-tax amounts of $(5) million in 2019, $(2) million in 2018 and $10 million in 2017 were recognized in Net interest expense in the Consolidated Statement of Operations. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) Parenthetical - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Net actuarial gain/(loss) arising during the period, tax | $ (22) | $ 10 | $ 36 |
Other Comprehensive Income Loss Reclassification Pension And Other Postretirement Benefit Plans Settlement Adjustment In Net Periodic Benefit Cost Tax Amount | (2) | (3) | (5) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax | (2) | 1 | (9) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax | (3) | (3) | (3) |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 12 | 4 | (3) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 1 | 0 | (3) |
Other components of net periodic pension and postretirement cost/(income) [Member] | |||
Other Comprehensive Income Loss Reclassification Pension And Other Postretirement Benefit Plans Settlement Adjustment In Net Periodic Benefit Cost Gross Amount | 8 | 7 | 13 |
Reclassification for amortization of net actuarial (gain)/loss included in net periodic benefit expense/(income), gross amount | (10) | 3 | (25) |
Amortization of prior service (credit)/cost | 7 | 7 | 7 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), after Tax | 5 | ||
Interest Expense [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (5) | $ (2) | $ 10 |
Reclassification of periodic settlements [Member] | |||
Deferred tax valuation allowance | (1) | ||
Net Actuarial Gain Loss [Member] | |||
Deferred tax valuation allowance | (22) | ||
Reclassification of net actuarial (gain)/loss from a settlement [Member] | |||
Deferred tax valuation allowance | 2 | ||
Prior Service Credit Cost [Member] | |||
Deferred tax valuation allowance | 3 | ||
Interest Rate Swap [Member] | |||
Deferred tax valuation allowance | $ (12) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 | |
Statement of Financial Position [Abstract] | |||
Operating | $ 67 | $ 0 | |
Current assets: | |||
Cash in banks and in transit | 108 | 109 | |
Cash short-term investments | 278 | 224 | |
Cash and cash equivalents | 386 | 333 | |
Merchandise inventory | 2,166 | 2,437 | |
Prepaid expenses and other | 174 | 189 | |
Total current assets | 2,726 | 2,959 | |
Property and equipment, net | 3,488 | 3,938 | |
Operating lease assets | 998 | 0 | |
Prepaid pension | 120 | 147 | |
Other assets | 657 | 677 | |
Total Assets | 7,989 | 7,721 | |
Current liabilities: | |||
Merchandise accounts payable | 786 | 847 | |
Other accounts payable and accrued expenses | 931 | 995 | |
Current portion of finance leases and note payable | 1 | 8 | |
Current maturities of long-term debt | 147 | 92 | |
Total current liabilities | 1,932 | 1,942 | |
Operating | 1,108 | 0 | |
Long-term finance leases and note payable | 0 | 204 | |
Long-term debt | 3,574 | 3,716 | |
Deferred taxes | 116 | 131 | |
Other liabilities | 430 | 558 | |
Total Liabilities | 7,160 | 6,551 | |
Stockholders' Equity | |||
Common stock (1) | [1] | 160 | 158 |
Additional paid-in capital | 4,723 | 4,713 | |
Reinvested earnings/(accumulated deficit) | (3,667) | (3,373) | |
Accumulated other comprehensive income/(loss) | (387) | (328) | |
Total Stockholders’ Equity | 829 | 1,170 | |
Total Liabilities and Stockholders’ Equity | $ 7,989 | $ 7,721 | |
[1] | 1.25 billion shares of common stock are authorized with a par value of $0.50 per share. The total shares issued and outstanding were 320.5 million and 316.1 million as of February 1, 2020 and February 2, 2019 , respectively. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Feb. 01, 2020 | Feb. 02, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, authorized | 1,250,000,000 | |
Common stock, par value per share | $ 0.50 | |
Common stock, issued and outstanding | 320,500,000 | 316,100,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock of 50 cents par value | Additional Paid-in Capital [Member] | Reinvested Earnings/(Loss) [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] |
Balance as of the beginning of the period at Jan. 28, 2017 | $ 1,360 | $ 154 | $ 4,679 | $ (3,000) | $ (473) |
Shares balance as of the beginning of the period at Jan. 28, 2017 | 308.3 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income/(loss) | (118) | $ 0 | 0 | (118) | 0 |
Other comprehensive income/(loss) | 113 | 0 | 0 | 0 | 113 |
Stock-based compensation and other | 28 | $ 2 | 26 | ||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 0 | 0 | |||
Stock-based compensation, shares | 3.7 | ||||
Balance as of the end of the period at Feb. 03, 2018 | 1,383 | $ 156 | 4,705 | (3,118) | (360) |
Shares balance as of the end of the period at Feb. 03, 2018 | 312 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income/(loss) | (255) | $ 0 | 0 | (255) | 0 |
Other comprehensive income/(loss) | 32 | 0 | 0 | 0 | 32 |
Stock-based compensation and other | 10 | $ 2 | 8 | ||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 0 | 0 | |||
Stock-based compensation, shares | 4.1 | ||||
Balance as of the end of the period at Feb. 02, 2019 | 1,170 | $ 158 | 4,713 | (3,373) | (328) |
Shares balance as of the end of the period at Feb. 02, 2019 | 316.1 | ||||
Cumulative Effect on Retained Earnings, Net of Tax | 27 | $ 0 | 0 | (26) | 53 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income/(loss) | (268) | 0 | 0 | 0 | |
Other comprehensive income/(loss) | (112) | 0 | 0 | 0 | (112) |
Stock-based compensation and other | 12 | $ 2 | 10 | ||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 0 | 0 | |||
Stock-based compensation, shares | 4.4 | ||||
Balance as of the end of the period at Feb. 01, 2020 | $ 829 | $ 160 | $ 4,723 | $ (3,667) | $ (387) |
Shares balance as of the end of the period at Feb. 01, 2020 | 320.5 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Cash flows from operating activities | ||||
Net income/(loss) | $ (268) | $ (255) | $ (118) | |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||||
Restructuring and management transition | 23 | (3) | 74 | |
Asset impairments and other charges | 0 | 56 | 6 | |
Net gain on sale of non-operating assets | (1) | 0 | 0 | |
Net gain from sale of operating assets | (8) | (67) | (119) | |
(Gain)/loss on extinguishment of debt | (1) | 23 | 33 | |
Depreciation and amortization | 544 | 556 | 570 | |
Benefit plans | (37) | (65) | 106 | |
Stock-based compensation | [1] | 11 | 10 | 25 |
Other comprehensive income tax benefits | 0 | (11) | (60) | |
Deferred taxes | (6) | (13) | (63) | |
Change in cash from: | ||||
Inventory | 271 | 366 | 93 | |
Prepaid expenses and other assets | (9) | 1 | (15) | |
Merchandise accounts payable | (61) | (126) | (4) | |
Income taxes | 0 | 0 | (12) | |
Accrued expenses and other | (30) | (113) | (62) | |
Net cash provided by/(used in) operating activities | 428 | 359 | 454 | |
Cash flows from investing activities | ||||
Capital expenditures | (309) | (392) | (395) | |
Proceeds from sale of non-operating assets | 1 | 0 | 0 | |
Proceeds from sale of operating assets | 26 | 144 | 154 | |
Joint venture return of investment | 0 | 3 | 9 | |
Insurance proceeds received for damage to property and equipment | 6 | 1 | 3 | |
Net cash provided by/(used in) investing activities | (276) | (244) | (229) | |
Cash flows from financing activities | ||||
Proceeds from issuance of long-term debt | 0 | 400 | 0 | |
Proceeds from borrowings under the credit facility | 2,645 | 3,895 | 804 | |
Payments of borrowings under the credit facility | (2,645) | (3,895) | (804) | |
Premium on early retirement of debt | 0 | (20) | (30) | |
Payments of finance leases and note payable | (3) | (6) | (16) | |
Payments of long-term debt | (97) | (607) | (599) | |
Financing costs | 0 | (7) | (9) | |
Proceeds from stock issued under stock plans | 2 | 3 | 5 | |
Tax withholding payments for vested restricted stock | (1) | (3) | (5) | |
Net cash provided by/(used in) financing activities | (99) | (240) | (654) | |
Net increase/(decrease) in cash and cash equivalents | 53 | (125) | (429) | |
Cash and cash equivalents at beginning of period | 333 | 458 | 887 | |
Cash and cash equivalents at end of period | $ 386 | $ 333 | $ 458 | |
[1] | Excludes $2 million of stock-based compensation costs reported in restructuring and management transition charges (Note 18 ). |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 12 Months Ended |
Feb. 01, 2020 | |
Basis of Presentation and Consolidation [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation Nature of Operations Our Company was founded by James Cash Penney in 1902 and has grown to be a major national retailer, operating 846 department stores in 49 states and Puerto Rico, as well as through our eCommerce website at jcp.com and our mobile application. We sell family apparel and footwear, accessories, fine and fashion jewelry, beauty products through Sephora inside JCPenney, and home furnishings. In addition, our department stores provide services, such as styling salon, optical, portrait photography and custom decorating, to customers. Basis of Presentation and Consolidation The Consolidated Financial Statements present the results of J. C. Penney Company, Inc. and our subsidiaries (the Company or JCPenney). All significant inter-company transactions and balances have been eliminated in consolidation. We are 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 direct subsidiaries other than JCP, and has no independent assets or operations. The Company is a co-obligor (or guarantor, as appropriate) regarding the payment of principal and interest on JCP’s outstanding debt securities. We guarantee certain of JCP’s outstanding debt securities fully and unconditionally. Fiscal Year Our fiscal year ends on the Saturday closest to January 31. Unless otherwise stated, references to years in this report relate to fiscal years rather than to calendar years. Fiscal Year Ended Weeks 2019 February 1, 2020 52 2018 February 2, 2019 52 2017 February 3, 2018 53 Use of Estimates and Assumptions The preparation of financial statements, in conformity with generally accepted accounting principles in the United States of America (GAAP), requires us to make assumptions and use estimates that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions are subject to inherent uncertainties, which may result in actual amounts differing from reported amounts. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. None of the reclassifications affected our net income/(loss) in any period. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Revenue Our contracts with customers primarily consist of sales of merchandise and services at the point of sale, sales of gift cards to a customer for a future purchase, customer loyalty rewards that provide discount rewards to customers based on purchase activity, and certain licensing and profit sharing arrangements involving the use of our intellectual property by others. Revenue includes Total net sales and Credit income and other. Net sales are categorized by merchandise and service sale groupings as we believe it best depicts the nature, amount, timing and uncertainty of revenue and cash flow. Credit income and other encompasses the revenue earned from the agreement with Synchrony Financial (Synchrony) associated with our private label credit card and co-branded MasterCard® programs. Merchandise and Service Sales Total net sales, which exclude sales taxes, are generally recorded when payment is received and the customer takes control of the merchandise. Service revenue is recorded at the time the customer receives the benefit of the service, such as salon, portrait, optical or custom decorating. Shipping and handling fees charged to customers are also included in total net sales with corresponding costs recorded as cost of goods sold. Net sales are not recognized for estimated future returns which are estimated based primarily on historical return rates and sales levels. Gift Card Revenue At the time gift cards are sold a performance obligation is created and no revenue is recognized; rather, a contract liability is established for our obligation to provide a merchandise or service sale to the customer for the face value of the card. The contract liability is relieved and a net sale is recognized when gift cards are redeemed for merchandise or services. We recognize gift card breakage, net of required escheatment, over the redemption pattern of gift cards. Breakage is estimated based on historical redemption patterns and the estimates can vary based on changes in the usage patterns of our customers. Customer Loyalty Rewards Customers who spend a certain amount with us using our private label card or registered loyalty card receive points that can accumulate towards earning JCPenney Rewards certificates, which are redeemable for a discount on future purchases. Points earned by a loyalty customer do not expire but any certificates earned expire two months from the date of issuance. We account for our customer loyalty rewards by deferring a portion of our sales to loyalty points expected to be earned towards a reward certificate, and then recognize the reward certificate as a net sale when used by the customer in connection with a merchandise or service sale. The points earned toward a future reward are valued at their relative standalone selling price by applying fair value based on historical redemption patterns. Licensing Agreements Our private label credit card and co-branded MasterCard® programs are owned and serviced by Synchrony. Under our agreement, we receive periodic cash payments from Synchrony based upon the consumer's usage of co-branded card and the performance of the credit card portfolio. We participate in the programs by providing marketing promotions designed to increase the use of each card, including enhanced marketing offers for cardholders. Additionally, we accept payments in our stores from cardholders who prefer to pay in person when they are shopping in our locations. Revenue related to this agreement is recognized over the time we have fulfilled our deliverables and is reflected in Credit income and other. Principal Versus Agent We assess principal versus agent considerations depending on our control of the good or service before it is transferred to the customer. When we are the principal and have control of the specified good or service, we include as a net sale the gross amount of consideration to which we expect to be entitled for that specified good or service in revenue. In contrast, when we are the agent and do not have control of the specified good or service, we include as a net sale the fee or commission to which we expect to be entitled for the agency service. In certain instances, the fee or commission might be the net amount retained after paying the supplier. Cost of Goods Sold (Exclusive of Depreciation and Amortization) Cost of goods sold includes costs directly related to bringing merchandise to its final selling destination. These costs include the cost of the merchandise (net of discounts or allowances earned), sourcing and procurement costs, buying and brand development costs, including buyers’ salaries and related expenses, royalties and design fees, freight costs, warehouse operating expenses, merchandise examination, inspection and testing, store merchandise distribution center expenses, including rent, and shipping and handling costs incurred on eCommerce sales. Vendor Allowances We receive vendor support in the form of cash payments or allowances for a variety of reimbursements such as cooperative advertising, markdowns, vendor shipping and packaging compliance, defective merchandise, the purchase of vendor specific fixtures and other vendor contributions. We have agreements in place with each vendor setting forth the specific conditions for each allowance or payment. Depending on the arrangement, we either recognize the allowance as a reduction of current costs or defer the payment over the period the related merchandise is sold. If the payment is a reimbursement for costs incurred, it is generally offset against those related costs; otherwise, it is treated as a reduction to the cost of merchandise. Markdown reimbursements related to merchandise that has been sold are negotiated and documented by our buying teams and are credited directly to cost of goods sold in the period an agreement has been reached. Vendor allowances received prior to merchandise being sold are deferred and recognized as a reduction of inventory and credited to cost of goods sold based on an inventory turnover rate. Vendor compliance credits reimburse us for incremental merchandise handling expenses incurred due to a vendor’s failure to comply with our established shipping or merchandise preparation requirements. Vendor compliance credits are recorded as a reduction of merchandise handling costs. Selling, General and Administrative Expenses SG&A expenses include the following costs, except as related to merchandise buying, sourcing, warehousing or distribution activities: salaries, marketing costs, occupancy and rent expense, utilities and maintenance, pre-opening expenses, costs related to information technology, administrative costs related to our home office and district and regional operations, real and personal property and other taxes (excluding income taxes) and credit/debit card fees. Advertising Advertising costs, which include newspaper, television, Internet search marketing, radio and other media advertising, are expensed either as incurred or the first time the advertisement occurs. For cooperative advertising programs offered by national brands that require proof of advertising to be provided to the vendor to support the reimbursement of the incurred cost, we offset the allowances against the related advertising expense. Programs that do not require proof of advertising are monitored to ensure that the allowance provided by each vendor is a reimbursement of costs incurred to advertise for that particular vendor’s label. Total advertising costs, net of cooperative advertising vendor reimbursements of $20 million , $26 million and $27 million for 2019 , 2018 and 2017 , respectively, were $624 million , $698 million and $714 million , respectively. Income Taxes We account for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not such assets will be realized. We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense in our Consolidated Statements of Operations. Earnings/(Loss) per Share Basic earnings/(loss) per share (EPS) is computed by dividing net income/(loss) by the weighted-average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income/(loss) by the weighted-average number of common shares outstanding during the period plus the number of additional common shares that would have been outstanding if the potentially dilutive shares had been issued. Potentially dilutive shares include stock options, unvested restricted stock units and awards and a warrant outstanding during the period, using the treasury stock method. Potentially dilutive shares are excluded from the computations of diluted EPS if their effect would be anti-dilutive. Cash and Cash Equivalents Cash and cash equivalents include cash short-term investments that are highly liquid investments with original maturities of three months or less. Cash short-term investments consist primarily of short-term U.S. Treasury money market funds and a portfolio of highly rated bank deposits and are stated at cost, which approximates fair market value due to the short-term maturity. Cash in banks and in transit also include credit card sales transactions that are settled early in the following period. Merchandise Inventory Inventories are valued at the lower of cost (using the first-in, first-out or “FIFO” method) or market using the retail method (RIM). Under RIM, retail values of merchandise groups are converted to a cost basis by applying the specific average cost-to-retail ratio related to each merchandise grouping. In 2017, we changed our method of accounting for merchandise inventories for our eCommerce operations from the lower of standard cost (representing average vendor costs) or net realizable value to the lower of cost or market using RIM. Along with this change, we retired certain legacy systems and implemented a new module of our enterprise resource planning system to account for merchandise inventories. Shrinkage accruals are estimated as a percent of sales for a given period based on physical inventory counts or cycle count activities. Physical inventory counts for stores are taken at least annually and cycle count activities for distribution centers and regional warehouses are executed on a daily basis. Inventory records and shrinkage accruals are adjusted based on the actual results from physical inventories and cycle counts. The shrinkage rate from the most recent physical inventory and cycle count activity, in combination with current events and historical experience, is used as the standard for the shrinkage accrual rate for the next inventory cycle or cycle count activity. Historically, our actual physical inventory and cycle counts results have shown our estimates to be reliable. Property and Equipment, Net Estimated Useful Lives ($ in millions) (Years) 2019 2018 Land N/A $ 213 $ 236 Buildings 50 4,292 4,608 Furniture and equipment 3-20 879 1,343 Leasehold improvements (1) 1,094 1,070 Finance leases (equipment) 3-5 105 106 Accumulated depreciation (3,095 ) (3,425 ) Property and equipment, net $ 3,488 $ 3,938 (1) Leasehold improvements are depreciated over the shorter of the estimated useful lives of the improvements or the term of the lease, including renewals determined to be reasonably certain. Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed primarily by using the straight-line method over the estimated useful lives of the related assets. We expense routine maintenance and repairs when incurred. We capitalize major replacements and improvements. We remove the cost of assets sold or retired and the related accumulated depreciation or amortization from the accounts and include any resulting gain, loss or impairment in net income/(loss). We recognize a liability for the fair value of our conditional asset retirement obligations, which are primarily related to asbestos removal, when probable and if the liability’s fair value can be reasonably estimated. Capitalized Software Costs We capitalize costs associated with the acquisition or development of major software for internal use in other assets in our Consolidated Balance Sheets and amortize the asset over the expected useful life of the software, generally between three and seven years. We only capitalize subsequent additions, modifications or upgrades to internal-use software to the extent that such changes allow the software to perform a task it previously did not perform. We expense software maintenance and training costs as incurred. Cloud computing arrangements are evaluated to determine whether the arrangement includes a software license or is a service contract. If determined to be a software license, then the arrangement is capitalized as an other asset and amortized over the expected life of software, generally between three to seven years. If determined to be a service contract, then the cost of the arrangement is expensed as the services are provided. Impairment of Long-Lived and Indefinite-Lived Assets We evaluate long-lived assets such as store property and equipment and other corporate assets for impairment whenever events or changes in circumstances indicate that the carrying amount of those assets may not be recoverable. Factors considered important that could trigger an impairment review include, but are not limited to, significant underperformance relative to historical or projected future operating results and significant changes in the manner of use of the assets or our overall business strategies. Assets or asset groups that trigger an impairment review are tested for recoverability by comparing the estimated undiscounted cash flows expected to result from the use of the asset plus any net proceeds expected from disposition of the asset to the carrying value of the asset. If the asset or asset group is not recoverable on a undiscounted cash flow basis, the amount of the impairment loss is measured by comparing the carrying value of the asset or asset group to its fair value and depending on the transaction any loss is included in Restructuring and management transition or Real estate and other, net in the Consolidated Statements of Operations. We estimate fair value based on either a projected discounted cash flow method using a discount rate that is considered commensurate with the risk inherent in our current business model or appraised value, as appropriate. We also take other factors into consideration in estimating the fair value of our stores, such as local market conditions, operating environment, mall performance and other trends. We assess the recoverability of indefinite-lived intangible assets at least annually during the fourth quarter of our fiscal year or whenever events or changes in circumstances indicate that the carrying amount of the indefinite-lived intangible asset may not be fully recoverable. Examples of a change in events or circumstances include, but are not limited to, a decrease in the market price of the asset, a history of cash flow losses related to the use of the asset or a significant adverse change in the extent or manner in which an asset is being used. We test our indefinite-lived intangible assets utilizing the relief from royalty method to determine the estimated fair value for each indefinite-lived intangible asset. The relief from royalty method estimates our theoretical royalty savings from ownership of the intangible asset. Key assumptions used in this model include discount rates, royalty rates, growth rates, sales projections and terminal value rates. Leases Accounting Policy Applied in Fiscal 2019 At the lease commencement date, based on certain criteria, we determine if a lease is classified as an operating lease or finance lease and then recognize a right-of-use asset and a lease liability on the Consolidated Balance Sheets for all leases (with the exception of leases that have a term of twelve months or less). The lease liability is measured as the present value of unpaid lease payments measured based on the reasonably certain lease term and corresponding discount rate. The initial right-of-use asset is measured as the lease liability plus certain other costs and is reduced by any tenant allowances collected from the lessor. Lease payments include fixed and in-substance fixed payments, variable payments based on an index or rate and termination penalties. Lease payments do not include variable lease components other than those that depend on an index or rate or any payments not considered part of the lease (i.e. payment of the lessor’s real estate taxes and insurance). Payments not considered lease payments are expensed as incurred. Some leases require additional payments based on sales and the related contingent rent is recorded as rent expense when the payment is probable. As a policy election, we consider lease payments and all related other payments as one component of a lease. The reasonably certain lease term includes the non-cancelable lease term and any renewal option periods where we have economically compelling reasons for future exercise. The discount rate used in our present value calculations is the rate implicit in the lease, when known, or our estimated incremental borrowing rate. Our incremental borrowing rate is estimated based on our secured borrowings and our credit risk relative to the time horizons of other publicly available data points that are consistent with the respective lease term. Whether an operating lease or a finance lease, the lease liability is amortized over the lease term at a constant periodic interest rate. The right-of-use assets related to operating leases are amortized over the lease term on a basis that renders a straight-line amount of rent expense which encompasses the amortization and interest component of the lease. With the occurrence of certain events, the amortization pattern for an operating asset is adjusted to a straight-line basis over the remaining lease term. The right-of-use asset related to a finance lease is amortized on a straight-line basis over the lease term. Rent on short-term leases is expensed on a straight-line basis over the lease term. When a lease is modified or there is a change in lease term, we assess for any change in lease classification and remeasure the lease liability with a corresponding increase or decrease to the right-of-use asset. Sale-leasebacks are transactions through which we sell assets and subsequently lease them back. The resulting leases that qualify for sale-leaseback accounting are evaluated and accounted for as an operating lease. A transaction that does not qualify for sale-leaseback accounting as a result of finance lease classification or the failure to meet certain revenue recognition criteria is accounted for as a financing transaction. For a financing transaction, we retain the "sold" assets within property and equipment and record a financing obligation equal to the amount of cash proceeds received. Rental payments under such transactions are recognized as a reduction of the financing obligation and as interest expense using an effective interest method. Accounting Policy Applied in Fiscal 2018 Our lease accounting policies for lease contracts in fiscal 2018 and prior are disclosed in the 2018 Annual Report on Form 10-K. Exit or Disposal Activity Costs Costs associated with exit or disposal activities are recorded at their fair values when a liability has been incurred. Severance is recorded over the service period required to be rendered in order to receive the termination benefits or, if employees will not be retained to render future service, a reserve is established when communication has occurred to the affected employees. Other exit costs are accrued when incurred. Retirement-Related Benefits We recognize the funded status – the difference between the fair value of plan assets and the plan’s benefit obligation – of our defined benefit pension and postretirement plans directly on the Consolidated Balance Sheet. Each overfunded plan is recognized as an asset and each underfunded plan is recognized as a liability. We adjust other comprehensive income/(loss) to reflect prior service cost or credits and actuarial gain or loss amounts arising during the period and reclassification adjustments for amounts being recognized as components of net periodic pension/postretirement cost, net of tax. Prior service cost or credits are amortized to net income/(loss) over the average remaining service period, a period of about eight years for the primary plan. Pension related actuarial gains or losses in excess of 10% of the greater of the fair value of plan assets or the plan's projected benefit obligation (the corridor) are recognized annually in the fourth quarter each year (Mark-to-market (MTM) adjustment), and, if applicable, in any interim period in which an interim remeasurement is triggered. We measure the plan assets and obligations annually at the adopted measurement date of January 31 to determine pension expense for the subsequent year. The factors and assumptions affecting the measurement are the characteristics of the population and salary increases, with the most important being the expected return on plan assets and the discount rate for the pension obligation. We use actuarial calculations for the assumptions, which require significant judgment. Stock-Based Compensation Stock options are valued primarily using the Black-Scholes option pricing model and are granted with an exercise price equal to the closing price of our common stock on the grant date. Time-based and performance-based restricted stock awards are valued using the closing price of our common stock on the grant date. Our current plan does not permit awarding stock options below grant-date market value nor does it allow any repricing subsequent to the date of grant. Stock options are valued using the following assumptions: • Valuation Method. We estimate the fair value of stock option awards on the date of grant using primarily the Black-Scholes option pricing model. • Expected Term. Our expected option term represents the average period that we expect stock options to be outstanding and is determined based on our historical experience, giving consideration to contractual terms, vesting schedules, anticipated stock prices and expected future behavior of option holders. • Expected Volatility. Our expected volatility is based on a blend of the historical volatility of JCPenney stock combined with an estimate of the implied volatility derived from exchange traded options. • Risk-Free Interest Rate. Our risk-free interest rate is based on zero-coupon U.S. Treasury yields in effect at the date of grant with the same period as the expected option life. • Expected Dividend Yield. The dividend assumption is based on our current expectations about our dividend policy. Employee stock options and time-based and performance-based restricted stock awards typically vest over periods ranging from one to thr ee years an d employee stock options have a maximum term of 10 years. Estimates of forfeitures are incorporated at the grant date and are adjusted if actual results are different from initial estimates. For awards that have performance conditions, the probability of achieving the performance condition is evaluated each reporting period, and if the performance condition is expected to be achieved, the related compensation expense is recorded over the remaining service period. In addition, certain performance-based restricted stock awards may be granted where the number of shares may be increased to the maximum or reduced to the minimum threshold based on the results of the performance metrics in accordance with the terms established at the time of the award. In the event that performance conditions are not achieved and the awards do not vest, compensation expense is reversed. |
Adoption of New Accounting Stan
Adoption of New Accounting Standards (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes [Text Block] | Adoption of New Accounting Standards In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) , as amended, which requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets. The Company adopted the provisions of the new lease standard effective February 3, 2019, using the modified retrospective adoption method and the simplified transition option available in the new lease standard. This allows us to continue to apply the legacy guidance in the old standard (ASC Topic 840, Leases (ASC 840)), including its disclosure requirements, in the comparative periods presented in the year of adoption. The Company also elected the package of practical expedients available under the transition provisions of the new lease standard, which include a) not reassessing ASC 840 evaluations on whether expired or existing contracts contain leases, b) not reassessing lease classification previously assessed under ASC 840, and c) not revaluing initial direct costs for existing leases under ASC 840. We also elected the practical expedient to carry forward our historical accounting for any land easements on existing contracts. In addition, the Company changed the accounting for the failed sale-leaseback of its home office to comply with the new lease standard's guidance for sale-leaseback accounting, and recorded a "day one impairment" of the new right-of-use assets that were included in previously impaired asset groups associated with long-lived assets. Per the transition guidance of the new lease standard, the failed sale-leaseback is considered a valid sale and leaseback that resulted in the removal of the related real estate assets of $153 million and the financing obligation of $208 million , and the recognition of the $55 million gain on sale in Reinvested earnings/(accumulated deficit). Adoption of the new lease accounting standard also required us to reevaluate the accounting for a $50 million promissory note issued in connection with the sale of the home office. In accordance with previous guidance, the promissory note was not recorded in the Consolidated Balance Sheets and not included in the implied gain on sale, however, under the new guidance, the promissory note is considered variable consideration under ASC 606, Revenue for Contracts with Customers . Accordingly, in transition, the Company did not recognize any amount for the $50 million promissory note, as management assessed the most likely amount of variable consideration to be zero given the associated local real estate market dynamics. There were no changes to the measurement of this variable consideration as of year end. In regards to the "day one impairment" charge, the Company evaluated the new right-of-use assets added to certain store asset groups that were previously determined to be impaired. Given the facts and circumstances that were still in existence upon adopting the new lease standard, the Company recorded an approximate $39 million impairment charge to Reinvested earnings/(accumulated deficit) to adjust the net book value of the new right-of-use assets to their fair value. The following table provides the overall Consolidated Balance Sheet impact of applying the new lease standard effective as of February 3, 2019. Due to the change in accounting for the Home Office sale-leaseback, there was a change in classification of $20 million of lease costs that were recorded as elements of Depreciation and amortization and Net interest expense in 2018 that are reported as Selling, general and administrative expenses in 2019. There was no significant impact to the Company's Consolidated Statement of Cash Flows. Balance as of February 3, 2019 ($ in millions) Balances removed under prior accounting Balances added/reclassified under new lease standard Net impact of new lease standard Prepaid expenses and other $ — $ (17 ) $ (17 ) Property and equipment 153 — (153 ) Operating lease assets — 979 979 Other assets — (7 ) (7 ) Total assets $ 153 $ 955 $ 802 Other accounts payable and accrued expenses $ 4 $ (2 ) $ (6 ) Current operating lease liabilities — 73 73 Current portion of finance leases and note payable 5 — (5 ) Noncurrent operating lease liabilities — 1,086 1,086 Long-term finance leases and note payable 203 — (203 ) Deferred taxes 10 — (10 ) Other liabilities 11 (149 ) (160 ) Reinvested earnings/(accumulated deficit) 80 (53 ) 27 Total liabilities and stockholders’ equity $ 153 $ 955 $ 802 In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This standard allows companies to reclassify stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”) enacted on December 22, 2017 from Accumulated other comprehensive income/(loss) to Reinvested earnings/(accumulated deficit). We adopted ASU 2018-02 on February 3, 2019 and reclassified $53 million (net of federal income tax benefit) of income tax effects of the Tax Act from Accumulated other comprehensive income/(loss) to Reinvested earnings/(accumulated deficit). |
Effect of New Accounting Standa
Effect of New Accounting Standards | 12 Months Ended |
Feb. 01, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Effect of New Accounting Standards | Effect of New Accounting Standards In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which changes the impairment model for most financial assets and certain other instruments. Under the new guidance, entities will be required to measure expected credit losses for financial instruments, including trade receivables, based on historical experience, current conditions and reasonable forecasts. This standard will be effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. We do not expect the adoption of this new standard will have a material impact on the consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement . This standard is effective for public business entities in fiscal years beginning after December 15, 2019, and for interim periods within those years. Early adoption is permitted, including during an interim period. This new standard requires changes to the disclosure requirements for fair value measurements for certain Level 3 items, and specifies that some of the changes must be applied prospectively, while others should be applied retrospectively. We are evaluating this new standard but do not expect it to have a significant impact on our financial statement disclosures. In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans , which removes certain disclosures that are no longer cost beneficial and also includes additional disclosures to improve the overall usefulness of the disclosure requirements to financial statement users. This standard will be effective for public entities for fiscal years beginning after December 15, 2020, however early adoption is permitted. We are evaluating this new standard but do not expect it to have a significant impact on our financial statement disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This standard will be effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, however early adoption is permitted. We do not expect the adoption of this new standard will have a material impact on the consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740), which simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The standard also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. This standard will be effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, however early adoption is permitted. We are currently evaluating the impact of this new standard on the consolidated financial statements. |
Earnings_(Loss) per Share
Earnings/(Loss) per Share | 12 Months Ended |
Feb. 01, 2020 | |
Earnings Per Share [Abstract] | |
Earnings/(Loss) per Share | Earnings/(Loss) per Share Net income/(loss) and shares used to compute basic and diluted EPS are reconciled below: (in millions, except per share data) 2019 2018 2017 Earnings/(loss) Net income/(loss) $ (268 ) $ (255 ) $ (118 ) Shares Weighted average common shares outstanding (basic shares) 320.2 315.7 311.1 Adjustment for assumed dilution: Stock options and restricted stock awards — — — Weighted average shares assuming dilution (diluted shares) 320.2 315.7 311.1 EPS Basic $ (0.84 ) $ (0.81 ) $ (0.38 ) Diluted $ (0.84 ) $ (0.81 ) $ (0.38 ) The following average potential shares of common stock were excluded from the diluted EPS calculation because their effect would have been anti-dilutive: (Shares in millions) 2019 2018 2017 Stock options, restricted stock awards 23.2 24.8 31.5 |
Revenue (Notes)
Revenue (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
Revenue [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Our contracts with customers primarily consist of sales of merchandise and services at the point of sale, sales of gift cards to a customer for a future purchase, customer loyalty rewards that provide discount rewards to customers based on purchase activity, and certain licensing and profit sharing arrangements involving the use of our intellectual property by others. Revenue includes Total net sales and Credit income and other. Net sales are categorized by merchandise and service sale groupings as we believe it best depicts the nature, amount, timing and uncertainty of revenue and cash flow. Based on how we categorized our merchandise divisions in 2019 , the components of Net sales for 2019 and 2018 were as follows: ($ in millions) 2019 2018 Men’s apparel and accessories $ 2,320 22 % $ 2,432 20 % Women’s apparel 2,195 21 % 2,293 20 % Women’s accessories, including Sephora 1,516 14 % 1,637 14 % Home 1,191 11 % 1,606 14 % Footwear and handbags 1,191 11 % 1,255 11 % Kids’, including toys 991 9 % 1,070 9 % Jewelry 641 6 % 652 6 % Services and other 671 6 % 719 6 % Total net sales $ 10,716 100 % $ 11,664 100 % Credit income and other encompasses the revenue earned from the agreement with Synchrony associated with our private label credit card and co-branded MasterCard® programs. The Company has contract liabilities associated with the sales of gift cards and our customer loyalty program. The liabilities are included in Other accounts payable and accrued expenses in the Consolidated Balance Sheets and were as follows: (in millions) 2019 2018 Gift cards $ 136 $ 140 Loyalty rewards 58 60 Total contract liability $ 194 $ 200 Contract liability includes consideration received for gift card and loyalty related performance obligations which have not been satisfied as of a given date. A rollforward of the amounts included in contract liability for 2019 and 2018 are as follows: (in millions) 2019 2018 Beginning balance $ 200 $ 217 Current period gift cards sold and loyalty reward points earned 401 422 Net sales from amounts included in contract liability opening balances (72 ) (80 ) Net sales from current period usage (335 ) (359 ) Ending balance $ 194 $ 200 |
Other Assets
Other Assets | 12 Months Ended |
Feb. 01, 2020 | |
Other Assets, Noncurrent [Abstract] | |
Other Assets | Other Assets ($ in millions) 2019 2018 Capitalized software, net $ 337 $ 334 Indefinite-lived intangible assets, net (1) 275 275 Revolving credit facility unamortized costs, net 15 22 Interest rate swaps (Notes 9, 10 and 11) — 10 Other 30 36 Total $ 657 $ 677 (1) Amounts are net of an accumulated impairment loss of $9 million. Our indefinite-lived intangible assets primarily consist of our worldwide rights for the Liz Claiborne® family of trademarks and related intellectual property. In connection with our annual indefinite-lived intangible assets impairment tests performed during the fourth quarter of 2019, we did not record an impairment for our indefinite-lived intangible assets as the estimated fair values exceeded the carrying values of the underlying assets. |
Other Accounts Payable and Accr
Other Accounts Payable and Accrued Expenses | 12 Months Ended |
Feb. 01, 2020 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Other Accounts Payable and Accrued Expenses | Other Accounts Payable and Accrued Expenses ($ in millions) 2019 2018 Accrued salaries, vacation and bonus $ 191 $ 154 Customer gift cards 136 140 Taxes other than income taxes 86 85 Loyalty rewards 58 60 Interest 67 71 Advertising 68 78 Current portion of workers’ compensation and general liability self-insurance 39 45 Restructuring and management transition (Note 18) 8 9 Current portion of retirement plan liabilities (Note 17) 27 30 Capital expenditures 16 43 Occupancy and rent-related 24 28 Other 211 252 Total $ 931 $ 995 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Feb. 01, 2020 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Liabilities | Other Liabilities ($ in millions) 2019 2018 Supplemental pension and other postretirement benefit plan liabilities (Note 17) $ 109 $ 116 Long-term portion of workers’ compensation and general liability insurance 103 107 Deferred developer/tenant allowances 93 144 Deferred rent liability (Note 3) — 103 Interest rate swaps (Notes 7, 10 and 11) 58 15 Restructuring and management transition (Note 18) — 9 Other 67 64 Total $ 430 $ 558 |
Derivative Financial Instrument
Derivative Financial Instruments (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
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 a 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 is a hedge, 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 hedge accounting, are valued at fair value with unrealized gains or losses reported in earnings during the period of change. Effective May 7, 2015, we 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. On September 4, 2018, we entered into additional interest rate swap agreements with notional amounts totaling $750 million to fix a portion of our variable LIBOR-based interest payments. The interest rate swap agreements have a weighted-average fixed rate of 3.135% , have an effective date from May 7, 2020 to May 7, 2025 and have been designated as cash flow hedges. The fair value of our interest rate swaps are recorded in the Consolidated Balance Sheets as an asset or a liability (see Note 11). The effective portion of the interest rate swaps' changes in fair values is reported in Accumulated other comprehensive income/(loss) (see Note 14), and the ineffective portion is reported in Net income/(loss). Amounts in Accumulated other comprehensive income/(loss) are reclassified into Net income/(loss) when the related interest payments affect earnings. For the periods presented, all of the interest rate swaps were 100% effective. Information regarding the pre-tax changes in the fair value of our interest rate swaps is as follows: ($ in millions) 2019 2018 Line Item in the Financial Statements Gain/(loss) recognized in other comprehensive income/(loss) $ (48 ) $ (13 ) Accumulated other comprehensive income Gain/(loss) recognized in net income/(loss) 5 2 Interest expense Information regarding the gross amounts of our derivative instruments in the Consolidated Balance Sheets is as follows: Asset Derivatives at Fair Value Liability Derivatives at Fair Value ($ in millions) Balance Sheet Location 2019 2018 Balance Sheet Location 2019 2018 Derivatives designated as hedging instruments: Interest rate swaps Other assets — 10 Other liabilities 58 15 Total derivatives designated as hedging instruments $ — $ 10 $ 58 $ 15 |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Feb. 01, 2020 | |
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 The fair value of our cash flow hedges 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 stores in 2019, long-lived assets held and used with a carrying value of $22 million were written down to their fair value of $8 million , resulting in asset impairment charges of $14 million in the first quarter of 2019. Additionally, in connection with the adoption of the new lease accounting standard, right-of-use assets of $58 million were written down to their fair value of $19 million . 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. In connection with the Company's decision to close underperforming stores in 2020, long-lived assets held and used with a carrying value of $6 million were written down to their fair value of $1 million , resulting in asset impairment charges of $5 million in the second half of 2019. In connection with the Company's decision to sell its three airplanes in 2018, long-lived assets held and used with a carrying value of $72 million were written down to their fair value of $20 million , resulting in asset impairment charges of $52 million . The fair value was determined based on dealer quotes using a market approach and the significant inputs related to valuing the airplanes are classified as Level 2 in the fair value measurement hierarchy. Other Financial Instruments Carrying values and fair values of financial instruments that are not carried at fair value in the Consolidated Balance Sheets are as follows: As of February 1, 2020 As of February 2, 2019 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Total debt, excluding unamortized debt issuance costs, finance leases, financing obligation and notes payable $ 3,758 $ 2,464 $ 3,856 $ 2,579 The fair value of long-term debt is estimated by obtaining quotes from brokers or is based on current rates offered for similar debt. As of February 1, 2020 and February 2, 2019 , the fair values of cash and cash equivalents, accounts payable and short-term borrowings approximate their carrying values due to the short-term nature of these instruments. Concentrations of Credit Risk We have no significant concentrations of credit risk. |
Credit Facility
Credit Facility | 12 Months Ended |
Feb. 01, 2020 | |
Line of Credit Facility [Abstract] | |
Credit Facility | Credit Facility The Company has a $2,350 million senior secured asset-based credit facility (2017 Credit Facility), comprised of a $2,350 million revolving line of credit (Revolving Facility). During the second quarter of 2017, we amended the Revolving 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. The 2017 Credit Facility is secured by a perfected first-priority security interest in substantially all of our eligible credit card receivables, accounts receivable and inventory. The Revolving Facility is available for general corporate purposes, including the issuance of letters of credit. Pricing under the Revolving Facility is tiered based on our utilization under the line of credit. JCP’s obligations under the 2017 Credit Facility are guaranteed by J. C. Penney Company, Inc. The borrowing base under the Revolving Facility is limited to a maximum of 85% of eligible accounts receivable, plus 90% of eligible credit card receivables, plus 90% of the liquidation value of our inventory, net of certain reserves. Letters of credit reduce the amount available to borrow by their face value. In addition, the maximum availability is limited by a minimum excess availability threshold which is the lesser of 10% of the borrowing base or $200 million, subject to a minimum threshold requirement of $150 million. As of the end of 2019 , we had no borrowings outstanding under the Revolving Facility. In addition, as of the end of 2019 , we had $1,594 million available for borrowing, of which $203 million was reserved for outstanding standby letters of credit, none of which have been drawn on, leaving $1,391 million for future borrowings. The applicable rate for standby letters of credit was 1.75% and 0.875% , respectively, while the required commitment fee was 0.375% for the unused portion of the Revolving Facility. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Feb. 01, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt ($ in millions) 2019 2018 Issue: 8.125% Senior Notes Due 2019 $ — $ 50 5.65% Senior Notes Due 2020 (1) 105 110 2016 Term Loan Facility (Matures in 2023) 1,540 1,583 5.875% Senior Secured Notes Due 2023 (1) 500 500 7.125% Debentures Due 2023 10 10 8.625% Senior Secured Second Priority Notes Due 2025 (1) 400 400 6.9% Notes Due 2026 2 2 6.375% Senior Notes Due 2036 (1) 388 388 7.4% Debentures Due 2037 313 313 7.625% Notes Due 2097 500 500 Total debt 3,758 3,856 Unamortized debt issuance costs (37 ) (48 ) Less: current maturities (147 ) (92 ) Total long-term debt $ 3,574 $ 3,716 Weighted-average interest rate at year end 6.3 % 6.3 % Weighted-average maturity (in years) 16 years (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% . These provisions trigger if there were a beneficial ownership change of 50% or more of our common stock. During the first quarter of 2018, JCP issued $400 million aggregate principal amount of senior secured second priority notes with a 8.625% interest rate (Senior Secured Second Priority Notes). The Senior Secured Second Priority Notes are due in 2025 and are guaranteed, jointly and severally, by the Company and certain domestic subsidiaries of JCP that guarantee the Company's 2016 Term Loan Facility (defined below) and existing Senior Secured First Priority Notes (defined below). The net proceeds from the Senior Secured Second Priority Notes were used for the tender consideration for JCP's contemporaneous cash tender offers for $125 million aggregate principal amount of its 8.125% Senior Notes Due 2019 (2019 Notes) and $250 million aggregate principal amount of its 5.65% Senior Notes Due 2020 (collectively, with the 2019 Notes, the Securities). In doing so, we recognized a loss on extinguishment of debt of $23 million which includes the premium paid over the face value of the accepted Securities of $20 million , reacquisition costs of $1 million and the write off of unamortized debt issuance costs of $2 million . The Company's amended and restated senior secured term loan credit facility (2016 Term Loan Facility) bears interest at a rate of LIBOR (subject to a 1% floor) plus 4.25% and matures on June 23, 2023. We are required to make quarterly repayments in a principal amount equal to $10.55 million during the seven-year term, subject to certain reductions for mandatory and optional prepayments. Proceeds from the 2016 Term Loan Facility and the $500 million aggregate principal amount of 5.875% Senior Secured Notes due 2023 (Senior Secured First Priority Notes) were used to repay the entire outstanding principal balance of the $2.25 billion five-year senior secured term loan facility entered into in 2013. The 2016 Term Loan Facility and the Senior Secured First Priority Notes are guaranteed by the Company and certain subsidiaries of JCP and are secured by mortgages on certain real estate of JCP and the guarantors. Scheduled Annual Principal Payments on Long-Term Debt, Excluding Capital Leases Financing Obligation and Note Payable ($ in millions) 2020 $ 147 2021 42 2022 42 2023 1,924 2024 — Thereafter 1,603 Total $ 3,758 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Feb. 01, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Accumulated Other Comprehensive Income/(Loss) The following table shows the changes in accumulated other comprehensive income/(loss) balances for 2019 and 2018 : ($ in millions) Net Actuarial Gain/(Loss) Prior Service Credit/(Cost) Foreign Currency Translation Gain/(Loss) on Cash Flow Hedges Accumulated Other Comprehensive Income/(Loss) February 3, 2018 $ (330 ) $ (26 ) $ — $ (4 ) $ (360 ) Current period change 40 4 (1 ) (11 ) 32 February 2, 2019 $ (290 ) $ (22 ) $ (1 ) $ (15 ) $ (328 ) ASU 2018-02 (Stranded Taxes) adoption (See Note 3) 46 3 — 4 53 Current period change (66 ) 7 — (53 ) (112 ) February 1, 2020 $ (310 ) $ (12 ) $ (1 ) $ (64 ) $ (387 ) Common Stock On a combined basis, our 401(k) savings plan, including our employee stock ownership plan (ESOP), held approximately 16 million shares, or approximately 5.0% of outstanding Company common stock, at February 1, 2020 . Under the 2016 Term Loan Facility, we are subject to restrictive covenants regarding our ability to pay cash dividends. Preferred Stock We have authorized 25 million shares of preferred stock; no shares of preferred stock were issued and outstanding as of February 1, 2020 or February 2, 2019 . Stockholders' Rights Agreement As authorized by our Company’s Board of Directors (the Board), on January 27, 2014, the Company entered into an Amended and Restated Rights Agreement (Amended Rights Agreement) with Computershare Inc., as Rights Agent (Rights Agent), amending, restating and replacing the Rights Agreement, dated as of August 22, 2013 (Original Rights Agreement), between the Company and the Rights Agent. Pursuant to the terms of the Original Rights Agreement, one preferred stock purchase right (a Right) was attached to each outstanding share of Common Stock of $0.50 par value of the Company (Common Stock) held by holders of record as of the close of business on September 3, 2013. The Company has issued one Right in respect of each new share of Common Stock issued since the record date. The Rights, registered on August 23, 2013, trade with and are inseparable from our Common Stock and will not be evidenced by separate certificates unless they become exercisable. The purpose of the Amended Rights Agreement is to diminish the risk that the Company's ability to use its net operating losses and other tax assets to reduce potential future federal income tax obligations would become subject to limitations by reason of the Company's experiencing an "ownership change" as defined under Section 382 of the Internal Revenue Code of 1986, as amended (the Code). Ownership changes under Section 382 generally relate to the cumulative change in ownership among stockholders with an ownership interest of 5% or more (as determined under Section 382's rules) over a rolling three year period. The Amended Rights Agreement is intended to reduce the likelihood of an ownership change under Section 382 by deterring any person or group from acquiring beneficial ownership of 4.9% or more of the outstanding Common Stock. After various amendments to the Original Rights Agreement, the expiration date of the Rights was extended to January 26, 2020 and certain other provisions were amended including the definition of "beneficial ownership" to include terms appropriate for the purpose of preserving tax benefits. On January 24, 2020, the term of the Amended Rights Agreement was extended to January 25, 2023. The Company expects to submit the extension of the Amended Rights Agreement to stockholders for approval at its 2020 annual meeting of stockholders. If stockholders do not approve the extension of the Amended Rights Agreement, the Amended Rights Agreement will terminate. Each Right entitles its holder to purchase from the Company 1/1000th of a share of a newly authorized series of participating preferred stock at an exercise price of $55.00 , subject to adjustment in accordance with the terms of the Amended Rights Agreement, once the Rights become exercisable. In general terms, under the Amended Rights Agreement, the Rights become exercisable if any person or group acquires 4.9% or more of the Common Stock or, in the case of any person or group that owned 4.9% or more of the Common Stock as of January 27, 2014, upon the acquisition of any additional shares by such person or group. In addition, the Company, its subsidiaries, employee benefit plans of the Company or any of its subsidiaries, and any entity holding Common Stock for or pursuant to the terms of any such plan, are excepted. Upon exercise of the Right in accordance with the Amended Rights Agreement, the holder would be able to purchase a number of shares of Common Stock from the Company having an aggregate market value (as defined in the Amended Rights Agreement) equal to twice the then-current exercise price for an amount in cash equal to the then-current exercise price. The Rights will not prevent an ownership change from occurring under Section 382 of the Code or a takeover of the Company, but may cause substantial dilution to a person that acquires 4.9% |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We grant stock-based compensation awards to employees and non-employee directors under our equity compensation plan. On May 24, 2019, our stockholders approved the J. C. Penney Company, Inc. 2019 Long-Term Incentive Plan (2019 Plan), which has a fungible share design in which each stock option will count as one share issued and each stock award will count as 1.49 shares issued, except for stock awards issued from February 2, 2019 to May 24, 2019, the effective date of the 2019 Plan, in which each stock award counted as 1.63 shares issued. The 2019 Plan reserved 17.9 million shares of common stock or 26.7 million options for future grants and will terminate on May 31, 2024. In addition, shares underlying any outstanding stock award or stock option grant canceled prior to vesting or exercise become available for use under the 2019 Plan. Under the terms of the 2019 Plan, all grants made after February 2, 2019 reduce the shares available for grant under the 2019 Plan. As of February 1, 2020 , a maximum of 21.2 million options were available for future grant under the 2019 Plan. Our stock option and restricted stock award grants have averaged about 3.5% of outstanding stock over the past three years. Authorized shares of the Company's common stock are used to settle the exercise of stock options, granting of restricted shares and vesting of restricted stock units. Stock-based Compensation Cost The components of total stock-based compensation costs are as follows: ($ in millions) 2019 2018 2017 Stock awards $ 10 $ 7 $ 18 Stock options 1 3 7 Total stock-based compensation $ 11 $ 10 $ 25 (1) Total income tax benefit recognized for stock-based compensation arrangements $ — $ — $ — (1) Excludes $2 million of stock-based compensation costs reported in restructuring and management transition charges (Note 18 ). Stock Options The Company has granted limited stock options in recent years. As of February 1, 2020 , we had 6,234,000 stock options exercisable and $0.4 million of unrecognized compensation expense, net of estimated forfeitures, for stock options not yet vested, which will be recognized as expense over the remaining weighted-average vesting period of approximately 2 years. Our weighted-average fair value of stock options at grant date was $0.86 in 2019 , $0.86 in 2018 and $2.91 in 2017 . We used the Black-Scholes option pricing model in 2019 and 2018 and primarily used the binomial lattice valuation model in 2017 to determine the fair value of the stock options granted. Stock Awards The following table summarizes our non-vested stock awards activity during the year ended February 1, 2020 : Time-Based Stock Awards Performance-Based Stock Awards (shares in thousands) Number of Units Weighted-Average Grant Date Fair Value Number of Units Weighted-Average Grant Date Fair Value Non-vested at February 2, 2019 11,070 $ 3 1,407 $ 5 Granted 10,601 1 — — Vested (5,073 ) 2 — — Forfeited/canceled (1,672 ) 3 (1,237 ) 5 Non-vested at February 1, 2020 14,926 2 170 4 As of February 1, 2020 , we had $14 million of unrecognized compensation expense related to unear ned employee stock awards, which will be recognized over the remaining weighted-average vesting period of approximately one year. The aggregate market value of shares vested during 2019 , 2018 and 2017 was $5 million , $11 million and $17 million , respectively, compared to an aggregate grant date fair value of $13 million , $25 million and $27 million , respectively. Stock awards granted include approximately 1.7 million fully vested RSUs to directors during 2019 with a fair value of $0.90 per RSU award. In addition to the grants above, on March 5, 2019, we granted approximately 8.0 million phantom units as part of our management incentive compensation plan, which are similar to RSUs in that the number of units granted was based on the price of our stock, but the units will be settled in cash based on the value of our stock on the vesting date, limited to $5.03 per phantom unit. The fair value of the awards is remeasured at each reporting period and was $0.75 per share as of February 1, 2020 . Compensation expense, which is variable, is recognized over the vesting period with a corresponding liability, which is recorded in Other accounts payable and accrued expenses and Other liabilities in our Consolidated Balance Sheets. The phantom units have a liability of $4 million as of February 1, 2020 . Cash of $1.5 million was paid during 2019 for previously granted phantom units. |
Leases
Leases | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Leases | Leases We conduct a major part of our operations from leased premises (building or land) that include retail stores, store distribution centers, warehouses, offices and other facilities. Almost all leases include renewal options where we can extend the lease term from one to 50 years or more. We also lease equipment under finance leases for terms of primarily three to five years , and we rent or sublease certain real estate to third parties. Our lease contracts do not contain any purchase options or residual value guarantees. Leases ($ in millions) Classification 2019 Assets Operating lease assets Operating lease assets $ 998 Total lease assets $ 998 Liabilities Current Operating Current operating lease liabilities $ 67 Finance Current portion of finance leases and note payable 1 Noncurrent Operating Noncurrent operating lease liabilities 1,108 Finance Long-term finance leases and note payable — Total lease liabilities $ 1,176 Lease Cost ($ in millions) Classification 2019 Operating lease cost Selling, general and administrative expense (SG&A) $ 196 Variable lease cost Selling, general and administrative expense (SG&A) 133 Finance lease cost Amortization of lease assets Depreciation and amortization — Interest on lease liabilities Net interest expense — Rental income Real estate and other, net 10 Net lease cost $ 319 As of February 1, 2020 , future lease payments were as follows: ($ in millions) Operating Leases Finance Leases Total 2020 $ 189 $ — $ 189 2021 197 — 197 2022 184 — 184 2023 180 — 180 2024 167 — 167 Thereafter 1,750 — 1,750 Total lease payments 2,667 — 2,667 Less: amounts representing interest (1,492 ) — (1,492 ) Present value of lease liabilities $ 1,175 $ — $ 1,175 Lease term and discount rate are as follows: 2019 Weighted-average remaining lease term (years) Operating leases 15 Weighted-average discount rate Operating leases 11 % Other information: ($ in millions) 2019 Cash paid for amounts included in the measurement of these liabilities Operating cash flows from operating leases 210 Operating cash flows from finance leases 1 Financing cash flows from finance leases 1 As determined prior to the adoption of the new lease standard, the future minimum lease payments under operating leases in effect as of February 2, 2019 were as follows: ($ in millions) 2019 $ 190 2020 178 2021 163 2022 148 2023 135 Thereafter 1,626 Less: sublease income (43 ) Total minimum lease payments $ 2,397 |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Feb. 01, 2020 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans We provide retirement pension benefits, postretirement health and welfare benefits, as well as 401(k) savings, profit-sharing and stock ownership plan benefits to various segments of our workforce. Retirement benefits are an important part of our total compensation and benefits program designed to retain and attract qualified, talented employees. Pension benefits are provided through defined benefit pension plans consisting of a non-contributory qualified pension plan (Primary Pension Plan) and, for certain management employees, non-contributory supplemental retirement plans, including a 1997 voluntary early retirement plan. Retirement and other benefits include: Defined Benefit Pension Plans Primary Pension Plan – funded Supplemental retirement plans – unfunded Other Benefit Plans Postretirement benefits – dental Defined contribution plans: 401(k) Safe harbor plan and the 401(k) savings, profit-sharing and stock ownership plan Deferred compensation plan Defined Benefit Pension Plans Primary Pension Plan — Funded The Primary Pension Plan is a funded non-contributory qualified pension plan, initiated in 1966 and closed to new entrants on January 1, 2007. The plan is funded by Company contributions to a trust fund, which are held for the sole benefit of participants and beneficiaries. Supplemental Retirement Plans — Unfunded We have unfunded supplemental retirement plans, which provide retirement benefits to certain management employees. We pay ongoing benefits from operating cash flow and cash investments. The plans are a Supplemental Retirement Program and a Benefit Restoration Plan. Participation in the Supplemental Retirement Program is limited to employees who were annual incentive-eligible management employees as of December 31, 1995. Benefits for these plans are based on length of service and final average compensation. The Benefit Restoration Plan is intended to make up benefits that could not be paid by the Primary Pension Plan due to governmental limits on the amount of benefits and the level of pay considered in the calculation of benefits. The Supplemental Retirement Program is a non-qualified plan that was designed to allow eligible management employees to retire at age 60 with retirement income comparable to the age 65 benefit provided under the Primary Pension Plan and Benefit Restoration Plan. In addition, the Supplemental Retirement Program offers participants who leave between ages 60 and 62 benefits equal to the estimated social security benefits payable at age 62 . The Supplemental Retirement Program also continues Company-paid term life insurance at a declining rate until it is phased out at age 70 . Employee-paid term life insurance through age 65 is continued under a separate plan (Supplemental Term Life Insurance Plan for Management Profit-Sharing Employees). Voluntary Early Retirement Program In 2017, the Company 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 special retirement benefits. The special 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 $7 million related to our Primary Pension Plan and Supplemental Pension Plans as a result of the reduction in the expected years of future service related to these plans. We also recognized settlement expense of $13 million in 2017 due to higher lump-sum payment activity to retirees primarily as a result of the VERP executed earlier in the year. Pension Expense/(Income) for Defined Benefit Pension Plans The components of net periodic benefit expense/(income) for our non-contributory qualified defined benefit pension plan and supplemental pension plans are as follows: ($ in millions) 2019 2018 2017 Service cost $ 28 $ 38 $ 42 Other components of net periodic pension and postretirement benefit cost/(income): Interest cost 131 141 150 Expected return on plan assets (191 ) (223 ) (216 ) Amortization of actuarial loss/(gain) 10 (3 ) 25 Amortization of prior service cost/(credit) 7 7 7 Settlement expense 8 7 13 Curtailment (gain)/loss recognized — — 7 Special termination benefit recognized — — 112 (35 ) (71 ) 98 Net periodic benefit expense/(income) $ (7 ) $ (33 ) $ 140 Service cost is included in SG&A in the Consolidated Statements of Operations. Assumptions The weighted-average actuarial assumptions used to determine expense were as follows: 2019 2018 2017 Expected return on plan assets 6.25 % 6.50 % 6.50 % Discount rate 4.33 % 3.98 % 4.40 % (1) Salary increase 2.8 % 3.8 % 3.9 % (1) As of January 31, 2017. The Primary Pension Plan was remeasured as of March 31, 2017 using a discount rate of 4.34% and as of October 31, 2017 using a discount rate of 3.94%. The expected return on plan assets is based on the plan’s long-term asset allocation policy, historical returns for plan assets and overall capital market returns, taking into account current and expected market conditions. The discount rate used to measure pension expense each year is the rate as of the beginning of the year (i.e., the prior measurement date). The discount rate used, determined by the plan actuary, was based on a hypothetical AA yield curve represented by a series of bonds maturing over the next 30 years, designed to match the corresponding pension benefit cash payments to retirees. The salary progression rate to measure pension expense was based on age ranges and projected forward. Funded Status As of the end of 2019 , the funded status of the Primary Pension Plan was 104% . The Primary Benefit Obligation (PBO) is the present value of benefits earned to date by plan participants, including the effect of assumed future salary increases. Under the Employee Retirement Income Security Act of 1974 (ERISA), the funded status of the plan exceeded 100% as of December 31, 2019 and 2018 , the qualified pension plan’s year end. The following table provides a reconciliation of benefit obligations, plan assets and the funded status of the Primary Pension Plan and supplemental pension plans: Primary Pension Plan Supplemental Plans ($ in millions) 2019 2018 2019 2018 Change in PBO Beginning balance $ 3,016 $ 3,467 $ 146 $ 182 Service cost 28 37 — 1 Interest cost 125 133 6 8 Settlements (153 ) (174 ) — — Actuarial loss/(gain) 478 (289 ) 14 (12 ) Benefits (paid) (147 ) (158 ) (30 ) (33 ) Balance at measurement date $ 3,347 $ 3,016 $ 136 $ 146 Change in fair value of plan assets Beginning balance $ 3,163 $ 3,528 $ — $ — Company contributions — — 30 33 Actual return on assets (1) 604 (33 ) — — Settlements (153 ) (174 ) — — Benefits (paid) (147 ) (158 ) (30 ) (33 ) Balance at measurement date $ 3,467 $ 3,163 $ — $ — Funded status of the plan $ 120 (2) $ 147 (2) $ (136 ) (3) $ (146 ) (3) (1) Includes plan administrative expenses. (2) $120 million in 2019 and $147 million in 2018 were included in Prepaid pension in the Consolidated Balance Sheets. (3) $27 million in 2019 and $30 million in 2018 were included in Other accounts payable and accrued expenses on the Consolidated Balance Sheets, and the remaining amounts were included in Other liabilities. In 2019 , the funded status of the Primary Pension Plan decreased by $27 million primarily due to lower interest rates. The actual one-year return on pension plan assets at the measurement date was 20.3% in 2019 , bringing the annualized return since inception of the plan to 9.0% . The following pre-tax amounts were recognized in Accumulated other comprehensive income/(loss) in the Consolidated Balance Sheets as of the end of 2019 and 2018 : Primary Pension Plan Supplemental Plans ($ in millions) 2019 2018 2019 2018 Net actuarial loss/(gain) $ 184 $ 129 $ 12 $ 9 Prior service cost/(credit) 23 30 (2 ) (3 ) Total $ 207 (1) $ 159 $ 10 $ 6 (1) In 2020 , approximately $6 million for the Primary Pension Plan is expected to be amortized from Accumulated other comprehensive income/(loss) and into the Consolidated Statement of Operations. Assumptions to Determine Obligations The weighted-average actuarial assumptions used to determine benefit obligations for each of the years below were as follows: 2019 2018 2017 Discount rate 3.08 % 4.33 % 3.98 % Salary progression rate 2.7 % 2.8 % 3.8 % Accumulated Benefit Obligation (ABO) The ABO is the present value of benefits earned to date, assuming no future salary growth. The ABO for our Primary Pension Plan was $3.2 billion as of the end of 2019 and $2.9 billion as of the end of 2018 . At the end of 2019 , plan assets of $3.467 billion for the Primary Pension Plan were above the ABO. The ABO for our unfunded supplemental pension plans was $130 million and $141 million as of the end of 2019 and 2018 , respectively. Primary Pension Plan Asset Allocation The target allocation ranges for each asset class as of the end of 2019 and the fair value of each asset class as a percent of the total fair value of pension plan assets were as follows: 2019 Target Plan Assets Asset Class Allocation Ranges 2019 2018 Equity 10% - 25% 17 % 18 % Fixed income 60% - 75% 74 % 68 % Real estate, cash and other investments 0% - 25% 9 % 14 % Total 100 % 100 % Asset Allocation Strategy In 2009, we began implementing a liability-driven investment (LDI) strategy to lower the plan’s volatility risk and minimize the impact of interest rate changes on the plan funded status. The implementation of the LDI strategy is phased in over time by reallocating the plan’s assets more towards fixed income investments (i.e., debt securities) that are more closely matched in terms of duration to the plan liability. In 2018, we shifted 5% of the plan's target allocation from equities into fixed income. The plan’s asset portfolio is actively managed and primarily invested in fixed income balanced with investments in equity securities and other asset classes to maintain an efficient risk/return diversification profile. The risk of loss in the plan’s equity portfolio is mitigated by investing in a broad range of equity securities across different sectors and countries. Investment types, including high-yield debt securities, illiquid assets such as real estate, the use of derivatives and Company securities are set forth in written guidelines established for each investment manager and monitored by the plan’s management team. The plan’s asset allocation policy is designed to meet the plan’s future pension benefit obligations. Under the policy, asset classes are periodically reviewed and rebalanced as necessary, to ensure that the mix continues to be appropriate relative to established targets and ranges. We have an internal Benefit Plans Investment Committee (BPIC), which consists of senior executives who have established a review process of asset allocation and investment strategies and oversee risk management practices associated with the management of the plan’s assets. Key risk management practices include having an established and broad decision-making framework in place, focused on long-term plan objectives. This framework consists of the BPIC and various third parties, including investment managers, an investment consultant, an actuary and a trustee/custodian. The funded status of the plan is monitored on a continuous basis, including quarterly reviews with updated market and liability information. Actual asset allocations are monitored monthly and rebalancing actions are executed at least quarterly, if needed. To manage the risk associated with an actively managed portfolio, the plan’s management team reviews each manager’s portfolio on a quarterly basis and has written manager guidelines in place, which are adjusted as necessary to ensure appropriate diversification levels. Finally, to minimize operational risk, we utilize a master custodian for all plan assets, and each investment manager reconciles its account with the custodian at least quarterly. Fair Value of Primary Pension Plan Assets The tables below provide the fair values of the Primary Pension Plan’s assets as of the end of 2019 and 2018 , by major class of asset. Investments at Fair Value at February 1, 2020 ($ in millions) Level 1 (1) Level 2 (1) Level 3 Total Assets Cash $ 30 $ — $ — $ 30 Common collective trusts — 65 — 65 Cash and cash equivalents total 30 65 — 95 Common collective trusts – international — 42 — 42 Equity securities – domestic 356 — — 356 Equity securities – international 154 — — 154 Equity securities total 510 42 — 552 Common collective trusts — 325 — 325 Corporate bonds — 1,833 4 1,837 Swaps — 630 — 630 Government securities — 441 — 441 Mortgage backed securities — 15 — 15 Other fixed income — 140 6 146 Fixed income total — 3,384 10 3,394 Public REITs 48 — — 48 Real estate total 48 — — 48 Total investment assets at fair value $ 588 $ 3,491 $ 10 $ 4,089 Liabilities Swaps $ — $ (625 ) $ — $ (625 ) Other fixed income (10 ) (10 ) — (20 ) Fixed income total (10 ) (635 ) — (645 ) Total liabilities at fair value $ (10 ) $ (635 ) $ — $ (645 ) Accounts payable, net (223 ) Investments at Net Asset Value (NAV) (2) Private equity $ 123 Private real estate 51 Hedge funds 72 Total investments at NAV $ 246 Total net assets $ 3,467 (1) There were no significant transfers in or out of level 1 or 2 investments. (2) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheet. Investments at Fair Value at February 2, 2019 ($ in millions) Level 1 (1) Level 2 (1) Level 3 Total Assets Cash $ 9 $ — $ — $ 9 Common collective trusts — 60 — 60 Cash and cash equivalents total 9 60 — 69 Common collective trusts – international — 55 — 55 Equity securities – domestic 326 — — 326 Equity securities – international 146 — — 146 Equity securities total 472 55 — 527 Common collective trusts — 897 — 897 Corporate bonds — 985 4 989 Swaps — 647 — 647 Government securities — 200 — 200 Mortgage backed securities — 5 — 5 Other fixed income — 107 6 113 Fixed income total — 2,841 10 2,851 Public REITs 41 — — 41 Real estate total 41 — — 41 Total investment assets at fair value $ 522 $ 2,956 $ 10 $ 3,488 Liabilities Swaps $ — $ (642 ) $ — $ (642 ) Other fixed income (7 ) (2 ) — (9 ) Fixed income total (7 ) (644 ) — (651 ) Total liabilities at fair value $ (7 ) $ (644 ) $ — $ (651 ) Accounts payable, net (26 ) Investments at Net Asset Value (NAV) (2) Private equity $ 164 Private real estate 55 Hedge funds 133 Total investments at NAV $ 352 Total net assets $ 3,163 (1) There were no significant transfers in or out of level 1 or 2 investments. (2) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheet. Following is a description of the valuation methodologies used for Primary Pension Plan assets measured at fair value. Cash – Cash is valued at cost which approximates fair value, and is classified as level 1 of the fair value hierarchy. Common Collective Trusts – Common collective trusts are pools of investments within cash equivalents, equity and fixed income that are benchmarked relative to a comparable index. They are valued on the basis of the relative interest of each participating investor in the fair value of the underlying assets. The investments are valued at net asset value (NAV) as fair value and are classified as level 2 of the fair value hierarchy. Equity Securities – Equity securities are common stocks and preferred stocks valued based on the price of the security as listed on an open active exchange and classified as level 1 of the fair value hierarchy, as well as warrants and preferred stock that are valued at a price, which is based on a broker quote in an over-the-counter market, and are classified as level 2 of the fair value hierarchy. Private Equity – Private equity is composed of interests in private equity funds valued on the basis of the relative interest of each participating investor in the fair value of the underlying assets and/or common stock of privately held companies. There are no observable market values for private equity funds. The valuations for the funds are derived using a combination of different methodologies including (1) the market approach, which consists of analyzing market transactions for comparable assets, (2) the income approach using the discounted cash flow model, or (3) cost method. Private equity funds also provide audited financial statements. Private equity investments are valued at NAV as a practical expedient. Corporate Bonds – Corporate bonds and Corporate loans are valued at a price which is based on observable market information in primary markets or a broker quote in an over-the-counter market, and are classified as level 2 or level 3 of the fair value hierarchy. Swaps – swap contracts are based on broker quotes in an over-the-counter market and are classified as level 2 of the fair value hierarchy. Government, Municipal Bonds and Mortgaged Backed Securities – Government and municipal securities are valued at a price based on a broker quote in an over-the-counter market and classified as level 2 of the fair value hierarchy. Mortgage backed securities are valued at a price based on observable market information or a broker quote in an over-the-counter market and classified as level 2 of the fair value hierarchy. Other Fixed Income – non-mortgage asset backed securities, collateral held in short-term investments for derivative contract and derivatives composed of futures contracts, option contracts and other fixed income derivatives valued at a price based on observable market information or a broker quote in an over-the-counter market and classified as level 2 of the fair value hierarchy. Real Estate – Real estate is comprised of public and private real estate investments. Real estate investments through registered investment companies that trade on an exchange are classified as level 1 of the fair value hierarchy. Investments through open end private real estate funds, depending on the type of investment, are valued at the reported NAV as fair value or are classified as level 2 of the fair value hierarchy. Private real estate investments through partnership interests that are valued based on different methodologies including discounted cash flow, direct capitalization and market comparable analysis are valued at NAV as a practical expedient. Hedge Fund – Hedge funds exposure is through fund of funds, which are made up of over 30 different hedge fund managers diversified over different hedge strategies. The fair value of the hedge fund is determined by the fund's administrator using valuation provided by the third party administrator for each of the underlying funds. Hedge fund investments are valued at NAV as a practical expedient. The following tables set forth a summary of changes in the fair value of the Primary Pension Plan’s level 3 investment assets: 2019 ($ in millions) Corporate Loans Corporate Bonds Balance, beginning of year $ 6 $ 4 Purchases and issuances — — Sales, maturities and settlements — — Balance, end of year $ 6 $ 4 2018 ($ in millions) Corporate Loans Corporate Bonds Balance, beginning of year $ 4 $ 10 Purchases and issuances 3 — Sales, maturities and settlements (1 ) (6 ) Balance, end of year $ 6 $ 4 Contributions Our policy with respect to funding the Primary Pension Plan is to fund at least the minimum required by ERISA rules, as amended by the Pension Protection Act of 2006, and not more than the maximum amount deductible for tax purposes. Due to our past funding of the pension plan and overall positive growth in plan assets since plan inception, there will not be any required cash contribution for funding of plan assets in 2020 under ERISA. Our contributions to the unfunded non-qualified supplemental retirement plans are equal to the amount of benefit payments made to retirees throughout the year and for 2020 are anticipated to be approximately $27 million . Benefits are paid in the form of five equal annual installments to participants and no election as to the form of benefit is provided for in the unfunded plans. The following sets forth our estimated future benefit payments: ($ in millions) Primary Plan Benefits Supplemental Plan Benefits 2020 $ 237 $ 27 2021 236 22 2022 235 9 2023 229 8 2024 227 8 2025-2029 1,067 38 Other Benefit Plans Defined Contribution Plans The Savings, Profit-Sharing and Stock Ownership Plan (Savings Plan) is a qualified defined contribution plan, a 401(k) plan, available to all eligible employees. Effective January 1, 2007, all employees who are age 21 or older are immediately eligible to participate in and contribute a percentage of their pay to the Savings Plan. Eligible employees, who have completed one year and at least 1,000 hours of service within an eligibility period, are offered a fixed matching contribution each pay period equal to 50% of up to 6% of pay contributed by the employee. Matching contributions are credited to employees’ accounts in accordance with their investment elections and fully vest after three years . We may make additional discretionary matching contributions. Effective January 1, 2017, the Company added a Safe Harbor 401(k) Plan that was made available for active employees hired on or after January 1, 2007. The Company matching contributions under the Safe Harbor Plan are equal to 100% of up to 5% of pay contributed by the employee. Matching contributions are credited to employees' accounts in accordance with their investment elections and fully vest immediately. The Safe Harbor Plan replaces the non-contributory retirement account. In addition to the Savings Plan, we sponsor the Mirror Savings Plan, which is a non-qualified contributory unfunded defined contribution plan offered to certain management employees. This plan supplements retirement savings under the Savings Plan for eligible management employees who choose to participate in it. The plan’s investment options generally mirror the traditional Savings Plan investment options. Similar to the supplemental retirement plans, the Mirror Savings Plan benefits are paid from our operating cash flow and cash investments. The expense for these plans was included in SG&A expenses in the Consolidated Statements of Operations, was $43 million in 2019 , $43 million in 2018 and $46 million in 2017 . |
Restructuring and Management Tr
Restructuring and Management Transition | 12 Months Ended |
Feb. 01, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Management Transition | Restructuring and Management Transition In the first quarter of 2019, the Company finalized plans to close 18 full-line stores and 9 ancillary home and furniture stores, further aligning the Company's brick-and-mortar presence with its omnichannel network, and enabling capital resources to be reallocated to locations and initiatives that offer the greatest long-term value potential. The planned store closures resulted in a $14 million asset impairment charge for store assets with limited future use and a $1 million severance charge for the expected displacement of store associates. During the second half of 2019, impairment charges of $5 million were recorded for the planned closure of 6 stores in 2020. 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 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 2017, $52 million in store related closing and other costs such as certain lease obligations were recorded as a result of each respective store ceasing operations. The components of Restructuring and management transition include: • Home office and stores -- charges for actions to reduce our store and home office expenses including employee termination benefits, store lease termination and impairment charges; • Management transition -- charges related to implementing changes within our management leadership team for both incoming and outgoing members of management; and • Other -- charges related primarily to costs related to the closure of certain supply chain locations. The composition of restructuring and management transition charges was as follows: Cumulative Amount From Program Inception Through ($ in millions) 2019 2018 2017 2019 Home office and stores $ 43 $ 13 $ 176 $ 529 Management transition 5 9 — 269 Other — — 8 186 Total $ 48 $ 22 $ 184 $ 984 Activity for the restructuring and management transition liability for 2019 and 2018 was as follows: ($ in millions) Home Office and Stores Management Transition Other Total February 3, 2018 $ 34 $ — $ 7 $ 41 Charges 16 9 — 25 Cash payments (34 ) (9 ) (5 ) (48 ) February 2, 2019 16 — 2 18 Impact of ASC 842 adoption (Note 3) (13 ) — (1 ) (14 ) Charges 19 5 1 25 Cash payments (16 ) (3 ) (2 ) (21 ) February 1, 2020 $ 6 $ 2 $ — $ 8 |
Real Estate and Other, Net
Real Estate and Other, Net | 12 Months Ended |
Feb. 01, 2020 | |
Real Estate and Other, Net [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | Real Estate and Other, Net Real estate and other primarily 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. Prior to 2019, real estate and other also consisted of ongoing income from our real estate subsidiaries. During the first quarter of 2014, we formed a joint venture to develop property adjacent to our home office facility in Plano, Texas (Home Office Land Joint Venture) in which we contributed approximately 220 acres of property. 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. During the third quarter of 2018, we sold our interest to the other partner and are no longer a member of the joint venture. The composition of real estate and other, net was as follows: ($ in millions) 2019 2018 2017 Net gain from sale of non-operating assets $ (1 ) $ — $ — Investment income from Home Office Land Joint Venture — (4 ) (31 ) Net gain from sale of operating assets (8 ) (67 ) (119 ) Impairments — 52 — Other (6 ) — 4 Total expense/(income) $ (15 ) $ (19 ) $ (146 ) Investment Income from Joint Ventures In 2018 and 2017 , the Company had $4 million and $31 million , respectively, in income related to its proportional share of the net income in the Home Office Land Joint Venture and received aggregate cash distributions of $4 million and $40 million , respectively. Net Gain from Sale of Operating Assets In 2018, we completed the sale-leasebacks of our Milwaukee, Wisconsin and Manchester, Connecticut distribution facilities for net sales prices of $30 million and $68 million , respectively and recognized net gains of $12 million and $38 million , respectively. In 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 . Impairments During 2018, we recorded an impairment charge of $52 million related to management's decision to sell three airplanes. Two of the airplanes were sold during the second quarter of 2018 at their fair value of $12 million and the third airplane was sold during the third quarter of 2018 at its fair value of $8 million . |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of our income tax expense/(benefit) were as follows: ($ in millions) 2019 2018 2017 Current Federal and foreign $ 4 $ (5 ) $ (60 ) State and local 6 1 1 Total current 10 (4 ) (59 ) Deferred Federal and foreign (6 ) (17 ) (63 ) State and local (1 ) 5 (4 ) Total deferred (7 ) (12 ) (67 ) Total income tax expense/(benefit) $ 3 $ (16 ) $ (126 ) The following table summarizes a reconciliation of income tax expense/(benefit) compared with the amounts at the U.S. federal statutory income tax rate: ($ in millions) 2019 2018 2017 Federal income tax at statutory rate $ (56 ) $ (57 ) $ (82 ) State and local income tax, less federal income tax benefit (12 ) (17 ) (12 ) Increase/(decrease) in valuation allowance 61 47 33 Effect of U.S. tax reform — — (75 ) Other, including permanent differences and credits 10 11 10 Total income tax expense/(benefit) $ 3 $ (16 ) $ (126 ) Our deferred tax assets and liabilities were as follows: ($ in millions) 2019 2018 Assets Merchandise inventory $ 7 $ 4 Accrued vacation pay 8 8 Gift cards 36 35 Stock-based compensation 18 19 State taxes 1 3 Workers’ compensation/general liability 38 41 Accrued rent — 27 Litigation exposure 1 2 Interest expense limitation 83 48 Mirror savings plan 7 7 Pension and other retiree obligations 4 1 Operating lease liabilities 299 — Net operating loss and tax credit carryforwards 710 707 Other 56 52 Total deferred tax assets 1,268 954 Valuation allowance (869 ) (802 ) Total net deferred tax assets 399 152 Liabilities Depreciation and amortization (193 ) (223 ) Tax benefit transfers (26 ) (29 ) Long-lived intangible assets (36 ) (31 ) Operating lease assets (260 ) — Total deferred tax liabilities (515 ) (283 ) Total net deferred tax liabilities $ (116 ) $ (131 ) The Tax Act, enacted in December 2017, significantly changed the U.S. corporate income tax laws. In connection with the enactment, we recorded a net benefit of $75 million during the fourth quarter of 2017, which is primarily due to the revaluation of net deferred tax liabilities based on the new lower corporate income tax rate. As of February 1, 2020 , a valuation allowance of $869 million has been recorded against our deferred tax assets. 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 assessment, we concluded that, beginning in the second quarter of 2013, our estimate of the realization of deferred tax assets would be based solely 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 net operating loss (NOL) and tax credit carryforwards. We are required to allocate a portion of our tax provision between operating losses and Accumulated other comprehensive income/(loss). In 2019, the Company did not benefit any of its operating loss and incurred an actuarial loss in Other comprehensive income/(loss), the tax benefit on which was fully offset by a valuation allowance within Other comprehensive income/(loss). Accordingly, there is a valuation allowance offsetting the tax benefit attributable to other comprehensive income included in the total valuation allowance of $869 million noted above. The Company has federal net operating loss (NOL) carryforwards of $2.1 billion and $76 million of federal tax credit carryforwards as of February 1, 2020 that expire in 2032 through 2034. These NOL carryforwards arose prior to December 31, 2017 and are available to offset future taxable income. The Company may recognize additional NOLs in the future which, under the Tax Act, would not expire but would only be available to offset up to 80% of the Company’s future taxable income. The Company has $341 million of federal unused interest deductions that do not expire but can be used in the future only to the extent the Company has interest limitation (explained below) in excess of its interest expense. Additionally, the Company has state NOLs that are subject to various limitations and expiration dates beginning in 2020 through 2040 and are offset fully by valuation allowances. The NOL and credit carryforwards have a potential to be used to offset future taxable income and reduce future cash tax liabilities by approximately $710 million . The Company’s ability to utilize these carryforwards will depend upon the availability of future taxable income during the carryforward period and, as such, there is no assurance the Company will be able to realize such tax savings. Interest Limitation: The Tax Act limits the Company’s interest deduction to 30% of tax earnings before interest, tax, depreciation and amortization beginning in 2018 through 2021. Thereafter, the interest deduction is limited to 30% of tax earnings before interest and taxes. Any disallowed interest in a year becomes a separate deferred tax asset with an indefinite carryforward period that can be utilized by the Company in a future tax year by an amount equal to its interest limitation in excess of its interest expense for that year. In 2019, the Company had net interest expense of $119 million disallowed which became a $35 million deferred tax asset on which a full valuation allowance was recorded. The Company’s ability to utilize NOL and credit carryforwards and unused interest deductions could be further limited if it were to experience an “ownership change,” as defined in Section 382 of the Code and similar state provisions. An ownership change can occur whenever there is a cumulative shift in the ownership of a company by more than 50 percentage points by one or more “5% stockholders” within a three-year period. The occurrence of such a change generally limits the amount of carryforwards a company could utilize in a given year to the aggregate fair market value of the company’s common stock immediately prior to the ownership change, multiplied by the long-term tax-exempt interest rate in effect for the month of the ownership change. As discussed in Note 14, on January 27, 2014, the Board adopted the Amended Rights Agreement to help prevent acquisitions of the Company’s common stock that could result in an ownership change under Section 382 which helps preserve the Company’s ability to use its NOL and tax credit carryforwards. The Amended Rights Agreement was ratified by the shareholder vote on May 16, 2014. On May 19, 2017, stockholders approved the extension of the term of the agreement to January 26, 2020. On January 24, 2020, the term of the Amended Rights Agreement was extended to January 25, 2023. The Company expects to submit the extension of the Amended Rights Agreement to stockholders for approval at its 2020 annual meeting of stockholders. If stockholders do not approve the extension of the Amended Rights Agreement, the Amended Rights Agreement will terminate. The Amended Rights Agreement is designed to prevent acquisitions of the Company’s common stock that would result in a stockholder owning 4.9% or more of the Company’s common stock (as calculated under Section 382), or any existing holder of 4.9% or more of the Company’s common stock acquiring additional shares, by substantially diluting the ownership interest of any such stockholder unless the stockholder obtains an exemption from the Board. A reconciliation of unrecognized tax benefits is as follows: ($ in millions) 2019 2018 2017 Beginning balance $ 35 $ 35 $ 79 Additions for tax positions of prior years 2 3 4 Reductions for tax positions of prior years — (1 ) (45 ) Settlements and effective settlements with tax authorities (1 ) (2 ) (3 ) Balance at end of year $ 36 $ 35 $ 35 Unrecognized tax benefits included in our Consolidated Balance Sheets were as follows: ($ in millions) 2019 2018 Deferred taxes (noncurrent liability) $ 35 $ 32 Accounts payable and accrued expenses (Note 8) — 2 Other liabilities (Note 9) 1 1 Total $ 36 $ 35 As of the end of 2019 , 2018 and 2017 , the unrecognized tax benefits balance included $33 million , that, if recognized, would be a benefit in the income tax provision after giving consideration to the offsetting effect of $7 million , $7 million and $7 million , respectively, related to the federal tax deduction of state taxes. The remaining amounts reflect tax positions for which the ultimate deductibility is highly certain, but for which there is uncertainty about the timing. Accrued interest and penalties related to unrecognized tax benefits included in income tax expense as of the end of 2019 , 2018 and 2017 were $2 million , $1 million and $1 million , respectively. We file income tax returns in U.S. federal and state jurisdictions and certain foreign jurisdictions. Our U.S. federal returns have been examined through 2016. We are audited by the taxing authorities of many states and certain foreign countries and are subject to examination by these taxing jurisdictions for years generally after 2008. The tax authorities may have the right to examine prior periods where federal and state NOL and tax credit carryforwards were generated, and make adjustments up to the amount of the NOL and credit carryforward amounts. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Feb. 01, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information ($ in millions) 2019 2018 2017 Supplemental cash flow information Income taxes received/(paid), net $ (9 ) $ (8 ) $ (9 ) Interest received/(paid), net (279 ) (293 ) (302 ) Supplemental non-cash investing and financing activity Increase/(decrease) in other accounts payable related to purchases of property and equipment and software (27 ) (15 ) 25 Purchase of property and equipment and software through a financing obligation (1 ) — — Remeasurement of leased assets and lease obligations 94 — — |
Litigation, Other Contingencies
Litigation, Other Contingencies and Guarantees | 12 Months Ended |
Feb. 01, 2020 | |
Litigation, Other Contingencies and Guarantees [Abstract] | |
Litigation, Other Contingencies and Guarantees | Litigation and Other Contingencies Litigation Shareholder Derivative Litigation and Demand On October 19, 2018, a shareholder of the Company, Juan Rojas, filed a shareholder derivative action against certain present and former members of the Company’s Board of Directors in the Delaware Court of Chancery. The Company was named as a nominal defendant. The lawsuit asserted claims for breaches of fiduciary duties based on alleged failures to prevent the Company from engaging in allegedly unlawful promotional pricing practices. On July 29, 2019, the Court granted defendants' motion to dismiss and dismissed plaintiff’s complaint with prejudice. On October 21, 2019, the Company’s Board of Directors received a demand from Rojas to conduct an investigation of alleged breaches of fiduciary duties similar to those made in the dismissed derivative action regarding alleged failures to prevent the Company from engaging in allegedly unlawful promotional pricing practices. 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 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. 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, 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 February 1, 2020 , we have an estimated accrual of $19 million related to potential environmental liabilities that is recorded in Other liabilities in the Consolidated Balance Sheet. This estimate covered potential liabilities primarily related to underground storage tanks and remediation of environmental conditions involving our former drugstore locations. 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 estimated amount, we do not believe that such losses would have a material effect on our results of operations, financial position, liquidity or capital resources. |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Event During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (COVID-19). The pandemic has significantly impacted the economic conditions in the U.S., accelerating during the first half of March, as federal, state and local governments react to the public health crisis, creating significant uncertainties in the U.S. economy. The Company has announced that all stores will close through April 1, 2020. As a result of these developments, the Company expects a material adverse impact on its sales, results of operations and cash flows. This situation is rapidly changing and additional impacts to the business may arise that we are not aware of currently. While the disruption is currently expected to be temporary, there is uncertainty around the duration. The ultimate impact of the pandemic on the Company’s results of operations, financial position, liquidity or capital resources cannot be reasonably estimated at this time. On March 16 and March 19, 2020, the Company borrowed $800 million and $450 million, respectively, from the Revolving Facility (see Note 12) as a precautionary measure to increase its cash position and preserve financial flexibility considering uncertainty in the U.S. and global markets resulting from COVID-19. Borrowings under the Revolving Facility will bear interest, at the Company’s option, at a base rate or LIBOR, plus an applicable interest rate margin varying depending on the Company’s utilization of the Revolving Facility. The current rates on the borrowings will range from 2.75% to 4.0%. The proceeds from the Revolving Facility draw may be used for working capital needs or general corporate purposes. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Data [Abstract] | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) The following is a summary of our quarterly unaudited consolidated results of operations for 2019 and 2018 : 2019 ($ in millions, except EPS) First Quarter Second Quarter Third Quarter Fourth Quarter Total net sales $ 2,439 $ 2,509 $ 2,384 $ 3,384 Credit income and other 116 110 116 109 Total revenues 2,555 2,619 2,500 3,493 Cost of goods sold (exclusive of depreciation and amortization) 1,630 1,585 1,541 2,257 SG&A expenses 856 870 854 1,005 Restructuring and management transition (1) 20 7 9 12 Net income/(loss) (154 ) (48 ) (93 ) 27 Diluted earnings/(loss) per share (2) $ (0.48 ) $ (0.15 ) $ (0.29 ) $ 0.08 2018 ($ in millions, except EPS) First Quarter Second Quarter Third Quarter Fourth Quarter Total net sales $ 2,584 $ 2,762 $ 2,653 $ 3,665 Credit income and other 87 67 80 121 Total revenues 2,671 2,829 2,733 3,786 Cost of goods sold (exclusive of depreciation and amortization) 1,712 1,831 1,808 2,519 SG&A expenses 826 880 883 1,007 Restructuring and management transition (3) 7 2 11 2 Net income/(loss) (78 ) (101 ) (151 ) 75 Diluted earnings/(loss) per share (2) $ (0.25 ) $ (0.32 ) $ (0.48 ) $ 0.24 (1) Restructuring and management transition charges (Note 18) by quarter for 2019 consisted of the following: ($ in million) First Quarter Second Quarter Third Quarter Fourth Quarter Home office and stores $ 19 $ 4 $ 8 $ 12 Management transition 1 3 1 — Total $ 20 $ 7 $ 9 $ 12 (2) EPS is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in average quarterly shares outstanding. (3) Restructuring and management transition charges (Note 18) by quarter for 2018 consisted of the following: ($ in millions) First Quarter Second Quarter Third Quarter Fourth Quarter Home office and stores $ 7 $ 2 $ 2 $ 2 Management transition — — 9 — Total $ 7 $ 2 $ 11 $ 2 |
Basis of Presentation and Con_2
Basis of Presentation and Consolidation (Policy) | 12 Months Ended |
Feb. 01, 2020 | |
Basis of Presentation and Consolidation [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The Consolidated Financial Statements present the results of J. C. Penney Company, Inc. and our subsidiaries (the Company or JCPenney). All significant inter-company transactions and balances have been eliminated in consolidation. We are 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 direct subsidiaries other than JCP, and has no independent assets or operations. The Company is a co-obligor (or guarantor, as appropriate) regarding the payment of principal and interest on JCP’s outstanding debt securities. We guarantee certain of JCP’s outstanding debt securities fully and unconditionally. |
Fiscal Year | Fiscal Year Our fiscal year ends on the Saturday closest to January 31. Unless otherwise stated, references to years in this report relate to fiscal years rather than to calendar years. Fiscal Year Ended Weeks 2019 February 1, 2020 52 2018 February 2, 2019 52 2017 February 3, 2018 53 |
Use of Estimates and Assumptions | Use of Estimates and Assumptions |
Significant Accounting Polici_2
Significant Accounting Policies (Policy) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Revenue | Revenue Our contracts with customers primarily consist of sales of merchandise and services at the point of sale, sales of gift cards to a customer for a future purchase, customer loyalty rewards that provide discount rewards to customers based on purchase activity, and certain licensing and profit sharing arrangements involving the use of our intellectual property by others. Revenue includes Total net sales and Credit income and other. Net sales are categorized by merchandise and service sale groupings as we believe it best depicts the nature, amount, timing and uncertainty of revenue and cash flow. Credit income and other encompasses the revenue earned from the agreement with Synchrony Financial (Synchrony) associated with our private label credit card and co-branded MasterCard® programs. Merchandise and Service Sales Total net sales, which exclude sales taxes, are generally recorded when payment is received and the customer takes control of the merchandise. Service revenue is recorded at the time the customer receives the benefit of the service, such as salon, portrait, optical or custom decorating. Shipping and handling fees charged to customers are also included in total net sales with corresponding costs recorded as cost of goods sold. Net sales are not recognized for estimated future returns which are estimated based primarily on historical return rates and sales levels. Gift Card Revenue At the time gift cards are sold a performance obligation is created and no revenue is recognized; rather, a contract liability is established for our obligation to provide a merchandise or service sale to the customer for the face value of the card. The contract liability is relieved and a net sale is recognized when gift cards are redeemed for merchandise or services. We recognize gift card breakage, net of required escheatment, over the redemption pattern of gift cards. Breakage is estimated based on historical redemption patterns and the estimates can vary based on changes in the usage patterns of our customers. Customer Loyalty Rewards Customers who spend a certain amount with us using our private label card or registered loyalty card receive points that can accumulate towards earning JCPenney Rewards certificates, which are redeemable for a discount on future purchases. Points earned by a loyalty customer do not expire but any certificates earned expire two months from the date of issuance. We account for our customer loyalty rewards by deferring a portion of our sales to loyalty points expected to be earned towards a reward certificate, and then recognize the reward certificate as a net sale when used by the customer in connection with a merchandise or service sale. The points earned toward a future reward are valued at their relative standalone selling price by applying fair value based on historical redemption patterns. Licensing Agreements Our private label credit card and co-branded MasterCard® programs are owned and serviced by Synchrony. Under our agreement, we receive periodic cash payments from Synchrony based upon the consumer's usage of co-branded card and the performance of the credit card portfolio. We participate in the programs by providing marketing promotions designed to increase the use of each card, including enhanced marketing offers for cardholders. Additionally, we accept payments in our stores from cardholders who prefer to pay in person when they are shopping in our locations. Revenue related to this agreement is recognized over the time we have fulfilled our deliverables and is reflected in Credit income and other. Principal Versus Agent We assess principal versus agent considerations depending on our control of the good or service before it is transferred to the customer. When we are the principal and have control of the specified good or service, we include as a net sale the gross amount of consideration to which we expect to be entitled for that specified good or service in revenue. In contrast, when we are the agent and do not have control of the specified good or service, we include as a net sale the fee or commission to which we expect to be entitled for the agency service. In certain instances, the fee or commission might be the net amount retained after paying the supplier. |
Cost of Goods Sold (Exclusive of Depreciation and Amortization) | Cost of Goods Sold (Exclusive of Depreciation and Amortization) Cost of goods sold includes costs directly related to bringing merchandise to its final selling destination. These costs include the cost of the merchandise (net of discounts or allowances earned), sourcing and procurement costs, buying and brand development costs, including buyers’ salaries and related expenses, royalties and design fees, freight costs, warehouse operating expenses, merchandise examination, inspection and testing, store merchandise distribution center expenses, including rent, and shipping and handling costs incurred on eCommerce sales. |
Vendor Allowances | Vendor Allowances We receive vendor support in the form of cash payments or allowances for a variety of reimbursements such as cooperative advertising, markdowns, vendor shipping and packaging compliance, defective merchandise, the purchase of vendor specific fixtures and other vendor contributions. We have agreements in place with each vendor setting forth the specific conditions for each allowance or payment. Depending on the arrangement, we either recognize the allowance as a reduction of current costs or defer the payment over the period the related merchandise is sold. If the payment is a reimbursement for costs incurred, it is generally offset against those related costs; otherwise, it is treated as a reduction to the cost of merchandise. Markdown reimbursements related to merchandise that has been sold are negotiated and documented by our buying teams and are credited directly to cost of goods sold in the period an agreement has been reached. Vendor allowances received prior to merchandise being sold are deferred and recognized as a reduction of inventory and credited to cost of goods sold based on an inventory turnover rate. Vendor compliance credits reimburse us for incremental merchandise handling expenses incurred due to a vendor’s failure to comply with our established shipping or merchandise preparation requirements. Vendor compliance credits are recorded as a reduction of merchandise handling costs. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses SG&A expenses include the following costs, except as related to merchandise buying, sourcing, warehousing or distribution activities: salaries, marketing costs, occupancy and rent expense, utilities and maintenance, pre-opening expenses, costs related to information technology, administrative costs related to our home office and district and regional operations, real and personal property and other taxes (excluding income taxes) and credit/debit card fees. |
Advertising Cost, Expensed | Advertising costs, which include newspaper, television, Internet search marketing, radio and other media advertising, are expensed either as incurred or the first time the advertisement occurs. |
Cooperative Advertising Programs | For cooperative advertising programs offered by national brands that require proof of advertising to be provided to the vendor to support the reimbursement of the incurred cost, we offset the allowances against the related advertising expense. Programs that do not require proof of advertising are monitored to ensure that the allowance provided by each vendor is a reimbursement of costs incurred to advertise for that particular vendor’s label. |
Income Taxes | Income Taxes |
Earnings/(Loss) per Share | Earnings/(Loss) per Share Basic earnings/(loss) per share (EPS) is computed by dividing net income/(loss) by the weighted-average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income/(loss) by the weighted-average number of common shares outstanding during the period plus the number of additional common shares that would have been outstanding if the potentially dilutive shares had been issued. Potentially dilutive shares include stock options, unvested restricted stock units and awards and a warrant outstanding during the period, using the treasury stock method. Potentially dilutive shares are excluded from the computations of diluted EPS if their effect would be anti-dilutive. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash short-term investments that are highly liquid investments with original maturities of three months or less. Cash short-term investments consist primarily of short-term U.S. Treasury money market funds and a portfolio of highly rated bank deposits and are stated at cost, which approximates fair market value due to the short-term maturity. Cash in banks and in transit also include credit card sales transactions that are settled early in the following period. |
Merchandise Inventory | Merchandise Inventory Inventories are valued at the lower of cost (using the first-in, first-out or “FIFO” method) or market using the retail method (RIM). Under RIM, retail values of merchandise groups are converted to a cost basis by applying the specific average cost-to-retail ratio related to each merchandise grouping. In 2017, we changed our method of accounting for merchandise inventories for our eCommerce operations from the lower of standard cost (representing average vendor costs) or net realizable value to the lower of cost or market using RIM. Along with this change, we retired certain legacy systems and implemented a new module of our enterprise resource planning system to account for merchandise inventories. Shrinkage accruals are estimated as a percent of sales for a given period based on physical inventory counts or cycle count activities. Physical inventory counts for stores are taken at least annually and cycle count activities for distribution centers and regional warehouses are executed on a daily basis. Inventory records and shrinkage accruals are adjusted based on the actual results from physical inventories and cycle counts. The shrinkage rate from the most recent physical inventory and cycle count activity, in combination with current events and historical experience, is used as the standard for the shrinkage accrual rate for the next inventory cycle or cycle count activity. Historically, our actual physical inventory and cycle counts results have shown our estimates to be reliable. |
Property and Equipment, Net | Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed primarily by using the straight-line method over the estimated useful lives of the related assets. We expense routine maintenance and repairs when incurred. We capitalize major replacements and improvements. We remove the cost of assets sold or retired and the related accumulated depreciation or amortization from the accounts and include any resulting gain, loss or impairment in net income/(loss). We recognize a liability for the fair value of our conditional asset retirement obligations, which are primarily related to asbestos removal, when probable and if the liability’s fair value can be reasonably estimated. |
Capitalized Software Costs | Capitalized Software Costs We capitalize costs associated with the acquisition or development of major software for internal use in other assets in our Consolidated Balance Sheets and amortize the asset over the expected useful life of the software, generally between three and seven years. We only capitalize subsequent additions, modifications or upgrades to internal-use software to the extent that such changes allow the software to perform a task it previously did not perform. We expense software maintenance and training costs as incurred. Cloud computing arrangements are evaluated to determine whether the arrangement includes a software license or is a service contract. If determined to be a software license, then the arrangement is capitalized as an other asset and amortized over the expected life of software, generally between three to seven years. If determined to be a service contract, then the cost of the arrangement is expensed as the services are provided. |
Impairment of Long-Lived and Indefinite-Lived Assets | Impairment of Long-Lived and Indefinite-Lived Assets |
Indefinite-Lived Intangible Assets | We assess the recoverability of indefinite-lived intangible assets at least annually during the fourth quarter of our fiscal year or whenever events or changes in circumstances indicate that the carrying amount of the indefinite-lived intangible asset may not be fully recoverable. Examples of a change in events or circumstances include, but are not limited to, a decrease in the market price of the asset, a history of cash flow losses related to the use of the asset or a significant adverse change in the extent or manner in which an asset is being used. We test our indefinite-lived intangible assets utilizing the relief from royalty method to determine the estimated fair value for each indefinite-lived intangible asset. The relief from royalty method estimates our theoretical royalty savings from ownership of the intangible asset. Key assumptions used in this model include discount rates, royalty rates, growth rates, sales projections and terminal value rates. |
Leases | Leases Accounting Policy Applied in Fiscal 2019 At the lease commencement date, based on certain criteria, we determine if a lease is classified as an operating lease or finance lease and then recognize a right-of-use asset and a lease liability on the Consolidated Balance Sheets for all leases (with the exception of leases that have a term of twelve months or less). The lease liability is measured as the present value of unpaid lease payments measured based on the reasonably certain lease term and corresponding discount rate. The initial right-of-use asset is measured as the lease liability plus certain other costs and is reduced by any tenant allowances collected from the lessor. Lease payments include fixed and in-substance fixed payments, variable payments based on an index or rate and termination penalties. Lease payments do not include variable lease components other than those that depend on an index or rate or any payments not considered part of the lease (i.e. payment of the lessor’s real estate taxes and insurance). Payments not considered lease payments are expensed as incurred. Some leases require additional payments based on sales and the related contingent rent is recorded as rent expense when the payment is probable. As a policy election, we consider lease payments and all related other payments as one component of a lease. The reasonably certain lease term includes the non-cancelable lease term and any renewal option periods where we have economically compelling reasons for future exercise. The discount rate used in our present value calculations is the rate implicit in the lease, when known, or our estimated incremental borrowing rate. Our incremental borrowing rate is estimated based on our secured borrowings and our credit risk relative to the time horizons of other publicly available data points that are consistent with the respective lease term. Whether an operating lease or a finance lease, the lease liability is amortized over the lease term at a constant periodic interest rate. The right-of-use assets related to operating leases are amortized over the lease term on a basis that renders a straight-line amount of rent expense which encompasses the amortization and interest component of the lease. With the occurrence of certain events, the amortization pattern for an operating asset is adjusted to a straight-line basis over the remaining lease term. The right-of-use asset related to a finance lease is amortized on a straight-line basis over the lease term. Rent on short-term leases is expensed on a straight-line basis over the lease term. When a lease is modified or there is a change in lease term, we assess for any change in lease classification and remeasure the lease liability with a corresponding increase or decrease to the right-of-use asset. Sale-leasebacks are transactions through which we sell assets and subsequently lease them back. The resulting leases that qualify for sale-leaseback accounting are evaluated and accounted for as an operating lease. A transaction that does not qualify for sale-leaseback accounting as a result of finance lease classification or the failure to meet certain revenue recognition criteria is accounted for as a financing transaction. For a financing transaction, we retain the "sold" assets within property and equipment and record a financing obligation equal to the amount of cash proceeds received. Rental payments under such transactions are recognized as a reduction of the financing obligation and as interest expense using an effective interest method. Accounting Policy Applied in Fiscal 2018 Our lease accounting policies for lease contracts in fiscal 2018 and prior are disclosed in the 2018 Annual Report on Form 10-K. We conduct a major part of our operations from leased premises (building or land) that include retail stores, store distribution centers, warehouses, offices and other facilities. Almost all leases include renewal options where we can extend the lease term from one to 50 years or more. We also lease equipment under finance leases for terms of primarily three to five years , and we rent or sublease certain real estate to third parties. Our lease contracts do not contain any purchase options or residual value guarantees. |
Exit or Disposal Activity Costs | Exit or Disposal Activity Costs |
Retirement-Related Benefits | Retirement-Related Benefits We recognize the funded status – the difference between the fair value of plan assets and the plan’s benefit obligation – of our defined benefit pension and postretirement plans directly on the Consolidated Balance Sheet. Each overfunded plan is recognized as an asset and each underfunded plan is recognized as a liability. We adjust other comprehensive income/(loss) to reflect prior service cost or credits and actuarial gain or loss amounts arising during the period and reclassification adjustments for amounts being recognized as components of net periodic pension/postretirement cost, net of tax. Prior service cost or credits are amortized to net income/(loss) over the average remaining service period, a period of about eight years for the primary plan. Pension related actuarial gains or losses in excess of 10% of the greater of the fair value of plan assets or the plan's projected benefit obligation (the corridor) are recognized annually in the fourth quarter each year (Mark-to-market (MTM) adjustment), and, if applicable, in any interim period in which an interim remeasurement is triggered. We measure the plan assets and obligations annually at the adopted measurement date of January 31 to determine pension expense for the subsequent year. The factors and assumptions affecting the measurement are the characteristics of the population and salary increases, with the most important being the expected return on plan assets and the discount rate for the pension obligation. We use actuarial calculations for the assumptions, which require significant judgment. |
Stock-Based Compensation | Stock-Based Compensation Stock options are valued primarily using the Black-Scholes option pricing model and are granted with an exercise price equal to the closing price of our common stock on the grant date. Time-based and performance-based restricted stock awards are valued using the closing price of our common stock on the grant date. Our current plan does not permit awarding stock options below grant-date market value nor does it allow any repricing subsequent to the date of grant. Stock options are valued using the following assumptions: • Valuation Method. We estimate the fair value of stock option awards on the date of grant using primarily the Black-Scholes option pricing model. • Expected Term. Our expected option term represents the average period that we expect stock options to be outstanding and is determined based on our historical experience, giving consideration to contractual terms, vesting schedules, anticipated stock prices and expected future behavior of option holders. • Expected Volatility. Our expected volatility is based on a blend of the historical volatility of JCPenney stock combined with an estimate of the implied volatility derived from exchange traded options. • Risk-Free Interest Rate. Our risk-free interest rate is based on zero-coupon U.S. Treasury yields in effect at the date of grant with the same period as the expected option life. • Expected Dividend Yield. The dividend assumption is based on our current expectations about our dividend policy. Employee stock options and time-based and performance-based restricted stock awards typically vest over periods ranging from one to thr ee years an d employee stock options have a maximum term of 10 years. Estimates of forfeitures are incorporated at the grant date and are adjusted if actual results are different from initial estimates. For awards that have performance conditions, the probability of achieving the performance condition is evaluated each reporting period, and if the performance condition is expected to be achieved, the related compensation expense is recorded over the remaining service period. In addition, certain performance-based restricted stock awards may be granted where the number of shares may be increased to the maximum or reduced to the minimum threshold based on the results of the performance metrics in accordance with the terms established at the time of the award. In the event that performance conditions are not achieved and the awards do not vest, compensation expense is reversed. |
Leases Leases (Policies)
Leases Leases (Policies) | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | Leases Accounting Policy Applied in Fiscal 2019 At the lease commencement date, based on certain criteria, we determine if a lease is classified as an operating lease or finance lease and then recognize a right-of-use asset and a lease liability on the Consolidated Balance Sheets for all leases (with the exception of leases that have a term of twelve months or less). The lease liability is measured as the present value of unpaid lease payments measured based on the reasonably certain lease term and corresponding discount rate. The initial right-of-use asset is measured as the lease liability plus certain other costs and is reduced by any tenant allowances collected from the lessor. Lease payments include fixed and in-substance fixed payments, variable payments based on an index or rate and termination penalties. Lease payments do not include variable lease components other than those that depend on an index or rate or any payments not considered part of the lease (i.e. payment of the lessor’s real estate taxes and insurance). Payments not considered lease payments are expensed as incurred. Some leases require additional payments based on sales and the related contingent rent is recorded as rent expense when the payment is probable. As a policy election, we consider lease payments and all related other payments as one component of a lease. The reasonably certain lease term includes the non-cancelable lease term and any renewal option periods where we have economically compelling reasons for future exercise. The discount rate used in our present value calculations is the rate implicit in the lease, when known, or our estimated incremental borrowing rate. Our incremental borrowing rate is estimated based on our secured borrowings and our credit risk relative to the time horizons of other publicly available data points that are consistent with the respective lease term. Whether an operating lease or a finance lease, the lease liability is amortized over the lease term at a constant periodic interest rate. The right-of-use assets related to operating leases are amortized over the lease term on a basis that renders a straight-line amount of rent expense which encompasses the amortization and interest component of the lease. With the occurrence of certain events, the amortization pattern for an operating asset is adjusted to a straight-line basis over the remaining lease term. The right-of-use asset related to a finance lease is amortized on a straight-line basis over the lease term. Rent on short-term leases is expensed on a straight-line basis over the lease term. When a lease is modified or there is a change in lease term, we assess for any change in lease classification and remeasure the lease liability with a corresponding increase or decrease to the right-of-use asset. Sale-leasebacks are transactions through which we sell assets and subsequently lease them back. The resulting leases that qualify for sale-leaseback accounting are evaluated and accounted for as an operating lease. A transaction that does not qualify for sale-leaseback accounting as a result of finance lease classification or the failure to meet certain revenue recognition criteria is accounted for as a financing transaction. For a financing transaction, we retain the "sold" assets within property and equipment and record a financing obligation equal to the amount of cash proceeds received. Rental payments under such transactions are recognized as a reduction of the financing obligation and as interest expense using an effective interest method. Accounting Policy Applied in Fiscal 2018 Our lease accounting policies for lease contracts in fiscal 2018 and prior are disclosed in the 2018 Annual Report on Form 10-K. We conduct a major part of our operations from leased premises (building or land) that include retail stores, store distribution centers, warehouses, offices and other facilities. Almost all leases include renewal options where we can extend the lease term from one to 50 years or more. We also lease equipment under finance leases for terms of primarily three to five years , and we rent or sublease certain real estate to third parties. Our lease contracts do not contain any purchase options or residual value guarantees. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | Based on how we categorized our merchandise divisions in 2019 , the components of Net sales for 2019 and 2018 were as follows: ($ in millions) 2019 2018 Men’s apparel and accessories $ 2,320 22 % $ 2,432 20 % Women’s apparel 2,195 21 % 2,293 20 % Women’s accessories, including Sephora 1,516 14 % 1,637 14 % Home 1,191 11 % 1,606 14 % Footwear and handbags 1,191 11 % 1,255 11 % Kids’, including toys 991 9 % 1,070 9 % Jewelry 641 6 % 652 6 % Services and other 671 6 % 719 6 % Total net sales $ 10,716 100 % $ 11,664 100 % |
Contract with Customer, Liability | The liabilities are included in Other accounts payable and accrued expenses in the Consolidated Balance Sheets and were as follows: (in millions) 2019 2018 Gift cards $ 136 $ 140 Loyalty rewards 58 60 Total contract liability $ 194 $ 200 |
Change in Contract with Customer, Liability Rollforward | A rollforward of the amounts included in contract liability for 2019 and 2018 are as follows: (in millions) 2019 2018 Beginning balance $ 200 $ 217 Current period gift cards sold and loyalty reward points earned 401 422 Net sales from amounts included in contract liability opening balances (72 ) (80 ) Net sales from current period usage (335 ) (359 ) Ending balance $ 194 $ 200 |
Schedule of Property and Equipment, Net | Estimated Useful Lives ($ in millions) (Years) 2019 2018 Land N/A $ 213 $ 236 Buildings 50 4,292 4,608 Furniture and equipment 3-20 879 1,343 Leasehold improvements (1) 1,094 1,070 Finance leases (equipment) 3-5 105 106 Accumulated depreciation (3,095 ) (3,425 ) Property and equipment, net $ 3,488 $ 3,938 (1) Leasehold improvements are depreciated over the shorter of the estimated useful lives of the improvements or the term of the lease, including renewals determined to be reasonably certain. |
Earnings_(Loss) per Share (Tabl
Earnings/(Loss) per Share (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Earnings Per Share [Abstract] | |
Earnings/(Loss) per Share | Net income/(loss) and shares used to compute basic and diluted EPS are reconciled below: (in millions, except per share data) 2019 2018 2017 Earnings/(loss) Net income/(loss) $ (268 ) $ (255 ) $ (118 ) Shares Weighted average common shares outstanding (basic shares) 320.2 315.7 311.1 Adjustment for assumed dilution: Stock options and restricted stock awards — — — Weighted average shares assuming dilution (diluted shares) 320.2 315.7 311.1 EPS Basic $ (0.84 ) $ (0.81 ) $ (0.38 ) Diluted $ (0.84 ) $ (0.81 ) $ (0.38 ) |
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: (Shares in millions) 2019 2018 2017 Stock options, restricted stock awards 23.2 24.8 31.5 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | Based on how we categorized our merchandise divisions in 2019 , the components of Net sales for 2019 and 2018 were as follows: ($ in millions) 2019 2018 Men’s apparel and accessories $ 2,320 22 % $ 2,432 20 % Women’s apparel 2,195 21 % 2,293 20 % Women’s accessories, including Sephora 1,516 14 % 1,637 14 % Home 1,191 11 % 1,606 14 % Footwear and handbags 1,191 11 % 1,255 11 % Kids’, including toys 991 9 % 1,070 9 % Jewelry 641 6 % 652 6 % Services and other 671 6 % 719 6 % Total net sales $ 10,716 100 % $ 11,664 100 % |
Revenue Contract with Customer
Revenue Contract with Customer Liability (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Liability | The liabilities are included in Other accounts payable and accrued expenses in the Consolidated Balance Sheets and were as follows: (in millions) 2019 2018 Gift cards $ 136 $ 140 Loyalty rewards 58 60 Total contract liability $ 194 $ 200 |
Change in Contract with Customer, Liability Rollforward [Table Text Block] | A rollforward of the amounts included in contract liability for 2019 and 2018 are as follows: (in millions) 2019 2018 Beginning balance $ 200 $ 217 Current period gift cards sold and loyalty reward points earned 401 422 Net sales from amounts included in contract liability opening balances (72 ) (80 ) Net sales from current period usage (335 ) (359 ) Ending balance $ 194 $ 200 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of Other Assets | ($ in millions) 2019 2018 Capitalized software, net $ 337 $ 334 Indefinite-lived intangible assets, net (1) 275 275 Revolving credit facility unamortized costs, net 15 22 Interest rate swaps (Notes 9, 10 and 11) — 10 Other 30 36 Total $ 657 $ 677 (1) Amounts are net of an accumulated impairment loss of $9 million. |
Other Accounts Payable and Ac_2
Other Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Schedule of Other Accounts Payable and Accrued Liabilities | ($ in millions) 2019 2018 Accrued salaries, vacation and bonus $ 191 $ 154 Customer gift cards 136 140 Taxes other than income taxes 86 85 Loyalty rewards 58 60 Interest 67 71 Advertising 68 78 Current portion of workers’ compensation and general liability self-insurance 39 45 Restructuring and management transition (Note 18) 8 9 Current portion of retirement plan liabilities (Note 17) 27 30 Capital expenditures 16 43 Occupancy and rent-related 24 28 Other 211 252 Total $ 931 $ 995 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Other Liabilities, Noncurrent [Abstract] | |
Schedule of Other Liabilities | ($ in millions) 2019 2018 Supplemental pension and other postretirement benefit plan liabilities (Note 17) $ 109 $ 116 Long-term portion of workers’ compensation and general liability insurance 103 107 Deferred developer/tenant allowances 93 144 Deferred rent liability (Note 3) — 103 Interest rate swaps (Notes 7, 10 and 11) 58 15 Restructuring and management transition (Note 18) — 9 Other 67 64 Total $ 430 $ 558 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | Information regarding the pre-tax changes in the fair value of our interest rate swaps is as follows: ($ in millions) 2019 2018 Line Item in the Financial Statements Gain/(loss) recognized in other comprehensive income/(loss) $ (48 ) $ (13 ) Accumulated other comprehensive income Gain/(loss) recognized in net income/(loss) 5 2 Interest expense |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Information regarding the gross amounts of our derivative instruments in the Consolidated Balance Sheets is as follows: Asset Derivatives at Fair Value Liability Derivatives at Fair Value ($ in millions) Balance Sheet Location 2019 2018 Balance Sheet Location 2019 2018 Derivatives designated as hedging instruments: Interest rate swaps Other assets — 10 Other liabilities 58 15 Total derivatives designated as hedging instruments $ — $ 10 $ 58 $ 15 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Fair Value Disclosures [Abstract] | |
Other Financial Instruments | Carrying values and fair values of financial instruments that are not carried at fair value in the Consolidated Balance Sheets are as follows: As of February 1, 2020 As of February 2, 2019 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Total debt, excluding unamortized debt issuance costs, finance leases, financing obligation and notes payable $ 3,758 $ 2,464 $ 3,856 $ 2,579 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | ($ in millions) 2019 2018 Issue: 8.125% Senior Notes Due 2019 $ — $ 50 5.65% Senior Notes Due 2020 (1) 105 110 2016 Term Loan Facility (Matures in 2023) 1,540 1,583 5.875% Senior Secured Notes Due 2023 (1) 500 500 7.125% Debentures Due 2023 10 10 8.625% Senior Secured Second Priority Notes Due 2025 (1) 400 400 6.9% Notes Due 2026 2 2 6.375% Senior Notes Due 2036 (1) 388 388 7.4% Debentures Due 2037 313 313 7.625% Notes Due 2097 500 500 Total debt 3,758 3,856 Unamortized debt issuance costs (37 ) (48 ) Less: current maturities (147 ) (92 ) Total long-term debt $ 3,574 $ 3,716 Weighted-average interest rate at year end 6.3 % 6.3 % Weighted-average maturity (in years) 16 years (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% . These provisions trigger if there were a beneficial ownership change of 50% or more of our common stock. |
Schedule of Maturities of Long-term Debt | ($ in millions) 2020 $ 147 2021 42 2022 42 2023 1,924 2024 — Thereafter 1,603 Total $ 3,758 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income/(Loss) | ($ in millions) Net Actuarial Gain/(Loss) Prior Service Credit/(Cost) Foreign Currency Translation Gain/(Loss) on Cash Flow Hedges Accumulated Other Comprehensive Income/(Loss) February 3, 2018 $ (330 ) $ (26 ) $ — $ (4 ) $ (360 ) Current period change 40 4 (1 ) (11 ) 32 February 2, 2019 $ (290 ) $ (22 ) $ (1 ) $ (15 ) $ (328 ) ASU 2018-02 (Stranded Taxes) adoption (See Note 3) 46 3 — 4 53 Current period change (66 ) 7 — (53 ) (112 ) February 1, 2020 $ (310 ) $ (12 ) $ (1 ) $ (64 ) $ (387 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The components of total stock-based compensation costs are as follows: ($ in millions) 2019 2018 2017 Stock awards $ 10 $ 7 $ 18 Stock options 1 3 7 Total stock-based compensation $ 11 $ 10 $ 25 (1) Total income tax benefit recognized for stock-based compensation arrangements $ — $ — $ — (1) Excludes $2 million of stock-based compensation costs reported in restructuring and management transition charges (Note 18 ). |
Schedule of Share-based Compensation, Stock Options, Activity | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Our weighted-average fair value of stock options at grant date was $0.86 in 2019 , $0.86 in 2018 and $2.91 in 2017 . We used the Black-Scholes option pricing model in 2019 and 2018 and primarily used the binomial lattice valuation model in 2017 to determine the fair value of the stock options granted. |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes our non-vested stock awards activity during the year ended February 1, 2020 : Time-Based Stock Awards Performance-Based Stock Awards (shares in thousands) Number of Units Weighted-Average Grant Date Fair Value Number of Units Weighted-Average Grant Date Fair Value Non-vested at February 2, 2019 11,070 $ 3 1,407 $ 5 Granted 10,601 1 — — Vested (5,073 ) 2 — — Forfeited/canceled (1,672 ) 3 (1,237 ) 5 Non-vested at February 1, 2020 14,926 2 170 4 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Leases | Leases We conduct a major part of our operations from leased premises (building or land) that include retail stores, store distribution centers, warehouses, offices and other facilities. Almost all leases include renewal options where we can extend the lease term from one to 50 years or more. We also lease equipment under finance leases for terms of primarily three to five years , and we rent or sublease certain real estate to third parties. Our lease contracts do not contain any purchase options or residual value guarantees. Leases ($ in millions) Classification 2019 Assets Operating lease assets Operating lease assets $ 998 Total lease assets $ 998 Liabilities Current Operating Current operating lease liabilities $ 67 Finance Current portion of finance leases and note payable 1 Noncurrent Operating Noncurrent operating lease liabilities 1,108 Finance Long-term finance leases and note payable — Total lease liabilities $ 1,176 Lease Cost ($ in millions) Classification 2019 Operating lease cost Selling, general and administrative expense (SG&A) $ 196 Variable lease cost Selling, general and administrative expense (SG&A) 133 Finance lease cost Amortization of lease assets Depreciation and amortization — Interest on lease liabilities Net interest expense — Rental income Real estate and other, net 10 Net lease cost $ 319 As of February 1, 2020 , future lease payments were as follows: ($ in millions) Operating Leases Finance Leases Total 2020 $ 189 $ — $ 189 2021 197 — 197 2022 184 — 184 2023 180 — 180 2024 167 — 167 Thereafter 1,750 — 1,750 Total lease payments 2,667 — 2,667 Less: amounts representing interest (1,492 ) — (1,492 ) Present value of lease liabilities $ 1,175 $ — $ 1,175 Lease term and discount rate are as follows: 2019 Weighted-average remaining lease term (years) Operating leases 15 Weighted-average discount rate Operating leases 11 % Other information: ($ in millions) 2019 Cash paid for amounts included in the measurement of these liabilities Operating cash flows from operating leases 210 Operating cash flows from finance leases 1 Financing cash flows from finance leases 1 As determined prior to the adoption of the new lease standard, the future minimum lease payments under operating leases in effect as of February 2, 2019 were as follows: ($ in millions) 2019 $ 190 2020 178 2021 163 2022 148 2023 135 Thereafter 1,626 Less: sublease income (43 ) Total minimum lease payments $ 2,397 |
Lease Assets and Liabilities [Table Text Block] | Leases ($ in millions) Classification 2019 Assets Operating lease assets Operating lease assets $ 998 Total lease assets $ 998 Liabilities Current Operating Current operating lease liabilities $ 67 Finance Current portion of finance leases and note payable 1 Noncurrent Operating Noncurrent operating lease liabilities 1,108 Finance Long-term finance leases and note payable — Total lease liabilities $ 1,176 |
Schedule of Future Minimum Rental Payments for Operating Leases | As determined prior to the adoption of the new lease standard, the future minimum lease payments under operating leases in effect as of February 2, 2019 were as follows: ($ in millions) 2019 $ 190 2020 178 2021 163 2022 148 2023 135 Thereafter 1,626 Less: sublease income (43 ) Total minimum lease payments $ 2,397 |
Lease, Cost [Table Text Block] | Lease Cost ($ in millions) Classification 2019 Operating lease cost Selling, general and administrative expense (SG&A) $ 196 Variable lease cost Selling, general and administrative expense (SG&A) 133 Finance lease cost Amortization of lease assets Depreciation and amortization — Interest on lease liabilities Net interest expense — Rental income Real estate and other, net 10 Net lease cost $ 319 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | As of February 1, 2020 , future lease payments were as follows: ($ in millions) Operating Leases Finance Leases Total 2020 $ 189 $ — $ 189 2021 197 — 197 2022 184 — 184 2023 180 — 180 2024 167 — 167 Thereafter 1,750 — 1,750 Total lease payments 2,667 — 2,667 Less: amounts representing interest (1,492 ) — (1,492 ) Present value of lease liabilities $ 1,175 $ — $ 1,175 |
Lessee weighted average Lease Term and Discount Rate [Table Text Block] | Lease term and discount rate are as follows: 2019 Weighted-average remaining lease term (years) Operating leases 15 Weighted-average discount rate Operating leases 11 % |
Other Information [Table Text Block] | Other information: ($ in millions) 2019 Cash paid for amounts included in the measurement of these liabilities Operating cash flows from operating leases 210 Operating cash flows from finance leases 1 Financing cash flows from finance leases 1 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Types of Retirement and Other Benefits | Retirement and other benefits include: Defined Benefit Pension Plans Primary Pension Plan – funded Supplemental retirement plans – unfunded Other Benefit Plans Postretirement benefits – dental Defined contribution plans: 401(k) Safe harbor plan and the 401(k) savings, profit-sharing and stock ownership plan Deferred compensation plan |
Schedule of Costs of Retirement Plans | ($ in millions) 2019 2018 2017 Service cost $ 28 $ 38 $ 42 Other components of net periodic pension and postretirement benefit cost/(income): Interest cost 131 141 150 Expected return on plan assets (191 ) (223 ) (216 ) Amortization of actuarial loss/(gain) 10 (3 ) 25 Amortization of prior service cost/(credit) 7 7 7 Settlement expense 8 7 13 Curtailment (gain)/loss recognized — — 7 Special termination benefit recognized — — 112 (35 ) (71 ) 98 Net periodic benefit expense/(income) $ (7 ) $ (33 ) $ 140 |
Schedule of Changes in Projected Benefit Obligations | Primary Pension Plan Supplemental Plans ($ in millions) 2019 2018 2019 2018 Change in PBO Beginning balance $ 3,016 $ 3,467 $ 146 $ 182 Service cost 28 37 — 1 Interest cost 125 133 6 8 Settlements (153 ) (174 ) — — Actuarial loss/(gain) 478 (289 ) 14 (12 ) Benefits (paid) (147 ) (158 ) (30 ) (33 ) Balance at measurement date $ 3,347 $ 3,016 $ 136 $ 146 Change in fair value of plan assets Beginning balance $ 3,163 $ 3,528 $ — $ — Company contributions — — 30 33 Actual return on assets (1) 604 (33 ) — — Settlements (153 ) (174 ) — — Benefits (paid) (147 ) (158 ) (30 ) (33 ) Balance at measurement date $ 3,467 $ 3,163 $ — $ — Funded status of the plan $ 120 (2) $ 147 (2) $ (136 ) (3) $ (146 ) (3) (1) Includes plan administrative expenses. (2) $120 million in 2019 and $147 million in 2018 were included in Prepaid pension in the Consolidated Balance Sheets. (3) $27 million in 2019 and $30 million in 2018 were included in Other accounts payable and accrued expenses on the Consolidated Balance Sheets, and the remaining amounts were included in Other liabilities. |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | Primary Pension Plan Supplemental Plans ($ in millions) 2019 2018 2019 2018 Net actuarial loss/(gain) $ 184 $ 129 $ 12 $ 9 Prior service cost/(credit) 23 30 (2 ) (3 ) Total $ 207 (1) $ 159 $ 10 $ 6 (1) In 2020 , approximately $6 million for the Primary Pension Plan is expected to be amortized from Accumulated other comprehensive income/(loss) and into the Consolidated Statement of Operations. |
Schedule of Allocation of Plan Assets | Investments at Fair Value at February 1, 2020 ($ in millions) Level 1 (1) Level 2 (1) Level 3 Total Assets Cash $ 30 $ — $ — $ 30 Common collective trusts — 65 — 65 Cash and cash equivalents total 30 65 — 95 Common collective trusts – international — 42 — 42 Equity securities – domestic 356 — — 356 Equity securities – international 154 — — 154 Equity securities total 510 42 — 552 Common collective trusts — 325 — 325 Corporate bonds — 1,833 4 1,837 Swaps — 630 — 630 Government securities — 441 — 441 Mortgage backed securities — 15 — 15 Other fixed income — 140 6 146 Fixed income total — 3,384 10 3,394 Public REITs 48 — — 48 Real estate total 48 — — 48 Total investment assets at fair value $ 588 $ 3,491 $ 10 $ 4,089 Liabilities Swaps $ — $ (625 ) $ — $ (625 ) Other fixed income (10 ) (10 ) — (20 ) Fixed income total (10 ) (635 ) — (645 ) Total liabilities at fair value $ (10 ) $ (635 ) $ — $ (645 ) Accounts payable, net (223 ) Investments at Net Asset Value (NAV) (2) Private equity $ 123 Private real estate 51 Hedge funds 72 Total investments at NAV $ 246 Total net assets $ 3,467 (1) There were no significant transfers in or out of level 1 or 2 investments. (2) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheet. Investments at Fair Value at February 2, 2019 ($ in millions) Level 1 (1) Level 2 (1) Level 3 Total Assets Cash $ 9 $ — $ — $ 9 Common collective trusts — 60 — 60 Cash and cash equivalents total 9 60 — 69 Common collective trusts – international — 55 — 55 Equity securities – domestic 326 — — 326 Equity securities – international 146 — — 146 Equity securities total 472 55 — 527 Common collective trusts — 897 — 897 Corporate bonds — 985 4 989 Swaps — 647 — 647 Government securities — 200 — 200 Mortgage backed securities — 5 — 5 Other fixed income — 107 6 113 Fixed income total — 2,841 10 2,851 Public REITs 41 — — 41 Real estate total 41 — — 41 Total investment assets at fair value $ 522 $ 2,956 $ 10 $ 3,488 Liabilities Swaps $ — $ (642 ) $ — $ (642 ) Other fixed income (7 ) (2 ) — (9 ) Fixed income total (7 ) (644 ) — (651 ) Total liabilities at fair value $ (7 ) $ (644 ) $ — $ (651 ) Accounts payable, net (26 ) Investments at Net Asset Value (NAV) (2) Private equity $ 164 Private real estate 55 Hedge funds 133 Total investments at NAV $ 352 Total net assets $ 3,163 (1) There were no significant transfers in or out of level 1 or 2 investments. (2) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheet. |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | 2019 ($ in millions) Corporate Loans Corporate Bonds Balance, beginning of year $ 6 $ 4 Purchases and issuances — — Sales, maturities and settlements — — Balance, end of year $ 6 $ 4 2018 ($ in millions) Corporate Loans Corporate Bonds Balance, beginning of year $ 4 $ 10 Purchases and issuances 3 — Sales, maturities and settlements (1 ) (6 ) Balance, end of year $ 6 $ 4 |
Schedule of Expected Benefit Payments | ($ in millions) Primary Plan Benefits Supplemental Plan Benefits 2020 $ 237 $ 27 2021 236 22 2022 235 9 2023 229 8 2024 227 8 2025-2029 1,067 38 |
Schedule of Target Allocation Ranges for Defined Benefit Plan Assets | 2019 Target Plan Assets Asset Class Allocation Ranges 2019 2018 Equity 10% - 25% 17 % 18 % Fixed income 60% - 75% 74 % 68 % Real estate, cash and other investments 0% - 25% 9 % 14 % Total 100 % 100 % |
Weighted Average Actuarial Assumptions Used To Determine Liability [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Assumptions Used | 2019 2018 2017 Discount rate 3.08 % 4.33 % 3.98 % Salary progression rate 2.7 % 2.8 % 3.8 % |
Weighted Average Actuarial Assumptions Used To Determine Expense [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Assumptions Used | 2019 2018 2017 Expected return on plan assets 6.25 % 6.50 % 6.50 % Discount rate 4.33 % 3.98 % 4.40 % (1) Salary increase 2.8 % 3.8 % 3.9 % (1) As of January 31, 2017. The Primary Pension Plan was remeasured as of March 31, 2017 using a discount rate of 4.34% and as of October 31, 2017 using a discount rate of 3.94%. |
Restructuring and Management _2
Restructuring and Management Transition (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule Of Current And Cumulative Restructuring And Management Transition Charges | The composition of restructuring and management transition charges was as follows: Cumulative Amount From Program Inception Through ($ in millions) 2019 2018 2017 2019 Home office and stores $ 43 $ 13 $ 176 $ 529 Management transition 5 9 — 269 Other — — 8 186 Total $ 48 $ 22 $ 184 $ 984 |
Restructuring and Management Transition Charges | Activity for the restructuring and management transition liability for 2019 and 2018 was as follows: ($ in millions) Home Office and Stores Management Transition Other Total February 3, 2018 $ 34 $ — $ 7 $ 41 Charges 16 9 — 25 Cash payments (34 ) (9 ) (5 ) (48 ) February 2, 2019 16 — 2 18 Impact of ASC 842 adoption (Note 3) (13 ) — (1 ) (14 ) Charges 19 5 1 25 Cash payments (16 ) (3 ) (2 ) (21 ) February 1, 2020 $ 6 $ 2 $ — $ 8 |
Real Estate and Other, Net (Tab
Real Estate and Other, Net (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
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: ($ in millions) 2019 2018 2017 Net gain from sale of non-operating assets $ (1 ) $ — $ — Investment income from Home Office Land Joint Venture — (4 ) (31 ) Net gain from sale of operating assets (8 ) (67 ) (119 ) Impairments — 52 — Other (6 ) — 4 Total expense/(income) $ (15 ) $ (19 ) $ (146 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of our income tax expense/(benefit) were as follows: ($ in millions) 2019 2018 2017 Current Federal and foreign $ 4 $ (5 ) $ (60 ) State and local 6 1 1 Total current 10 (4 ) (59 ) Deferred Federal and foreign (6 ) (17 ) (63 ) State and local (1 ) 5 (4 ) Total deferred (7 ) (12 ) (67 ) Total income tax expense/(benefit) $ 3 $ (16 ) $ (126 ) |
Schedule of Effective Income Tax Rate Reconciliation | The following table summarizes a reconciliation of income tax expense/(benefit) compared with the amounts at the U.S. federal statutory income tax rate: ($ in millions) 2019 2018 2017 Federal income tax at statutory rate $ (56 ) $ (57 ) $ (82 ) State and local income tax, less federal income tax benefit (12 ) (17 ) (12 ) Increase/(decrease) in valuation allowance 61 47 33 Effect of U.S. tax reform — — (75 ) Other, including permanent differences and credits 10 11 10 Total income tax expense/(benefit) $ 3 $ (16 ) $ (126 ) |
Schedule of Deferred Tax Assets and Liabilities | Our deferred tax assets and liabilities were as follows: ($ in millions) 2019 2018 Assets Merchandise inventory $ 7 $ 4 Accrued vacation pay 8 8 Gift cards 36 35 Stock-based compensation 18 19 State taxes 1 3 Workers’ compensation/general liability 38 41 Accrued rent — 27 Litigation exposure 1 2 Interest expense limitation 83 48 Mirror savings plan 7 7 Pension and other retiree obligations 4 1 Operating lease liabilities 299 — Net operating loss and tax credit carryforwards 710 707 Other 56 52 Total deferred tax assets 1,268 954 Valuation allowance (869 ) (802 ) Total net deferred tax assets 399 152 Liabilities Depreciation and amortization (193 ) (223 ) Tax benefit transfers (26 ) (29 ) Long-lived intangible assets (36 ) (31 ) Operating lease assets (260 ) — Total deferred tax liabilities (515 ) (283 ) Total net deferred tax liabilities $ (116 ) $ (131 ) |
Summary of Income Tax Contingencies | A reconciliation of unrecognized tax benefits is as follows: ($ in millions) 2019 2018 2017 Beginning balance $ 35 $ 35 $ 79 Additions for tax positions of prior years 2 3 4 Reductions for tax positions of prior years — (1 ) (45 ) Settlements and effective settlements with tax authorities (1 ) (2 ) (3 ) Balance at end of year $ 36 $ 35 $ 35 Unrecognized tax benefits included in our Consolidated Balance Sheets were as follows: ($ in millions) 2019 2018 Deferred taxes (noncurrent liability) $ 35 $ 32 Accounts payable and accrued expenses (Note 8) — 2 Other liabilities (Note 9) 1 1 Total $ 36 $ 35 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | ($ in millions) 2019 2018 2017 Supplemental cash flow information Income taxes received/(paid), net $ (9 ) $ (8 ) $ (9 ) Interest received/(paid), net (279 ) (293 ) (302 ) Supplemental non-cash investing and financing activity Increase/(decrease) in other accounts payable related to purchases of property and equipment and software (27 ) (15 ) 25 Purchase of property and equipment and software through a financing obligation (1 ) — — Remeasurement of leased assets and lease obligations 94 — — |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Results of Operations (Unaudited) | The following is a summary of our quarterly unaudited consolidated results of operations for 2019 and 2018 : 2019 ($ in millions, except EPS) First Quarter Second Quarter Third Quarter Fourth Quarter Total net sales $ 2,439 $ 2,509 $ 2,384 $ 3,384 Credit income and other 116 110 116 109 Total revenues 2,555 2,619 2,500 3,493 Cost of goods sold (exclusive of depreciation and amortization) 1,630 1,585 1,541 2,257 SG&A expenses 856 870 854 1,005 Restructuring and management transition (1) 20 7 9 12 Net income/(loss) (154 ) (48 ) (93 ) 27 Diluted earnings/(loss) per share (2) $ (0.48 ) $ (0.15 ) $ (0.29 ) $ 0.08 2018 ($ in millions, except EPS) First Quarter Second Quarter Third Quarter Fourth Quarter Total net sales $ 2,584 $ 2,762 $ 2,653 $ 3,665 Credit income and other 87 67 80 121 Total revenues 2,671 2,829 2,733 3,786 Cost of goods sold (exclusive of depreciation and amortization) 1,712 1,831 1,808 2,519 SG&A expenses 826 880 883 1,007 Restructuring and management transition (3) 7 2 11 2 Net income/(loss) (78 ) (101 ) (151 ) 75 Diluted earnings/(loss) per share (2) $ (0.25 ) $ (0.32 ) $ (0.48 ) $ 0.24 (1) Restructuring and management transition charges (Note 18) by quarter for 2019 consisted of the following: ($ in million) First Quarter Second Quarter Third Quarter Fourth Quarter Home office and stores $ 19 $ 4 $ 8 $ 12 Management transition 1 3 1 — Total $ 20 $ 7 $ 9 $ 12 (2) EPS is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in average quarterly shares outstanding. (3) Restructuring and management transition charges (Note 18) by quarter for 2018 consisted of the following: ($ in millions) First Quarter Second Quarter Third Quarter Fourth Quarter Home office and stores $ 7 $ 2 $ 2 $ 2 Management transition — — 9 — Total $ 7 $ 2 $ 11 $ 2 |
Basis of Presentation and Con_3
Basis of Presentation and Consolidation (Nature of Operations) (Details) | 12 Months Ended | ||
Feb. 01, 2020statedepartment_store | Feb. 02, 2019 | Feb. 03, 2018 | |
Entity Information [Line Items] | |||
Nature of Operations | Our Company was founded by James Cash Penney in 1902 and has grown to be a major national retailer, operating 846 department stores in 49 states and Puerto Rico, as well as through our eCommerce website at jcp.com and our mobile application. We sell family apparel and footwear, accessories, fine and fashion jewelry, beauty products through Sephora inside JCPenney, and home furnishings. In addition, our department stores provide services, such as styling salon, optical, portrait photography and custom decorating, to customers. | ||
Number of stores | department_store | 846 | ||
Number of states in which entity operates | state | 49 | ||
State of incorporation | DE | ||
Fiscal Period Duration | 364 days | 364 days | 371 days |
J. C. Penney Corporation, Inc. [Member] | |||
Entity Information [Line Items] | |||
Year incorporated | 1902 |
Significant Accounting Polici_4
Significant Accounting Policies Contract with Customer Liability (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 01, 2020 | Feb. 02, 2019 | |
Contract with Customer Liability [Line Items] | ||||
Gift cards | $ 136 | $ 140 | ||
Loyalty rewards | 58 | 60 | ||
Total contract liability | $ 194 | $ 217 | 194 | 200 |
Contract with Customer Liability [Roll Forward] | ||||
Beginning balance | 200 | 217 | ||
Current period gift cards sold and loyalty reward points earned | 401 | 422 | ||
Net sales from amounts included in contract liability opening balances | (72) | (80) | ||
Net sales from current period usage | (335) | (359) | ||
Ending balance | 194 | 200 | ||
Total [Member] | ||||
Contract with Customer Liability [Line Items] | ||||
Total contract liability | 200 | 200 | $ 194 | $ 200 |
Contract with Customer Liability [Roll Forward] | ||||
Beginning balance | 200 | |||
Ending balance | $ 194 | $ 200 |
Significant Accounting Polici_5
Significant Accounting Policies (Advertising) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Accounting Policies [Abstract] | |||
Cooperative advertising vendor reimbursements | $ 20 | $ 26 | $ 27 |
Advertising costs | $ 624 | $ 698 | $ 714 |
Significant Accounting Polici_6
Significant Accounting Policies (Property and Equipment, Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | ||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | $ (3,095) | $ (3,425) | |
Property and equipment, net | 3,488 | 3,938 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 213 | 236 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 4,292 | 4,608 | |
Estimated useful lives | 50 years | ||
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 879 | 1,343 | |
Furniture and equipment | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 3 years | ||
Furniture and equipment | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 20 years | ||
Leasehold improvements (1) | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | [1] | $ 1,094 | 1,070 |
Finance leases (equipment) | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 105 | $ 106 | |
Finance leases (equipment) | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 3 years | ||
Finance leases (equipment) | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 years | ||
[1] | Leasehold improvements are depreciated over the shorter of the estimated useful lives of the improvements or the term of the lease, including renewals determined to be reasonably certain. |
Significant Accounting Polici_7
Significant Accounting Policies Significant Accounting Policies (Stock-Based Compensation) (Details) | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used | Valuation Method. We estimate the fair value of stock option awards on the date of grant using primarily the Black-Scholes option pricing model. Expected Term. Our expected option term represents the average period that we expect stock options to be outstanding and is determined based on our historical experience, giving consideration to contractual terms, vesting schedules, anticipated stock prices and expected future behavior of option holders. Expected Volatility. Our expected volatility is based on a blend of the historical volatility of JCPenney stock combined with an estimate of the implied volatility derived from exchange traded options. Risk-Free Interest Rate. Our risk-free interest rate is based on zero-coupon U.S. Treasury yields in effect at the date of grant with the same period as the expected option life. Expected Dividend Yield. The dividend assumption is based on our current expectations about our dividend policy. |
Share-based Compensation Arrangement by Share-based Payment Award, Description | Stock options are valued primarily using the Black-Scholes option pricing model and are granted with an exercise price equal to the closing price of our common stock on the grant date. Time-based and performance-based restricted stock awards are valued using the closing price of our common stock on the grant date. Our current plan does not permit awarding stock options below grant-date market value nor does it allow any repricing subsequent to the date of grant. |
Maximum [Member] | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Lessee, Lease term of twelve months or less Right-of-use asset and Lease liability not recognized | 12 months |
Adoption of New Accounting St_2
Adoption of New Accounting Standards (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Feb. 03, 2019 | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Balances removed under prior accounting | $ 208,000,000 | |||||||||||||||||||
Merchandise inventory | $ 2,166,000,000 | $ 2,437,000,000 | $ 2,166,000,000 | $ 2,437,000,000 | ||||||||||||||||
Total net sales | 3,384,000,000 | $ 2,384,000,000 | $ 2,509,000,000 | $ 2,439,000,000 | 3,665,000,000 | $ 2,653,000,000 | $ 2,762,000,000 | $ 2,584,000,000 | 10,716,000,000 | 11,664,000,000 | $ 12,554,000,000 | |||||||||
Credit income and other | 109,000,000 | 116,000,000 | 110,000,000 | 116,000,000 | 121,000,000 | 80,000,000 | 67,000,000 | 87,000,000 | 451,000,000 | 355,000,000 | 319,000,000 | |||||||||
Total revenues | 3,493,000,000 | 2,500,000,000 | 2,619,000,000 | 2,555,000,000 | 3,786,000,000 | 2,733,000,000 | 2,829,000,000 | 2,671,000,000 | 11,167,000,000 | 12,019,000,000 | 12,873,000,000 | |||||||||
Cost of goods sold (exclusive of depreciation and amortization shown separately below) | 2,257,000,000 | 1,541,000,000 | 1,585,000,000 | 1,630,000,000 | 2,519,000,000 | 1,808,000,000 | 1,831,000,000 | 1,712,000,000 | 7,013,000,000 | 7,870,000,000 | 8,208,000,000 | |||||||||
SG&A expenses | 1,005,000,000 | 854,000,000 | 870,000,000 | 856,000,000 | 1,007,000,000 | 883,000,000 | 880,000,000 | 826,000,000 | 3,585,000,000 | 3,596,000,000 | 3,845,000,000 | |||||||||
Restructuring and management transition | 12,000,000 | [1] | $ 9,000,000 | [1] | $ 7,000,000 | [1] | $ 20,000,000 | [1] | 2,000,000 | [2] | $ 11,000,000 | [2] | $ 2,000,000 | [2] | $ 7,000,000 | [2] | 48,000,000 | 22,000,000 | 184,000,000 | |
Operating income/(loss) | (8,000,000) | (6,000,000) | 212,000,000 | |||||||||||||||||
Income/(loss) before income taxes | (265,000,000) | (271,000,000) | (244,000,000) | |||||||||||||||||
Net income/(loss) | $ (268,000,000) | $ (255,000,000) | $ (118,000,000) | |||||||||||||||||
Basic earnings/(loss) per common share | $ (0.84) | $ (0.81) | $ (0.38) | |||||||||||||||||
Diluted earnings/loss per common share | $ (0.84) | $ (0.81) | $ (0.38) | |||||||||||||||||
Other accounts payable and accrued expenses | 931,000,000 | 995,000,000 | $ 931,000,000 | $ 995,000,000 | ||||||||||||||||
Reinvested earnings/(accumulated deficit) | $ (3,667,000,000) | $ (3,373,000,000) | (3,667,000,000) | (3,373,000,000) | ||||||||||||||||
Inventory | 271,000,000 | 366,000,000 | $ 93,000,000 | |||||||||||||||||
Accrued expenses and other | (30,000,000) | $ (113,000,000) | $ (62,000,000) | |||||||||||||||||
Recognized gain in Reinvested earnings failed sale lease-back valid under new lease accounting | 55,000,000 | |||||||||||||||||||
Revaluated $50 million promissory note issued in connection with sale of home office | 50,000,000 | |||||||||||||||||||
Most likely amount of variable consideration received for promissory note | 0 | |||||||||||||||||||
Impairment charge to Reinvested earnings/(accumulated deficit) | 39,000,000 | |||||||||||||||||||
Change in classification in lease costs | $ 20,000,000 | |||||||||||||||||||
Property, Plant and Equipment [Member] | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Balances removed under prior accounting | 153,000,000 | |||||||||||||||||||
Balances added/reclassified under new lease standard | 0 | |||||||||||||||||||
Net impact of new lease accounting standard | (153,000,000) | |||||||||||||||||||
Operating lease assets [Member] | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Balances removed under prior accounting | 0 | |||||||||||||||||||
Balances added/reclassified under new lease standard | 979,000,000 | |||||||||||||||||||
Net impact of new lease accounting standard | 979,000,000 | |||||||||||||||||||
Other Assets [Member] | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Balances removed under prior accounting | 0 | |||||||||||||||||||
Balances added/reclassified under new lease standard | (7,000,000) | |||||||||||||||||||
Net impact of new lease accounting standard | (7,000,000) | |||||||||||||||||||
Other Assets [Member] | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Balances removed under prior accounting | 153,000,000 | |||||||||||||||||||
Balances added/reclassified under new lease standard | 955,000,000 | |||||||||||||||||||
Net impact of new lease accounting standard | 802,000,000 | |||||||||||||||||||
Other Accounts Payable and Accrued Expenses [Member] | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Balances removed under prior accounting | 4,000,000 | |||||||||||||||||||
Balances added/reclassified under new lease standard | (2,000,000) | |||||||||||||||||||
Net impact of new lease accounting standard | (6,000,000) | |||||||||||||||||||
Current operating lease liabilities [Member] | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Balances removed under prior accounting | 0 | |||||||||||||||||||
Balances added/reclassified under new lease standard | 73,000,000 | |||||||||||||||||||
Net impact of new lease accounting standard | 73,000,000 | |||||||||||||||||||
Current portion of finance leases and note payable [Member] | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Balances removed under prior accounting | 5,000,000 | |||||||||||||||||||
Balances added/reclassified under new lease standard | 0 | |||||||||||||||||||
Net impact of new lease accounting standard | (5,000,000) | |||||||||||||||||||
Noncurrent operating lease liabilities [Member] | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Balances removed under prior accounting | 0 | |||||||||||||||||||
Balances added/reclassified under new lease standard | 1,086,000,000 | |||||||||||||||||||
Net impact of new lease accounting standard | 1,086,000,000 | |||||||||||||||||||
Long-term finance leases and note payable [Member] | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Balances removed under prior accounting | 203,000,000 | |||||||||||||||||||
Balances added/reclassified under new lease standard | 0 | |||||||||||||||||||
Net impact of new lease accounting standard | (203,000,000) | |||||||||||||||||||
Deferred Taxes [Member] | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Balances removed under prior accounting | 10,000,000 | |||||||||||||||||||
Balances added/reclassified under new lease standard | 0 | |||||||||||||||||||
Net impact of new lease accounting standard | (10,000,000) | |||||||||||||||||||
Other Liabilities [Member] | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Balances removed under prior accounting | 11,000,000 | |||||||||||||||||||
Balances added/reclassified under new lease standard | (149,000,000) | |||||||||||||||||||
Net impact of new lease accounting standard | (160,000,000) | |||||||||||||||||||
Retained Earnings [Member] | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Balances removed under prior accounting | 80,000,000 | |||||||||||||||||||
Balances added/reclassified under new lease standard | (53,000,000) | |||||||||||||||||||
Net impact of new lease accounting standard | 27,000,000 | |||||||||||||||||||
Total liabilities and stockholders' equity [Member] | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Balances removed under prior accounting | 153,000,000 | |||||||||||||||||||
Balances added/reclassified under new lease standard | 955,000,000 | |||||||||||||||||||
Net impact of new lease accounting standard | 802,000,000 | |||||||||||||||||||
Prepaid Expenses and Other Current Assets [Member] | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Balances removed under prior accounting | 0 | |||||||||||||||||||
Balances added/reclassified under new lease standard | (17,000,000) | |||||||||||||||||||
Net impact of new lease accounting standard | $ (17,000,000) | |||||||||||||||||||
[1] | Restructuring and management transition charges (Note 18) by quarter for 2019 consisted of the following: ($ in million) First Quarter Second Quarter Third Quarter Fourth Quarter Home office and stores $ 19 $ 4 $ 8 $ 12 Management transition 1 3 1 — Total $ 20 $ 7 $ 9 $ 12 | |||||||||||||||||||
[2] | Restructuring and management transition charges (Note 18) by quarter for 2018 consisted of the following: ($ in millions) First Quarter Second Quarter Third Quarter Fourth Quarter Home office and stores $ 7 $ 2 $ 2 $ 2 Management transition — — 9 — Total $ 7 $ 2 $ 11 $ 2 |
Effect of New Accounting Stan_2
Effect of New Accounting Standards (Details) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Standards Update 2016-13 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes the impairment model for most financial assets and certain other instruments. Under the new guidance, entities will be required to measure expected credit losses for financial instruments, including trade receivables, based on historical experience, current conditions and reasonable forecasts. This standard will be effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. We do not expect the adoption of this new standard will have a material impact on the consolidated financial statements. |
Accounting Standards Update 2018-13 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement. This standard is effective for public business entities in fiscal years beginning after December 15, 2019, and for interim periods within those years. Early adoption is permitted, including during an interim period. This new standard requires changes to the disclosure requirements for fair value measurements for certain Level 3 items, and specifies that some of the changes must be applied prospectively, while others should be applied retrospectively. We are evaluating this new standard but do not expect it to have a significant impact on our financial statement disclosures. |
Accounting Standards Update 2018-14 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans, which removes certain disclosures that are no longer cost beneficial and also includes additional disclosures to improve the overall usefulness of the disclosure requirements to financial statement users. This standard will be effective for public entities for fiscal years beginning after December 15, 2020, however early adoption is permitted. We are evaluating this new standard but do not expect it to have a significant impact on our financial statement disclosures. |
Accounting Standards Update 2018-15 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This standard will be effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, however early adoption is permitted. We do not expect the adoption of this new standard will have a material impact on the consolidated financial statements. |
Accounting Standards Update 2019-12 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740), which simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The standard also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. This standard will be effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, however early adoption is permitted. We are currently evaluating the impact of this new standard on the consolidated financial statements. |
Earnings_(Loss) per Share (Deta
Earnings/(Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 01, 2020 | [1] | Nov. 02, 2019 | [1] | Aug. 03, 2019 | [1] | May 04, 2019 | [1] | Feb. 02, 2019 | [1] | Nov. 03, 2018 | [1] | Aug. 04, 2018 | [1] | May 05, 2018 | [1] | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Earnings Per Share [Abstract] | |||||||||||||||||||
Net income/(loss) | $ (268) | $ (255) | $ (118) | ||||||||||||||||
Weighted average common shares outstanding (basic shares) | 320.2 | 315.7 | 311.1 | ||||||||||||||||
Stock options and restricted stock awards | 0 | 0 | 0 | ||||||||||||||||
Weighted average shares assuming dilution (diluted shares) | 320.2 | 315.7 | 311.1 | ||||||||||||||||
Basic | $ (0.84) | $ (0.81) | $ (0.38) | ||||||||||||||||
Diluted | $ 0.08 | $ (0.29) | $ (0.15) | $ (0.48) | $ 0.24 | $ (0.48) | $ (0.32) | $ (0.25) | $ (0.84) | $ (0.81) | $ (0.38) | ||||||||
Stock options, restricted stock awards | 23.2 | 24.8 | 31.5 | ||||||||||||||||
[1] | EPS is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in average quarterly shares outstanding |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 3,384 | $ 2,384 | $ 2,509 | $ 2,439 | $ 3,665 | $ 2,653 | $ 2,762 | $ 2,584 | $ 10,716 | $ 11,664 | $ 12,554 |
Men's apparel and accessories [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 2,320 | $ 2,432 | |||||||||
Percentage of merchandise mix | 22.00% | 20.00% | |||||||||
Women's apparel [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 2,195 | $ 2,293 | |||||||||
Percentage of merchandise mix | 21.00% | 20.00% | |||||||||
Women's accessories, including Sephora [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 1,516 | $ 1,637 | |||||||||
Percentage of merchandise mix | 14.00% | 14.00% | |||||||||
Home [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 1,191 | $ 1,606 | |||||||||
Percentage of merchandise mix | 11.00% | 14.00% | |||||||||
Footwear and handbags [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 1,191 | $ 1,255 | |||||||||
Percentage of merchandise mix | 11.00% | 11.00% | |||||||||
Children's, including toys [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 991 | $ 1,070 | |||||||||
Percentage of merchandise mix | 9.00% | 9.00% | |||||||||
Jewelry [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 641 | $ 652 | |||||||||
Percentage of merchandise mix | 6.00% | 6.00% | |||||||||
Services and other [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 671 | $ 719 | |||||||||
Percentage of merchandise mix | 6.00% | 6.00% | |||||||||
Total [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percentage of merchandise mix | 100.00% | 100.00% |
Revenue Contract with Custome_2
Revenue Contract with Customer Liability (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Contract with Customer Liability [Line Items] | |||
Customer gift cards | $ 136 | $ 140 | |
Loyalty rewards | 58 | 60 | |
Contract with Customer, Liability | 194 | 200 | $ 217 |
Total [Member] | |||
Contract with Customer Liability [Line Items] | |||
Contract with Customer, Liability | $ 194 | $ 200 |
Revenue Contract with Custome_3
Revenue Contract with Customer Liability Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Contract with Customer, Liability | $ 194 | $ 200 | $ 217 |
Current Period Gift Cards Sold and Reward Points Earned | 401 | 422 | |
Net Sales From Amounts Included in Contract Liability Opening Balances | (72) | (80) | |
Net sales from current period usage | $ (335) | $ (359) |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 | |
Other Assets, Noncurrent Disclosure [Abstract] | |||
Capitalized software, net | $ 337 | $ 334 | |
Indefinite-lived intangible assets, net (1) | [1] | 275 | 275 |
Revolving credit facility unamortized costs, net | 15 | 22 | |
Interest rate swaps (Notes 9, 10 and 11) | 0 | 10 | |
Other | 30 | 36 | |
Total | $ 657 | $ 677 | |
[1] | (1) Amounts are net of an accumulated impairment loss of $9 million. |
Other Accounts Payable and Ac_3
Other Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accrued salaries, vacation and bonus | $ 191 | $ 154 |
Customer gift cards | 136 | 140 |
Taxes other than income taxes | 86 | 85 |
Loyalty rewards | 58 | 60 |
Interest | 67 | 71 |
Advertising | 68 | 78 |
Current portion of workers’ compensation and general liability self-insurance | 39 | 45 |
Restructuring and management transition (Note 18) | 8 | 9 |
Current portion of retirement plan liabilities (Note 17) | 27 | 30 |
Capital expenditures | 16 | 43 |
Occupancy and rent-related | 24 | 28 |
Other | 211 | 252 |
Total | $ 931 | $ 995 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Other Liabilities, Noncurrent [Abstract] | ||
Supplemental pension and other postretirement benefit plan liabilities (Note 17) | $ 109 | $ 116 |
Long-term portion of workers’ compensation and general liability insurance | 103 | 107 |
Deferred developer/tenant allowances | 93 | 144 |
Deferred rent liability (Note 3) | 0 | 103 |
Interest rate swaps (Notes 7, 10 and 11) | 58 | 15 |
Restructuring and management transition (Note 18) | 0 | 9 |
Other | 67 | 64 |
Total | $ 430 | $ 558 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Sep. 04, 2018 | May 07, 2015 | ||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | $ 750 | $ 1,250 | ||||
Gain/(loss) recognized in other comprehensive income/(loss) | [1] | $ (48) | $ (9) | $ 6 | ||
Interest rate swaps | 58 | 15 | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 0 | 10 | ||||
Derivative, Average Fixed Interest Rate | 3.135% | 2.04% | ||||
Effectiveness of interest rate swaps | 100.00% | |||||
Other Assets [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 0 | 10 | ||||
Accumulated Other Comprehensive Income/(Loss) [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Gain/(loss) recognized in other comprehensive income/(loss) | [1] | (48) | (13) | |||
Other Liabilities [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Interest rate swaps | 58 | 15 | ||||
Total [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Interest rate swaps | 58 | 15 | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 10 | ||||
Interest Expense [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Gain (Loss) on Derivative Instruments, Net, Pretax | $ 5 | $ 2 | ||||
[1] | Net of $ 12 million of tax in 2019 offset by a deferred tax valuation allowance of $(12) million , $4 million of tax in 2018 and $(3) million of tax in 2017. |
Fair Value Disclosures (Other F
Fair Value Disclosures (Other Financial Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
May 04, 2019 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Document Period End Date | Feb. 1, 2020 | |||
Total debt, excluding unamortized debt issuance costs, capital leases and note payable | $ 3,758 | $ 3,856 | ||
Asset impairments | $ 14 | 0 | 52 | $ 0 |
Long-term debt, including current maturities, Fair Value | 2,464 | 2,579 | ||
Carrying value of long-lived assets impaired, fair value disclosure | 22 | 6 | 72 | |
Carrying value of right-of-use assets impaired, fair value disclosure | 58 | |||
Right-of-use assets, fair value disclosure | 19 | |||
Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Nonrecurring (Deprecated 2018-01-31) | 8 | 1 | 20 | |
Home Office And Stores [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Asset impairments | 5 | $ 77 | ||
Restructuring and management transition [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Asset impairments | $ 14 | $ 5 |
Credit Facility (Details)
Credit Facility (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Aug. 03, 2019 | Aug. 04, 2018 | Feb. 01, 2020USD ($) | |
Line of Credit Facility [Line Items] | |||
2017 Credit Facility | $ 2,350 | ||
Revolving Facility, maximum borrowing capacity | 2,350 | ||
2017 Credit Facility, interest rate spread lowered, basis points | 75 | ||
Current Borrowing Capacity Before Standby And Import Letters Of Credit | 1,594 | ||
2017 Credit Facility, Expiration Date | Jun. 20, 2022 | ||
Revolving Facility, total standby and import letters of credit | $ 203 | ||
Revolving Facility, commitment fee percentage on unused capacity | 0.375% | ||
Revolving Facility, remaining borrowing capacity | $ 1,391 | ||
Domestic Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Revolving Facility, interest rate at period end | 1.75% | ||
Foreign Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Revolving Facility, interest rate at period end | 0.875% |
Long-Term Debt (Debt Issues) (D
Long-Term Debt (Debt Issues) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | ||
Debt Instrument [Line Items] | |||
Total debt | $ 3,758 | $ 3,856 | |
Unamortized debt issuance costs | (37) | (48) | |
Total long-term debt | $ 3,574 | $ 3,716 | |
Weighted-average interest rate at year end | 6.30% | 6.30% | |
Weighted-average maturity (in years) | 16 years | ||
Less: current maturities | $ (147) | $ (92) | |
8.125% Senior Notes Due 2019 | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate (percent) | 8.125% | 8.125% | |
Unsecured Long-term Debt, Noncurrent | $ 0 | $ 50 | |
5.65% Senior Notes Due 2020 (1) | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate (percent) | 5.65% | 5.65% | |
Unsecured Long-term Debt, Noncurrent | [1] | $ 105 | $ 110 |
2016 Term Loan Facility (Matures in 2023) | |||
Debt Instrument [Line Items] | |||
Secured Debt | $ 1,540 | $ 1,583 | |
5.875% Senior Secured Notes Due 2023 (1) | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate (percent) | 5.875% | 5.875% | |
Secured Debt | [1] | $ 500 | $ 500 |
7.125% Debentures Due 2023 | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate (percent) | 7.125% | 7.125% | |
Unsecured Long-term Debt, Noncurrent | $ 10 | $ 10 | |
Senior Secured Second Priority Notes 8.625% due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate (percent) | 8.625% | 8.625% | |
8.625% Senior Secured Second Priority Notes Due 2025 (1) | |||
Debt Instrument [Line Items] | |||
Secured Debt | [1] | $ 400 | $ 400 |
6.9% Notes Due 2026 | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate (percent) | 6.90% | 6.90% | |
Unsecured Long-term Debt, Noncurrent | $ 2 | $ 2 | |
6.375% Senior Notes Due 2036 (1) | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate (percent) | 6.375% | 6.375% | |
Unsecured Long-term Debt, Noncurrent | [1] | $ 388 | $ 388 |
7.4% Debentures Due 2037 | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate (percent) | 7.40% | 7.40% | |
Unsecured Long-term Debt, Noncurrent | $ 313 | $ 313 | |
7.625% Notes Due 2097 | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate (percent) | 7.625% | 7.625% | |
Unsecured Long-term Debt, Noncurrent | $ 500 | $ 500 | |
[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% . These provisions trigger if there were a beneficial ownership change of 50% or more of our common stock. |
Long-Term Debt (Financial Coven
Long-Term Debt (Financial Covenants) (Details) | 12 Months Ended |
Feb. 01, 2020 | |
Debt Instrument [Line Items] | |
Long-Term Debt Financial Covenant | 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%. These provisions trigger if there were a beneficial ownership change of 50% or more of our common stock. |
Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt repurchase provision, percentage of outstanding principal | 101.00% |
Debt Repurchase Provision, Required Beneficial Ownership Change | 50.00% |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
May 04, 2019 | Feb. 02, 2019 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | May 05, 2018 | Jul. 30, 2016 | |
Debt Instrument [Line Items] | |||||||
Proceeds from issuance of long-term debt | $ 0 | $ 400,000,000 | $ 0 | ||||
(Gain)/loss on extinguishment of debt | (1,000,000) | 23,000,000 | 33,000,000 | ||||
2016 Term Loan Facility, face amount | $ 400,000,000 | $ 500,000,000 | |||||
Premium On Early Retirement Of Long Term Debt | $ 20,000,000 | $ 0 | $ 20,000,000 | $ 30,000,000 | |||
Payment for Debt Extinguishment or Debt Prepayment Cost | 1,000,000 | ||||||
Write off of Deferred Debt Issuance Cost | 2,000,000 | ||||||
8.125% Senior Notes Due 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, stated interest rate (percent) | 8.125% | 8.125% | 8.125% | ||||
Unsecured Long-term Debt, Noncurrent | $ 50,000,000 | $ 0 | $ 50,000,000 | ||||
2016 Term Loan Facility (Matures in 2023) | |||||||
Debt Instrument [Line Items] | |||||||
2016 Term Loan Facility, basis spread on variable interest rate | 4.25% | ||||||
Senior Secured Notes Five Point Eight Seven Five Percent Due2023 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, stated interest rate (percent) | 5.875% | 5.875% | 5.875% | ||||
5.65% Senior Notes Due 2020 (1) | |||||||
Debt Instrument [Line Items] | |||||||
Debt repurchase, aggregate consideration paid | 250,000,000 | ||||||
Portions of Senior Notes due 2019 and Senior Notes due 2020 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
(Gain)/loss on extinguishment of debt | (23,000,000) | ||||||
8.125% Senior Notes Due 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Debt repurchase, aggregate consideration paid | $ 125,000,000 | ||||||
2016 Term Loan Facility (Matures in 2023) | |||||||
Debt Instrument [Line Items] | |||||||
2016 Term Loan Facility, required quarterly principal payment | $ 10,550,000 |
Long-Term Debt (Annual Principa
Long-Term Debt (Annual Principal Payments) (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Debt Disclosure [Abstract] | ||
2019 | $ 147 | |
2020 | 42 | |
2021 | 42 | |
2022 | 1,924 | |
2023 | 0 | |
Thereafter | 1,603 | |
Total | $ 3,758 | $ 3,856 |
Stockholders' Equity (Accumulat
Stockholders' Equity (Accumulated Other Comprehensive Income/ (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
May 04, 2019 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative Effect on Retained Earnings, Net of Tax | $ 27 | |||
Balance as of the beginning of the period | $ 1,170 | 1,170 | $ 1,383 | $ 1,360 |
Current period change, accumulated other comprehensive income/(loss) | (112) | 32 | 113 | |
Balance as of the end of the period | 829 | 1,170 | 1,383 | |
Net Actuarial Gain/(Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative Effect on Retained Earnings, Net of Tax | 46 | |||
Accumulated Other Comprehensive Income (Loss), Net Actuarial Gain/(Loss) Prior Service Credit/(Cost),Net of Tax | (310) | (290) | (330) | |
Current period change, pension and postretirement benefits | (66) | 40 | ||
Prior Service Credit/(Cost) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative Effect on Retained Earnings, Net of Tax | 3 | |||
Accumulated Other Comprehensive Income (Loss), Net Actuarial Gain/(Loss) Prior Service Credit/(Cost),Net of Tax | (12) | (22) | (26) | |
Current period change, pension and postretirement benefits | 7 | 4 | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative Effect on Retained Earnings, Net of Tax | 0 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 0 | (1) | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (1) | (1) | 0 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative Effect on Retained Earnings, Net of Tax | 4 | |||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (53) | (11) | ||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | (64) | (15) | (4) | |
Accumulated Other Comprehensive Income/(Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative Effect on Retained Earnings, Net of Tax | 53 | 53 | ||
Balance as of the beginning of the period | $ (328) | (328) | (360) | (473) |
Current period change, accumulated other comprehensive income/(loss) | (112) | 32 | 113 | |
Balance as of the end of the period | $ (387) | $ (328) | $ (360) |
Stockholders' Equity Stockholde
Stockholders' Equity Stockholders' Equity (Reclassifications Out of Accumulated Other Comprehensive Income/ (Loss) (Details) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification for amortization of prior service (credit)/cost (4) | [1] | $ 7 | $ 4 | $ 4 |
Other comprehensive income/(loss) | $ (112) | $ 32 | $ 113 | |
[1] | Net of $(3) million of tax in 2019 offset by a deferred tax valuation allowance of $3 million , $(3) million of tax in 2018 and $(3) million of tax in 2017. Pre-tax amounts of $7 million in 2019, 2018 and 2017 were recognized in Other components of net periodic pension and postretirement benefit cost/(income) in the Consolidated Statement of Operations. |
Stockholders' Equity (Common St
Stockholders' Equity (Common Stock) (Details) - $ / shares shares in Millions | Feb. 01, 2020 | Jan. 27, 2014 |
Schedule of Capitalization, Equity [Line Items] | ||
Common stock Issued, par value per share | $ 0.50 | $ 0.50 |
Shares held in 401(k) plan, including ESOP | 16 | |
Percent of shares held in 401(k) plan, including ESOP | 5.00% |
Stockholders' Equity (Preferred
Stockholders' Equity (Preferred Stock) (Details) | Feb. 01, 2020shares |
Stockholders' Equity Note [Abstract] | |
Preferred Stock, Shares Authorized | 25,000,000 |
Stockholders' Equity (Stockhold
Stockholders' Equity (Stockholders Agreements) (Details) | Jan. 27, 2014right / sharesright$ / shares | Feb. 01, 2020$ / shares |
Stockholders' Equity (Stockholders Agreements) [Line Items] | ||
Common stock, par value per share | $ 0.50 | $ 0.50 |
Stockholders agreements | As authorized by our Company’s Board of Directors (the Board), on January 27, 2014, the Company entered into an Amended and Restated Rights Agreement (Amended Rights Agreement) with Computershare Inc., as Rights Agent (Rights Agent), amending, restating and replacing the Rights Agreement, dated as of August 22, 2013 (Original Rights Agreement), between the Company and the Rights Agent. Pursuant to the terms of the Original Rights Agreement, one preferred stock purchase right (a Right) was attached to each outstanding share of Common Stock of $0.50 par value of the Company (Common Stock) held by holders of record as of the close of business on September 3, 2013. The Company has issued one Right in respect of each new share of Common Stock issued since the record date. The Rights, registered on August 23, 2013, trade with and are inseparable from our Common Stock and will not be evidenced by separate certificates unless they become exercisable. The purpose of the Amended Rights Agreement is to diminish the risk that the Company's ability to use its net operating losses and other tax assets to reduce potential future federal income tax obligations would become subject to limitations by reason of the Company's experiencing an "ownership change" as defined under Section 382 of the Internal Revenue Code of 1986, as amended (the Code). Ownership changes under Section 382 generally relate to the cumulative change in ownership among stockholders with an ownership interest of 5% or more (as determined under Section 382's rules) over a rolling three year period. The Amended Rights Agreement is intended to reduce the likelihood of an ownership change under Section 382 by deterring any person or group from acquiring beneficial ownership of 4.9% or more of the outstanding Common Stock. After various amendments to the Original Rights Agreement, expiration date of the Rights were extended to January 26, 2020 and certain other provisions were amended including the definition of "beneficial ownership" to include terms appropriate for the purpose of preserving tax benefits. Each Right entitles its holder to purchase from the Company 1/1000th of a share of a newly authorized series of participating preferred stock at an exercise price of $55.00, subject to adjustment in accordance with the terms of the Amended Rights Agreement, once the Rights become exercisable. In general terms, under the Amended Rights Agreement, the Rights become exercisable if any person or group acquires 4.9% or more of the Common Stock or, in the case of any person or group that owned 4.9% or more of the Common Stock as of January 27, 2014, upon the acquisition of any additional shares by such person or group. In addition, the Company, its subsidiaries, employee benefit plans of the Company or any of its subsidiaries, and any entity holding Common Stock for or pursuant to the terms of any such plan, are excepted. Upon exercise of the Right in accordance with the Amended Rights Agreement, the holder would be able to purchase a number of shares of Common Stock from the Company having an aggregate market value (as defined in the Amended Rights Agreement) equal to twice the then-current exercise price for an amount in cash equal to the then-current exercise price. The Rights will not prevent an ownership change from occurring under Section 382 of the Code or a takeover of the Company, but may cause substantial dilution to a person that acquires 4.9% or more of our Common Stock. | |
Preferred Stock [Member] | ||
Stockholders' Equity (Stockholders Agreements) [Line Items] | ||
Number of preferred stock purchase rights | right | 1 | |
Conversion ratio of right to share of preferred stock | right / shares | 0.001 | |
Warrants, exercise price | $ 55 | |
Common Stock of 50 cents par value | ||
Stockholders' Equity (Stockholders Agreements) [Line Items] | ||
Stock purchase right, exercisable upon individual stock ownership percentage | 4.90% | |
Stock purchase right, dilution affecting stockholder ownership (percent) | 4.90% |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | May 25, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options and restricted stock, percent of total outstanding stock | 3.50% | |||
Stock options, weighted average grant date fair value | $ 0.86 | $ 0.86 | $ 2.91 | |
Long-Term Incentive Plan, 2018 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Long-term incentive plan, shares available for future grant | 21,200,000 | |||
Stock Awards [Member] | Long-Term Incentive Plan, 2018 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Long-term incentive plan, shares reserved for future grants | 17,900,000 | |||
Stock Option Award [Member] | Long-Term Incentive Plan, 2018 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Long-term incentive plan, shares reserved for future grants | 26,700,000 | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 0.4 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 14 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-Based Compensation Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | [1] | $ 11 | $ 10 | $ 25 |
Total income tax benefit recognized for stock-based compensation arrangements | 0 | 0 | 0 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 10 | 7 | 18 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 1 | $ 3 | 7 | |
Management Transition and Home Office and Stores Stock-Based Compensation [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Excluded stock-based compensation recorded in restructuring and management transition | $ 2 | |||
[1] | Excludes $2 million of stock-based compensation costs reported in restructuring and management transition charges (Note 18 ). |
Stock-Based Compensation (Sto_2
Stock-Based Compensation (Stock Options Activity) (Details) | Feb. 01, 2020shares |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Stock Options, Exercisable | 6,234,000 |
Stock-Based Compensation (Non-V
Stock-Based Compensation (Non-Vested Stock Awards Activity) (Details) shares in Thousands | 12 Months Ended |
Feb. 01, 2020$ / sharesshares | |
Time-Based Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested Stock Awards, beginning balance | shares | 11,070 |
Granted, Stock Awards | shares | 10,601 |
Vested, Stock Awards | shares | (5,073) |
Forfeited/canceled, Stock Awards | shares | (1,672) |
Non-vested Stock Awards, ending balance | shares | 14,926 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Non-vested Weighted-Average Grant Date Fair Value, beginning of year | $ / shares | $ 3 |
Granted, Weighted-Average Grant Date Fair Value | $ / shares | 1 |
Vested, Weighted-Average Grant Date Fair Value | $ / shares | 2 |
Forfeited/canceled, Weighted-Average Grant Date Fair Value | $ / shares | 3 |
Non-vested Weighted-Average Grant Date Fair Value, end of year | $ / shares | $ 2 |
Performance-Based Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested Stock Awards, beginning balance | shares | 1,407 |
Granted, Stock Awards | shares | 0 |
Vested, Stock Awards | shares | 0 |
Forfeited/canceled, Stock Awards | shares | (1,237) |
Non-vested Stock Awards, ending balance | shares | 170 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Non-vested Weighted-Average Grant Date Fair Value, beginning of year | $ / shares | $ 5 |
Granted, Weighted-Average Grant Date Fair Value | $ / shares | 0 |
Vested, Weighted-Average Grant Date Fair Value | $ / shares | 0 |
Forfeited/canceled, Weighted-Average Grant Date Fair Value | $ / shares | 5 |
Non-vested Weighted-Average Grant Date Fair Value, end of year | $ / shares | $ 4 |
Stock-Based Compensation (Sto_3
Stock-Based Compensation (Stock Awards) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Mar. 06, 2017 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards vested in period, aggregate market value | $ 5 | $ 11 | $ 17 | |
Stock awards, aggregate grant date fair value | 13 | $ 25 | $ 27 | |
Deferred Compensation Liability, Current and Noncurrent | $ 4 | |||
Phantom Share Units (PSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 8 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Maximum Award Settlement, Per Share | $ 5.03 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options, Outstanding, Grant Date Fair Value | $ 0.75 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 14 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Operating Leased Assets [Line Items] | ||
Operating lease assets | $ 998,000,000 | $ 0 |
Finance Lease, Liability, Noncurrent | 0 | |
Operating Lease, Payments | $ 210 | |
Operating Lease, Weighted Average Remaining Lease Term | 15 years | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 189,000,000 | |
Finance Lease, Liability, Payments, Due Next Twelve Months | 0 | |
Total lease liability year one | $ 189,000,000 | |
Lessee, Finance Lease, Term of Contract | 5 years | |
Net lease cost | $ 319,000,000 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 197,000,000 | |
Finance Lease, Liability, Payments, Due Year Two | 0 | |
Total lease liability year two | 197,000,000 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 184,000,000 | |
Finance Lease, Liability, Payments, Due Year Three | 0 | |
Total lease liability year three | 184,000,000 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 180,000,000 | |
Finance Lease, Liability, Payments, Due Year Four | 0 | |
Total lease liability year four | 180,000,000 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 167,000,000 | |
Finance Lease, Liability, Payments, Due Year Five | 0 | |
Total lease liability year five | 167,000,000 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 1,750,000,000 | |
Finance Lease, Liability, Payments, Due after Year Five | 0 | |
Total lease liability thereafter | 1,750,000,000 | |
Total lease payments | 2,667,000,000 | |
Finance Lease, Liability, Payment, Due | 0 | |
Operating Leases, Amounts Representing Interest | (1,492,000,000) | |
Finance Leases, Amounts Representing Interest | 0 | |
Less: amounts representing interest | (1,492,000,000) | |
Operating Lease, Liability | 1,175,000,000 | |
Finance Lease, Liability | 0 | |
Present value of lease liabilities | $ 1,175,000,000 | |
Operating Lease, Weighted Average Discount Rate, Percent | 11.00% | |
Operating cash flows from finance leases | $ 1 | |
Finance Lease, Principal Payments | 1,000,000 | |
Total leased assets | 998,000,000 | |
Operating | 67,000,000 | 0 |
Operating | $ 1,108,000,000 | $ 0 |
Maximum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lessee, Operating Lease, Renewal Term | 50 years | |
Selling, General and Administrative Expenses [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating lease cost | $ 196,000,000 | |
Variable lease cost | 133,000,000 | |
Depreciation and amortization expense [Member] | ||
Operating Leased Assets [Line Items] | ||
Amortization of lease assets | 0 | |
Interest Expense [Member] | ||
Operating Leased Assets [Line Items] | ||
Interest on lease liabilities | 0 | |
Real estate and other, net [Member] | ||
Operating Leased Assets [Line Items] | ||
Rental income | 10,000,000 | |
Current portion of finance leases and note payable [Member] | ||
Operating Leased Assets [Line Items] | ||
Finance Lease, Liability, Current | $ 1,000,000 |
Leases (Rent Expense) (Details)
Leases (Rent Expense) (Details) $ in Millions | Feb. 01, 2020USD ($) |
Operating Leases, Rent Expense [Line Items] | |
Total leased liabilities | $ 1,176 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) $ in Millions | Feb. 02, 2019USD ($) |
Leases [Abstract] | |
2019, Operating | $ 190 |
2020, Operating | 178 |
2021, Operating | 163 |
2022, Operating | 148 |
2023, Operating | 135 |
Thereafter, Operating | 1,626 |
Less: sublease payments, Operating | (43) |
Total minimum lease payments, Operating | $ 2,397 |
Retirement Benefit Plans (Net P
Retirement Benefit Plans (Net Periodic Expense) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 29, 2017USD ($)employee | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate | 3.08% | 4.33% | 3.98% | |
Defined benefit plan, description of plan amendment | In 2017, the Company 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 special retirement benefits. The special 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 $7 million related to our Primary Pension Plan and Supplemental Pension Plans as a result of the reduction in the expected years of future service related to these plans. We also recognized settlement expense of $13 million in 2017 due to higher lump-sum payment activity to retirees primarily as a result of the VERP executed earlier in the year. | |||
Funded status of plan percentage, description | As of the end of 2019, the funded status of the Primary Pension Plan was 104%. The Primary Benefit Obligation (PBO) is the present value of benefits earned to date by plan participants, including the effect of assumed future salary increases. Under the Employee Retirement Income Security Act of 1974 (ERISA), the funded status of the plan exceeded 100% as of December 31, 2019 and 2018, the qualified pension plan’s year end. | |||
Net Periodic Benefit Expense/(Income) [Abstract] | ||||
Curtailment (gain)/loss recognized | $ (7,000) | |||
Special termination benefit recognized | $ (112,000) | |||
Other components of net periodic pension and postretirement benefit cost/(income) | $ (35,000) | $ (71,000) | $ 98,000 | |
Number of employees eligible for VERP | employee | 6,000 | |||
Number of employees accepted VERP | employee | 2,800 | |||
Primary Pension Plan and Benefit Restoration Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employee retirement age | 65 years | |||
Supplemental Employee Retirement Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | $ 0 | 0 | 0 | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 27,000 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 38,000 | |||
Settlements | $ 0 | 0 | ||
Employee retirement age | 60 years | |||
Termination of company-paid term life insurance, employee age | 70 years | |||
Termination of employee-paid term life insurance, employee age | 65 years | |||
Balance at measurement date | $ 136,000 | 146,000 | 182,000 | |
Net Periodic Benefit Expense/(Income) [Abstract] | ||||
Service cost | 0 | 1,000 | ||
Interest cost | 6,000 | 8,000 | ||
Defined benefit plan increase (decrease) due to enhanced retirement benefits | $ 24,000 | |||
Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 3,467,000 | 3,163,000 | 3,528,000 | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 237,000 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 1,067,000 | |||
Settlements | 153,000 | 174,000 | ||
Balance at measurement date | 3,347,000 | 3,016,000 | 3,467,000 | |
Net Periodic Benefit Expense/(Income) [Abstract] | ||||
Service cost | 28,000 | 37,000 | ||
Interest cost | 125,000 | 133,000 | ||
Settlement expense | 13,000 | |||
Defined benefit plan increase (decrease) due to enhanced retirement benefits | $ 88,000 | |||
Primary and Supplemental Pension Plans Total [Member] | ||||
Net Periodic Benefit Expense/(Income) [Abstract] | ||||
Service cost | 28,000 | 38,000 | 42,000 | |
Interest cost | 131,000 | 141,000 | 150,000 | |
Expected return on plan assets | (191,000) | (223,000) | (216,000) | |
Amortization of actuarial loss/(gain) | 10,000 | (3,000) | 25,000 | |
Amortization of prior service cost/(credit) | (7,000) | (7,000) | (7,000) | |
Settlement expense | 8,000 | 7,000 | 13,000 | |
Curtailment (gain)/loss recognized | 0 | 0 | 7,000 | |
Special termination benefit recognized | 0 | 0 | 112,000 | |
Other components of net periodic pension and postretirement benefit cost/(income) | (35,000) | (71,000) | 98,000 | |
Net periodic benefit expense/(income) | $ (7,000) | $ (33,000) | $ 140,000 | |
Social Security Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employee retirement age | 62 years | |||
Minimum [Member] | Supplemental Employee Retirement Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employee retirement age for equal social security benefits | 60 years | |||
Maximum [Member] | Supplemental Employee Retirement Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employee retirement age for equal social security benefits | 62 years |
Retirement Benefit Plans (Expen
Retirement Benefit Plans (Expense Actuarial Assumptions) (Details) | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expected return on plan assets | 6.25% | 6.50% | 6.50% | |
Discount rate | 4.33% | [1] | 3.98% | 4.40% |
Salary increase | 2.80% | 3.80% | 3.90% | |
Discount rate | 3.08% | 4.33% | 3.98% | |
Narrative description of basis used to determine overall expected long-term rate-of-return on asset assumption | The expected return on plan assets is based on the plan’s long-term asset allocation policy, historical returns for plan assets and overall capital market returns, taking into account current and expected market conditions. | |||
Assumptions used in calculations, description | The discount rate used to measure pension expense each year is the rate as of the beginning of the year (i.e., the prior measurement date). The discount rate used, determined by the plan actuary, was based on a hypothetical AA yield curve represented by a series of bonds maturing over the next 30 years, designed to match the corresponding pension benefit cash payments to retirees. | |||
Maximum [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Assumptions used calculating net periodic benefit cost, discount rate calculation, bond term | 30 years | |||
[1] | As of January 31, 2017. The Primary Pension Plan was remeasured as of March 31, 2017 using a discount rate of 4.34% and as of October 31, 2017 using a discount rate of 3.94%. |
Retirement Benefit Plans (Oblig
Retirement Benefit Plans (Obligations and Funded Status) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 29, 2017 | Feb. 01, 2020 | Feb. 02, 2019 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Prepaid pension | $ 120,000 | $ 147,000 | ||
Change in APBO | ||||
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | $ 112,000 | |||
Change in fair value of plan assets | ||||
Increase/(Decrease) in funded status of plan | $ (27,000) | |||
Actual return on plan assets (percent) | 20.30% | |||
Cumulative return on plan assets since inception (percent) | 9.00% | |||
Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Prepaid pension | $ 120,000 | 147,000 | ||
Funded status of the plan (percent) | 104.00% | |||
Change in APBO | ||||
Beginning balance | $ 3,016,000 | 3,467,000 | ||
Service cost | 28,000 | 37,000 | ||
Interest cost | 125,000 | 133,000 | ||
Actuarial loss/(gain) | 478,000 | (289,000) | ||
Balance at measurement date | 3,347,000 | 3,016,000 | ||
Change in fair value of plan assets | ||||
Beginning Balance | 3,163,000 | 3,528,000 | ||
Company contributions | 0 | 0 | ||
Actual return on assets | [1] | 604,000 | (33,000) | |
Balance at measurement date | 3,467,000 | 3,163,000 | ||
Funded status of the plan | [2] | 120,000 | 147,000 | |
Settlements | (153,000) | (174,000) | ||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 147,000 | 158,000 | ||
Supplemental Employee Retirement Plan [Member] | ||||
Change in APBO | ||||
Beginning balance | 146,000 | 182,000 | ||
Service cost | 0 | 1,000 | ||
Interest cost | 6,000 | 8,000 | ||
Actuarial loss/(gain) | 14,000 | (12,000) | ||
Balance at measurement date | 136,000 | 146,000 | ||
Change in fair value of plan assets | ||||
Beginning Balance | 0 | 0 | ||
Company contributions | 30,000 | 33,000 | ||
Actual return on assets | 0 | 0 | ||
Balance at measurement date | 0 | 0 | ||
Funded status of the plan | [3] | (136,000) | (146,000) | |
Settlements | 0 | 0 | ||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 30,000 | 33,000 | ||
Current Portion of Pension Plan Liability Accrued | $ 27,000 | $ 30,000 | ||
[1] | Includes plan administrative expenses. | |||
[2] | $120 million in 2019 and $147 million in 2018 were included in Prepaid pension in the Consolidated Balance Sheets. | |||
[3] | $27 million in 2019 and $30 million in 2018 were included in Other accounts payable and accrued expenses on the Consolidated Balance Sheets, and the remaining amounts were included in Other liabilities. |
Retirement Benefit Plans (Accum
Retirement Benefit Plans (Accumulated Other Comprehensive (Loss)/Income) (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 | |
Supplemental Employee Retirement Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net loss/(gain) | $ 12 | $ 9 | |
Prior service cost/(credit) | (2) | (3) | |
Defined Benefit Plan, Accumulated Other Comprehensive Income, before Tax, Total | 10 | 6 | |
Pension Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net loss/(gain) | 184 | 129 | |
Prior service cost/(credit) | 23 | 30 | |
Defined Benefit Plan, Accumulated Other Comprehensive Income, before Tax, Total | 207 | [1] | $ 159 |
Defined Benefit Plan, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | $ 6 | ||
[1] | In 2020 , approximately $6 million for the Primary Pension Plan is expected to be amortized from Accumulated other comprehensive income/(loss) and into the Consolidated Statement of Operations. |
Retirement Benefit Plans (Benef
Retirement Benefit Plans (Benefit Obligation Actuarial Assumptions) (Details) | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Retirement Benefits [Abstract] | |||
Discount rate | 3.08% | 4.33% | 3.98% |
Salary progression rate | 2.70% | 2.80% | 3.80% |
Retirement Benefit Plans Retire
Retirement Benefit Plans Retirement Benefit Plans (Accumulated Benefit Obligation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Payment for Settlement | $ 153,000 | $ 174,000 | |
Accumulated benefit obligation | 3,200,000 | 2,900,000 | |
Fair value of plan assets | 3,467,000 | 3,163,000 | $ 3,528,000 |
Supplemental Employee Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current Portion of Pension Plan Liability Accrued | 27,000 | 30,000 | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 0 | 0 | |
Accumulated benefit obligation | 130,000 | 141,000 | |
Fair value of plan assets | $ 0 | $ 0 | $ 0 |
Retirement Benefit Plans (Asset
Retirement Benefit Plans (Asset Allocation) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, risk management practices | In 2009, we began implementing a liability-driven investment (LDI) strategy to lower the plan’s volatility risk and minimize the impact of interest rate changes on the plan funded status. The implementation of the LDI strategy is phased in over time by reallocating the plan’s assets more towards fixed income investments (i.e., debt securities) that are more closely matched in terms of duration to the plan liability. In 2018, we shifted 5% of the plan's target allocation from equities into fixed income. The plan’s asset portfolio is actively managed and primarily invested in fixed income balanced with investments in equity securities and other asset classes to maintain an efficient risk/return diversification profile. The risk of loss in the plan’s equity portfolio is mitigated by investing in a broad range of equity securities across different sectors and countries. Investment types, including high-yield debt securities, illiquid assets such as real estate, the use of derivatives and Company securities are set forth in written guidelines established for each investment manager and monitored by the plan’s management team. The plan’s asset allocation policy is designed to meet the plan’s future pension benefit obligations. Under the policy, asset classes are periodically reviewed and rebalanced as necessary, to ensure that the mix continues to be appropriate relative to established targets and ranges. | |
Actual plan asset allocations | 100.00% | 100.00% |
Equity securities total [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, risk management practices | 10% - 25% | |
Actual plan asset allocations | 17.00% | 18.00% |
Fixed income total [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, risk management practices | 60% - 75% | |
Actual plan asset allocations | 74.00% | 68.00% |
Real estate, cash and other [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, risk management practices | 0% - 25% | |
Actual plan asset allocations | 9.00% | 14.00% |
Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ (13) |
Retirement Benefit Plans (Inves
Retirement Benefit Plans (Investments at Fair Value) (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Total investment assets at fair value | $ 4,089 | $ 3,488 | |||
Total investment liabilities at fair value | (645) | ||||
Accounts payable, net | (223) | (26) | |||
Defined Benefit Plans Fair Value Total Investments at NAV | 246 | [1] | (352) | [2] | |
Total net assets | 3,467 | 3,163 | |||
Fair Value, Inputs, Level 1 [Member] | |||||
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Investments at fair value | [3] | 0 | |||
Total investment assets at fair value | 588 | [3] | 522 | [4] | |
Total investment liabilities at fair value | (10) | [3] | (7) | [4] | |
Fair Value, Inputs, Level 2 [Member] | |||||
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Total investment assets at fair value | 3,491 | [3] | 2,956 | [4] | |
Total investment liabilities at fair value | (635) | [3] | (644) | [4] | |
Fair Value, Inputs, Level 3 [Member] | |||||
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Investments at fair value | 0 | ||||
Total investment assets at fair value | 10 | 10 | |||
Total investment liabilities at fair value | 0 | 0 | |||
Common Collective Trusts [Member] | |||||
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Investments at fair value | 65 | 60 | |||
Common Collective Trusts [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
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Investments at fair value | [4] | 0 | |||
Common Collective Trusts [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
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Investments at fair value | 65 | [3] | 60 | [4] | |
Common Collective Trusts [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
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Investments at fair value | 0 | ||||
Cash and cash equivalents total [Member] | |||||
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Investments at fair value | 95 | 69 | |||
Cash and cash equivalents total [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
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Investments at fair value | 30 | [3] | 9 | [4] | |
Cash and cash equivalents total [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
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Investments at fair value | 65 | [3] | 60 | [4] | |
Cash and cash equivalents total [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
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Investments at fair value | 0 | 0 | |||
Cash, benefit plan [Member] | |||||
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Investments at fair value | 30 | 9 | |||
Cash, benefit plan [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
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Investments at fair value | 30 | [3] | 9 | [4] | |
Cash, benefit plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
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Investments at fair value | 0 | [3] | 0 | [4] | |
Cash, benefit plan [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
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Investments at fair value | 0 | 0 | |||
Equity securities total [Member] | |||||
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Investments at fair value | 552 | 527 | |||
Equity securities total [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
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Investments at fair value | 510 | [3] | 472 | [4] | |
Equity securities total [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
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Investments at fair value | 42 | [3] | 55 | [4] | |
Equity securities total [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
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Investments at fair value | 0 | 0 | |||
Equity securities held within common collective trusts, international [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 42 | 55 | |||
Equity securities held within common collective trusts, international [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
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Investments at fair value | 0 | [3] | 0 | [4] | |
Equity securities held within common collective trusts, international [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
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Investments at fair value | 42 | [3] | 55 | [4] | |
Equity securities held within common collective trusts, international [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
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Investments at fair value | 0 | 0 | |||
Equity securities, domestic [Member] | |||||
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Investments at fair value | 356 | 326 | |||
Equity securities, domestic [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
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Investments at fair value | 356 | [3] | 326 | [4] | |
Equity securities, domestic [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
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Investments at fair value | 0 | [3] | 0 | [4] | |
Equity securities, domestic [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
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Investments at fair value | 0 | 0 | |||
Equity securities, international [Member] | |||||
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Investments at fair value | 154 | 146 | |||
Equity securities, international [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
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Investments at fair value | 154 | [3] | 146 | [4] | |
Equity securities, international [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
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Investments at fair value | 0 | [3] | 0 | [4] | |
Equity securities, international [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 0 | 0 | |||
Fixed income total [Member] | |||||
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Investments at fair value | 3,394 | 2,851 | |||
Investment liabilities at fair value | (645) | (651) | |||
Total investment liabilities at fair value | (651) | ||||
Fixed income total [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 0 | [3] | 0 | [4] | |
Investment liabilities at fair value | (10) | [3] | (7) | [4] | |
Fixed income total [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 3,384 | [3] | 2,841 | [4] | |
Investment liabilities at fair value | (635) | [3] | (644) | [4] | |
Fixed income total [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
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Investments at fair value | 10 | 10 | |||
Investment liabilities at fair value | 0 | 0 | |||
Debt securities held within common collective trusts [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 325 | 897 | |||
Debt securities held within common collective trusts [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 0 | [3] | 0 | [4] | |
Debt securities held within common collective trusts [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
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Investments at fair value | 325 | [3] | 897 | [4] | |
Debt securities held within common collective trusts [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
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Investments at fair value | 0 | 0 | |||
Corporate bonds [Member] | |||||
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Investments at fair value | 1,837 | 989 | |||
Corporate bonds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 0 | [3] | 0 | [4] | |
Corporate bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
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Investments at fair value | 1,833 | [3] | 985 | [4] | |
Corporate bonds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 4 | 4 | |||
Swaps [Member] | |||||
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Investments at fair value | 630 | 647 | |||
Investment liabilities at fair value | (625) | (642) | |||
Swaps [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 0 | [3] | 0 | [4] | |
Investment liabilities at fair value | 0 | [3] | 0 | [4] | |
Swaps [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
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Investments at fair value | 630 | [3] | 647 | [4] | |
Investment liabilities at fair value | (625) | [3] | (642) | [4] | |
Swaps [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 0 | 0 | |||
Investment liabilities at fair value | 0 | 0 | |||
Asset-backed Securities [Member] | |||||
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Investments at fair value | 15 | 5 | |||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 0 | [3] | 0 | [4] | |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 15 | [3] | 5 | [4] | |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 0 | 0 | |||
Government securities [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 441 | 200 | |||
Government securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 0 | [3] | 0 | [4] | |
Government securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 441 | [3] | 200 | [4] | |
Government securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 0 | 0 | |||
Other fixed income [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 146 | 113 | |||
Investment liabilities at fair value | (20) | (9) | |||
Other fixed income [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 0 | [3] | 0 | [4] | |
Investment liabilities at fair value | (10) | [3] | (7) | [4] | |
Other fixed income [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 140 | [3] | 107 | [4] | |
Investment liabilities at fair value | (10) | [3] | (2) | [4] | |
Other fixed income [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
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Investments at fair value | 6 | 6 | |||
Investment liabilities at fair value | 0 | 0 | |||
Real estate total [Member] | |||||
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Investments at fair value | 48 | 41 | |||
Real estate total [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 48 | [3] | 41 | [4] | |
Real estate total [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 0 | [3] | 0 | [4] | |
Real estate total [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 0 | 0 | |||
Public REITs [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 48 | 41 | |||
Public REITs [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 48 | [3] | 41 | [4] | |
Public REITs [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 0 | [3] | 0 | [4] | |
Public REITs [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investments at fair value | 0 | 0 | |||
Investments at NAV Private Equity [Member] | |||||
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Defined Benefit Plans Fair Value Total Investments at NAV | (123) | [1] | 164 | [2] | |
Investments at NAV Private Real Estate [Member] | |||||
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Defined Benefit Plans Fair Value Total Investments at NAV | 51 | [1] | 55 | [2] | |
Investments at NAV Hedge Funds [Member] | |||||
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Defined Benefit Plans Fair Value Total Investments at NAV | $ 72 | [1] | $ 133 | [2] | |
[1] | Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheet. | ||||
[2] | Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheet. | ||||
[3] | There were no significant transfers in or out of level 1 or 2 investments. | ||||
[4] | There were no significant transfers in or out of level 1 or 2 investments. |
Retirement Benefit Plans (Level
Retirement Benefit Plans (Level 3 Investment Assets) (Details) $ in Millions | 12 Months Ended | |
Feb. 01, 2020USD ($)manager | Feb. 02, 2019USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Number of hedge fund managers (more than) | manager | 30 | |
Corporate bonds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of year | $ 4 | $ 10 |
Purchases and issuances | 0 | 0 |
Sales, maturities and settlements | 0 | (6) |
Balance, end of year | 4 | 4 |
Corporate loans [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of year | 6 | 4 |
Purchases and issuances | 0 | 3 |
Sales, maturities and settlements | 0 | (1) |
Balance, end of year | $ 6 | $ 6 |
Retirement Benefits Plans (Esti
Retirement Benefits Plans (Estimated Future Benefit Payments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Primary and Supplemental Pension Plans Total [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | $ 7 | $ 7 | $ 7 |
Pension | (7) | (33) | 140 |
Defined Benefit Plan, Service Cost | 28 | 38 | 42 |
Defined Benefit Plan, Interest Cost | (131) | (141) | (150) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 8 | 7 | $ 13 |
Pension Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Service Cost | 28 | 37 | |
Defined Benefit Plan, Interest Cost | (125) | (133) | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |||
2019 | 237 | ||
2020 | 236 | ||
2021 | 235 | ||
2022 | 229 | ||
2023 | 227 | ||
2024-2028 | 1,067 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 13 | ||
Supplemental Employee Retirement Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Service Cost | 0 | 1 | |
Defined Benefit Plan, Interest Cost | (6) | $ (8) | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |||
2019 | 27 | ||
2020 | 22 | ||
2021 | 9 | ||
2022 | 8 | ||
2023 | 8 | ||
2024-2028 | $ 38 |
Retirement Benefit Plans (Defin
Retirement Benefit Plans (Defined Contribution Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Defined contribution plan, vesting period for matching contributions | 3 years | ||
Defined Contribution Plan, Cost | $ 43 | $ 43 | $ 46 |
Savings, Profit-Sharing and Stock Ownership Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Defined contribution plan, required age for employee eligibility | 21 years | ||
Defined contribution plan, employer's matching contribution, percent of employees' contribution subject to plan | 50.00% | ||
Defined contribution plan, employee contribution subject to plan, percent of employees' gross pay | 6.00% | ||
Savings Plan - Noncontributory Retirement Account [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Defined contribution plan, service hours required for matching contributions | 1000 hours |
Restructuring and Management _3
Restructuring and Management Transition Restructuring and Management Transition Summary (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
May 04, 2019USD ($)stores | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | Apr. 29, 2017stores | |
Restructuring Cost and Reserve [Line Items] | |||||
Number of full-line stores finalized plans to close | stores | 18 | ||||
Number of ancillary stores finalized plans to close | stores | 9 | ||||
Restructuring and management transition charges | $ 48 | $ 22 | $ 184 | ||
Cumulative charges incurred to date | 984 | ||||
Asset impairments | $ 14 | $ 0 | 52 | 0 | |
Number of Stores | 6 | ||||
Severance Costs | $ 1 | 14 | |||
Home Office And Stores [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of full-line stores finalized plans to close | stores | 138 | ||||
Restructuring and management transition charges | 52 | ||||
Asset impairments | $ 5 | 77 | |||
Home Office And Stores [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and management transition charges | 43 | 13 | 176 | ||
Cumulative charges incurred to date | 529 | ||||
Management Transition [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and management transition charges | 5 | 9 | 0 | ||
Cumulative charges incurred to date | 269 | ||||
Other [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and management transition charges | 0 | $ 0 | $ 8 | ||
Cumulative charges incurred to date | $ 186 |
Restructuring and Management _4
Restructuring and Management Transition Cumulative Charges (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Home Office And Stores [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | $ 19 | $ 16 |
Restructuring Reserve [Roll Forward] | ||
Restructuring and management transition liability, beginning balance | 16 | 34 |
Cash payments | (16) | (34) |
Restructuring and management transition liability, ending balance | 6 | 16 |
Management Transition [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 5 | 9 |
Restructuring Reserve [Roll Forward] | ||
Restructuring and management transition liability, beginning balance | 0 | 0 |
Cash payments | (3) | (9) |
Restructuring and management transition liability, ending balance | 2 | 0 |
Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 1 | 0 |
Restructuring Reserve [Roll Forward] | ||
Restructuring and management transition liability, beginning balance | 2 | 7 |
Cash payments | (2) | (5) |
Restructuring and management transition liability, ending balance | 0 | 2 |
Total [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 25 | 25 |
Restructuring Reserve [Roll Forward] | ||
Restructuring and management transition liability, beginning balance | 18 | 41 |
Cash payments | (21) | (48) |
Restructuring and management transition liability, ending balance | 8 | $ 18 |
Total [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Translation and Other Adjustment | (14) | |
Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Translation and Other Adjustment | (1) | |
Management Transition [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Translation and Other Adjustment | 0 | |
Home Office And Stores [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Translation and Other Adjustment | $ (13) |
Real Estate and Other, Net (Det
Real Estate and Other, Net (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
May 04, 2019USD ($) | Aug. 04, 2018USD ($) | Nov. 03, 2018USD ($) | Feb. 01, 2020USD ($)department_store | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | May 03, 2014a | |
Real Estate Properties [Line Items] | |||||||
Fair value of third airplane sold | $ 8 | ||||||
Net gain on sale of non-operating assets | $ (1) | $ 0 | $ 0 | ||||
Investment income from Home Office Land Joint Venture | 0 | (4) | (31) | ||||
Net gain from sale of operating assets | 8 | 67 | 119 | ||||
Impairments | $ 14 | 0 | 52 | 0 | |||
Fair value of two airplanes sold | $ 12 | ||||||
Other | (6) | 0 | 4 | ||||
Total expense/(income) | (15) | (19) | (146) | ||||
Area of Land | a | 220 | ||||||
Payments for (Proceeds from) Investments | $ (1) | 0 | 0 | ||||
Number of stores | department_store | 846 | ||||||
Proceeds from Equity Method Investment, Distribution | 4 | 40 | |||||
Net sale price of Milwaukee WI distribution facility | 30 | ||||||
Net sale price of Manchester CT distribution facility | 68 | ||||||
Net gain on sale of Milwaukee WI distribution facility | 12 | ||||||
Net gain on sale of Manchester CT distribution facility | $ 38 | ||||||
Net sale price of Buena Park CA distribution facility | 131 | ||||||
Net gain on sale of Buena Park CA distribution facility | $ 111 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax (Benefits)/Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate reconciliation, U. S. Tax Cuts and Jobs Act of 2017, Amount | $ 0 | $ 0 | $ (75) |
Federal and foreign, Current | 4 | (5) | (60) |
State and local, Current | 6 | 1 | 1 |
Total, Current | 10 | (4) | (59) |
Federal and foreign, Deferred | (6) | (17) | (63) |
State and local, Deferred | (1) | 5 | (4) |
Total, Deferred | (7) | (12) | (67) |
Total income tax expense/(benefit) | $ 3 | $ (16) | $ (126) |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the Statutory Federal Income Tax Rate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax at statutory rate | $ (56) | $ (57) | $ (82) |
State and local income tax, less federal income tax benefit | (12) | (17) | (12) |
Increase/(decrease) in valuation allowance | 61 | 47 | 33 |
Effect of U.S. tax reform | 0 | 0 | (75) |
Other, including permanent differences and credits | 10 | 11 | 10 |
Total income tax expense/(benefit) | $ (3) | $ 16 | $ 126 |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets/(Liabilities)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||
Merchandise inventory | $ 7 | $ 4 | |
Accrued vacation pay | 8 | 8 | |
Gift cards | 36 | 35 | |
Stock-based compensation | 18 | 19 | |
State taxes | 1 | 3 | |
Workers’ compensation/general liability | 38 | 41 | |
Accrued rent | 0 | 27 | |
Litigation exposure | 1 | 2 | |
Interest expense limitation | 83 | 48 | |
Mirror savings plan | 7 | 7 | |
Pension and other retiree obligations | 4 | 1 | |
Deferred tax asset, Operating lease liabilities | 299 | 0 | |
Net operating loss and tax credit carryforwards | 710 | 707 | |
Other | 56 | 52 | |
Total deferred tax assets | 1,268 | 954 | |
Valuation allowance | (869) | (802) | |
Total net deferred tax assets | 399 | 152 | |
Depreciation and amortization | (193) | (223) | |
Tax benefit transfers | (26) | (29) | |
Long-lived intangible assets | (36) | (31) | |
Total deferred tax liabilities | (515) | (283) | |
Total net deferred tax liabilities | $ (116) | (131) | |
Operating Loss Carryforwards, Expiration Dates | The Company has federal net operating loss (NOL) carryforwards of $2.1 billion and $76 million of federal tax credit carryforwards as of February 1, 2020 that expire in 2032 through 2034. These NOL carryforwards arose prior to December 31, 2017 and are available to offset future taxable income. The Company may recognize additional NOLs in the future which, under the Tax Act, would not expire but would only be available to offset up to 80% of the Company’s future taxable income. | ||
Interest Limitation | Interest Limitation: The Tax Act limits the Company’s interest deduction to 30% of tax earnings before interest, tax, depreciation and amortization beginning in 2018 through 2021. Thereafter, the interest deduction is limited to 30% of tax earnings before interest and taxes. Any disallowed interest in a year becomes a separate deferred tax asset with an indefinite carryforward period that can be utilized by the Company in a future tax year by an amount equal to its interest limitation in excess of its interest expense for that year. | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 2 | 1 | $ 1 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 33 | ||
Deferred tax liability, Operating lease assets | $ (260) | $ 0 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets/Liabilities in Consolidated Balance Sheets) (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 |
Income Tax Contingency [Line Items] | ||||
Deferred tax liability, Operating lease assets | $ (260) | $ 0 | ||
Total net deferred tax liabilities | (116) | (131) | ||
Deferred taxes (current assets) | 35 | 32 | ||
Accounts payable and accrued expenses (Note 8) | 0 | 2 | ||
Other liabilities (Note 9) | 1 | 1 | ||
Total | $ 36 | $ 35 | $ 35 | $ 79 |
Income Taxes (Reconciliation _2
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 2 | $ 1 | $ 1 |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | 35 | 35 | 79 |
Additions for tax positions of prior years | 2 | 3 | 4 |
Reductions for tax positions of prior years | 0 | (1) | (45) |
Settlements and effective settlements with tax authorities | (1) | (2) | (3) |
Balance at end of year | $ 36 | $ 35 | $ 35 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | Jan. 27, 2014 | Feb. 02, 2019 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Operating Loss Carryforwards [Line Items] | |||||
Net tax benefit recorded in connection with U. S. Tax Cuts and Jobs Act | $ 75 | ||||
Document Period End Date | Feb. 1, 2020 | ||||
Valuation allowance | 802 | $ 869 | $ 802 | ||
Net tax expense (benefit) | 3 | (16) | $ (126) | ||
Federal unused interest deductions that do not expire subject to interest limitation | 341 | ||||
Operating loss carryforwards and tax credits, potential offset to future ordinary taxable income | 710 | ||||
Amended rights agreement, stockholder ownership percentage, maximum | 4.90% | ||||
Amended rights agreement, Minimum stock ownership percentage by which stockholders are prevented from acquiring additional shares | 4.90% | ||||
Amount of unrecognized tax benefits that would impact effective tax rate if recognized | 33 | ||||
Benefit of federal tax deduction of state taxes | 7 | 7 | 7 | ||
Accrued interest and penalties for unrecognized tax benefits | $ 1 | 2 | $ 1 | $ 1 | |
Interest expense disallowed | 119 | ||||
Deferred Tax Assets, Interest Expense Limitation on Which a Full Valuation Allowance Was Recorded | 35 | ||||
Federal [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforward | 2,100 | ||||
Tax credit carryforwards | $ 76 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Supplemental cash flow information | |||
Income taxes received/(paid), net | $ (9) | $ (8) | $ (9) |
Interest received/(paid), net | (279) | (293) | (302) |
Supplemental non-cash investing and financing activity | |||
Increase/(decrease) in other accounts payable related to purchases of property and equipment and software | (27) | (15) | 25 |
Purchase of property and equipment and software through a financing obligation | (1) | 0 | 0 |
Remeasurement of leased assets and lease obligations | $ 94 | $ 0 | $ 0 |
Litigation, Other Contingenci_2
Litigation, Other Contingencies and Guarantees (Narrative) (Details) $ in Millions | Feb. 01, 2020USD ($) |
Loss Contingencies [Line Items] | |
Recorded Best Estimate | $ 19 |
Subsequent Events (Details)
Subsequent Events (Details) | Mar. 19, 2020 | Mar. 20, 2020 |
Subsequent Event [Line Items] | ||
Subsequent Event, Description | On March 16 and March 19, 2020, the Company borrowed $800 million and $450 million, respectively, from the Revolving Facility (see Note 12) as a precautionary measure to increase its cash position and preserve financial flexibility considering uncertainty in the U.S. and global markets resulting from COVID-19. Borrowings under the Revolving Facility will bear interest, at the Company’s option, at a base rate or LIBOR, plus an applicable interest rate margin varying depending on the Company’s utilization of the Revolving Facility. The current rates on the borrowings will range from 2.75% to 4.0%. The proceeds from the Revolving Facility draw may be used for working capital needs or general corporate purposes. | During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (COVID-19). The pandemic has significantly impacted the economic conditions in the U.S., accelerating during the first half of March, as federal, state and local governments react to the public health crisis, creating significant uncertainties in the U.S. economy. The Company has announced that all stores will close through April 1, 2020. As a result of these developments, the Company expects a material adverse impact on its sales, results of operations and cash flows. This situation is rapidly changing and additional impacts to the business may arise that we are not aware of currently. While the disruption is currently expected to be temporary, there is uncertainty around the duration. The ultimate impact of the pandemic on the Company’s results of operations, financial position, liquidity or capital resources cannot be reasonably estimated at this time. |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Total net sales | $ 3,384 | $ 2,384 | $ 2,509 | $ 2,439 | $ 3,665 | $ 2,653 | $ 2,762 | $ 2,584 | $ 10,716 | $ 11,664 | $ 12,554 | ||||||||
Credit income and other | 109 | 116 | 110 | 116 | 121 | 80 | 67 | 87 | 451 | 355 | 319 | ||||||||
Total revenues | 3,493 | 2,500 | 2,619 | 2,555 | 3,786 | 2,733 | 2,829 | 2,671 | 11,167 | 12,019 | 12,873 | ||||||||
Cost of goods sold (exclusive of depreciation and amortization shown separately below) | 2,257 | 1,541 | 1,585 | 1,630 | 2,519 | 1,808 | 1,831 | 1,712 | 7,013 | 7,870 | 8,208 | ||||||||
SG&A expenses | 1,005 | 854 | 870 | 856 | 1,007 | 883 | 880 | 826 | 3,585 | 3,596 | 3,845 | ||||||||
Restructuring and management transition | 12 | [1] | 9 | [1] | 7 | [1] | 20 | [1] | 2 | [2] | 11 | [2] | 2 | [2] | 7 | [2] | $ 48 | $ 22 | $ 184 |
Net income/(loss) | $ 27 | $ (93) | $ (48) | $ (154) | $ 75 | $ (151) | $ (101) | $ (78) | |||||||||||
Diluted earnings/(loss) per share (2) | $ 0.08 | [3] | $ (0.29) | [3] | $ (0.15) | [3] | $ (0.48) | [3] | $ 0.24 | [3] | $ (0.48) | [3] | $ (0.32) | [3] | $ (0.25) | [3] | $ (0.84) | $ (0.81) | $ (0.38) |
Home Office And Stores [Member] | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Restructuring and management transition | $ 12 | $ 8 | $ 4 | $ 19 | $ 2 | $ 2 | $ 2 | $ 7 | |||||||||||
Management Transition [Member] | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Restructuring and management transition | $ 0 | $ 1 | $ 3 | $ 1 | $ 0 | $ 9 | $ 0 | $ 0 | |||||||||||
[1] | Restructuring and management transition charges (Note 18) by quarter for 2019 consisted of the following: ($ in million) First Quarter Second Quarter Third Quarter Fourth Quarter Home office and stores $ 19 $ 4 $ 8 $ 12 Management transition 1 3 1 — Total $ 20 $ 7 $ 9 $ 12 | ||||||||||||||||||
[2] | Restructuring and management transition charges (Note 18) by quarter for 2018 consisted of the following: ($ in millions) First Quarter Second Quarter Third Quarter Fourth Quarter Home office and stores $ 7 $ 2 $ 2 $ 2 Management transition — — 9 — Total $ 7 $ 2 $ 11 $ 2 | ||||||||||||||||||
[3] | EPS is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in average quarterly shares outstanding |