Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Jan. 30, 2016 | Mar. 11, 2016 | Aug. 01, 2015 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 30, 2016 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | LB | ||
Entity Registrant Name | L Brands, Inc. | ||
Entity Central Index Key | 701,985 | ||
Current Fiscal Year End Date | --01-30 | ||
Entity Common Stock, Shares Outstanding | 287,080,045 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 19,909,393,868 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |||||||||||
Net Sales | $ 4,395 | $ 2,482 | $ 2,765 | $ 2,512 | $ 4,069 | $ 2,319 | $ 2,675 | $ 2,391 | $ 12,154 | $ 11,454 | $ 10,773 | ||||||||||
Costs of Goods Sold, Buying and Occupancy | 6,950 | 6,646 | 6,344 | ||||||||||||||||||
Gross Profit | 2,002 | 1,031 | 1,114 | 1,056 | 1,835 | 947 | 1,044 | 982 | 5,204 | 4,808 | 4,429 | ||||||||||
General, Administrative and Store Operating Expenses | 3,012 | 2,855 | 2,686 | ||||||||||||||||||
Operating Income | 1,078 | 339 | 403 | 372 | 957 | 284 | 376 | 336 | 2,192 | 1,953 | [1] | 1,743 | [1] | ||||||||
Interest Expense | 334 | 324 | 314 | ||||||||||||||||||
Other Income | 76 | 7 | 17 | ||||||||||||||||||
Income Before Income Taxes | 982 | 260 | 323 | 369 | 880 | 205 | 296 | 255 | 1,934 | 1,636 | 1,446 | ||||||||||
Provision for Income Taxes | 681 | 594 | 543 | ||||||||||||||||||
Net Income | $ 636 | $ 164 | $ 202 | $ 250 | $ 565 | $ 132 | $ 188 | $ 157 | $ 1,253 | $ 1,042 | $ 903 | ||||||||||
Net Income Per Basic Share | $ 2.19 | [2] | $ 0.56 | [2] | $ 0.69 | [2] | $ 0.86 | [2] | $ 1.93 | [3] | $ 0.45 | [3] | $ 0.65 | [3] | $ 0.54 | [3] | $ 4.30 | $ 3.57 | $ 3.12 | ||
Net Income Per Diluted Share | $ 2.15 | [2] | $ 0.55 | [2] | $ 0.68 | [2] | $ 0.84 | [2] | $ 1.89 | [3] | $ 0.44 | [3] | $ 0.63 | [3] | $ 0.53 | [3] | $ 4.22 | $ 3.50 | $ 3.05 | ||
[1] | Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. | ||||||||||||||||||||
[2] | Includes the effect of a pre-tax gain of $78 million ($69 million net of tax) included in other income, related to the sale of our remaining interest in the third-party apparel sourcing business. | ||||||||||||||||||||
[3] | Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. |
Consoldiated Statements of Comp
Consoldiated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Net Income | $ 636 | $ 164 | $ 202 | $ 250 | $ 565 | $ 132 | $ 188 | $ 157 | $ 1,253 | $ 1,042 | $ 903 |
Other Comprehensive Income (Loss), Net of Tax | |||||||||||
Reclassification of Cash Flow Hedges to Earnings | 14 | (60) | (50) | ||||||||
Foreign Currency Translation | (23) | 21 | 40 | ||||||||
Unrealized Gain on Cash Flow Hedges | 6 | 34 | 46 | ||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 8 | 0 | 0 | ||||||||
Total Other Comprehensive Income (Loss), Net of Tax | 5 | (5) | 36 | ||||||||
Total Comprehensive Income | $ 1,258 | $ 1,037 | $ 939 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Current Assets: | ||
Cash and Cash Equivalents | $ 2,548 | $ 1,681 |
Accounts Receivable, Net | 261 | 252 |
Inventories | 1,122 | 1,036 |
Other | 225 | 230 |
Total Current Assets | 4,156 | 3,199 |
Property and Equipment, Net | 2,330 | 2,277 |
Goodwill | 1,318 | 1,318 |
Trade Names and Other Intangible Assets, Net | 411 | 411 |
Deferred Tax Assets, Net, Noncurrent | 30 | 24 |
Other Assets | 248 | 247 |
Total Assets | 8,493 | 7,476 |
Current Liabilities: | ||
Accounts Payable | 668 | 613 |
Accrued Expenses and Other | 977 | 900 |
Current Portion of Long-term Debt | 6 | 0 |
Income Taxes | 224 | 166 |
Total Current Liabilities | 1,875 | 1,679 |
Deferred Income Taxes | 257 | 236 |
Long-term Debt | 5,715 | 4,722 |
Other Long-term Liabilities | 904 | 820 |
Shareholders' Equity (Deficit): | ||
Preferred Stock—$1.00 par value; 10 shares authorized; none issued | 0 | 0 |
Common Stock—$0.50 par value; 1,000 shares authorized; 313 and 310 shares issued; 290 and 292 shares outstanding, respectively | 156 | 155 |
Paid-in Capital | 545 | 427 |
Accumulated Other Comprehensive Income | 40 | 35 |
Retained Earnings | 315 | 233 |
Less: Treasury Stock, at Average Cost; 23 and 18 shares, respectively | (1,315) | (832) |
Total L Brands, Inc. Shareholders’ Equity (Deficit) | (259) | 18 |
Noncontrolling Interest | 1 | 1 |
Total Equity (Deficit) | (258) | 19 |
Total Liabilities and Equity (Deficit) | $ 8,493 | $ 7,476 |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 30, 2016 | Jan. 31, 2015 |
Preferred Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.5 | $ 0.5 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Issued | 313,000,000 | 310,000,000 |
Common Stock, Shares, Outstanding | 290,000,000 | 292,000,000 |
Treasury Stock, Shares | 23,000,000 | 18,000,000 |
Consolidated Statements of Tota
Consolidated Statements of Total Equity (Deficit) - USD ($) shares in Thousands, $ in Millions | Total | Common Stock [Member] | Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) [Member] | Treasury Stock, at Average Cost [Member] | Noncontrolling Interest [Member] |
Ending Balance (in shares) | 289,000 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 1.20 | ||||||
Beginning Balance at Feb. 02, 2013 | $ (1,014) | $ 152 | $ 186 | $ 4 | $ (672) | $ (685) | $ 1 |
Net Income | 903 | 0 | 0 | 0 | 903 | 0 | 0 |
Other Comprehensive Income (Loss) | 36 | 0 | 0 | 36 | 0 | 0 | 0 |
Total Comprehensive Income (Loss) | 939 | 0 | 0 | 36 | 903 | 0 | 0 |
Dividends, Common Stock, Cash | $ (349) | $ 0 | 0 | 0 | (349) | 0 | 0 |
Treasury Stock, Shares, Acquired | 1,377 | 1,000 | |||||
Repurchase of Common Stock | $ (63) | $ 0 | 0 | 0 | 0 | (63) | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 3,000 | ||||||
Exercise of Stock Options and Other | 118 | $ 2 | 116 | 0 | 0 | 0 | 0 |
Ending Balance at Feb. 01, 2014 | $ (369) | $ 154 | 302 | 40 | (118) | (748) | 1 |
Ending Balance (in shares) | 291,000 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 2.36 | ||||||
Net Income | $ 1,042 | $ 0 | 0 | 0 | 1,042 | 0 | 0 |
Other Comprehensive Income (Loss) | (5) | 0 | 0 | (5) | 0 | 0 | 0 |
Total Comprehensive Income (Loss) | 1,037 | 0 | 0 | (5) | 1,042 | 0 | 0 |
Dividends, Common Stock, Cash | $ (691) | $ 0 | 0 | 0 | (691) | 0 | 0 |
Treasury Stock, Shares, Acquired | 1,317 | 1,000 | |||||
Repurchase of Common Stock | $ (84) | $ 0 | 0 | 0 | 0 | (84) | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 2,000 | ||||||
Exercise of Stock Options and Other | 126 | $ 1 | 125 | 0 | 0 | 0 | 0 |
Ending Balance at Jan. 31, 2015 | $ 19 | $ 155 | 427 | 35 | 233 | (832) | 1 |
Ending Balance (in shares) | 292,000 | 292,000 | |||||
Common Stock, Dividends, Per Share, Declared | $ 4 | ||||||
Net Income | $ 1,253 | $ 0 | 0 | 0 | 1,253 | 0 | 0 |
Other Comprehensive Income (Loss) | 5 | 0 | 0 | 5 | 0 | 0 | 0 |
Total Comprehensive Income (Loss) | 1,258 | 0 | 0 | 5 | 1,253 | 0 | 0 |
Dividends, Common Stock, Cash | $ (1,171) | $ 0 | 0 | 0 | (1,171) | 0 | 0 |
Treasury Stock, Shares, Acquired | 5,468 | 5,000 | |||||
Repurchase of Common Stock | $ (483) | $ 0 | 0 | 0 | 0 | (483) | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,060 | 3,000 | |||||
Exercise of Stock Options and Other | $ 119 | $ 1 | 118 | 0 | 0 | 0 | 0 |
Ending Balance at Jan. 30, 2016 | $ (258) | $ 156 | $ 545 | $ 40 | $ 315 | $ (1,315) | $ 1 |
Ending Balance (in shares) | 290,000 | 290,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Operating Activities | |||
Net Income | $ 1,253 | $ 1,042 | $ 903 |
Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: | |||
Depreciation and Amortization of Long-lived Assets | 457 | 438 | 407 |
Amortization of Landlord Allowances | (42) | (40) | (39) |
Deferred Income Taxes | 11 | 50 | 18 |
Share-based Compensation Expense | 97 | 90 | 85 |
Excess Tax Benefits from Share-based Compensation | (70) | (43) | (36) |
Gain on Divestiture of Third-party Apparel Sourcing Business | 78 | 0 | 0 |
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | (2) | 0 | 0 |
Changes in Assets and Liabilities, Net of Assets and Liabilities related to Divestitures: | |||
Accounts Receivable | (10) | (9) | (43) |
Inventories | (92) | 121 | (168) |
Accounts Payable, Accrued Expenses and Other | 49 | 90 | 1 |
Income Taxes Payable | 131 | (17) | 74 |
Other Assets and Liabilities | 161 | 64 | 46 |
Net Cash Provided by (Used for) Operating Activities | 1,869 | 1,786 | 1,248 |
Investing Activities | |||
Capital Expenditures | (727) | (715) | (691) |
Proceeds from Sale of Other Assets, Investing Activities | 196 | 0 | 0 |
Proceeds from Sale of Equity Method Investments | 85 | 0 | 0 |
Proceeds from Sale and Maturity of Marketable Securities | 50 | 0 | 0 |
Payments to Acquire Marketable Securities | (60) | 0 | 0 |
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 0 | 0 | 46 |
Other Investing Activities | 13 | 16 | (10) |
Net Cash Used for Investing Activities | (443) | (699) | (655) |
Financing Activities | |||
Repayments of Long-term Debt | 0 | 213 | 0 |
Proceeds from Issuance of Long-term Debt | 988 | 0 | 495 |
Borrowings from Revolving Facilities | 7 | 5 | 290 |
Repayments on Revolving Facilities | 0 | (5) | (290) |
Repurchase of Common Stock | (483) | (87) | (60) |
Dividends Paid | (1,171) | (691) | (349) |
Excess Tax Benefits from Share-based Compensation | 70 | 43 | 36 |
Proceeds From Exercise of Stock Options and Other | 33 | 35 | 32 |
Proceeds from (Payments for) Other Financing Activities | (2) | (6) | 0 |
Net Cash Provided by (Used for) Financing Activities | (558) | (919) | 154 |
Effects of Exchange Rate Changes on Cash | (1) | (6) | (1) |
Net Increase in Cash and Cash Equivalents | 867 | 162 | 746 |
Cash and Cash Equivalents, Beginning of Year | 1,681 | 1,519 | 773 |
Cash and Cash Equivalents, End of Year | 2,548 | 1,681 | 1,519 |
Third Party Sourcing Business [Member] | |||
Investing Activities | |||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 46 | ||
L Brands, Inc. [Member] | |||
Operating Activities | |||
Net Income | 1,253 | 1,042 | 903 |
Changes in Assets and Liabilities, Net of Assets and Liabilities related to Divestitures: | |||
Net Cash Provided by (Used for) Operating Activities | (322) | (333) | (302) |
Investing Activities | |||
Capital Expenditures | 0 | 0 | 0 |
Proceeds from Sale of Other Assets, Investing Activities | 0 | ||
Proceeds from Sale of Equity Method Investments | 0 | ||
Proceeds from Sale and Maturity of Marketable Securities | 0 | ||
Payments to Acquire Marketable Securities | 0 | ||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 0 | ||
Other Investing Activities | 0 | 0 | 0 |
Net Cash Used for Investing Activities | 0 | 0 | 0 |
Financing Activities | |||
Repayments of Long-term Debt | 213 | ||
Proceeds from Issuance of Long-term Debt | 988 | 495 | |
Borrowings from Revolving Facilities | 0 | 0 | 290 |
Repayments on Revolving Facilities | 0 | (290) | |
Repurchase of Common Stock | (483) | (87) | (60) |
Dividends Paid | (1,171) | (691) | (349) |
Excess Tax Benefits from Share-based Compensation | 0 | 0 | 0 |
Proceeds From Exercise of Stock Options and Other | 33 | 35 | 32 |
Proceeds from (Payments for) Other Financing Activities | 0 | 6 | |
Net Cash Provided by (Used for) Financing Activities | 322 | 333 | 302 |
Effects of Exchange Rate Changes on Cash | 0 | 0 | 0 |
Net Increase in Cash and Cash Equivalents | 0 | 0 | 0 |
Cash and Cash Equivalents, Beginning of Year | 0 | 0 | 0 |
Cash and Cash Equivalents, End of Year | $ 0 | $ 0 | $ 0 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 30, 2016 | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business L Brands, Inc. (“the Company”) operates in the highly competitive specialty retail business. The Company is a specialty retailer of women’s intimate and other apparel, beauty and personal care products and accessories. The Company sells its merchandise through company-owned specialty retail stores in the U.S., Canada and the U.K., which are primarily mall-based, and through its websites and other channels. The Company's other international operations are primarily through franchise, license and wholesale partners. The Company currently operates the following retail brands: • Victoria’s Secret • PINK • Bath & Body Works • La Senza • Henri Bendel Fiscal Year The Company’s fiscal year ends on the Saturday nearest to January 31. As used herein, “ 2015 ”, “ 2014 ” and “ 2013 ” refer to the 52 -week periods ending January 30, 2016 , January 31, 2015 and February 1, 2014 , respectively. Basis of Consolidation The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company accounts for investments in unconsolidated entities where it exercises significant influence, but does not have control, using the equity method. Under the equity method of accounting, the Company recognizes its share of the investee net income or loss. Losses are only recognized to the extent the Company has positive carrying value related to the investee. Carrying values are only reduced below zero if the Company has an obligation to provide funding to the investee. The Company’s share of net income or loss of unconsolidated entities from which the Company purchases merchandise or merchandise components is included in Costs of Goods Sold, Buying and Occupancy on the Consolidated Statements of Income. The Company’s share of net income or loss of all other unconsolidated entities is included in Other Income on the Consolidated Statements of Income. The Company’s equity investments are required to be reviewed for impairment when it is determined there may be an other than temporary loss in value. Third-party Apparel Sourcing Business In the first quarter of 2015, the Company divested its remaining ownership interest in its third-party apparel sourcing business to Sycamore Partners. For additional information, see Note 7 , “Equity Investments and Other.” Cash and Cash Equivalents Cash and Cash Equivalents include cash on hand, demand deposits with financial institutions and highly liquid investments with original maturities of less than 90 days. The Company’s outstanding checks, which totaled $30 million as of January 30, 2016 and $42 million as of January 31, 2015 , are included in Accounts Payable on the Consolidated Balance Sheets. Concentration of Credit Risk The Company maintains cash and cash equivalents and derivative contracts with various major financial institutions. The Company monitors the relative credit standing of financial institutions with whom the Company transacts and limits the amount of credit exposure with any one entity. Currently, the Company’s investment portfolio is primarily comprised of U.S. government obligations, U.S. Treasury and AAA-rated money market funds, highly rated commercial paper and bank deposits. The Company also periodically reviews the relative credit standing of franchise, license and wholesale partners and other entities to which the Company grants credit terms in the normal course of business. The Company records an allowance for uncollectable accounts when it becomes probable that the counterparty will be unable to pay. Marketable Equity Securities In 2015, the Company invested $10 million in marketable equity securities which are classified as available-for-sale. The Company determines the appropriate classification of investments in equity securities at the acquisition date and re-evaluates the classification at each balance sheet date. This investment is recorded at fair value in other current assets on the January 30, 2016 Consolidated Balance Sheet, and unrealized holding gains and losses are recorded, net of tax, as a component of accumulated other comprehensive income. Unrealized holding gains were $12 million as of January 30, 2016 . Inventories Inventories are principally valued at the lower of cost or market, on a weighted-average cost basis. The Company records valuation adjustments to its inventories if the cost of specific inventory items on hand exceeds the amount it expects to realize from the ultimate sale or disposal of the inventory. These estimates are based on management’s judgment regarding future demand and market conditions and analysis of historical experience. The Company also records inventory loss adjustments for estimated physical inventory losses that have occurred since the date of the last physical inventory. These estimates are based on management’s analysis of historical results and operating trends. Advertising Costs Advertising and catalogue costs are expensed at the time the promotion first appears in media, in the store or when the advertising is mailed. Advertising and catalogue costs totaled $414 million for 2015 , $436 million for 2014 and $452 million for 2013 . Property and Equipment The Company’s property and equipment are recorded at cost and depreciation/amortization is computed on a straight-line basis using the following depreciable life ranges: Category of Property and Equipment Depreciable Life Range Software, including software developed for internal use 3 - 7 years Store related assets 3 - 10 years Leasehold improvements Shorter of lease term or 10 years Non-store related building and site improvements 10 - 15 years Other property and equipment 20 years Buildings 30 years When a decision has been made to dispose of property and equipment prior to the end of the previously estimated useful life, depreciation estimates are revised to reflect the use of the asset over the shortened estimated useful life. The Company’s cost of assets sold or retired and the related accumulated depreciation are removed from the accounts with any resulting gain or loss included in net income. Maintenance and repairs are charged to expense as incurred. Major renewals and betterments that extend useful lives are capitalized. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset. Goodwill and Intangible Assets The Company has certain intangible assets resulting from business combinations and acquisitions that are recorded at cost. Intangible assets with finite lives are amortized on a straight-line basis over their respective estimated useful lives. Intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset. Goodwill is reviewed for impairment each year in the fourth quarter and may be reviewed more frequently if certain events occur or circumstances change. First, the Company performs a qualitative assessment to determine whether it is more likely than not that each reporting unit's fair value is less than its carrying value, including goodwill. If the Company determines that it is more likely than not that the fair value of the reporting unit is less than its carrying value, the Company then estimates the fair value of all assets and liabilities of that reporting unit, including the implied fair value of goodwill, through either estimated discounted future cash flows or market-based methodologies. If the carrying value of goodwill exceeds the implied fair value, the Company recognizes an impairment charge equal to the difference. The Company's reporting units are determined in accordance with the provisions of Accounting Standards Codification ("ASC") Topic 350, Intangibles - Goodwill and Other . The Company's reporting units that have goodwill are Victoria's Secret Stores, Victoria's Secret Direct and Bath & Body Works. Intangible assets with indefinite lives are reviewed for impairment each year in the fourth quarter and may be reviewed more frequently if certain events occur or circumstances change. First, the Company performs a qualitative assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. If the Company determines that it is more likely than not that the fair value of the asset is less than its carrying amount, the Company estimates the fair value, usually determined by the estimated discounted future cash flows of the asset, compares that value with its carrying amount and records an impairment charge, if any. If future economic conditions are different than those projected by management, future impairment charges may be required. Leases and Leasehold Improvements The Company has leases that contain predetermined fixed escalations of minimum rentals and/or rent abatements subsequent to taking possession of the leased property. The Company recognizes the related rent expense on a straight-line basis commencing upon the store possession date. The Company records the difference between the recognized rental expense and amounts payable under the leases as deferred lease credits. The Company’s liability for predetermined fixed escalations of minimum rentals and/or rent abatements totaled $150 million as of January 30, 2016 and $142 million as of January 31, 2015 . These liabilities are included in Other Long-term Liabilities on the Consolidated Balance Sheets. The Company receives construction allowances from landlords related to its retail stores. These allowances are generally comprised of cash amounts received by the Company from its landlords as part of the negotiated lease terms. The Company records a receivable and a landlord allowance at the lease commencement date (date of initial possession of the store). The landlord allowance is amortized on a straight-line basis as a reduction of rent expense over the term of the lease (including the pre-opening build-out period), and the receivable is reduced as amounts are received from the landlord. The Company’s unamortized portion of landlord allowances, which totaled $212 million as of January 30, 2016 and $192 million as of January 31, 2015 , is included in Other Long-term Liabilities on the Consolidated Balance Sheets. The Company also has leasehold improvements which are amortized over the shorter of their estimated useful lives or the period from the date the assets are placed in service to the end of the initial lease term. Leasehold improvements made after the inception of the initial lease term are depreciated over the shorter of their estimated useful lives or the remaining lease term, including renewal periods, if reasonably assured. Foreign Currency Translation The functional currency of the Company’s foreign operations is generally the applicable local currency. Assets and liabilities are translated into U.S. dollars using the current exchange rates in effect as of the balance sheet date, while revenues and expenses are translated at the average exchange rates for the period. The Company’s resulting translation adjustments are recorded as a component of Comprehensive Income in the Consolidated Statements of Comprehensive Income and the Consolidated Statements of Total Equity (Deficit). Derivative Financial Instruments The Company uses derivative instruments designated as cash flow hedges or fair value hedges and non-designated derivative instruments to manage exposure to foreign currency exchange rates and interest rates. The Company does not use derivative financial instruments for trading purposes. All derivative financial instruments are recorded on the Consolidated Balance Sheets at fair value. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. For derivative instruments that are designated and qualify as fair value hedges, the changes in the fair value of the derivative instrument have an equal and offsetting impact to the carrying value of the liability on the balance sheet. For derivative instruments that are not designated as hedging instruments, the gain or loss on the derivative instrument is recognized in current earnings. Fair Value The authoritative guidance included in ASC Topic 820, Fair Value Measurements and Disclosure, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. This authoritative guidance further establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1—Quoted market prices in active markets for identical assets or liabilities. • Level 2—Observable inputs other than quoted market prices included in Level 1, such as quoted prices of similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company estimates the fair value of financial instruments, property and equipment and goodwill and intangible assets in accordance with the provisions of ASC Topic 820 . Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, taxes currently payable or refundable are accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are also recognized for realizable operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted income tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in income tax rates is recognized in the Company’s Consolidated Statement of Income in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if it is more likely than not that such assets will not be realized. U.S. deferred income taxes are not provided on undistributed income of foreign subsidiaries where such earnings are considered to be permanently reinvested for the foreseeable future. In determining the Company’s provision for income taxes, the Company considers permanent differences between book and tax income and statutory income tax rates. The Company’s effective income tax rate is affected by items including changes in tax law, the tax jurisdiction of new stores or business ventures and the level of earnings. The Company follows a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. The Company’s income tax returns, like those of most companies, are periodically audited by domestic and foreign tax authorities. These audits include questions regarding the Company’s tax filing positions, including the timing and amount of deductions and the allocation of income among various tax jurisdictions. At any one time, multiple tax years are subject to audit by the various tax authorities. A number of years may elapse before a particular matter for which the Company has established an accrual is audited and fully resolved or clarified. The Company adjusts its tax contingencies accrual and income tax provision in the period in which matters are effectively settled with tax authorities at amounts different from its established accrual, when the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. The Company includes its tax contingencies accrual, including accrued penalties and interest, in Other Long-term Liabilities on the Consolidated Balance Sheets unless the liability is expected to be paid within one year. Changes to the tax contingencies accrual, including accrued penalties and interest, are included in Provision for Income Taxes on the Consolidated Statements of Income. Self Insurance The Company is self-insured for medical, workers’ compensation, property, general liability and automobile liability up to certain stop-loss limits. Such costs are accrued based on known claims and an estimate of incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information and actuarial estimates. Noncontrolling Interest Noncontrolling interest represents the portion of equity interests of consolidated affiliates not owned by the Company. Share-based Compensation The Company recognizes all share-based payments to employees and directors as compensation cost over the service period based on their estimated fair value on the date of grant. Compensation cost is recognized over the service period for the fair value of awards that actually vest. Compensation expense for awards without a performance condition is recognized, net of estimated forfeitures, using a single award approach (each award is valued as one grant, irrespective of the number of vesting tranches). Compensation expense for awards with a performance condition is recognized, net of estimated forfeitures, using a multiple award approach (each vesting tranche is valued as one grant). Revenue Recognition The Company recognizes sales upon customer receipt of the merchandise, which for direct response revenues reflects an estimate of shipments that have not yet been received by the customer based on shipping terms and estimated delivery times. The Company’s shipping and handling revenues are included in Net Sales with the related costs included in Costs of Goods Sold, Buying and Occupancy on the Consolidated Statements of Income. The Company also provides a reserve for projected merchandise returns based on prior experience. Net Sales exclude sales tax collected from customers. The Company’s brands sell gift cards with no expiration dates to customers. The Company does not charge administrative fees on unused gift cards. The Company recognizes income from gift cards when they are redeemed by the customer. In addition, the Company recognizes income on unredeemed gift cards when it can determine that the likelihood of the gift card being redeemed is remote and that there is no legal obligation to remit the unredeemed gift cards to relevant jurisdictions (gift card breakage). The Company determines the gift card breakage rate based on historical redemption patterns. Gift card breakage is included in Net Sales in the Consolidated Statements of Income. The Company also recognize revenues associated with franchise, license and wholesale arrangements. Revenue recognized under franchise and license arrangements generally consists of royalties earned and recognized upon sale of merchandise by franchise and license partners to retail customers. Revenue is generally recognized under wholesale arrangements at the time the title passes to the partner. The Company recognizes revenue associated with merchandise sourcing and production services provided to third parties. Revenue is recognized at the time the title passes to the customer. Costs of Goods Sold, Buying and Occupancy The Company’s costs of goods sold include merchandise costs, net of discounts and allowances, freight and inventory shrinkage. The Company’s buying and occupancy expenses primarily include payroll, benefit costs and operating expenses for its buying departments and distribution network, rent, common area maintenance, real estate taxes, utilities, maintenance, fulfillment expenses and depreciation for the Company’s stores, warehouse facilities and equipment. General, Administrative and Store Operating Expenses The Company’s general, administrative and store operating expenses primarily include payroll and benefit costs for its store-selling and administrative departments (including corporate functions), marketing, advertising and other operating expenses not specifically categorized elsewhere in the Consolidated Statements of Income. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. Actual results may differ from those estimates, and the Company revises its estimates and assumptions as new information becomes available. |
New Accounting Pronouncements (
New Accounting Pronouncements (Notes) | 12 Months Ended |
Jan. 30, 2016 | |
New Accounting Pronouncements Text Block [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | New Accounting Pronouncements Revenue Recognition from Contracts with Customers In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers . This guidance requires companies to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This guidance will be effective beginning in fiscal 2018, with early adoption as of fiscal 2017 permitted. The standard allows for either a full retrospective or a modified retrospective transition method. The Company is currently evaluating this standard, including the transition method and timing of adoption, and the related impact on its Consolidated Statements of Income and Comprehensive Income, Balance Sheets and Statements of Cash Flows. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases . This guidance requires companies classified as lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to today’s accounting. The new standard also will result in enhanced quantitative and qualitative disclosures, including significant judgments made by management, to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing leases. The standard requires modified retrospective adoption and will be effective beginning in fiscal 2019, with early adoption permitted. The Company is currently evaluating this standard, including the timing of adoption, and the related impact on its Consolidated Statements of Income and Comprehensive Income, Balance Sheets and Statements of Cash Flows. Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. This guidance requires companies to recognize debt issuance costs related to recognized debt liabilities in the balance sheet as a direct deduction from the carrying amount of those debt liabilities, consistent with debt discounts. This guidance will be effective beginning in fiscal 2016, and early adoption is permitted. The Company elected to early adopt this standard effective January 30, 2016 . Upon adoption, prior period financial statements were recast as required by the standard to present debt issuance costs as a direct deduction from the carrying amount of the related debt liabilities consistent with the retrospective application required by the standard. The impact of the adoption of this standard is a decrease to Other Assets and Long-term Debt on the Consolidated Balance Sheets of $47 million as of January 30, 2016 and $43 million as of January 31, 2015 . Balance Sheet Classification of Deferred Taxes In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. This guidance requires companies to present all deferred tax assets and liabilities as noncurrent in the balance sheet. This guidance will be effective beginning in fiscal 2017, and early adoption is permitted. The Company elected to early adopt this standard effective January 30, 2016 using the retrospective application transition method as allowed by the standard. Upon adoption, prior period financial statements were recast to present all deferred tax asset and liabilities as noncurrent on the balance sheet. The impact of the adoption of this standard is a decrease in current deferred income tax assets on the Consolidated Balance Sheets of approximately $35 million as of January 30, 2016 and $33 million as of January 31, 2015 ; an increase in noncurrent deferred income tax assets of $8 million as of January 30, 2016 and January 31, 2015 ; and a decrease to noncurrent deferred income tax liabilities of $27 million as of January 30, 2016 and $25 million as of January 31, 2015 . |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Earnings per basic share are computed based on the weighted-average number of outstanding common shares. Earnings per diluted share include the weighted-average effect of dilutive options and restricted stock on the weighted-average shares outstanding. The following table provides shares utilized for the calculation of basic and diluted earnings per share for 2015 , 2014 and 2013 : 2015 2014 2013 (in millions) Weighted-average Common Shares: Issued Shares 312 309 306 Treasury Shares (21 ) (17 ) (16 ) Basic Shares 291 292 290 Effect of Dilutive Options and Restricted Stock 6 6 6 Diluted Shares 297 298 296 Anti-dilutive Options and Awards (a) 1 1 1 ________________ (a) These options and awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net The following table provides details of property and equipment, net as of January 30, 2016 and January 31, 2015 : January 30, January 31, (in millions) Land $ 108 $ 87 Buildings and Improvements 460 413 Furniture, Fixtures, Software and Equipment 3,181 3,169 Leasehold Improvements 1,809 1,647 Construction in Progress 81 164 Total 5,639 5,480 Accumulated Depreciation and Amortization (3,309 ) (3,203 ) Property and Equipment, Net $ 2,330 $ 2,277 Depreciation expense was $457 million in 2015 , $438 million in 2014 and $406 million in 2013 . In 2015, the Company completed sale and leaseback transactions under noncancellable operating leases of certain assets with a carrying value of $177 million . The proceeds of $178 million from the sale of these assets are included in Proceeds from Sale of Assets within the Investing Activities section of the 2015 Consolidated Statement of Cash Flows. For additional information, see Note 15 , "Commitments and Contingencies." |
Inventories
Inventories | 12 Months Ended |
Jan. 30, 2016 | |
Inventories | Inventories The following table provides details of inventories as of January 30, 2016 and January 31, 2015 : January 30, January 31, (in millions) Finished Goods Merchandise $ 1,014 $ 942 Raw Materials and Merchandise Components 108 94 Total Inventories $ 1,122 $ 1,036 |
Goodwill, Trade Names and Other
Goodwill, Trade Names and Other Intangible Assets, Net | 12 Months Ended |
Jan. 30, 2016 | |
Goodwill, Trade Names and Other Intangible Assets, Net [Abstract] | |
Goodwill, Trade Names and Other Intangible Assets, Net | Goodwill, Trade Names and Other Intangible Assets, Net Goodwill The following table provides detail regarding the composition of goodwill for the fiscal years ended January 30, 2016 and January 31, 2015 : January 30, 2016 January 31, 2015 (in millions) Victoria's Secret $ 690 $ 690 Bath & Body Works 628 628 Goodwill $ 1,318 $ 1,318 The Company tests for goodwill impairment at the reporting unit level. The Company's reporting units with goodwill balances at January 30, 2016 were Victoria's Secret Stores, Victoria's Secret Direct and Bath & Body Works. Intangible Assets—Indefinite Lives Intangible assets with indefinite lives represent the Victoria’s Secret and Bath & Body Works trade names which are included in Trade Names and Other Intangible Assets, Net on the Consolidated Balance Sheets. The following table provides additional detail regarding the composition of trade names as of January 30, 2016 and January 31, 2015 : January 30, 2016 January 31, 2015 (in millions) Victoria's Secret $ 246 $ 246 Bath & Body Works 165 165 Intangible Assets - Trade Names $ 411 $ 411 Intangible Assets—Finite Lives Intangible assets with finite lives represent certain trademarks and customer relationships. These assets were fully amortized in 2013, as such there was no amortization expense in 2014 and 2015 . Amortization expense was $1 million for 2013 . |
Equity Investments and Other
Equity Investments and Other | 12 Months Ended |
Jan. 30, 2016 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |
Equity Investments and Other | Equity Investments and Other Third-party Apparel Sourcing Business In 2011, the Company divested a majority ownership interest in its third-party apparel sourcing business to affiliates of Sycamore Partners. In 2015, the Company divested its remaining ownership interest in its third-party apparel sourcing business to Sycamore Partners. The Company received cash proceeds of $85 million and recognized a pre-tax gain of $78 million (after-tax gain of $69 million ). The gain is included in Other Income in the 2015 Consolidated Statement of Income and the cash proceeds are included in Proceeds from Divestiture of the Third-party Apparel Sourcing Business within the Investing Activities section of the 2015 Consolidated Statement of Cash Flows. In 2013 and 2014 , the Company received $64 million and $2 million , respectively, in dividends from the third-party apparel sourcing business while accounted for under the equity method of accounting. These dividends reduced the Company's carrying value in the investment. In 2013, $46 million is included in Return of Capital from Third-party Apparel Sourcing Business Investment within the Investing Activities section of the 2013 Consolidated Statement of Cash Flows, and $18 million is included in Other Assets and Liabilities within the Operating Activities section of the 2013 Consolidated Statement of Cash Flows. In 2014, $2 million is included in Other Assets and Liabilities within the Operating Activities section of the 2014 Consolidated Statement of Cash Flows. The Company's carrying value for this investment was $8 million as of January 31, 2015 and is included in Other Assets on the 2014 Consolidated Balance Sheet. The Company's share of net income (loss) from this investment is included in Other Income on the 2013 and 2014 Consolidated Statements of Income. Easton Investments The Company has land and other investments in Easton, a 1,300 acre planned community in Columbus, Ohio that integrates office, hotel, retail, residential and recreational space. These investments totaled $86 million as of January 30, 2016 and $101 million as of January 31, 2015 and are recorded in Other Assets on the Consolidated Balance Sheets. Included in the Company’s Easton investments is an equity interest in Easton Town Center, LLC (“ETC”), an entity that owns and has developed a commercial entertainment and shopping center. The Company’s investment in ETC is accounted for using the equity method of accounting. The Company has a majority financial interest in ETC, but another unaffiliated member manages ETC. Certain significant decisions regarding ETC require the consent of unaffiliated members in addition to the Company. In 2015, ETC entered into an interest rate swap with cash settlement due in February 2017. The Company provided a guarantee of payment to the counterparty for amounts owed by ETC, if any, upon settlement if ETC is unable to pay. The Company's estimated maximum potential loss from this guarantee is $77 million , which was determined primarily based upon the current interest rate and estimated fluctuations in future interest rates, developed using historical fluctuations in interest rates. The Company had no liability recorded with respect to this guarantee obligation as we concluded that payment under this guarantee was not probable as of January 30, 2016 . Also included in the Company's Easton investments is an equity interest in Easton Gateway, LLC ("EG"), an entity that owns and is developing a commercial shopping center in the Easton community. The Company’s investment in EG is accounted for using the equity method of accounting. The Company has a majority financial interest in EG, but another unaffiliated member manages the activities that most significantly impact the economic performance of EG including leasing, tenant relationships and maintenance of the center. Certain significant decisions regarding EG require the consent of the unaffiliated member in addition to the Company. |
Accrued Expenses and Other
Accrued Expenses and Other | 12 Months Ended |
Jan. 30, 2016 | |
Accrued Expenses and Other | Accrued Expenses and Other The following table provides additional information about the composition of accrued expenses and other as of January 30, 2016 and January 31, 2015 : January 30, January 31, (in millions) Deferred Revenue, Principally from Gift Card Sales $ 243 $ 227 Compensation, Payroll Taxes and Benefits 238 244 Interest 100 82 Taxes, Other than Income 76 71 Rent 48 28 Accrued Claims on Self-insured Activities 35 37 Returns Reserve 27 26 Other 210 185 Total Accrued Expenses and Other $ 977 $ 900 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table provides the components of the Company’s provision for income taxes for 2015 , 2014 and 2013 : 2015 2014 2013 (in millions) Current: U.S. Federal $ 553 $ 454 $ 407 U.S. State 96 69 90 Non-U.S. 21 21 28 Total 670 544 525 Deferred: U.S. Federal 17 46 11 U.S. State 6 3 3 Non-U.S. (12 ) 1 4 Total 11 50 18 Provision for Income Taxes $ 681 $ 594 $ 543 The non-U.S. component of pre-tax income, arising principally from overseas operations, was income of $267 million , $152 million and $131 million for 2015 , 2014 and 2013 , respectively. The Company's income taxes payable has been reduced by the excess tax benefits from employee stock plan awards. For stock options, the Company receives an excess income tax benefit calculated as the tax effect of the difference between the fair market value of the stock at the time of grant and exercise. For restricted stock, the Company receives an excess income tax benefit calculated as the tax effect of the difference between the fair market value of the stock at the time of grant and vesting. The Company had net excess tax benefits from equity awards of $70 million , $43 million and $36 million in 2015 , 2014 and 2013 , respectively, which were reflected as increases to equity. The following table provides the reconciliation between the statutory federal income tax rate and the effective tax rate for 2015 , 2014 and 2013 : 2015 2014 2013 Federal Income Tax Rate 35.0 % 35.0 % 35.0 % State Income Taxes, Net of Federal Income Tax Effect 3.4 % 3.6 % 3.8 % Impact of Non-U.S. Operations (1.7 )% (1.3 )% (1.4 )% Foreign Portion of the Divestiture of Third-party Apparel Sourcing Business (0.9 )% — % — % Other Items, Net (0.6 )% (1.0 )% 0.1 % Effective Tax Rate 35.2 % 36.3 % 37.5 % Deferred Taxes The following table provides the effect of temporary differences that cause deferred income taxes as of January 30, 2016 and January 31, 2015 . Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carryforwards at the end of the respective year. January 30, 2016 January 31, 2015 Assets Liabilities Total Assets Liabilities Total (in millions) Leases $ 54 $ — $ 54 $ 49 $ — $ 49 Non-qualified Retirement Plan 103 — 103 97 — 97 Property and Equipment — (330 ) (330 ) — (283 ) (283 ) Goodwill — (15 ) (15 ) — (15 ) (15 ) Trade Names and Other Intangibles — (141 ) (141 ) — (139 ) (139 ) State Net Operating Loss Carryforwards 17 — 17 18 — 18 Non-U.S. Operating Loss Carryforwards 157 — 157 158 — 158 Valuation Allowance (164 ) — (164 ) (177 ) — (177 ) Other, Net 92 — 92 80 — 80 Total Deferred Income Taxes $ 259 $ (486 ) $ (227 ) $ 225 $ (437 ) $ (212 ) In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. The impact of the adoption of this standard is a decrease in current deferred income tax assets on the Consolidated Balance Sheets of approximately $35 million as of January 30, 2016 and $33 million as of January 31, 2015 ; an increase in noncurrent deferred income tax assets of $8 million as of January 30, 2016 and January 31, 2015 ; and a decrease to noncurrent deferred income tax liabilities of $27 million as of January 30, 2016 and $25 million as of January 31, 2015 . For additional information, see Note 2 , "New Accounting Pronouncements." As of January 30, 2016 , the Company had available for state income tax purposes net operating loss carryforwards which expire, if unused, in the years 2016 through 2035 . For those states where the Company has determined that it is more likely than not that the state net operating loss carryforwards will not be realized, a valuation allowance has been provided. As of January 30, 2016 , the Company had available for non-U.S. tax purposes net operating loss carryforwards which expire, if unused, in the years 2027 through 2035 . For certain jurisdictions where the Company has determined that it is more likely than not that the net operating loss carryforwards will not be realized, a valuation allowance has been provided on those net operating loss carryforwards as well as other net deferred tax assets. As of January 30, 2016 , we have not provided deferred U.S. income taxes on approximately $454 million of undistributed earnings from non-U.S. subsidiaries. Any unrecognized deferred income tax liability resulting from these amounts is not expected to reverse in the foreseeable future; furthermore, the undistributed foreign earnings are permanently reinvested. If the Company elects to distribute these foreign earnings in the future, they could be subject to additional income taxes. Determination of the amount of any unrecognized deferred income tax liability is not practicable because such liability, if any, is dependent on circumstances existing if and when remittance occurs. Income tax payments were $507 million for 2015 , $526 million for 2014 and $468 million for 2013 . Uncertain Tax Positions The following table summarizes the activity related to the Company’s unrecognized tax benefits for U.S. federal, state & non-U.S. tax jurisdictions for 2015 , 2014 and 2013 , without interest and penalties: 2015 2014 2013 (in millions) Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year $ 193 $ 167 $ 185 Increases in Unrecognized Tax Benefits for Prior Years 8 16 39 Decreases in Unrecognized Tax Benefits for Prior Years (3 ) (14 ) (54 ) Increases in Unrecognized Tax Benefits as a Result of Current Year Activity 54 36 37 Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities — (5 ) (34 ) Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations (4 ) (7 ) (6 ) Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year $ 248 $ 193 $ 167 Of the $248 million , $193 million and $167 million of total unrecognized tax benefits at January 30, 2016 , January 31, 2015 , and February 1, 2014 , respectively, approximately $217 million , $170 million and $143 million , respectively, represent the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. These amounts are net of the offsetting tax effects from other tax jurisdictions. Of the total unrecognized tax benefits, it is reasonably possible that $178 million could change in the next 12 months due to audit settlements, expiration of statute of limitations or other resolution of uncertainties. Due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of audits may result in amounts which could be different from this estimate. In such case, the Company will record additional tax expense or tax benefit in the period in which such matters are effectively settled. The Company recognizes interest and penalties related to unrecognized tax benefits as components of income tax expense. The Company recognized interest and penalties expense of $7 million , $1 million and $4 million in 2015 , 2014 and 2013 , respectively. The Company has accrued approximately $38 million and $31 million for the payment of interest and penalties as of January 30, 2016 and January 31, 2015 , respectively. Accrued interest and penalties are included within Other Long-term Liabilities on the Consolidated Balance Sheets. The Company files U.S. federal income tax returns as well as income tax returns in various states and in non-U.S. jurisdictions. At the end of 2015 , the Company was subject to examination by the IRS for 2012 through 2014 . The Company is also subject to various U.S. state and local income tax examinations for the years 2009 to 2014 . Finally, the Company is subject to multiple non-U.S. tax jurisdiction examinations for the years 2005 to 2014 . In some situations, the Company determines that it does not have a filing requirement in a particular tax jurisdiction. Where no return has been filed, no statute of limitations applies. Accordingly, if a tax jurisdiction reaches a conclusion that a filing requirement does exist, additional years may be reviewed by the tax authority. The Company believes it has appropriately accounted for uncertainties related to this issue. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Jan. 30, 2016 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Long-term Debt | Long-term Debt The following table provides the Company’s long-term debt balance, net of debt issuance costs and unamortized discounts, as of January 30, 2016 and January 31, 2015 : January 30, January 31, (in millions) Senior Unsecured Debt with Subsidiary Guarantee $1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) $ 988 $ — $1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) 991 989 $1 billion, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”) 990 988 $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) 496 496 $500 million, 8.50% Fixed Interest Rate Notes due June 2019 (“2019 Notes”) (a) 493 496 $400 million, 7.00% Fixed Interest Rate Notes due May 2020 (“2020 Notes”) 396 395 Total Senior Unsecured Debt with Subsidiary Guarantee $ 4,354 $ 3,364 Senior Unsecured Debt $700 million, 6.90% Fixed Interest Rate Notes due July 2017 (“2017 Notes”) (b) $ 715 $ 713 $350 million, 6.95% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) 348 348 $300 million, 7.60% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) 297 297 Foreign Facilities 7 — Total Senior Unsecured Debt $ 1,367 $ 1,358 Total $ 5,721 $ 4,722 Current Portion of Long-term Debt (6 ) — Total Long-term Debt, Net of Current Portion $ 5,715 $ 4,722 _______________ (a) The balance includes a fair value interest rate hedge adjustment which increased the debt balance by $2 million as of January 30, 2016 and $8 million as of January 31, 2015 . (b) The balance includes a fair value interest rate hedge adjustment which increased the debt balance by $16 million as of January 30, 2016 and $15 million as of January 31, 2015 . In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. The impact of the adoption of this standard is a decrease to Other Assets and Long-term Debt on the Consolidated Balance Sheets of $47 million as of January 30, 2016 and $43 million as of January 31, 2015 . For additional information, see Note 2 , "New Accounting Pronouncements." The following table provides principal payments due on long-term debt in the next five fiscal years and the remaining years thereafter: Fiscal Year (in millions) 2016 $ 6 2017 701 2018 — 2019 500 2020 400 Thereafter 4,150 Cash paid for interest was $317 million in 2015 , $328 million in 2014 and $300 million in 2013 . Issuance of Notes In October 2015, the Company issued $1 billion of 6.875% notes due in November 2035. The obligation to pay principal and interest on these notes is jointly and severally guaranteed on a full and unconditional basis by certain of the Company's 100% owned subsidiaries (the "Guarantors"). The proceeds from the issuance were $988 million , which were net of issuance costs of $12 million . These issuance costs are being amortized through the maturity date of November 2035 and are included within Long-term Debt on the January 30, 2016 Consolidated Balance Sheet. In October 2013, the Company issued $500 million of 5.625% notes due in October 2023. The 2023 Notes are jointly and severally guaranteed on a full and unconditional basis by the Guarantors. The proceeds from the issuance were $495 million , which were net of issuance costs of $5 million . These issuance costs are being amortized through the maturity date of October 2023 and are included within Long-term Debt on the Consolidated Balance Sheets. Repayment of Notes In November 2014, the Company repaid the remaining $213 million of its 5.25% Senior Unsecured Notes due November 2014 with cash on hand. Revolving Facility The Company maintains a secured revolving credit facility (“Revolving Facility”). The Revolving Facility has aggregate availability of $1 billion and expires July 18, 2019. The fees related to committed and unutilized amounts per year are 0.30% per annum, and the fees related to outstanding letters of credit are 1.50% per annum. In addition, the interest rate on outstanding U.S. dollar borrowings or British pound borrowings is LIBOR plus 1.50% . The interest rate on outstanding Canadian dollar borrowings is CDOR plus 1.50% per annum. In July 2014, the Company entered into an amendment and restatement ("Amendment") of its Revolving Facility. The Company incurred fees related to the Amendment of the Revolving Facility of $5 million , which were capitalized and are being amortized over the remaining term of the Revolving Facility. The Revolving Facility contains fixed charge coverage and debt to EBITDA financial covenants. The Company is required to maintain a fixed charge coverage ratio of not less than 1.75 to 1.00 and a consolidated debt to consolidated EBITDA ratio not exceeding 4.00 to 1.00 for the most recent four-quarter period. In addition, the Revolving Facility provides that investments and restricted payments may be made, without limitation on amount, if (a) at the time of and after giving effect to such investment or restricted payment the ratio of consolidated debt to consolidated EBITDA for the most recent four-quarter period is less than 3.00 to 1.00 and (b) no default or event of default exists. As of January 30, 2016 , the Company was in compliance with both of its financial covenants, and the ratio of consolidated debt to consolidated EBITDA was less than 3.00 to 1.00 . During the second quarter of 2014 and the third quarter of 2013, the Company borrowed and repaid $5 million and $290 million , respectively, under the Revolving Facility. The maximum daily amount outstanding at any point in time during the second quarter of 2014 and third quarter of 2013 was $5 million and $140 million , respectively. As of January 30, 2016 , there were no borrowings outstanding under the Revolving Facility. The Revolving Facility supports the Company’s letter of credit program. The Company had $8 million of outstanding letters of credit as of January 30, 2016 that reduce its remaining availability under the Revolving Facility. In addition to the Revolving Facility the Company maintains various revolving and term loan bank facilities with availability totaling $35 million to support its foreign operations ("Foreign Facilities"). These Foreign Facilities mature between November 15, 2016 and July 30, 2017. The interest rates on outstanding borrowings are based upon the applicable benchmark rate for the currency of each borrowing. During 2015 , the Company borrowed $7 million under the Foreign Facilities. The maximum daily amount outstanding at any point in time during 2015 was $7 million . As of January 30, 2016 , there were borrowings of $7 million outstanding under the Foreign Facilities. Fair Value Interest Rate Swap Arrangements For information related to the Company’s fair value interest rate swap arrangements, see Note 11 , “Derivative Instruments.” |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Jan. 30, 2016 | |
Summary of Derivative Instruments [Abstract] | |
Derivative Instruments | Derivative Instruments Foreign Exchange Risk In January 2007, the Company entered into a series of cross-currency swaps related to approximately CAD $470 million of intercompany loans. These cross-currency swaps mitigate the exposure to fluctuations in the U.S. dollar-Canadian dollar exchange rate related to the Company’s Canadian operations. The cross-currency swaps require the periodic exchange of fixed rate Canadian dollar interest payments for fixed rate U.S. dollar interest payments as well as exchange of Canadian dollar and U.S. dollar principal payments upon maturity. The cross-currency swap related to approximately CAD $170 million matures in January 2018 at the same time as the related loan and is designated as a cash flow hedge of foreign currency exchange risk. Changes in the U.S. dollar-Canadian dollar exchange rate and the related swap settlements result in reclassification of amounts from accumulated other comprehensive income to earnings to completely offset foreign currency transaction gains and losses recognized on the intercompany loans. In November 2014, the Company terminated the cross-currency swap of CAD $200 million related to the intercompany loan maturing in January 2015 and January 2017. The Company paid $4 million to settle the swaps. This $4 million expense related to the settlement of the swaps, as well as the foreign currency gains on these intercompany loans of $6 million , were recognized in earnings in the fourth quarter of 2014. The following table provides a summary of the fair value and balance sheet classification of the derivative financial instruments designated as foreign exchange cash flow hedges as of January 30, 2016 and January 31, 2015 : January 30, January 31, (in millions) Other Long-term Assets $ 27 $ 21 The following table provides a summary of the pre-tax financial statement effect of the gains and losses on the Company’s derivative instruments designated as foreign exchange cash flow hedges for 2015 and 2014 : Location 2015 2014 (in millions) Gain (Loss) Recognized in Other Comprehensive Income (Loss) Other Comprehensive Income (Loss) $ 6 $ 34 (Gain) Loss Reclassified from Accumulated Other Comprehensive Income (Loss) into Other Income (a) Other Income 14 (60 ) ________________ (a) Represents reclassification of amounts from accumulated other comprehensive income to earnings to completely offset foreign currency transaction gains and losses recognized on the intercompany loans. No ineffectiveness was associated with these foreign exchange cash flow hedges. Interest Rate Risk Interest Rate Designated Fair Value Hedges In July 2014, the Company entered into interest rate swap arrangements related to $100 million of the outstanding 2017 Notes and $100 million of the outstanding 2019 Notes. In 2013, the Company entered into interest rate swap arrangements related to $200 million of the outstanding 2017 Notes and $200 million of the outstanding 2019 Notes. The interest rate swap arrangements effectively convert the fixed interest rate on the related debt to a variable interest rate based on LIBOR plus a fixed percentage. The swap arrangements are designated as fair value hedges. The changes in the fair value of the interest rate swaps have an equal and offsetting impact to the carrying value of the debt on the balance sheet. The differential to be paid or received on the interest rate swap arrangements is accrued and recognized as an adjustment to interest expense. In the past, the Company had entered into interest rate swap arrangements on the 2017 Notes. In 2012, the Company terminated these interest rate designated fair value hedges. The carrying values of the 2017 Notes include unamortized hedge settlements which are amortized as a reduction to interest expense through the maturity date of the Notes. The following table provides a summary of the fair value and balance sheet classification of the derivative financial instruments designated as interest rate fair value hedges as of January 30, 2016 and January 31, 2015 : January 30, January 31, (in millions) Other Assets $ 11 $ 12 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 30, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Disclosures | Fair Value Measurements The following table provides a summary of the principal value and fair value of long-term debt as of January 30, 2016 and January 31, 2015 : January 30, January 31, (in millions) Principal Value $ 5,750 $ 4,750 Fair Value (a) 6,209 5,305 ________________ (a) The estimated fair value of the Company’s publicly traded debt is based on reported transaction prices which are considered Level 2 inputs in accordance with ASC Topic 820, Fair Value Measurements and Disclosure . The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The following table provides a summary of assets and liabilities measured in the consolidated financial statements at fair value on a recurring basis as of January 30, 2016 and January 31, 2015 : Level 1 Level 2 Level 3 Total (in millions) As of January 30, 2016 Assets: Cash and Cash Equivalents $ 2,548 $ — $ — $ 2,548 Marketable Securities 22 — — 22 Interest Rate Designated Fair Value Hedges — 11 — 11 Cross-currency Cash Flow Hedges — 27 — 27 As of January 31, 2015 Assets: Cash and Cash Equivalents $ 1,681 $ — $ — $ 1,681 Interest Rate Designated Fair Value Hedges — 12 — 12 Cross-currency Cash Flow Hedges — 21 — 21 Liabilities: Lease Guarantees — — 1 1 The Company's Level 1 fair value measurements use unadjusted quoted prices in active markets for identical assets. In 2015 , the Company invested in marketable equity securities. These securities are classified as Level 1 fair value measurements as they are traded with sufficient frequency and volume to enable the Company to obtain pricing information on an ongoing basis. The Company’s Level 2 fair value measurements are measured using market approach valuation techniques. The primary inputs to these techniques include benchmark interest rates and foreign currency exchange rates, as applicable to the underlying instruments. The Company’s Level 3 fair value measurements are measured using income approach valuation techniques. The primary inputs to these techniques include the guaranteed lease payments, discount rates, as well as the Company’s assessment of the risk of default on guaranteed leases. Management believes that the carrying values of accounts receivable, accounts payable, accrued expenses and current debt approximate fair value because of their short maturity. The following table provides a reconciliation of the Company’s lease guarantees measured at fair value on a recurring basis using unobservable inputs (Level 3) for 2015 and 2014 : 2015 2014 (in millions) Beginning Balance $ 1 $ 1 Change in Estimated Fair Value Reported in Earnings (1 ) — Ending Balance $ — $ 1 The Company’s lease guarantees include minimum rent and additional payments covering taxes, common area costs and certain other expenses and relate to leases that commenced prior to the disposition of certain businesses. The fair value of these lease guarantees is impacted by economic conditions, probability of rent obligation payments, period of obligation as well as the discount rate utilized. For additional information, see Note 15 , “Commitments and Contingencies.” |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 12 Months Ended |
Jan. 30, 2016 | |
Comprehensive Income Loss | |
Comprehensive Income (Loss) | Comprehensive Income Comprehensive Income includes gains and losses on derivative instruments, unrealized holding gains and losses on marketable securities classified as available-for-sale and foreign currency translation adjustments. The cumulative gains and losses on these items are included in Accumulated Other Comprehensive Income in the Consolidated Balance Sheets and Consolidated Statements of Shareholders' Equity (Deficit). The following table provides the rollforward of accumulated other comprehensive income for 2015 : Foreign Currency Translation Cash Flow Hedges Marketable Securities Accumulated Other Comprehensive Income (in millions) Balance as of January 31, 2015 $ 51 $ (16 ) $ — $ 35 Other Comprehensive Income (Loss) Before Reclassifications (23 ) 6 8 (9 ) Amounts Reclassified from Accumulated Other Comprehensive Income — 14 — 14 Current-period Other Comprehensive Income (Loss) (23 ) 20 8 5 Balance as of January 30, 2016 $ 28 $ 4 $ 8 $ 40 The following table provides the rollforward of accumulated other comprehensive income for 2014 : Foreign Currency Translation Cash Flow Hedges Marketable Securities Accumulated Other Comprehensive Income (in millions) Balance as of February 1, 2014 $ 30 $ 10 $ — $ 40 Other Comprehensive Income (Loss) Before Reclassifications 21 34 — 55 Amounts Reclassified from Accumulated Other Comprehensive Income — (60 ) — (60 ) Current-period Other Comprehensive Income (Loss) 21 (26 ) — (5 ) Balance as of January 31, 2015 $ 51 $ (16 ) $ — $ 35 The components of accumulated other comprehensive income (loss) above are presented net of tax as applicable. The following table provides a summary of the reclassification adjustments out of accumulated other comprehensive income for 2015 : Details About Accumulated Other Comprehensive Income Components Amounts Reclassified from Accumulated Other Comprehensive Income Location on Consolidated Statements of Income 2015 2014 (in millions) Cash Flow Hedges $ 14 $ (60 ) Other Income — — Provision for Income Taxes $ 14 $ (60 ) Net Income |
Leases
Leases | 12 Months Ended |
Jan. 30, 2016 | |
Leases | Leases The Company is committed to noncancelable leases with remaining terms generally from one to 10 years. A substantial portion of the Company’s leases consist of store leases generally with an initial term of 10 years. Annual store rent consists of a fixed minimum amount and/or contingent rent based on a percentage of sales exceeding a stipulated amount. Store lease terms generally require additional payments covering certain operating costs such as common area maintenance, utilities, insurance and taxes. These additional payments are excluded from the table below. The following table provides rent expense for 2015 , 2014 and 2013 : 2015 2014 2013 (in millions) Store Rent: Fixed Minimum $ 535 $ 516 $ 482 Contingent 73 63 59 Total Store Rent 608 579 541 Office, Equipment and Other 77 68 72 Gross Rent Expense 685 647 613 Sublease Rental Income (2 ) (2 ) (2 ) Total Rent Expense $ 683 $ 645 $ 611 The following table provides the Company’s minimum rent commitments under noncancelable operating leases in the next five fiscal years and the remaining years thereafter: Fiscal Year (in millions) (a) 2016 $ 640 2017 625 2018 546 2019 500 2020 472 Thereafter 1,970 ________________ (a) Excludes additional payments covering taxes, common area costs and certain other expenses generally required by store lease terms. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 30, 2016 | |
Commitments And Contingencies [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to various claims and contingencies related to lawsuits, taxes, insurance, regulatory and other matters arising out of the normal course of business. Actions filed against the Company from time to time include commercial, tort, intellectual property, customer, employment, data privacy, securities and other claims, including purported class action lawsuits. Management believes that the ultimate liability arising from such claims and contingencies, if any, is not likely to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. Guarantees In connection with the disposition of certain businesses, the Company has remaining guarantees of approximately $24 million related to lease payments of Express, Limited Stores and Dick’s Sporting Goods under the current terms of noncancelable leases expiring at various dates through 2021 . These guarantees include minimum rent and additional payments covering taxes, common area costs and certain other expenses and relate to leases that commenced prior to the disposition of the businesses. In certain instances, the Company’s guarantee may remain in effect if the term of a lease is extended. The Company’s guarantees related to Express and Limited Stores required fair value accounting in accordance with GAAP in effect at the time of these divestitures. The Company’s guarantees related to Dick’s Sporting Goods were not subject to fair value accounting, but require that a loss be accrued when probable and reasonably estimable based on GAAP in effect at the time of that divestiture. A liability of $1 million was recorded for these guarantees as of January 31, 2015 , and is included in Other Long-term Liabilities on the Consolidated Balance Sheet. The Company had no liability recorded with respect to any of these guarantee obligations as of January 30, 2016 as it concluded that payments under these guarantees were not probable. In 2015, in connection with the Company's investment in ETC, the Company provided a guarantee of payment to an interest rate swap counterparty for amounts owed by ETC, if any, upon settlement in February 2017. The Company has not recorded a liability with respect to this guarantee obligation as it concluded that payment under this guarantee was not probable as of January 30, 2016 . For additional information, see Note 7 , "Equity Investments and Other." In 2015, in connection with the sale and leaseback under noncancellable operating leases of certain assets, the Company provided residual value guarantees to the lessor if the leased assets cannot be sold for an amount in excess of a specified minimum value at the conclusion of the lease term. The leases expire in 2020, and the total amount of the guarantees is approximately $105 million . The Company recorded a liability of $3 million related to these guarantee obligations as of January 30, 2016 , included in Other Long-term Liabilities on the Consolidated Balance Sheet. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Jan. 30, 2016 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The Company sponsors a tax-qualified defined contribution retirement plan and a non-qualified supplemental retirement plan for substantially all of its associates within the U.S. Participation in the tax-qualified plan is available to associates who meet certain age and service requirements. Participation in the non-qualified plan is available to associates who meet certain age, service, job level and compensation requirements. The qualified plan permits participating associates to elect contributions up to the maximum limits allowable under the Internal Revenue Code. The Company matches associate contributions according to a predetermined formula and contributes additional amounts based on a percentage of the associates’ eligible annual compensation and years of service. Associate contributions and Company matching contributions vest immediately. Additional Company contributions and the related investment earnings are subject to vesting based on years of service. Total expense recognized related to the qualified plan was $64 million for 2015 , $59 million for 2014 and $56 million for 2013 . The non-qualified plan is an unfunded plan which provides benefits beyond the Internal Revenue Code limits for qualified defined contribution plans. The plan permits participating associates to elect contributions up to a maximum percentage of eligible compensation. The Company matches associate contributions according to a predetermined formula and contributes additional amounts based on a percentage of the associates’ eligible compensation and years of service. The plan also permits participating associates to defer additional compensation up to a maximum amount which the Company does not match. Associates’ accounts are credited with interest using a fixed rate determined by the Company and reviewed by the Compensation Committee of the Board of Directors, prior to the beginning of each year. Associate contributions and the related interest vest immediately. Company contributions, along with related interest, are subject to vesting based on years of service. Associates may elect in-service distributions for the unmatched additional deferred compensation component only. The remaining vested portion of associates’ accounts in the plan will be distributed upon termination of employment in either a lump sum or in annual installments over a specified period of up to 10 years. The following table provides the Company’s annual activity for this plan and year-end liability, included in Other Long-term Liabilities on the Consolidated Balance Sheets, as of January 30, 2016 and January 31, 2015 : January 30, January 31, (in millions) Balance at Beginning of Year $ 257 $ 243 Contributions: Associate 15 10 Company 17 10 Interest 13 14 Distributions (28 ) (20 ) Balance at End of Year $ 274 $ 257 Total expense recognized related to the non-qualified plan was $30 million for 2015 , $24 million for 2014 and $22 million for 2013 . |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) | 12 Months Ended |
Jan. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity (Deficit) Common Stock Repurchases Under the authority of the Company’s Board of Directors, the Company repurchased shares of its common stock under the following repurchase programs during the fiscal years 2015 , 2014 and 2013 : Shares Repurchased Amount Repurchased Average Stock Price of Shares Repurchased within Program Repurchase Program Amount Authorized 2015 2014 2013 2015 2014 2013 (in millions) (in thousands) (in millions) June 2015 $ 250 2,680 NA NA $ 233 NA NA $ 87.06 February 2015 250 2,788 NA NA 250 NA NA $ 89.45 November 2012 250 NA 1,317 1,377 NA $ 84 $ 63 $ 54.02 Total 5,468 1,317 1,377 $ 483 $ 84 $ 63 In June 2015, the Company's Board of Directors approved a new $250 million share repurchase program, which included the $0.6 million remaining under the February 2015 repurchase program. In February 2015, the Company's Board of Directors approved a $250 million share repurchase program, which included the $91 million remaining under the November 2012 repurchase program. There were no share repurchases reflected in Accounts Payable on the January 30, 2016 or January 31, 2015 Consolidated Balance Sheets. Subsequent to January 30, 2016 , the Company's Board of Directors approved a new $500 million share repurchase program, which included the $17 million remaining under the June 2015 repurchase program. The Company repurchased an additional 2.5 million shares of common stock for $211 million under the February 2016 repurchase program subsequent to January 30, 2016 . Dividends Under the authority and declaration of the Board of Directors, the Company paid the following dividends during the fiscal years 2015 , 2014 and 2013 : Ordinary Dividends Special Dividends Total Dividends Total Paid (per share) (in millions) 2015 Fourth Quarter $ 0.50 $ — $ 0.50 $ 145 Third Quarter 0.50 — 0.50 146 Second Quarter 0.50 — 0.50 146 First Quarter 0.50 2.00 2.50 734 2015 Total $ 2.00 $ 2.00 $ 4.00 $ 1,171 2014 Fourth Quarter $ 0.34 $ — $ 0.34 $ 100 Third Quarter 0.34 — 0.34 100 Second Quarter 0.34 — 0.34 99 First Quarter 0.34 1.00 1.34 392 2014 Total $ 1.36 $ 1.00 $ 2.36 $ 691 2013 Fourth Quarter $ 0.30 $ — $ 0.30 $ 88 Third Quarter 0.30 — 0.30 87 Second Quarter 0.30 — 0.30 87 First Quarter 0.30 — 0.30 87 2013 Total $ 1.20 $ — $ 1.20 $ 349 Subsequent to January 30, 2016 , the Board of Directors declared an increase in the first quarter 2016 ordinary dividend from $0.50 to $0.60 per share and a special dividend of $2 per share. Both dividends, totaling $748 million , were paid on March 4, 2016 to shareholders of record at the close of business on February 19, 2016. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Jan. 30, 2016 | |
Share-based Compensation [Abstract] | |
Share-based Compensation | Share-based Compensation Plan Summary In 2015 , the Company's shareholders approved the 2015 Stock Option and Performance Incentive Plan ("2015 Plan"). The 2015 Plan replaces the 2011 Stock Option and Performance Incentive Plan. The 2015 plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, performance-based restricted stock, performance units and unrestricted shares. The Company grants stock options at a price equal to the fair market value of the stock on the date of grant. Stock options have a maximum term of 10 years. Stock options generally vest ratably over 3 to 5 years. Restricted stock generally vests (the restrictions lapse) at the end of a three -year period or on a graded basis over a five -year period. Under the Company’s plans, approximately 156 million options, restricted and unrestricted shares have been authorized to be granted to employees and directors. Approximately 17 million options and shares were available for grant as of January 30, 2016 . From time to time the Company's Board of Directors will declare special dividends. For additional information, see Note 17 , "Shareholders' Equity (Deficit)." In accordance with the anti-dilutive provisions of the stock plan, in these circumstances the Company adjusts both the exercise price and the number of share-based awards outstanding as of the record date of the special dividends. The aggregate fair value, the aggregate intrinsic value and the ratio of the exercise price to the market price are approximately equal immediately before and after the adjustments. Therefore, no compensation expense is recognized. Stock Options The following table provides the Company’s stock option activity for the fiscal year ended January 30, 2016 : Number of Shares Weighted Average Option Price Per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding as of January 31, 2015 5,773 $ 34.93 Granted 797 93.40 Exercised (1,060 ) 32.83 Cancelled (146 ) 58.53 Adjustment for Special Dividend 127 Outstanding as of January 30, 2016 5,491 $ 42.40 6.03 $ 295,190 Vested and Expected to Vest as of January 30, 2016 (a) 5,353 41.60 5.96 292,021 Options Exercisable as of January 30, 2016 2,897 24.16 4.25 208,534 ________________ (a) The number of options expected to vest includes an estimate of expected forfeitures. Intrinsic value for stock options is the difference between the current market value of the Company’s stock and the option strike price. The total intrinsic value of options exercised was $63 million for 2015 , $52 million for 2014 and $69 million for 2013 . The total fair value at grant date of option awards vested was $11 million for 2015 and 2014 and $10 million for 2013 . The Company’s total unrecognized compensation cost, net of estimated forfeitures, related to nonvested options was $19 million as of January 30, 2016 . This cost is expected to be recognized over a weighted-average period of 3.0 years. The weighted-average estimated fair value of stock options granted was $15.27 per share for 2015 , $11.74 per share for 2014 and $9.71 per share for 2013 . Cash received from stock options exercised was $33 million for 2015 , $35 million for 2014 and $32 million for 2013 . Tax benefits realized from tax deductions associated with stock options exercised were $20 million for 2015 , $21 million for 2014 and $14 million for 2013 . The Company uses the Black-Scholes option-pricing model for valuation of options granted to employees and directors. The Company’s determination of the fair value of options is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the Company’s expected stock price volatility over the term of the awards and projected employee stock option exercise behaviors. The following table contains the weighted-average assumptions used during 2015 , 2014 and 2013 : 2015 2014 2013 Expected Volatility 26 % 30 % 35 % Risk-free Interest Rate 1.1 % 1.4 % 0.8 % Dividend Yield 2.7 % 3.0 % 3.4 % Expected Life (in years) 4.5 4.6 4.7 The majority of the Company’s stock-based compensation awards are granted on an annual basis in the first quarter of each year. The expected volatility assumption is based on the Company’s analysis of historical volatility. The risk-free interest rate assumption is based upon the average daily closing rates during the period for U.S. treasury notes that have a life which approximates the expected life of the option. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts in relation to the stock price at the grant date. The expected life of employee stock options represents the weighted-average period the stock options are expected to remain outstanding. Restricted Stock The following table provides the Company’s restricted stock activity for the fiscal year ended January 30, 2016 : Number of Shares Weighted Average Grant Date Fair Value (in thousands) Unvested as of January 31, 2015 6,773 $ 41.06 Granted 1,488 85.61 Vested (2,342 ) 34.01 Cancelled (277 ) 57.88 Adjustment for Special Dividend 149 N/A Unvested as of January 30, 2016 5,791 54.41 The Company’s total intrinsic value of restricted stock vested was $217 million for 2015 , $128 million for 2014 and $106 million for 2013 . The Company’s total fair value at grant date of awards vested was $80 million for 2015 , $56 million for 2014 and $40 million for 2013 . Fair value of restricted stock awards is based on the market value of an unrestricted share on the grant date adjusted for anticipated dividend yields. As of January 30, 2016 , there was $129 million of total unrecognized compensation cost, net of estimated forfeitures, related to unvested restricted stock. That cost is expected to be recognized over a weighted-average period of 2.7 years. Tax benefits realized from tax deductions associated with restricted stock vested were $82 million for 2015 , $46 million for 2014 and $40 million for 2013 . Income Statement Impact The following table provides share-based compensation expense included in the Consolidated Statements of Income for 2015 , 2014 and 2013 : 2015 2014 2013 (in millions) Costs of Goods Sold, Buying and Occupancy $ 27 $ 24 $ 22 General, Administrative and Store Operating Expenses 70 66 63 Total Share-based Compensation Expense $ 97 $ 90 $ 85 Share-based compensation expense is based on awards that are ultimately expected to vest. The Company estimates forfeitures at the time of grant and adjusts, if necessary, in subsequent periods based on historical experience and expected future termination rates. The tax benefit associated with recognized share-based compensation expense was $33 million for 2015 , $30 million for 2014 and $29 million for 2013 . |
Segment Information
Segment Information | 12 Months Ended |
Jan. 30, 2016 | |
Segment Information [Abstract] | |
Segment Information | Segment Information The Company has three reportable segments: Victoria’s Secret, Bath & Body Works and Victoria's Secret and Bath & Body Works International. The Victoria’s Secret segment sells women’s intimate and other apparel, personal care and beauty products under the Victoria’s Secret and PINK brand names. Victoria’s Secret merchandise is sold through retail stores located in the U.S. and Canada and its website, www.VictoriasSecret.com . The Bath & Body Works segment sells personal care, soaps, sanitizers and home fragrance products under the Bath & Body Works, White Barn Candle Company, C.O. Bigelow and other brand names. Bath & Body Works merchandise is sold at retail stores located in the U.S. and Canada and through its website, www.BathandBodyWorks.com. The Victoria's Secret and Bath & Body Works International segment includes the Victoria's Secret and Bath & Body Works company-owned and partner-operated stores located outside of the U.S. and Canada. These businesses include the following: • Victoria's Secret Beauty and Accessories stores operated by partners under franchise, license and wholesale arrangements, which feature Victoria's Secret branded beauty and accessories products; • Victoria's Secret International stores, comprised of company-owned stores in the U.K., as well as stores operated by partners under franchise, license and wholesale arrangements; and • Bath & Body Works International stores operated by partners under franchise, license and wholesale arrangements. Other consists of the following: • Mast Global, a merchandise sourcing and production function serving the Company and its international partners; • La Senza, comprised of company-owned stores in Canada, as well as stores operated by partners under franchise, license and wholesale arrangements, which feature women's intimate apparel; • Henri Bendel, operator of 29 specialty stores, which feature handbags, jewelry and other accessory products; and • Corporate functions including non-core real estate, equity investments and other governance functions such as treasury and tax. The following table provides the Company’s segment information as of and for the fiscal years ended January 30, 2016 , January 31, 2015 and February 1, 2014 : Victoria’s Secret Bath & Body Works Victoria’s Secret and Bath & Body Works International Other Total (in millions) January 30, 2016 Net Sales $ 7,672 $ 3,587 $ 385 $ 510 $ 12,154 Depreciation and Amortization 218 70 16 111 415 Operating Income (Loss) 1,391 858 88 (145 ) 2,192 Total Assets (a) 3,163 1,556 436 3,338 8,493 Capital Expenditures 411 166 33 117 727 January 31, 2015 Net Sales $ 7,207 $ 3,350 $ 336 $ 561 $ 11,454 Depreciation and Amortization 198 65 16 119 398 Operating Income (Loss) 1,271 737 78 (133 ) 1,953 Total Assets (a) (b) 2,950 1,365 369 2,792 7,476 Capital Expenditures 446 77 37 155 715 February 1, 2014 Net Sales $ 6,884 $ 3,118 $ 222 $ 549 $ 10,773 Depreciation and Amortization 175 65 9 119 368 Operating Income (Loss) 1,153 648 38 (96 ) 1,743 Total Assets (a) (b) 2,811 1,369 290 2,658 7,128 Capital Expenditures 444 80 33 134 691 ________________ (a) Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. (b) Amounts have been recast to reflect the retrospective application of ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs and ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes . For additional information, see Note 2 , "New Accounting Pronouncements." The Company’s international sales include sales from company-owned stores, royalty revenue from franchise and license arrangements, wholesale revenues and direct sales shipped internationally. Certain of these sales are subject to the impact of fluctuations in foreign currency. The Company's international sales across all segments totaled $1.314 billion in 2015 , $1.349 billion in 2014 and $1.212 billion in 2013 . The Company’s internationally based long-lived assets were $319 million as of January 30, 2016 and $293 million as of January 31, 2015 . |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Quarterly Financial Data [Abstract] | ||
Quarterly Financial Data (Unaudited) | The following table provides summarized quarterly financial data for 2015 : Fiscal Quarter Ended May 2, 2015 (a) August 1, 2015 October 31, 2015 January 30, 2016 (in millions except per share data) Net Sales $ 2,512 $ 2,765 $ 2,482 $ 4,395 Gross Profit 1,056 1,114 1,031 2,002 Operating Income 372 403 339 1,078 Income Before Income Taxes 369 323 260 982 Net Income 250 202 164 636 Net Income Per Basic Share (b) $ 0.86 $ 0.69 $ 0.56 $ 2.19 Net Income Per Diluted Share (b) $ 0.84 $ 0.68 $ 0.55 $ 2.15 ________________ (a) Includes the effect of a pre-tax gain of $78 million ( $69 million net of tax) included in other income, related to the sale of our remaining interest in the third-party apparel sourcing business. (b) Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. | Quarterly Financial Data (Unaudited) The following table provides summarized quarterly financial data for 2015 : Fiscal Quarter Ended May 2, 2015 (a) August 1, 2015 October 31, 2015 January 30, 2016 (in millions except per share data) Net Sales $ 2,512 $ 2,765 $ 2,482 $ 4,395 Gross Profit 1,056 1,114 1,031 2,002 Operating Income 372 403 339 1,078 Income Before Income Taxes 369 323 260 982 Net Income 250 202 164 636 Net Income Per Basic Share (b) $ 0.86 $ 0.69 $ 0.56 $ 2.19 Net Income Per Diluted Share (b) $ 0.84 $ 0.68 $ 0.55 $ 2.15 ________________ (a) Includes the effect of a pre-tax gain of $78 million ( $69 million net of tax) included in other income, related to the sale of our remaining interest in the third-party apparel sourcing business. (b) Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. The following table provides summarized quarterly financial data for 2014 : Fiscal Quarter Ended May 3, 2014 August 2, 2014 November 1, 2014 January 31, 2015 (in millions except per share data) Net Sales $ 2,391 $ 2,675 $ 2,319 $ 4,069 Gross Profit 982 1,044 947 1,835 Operating Income 336 376 284 957 Income Before Income Taxes 255 296 205 880 Net Income 157 188 132 565 Net Income Per Basic Share (a) $ 0.54 $ 0.65 $ 0.45 $ 1.93 Net Income Per Diluted Share (a) $ 0.53 $ 0.63 $ 0.44 $ 1.89 ________________ (a) Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to January 30, 2016 , the Company's Board of Directors approved a new $500 million share repurchase program, which included the $17 million remaining under the June 2015 repurchase program. The Company repurchased an additional 2.5 million shares of common stock for $211 million under the February 2016 repurchase program subsequent to January 30, 2016 . Additionally, the Company declared the first quarter 2016 ordinary dividend of $0.60 per share and a special dividend of $2 per share. The dividends totaled $748 million . For additional information, see Note 17 , "Shareholders' Equity (Deficit)." |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information | 12 Months Ended |
Jan. 30, 2016 | |
Supplemental Guarantor Financial Information [Abstract] | |
Schedule Of Supplemental Guarantor Financial Information [Text Block] | Supplemental Guarantor Financial Information The Company’s 2019 Notes, 2020 Notes, 2021 Notes, 2022 Notes, 2023 Notes and 2035 Notes are jointly and severally guaranteed on a full and unconditional basis by the Guarantors. The Company is a holding company, and its most significant assets are the stock of its subsidiaries. The Guarantors represent: (a) substantially all of the sales of the Company’s domestic subsidiaries, (b) more than 90% of the assets owned by the Company’s domestic subsidiaries, other than real property, certain other assets and intercompany investments and balances, and (c) more than 95% of the accounts receivable and inventory directly owned by the Company’s domestic subsidiaries. The following supplemental financial information sets forth for the Company and its guarantor and non-guarantor subsidiaries: the Condensed Consolidating Balance Sheets as of January 30, 2016 and January 31, 2015 and the Condensed Consolidating Statements of Income, Comprehensive Income and Cash Flows for the years ended January 30, 2016 , January 31, 2015 and February 1, 2014 . The Company adopted ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, and ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, effective January 30, 2016. As such, amounts for all periods presented have been recast to include the retrospective application of these standards. For additional information, see Note 2 , "New Accounting Pronouncements." L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) January 30, 2016 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 2,190 $ 358 $ — $ 2,548 Accounts Receivable, Net 1 202 58 — 261 Inventories — 978 144 — 1,122 Other — 115 110 — 225 Total Current Assets 1 3,485 670 — 4,156 Property and Equipment, Net — 1,574 756 — 2,330 Goodwill — 1,318 — — 1,318 Trade Names and Other Intangible Assets, Net — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 5,368 13,649 1,242 (20,259 ) — Deferred Income Taxes — 11 19 — 30 Other Assets 141 40 679 (612 ) 248 Total Assets $ 5,510 $ 20,488 $ 3,366 $ (20,871 ) $ 8,493 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ — $ 333 $ 335 $ — $ 668 Accrued Expenses and Other 100 519 358 — 977 Current Portion of Long-term Debt — — 6 — 6 Income Taxes (3 ) 237 (10 ) — 224 Total Current Liabilities 97 1,089 689 — 1,875 Deferred Income Taxes (3 ) (86 ) 346 — 257 Long-term Debt 5,714 597 1 (597 ) 5,715 Other Long-term Liabilities — 670 248 (14 ) 904 Total Equity (Deficit) (298 ) 18,218 2,082 (20,260 ) (258 ) Total Liabilities and Equity (Deficit) $ 5,510 $ 20,488 $ 3,366 $ (20,871 ) $ 8,493 L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) January 31, 2015 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 1,462 $ 219 $ — $ 1,681 Accounts Receivable, Net 1 197 54 — 252 Inventories — 919 117 — 1,036 Other — 146 84 — 230 Total Current Assets 1 2,724 474 — 3,199 Property and Equipment, Net — 1,385 892 — 2,277 Goodwill — 1,318 — — 1,318 Trade Names and Other Intangible Assets, Net — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 4,635 14,003 1,405 (20,043 ) — Deferred Income Taxes — 9 15 — 24 Other Assets 145 30 682 (610 ) 247 Total Assets $ 4,781 $ 19,880 $ 3,468 $ (20,653 ) $ 7,476 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ — $ 300 $ 313 $ — $ 613 Accrued Expenses and Other 83 495 322 — 900 Income Taxes (4 ) 183 (13 ) — 166 Total Current Liabilities 79 978 622 — 1,679 Deferred Income Taxes (4 ) (62 ) 302 — 236 Long-term Debt 4,722 597 — (597 ) 4,722 Other Long-term Liabilities — 609 224 (13 ) 820 Total Equity (Deficit) (16 ) 17,758 2,320 (20,043 ) 19 Total Liabilities and Equity (Deficit) $ 4,781 $ 19,880 $ 3,468 $ (20,653 ) $ 7,476 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) 2015 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 11,475 $ 3,570 $ (2,891 ) $ 12,154 Costs of Goods Sold, Buying and Occupancy — (6,843 ) (2,858 ) 2,751 (6,950 ) Gross Profit — 4,632 712 (140 ) 5,204 General, Administrative and Store Operating Expenses (12 ) (2,688 ) (440 ) 128 (3,012 ) Operating Income (Loss) (12 ) 1,944 272 (12 ) 2,192 Interest Expense (334 ) (38 ) (9 ) 47 (334 ) Other Income — 5 71 — 76 Income (Loss) Before Income Taxes (346 ) 1,911 334 35 1,934 Provision (Benefit) for Income Taxes (2 ) 478 205 — 681 Equity in Earnings, Net of Tax 1,597 94 348 (2,039 ) — Net Income (Loss) $ 1,253 $ 1,527 $ 477 $ (2,004 ) $ 1,253 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) 2015 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Income (Loss) $ 1,253 $ 1,527 $ 477 $ (2,004 ) $ 1,253 Other Comprehensive Income (Loss), Net of Tax: Reclassification of Cash Flow Hedges to Earnings — — 14 — 14 Foreign Currency Translation — — (23 ) — (23 ) Unrealized Gain on Cash Flow Hedges — — 6 — 6 Unrealized Gain on Marketable Securities — — 8 — 8 Total Other Comprehensive Income (Loss), Net of Tax — — 5 — 5 Total Comprehensive Income $ 1,253 $ 1,527 $ 482 $ (2,004 ) $ 1,258 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) 2014 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Sales $ — $ 10,711 $ 3,343 $ (2,600 ) $ 11,454 Costs of Goods Sold, Buying and Occupancy — (6,449 ) (2,611 ) 2,414 (6,646 ) Gross Profit — 4,262 732 (186 ) 4,808 General, Administrative and Store Operating Expenses (6 ) (2,538 ) (446 ) 135 (2,855 ) Operating Income (Loss) (6 ) 1,724 286 (51 ) 1,953 Interest Expense (324 ) (35 ) (9 ) 44 (324 ) Other Income 1 — 6 — 7 Income (Loss) Before Income Taxes (329 ) 1,689 283 (7 ) 1,636 Provision (Benefit) for Income Taxes (3 ) 385 212 — 594 Equity in Earnings, Net of Tax 1,368 46 316 (1,730 ) — Net Income (Loss) $ 1,042 $ 1,350 $ 387 $ (1,737 ) $ 1,042 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) 2014 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Income (Loss) $ 1,042 $ 1,350 $ 387 $ (1,737 ) $ 1,042 Other Comprehensive Income (Loss), Net of Tax: Reclassification of Cash Flow Hedges to Earnings — — (60 ) — (60 ) Foreign Currency Translation — — 21 — 21 Unrealized Gain (Loss) on Cash Flow Hedges — — 34 — 34 Total Other Comprehensive Income (Loss), Net of Tax — — (5 ) — (5 ) Total Comprehensive Income $ 1,042 $ 1,350 $ 382 $ (1,737 ) $ 1,037 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) 2013 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Sales $ — $ 10,047 $ 3,190 $ (2,464 ) $ 10,773 Costs of Goods Sold, Buying and Occupancy — (6,096 ) (2,598 ) 2,350 (6,344 ) Gross Profit — 3,951 592 (114 ) 4,429 General, Administrative and Store Operating Expenses (5 ) (2,403 ) (394 ) 116 (2,686 ) Operating Income (Loss) (5 ) 1,548 198 2 1,743 Interest Expense (314 ) (28 ) (11 ) 39 (314 ) Other Income — — 17 — 17 Income (Loss) Before Income Taxes (319 ) 1,520 204 41 1,446 Provision (Benefit) for Income Taxes — 305 238 — 543 Equity in Earnings, Net of Tax 1,222 118 462 (1,802 ) — Net Income (Loss) $ 903 $ 1,333 $ 428 $ (1,761 ) $ 903 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) 2013 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Income (Loss) $ 903 $ 1,333 $ 428 $ (1,761 ) $ 903 Other Comprehensive Income (Loss), Net of Tax: Reclassification of Cash Flow Hedges to Earnings — — (50 ) — (50 ) Foreign Currency Translation — — 40 — 40 Unrealized Gain (Loss) on Cash Flow Hedges — — 46 — 46 Total Other Comprehensive Income (Loss), Net of Tax — — 36 — 36 Total Comprehensive Income $ 903 $ 1,333 $ 464 $ (1,761 ) $ 939 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) 2015 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ (322 ) $ 1,835 $ 356 $ — $ 1,869 Investing Activities: Capital Expenditures — (506 ) (221 ) — (727 ) Proceeds from Sale of Assets — — 196 — 196 Proceeds from Divestiture of Third-party Apparel Sourcing Business — 1 84 — 85 Proceeds from Sale of Marketable Securities — 50 — — 50 Purchases of Marketable Securities — (50 ) (10 ) — (60 ) Other Investing Activities — — 13 — 13 Net Cash Used for Investing Activities — (505 ) 62 — (443 ) Financing Activities: Proceeds from Issuance of Long-term Debt, Net of Issuance Costs 988 — — — 988 Borrowings from Revolving Facilities — — 7 — 7 Repurchase of Common Stock (483 ) — — — (483 ) Dividends Paid (1,171 ) — — — (1,171 ) Excess Tax Benefits from Share-based Compensation — 62 8 — 70 Net Financing Activities and Advances to/from Consolidated Affiliates 955 (662 ) (293 ) — — Proceeds From Exercise of Stock Options 33 — — — 33 Financing Costs and Other — (2 ) — — (2 ) Net Cash Provided by (Used for) Financing Activities 322 (602 ) (278 ) — (558 ) Effects of Exchange Rate Changes on Cash — — (1 ) — (1 ) Net Increase in Cash and Cash Equivalents — 728 139 — 867 Cash and Cash Equivalents, Beginning of Year — 1,462 219 — 1,681 Cash and Cash Equivalents, End of Year $ — $ 2,190 $ 358 $ — $ 2,548 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) 2014 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ (333 ) $ 1,677 $ 442 $ — $ 1,786 Investing Activities: Capital Expenditures — (486 ) (229 ) — (715 ) Other Investing Activities — (1 ) 17 — 16 Net Cash Used for Investing Activities — (487 ) (212 ) — (699 ) Financing Activities: Payments of Long-term Debt (213 ) — — — (213 ) Borrowings from Revolving Facilities — — 5 — 5 Repayments on Revolving Facilities — — (5 ) — (5 ) Repurchase of Common Stock (87 ) — — — (87 ) Dividends Paid (691 ) — — — (691 ) Excess Tax Benefits from Share-based Compensation — 37 6 — 43 Net Financing Activities and Advances to/from Consolidated Affiliates 1,295 (1,118 ) (177 ) — — Proceeds From Exercise of Stock Options 35 — — — 35 Financing Costs and Other (6 ) — — — (6 ) Net Cash Provided by (Used for) Financing Activities 333 (1,081 ) (171 ) — (919 ) Effects of Exchange Rate Changes on Cash — — (6 ) — (6 ) Net Increase (Decrease) in Cash and Cash Equivalents — 109 53 — 162 Cash and Cash Equivalents, Beginning of Year — 1,353 166 — 1,519 Cash and Cash Equivalents, End of Year $ — $ 1,462 $ 219 $ — $ 1,681 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) 2013 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ (302 ) $ 1,323 $ 227 $ — $ 1,248 Investing Activities: Capital Expenditures — (475 ) (216 ) — (691 ) Return of Capital from Third-party Apparel Sourcing Business Investment — — 46 — 46 Other Investing Activities — — (10 ) — (10 ) Net Cash Used for Investing Activities — (475 ) (180 ) — (655 ) Financing Activities: Proceeds from Issuance of Long-term Debt, Net of Issuance Costs 495 — — — 495 Borrowings from Revolving Facilities 290 — — — 290 Repayments on Revolving Facilities (290 ) — — — (290 ) Repurchase of Common Stock (60 ) — — — (60 ) Dividends Paid (349 ) — — — (349 ) Excess Tax Benefits from Share-based Compensation — 31 5 — 36 Net Financing Activities and Advances to/from Consolidated Affiliates 184 57 (241 ) — — Proceeds From Exercise of Stock Options 32 — — — 32 Net Cash Provided by (Used for) Financing Activities 302 88 (236 ) — 154 Effects of Exchange Rate Changes on Cash — — (1 ) — (1 ) Net Increase (Decrease) in Cash and Cash Equivalents — 936 (190 ) — 746 Cash and Cash Equivalents, Beginning of Year — 417 356 — 773 Cash and Cash Equivalents, End of Year $ — $ 1,353 $ 166 $ — $ 1,519 |
Code of Conduct, Related Person
Code of Conduct, Related Person Transaction Policy and Associated Matters (Notes) | 12 Months Ended |
Jan. 30, 2016 | |
Code of Conduct, Related Person Transaction Policy and Associated Matters [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Code of Conduct, Related Person Transaction Policy and Associated Matters The Company has a code of conduct that is applicable to all employees of the Company, including the CEO and Chief Financial Officer, and to members of the Board of Directors. Any amendments to the code or any waivers from any provisions of the code granted to executive officers or directors will be promptly disclosed to stockholders through posting on the Company’s website at www.lb.com . Under the Company’s Related Person Transaction Policy (the “Policy”), subject to certain exceptions, directors and executive officers of the Company are required to notify the Company of the existence or potential existence of any financial or commercial transaction, agreement or relationship involving the Company in which a director or executive officer or his or her immediate family members has a direct or indirect material interest. Each such transaction must be approved by the Board or a committee consisting solely of independent directors after consideration of all material facts and circumstances. The Company is engaged in several projects designed to increase its speed and agility in producing products that satisfy its customers. In the case of its beauty, personal care and home fragrance businesses, the development of supplier facilities in close proximity to its headquarters and distribution facilities in central Ohio has been an integral part of capturing the many business benefits of speed and agility. The New Albany Company (“NACO”), a business beneficially owned by Mr. and Mrs. Wexner, is in the business of developing real estate, including industrial parks, and has sold land (and may in the future sell land) to certain vendors or third party developers in connection with the continuing development of an industrial park focused on the foregoing business categories (the “Beauty Park”) in New Albany, Ohio. The Audit Committee monitors such vendor and third party transactions on an ongoing basis to assure that they are in the best interests of the Company and its stockholders generally. In light of the Company’s highly favorable experience with vendors at the Beauty Park and its growth plans for the beauty, personal care and home fragrance businesses, the Company believes that certain new facilities required to achieve such projected growth should be located as close as possible to the Beauty Park. The Company identified certain land owned by NACO that, together with certain other adjacent parcels owned by a number of third parties in immediate proximity to the Beauty Park, would be desirable for the Company to acquire for future growth. Because of the Wexners’ interest in NACO, the matter was referred to, and evaluated and negotiated by, the Audit Committee in accordance with the Policy. In 2014, the Audit Committee negotiated the purchase of certain NACO land for approximately $21 million , and the assumption from NACO of contracts to purchase certain adjacent parcels directly from third parties for approximately $7 million , and determined that these transactions were fair to and in the best interests of the Company and its stockholders generally. In 2015, certain additional property immediately adjacent to the foregoing parcels became available, and the Company believed that it would be desirable to acquire such property for future growth. This potential transaction was also referred to the Audit Committee for evaluation and, if appropriate, negotiation. The Audit Committee subsequently negotiated with NACO the purchase of such property for approximately $5.3 million , and an existing building located in New Albany that was historically associated with the Bath & Body Works brand for approximately $250,000 , and determined that these transactions were fair to and in the best interests of the Company and its stockholders generally. The determinations made by the Audit Committee in 2014 and 2015 under the Policy with respect to these transactions between the Company and NACO were made in reliance on, among other things, advice from independent counsel and real estate appraisers and advisors, including opinions received from an independent financial advisor with specialized expertise in commercial real estate that such transactions were fair to the Company from a financial point of view. |
Description of Business and S31
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 30, 2016 | |
Description of Business | Description of Business L Brands, Inc. (“the Company”) operates in the highly competitive specialty retail business. The Company is a specialty retailer of women’s intimate and other apparel, beauty and personal care products and accessories. The Company sells its merchandise through company-owned specialty retail stores in the U.S., Canada and the U.K., which are primarily mall-based, and through its websites and other channels. The Company's other international operations are primarily through franchise, license and wholesale partners. The Company currently operates the following retail brands: • Victoria’s Secret • PINK • Bath & Body Works • La Senza • Henri Bendel |
Fiscal Year | Fiscal Year The Company’s fiscal year ends on the Saturday nearest to January 31. As used herein, “ 2015 ”, “ 2014 ” and “ 2013 ” refer to the 52 -week periods ending January 30, 2016 , January 31, 2015 and February 1, 2014 |
Basis of Consolidation | Basis of Consolidation The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company accounts for investments in unconsolidated entities where it exercises significant influence, but does not have control, using the equity method. Under the equity method of accounting, the Company recognizes its share of the investee net income or loss. Losses are only recognized to the extent the Company has positive carrying value related to the investee. Carrying values are only reduced below zero if the Company has an obligation to provide funding to the investee. The Company’s share of net income or loss of unconsolidated entities from which the Company purchases merchandise or merchandise components is included in Costs of Goods Sold, Buying and Occupancy on the Consolidated Statements of Income. The Company’s share of net income or loss of all other unconsolidated entities is included in Other Income on the Consolidated Statements of Income. The Company’s equity investments are required to be reviewed for impairment when it is determined there may be an other than temporary loss in value. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and Cash Equivalents include cash on hand, demand deposits with financial institutions and highly liquid investments with original maturities of less than 90 days. The Company’s outstanding checks, which totaled $30 million as of January 30, 2016 and $42 million as of January 31, 2015 , are included in Accounts Payable on the Consolidated Balance Sheets. |
Concentration of Credit Risk | Concentration of Credit Risk The Company maintains cash and cash equivalents and derivative contracts with various major financial institutions. The Company monitors the relative credit standing of financial institutions with whom the Company transacts and limits the amount of credit exposure with any one entity. Currently, the Company’s investment portfolio is primarily comprised of U.S. government obligations, U.S. Treasury and AAA-rated money market funds, highly rated commercial paper and bank deposits. The Company also periodically reviews the relative credit standing of franchise, license and wholesale partners and other entities to which the Company grants credit terms in the normal course of business. The Company records an allowance for uncollectable accounts when it becomes probable that the counterparty will be unable to pay. |
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block] | Marketable Equity Securities In 2015, the Company invested $10 million in marketable equity securities which are classified as available-for-sale. The Company determines the appropriate classification of investments in equity securities at the acquisition date and re-evaluates the classification at each balance sheet date. This investment is recorded at fair value in other current assets on the January 30, 2016 Consolidated Balance Sheet, and unrealized holding gains and losses are recorded, net of tax, as a component of accumulated other comprehensive income. Unrealized holding gains were $12 million as of January 30, 2016 . |
Inventories | Inventories Inventories are principally valued at the lower of cost or market, on a weighted-average cost basis. The Company records valuation adjustments to its inventories if the cost of specific inventory items on hand exceeds the amount it expects to realize from the ultimate sale or disposal of the inventory. These estimates are based on management’s judgment regarding future demand and market conditions and analysis of historical experience. The Company also records inventory loss adjustments for estimated physical inventory losses that have occurred since the date of the last physical inventory. These estimates are based on management’s analysis of historical results and operating trends. |
Catalogue and Advertising Costs | Advertising Costs Advertising and catalogue costs are expensed at the time the promotion first appears in media, in the store or when the advertising is mailed. Advertising and catalogue costs totaled $414 million for 2015 , $436 million for 2014 and $452 million for 2013 . |
Property and Equipment | Property and Equipment The Company’s property and equipment are recorded at cost and depreciation/amortization is computed on a straight-line basis using the following depreciable life ranges: Category of Property and Equipment Depreciable Life Range Software, including software developed for internal use 3 - 7 years Store related assets 3 - 10 years Leasehold improvements Shorter of lease term or 10 years Non-store related building and site improvements 10 - 15 years Other property and equipment 20 years Buildings 30 years When a decision has been made to dispose of property and equipment prior to the end of the previously estimated useful life, depreciation estimates are revised to reflect the use of the asset over the shortened estimated useful life. The Company’s cost of assets sold or retired and the related accumulated depreciation are removed from the accounts with any resulting gain or loss included in net income. Maintenance and repairs are charged to expense as incurred. Major renewals and betterments that extend useful lives are capitalized. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company has certain intangible assets resulting from business combinations and acquisitions that are recorded at cost. Intangible assets with finite lives are amortized on a straight-line basis over their respective estimated useful lives. Intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset. Goodwill is reviewed for impairment each year in the fourth quarter and may be reviewed more frequently if certain events occur or circumstances change. First, the Company performs a qualitative assessment to determine whether it is more likely than not that each reporting unit's fair value is less than its carrying value, including goodwill. If the Company determines that it is more likely than not that the fair value of the reporting unit is less than its carrying value, the Company then estimates the fair value of all assets and liabilities of that reporting unit, including the implied fair value of goodwill, through either estimated discounted future cash flows or market-based methodologies. If the carrying value of goodwill exceeds the implied fair value, the Company recognizes an impairment charge equal to the difference. The Company's reporting units are determined in accordance with the provisions of Accounting Standards Codification ("ASC") Topic 350, Intangibles - Goodwill and Other . The Company's reporting units that have goodwill are Victoria's Secret Stores, Victoria's Secret Direct and Bath & Body Works. Intangible assets with indefinite lives are reviewed for impairment each year in the fourth quarter and may be reviewed more frequently if certain events occur or circumstances change. First, the Company performs a qualitative assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. If the Company determines that it is more likely than not that the fair value of the asset is less than its carrying amount, the Company estimates the fair value, usually determined by the estimated discounted future cash flows of the asset, compares that value with its carrying amount and records an impairment charge, if any. If future economic conditions are different than those projected by management, future impairment charges may be required. |
Leases and Leasehold Improvements | Leases and Leasehold Improvements The Company has leases that contain predetermined fixed escalations of minimum rentals and/or rent abatements subsequent to taking possession of the leased property. The Company recognizes the related rent expense on a straight-line basis commencing upon the store possession date. The Company records the difference between the recognized rental expense and amounts payable under the leases as deferred lease credits. The Company’s liability for predetermined fixed escalations of minimum rentals and/or rent abatements totaled $150 million as of January 30, 2016 and $142 million as of January 31, 2015 . These liabilities are included in Other Long-term Liabilities on the Consolidated Balance Sheets. The Company receives construction allowances from landlords related to its retail stores. These allowances are generally comprised of cash amounts received by the Company from its landlords as part of the negotiated lease terms. The Company records a receivable and a landlord allowance at the lease commencement date (date of initial possession of the store). The landlord allowance is amortized on a straight-line basis as a reduction of rent expense over the term of the lease (including the pre-opening build-out period), and the receivable is reduced as amounts are received from the landlord. The Company’s unamortized portion of landlord allowances, which totaled $212 million as of January 30, 2016 and $192 million as of January 31, 2015 , is included in Other Long-term Liabilities on the Consolidated Balance Sheets. The Company also has leasehold improvements which are amortized over the shorter of their estimated useful lives or the period from the date the assets are placed in service to the end of the initial lease term. Leasehold improvements made after the inception of the initial lease term are depreciated over the shorter of their estimated useful lives or the remaining lease term, including renewal periods, if reasonably assured. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of the Company’s foreign operations is generally the applicable local currency. Assets and liabilities are translated into U.S. dollars using the current exchange rates in effect as of the balance sheet date, while revenues and expenses are translated at the average exchange rates for the period. The Company’s resulting translation adjustments are recorded as a component of Comprehensive Income in the Consolidated Statements of Comprehensive Income and the Consolidated Statements of Total Equity (Deficit). |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative instruments designated as cash flow hedges or fair value hedges and non-designated derivative instruments to manage exposure to foreign currency exchange rates and interest rates. The Company does not use derivative financial instruments for trading purposes. All derivative financial instruments are recorded on the Consolidated Balance Sheets at fair value. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. For derivative instruments that are designated and qualify as fair value hedges, the changes in the fair value of the derivative instrument have an equal and offsetting impact to the carrying value of the liability on the balance sheet. For derivative instruments that are not designated as hedging instruments, the gain or loss on the derivative instrument is recognized in current earnings. |
Fair Value | Fair Value The authoritative guidance included in ASC Topic 820, Fair Value Measurements and Disclosure, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. This authoritative guidance further establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1—Quoted market prices in active markets for identical assets or liabilities. • Level 2—Observable inputs other than quoted market prices included in Level 1, such as quoted prices of similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company estimates the fair value of financial instruments, property and equipment and goodwill and intangible assets in accordance with the provisions of ASC Topic 820 . |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, taxes currently payable or refundable are accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are also recognized for realizable operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted income tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in income tax rates is recognized in the Company’s Consolidated Statement of Income in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if it is more likely than not that such assets will not be realized. U.S. deferred income taxes are not provided on undistributed income of foreign subsidiaries where such earnings are considered to be permanently reinvested for the foreseeable future. In determining the Company’s provision for income taxes, the Company considers permanent differences between book and tax income and statutory income tax rates. The Company’s effective income tax rate is affected by items including changes in tax law, the tax jurisdiction of new stores or business ventures and the level of earnings. The Company follows a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. The Company’s income tax returns, like those of most companies, are periodically audited by domestic and foreign tax authorities. These audits include questions regarding the Company’s tax filing positions, including the timing and amount of deductions and the allocation of income among various tax jurisdictions. At any one time, multiple tax years are subject to audit by the various tax authorities. A number of years may elapse before a particular matter for which the Company has established an accrual is audited and fully resolved or clarified. The Company adjusts its tax contingencies accrual and income tax provision in the period in which matters are effectively settled with tax authorities at amounts different from its established accrual, when the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. The Company includes its tax contingencies accrual, including accrued penalties and interest, in Other Long-term Liabilities on the Consolidated Balance Sheets unless the liability is expected to be paid within one year. Changes to the tax contingencies accrual, including accrued penalties and interest, are included in Provision for Income Taxes on the Consolidated Statements of Income. |
Self Insurance | Self Insurance The Company is self-insured for medical, workers’ compensation, property, general liability and automobile liability up to certain stop-loss limits. Such costs are accrued based on known claims and an estimate of incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information and actuarial estimates. |
Noncontrolling Interest [Policy Text Block] | Noncontrolling Interest Noncontrolling interest represents the portion of equity interests of consolidated affiliates not owned by the Company. |
Share-based Compensation | Share-based Compensation The Company recognizes all share-based payments to employees and directors as compensation cost over the service period based on their estimated fair value on the date of grant. Compensation cost is recognized over the service period for the fair value of awards that actually vest. Compensation expense for awards without a performance condition is recognized, net of estimated forfeitures, using a single award approach (each award is valued as one grant, irrespective of the number of vesting tranches). Compensation expense for awards with a performance condition is recognized, net of estimated forfeitures, using a multiple award approach (each vesting tranche is valued as one grant). |
Revenue Recognition | Revenue Recognition The Company recognizes sales upon customer receipt of the merchandise, which for direct response revenues reflects an estimate of shipments that have not yet been received by the customer based on shipping terms and estimated delivery times. The Company’s shipping and handling revenues are included in Net Sales with the related costs included in Costs of Goods Sold, Buying and Occupancy on the Consolidated Statements of Income. The Company also provides a reserve for projected merchandise returns based on prior experience. Net Sales exclude sales tax collected from customers. The Company’s brands sell gift cards with no expiration dates to customers. The Company does not charge administrative fees on unused gift cards. The Company recognizes income from gift cards when they are redeemed by the customer. In addition, the Company recognizes income on unredeemed gift cards when it can determine that the likelihood of the gift card being redeemed is remote and that there is no legal obligation to remit the unredeemed gift cards to relevant jurisdictions (gift card breakage). The Company determines the gift card breakage rate based on historical redemption patterns. Gift card breakage is included in Net Sales in the Consolidated Statements of Income. The Company also recognize revenues associated with franchise, license and wholesale arrangements. Revenue recognized under franchise and license arrangements generally consists of royalties earned and recognized upon sale of merchandise by franchise and license partners to retail customers. Revenue is generally recognized under wholesale arrangements at the time the title passes to the partner. The Company recognizes revenue associated with merchandise sourcing and production services provided to third parties. Revenue is recognized at the time the title passes to the customer. |
Costs of Goods Sold, Buying and Occupancy | Costs of Goods Sold, Buying and Occupancy The Company’s costs of goods sold include merchandise costs, net of discounts and allowances, freight and inventory shrinkage. The Company’s buying and occupancy expenses primarily include payroll, benefit costs and operating expenses for its buying departments and distribution network, rent, common area maintenance, real estate taxes, utilities, maintenance, fulfillment expenses and depreciation for the Company’s stores, warehouse facilities and equipment. |
General, Administrative and Store Operating Expenses | General, Administrative and Store Operating Expenses The Company’s general, administrative and store operating expenses primarily include payroll and benefit costs for its store-selling and administrative departments (including corporate functions), marketing, advertising and other operating expenses not specifically categorized elsewhere in the Consolidated Statements of Income. |
Use of Estimates in the Preparation of Financial Statements Policy | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. Actual results may differ from those estimates, and the Company revises its estimates and assumptions as new information becomes available. |
Third Party Sourcing Business [Member] | |
Policy on consolidation of sales to equity investments | The Company accounts for investments in unconsolidated entities where it exercises significant influence, but does not have control, using the equity method. Under the equity method of accounting, the Company recognizes its share of the investee net income or loss. Losses are only recognized to the extent the Company has positive carrying value related to the investee. Carrying values are only reduced below zero if the Company has an obligation to provide funding to the investee. The Company’s share of net income or loss of unconsolidated entities from which the Company purchases merchandise or merchandise components is included in Costs of Goods Sold, Buying and Occupancy on the Consolidated Statements of Income. The Company’s share of net income or loss of all other unconsolidated entities is included in Other Income on the Consolidated Statements of Income. The Company’s equity investments are required to be reviewed for impairment when it is determined there may be an other than temporary loss in value. Third-party Apparel Sourcing Business In the first quarter of 2015, the Company divested its remaining ownership interest in its third-party apparel sourcing business to Sycamore Partners. For additional information, see Note 7 , “Equity Investments and Other.” |
Description of Business and S32
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Depreciable Life Range of Property Plant and Equipment | The Company’s property and equipment are recorded at cost and depreciation/amortization is computed on a straight-line basis using the following depreciable life ranges: Category of Property and Equipment Depreciable Life Range Software, including software developed for internal use 3 - 7 years Store related assets 3 - 10 years Leasehold improvements Shorter of lease term or 10 years Non-store related building and site improvements 10 - 15 years Other property and equipment 20 years Buildings 30 years |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Computation | The following table provides shares utilized for the calculation of basic and diluted earnings per share for 2015 , 2014 and 2013 : 2015 2014 2013 (in millions) Weighted-average Common Shares: Issued Shares 312 309 306 Treasury Shares (21 ) (17 ) (16 ) Basic Shares 291 292 290 Effect of Dilutive Options and Restricted Stock 6 6 6 Diluted Shares 297 298 296 Anti-dilutive Options and Awards (a) 1 1 1 ________________ (a) These options and awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Property, Plant and Equipment, Net | The following table provides details of property and equipment, net as of January 30, 2016 and January 31, 2015 : January 30, January 31, (in millions) Land $ 108 $ 87 Buildings and Improvements 460 413 Furniture, Fixtures, Software and Equipment 3,181 3,169 Leasehold Improvements 1,809 1,647 Construction in Progress 81 164 Total 5,639 5,480 Accumulated Depreciation and Amortization (3,309 ) (3,203 ) Property and Equipment, Net $ 2,330 $ 2,277 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Summary of inventories | The following table provides details of inventories as of January 30, 2016 and January 31, 2015 : January 30, January 31, (in millions) Finished Goods Merchandise $ 1,014 $ 942 Raw Materials and Merchandise Components 108 94 Total Inventories $ 1,122 $ 1,036 |
Goodwill, Trade Names and Oth36
Goodwill, Trade Names and Other Intangible Assets, Net (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Schedule of Indefinite-Lived Intangible Assets [Table Text Block] | The following table provides additional detail regarding the composition of trade names as of January 30, 2016 and January 31, 2015 : January 30, 2016 January 31, 2015 (in millions) Victoria's Secret $ 246 $ 246 Bath & Body Works 165 165 Intangible Assets - Trade Names $ 411 $ 411 |
Schedule of Goodwill | The following table provides detail regarding the composition of goodwill for the fiscal years ended January 30, 2016 and January 31, 2015 : January 30, 2016 January 31, 2015 (in millions) Victoria's Secret $ 690 $ 690 Bath & Body Works 628 628 Goodwill $ 1,318 $ 1,318 |
Accrued Expenses and Other (Tab
Accrued Expenses and Other (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Composition of Accrued Expenses and Other | The following table provides additional information about the composition of accrued expenses and other as of January 30, 2016 and January 31, 2015 : January 30, January 31, (in millions) Deferred Revenue, Principally from Gift Card Sales $ 243 $ 227 Compensation, Payroll Taxes and Benefits 238 244 Interest 100 82 Taxes, Other than Income 76 71 Rent 48 28 Accrued Claims on Self-insured Activities 35 37 Returns Reserve 27 26 Other 210 185 Total Accrued Expenses and Other $ 977 $ 900 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The following table provides the components of the Company’s provision for income taxes for 2015 , 2014 and 2013 : 2015 2014 2013 (in millions) Current: U.S. Federal $ 553 $ 454 $ 407 U.S. State 96 69 90 Non-U.S. 21 21 28 Total 670 544 525 Deferred: U.S. Federal 17 46 11 U.S. State 6 3 3 Non-U.S. (12 ) 1 4 Total 11 50 18 Provision for Income Taxes $ 681 $ 594 $ 543 |
Reconciliation of the Statutory Federal Income Tax Rate and the Effective Tax Rate | The following table provides the reconciliation between the statutory federal income tax rate and the effective tax rate for 2015 , 2014 and 2013 : 2015 2014 2013 Federal Income Tax Rate 35.0 % 35.0 % 35.0 % State Income Taxes, Net of Federal Income Tax Effect 3.4 % 3.6 % 3.8 % Impact of Non-U.S. Operations (1.7 )% (1.3 )% (1.4 )% Foreign Portion of the Divestiture of Third-party Apparel Sourcing Business (0.9 )% — % — % Other Items, Net (0.6 )% (1.0 )% 0.1 % Effective Tax Rate 35.2 % 36.3 % 37.5 % |
Effect of Temporary Differences that Cause Deferred Income Taxes | The following table provides the effect of temporary differences that cause deferred income taxes as of January 30, 2016 and January 31, 2015 . Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carryforwards at the end of the respective year. January 30, 2016 January 31, 2015 Assets Liabilities Total Assets Liabilities Total (in millions) Leases $ 54 $ — $ 54 $ 49 $ — $ 49 Non-qualified Retirement Plan 103 — 103 97 — 97 Property and Equipment — (330 ) (330 ) — (283 ) (283 ) Goodwill — (15 ) (15 ) — (15 ) (15 ) Trade Names and Other Intangibles — (141 ) (141 ) — (139 ) (139 ) State Net Operating Loss Carryforwards 17 — 17 18 — 18 Non-U.S. Operating Loss Carryforwards 157 — 157 158 — 158 Valuation Allowance (164 ) — (164 ) (177 ) — (177 ) Other, Net 92 — 92 80 — 80 Total Deferred Income Taxes $ 259 $ (486 ) $ (227 ) $ 225 $ (437 ) $ (212 ) |
Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits for U.S. federal, state & non-U.S. tax jurisdictions for 2015 , 2014 and 2013 , without interest and penalties: 2015 2014 2013 (in millions) Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year $ 193 $ 167 $ 185 Increases in Unrecognized Tax Benefits for Prior Years 8 16 39 Decreases in Unrecognized Tax Benefits for Prior Years (3 ) (14 ) (54 ) Increases in Unrecognized Tax Benefits as a Result of Current Year Activity 54 36 37 Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities — (5 ) (34 ) Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations (4 ) (7 ) (6 ) Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year $ 248 $ 193 $ 167 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The following table provides the Company’s long-term debt balance, net of debt issuance costs and unamortized discounts, as of January 30, 2016 and January 31, 2015 : January 30, January 31, (in millions) Senior Unsecured Debt with Subsidiary Guarantee $1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) $ 988 $ — $1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) 991 989 $1 billion, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”) 990 988 $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) 496 496 $500 million, 8.50% Fixed Interest Rate Notes due June 2019 (“2019 Notes”) (a) 493 496 $400 million, 7.00% Fixed Interest Rate Notes due May 2020 (“2020 Notes”) 396 395 Total Senior Unsecured Debt with Subsidiary Guarantee $ 4,354 $ 3,364 Senior Unsecured Debt $700 million, 6.90% Fixed Interest Rate Notes due July 2017 (“2017 Notes”) (b) $ 715 $ 713 $350 million, 6.95% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) 348 348 $300 million, 7.60% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) 297 297 Foreign Facilities 7 — Total Senior Unsecured Debt $ 1,367 $ 1,358 Total $ 5,721 $ 4,722 Current Portion of Long-term Debt (6 ) — Total Long-term Debt, Net of Current Portion $ 5,715 $ 4,722 _______________ (a) The balance includes a fair value interest rate hedge adjustment which increased the debt balance by $2 million as of January 30, 2016 and $8 million as of January 31, 2015 . (b) The balance includes a fair value interest rate hedge adjustment which increased the debt balance by $16 million as of January 30, 2016 and $15 million as of January 31, 2015 . |
Schedule of Principal Payments due on Long-term Debt [Text Block] | The following table provides principal payments due on long-term debt in the next five fiscal years and the remaining years thereafter: Fiscal Year (in millions) 2016 $ 6 2017 701 2018 — 2019 500 2020 400 Thereafter 4,150 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | |
Schedule of Derivative Instruments in Statement of Financial Position | The following table provides a summary of the fair value and balance sheet classification of the derivative financial instruments designated as foreign exchange cash flow hedges as of January 30, 2016 and January 31, 2015 : January 30, January 31, (in millions) Other Long-term Assets $ 27 $ 21 |
Schedule of Derivative Instruments in Statement of Financial Performance | The following table provides a summary of the pre-tax financial statement effect of the gains and losses on the Company’s derivative instruments designated as foreign exchange cash flow hedges for 2015 and 2014 : Location 2015 2014 (in millions) Gain (Loss) Recognized in Other Comprehensive Income (Loss) Other Comprehensive Income (Loss) $ 6 $ 34 (Gain) Loss Reclassified from Accumulated Other Comprehensive Income (Loss) into Other Income (a) Other Income 14 (60 ) ________________ (a) Represents reclassification of amounts from accumulated other comprehensive income to earnings to completely offset foreign currency transaction gains and losses recognized on the intercompany loans. No ineffectiveness was associated with these foreign exchange cash flow hedges. |
Interest Rate Swap [Member] | Fair Value Hedging [Member] | |
Schedule of Derivative Instruments in Statement of Financial Position | The following table provides a summary of the fair value and balance sheet classification of the derivative financial instruments designated as interest rate fair value hedges as of January 30, 2016 and January 31, 2015 : January 30, January 31, (in millions) Other Assets $ 11 $ 12 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Carrying Value And Fair Value Of Long Term Debt, Disclosure | The following table provides a summary of the principal value and fair value of long-term debt as of January 30, 2016 and January 31, 2015 : January 30, January 31, (in millions) Principal Value $ 5,750 $ 4,750 Fair Value (a) 6,209 5,305 ________________ (a) The estimated fair value of the Company’s publicly traded debt is based on reported transaction prices which are considered Level 2 inputs in accordance with ASC Topic 820, Fair Value Measurements and Disclosure . The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange. |
Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table provides a summary of assets and liabilities measured in the consolidated financial statements at fair value on a recurring basis as of January 30, 2016 and January 31, 2015 : Level 1 Level 2 Level 3 Total (in millions) As of January 30, 2016 Assets: Cash and Cash Equivalents $ 2,548 $ — $ — $ 2,548 Marketable Securities 22 — — 22 Interest Rate Designated Fair Value Hedges — 11 — 11 Cross-currency Cash Flow Hedges — 27 — 27 As of January 31, 2015 Assets: Cash and Cash Equivalents $ 1,681 $ — $ — $ 1,681 Interest Rate Designated Fair Value Hedges — 12 — 12 Cross-currency Cash Flow Hedges — 21 — 21 Liabilities: Lease Guarantees — — 1 1 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides a reconciliation of the Company’s lease guarantees measured at fair value on a recurring basis using unobservable inputs (Level 3) for 2015 and 2014 : 2015 2014 (in millions) Beginning Balance $ 1 $ 1 Change in Estimated Fair Value Reported in Earnings (1 ) — Ending Balance $ — $ 1 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Comprehensive Income Loss | |
Components of Accumulated Other Comprehensive Income (Loss) | The following table provides the rollforward of accumulated other comprehensive income for 2015 : Foreign Currency Translation Cash Flow Hedges Marketable Securities Accumulated Other Comprehensive Income (in millions) Balance as of January 31, 2015 $ 51 $ (16 ) $ — $ 35 Other Comprehensive Income (Loss) Before Reclassifications (23 ) 6 8 (9 ) Amounts Reclassified from Accumulated Other Comprehensive Income — 14 — 14 Current-period Other Comprehensive Income (Loss) (23 ) 20 8 5 Balance as of January 30, 2016 $ 28 $ 4 $ 8 $ 40 The following table provides the rollforward of accumulated other comprehensive income for 2014 : Foreign Currency Translation Cash Flow Hedges Marketable Securities Accumulated Other Comprehensive Income (in millions) Balance as of February 1, 2014 $ 30 $ 10 $ — $ 40 Other Comprehensive Income (Loss) Before Reclassifications 21 34 — 55 Amounts Reclassified from Accumulated Other Comprehensive Income — (60 ) — (60 ) Current-period Other Comprehensive Income (Loss) 21 (26 ) — (5 ) Balance as of January 31, 2015 $ 51 $ (16 ) $ — $ 35 The components of accumulated other comprehensive income (loss) above are presented net of tax as applicable. |
Reclassification out of Accumulated Other Comprehensive Income | The following table provides a summary of the reclassification adjustments out of accumulated other comprehensive income for 2015 : Details About Accumulated Other Comprehensive Income Components Amounts Reclassified from Accumulated Other Comprehensive Income Location on Consolidated Statements of Income 2015 2014 (in millions) Cash Flow Hedges $ 14 $ (60 ) Other Income — — Provision for Income Taxes $ 14 $ (60 ) Net Income |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Leases [Abstract] | |
Remaining noncancelable lease term, minimum (in years) | 1 |
Remaining noncancelable lease term, maximum (in years) | 10 |
Leases Rent Expenses | The following table provides rent expense for 2015 , 2014 and 2013 : 2015 2014 2013 (in millions) Store Rent: Fixed Minimum $ 535 $ 516 $ 482 Contingent 73 63 59 Total Store Rent 608 579 541 Office, Equipment and Other 77 68 72 Gross Rent Expense 685 647 613 Sublease Rental Income (2 ) (2 ) (2 ) Total Rent Expense $ 683 $ 645 $ 611 |
Minimum Rent Commitments Operating Leases | The following table provides the Company’s minimum rent commitments under noncancelable operating leases in the next five fiscal years and the remaining years thereafter: Fiscal Year (in millions) (a) 2016 $ 640 2017 625 2018 546 2019 500 2020 472 Thereafter 1,970 ________________ (a) Excludes additional payments covering taxes, common area costs and certain other expenses generally required by store lease terms. |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Retirement Benefits [Abstract] | |
Annual activity for the non-qualified plan and year-end liability | The following table provides the Company’s annual activity for this plan and year-end liability, included in Other Long-term Liabilities on the Consolidated Balance Sheets, as of January 30, 2016 and January 31, 2015 : January 30, January 31, (in millions) Balance at Beginning of Year $ 257 $ 243 Contributions: Associate 15 10 Company 17 10 Interest 13 14 Distributions (28 ) (20 ) Balance at End of Year $ 274 $ 257 |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Company's repurchase program | Under the authority of the Company’s Board of Directors, the Company repurchased shares of its common stock under the following repurchase programs during the fiscal years 2015 , 2014 and 2013 : Shares Repurchased Amount Repurchased Average Stock Price of Shares Repurchased within Program Repurchase Program Amount Authorized 2015 2014 2013 2015 2014 2013 (in millions) (in thousands) (in millions) June 2015 $ 250 2,680 NA NA $ 233 NA NA $ 87.06 February 2015 250 2,788 NA NA 250 NA NA $ 89.45 November 2012 250 NA 1,317 1,377 NA $ 84 $ 63 $ 54.02 Total 5,468 1,317 1,377 $ 483 $ 84 $ 63 |
Schedule Of Dividends Paid | Under the authority and declaration of the Board of Directors, the Company paid the following dividends during the fiscal years 2015 , 2014 and 2013 : Ordinary Dividends Special Dividends Total Dividends Total Paid (per share) (in millions) 2015 Fourth Quarter $ 0.50 $ — $ 0.50 $ 145 Third Quarter 0.50 — 0.50 146 Second Quarter 0.50 — 0.50 146 First Quarter 0.50 2.00 2.50 734 2015 Total $ 2.00 $ 2.00 $ 4.00 $ 1,171 2014 Fourth Quarter $ 0.34 $ — $ 0.34 $ 100 Third Quarter 0.34 — 0.34 100 Second Quarter 0.34 — 0.34 99 First Quarter 0.34 1.00 1.34 392 2014 Total $ 1.36 $ 1.00 $ 2.36 $ 691 2013 Fourth Quarter $ 0.30 $ — $ 0.30 $ 88 Third Quarter 0.30 — 0.30 87 Second Quarter 0.30 — 0.30 87 First Quarter 0.30 — 0.30 87 2013 Total $ 1.20 $ — $ 1.20 $ 349 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Share-based Compensation [Abstract] | |
Stock Option Activity | The following table provides the Company’s stock option activity for the fiscal year ended January 30, 2016 : Number of Shares Weighted Average Option Price Per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding as of January 31, 2015 5,773 $ 34.93 Granted 797 93.40 Exercised (1,060 ) 32.83 Cancelled (146 ) 58.53 Adjustment for Special Dividend 127 Outstanding as of January 30, 2016 5,491 $ 42.40 6.03 $ 295,190 Vested and Expected to Vest as of January 30, 2016 (a) 5,353 41.60 5.96 292,021 Options Exercisable as of January 30, 2016 2,897 24.16 4.25 208,534 ________________ (a) The number of options expected to vest includes an estimate of expected forfeitures. |
Weighted-Average Assumptions | The following table contains the weighted-average assumptions used during 2015 , 2014 and 2013 : 2015 2014 2013 Expected Volatility 26 % 30 % 35 % Risk-free Interest Rate 1.1 % 1.4 % 0.8 % Dividend Yield 2.7 % 3.0 % 3.4 % Expected Life (in years) 4.5 4.6 4.7 |
Restricted Stock Activity | The following table provides the Company’s restricted stock activity for the fiscal year ended January 30, 2016 : Number of Shares Weighted Average Grant Date Fair Value (in thousands) Unvested as of January 31, 2015 6,773 $ 41.06 Granted 1,488 85.61 Vested (2,342 ) 34.01 Cancelled (277 ) 57.88 Adjustment for Special Dividend 149 N/A Unvested as of January 30, 2016 5,791 54.41 |
Share-Based Compensation Expense | The following table provides share-based compensation expense included in the Consolidated Statements of Income for 2015 , 2014 and 2013 : 2015 2014 2013 (in millions) Costs of Goods Sold, Buying and Occupancy $ 27 $ 24 $ 22 General, Administrative and Store Operating Expenses 70 66 63 Total Share-based Compensation Expense $ 97 $ 90 $ 85 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Segment Information [Abstract] | |
Schedule of Segment Reporting Information | The following table provides the Company’s segment information as of and for the fiscal years ended January 30, 2016 , January 31, 2015 and February 1, 2014 : Victoria’s Secret Bath & Body Works Victoria’s Secret and Bath & Body Works International Other Total (in millions) January 30, 2016 Net Sales $ 7,672 $ 3,587 $ 385 $ 510 $ 12,154 Depreciation and Amortization 218 70 16 111 415 Operating Income (Loss) 1,391 858 88 (145 ) 2,192 Total Assets (a) 3,163 1,556 436 3,338 8,493 Capital Expenditures 411 166 33 117 727 January 31, 2015 Net Sales $ 7,207 $ 3,350 $ 336 $ 561 $ 11,454 Depreciation and Amortization 198 65 16 119 398 Operating Income (Loss) 1,271 737 78 (133 ) 1,953 Total Assets (a) (b) 2,950 1,365 369 2,792 7,476 Capital Expenditures 446 77 37 155 715 February 1, 2014 Net Sales $ 6,884 $ 3,118 $ 222 $ 549 $ 10,773 Depreciation and Amortization 175 65 9 119 368 Operating Income (Loss) 1,153 648 38 (96 ) 1,743 Total Assets (a) (b) 2,811 1,369 290 2,658 7,128 Capital Expenditures 444 80 33 134 691 ________________ (a) Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. (b) Amounts have been recast to reflect the retrospective application of ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs and ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes . For additional information, see Note 2 , "New Accounting Pronouncements." |
Quarterly Financial Data (Una48
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Quarterly Financial Data [Abstract] | ||
Quarterly Financial Data (Unaudited) | The following table provides summarized quarterly financial data for 2015 : Fiscal Quarter Ended May 2, 2015 (a) August 1, 2015 October 31, 2015 January 30, 2016 (in millions except per share data) Net Sales $ 2,512 $ 2,765 $ 2,482 $ 4,395 Gross Profit 1,056 1,114 1,031 2,002 Operating Income 372 403 339 1,078 Income Before Income Taxes 369 323 260 982 Net Income 250 202 164 636 Net Income Per Basic Share (b) $ 0.86 $ 0.69 $ 0.56 $ 2.19 Net Income Per Diluted Share (b) $ 0.84 $ 0.68 $ 0.55 $ 2.15 ________________ (a) Includes the effect of a pre-tax gain of $78 million ( $69 million net of tax) included in other income, related to the sale of our remaining interest in the third-party apparel sourcing business. (b) Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. | Quarterly Financial Data (Unaudited) The following table provides summarized quarterly financial data for 2015 : Fiscal Quarter Ended May 2, 2015 (a) August 1, 2015 October 31, 2015 January 30, 2016 (in millions except per share data) Net Sales $ 2,512 $ 2,765 $ 2,482 $ 4,395 Gross Profit 1,056 1,114 1,031 2,002 Operating Income 372 403 339 1,078 Income Before Income Taxes 369 323 260 982 Net Income 250 202 164 636 Net Income Per Basic Share (b) $ 0.86 $ 0.69 $ 0.56 $ 2.19 Net Income Per Diluted Share (b) $ 0.84 $ 0.68 $ 0.55 $ 2.15 ________________ (a) Includes the effect of a pre-tax gain of $78 million ( $69 million net of tax) included in other income, related to the sale of our remaining interest in the third-party apparel sourcing business. (b) Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. The following table provides summarized quarterly financial data for 2014 : Fiscal Quarter Ended May 3, 2014 August 2, 2014 November 1, 2014 January 31, 2015 (in millions except per share data) Net Sales $ 2,391 $ 2,675 $ 2,319 $ 4,069 Gross Profit 982 1,044 947 1,835 Operating Income 336 376 284 957 Income Before Income Taxes 255 296 205 880 Net Income 157 188 132 565 Net Income Per Basic Share (a) $ 0.54 $ 0.65 $ 0.45 $ 1.93 Net Income Per Diluted Share (a) $ 0.53 $ 0.63 $ 0.44 $ 1.89 ________________ (a) Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. |
Summarized Quarterly Financial Data | The following table provides summarized quarterly financial data for 2015 : Fiscal Quarter Ended May 2, 2015 (a) August 1, 2015 October 31, 2015 January 30, 2016 (in millions except per share data) Net Sales $ 2,512 $ 2,765 $ 2,482 $ 4,395 Gross Profit 1,056 1,114 1,031 2,002 Operating Income 372 403 339 1,078 Income Before Income Taxes 369 323 260 982 Net Income 250 202 164 636 Net Income Per Basic Share (b) $ 0.86 $ 0.69 $ 0.56 $ 2.19 Net Income Per Diluted Share (b) $ 0.84 $ 0.68 $ 0.55 $ 2.15 ________________ (a) Includes the effect of a pre-tax gain of $78 million ( $69 million net of tax) included in other income, related to the sale of our remaining interest in the third-party apparel sourcing business. (b) Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. The following table provides summarized quarterly financial data for 2014 : Fiscal Quarter Ended May 3, 2014 August 2, 2014 November 1, 2014 January 31, 2015 (in millions except per share data) Net Sales $ 2,391 $ 2,675 $ 2,319 $ 4,069 Gross Profit 982 1,044 947 1,835 Operating Income 336 376 284 957 Income Before Income Taxes 255 296 205 880 Net Income 157 188 132 565 Net Income Per Basic Share (a) $ 0.54 $ 0.65 $ 0.45 $ 1.93 Net Income Per Diluted Share (a) $ 0.53 $ 0.63 $ 0.44 $ 1.89 ________________ (a) Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. |
Supplemental Guarantor Financ49
Supplemental Guarantor Financial Information Supplemental Guarantor Financial Information (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Supplemental Guarantor Financial Statements [Abstract] | |
Condensed Balance Sheet [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) January 30, 2016 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 2,190 $ 358 $ — $ 2,548 Accounts Receivable, Net 1 202 58 — 261 Inventories — 978 144 — 1,122 Other — 115 110 — 225 Total Current Assets 1 3,485 670 — 4,156 Property and Equipment, Net — 1,574 756 — 2,330 Goodwill — 1,318 — — 1,318 Trade Names and Other Intangible Assets, Net — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 5,368 13,649 1,242 (20,259 ) — Deferred Income Taxes — 11 19 — 30 Other Assets 141 40 679 (612 ) 248 Total Assets $ 5,510 $ 20,488 $ 3,366 $ (20,871 ) $ 8,493 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ — $ 333 $ 335 $ — $ 668 Accrued Expenses and Other 100 519 358 — 977 Current Portion of Long-term Debt — — 6 — 6 Income Taxes (3 ) 237 (10 ) — 224 Total Current Liabilities 97 1,089 689 — 1,875 Deferred Income Taxes (3 ) (86 ) 346 — 257 Long-term Debt 5,714 597 1 (597 ) 5,715 Other Long-term Liabilities — 670 248 (14 ) 904 Total Equity (Deficit) (298 ) 18,218 2,082 (20,260 ) (258 ) Total Liabilities and Equity (Deficit) $ 5,510 $ 20,488 $ 3,366 $ (20,871 ) $ 8,493 L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) January 31, 2015 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 1,462 $ 219 $ — $ 1,681 Accounts Receivable, Net 1 197 54 — 252 Inventories — 919 117 — 1,036 Other — 146 84 — 230 Total Current Assets 1 2,724 474 — 3,199 Property and Equipment, Net — 1,385 892 — 2,277 Goodwill — 1,318 — — 1,318 Trade Names and Other Intangible Assets, Net — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 4,635 14,003 1,405 (20,043 ) — Deferred Income Taxes — 9 15 — 24 Other Assets 145 30 682 (610 ) 247 Total Assets $ 4,781 $ 19,880 $ 3,468 $ (20,653 ) $ 7,476 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ — $ 300 $ 313 $ — $ 613 Accrued Expenses and Other 83 495 322 — 900 Income Taxes (4 ) 183 (13 ) — 166 Total Current Liabilities 79 978 622 — 1,679 Deferred Income Taxes (4 ) (62 ) 302 — 236 Long-term Debt 4,722 597 — (597 ) 4,722 Other Long-term Liabilities — 609 224 (13 ) 820 Total Equity (Deficit) (16 ) 17,758 2,320 (20,043 ) 19 Total Liabilities and Equity (Deficit) $ 4,781 $ 19,880 $ 3,468 $ (20,653 ) $ 7,476 |
Condensed Income Statement [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) 2015 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 11,475 $ 3,570 $ (2,891 ) $ 12,154 Costs of Goods Sold, Buying and Occupancy — (6,843 ) (2,858 ) 2,751 (6,950 ) Gross Profit — 4,632 712 (140 ) 5,204 General, Administrative and Store Operating Expenses (12 ) (2,688 ) (440 ) 128 (3,012 ) Operating Income (Loss) (12 ) 1,944 272 (12 ) 2,192 Interest Expense (334 ) (38 ) (9 ) 47 (334 ) Other Income — 5 71 — 76 Income (Loss) Before Income Taxes (346 ) 1,911 334 35 1,934 Provision (Benefit) for Income Taxes (2 ) 478 205 — 681 Equity in Earnings, Net of Tax 1,597 94 348 (2,039 ) — Net Income (Loss) $ 1,253 $ 1,527 $ 477 $ (2,004 ) $ 1,253 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) 2014 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Sales $ — $ 10,711 $ 3,343 $ (2,600 ) $ 11,454 Costs of Goods Sold, Buying and Occupancy — (6,449 ) (2,611 ) 2,414 (6,646 ) Gross Profit — 4,262 732 (186 ) 4,808 General, Administrative and Store Operating Expenses (6 ) (2,538 ) (446 ) 135 (2,855 ) Operating Income (Loss) (6 ) 1,724 286 (51 ) 1,953 Interest Expense (324 ) (35 ) (9 ) 44 (324 ) Other Income 1 — 6 — 7 Income (Loss) Before Income Taxes (329 ) 1,689 283 (7 ) 1,636 Provision (Benefit) for Income Taxes (3 ) 385 212 — 594 Equity in Earnings, Net of Tax 1,368 46 316 (1,730 ) — Net Income (Loss) $ 1,042 $ 1,350 $ 387 $ (1,737 ) $ 1,042 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) 2013 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Sales $ — $ 10,047 $ 3,190 $ (2,464 ) $ 10,773 Costs of Goods Sold, Buying and Occupancy — (6,096 ) (2,598 ) 2,350 (6,344 ) Gross Profit — 3,951 592 (114 ) 4,429 General, Administrative and Store Operating Expenses (5 ) (2,403 ) (394 ) 116 (2,686 ) Operating Income (Loss) (5 ) 1,548 198 2 1,743 Interest Expense (314 ) (28 ) (11 ) 39 (314 ) Other Income — — 17 — 17 Income (Loss) Before Income Taxes (319 ) 1,520 204 41 1,446 Provision (Benefit) for Income Taxes — 305 238 — 543 Equity in Earnings, Net of Tax 1,222 118 462 (1,802 ) — Net Income (Loss) $ 903 $ 1,333 $ 428 $ (1,761 ) $ 903 |
Condensed Comprehensive Income Statement [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) 2013 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Income (Loss) $ 903 $ 1,333 $ 428 $ (1,761 ) $ 903 Other Comprehensive Income (Loss), Net of Tax: Reclassification of Cash Flow Hedges to Earnings — — (50 ) — (50 ) Foreign Currency Translation — — 40 — 40 Unrealized Gain (Loss) on Cash Flow Hedges — — 46 — 46 Total Other Comprehensive Income (Loss), Net of Tax — — 36 — 36 Total Comprehensive Income $ 903 $ 1,333 $ 464 $ (1,761 ) $ 939 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) 2014 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Income (Loss) $ 1,042 $ 1,350 $ 387 $ (1,737 ) $ 1,042 Other Comprehensive Income (Loss), Net of Tax: Reclassification of Cash Flow Hedges to Earnings — — (60 ) — (60 ) Foreign Currency Translation — — 21 — 21 Unrealized Gain (Loss) on Cash Flow Hedges — — 34 — 34 Total Other Comprehensive Income (Loss), Net of Tax — — (5 ) — (5 ) Total Comprehensive Income $ 1,042 $ 1,350 $ 382 $ (1,737 ) $ 1,037 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) 2015 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Income (Loss) $ 1,253 $ 1,527 $ 477 $ (2,004 ) $ 1,253 Other Comprehensive Income (Loss), Net of Tax: Reclassification of Cash Flow Hedges to Earnings — — 14 — 14 Foreign Currency Translation — — (23 ) — (23 ) Unrealized Gain on Cash Flow Hedges — — 6 — 6 Unrealized Gain on Marketable Securities — — 8 — 8 Total Other Comprehensive Income (Loss), Net of Tax — — 5 — 5 Total Comprehensive Income $ 1,253 $ 1,527 $ 482 $ (2,004 ) $ 1,258 |
Condensed Cash Flow Statement [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) 2014 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ (333 ) $ 1,677 $ 442 $ — $ 1,786 Investing Activities: Capital Expenditures — (486 ) (229 ) — (715 ) Other Investing Activities — (1 ) 17 — 16 Net Cash Used for Investing Activities — (487 ) (212 ) — (699 ) Financing Activities: Payments of Long-term Debt (213 ) — — — (213 ) Borrowings from Revolving Facilities — — 5 — 5 Repayments on Revolving Facilities — — (5 ) — (5 ) Repurchase of Common Stock (87 ) — — — (87 ) Dividends Paid (691 ) — — — (691 ) Excess Tax Benefits from Share-based Compensation — 37 6 — 43 Net Financing Activities and Advances to/from Consolidated Affiliates 1,295 (1,118 ) (177 ) — — Proceeds From Exercise of Stock Options 35 — — — 35 Financing Costs and Other (6 ) — — — (6 ) Net Cash Provided by (Used for) Financing Activities 333 (1,081 ) (171 ) — (919 ) Effects of Exchange Rate Changes on Cash — — (6 ) — (6 ) Net Increase (Decrease) in Cash and Cash Equivalents — 109 53 — 162 Cash and Cash Equivalents, Beginning of Year — 1,353 166 — 1,519 Cash and Cash Equivalents, End of Year $ — $ 1,462 $ 219 $ — $ 1,681 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) 2013 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ (302 ) $ 1,323 $ 227 $ — $ 1,248 Investing Activities: Capital Expenditures — (475 ) (216 ) — (691 ) Return of Capital from Third-party Apparel Sourcing Business Investment — — 46 — 46 Other Investing Activities — — (10 ) — (10 ) Net Cash Used for Investing Activities — (475 ) (180 ) — (655 ) Financing Activities: Proceeds from Issuance of Long-term Debt, Net of Issuance Costs 495 — — — 495 Borrowings from Revolving Facilities 290 — — — 290 Repayments on Revolving Facilities (290 ) — — — (290 ) Repurchase of Common Stock (60 ) — — — (60 ) Dividends Paid (349 ) — — — (349 ) Excess Tax Benefits from Share-based Compensation — 31 5 — 36 Net Financing Activities and Advances to/from Consolidated Affiliates 184 57 (241 ) — — Proceeds From Exercise of Stock Options 32 — — — 32 Net Cash Provided by (Used for) Financing Activities 302 88 (236 ) — 154 Effects of Exchange Rate Changes on Cash — — (1 ) — (1 ) Net Increase (Decrease) in Cash and Cash Equivalents — 936 (190 ) — 746 Cash and Cash Equivalents, Beginning of Year — 417 356 — 773 Cash and Cash Equivalents, End of Year $ — $ 1,353 $ 166 $ — $ 1,519 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) 2015 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ (322 ) $ 1,835 $ 356 $ — $ 1,869 Investing Activities: Capital Expenditures — (506 ) (221 ) — (727 ) Proceeds from Sale of Assets — — 196 — 196 Proceeds from Divestiture of Third-party Apparel Sourcing Business — 1 84 — 85 Proceeds from Sale of Marketable Securities — 50 — — 50 Purchases of Marketable Securities — (50 ) (10 ) — (60 ) Other Investing Activities — — 13 — 13 Net Cash Used for Investing Activities — (505 ) 62 — (443 ) Financing Activities: Proceeds from Issuance of Long-term Debt, Net of Issuance Costs 988 — — — 988 Borrowings from Revolving Facilities — — 7 — 7 Repurchase of Common Stock (483 ) — — — (483 ) Dividends Paid (1,171 ) — — — (1,171 ) Excess Tax Benefits from Share-based Compensation — 62 8 — 70 Net Financing Activities and Advances to/from Consolidated Affiliates 955 (662 ) (293 ) — — Proceeds From Exercise of Stock Options 33 — — — 33 Financing Costs and Other — (2 ) — — (2 ) Net Cash Provided by (Used for) Financing Activities 322 (602 ) (278 ) — (558 ) Effects of Exchange Rate Changes on Cash — — (1 ) — (1 ) Net Increase in Cash and Cash Equivalents — 728 139 — 867 Cash and Cash Equivalents, Beginning of Year — 1,462 219 — 1,681 Cash and Cash Equivalents, End of Year $ — $ 2,190 $ 358 $ — $ 2,548 |
Description of Business and S50
Description of Business and Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016USD ($) | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | |
Marketable Securities, Equity Securities, Current | $ 10 | ||
Deferred Rent Credit, Noncurrent | $ 150 | $ 142 | |
Maturity of short term investments, maximum, in days | 90 | ||
Outstanding Check Carrying Amount | $ 30 | 42 | |
Catalogue and advertising expense | 414 | 436 | $ 452 |
Unamortized portion of landlord allowances | 212 | $ 192 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | $ 12 |
Description of Business and S51
Description of Business and Summary of Significant Accounting Policies (Depreciable Life Range of Property Plant and Equipment) (Details) | 12 Months Ended |
Jan. 30, 2016 | |
Software, including software developed for internal use | |
Depreciable Life Range | 3 - 7 years |
Store related assets | |
Depreciable Life Range | 3 - 10 years |
Leasehold improvements | |
Depreciable Life Range | Shorter of lease term or 10 years |
Non-store related building and site improvements | |
Depreciable Life Range | 10 - 15 years |
Other property and equipment | |
Depreciable Life Range | 20 years |
Buildings | |
Depreciable Life Range | 30 years |
New Accounting Pronouncements D
New Accounting Pronouncements Debt Issuance costs (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized Debt Issuance Expense | $ 47 | $ 43 |
New Accounting Pronouncements53
New Accounting Pronouncements Deferred Income Taxes (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred Income Taxes and Other Assets, Current | $ 35 | $ 33 |
Deferred Income Tax Assets, Net | 8 | 8 |
Deferred Income Tax Liabilities, Net | $ 27 | $ 25 |
Earnings Per Share (Shares Util
Earnings Per Share (Shares Utilized for the Calculation of Basic and Diluted Earnings per Share) (Details) - shares shares in Millions | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | ||
Weighted-average Common Shares: | ||||
Issued Shares | 312 | 309 | 306 | |
Treasury Shares | (21) | (17) | (16) | |
Basic Shares | 291 | 292 | 290 | |
Effect of Dilutive Options and Restricted Stock | 6 | 6 | 6 | |
Diluted Shares | 297 | 298 | 296 | |
Anti-dilutive Options and Awards | [1] | 1 | 1 | 1 |
[1] | These options and awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. |
Property and Equipment, Net (Na
Property and Equipment, Net (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2015 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Depreciation expense | $ 457 | $ 438 | $ 406 | |
Property, Plant and Equipment, Net | $ 2,330 | $ 2,277 | ||
Sale Leaseback Transaction, Net Book Value | $ 177 | |||
Sale Leaseback Transaction, Gross Proceeds, Investing Activities | $ 178 |
Property and Equipment, Net (De
Property and Equipment, Net (Details of Property and Equipment, Net) (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 108 | $ 87 |
Buildings and Improvements | 460 | 413 |
Furniture, Fixtures, Software and Equipment | 3,181 | 3,169 |
Leasehold Improvements | 1,809 | 1,647 |
Construction in Progress | 81 | 164 |
Total | 5,639 | 5,480 |
Accumulated Depreciation and Amortization | (3,309) | (3,203) |
Property and Equipment, Net | $ 2,330 | $ 2,277 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Inventory, Net [Abstract] | ||
Finished Goods Merchandise | $ 1,014 | $ 942 |
Raw Materials and Merchandise Components | 108 | 94 |
Total Inventories | $ 1,122 | $ 1,036 |
Goodwill, Trade Names and Oth58
Goodwill, Trade Names and Other Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Feb. 01, 2014 | Jan. 31, 2015 | |
Goodwill | $ 1,318 | $ 1,318 | |
Amortization of Intangible Assets | 0 | $ 1 | |
Victoria's Secret Segment [Member] | |||
Goodwill | $ 690 | $ 690 |
Goodwill, Trade Names and Oth59
Goodwill, Trade Names and Other Intangible Assets, Net (Schedule of Goodwill) (Details) $ in Millions | Jan. 30, 2016USD ($) |
Goodwill, beginning balance | $ 1,318 |
Goodwill, ending balance | 1,318 |
Victoria's Secret Segment [Member] | |
Goodwill, beginning balance | 690 |
Goodwill, ending balance | 690 |
Bath & Body Works Segment [Member] | |
Goodwill, beginning balance | 628 |
Goodwill, ending balance | $ 628 |
Goodwill, Trade Names and Oth60
Goodwill, Trade Names and Other Intangible Assets, Net Goodwill, Trade Names and Other Intangible Assets, Net (Intangible Assets - Indefinite Lives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Feb. 01, 2014 | Jan. 31, 2015 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 0 | $ 1 | |
Indefinite-Lived Trade Names | 411 | $ 411 | |
Victoria's Secret [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-Lived Trade Names | 246 | 246 | |
Bath & Body Works [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-Lived Trade Names | $ 165 | $ 165 |
Equity Investments and Other (D
Equity Investments and Other (Details) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016USD ($)a | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | |
Return of Capital | $ 0 | $ 0 | $ 46 |
Third Party Sourcing Business [Member] | |||
Cash distribution from equity method investment | 2 | 64 | |
Return of Capital | 46 | ||
Proceeds from Equity Method Investment (Operating) | $ 18 | ||
Equity method investment carrying value | 8 | ||
Equity Method Investment, Net Sales Proceeds | 85 | ||
Equity Method Investment, Realized Gain (Loss) on Disposal | 78 | ||
Equity Method Investment, Realized Gain (Loss) on Disposal Net of Tax | 69 | ||
Easton Investment [Member] | |||
Equity method investment carrying value | $ 86 | $ 101 | |
Acres Of Land | a | 1,300 | ||
Easton Town Center Investment [Member] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 77 |
Accrued Expenses and Other (Det
Accrued Expenses and Other (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Accrued Liabilities, Current [Abstract] | ||
Deferred Revenue, Principally from Gift Card Sales | $ 243 | $ 227 |
Compensation, Payroll Taxes and Benefits | 238 | 244 |
Taxes, Other than Income | 76 | 71 |
Accrued Rent, Current | 48 | 28 |
Interest | 100 | 82 |
Accrued Claims on Self-insured Activities | 35 | 37 |
Returns Reserve | 27 | 26 |
Other | 210 | 185 |
Total Accrued Expenses and Other | $ 977 | $ 900 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Pre-tax income (loss),Non-US, arising principally from overseas operations | $ 267 | $ 152 | $ 131 | |
Deferred Non-US Income Tax Expense (Benefit) | 12 | (1) | (4) | |
Excess Tax Benefits from Share-based Compensation | 70 | 43 | 36 | |
Undistributed Earnings of Foreign Subsidiaries | 454 | |||
Income tax payments | 507 | 526 | 468 | |
Unrecognized Tax Benefits | 248 | 193 | 167 | $ 185 |
Unrecognized tax benefits resulting in reduction of effective income tax rate | 217 | 170 | 143 | |
Unrecognized tax benefits reasonably possible change in the next twelve months | 178 | |||
Interest and penalties related to unrecognized tax benefits of income tax expense | 7 | 1 | $ 4 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 38 | $ 31 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Current | |||
U.S. Federal | $ 553 | $ 454 | $ 407 |
U.S. State | 96 | 69 | 90 |
Non-U.S. | 21 | 21 | 28 |
Total | 670 | 544 | 525 |
Deferred | |||
U.S. Federal | 17 | 46 | 11 |
U.S. State | 6 | 3 | 3 |
Non-U.S. | (12) | 1 | 4 |
Total | 11 | 50 | 18 |
Provision for Income Taxes | $ 681 | $ 594 | $ 543 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the Statutory Federal Income Tax Rate and the Effective Tax Rate) (Details) | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Federal Income Tax Rate | 35.00% | 35.00% | 35.00% |
State Income Taxes, Net of Federal Income Tax Effect | 3.40% | 3.60% | 3.80% |
Effective Income Tax Rate Reconciliation Foreign Portion Of Divestiture Of Business | (0.90%) | 0.00% | 0.00% |
Impact of Non-U.S. Operations | (1.70%) | (1.30%) | (1.40%) |
Other Items, Net | (0.60%) | (1.00%) | 0.10% |
Effective Tax Rate | 35.20% | 36.30% | 37.50% |
Income Taxes (Effect of Tempora
Income Taxes (Effect of Temporary Differences that Cause Deferred Income Taxes) (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Deferred Income Taxes and Other Assets, Current | $ 35 | $ 33 |
Undistributed Earnings of Foreign Subsidiaries | 454 | |
Assets | 259 | 225 |
Deferred Tax Liabilities, Gross, Noncurrent | 486 | 437 |
Liabilities | (227) | (212) |
Deferred Income Tax Assets, Net | 8 | 8 |
Deferred Income Tax Liabilities, Net | 27 | 25 |
Leases [Member] | ||
Assets | 54 | 49 |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Liabilities | (54) | (49) |
Non-qualified Retirement Plan [Member] | ||
Assets | 103 | 97 |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Liabilities | (103) | (97) |
Property and Equipment [Member] | ||
Assets | 0 | 0 |
Deferred Tax Liabilities, Gross, Noncurrent | 330 | 283 |
Liabilities | (330) | (283) |
Goodwill [Member] | ||
Assets | 0 | 0 |
Deferred Tax Liabilities, Gross, Noncurrent | 15 | 15 |
Liabilities | (15) | (15) |
Trade Names and Other Intangibles [Member] | ||
Assets | 0 | 0 |
Deferred Tax Liabilities, Gross, Noncurrent | 141 | 139 |
Liabilities | (141) | (139) |
State Net Operating Loss Carryforwards [Member] | ||
Assets | 17 | 18 |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Liabilities | (17) | (18) |
Non-U.S. Operating Loss Carryforwards [Member] | ||
Assets | 157 | 158 |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Liabilities | (157) | (158) |
Valuation Allowance [Member] | ||
Assets | (164) | (177) |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Liabilities | (164) | (177) |
Other, Net [Member] | ||
Assets | 92 | 80 |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Liabilities | $ (92) | $ (80) |
Income Taxes (Activity Related
Income Taxes (Activity Related to its Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year | $ 193 | $ 167 | $ 185 |
Increases in Tax Benefits for Prior Years | 8 | 16 | 39 |
Decreases in Tax Benefits for Prior Years | (3) | (14) | (54) |
Increases in Unrecognized Tax Benefits as a Result of Current Year Activity | 54 | 36 | 37 |
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities | 0 | (5) | (34) |
Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations | (4) | (7) | (6) |
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year | $ 248 | $ 193 | $ 167 |
Long-term Debt (Narrative) (Det
Long-term Debt (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Nov. 02, 2013 | Oct. 31, 2015 | Aug. 01, 2015 | Jan. 31, 2015 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Oct. 10, 2013 | |
Repayments on Revolving Facilities | $ 0 | $ (5) | $ (290) | |||||
Cash paid for interest | 317 | 328 | 300 | |||||
Proceeds from Issuance of Long-term Debt | $ 988 | $ 0 | $ 495 | |||||
Fixed Rate 5.625% Notes Due October 2023 [Member] | ||||||||
Debt instrument, face amount | $ 500 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | |||||||
Proceeds from Issuance of Long-term Debt | $ 495 | |||||||
Fixed Rate 5.25% Notes Due November 2014 [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% | ||||||
Repayments of Debt | $ 213 | |||||||
Revolving Credit Facility [Member] | Revolving Credit Expiring July 2016 [Member] | ||||||||
Repayments on Revolving Facilities | $ (290) | $ (5) |
Long-term Debt (Schedule of Lon
Long-term Debt (Schedule of Long-term Debt Instruments) (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Nov. 02, 2013 | Oct. 31, 2015 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Oct. 10, 2013 | ||
Senior unsecured debt with subsidiary guarantee | $ 4,354 | $ 3,364 | |||||
Senior unsecured debt | 1,367 | 1,358 | |||||
Total | 5,721 | 4,722 | |||||
Current portion of long-term debt | (6) | 0 | |||||
Total long-term debt, net of current portion | 5,715 | 4,722 | |||||
Unamortized Debt Issuance Expense | 47 | 43 | |||||
Proceeds from Issuance of Long-term Debt | 988 | 0 | $ 495 | ||||
Fixed Rate 6.875% Notes Due November 2035 [Member] | |||||||
Senior unsecured debt with subsidiary guarantee | 988 | 0 | |||||
Principal balance outstanding | $ 1,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.875% | ||||||
Proceeds from Issuance of Long-term Debt | $ 988 | ||||||
Debt Issuance Cost | $ 12 | ||||||
Fixed Rate 5.625% Notes Due February 2022 [Member] | |||||||
Senior unsecured debt with subsidiary guarantee | 991 | 989 | |||||
Fixed Rate 6.625% Notes Due April 2021 [Member] | |||||||
Senior unsecured debt with subsidiary guarantee | 990 | 988 | |||||
Fixed Rate 5.625% Notes Due October 2023 [Member] | |||||||
Senior unsecured debt with subsidiary guarantee | 496 | 496 | |||||
Principal balance outstanding | $ 500 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | ||||||
Proceeds from Issuance of Long-term Debt | $ 495 | ||||||
Debt Issuance Cost | $ 5 | ||||||
Fixed Rate 8.50% Notes Due June 2019 [Member] | |||||||
Senior unsecured debt with subsidiary guarantee | [1] | 493 | 496 | ||||
Interest Rate Fair Value Hedge Derivative at Fair Value, Net | 2 | 8 | |||||
Fixed Rate 7.00% Notes Due May 2020 [Member] | |||||||
Senior unsecured debt with subsidiary guarantee | 396 | 395 | |||||
Fixed Rate 6.90% Notes Due July 2017 [Member] | |||||||
Senior unsecured debt | 715 | 713 | |||||
Interest Rate Fair Value Hedge Derivative at Fair Value, Net | 16 | 15 | |||||
Fixed Rate 6.95% Debentures Due March 2033 [Member] | |||||||
Senior unsecured debt | 348 | 348 | |||||
Fixed Rate 7.60% Notes Due July 2037 [Member] | |||||||
Senior unsecured debt | 297 | $ 297 | |||||
Fixed Rate 5.25% Notes Due November 2014 [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | ||||||
Foreign Revolving Credit Expiring Nov 2016 to Jul 2017 [Member] | |||||||
Other Borrowings | 7 | $ 0 | |||||
L Brands, Inc. [Member] | |||||||
Current portion of long-term debt | 0 | ||||||
Total long-term debt, net of current portion | 5,714 | $ 4,722 | |||||
Proceeds from Issuance of Long-term Debt | $ 988 | $ 495 | |||||
[1] | (a)The balance includes a fair value interest rate hedge adjustment which increased the debt balance by $2 million as of January 30, 2016 and $8 million as of January 31, 2015. |
Long-term Debt (Schedule of Pri
Long-term Debt (Schedule of Principal Payments on Long-term Debt) (Details) $ in Millions | Jan. 30, 2016USD ($) |
2,014 | $ 6 |
2,015 | 701 |
2,016 | 0 |
2,017 | 500 |
2,018 | 400 |
Thereafter | $ 4,150 |
Long-term Debt Long-term debt (
Long-term Debt Long-term debt (Revolving Facility and Letters of Credit (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Oct. 31, 2015USD ($) | Aug. 01, 2015USD ($) | Aug. 02, 2014USD ($) | Nov. 02, 2013USD ($) | Jan. 30, 2016USD ($) | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | |
Line of Credit Facility [Line Items] | |||||||
Borrowings from Revolving Facilities | $ 7 | $ 5 | $ 290 | ||||
Repayments on Revolving Facilities | 0 | (5) | $ (290) | ||||
Revolving Credit Facility [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Amount Outstanding | 0 | ||||||
Revolving Credit Facility [Member] | Revolving Credit Expiring July 2016 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000 | ||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||||
Line of Credit Financial Covenant, Fixed Charge Coverage Ratio | 1.75 | ||||||
Line of Credit Financial Covenant, Ratio of Consolidated Debt to Consolidated EBITDA | 4 | ||||||
Debt to EBITDA ratio required for unlimited investments and restricted payments | 3 | ||||||
Line of Credit Financial Covenant Ratio of Consolidated Debt to Consolidated EBITDA Maximum Current Rate | 3 | ||||||
Borrowings from Revolving Facilities | $ 290 | ||||||
Repayments on Revolving Facilities | $ (290) | $ (5) | |||||
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 140 | ||||||
Revolving Credit Facility [Member] | Revolving Credit Expiring July 2019 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||||
Borrowings from Revolving Facilities | $ 5 | ||||||
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 5 | ||||||
Revolving Credit Facility [Member] | Amendment [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Payments of Debt Restructuring Costs | $ 5 | ||||||
Revolving Credit Facility [Member] | Foreign Revolving Credit Expiring Nov 2016 to Jul 2017 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 0 | ||||||
Borrowings from Revolving Facilities | 7 | ||||||
Line of Credit Facility, Maximum Amount Outstanding During Period | 7 | ||||||
Line of Credit Facility, Amount Outstanding | 7 | ||||||
Letter of Credit [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Amount Outstanding | $ 8 | ||||||
Letter of Credit [Member] | Revolving Credit Facility [Member] | Revolving Credit Expiring July 2016 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Commitment Fee Percentage | 1.50% |
Derivative Instruments Derivati
Derivative Instruments Derivative Instruments (Foreign Exchange Contracts - Cash Flow Hedging Disclosure) (Details) CAD in Millions | 12 Months Ended | |||||
Jan. 30, 2016USD ($) | Jan. 31, 2015USD ($) | Jan. 30, 2016CAD | Jan. 31, 2015CAD | Jan. 31, 2007CAD | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (Loss) on Foreign Currency Cash Flow Hedge Ineffectiveness | $ 0 | |||||
Other Comprehensive Income (Loss) [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | 6,000,000 | $ 34,000,000 | ||||
Other Income [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | [1] | $ (14,000,000) | 60,000,000 | |||
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative, Notional Amount | CAD | CAD 170 | CAD 200 | CAD 470 | |||
Gain (loss) on foreign currency cash flow hedge discontinuance | 4,000,000 | |||||
Foreign Currency Gain (Loss) | $ 6,000,000 | |||||
[1] | Represents reclassification of amounts from accumulated other comprehensive income to earnings to completely offset foreign currency transaction gains and losses recognized on the intercompany loans. No ineffectiveness was associated with these foreign exchange cash flow hedges. |
Derivative Instruments Fair Val
Derivative Instruments Fair Value Derivatives, Balance Sheet Location, by Derivative Contract Type (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 27 | $ 21 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Fair Value Hedge Asset at Fair Value | 11 | 12 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 27 | $ 21 |
Derivative Instruments Deriva74
Derivative Instruments Derivative Instruments (Interest Rate Contracts - Fair Value Hedging Disclosure) (Details) - Fair Value Hedging [Member] - Interest Rate Swap [Member] - USD ($) $ in Millions | Aug. 02, 2014 | Feb. 01, 2014 |
Fixed Rate 6.90% Notes Due July 2017 [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 100 | $ 200 |
Fixed Rate 8.50% Notes Due June 2019 [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 100 | $ 200 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Value and Fair Value of Long Term Debt) (Detail) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 | |
Fair Value Measurements [Abstract] | |||
Long-term Debt Principal Value | $ 5,750 | $ 4,750 | |
Fair Value | [1] | $ 6,209 | $ 5,305 |
[1] | The estimated fair value of the Company’s publicly traded debt is based on reported transaction prices which are considered Level 2 inputs in accordance with ASC Topic 820, Fair Value Measurements and Disclosure. The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange. |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 |
Assets: | |||
Cash and Cash Equivalents | $ 2,548 | $ 1,681 | |
Investments, Fair Value Disclosure | 22 | ||
Interest Rate Designated as Fair Value Hedges | 11 | 12 | |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 27 | 21 | |
Liabilities: | |||
Lease Guarantees | 1 | ||
Fair Value, Inputs, Level 1 | |||
Assets: | |||
Cash and Cash Equivalents | 2,548 | 1,681 | |
Investments, Fair Value Disclosure | 22 | ||
Interest Rate Designated as Fair Value Hedges | 0 | 0 | |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0 | 0 | |
Liabilities: | |||
Lease Guarantees | 0 | ||
Fair Value, Inputs, Level 2 | |||
Assets: | |||
Cash and Cash Equivalents | 0 | 0 | |
Investments, Fair Value Disclosure | 0 | ||
Interest Rate Designated as Fair Value Hedges | 11 | 12 | |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 27 | 21 | |
Liabilities: | |||
Lease Guarantees | 0 | ||
Fair Value, Inputs, Level 3 | |||
Assets: | |||
Cash and Cash Equivalents | 0 | 0 | |
Investments, Fair Value Disclosure | 0 | ||
Interest Rate Designated as Fair Value Hedges | 0 | 0 | |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0 | 0 | |
Liabilities: | |||
Lease Guarantees | $ 0 | $ 1 | $ 1 |
Fair Value Measurements (Fair77
Fair Value Measurements (Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 1 | |
Ending Balance | $ 1 | |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 1 | 1 |
Change in Estimated Fair Value Reported in Earnings | (1) | 0 |
Ending Balance | $ 0 | $ 1 |
Comprehensive Income (Loss) (De
Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Accumulated Other Comprehensive Income Beginning Balance | $ 35 | $ 40 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (9) | 55 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 14 | (60) | |
Total Other Comprehensive Income (Loss), Net of Tax | 5 | (5) | $ 36 |
Accumulated Other Comprehensive Income Ending Balance | 40 | 35 | 40 |
Accumulated Translation Adjustment [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Accumulated Other Comprehensive Income Beginning Balance | 51 | 30 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (23) | 21 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | |
Total Other Comprehensive Income (Loss), Net of Tax | (23) | 21 | |
Accumulated Other Comprehensive Income Ending Balance | 28 | 51 | 30 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Accumulated Other Comprehensive Income Beginning Balance | (16) | 10 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 6 | 34 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 14 | (60) | |
Total Other Comprehensive Income (Loss), Net of Tax | 20 | (26) | |
Accumulated Other Comprehensive Income Ending Balance | 4 | (16) | 10 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Accumulated Other Comprehensive Income Beginning Balance | 0 | 0 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 8 | 0 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | |
Total Other Comprehensive Income (Loss), Net of Tax | 8 | 0 | |
Accumulated Other Comprehensive Income Ending Balance | $ 8 | $ 0 | $ 0 |
Comprehensive Income Reclassifi
Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Other Income | $ 76 | $ 7 | $ 17 | ||||||||
Provision for Income Taxes | 681 | 594 | 543 | ||||||||
Net Income | $ 636 | $ 164 | $ 202 | $ 250 | $ 565 | $ 132 | $ 188 | $ 157 | 1,253 | 1,042 | $ 903 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Other Income | 14 | (60) | |||||||||
Provision for Income Taxes | 0 | 0 | |||||||||
Net Income | $ 14 | $ (60) |
Leases (Leases Rent Expenses) (
Leases (Leases Rent Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Leases [Abstract] | |||
Fixed minimum, store rent | $ 535 | $ 516 | $ 482 |
Contingent, store rent | 73 | 63 | 59 |
Total store rent | 608 | 579 | 541 |
Office, equipment and other | 77 | 68 | 72 |
Gross rent expense | 685 | 647 | 613 |
Sublease rental income | (2) | (2) | (2) |
Total rent expense | $ 683 | $ 645 | $ 611 |
Leases (Minimum Rent Commitment
Leases (Minimum Rent Commitments Operating Leases) (Details) $ in Millions | Jan. 30, 2016USD ($) | [1] |
Leases [Abstract] | ||
2,014 | $ 640 | |
2,015 | 625 | |
2,016 | 546 | |
2,017 | 500 | |
2,018 | 472 | |
Thereafter | $ 1,970 | |
[1] | Excludes additional payments covering taxes, common area costs and certain other expenses generally required by store lease terms. |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Sale Leaseback Transaction, Other Information | 105 | |
Property Lease Guarantee [Member] | ||
Lease guarantees remaining after disposition of certain businesses | $ 24 | |
Lease guarantees, estimated fair value | $ 3 | |
Property Lease Guarantee [Member] | Express Limited Stores and New York and Company [Member] | ||
Lease guarantees, estimated fair value | $ 1 |
Retirement Benefits (Details)
Retirement Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Retirement Benefits [Abstract] | |||
Expense Related to the Qualified Plan | $ 64 | $ 59 | $ 56 |
Non-Qualified Plan Table Text Block [Line Items] | |||
Non-Qualified Plan, Benefit Obligation | 274 | 257 | 243 |
Non-Qualified Plan, Contributions by Plan Participants | 15 | 10 | |
Non-Qualified Plan, Contributions by Employer | 17 | 10 | |
Non-Qualified Plan, Interest Cost | 13 | 14 | |
Non-Qualified Plan, Benefits Paid | (28) | (20) | |
Non-Qualified Plan [Member] | |||
Non-Qualified Plan Table Text Block [Line Items] | |||
Expense related to the Non-Qualified Plan | $ 30 | $ 24 | $ 22 |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) (Narrative) (Details) - USD ($) $ in Millions | Feb. 01, 2016 | Aug. 01, 2015 | May. 02, 2015 |
June 2015 Repurchase Program [Member] | |||
Stock Repurchase Program, Authorized Amount | $ 250 | ||
February 2015 Repurchase Program [Member] [Member] | |||
Stock Repurchase Program, Authorized Amount | $ 250 | ||
Subsequent Event [Member] | February 2016 Repurchase Program [Member] | |||
Stock Repurchase Program, Authorized Amount | $ 500 |
Shareholders' Equity (Deficit85
Shareholders' Equity (Deficit) (Schedule of Company's repurchase program) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 2 Months Ended | 12 Months Ended | 24 Months Ended | ||||||
Mar. 16, 2016 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 01, 2014 | Feb. 01, 2016 | Aug. 01, 2015 | May. 02, 2015 | Feb. 02, 2013 | |
Treasury Stock, Shares, Acquired | 5,468 | 1,317 | 1,377 | ||||||
Repurchase of Common Stock | $ 483 | $ 84 | $ 63 | ||||||
June 2015 Repurchase Program [Member] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 250 | ||||||||
Treasury Stock, Shares, Acquired | 2,680 | ||||||||
Repurchase of Common Stock | $ 233 | ||||||||
Average Stock Price of Shares Repurchased within Program | $ 87.06 | ||||||||
November 2012 Repurchase Program [Member] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 250 | ||||||||
Treasury Stock, Shares, Acquired | 1,317 | 1,377 | |||||||
Repurchase of Common Stock | $ 84 | $ 63 | |||||||
Average Stock Price of Shares Repurchased within Program | $ 54.02 | ||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 91 | ||||||||
February 2015 Repurchase Program [Member] [Member] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 250 | ||||||||
Treasury Stock, Shares, Acquired | 2,788 | ||||||||
Repurchase of Common Stock | $ 250 | ||||||||
Average Stock Price of Shares Repurchased within Program | $ 89.45 | ||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 0.6 | ||||||||
Subsequent Event [Member] | June 2015 Repurchase Program [Member] | |||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 17 | ||||||||
Subsequent Event [Member] | February 2016 Repurchase Program [Member] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 500 | ||||||||
Treasury Stock, Shares, Acquired | 2,500 | ||||||||
Repurchase of Common Stock | $ 211 | ||||||||
Accounts Payable [Member] | June 2015 Repurchase Program [Member] | |||||||||
Share repurchase reflected in Accounts payable | $ 0 | ||||||||
Accounts Payable [Member] | November 2012 Repurchase Program [Member] | |||||||||
Share repurchase reflected in Accounts payable | $ 0 |
Shareholders' Equity (Deficit86
Shareholders' Equity (Deficit) (Dividends Paid) (Details) - USD ($) $ / shares in Units, $ in Millions | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Mar. 16, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | May. 04, 2013 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.34 | $ 0.34 | $ 0.34 | $ 0.34 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 2 | $ 1.36 | $ 1.20 | |
Special Dividend To Common Stockholders Per Share Paid | 0 | 0 | 0 | 2 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 2 | 1 | 0 | |
Total Dividends Per Share Cash Paid | $ 0.50 | $ 0.50 | $ 0.50 | $ 2.50 | $ 0.34 | $ 0.34 | $ 0.34 | $ 1.34 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 4 | $ 2.36 | $ 1.20 | |
Dividends Paid | $ 145 | $ 146 | $ 146 | $ 734 | $ 100 | $ 100 | $ 99 | $ 392 | $ 88 | $ 87 | $ 87 | $ 87 | $ 1,171 | $ 691 | $ 349 | |
Common Stock, Dividends, Per Share, Declared | $ 0.50 | $ 4 | $ 2.36 | $ 1.20 | ||||||||||||
Dividend Declared [Member] | ||||||||||||||||
Dividends Paid | $ 748 | |||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.60 | |||||||||||||||
Special Dividends Per Share Declared | $ 2 |
Share-based Compensation (Narra
Share-based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Options, restricted and unrestricted shares authorized | 156 | ||
Options and shares available for grant | 17 | ||
Tax Benefit associated with share based compensation | $ 33 | $ 30 | $ 29 |
Stock Options [Member] | |||
Total intrinsic value of options exercised | 63 | 52 | $ 69 |
Total fair value at grant date of option awards vested | 11 | $ 11 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 19 | ||
Weighted average fair value of stock options granted | $ 15.27 | $ 11.74 | $ 9.71 |
Cash received from stock options exercised | $ 33 | $ 35 | $ 32 |
Total unrecognized compensation cost, weighted-average period of recognition, years | 3 years 14 days | ||
Tax benefits realized from tax deductions | $ 20 | 21 | 14 |
Restricted Stock [Member] | |||
Total intrinsic value of restricted stock vested | 217 | 128 | 106 |
Total fair value at grant date of awards vested | 80 | 56 | 40 |
Total unrecognized compensation cost, net of estimated forfeitures | $ 129 | ||
Total unrecognized compensation cost, weighted-average period of recognition, years | 2 years 8 months | ||
Tax benefits realized from tax deductions | $ 82 | $ 46 | $ 40 |
Share-based Compensation (Stock
Share-based Compensation (Stock Option Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jan. 30, 2016USD ($)$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding as of February 2, 2013, Number of Shares | 5,773 | |
Granted, Number of Shares | 797 | |
Exercised, Number of Shares | (1,060) | |
Cancelled, Number of Shares | (146) | |
Outstanding as of February 1, 2014, Number of Shares | 5,491 | |
Vested and Expected to Vest as of February 1, 2014, Number of Shares | 5,353 | [1] |
Options Exercisable as of February 1, 2014, Number of Shares | 2,897 | |
Outstanding as of February 2, 2013, Weighted Average Option Price Per Share | $ / shares | $ 34.93 | |
Granted, Weighted Average Option Price Per Share | $ / shares | 93.40 | |
Exercised, Weighted Average Option Price Per Share | $ / shares | 32.83 | |
Cancelled, Weighted Average Option Price Per Share | $ / shares | 58.53 | |
Outstanding as of February 1, 2014, Weighted Average Option Price Per Share | $ / shares | 42.40 | |
Vested and Expected to Vest as of February 1, 2014, Weighted Average Option Price Per Share | $ / shares | 41.60 | [1] |
Options Exercisable as of February 1, 2014, Weighted Average Options Price Per Share | $ / shares | $ 24.16 | |
Outstanding as of February 1, 2014, Weighted Average Remaining Contractual Life | 6 years 10 days | |
Vested and Expected to Vest as of February 1, 2014, Weighted Average Remaining Contractual Life | 5 years 11 months 16 days | [1] |
Options Exercisable as of February 1, 2014, Weighted Average Remaining Contractual Life | 4 years 3 months | |
Outstanding as of February 1, 2014, Aggregate Intrinsic Value | $ | $ 295,190 | |
Vested and Expected to Vest as of February 1, 2014, Aggregate Intrinsic Value | $ | 292,021 | [1] |
Options Exercisable as of February 1, 2014, Aggregate Intrinsic Value | $ | $ 208,534 | |
Dividends, Share-based Compensation, Cash | 127 | |
[1] | The number of options expected to vest includes an estimate of expected forfeitures. |
Share-based Compensation (Weigh
Share-based Compensation (Weighted-Average Assumptions) (Details) | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Share-based Compensation [Abstract] | |||
Expected Volatility | 26.00% | 30.00% | 35.00% |
Risk-free Interest Rate | 1.10% | 1.40% | 0.80% |
Dividend Yield | 2.70% | 3.00% | 3.40% |
Expected Life (in years) | 4 years 5 months 24 days | 4 years 6 months 26 days | 4 years 8 months 12 days |
Share-based Compensation (Restr
Share-based Compensation (Restricted Stock Activity) (Details) shares in Thousands | 12 Months Ended |
Jan. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Unvested as of February 2, 2013, Number of Shares | 6,773 |
Granted, Number of Shares | 1,488 |
Vested, Number of Shares | (2,342) |
Cancelled, Number of Shares | (277) |
Unvested as of February 1, 2014, Number of Shares | 5,791 |
Unvested as of February 2, 2013, Weighted Average Grant Date Fair Value | $ / shares | $ 41.06 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 85.61 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 34.01 |
Cancelled, Weighted Average Grant Date Fair Value | $ / shares | 57.88 |
Unvested as of February 1, 2014, Weighted Average Grant Date Fair Value | $ / shares | $ 54.41 |
Share-based Compensation Arrangement RS Special Dividend Share Adj: Stock Plan Anti-dilution Provision | 149 |
Share-based Compensation (Share
Share-based Compensation (Share-Based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Share-based Compensation Expense | $ 97 | $ 90 | $ 85 |
Costs of Goods Sold, Buying and Occupancy [Member] | |||
Share-based Compensation Expense | 27 | 24 | 22 |
General, Administrative and Store Operating Expenses [Member] | |||
Share-based Compensation Expense | $ 70 | $ 66 | $ 63 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 30, 2016USD ($) | Oct. 31, 2015USD ($) | Aug. 01, 2015USD ($) | May. 02, 2015USD ($) | Jan. 31, 2015USD ($) | Nov. 01, 2014USD ($) | Aug. 02, 2014USD ($) | May. 03, 2014USD ($) | Jan. 30, 2016USD ($)Reportable_Segments | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | |||
Number Of Reportable Segments (in reportable segments) | Reportable_Segments | 3 | ||||||||||||
Net Sales | $ 4,395 | $ 2,482 | $ 2,765 | $ 2,512 | $ 4,069 | $ 2,319 | $ 2,675 | $ 2,391 | $ 12,154 | $ 11,454 | $ 10,773 | ||
Depreciation and Amortization | 415 | 398 | 368 | ||||||||||
Operating Income (Loss) | 1,078 | $ 339 | $ 403 | $ 372 | 957 | $ 284 | $ 376 | $ 336 | 2,192 | 1,953 | [1] | 1,743 | [1] |
Total Assets | 8,493 | 7,476 | 8,493 | 7,476 | 7,128 | ||||||||
Capital Expenditures | 727 | 715 | 691 | ||||||||||
Victoria's Secret Segment [Member] | |||||||||||||
Net Sales | 7,672 | 7,207 | 6,884 | ||||||||||
Depreciation and Amortization | 218 | 198 | 175 | ||||||||||
Operating Income (Loss) | 1,391 | 1,271 | 1,153 | ||||||||||
Total Assets | 3,163 | 2,950 | 3,163 | 2,950 | 2,811 | ||||||||
Capital Expenditures | 411 | 446 | 444 | ||||||||||
Bath & Body Works Segment [Member] | |||||||||||||
Net Sales | 3,587 | 3,350 | 3,118 | ||||||||||
Depreciation and Amortization | 70 | 65 | 65 | ||||||||||
Operating Income (Loss) | 858 | 737 | 648 | ||||||||||
Total Assets | 1,556 | 1,365 | 1,556 | 1,365 | 1,369 | ||||||||
Capital Expenditures | 166 | 77 | 80 | ||||||||||
Victoria's Secret and Bath & Body Works International [Member] | |||||||||||||
Net Sales | 385 | 336 | 222 | ||||||||||
Depreciation and Amortization | 16 | 16 | 9 | ||||||||||
Operating Income (Loss) | 88 | 78 | 38 | ||||||||||
Total Assets | 436 | 369 | 436 | 369 | 290 | ||||||||
Capital Expenditures | 33 | 37 | 33 | ||||||||||
Other Operating Segment | |||||||||||||
Net Sales | 510 | 561 | 549 | ||||||||||
Depreciation and Amortization | 111 | 119 | 119 | ||||||||||
Operating Income (Loss) | (145) | (133) | [1] | (96) | [1] | ||||||||
Total Assets | $ 3,338 | $ 2,792 | 3,338 | 2,792 | 2,658 | ||||||||
Capital Expenditures | $ 117 | $ 155 | $ 134 | ||||||||||
[1] | Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. |
Segment Information (Additional
Segment Information (Additional Information) (Details) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016USD ($)Reportable_Segmentsspecialtystores | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | |
Number Of Reportable Segments (in reportable segments) | Reportable_Segments | 3 | ||
Henri Bendel [Member] | |||
Henri Bendel Specialty Stores Owned | specialtystores | 29 | ||
International [Member] | |||
International sales | $ 1,314 | $ 1,349 | $ 1,212 |
Internationally based Long-lived Assets | $ 319 | $ 293 |
Quarterly Financial Data (Una94
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||||
Net Sales | $ 4,395 | $ 2,482 | $ 2,765 | $ 2,512 | $ 4,069 | $ 2,319 | $ 2,675 | $ 2,391 | $ 12,154 | $ 11,454 | $ 10,773 | ||||||||||
Gross Profit | 2,002 | 1,031 | 1,114 | 1,056 | 1,835 | 947 | 1,044 | 982 | 5,204 | 4,808 | 4,429 | ||||||||||
Operating Income | 1,078 | 339 | 403 | 372 | 957 | 284 | 376 | 336 | 2,192 | 1,953 | [1] | 1,743 | [1] | ||||||||
Income Before Income Taxes | 982 | 260 | 323 | 369 | 880 | 205 | 296 | 255 | 1,934 | 1,636 | 1,446 | ||||||||||
Net Income | $ 636 | $ 164 | $ 202 | $ 250 | $ 565 | $ 132 | $ 188 | $ 157 | $ 1,253 | $ 1,042 | $ 903 | ||||||||||
Net Income Per Basic Share | $ 2.19 | [2] | $ 0.56 | [2] | $ 0.69 | [2] | $ 0.86 | [2] | $ 1.93 | [3] | $ 0.45 | [3] | $ 0.65 | [3] | $ 0.54 | [3] | $ 4.30 | $ 3.57 | $ 3.12 | ||
Net Income Per Diluted Share | $ 2.15 | [2] | $ 0.55 | [2] | $ 0.68 | [2] | $ 0.84 | [2] | $ 1.89 | [3] | $ 0.44 | [3] | $ 0.63 | [3] | $ 0.53 | [3] | $ 4.22 | $ 3.50 | $ 3.05 | ||
[1] | Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. | ||||||||||||||||||||
[2] | Includes the effect of a pre-tax gain of $78 million ($69 million net of tax) included in other income, related to the sale of our remaining interest in the third-party apparel sourcing business. | ||||||||||||||||||||
[3] | Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. |
Quarterly Financial Data (Una95
Quarterly Financial Data (Unaudited) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Return of Capital | $ 0 | $ 0 | $ 46 |
Third Party Sourcing Business [Member] | |||
Equity Method Investment, Realized Gain (Loss) on Disposal | 78 | ||
Return of Capital | $ 46 | ||
Equity Method Investment, Realized Gain (Loss) on Disposal Net of Tax | $ 69 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||
Mar. 16, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | May. 04, 2013 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 01, 2016 | Feb. 02, 2013 | |
Subsequent Event [Line Items] | ||||||||||||||||||
Treasury Stock, Shares, Acquired | 5,468 | 1,317 | 1,377 | |||||||||||||||
Repurchase of Common Stock | $ 483 | $ 84 | $ 63 | |||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.50 | $ 4 | $ 2.36 | $ 1.20 | ||||||||||||||
Payments of Ordinary Dividends, Common Stock | $ 145 | $ 146 | $ 146 | $ 734 | $ 100 | $ 100 | $ 99 | $ 392 | $ 88 | $ 87 | $ 87 | $ 87 | $ 1,171 | $ 691 | $ 349 | |||
Dividend Declared [Member] | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.60 | |||||||||||||||||
Special Dividends Per Share Declared | $ 2 | |||||||||||||||||
Payments of Ordinary Dividends, Common Stock | $ 748 | |||||||||||||||||
June 2015 Repurchase Program [Member] | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Stock Repurchase Program, Authorized Amount | 250 | |||||||||||||||||
Treasury Stock, Shares, Acquired | 2,680 | |||||||||||||||||
Repurchase of Common Stock | $ 233 | |||||||||||||||||
June 2015 Repurchase Program [Member] | Subsequent Event [Member] | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 17 | |||||||||||||||||
November 2012 Repurchase Program [Member] | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 250 | |||||||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 91 | |||||||||||||||||
Treasury Stock, Shares, Acquired | 1,317 | 1,377 | ||||||||||||||||
Repurchase of Common Stock | $ 84 | $ 63 | ||||||||||||||||
February 2015 Repurchase Program [Member] [Member] | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 250 | |||||||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 0.6 | |||||||||||||||||
Treasury Stock, Shares, Acquired | 2,788 | |||||||||||||||||
Repurchase of Common Stock | $ 250 | |||||||||||||||||
Third Party Sourcing Business [Member] | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Equity Method Investment, Net Sales Proceeds | 85 | |||||||||||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 78 |
Supplemental Guarantor Financ97
Supplemental Guarantor Financial Information (Narrative) (Details) | 12 Months Ended |
Jan. 30, 2016 | |
Minimum percentage of assets owned by domestic subsidiaries | 90.00% |
Minimum percentage of accounts receivable and inventory owned by domestic subsidiaries | 95.00% |
Supplemental Guarantor Financ98
Supplemental Guarantor Financial Information (Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Current Assets: | ||||
Cash and Cash Equivalents | $ 2,548 | $ 1,681 | $ 1,519 | $ 773 |
Accounts Receivable, Net | 261 | 252 | ||
Inventories | 1,122 | 1,036 | ||
Other | 225 | 230 | ||
Total Current Assets | 4,156 | 3,199 | ||
Property and Equipment, Net | 2,330 | 2,277 | ||
Goodwill | 1,318 | 1,318 | ||
Trade Names and Other Intangible Assets, Net | 411 | 411 | ||
Net Investments in and Advances to/from Consolidated Affiliates | 0 | 0 | ||
Deferred Tax Assets, Net, Noncurrent | 30 | 24 | ||
Other Assets | 248 | 247 | ||
Total Assets | 8,493 | 7,476 | 7,128 | |
Current Liabilities: | ||||
Accounts Payable | 668 | 613 | ||
Accrued Expenses and Other | 977 | 900 | ||
Current Portion of Long-term Debt | 6 | 0 | ||
Income Taxes | 224 | 166 | ||
Total Current Liabilities | 1,875 | 1,679 | ||
Deferred Income Taxes | 257 | 236 | ||
Long-term Debt | 5,715 | 4,722 | ||
Other Long-term Liabilities | 904 | 820 | ||
Total Equity (Deficit) | (258) | 19 | (369) | (1,014) |
Total Liabilities and Equity (Deficit) | 8,493 | 7,476 | ||
L Brands, Inc. [Member] | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 0 | 0 | 0 | 0 |
Accounts Receivable, Net | 1 | 1 | ||
Inventories | 0 | 0 | ||
Other | 0 | 0 | ||
Total Current Assets | 1 | 1 | ||
Property and Equipment, Net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Trade Names and Other Intangible Assets, Net | 0 | 0 | ||
Net Investments in and Advances to/from Consolidated Affiliates | 5,368 | 4,635 | ||
Deferred Tax Assets, Net, Noncurrent | 0 | 0 | ||
Other Assets | 141 | 145 | ||
Total Assets | 5,510 | 4,781 | ||
Current Liabilities: | ||||
Accounts Payable | 0 | 0 | ||
Accrued Expenses and Other | 100 | 83 | ||
Current Portion of Long-term Debt | 0 | |||
Income Taxes | (3) | (4) | ||
Total Current Liabilities | 97 | 79 | ||
Deferred Income Taxes | (3) | (4) | ||
Long-term Debt | 5,714 | 4,722 | ||
Other Long-term Liabilities | 0 | 0 | ||
Total Equity (Deficit) | (298) | (16) | ||
Total Liabilities and Equity (Deficit) | 5,510 | 4,781 | ||
Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 2,190 | 1,462 | 1,353 | 417 |
Accounts Receivable, Net | 202 | 197 | ||
Inventories | 978 | 919 | ||
Other | 115 | 146 | ||
Total Current Assets | 3,485 | 2,724 | ||
Property and Equipment, Net | 1,574 | 1,385 | ||
Goodwill | 1,318 | 1,318 | ||
Trade Names and Other Intangible Assets, Net | 411 | 411 | ||
Net Investments in and Advances to/from Consolidated Affiliates | 13,649 | 14,003 | ||
Deferred Tax Assets, Net, Noncurrent | 11 | 9 | ||
Other Assets | 40 | 30 | ||
Total Assets | 20,488 | 19,880 | ||
Current Liabilities: | ||||
Accounts Payable | 333 | 300 | ||
Accrued Expenses and Other | 519 | 495 | ||
Current Portion of Long-term Debt | 0 | |||
Income Taxes | 237 | 183 | ||
Total Current Liabilities | 1,089 | 978 | ||
Deferred Income Taxes | (86) | (62) | ||
Long-term Debt | 597 | 597 | ||
Other Long-term Liabilities | 670 | 609 | ||
Total Equity (Deficit) | 18,218 | 17,758 | ||
Total Liabilities and Equity (Deficit) | 20,488 | 19,880 | ||
Non-Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 358 | 219 | 166 | 356 |
Accounts Receivable, Net | 58 | 54 | ||
Inventories | 144 | 117 | ||
Other | 110 | 84 | ||
Total Current Assets | 670 | 474 | ||
Property and Equipment, Net | 756 | 892 | ||
Goodwill | 0 | 0 | ||
Trade Names and Other Intangible Assets, Net | 0 | 0 | ||
Net Investments in and Advances to/from Consolidated Affiliates | 1,242 | 1,405 | ||
Deferred Tax Assets, Net, Noncurrent | 19 | 15 | ||
Other Assets | 679 | 682 | ||
Total Assets | 3,366 | 3,468 | ||
Current Liabilities: | ||||
Accounts Payable | 335 | 313 | ||
Accrued Expenses and Other | 358 | 322 | ||
Current Portion of Long-term Debt | 6 | |||
Income Taxes | (10) | (13) | ||
Total Current Liabilities | 689 | 622 | ||
Deferred Income Taxes | 346 | 302 | ||
Long-term Debt | 1 | 0 | ||
Other Long-term Liabilities | 248 | 224 | ||
Total Equity (Deficit) | 2,082 | 2,320 | ||
Total Liabilities and Equity (Deficit) | 3,366 | 3,468 | ||
Eliminations | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts Receivable, Net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other | 0 | 0 | ||
Total Current Assets | 0 | 0 | ||
Property and Equipment, Net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Trade Names and Other Intangible Assets, Net | 0 | 0 | ||
Net Investments in and Advances to/from Consolidated Affiliates | (20,259) | (20,043) | ||
Deferred Tax Assets, Net, Noncurrent | 0 | 0 | ||
Other Assets | (612) | (610) | ||
Total Assets | (20,871) | (20,653) | ||
Current Liabilities: | ||||
Accounts Payable | 0 | 0 | ||
Accrued Expenses and Other | 0 | 0 | ||
Current Portion of Long-term Debt | 0 | |||
Income Taxes | 0 | 0 | ||
Total Current Liabilities | 0 | 0 | ||
Deferred Income Taxes | 0 | 0 | ||
Long-term Debt | (597) | (597) | ||
Other Long-term Liabilities | (14) | (13) | ||
Total Equity (Deficit) | (20,260) | (20,043) | ||
Total Liabilities and Equity (Deficit) | $ (20,871) | $ (20,653) |
Supplemental Guarantor Financ99
Supplemental Guarantor Financial Information (Condensed Consolidating Statements of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |||
Net Sales | $ 4,395 | $ 2,482 | $ 2,765 | $ 2,512 | $ 4,069 | $ 2,319 | $ 2,675 | $ 2,391 | $ 12,154 | $ 11,454 | $ 10,773 | ||
Costs of Goods Sold, Buying and Occupancy | (6,950) | (6,646) | (6,344) | ||||||||||
Gross Profit | 2,002 | 1,031 | 1,114 | 1,056 | 1,835 | 947 | 1,044 | 982 | 5,204 | 4,808 | 4,429 | ||
General, Administrative and Store Operating Expenses | (3,012) | (2,855) | (2,686) | ||||||||||
Operating Income (Loss) | 1,078 | 339 | 403 | 372 | 957 | 284 | 376 | 336 | 2,192 | 1,953 | [1] | 1,743 | [1] |
Interest Expense | (334) | (324) | (314) | ||||||||||
Other Income (Loss) | 76 | 7 | 17 | ||||||||||
Income Before Income Taxes | $ 982 | $ 260 | $ 323 | $ 369 | $ 880 | $ 205 | $ 296 | $ 255 | 1,934 | 1,636 | 1,446 | ||
Provision (Benefit) for Income Taxes | 681 | 594 | 543 | ||||||||||
Equity in Earnings, Net of Tax | 0 | 0 | 0 | ||||||||||
Net Income (Loss) | 1,253 | 1,042 | 903 | ||||||||||
Reclassification of Cash Flow Hedges to Earnings | 14 | (60) | (50) | ||||||||||
Foreign Currency Translation | (23) | 21 | 40 | ||||||||||
Unrealized Gain on Cash Flow Hedges | 6 | 34 | 46 | ||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 8 | 0 | 0 | ||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | 5 | (5) | 36 | ||||||||||
Total Comprehensive Income | 1,258 | 1,037 | 939 | ||||||||||
L Brands, Inc. [Member] | |||||||||||||
Net Sales | 0 | 0 | 0 | ||||||||||
Costs of Goods Sold, Buying and Occupancy | 0 | 0 | 0 | ||||||||||
Gross Profit | 0 | 0 | 0 | ||||||||||
General, Administrative and Store Operating Expenses | (12) | (6) | (5) | ||||||||||
Operating Income (Loss) | (12) | (6) | (5) | ||||||||||
Interest Expense | (334) | (324) | (314) | ||||||||||
Other Income (Loss) | 0 | 1 | 0 | ||||||||||
Income Before Income Taxes | (346) | (329) | (319) | ||||||||||
Provision (Benefit) for Income Taxes | (2) | (3) | 0 | ||||||||||
Equity in Earnings, Net of Tax | 1,597 | 1,368 | 1,222 | ||||||||||
Net Income (Loss) | 1,253 | 1,042 | 903 | ||||||||||
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 | 0 | ||||||||||
Foreign Currency Translation | 0 | 0 | 0 | ||||||||||
Unrealized Gain on Cash Flow Hedges | 0 | 0 | 0 | ||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 0 | ||||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | ||||||||||
Total Comprehensive Income | 1,253 | 1,042 | 903 | ||||||||||
Guarantor Subsidiaries | |||||||||||||
Net Sales | 11,475 | 10,711 | 10,047 | ||||||||||
Costs of Goods Sold, Buying and Occupancy | (6,843) | (6,449) | (6,096) | ||||||||||
Gross Profit | 4,632 | 4,262 | 3,951 | ||||||||||
General, Administrative and Store Operating Expenses | (2,688) | (2,538) | (2,403) | ||||||||||
Operating Income (Loss) | 1,944 | 1,724 | 1,548 | ||||||||||
Interest Expense | (38) | (35) | (28) | ||||||||||
Other Income (Loss) | 5 | 0 | 0 | ||||||||||
Income Before Income Taxes | 1,911 | 1,689 | 1,520 | ||||||||||
Provision (Benefit) for Income Taxes | 478 | 385 | 305 | ||||||||||
Equity in Earnings, Net of Tax | 94 | 46 | 118 | ||||||||||
Net Income (Loss) | 1,527 | 1,350 | 1,333 | ||||||||||
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 | 0 | ||||||||||
Foreign Currency Translation | 0 | 0 | 0 | ||||||||||
Unrealized Gain on Cash Flow Hedges | 0 | 0 | 0 | ||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 0 | ||||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | ||||||||||
Total Comprehensive Income | 1,527 | 1,350 | 1,333 | ||||||||||
Non-Guarantor Subsidiaries | |||||||||||||
Net Sales | 3,570 | 3,343 | 3,190 | ||||||||||
Costs of Goods Sold, Buying and Occupancy | (2,858) | (2,611) | (2,598) | ||||||||||
Gross Profit | 712 | 732 | 592 | ||||||||||
General, Administrative and Store Operating Expenses | (440) | (446) | (394) | ||||||||||
Operating Income (Loss) | 272 | 286 | 198 | ||||||||||
Interest Expense | (9) | (9) | (11) | ||||||||||
Other Income (Loss) | 71 | 6 | 17 | ||||||||||
Income Before Income Taxes | 334 | 283 | 204 | ||||||||||
Provision (Benefit) for Income Taxes | 205 | 212 | 238 | ||||||||||
Equity in Earnings, Net of Tax | 348 | 316 | 462 | ||||||||||
Net Income (Loss) | 477 | 387 | 428 | ||||||||||
Reclassification of Cash Flow Hedges to Earnings | 14 | (60) | (50) | ||||||||||
Foreign Currency Translation | (23) | 21 | 40 | ||||||||||
Unrealized Gain on Cash Flow Hedges | 6 | 34 | 46 | ||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 8 | ||||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | 5 | (5) | 36 | ||||||||||
Total Comprehensive Income | 482 | 382 | 464 | ||||||||||
Eliminations | |||||||||||||
Net Sales | (2,891) | (2,600) | (2,464) | ||||||||||
Costs of Goods Sold, Buying and Occupancy | 2,751 | 2,414 | 2,350 | ||||||||||
Gross Profit | (140) | (186) | (114) | ||||||||||
General, Administrative and Store Operating Expenses | 128 | 135 | 116 | ||||||||||
Operating Income (Loss) | (12) | (51) | 2 | ||||||||||
Interest Expense | 47 | 44 | 39 | ||||||||||
Other Income (Loss) | 0 | 0 | 0 | ||||||||||
Income Before Income Taxes | 35 | (7) | 41 | ||||||||||
Provision (Benefit) for Income Taxes | 0 | 0 | 0 | ||||||||||
Equity in Earnings, Net of Tax | (2,039) | (1,730) | (1,802) | ||||||||||
Net Income (Loss) | (2,004) | (1,737) | (1,761) | ||||||||||
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 | 0 | ||||||||||
Foreign Currency Translation | 0 | 0 | 0 | ||||||||||
Unrealized Gain on Cash Flow Hedges | 0 | 0 | 0 | ||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 0 | ||||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | ||||||||||
Total Comprehensive Income | $ (2,004) | $ (1,737) | $ (1,761) | ||||||||||
[1] | Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. |
Supplemental Guarantor Finan100
Supplemental Guarantor Financial Information (Condensed Consolidating Statement of Cash Flows) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | May. 04, 2013 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Net Cash Provided by (Used for) Operating Activities | $ 1,869,000,000 | $ 1,786,000,000 | $ 1,248,000,000 | ||||||||||||
Investing Activities | |||||||||||||||
Capital Expenditures | (727,000,000) | (715,000,000) | (691,000,000) | ||||||||||||
Proceeds from Sale of Other Assets, Investing Activities | 196,000,000 | 0 | 0 | ||||||||||||
Return of Capital | 0 | 0 | 46,000,000 | ||||||||||||
Proceeds from Sale of Equity Method Investments | 85,000,000 | 0 | 0 | ||||||||||||
Payments to Acquire Marketable Securities | (60,000,000) | 0 | 0 | ||||||||||||
Proceeds from Sale and Maturity of Marketable Securities | 50,000,000 | 0 | 0 | ||||||||||||
Other Investing Activities | 13,000,000 | 16,000,000 | (10,000,000) | ||||||||||||
Net Cash Provided by (Used for) Investing Activities | (443,000,000) | (699,000,000) | (655,000,000) | ||||||||||||
Financing Activities | |||||||||||||||
Proceeds from Long-term Debt, Net of Issuance Costs | 988,000,000 | 0 | 495,000,000 | ||||||||||||
Borrowings from Revolving Facilities | 7,000,000 | 5,000,000 | 290,000,000 | ||||||||||||
Repayments on Revolving Facilities | 0 | (5,000,000) | (290,000,000) | ||||||||||||
Payments of Long-term Debt | 0 | (213,000,000) | 0 | ||||||||||||
Repurchase of Common Stock | (483,000,000) | (87,000,000) | (60,000,000) | ||||||||||||
Dividends Paid | $ (145,000,000) | $ (146,000,000) | $ (146,000,000) | $ (734,000,000) | $ (100,000,000) | $ (100,000,000) | $ (99,000,000) | $ (392,000,000) | $ (88,000,000) | $ (87,000,000) | $ (87,000,000) | $ (87,000,000) | (1,171,000,000) | (691,000,000) | (349,000,000) |
Excess Tax Benefits from Share-based Compensation | 70,000,000 | 43,000,000 | 36,000,000 | ||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 0 | 0 | 0 | ||||||||||||
Proceeds From Exercise of Stock Options | 33,000,000 | 35,000,000 | 32,000,000 | ||||||||||||
Proceeds from (Payments for) Other Financing Activities | (2,000,000) | (6,000,000) | 0 | ||||||||||||
Net Cash Provided by (Used for) Financing Activities | (558,000,000) | (919,000,000) | 154,000,000 | ||||||||||||
Effects of Exchange Rate Changes on Cash | (1,000,000) | (6,000,000) | (1,000,000) | ||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 867,000,000 | 162,000,000 | 746,000,000 | ||||||||||||
Cash and Cash Equivalents, Beginning of Year | 1,681,000,000 | 1,519,000,000 | 773,000,000 | 1,681,000,000 | 1,519,000,000 | 773,000,000 | |||||||||
Cash and Cash Equivalents, End of Year | 2,548,000,000 | 1,681,000,000 | 1,519,000,000 | 2,548,000,000 | 1,681,000,000 | 1,519,000,000 | |||||||||
Third Party Sourcing Business [Member] | |||||||||||||||
Investing Activities | |||||||||||||||
Return of Capital | 46,000,000 | ||||||||||||||
L Brands, Inc. [Member] | |||||||||||||||
Net Cash Provided by (Used for) Operating Activities | (322,000,000) | (333,000,000) | (302,000,000) | ||||||||||||
Investing Activities | |||||||||||||||
Capital Expenditures | 0 | 0 | 0 | ||||||||||||
Proceeds from Sale of Other Assets, Investing Activities | 0 | ||||||||||||||
Return of Capital | 0 | ||||||||||||||
Proceeds from Sale of Equity Method Investments | 0 | ||||||||||||||
Payments to Acquire Marketable Securities | 0 | ||||||||||||||
Proceeds from Sale and Maturity of Marketable Securities | 0 | ||||||||||||||
Other Investing Activities | 0 | 0 | 0 | ||||||||||||
Net Cash Provided by (Used for) Investing Activities | 0 | 0 | 0 | ||||||||||||
Financing Activities | |||||||||||||||
Proceeds from Long-term Debt, Net of Issuance Costs | 988,000,000 | 495,000,000 | |||||||||||||
Borrowings from Revolving Facilities | 0 | 0 | 290,000,000 | ||||||||||||
Repayments on Revolving Facilities | 0 | (290,000,000) | |||||||||||||
Payments of Long-term Debt | (213,000,000) | ||||||||||||||
Repurchase of Common Stock | (483,000,000) | (87,000,000) | (60,000,000) | ||||||||||||
Dividends Paid | (1,171,000,000) | (691,000,000) | (349,000,000) | ||||||||||||
Excess Tax Benefits from Share-based Compensation | 0 | 0 | 0 | ||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 955,000,000 | 1,295,000,000 | 184,000,000 | ||||||||||||
Proceeds From Exercise of Stock Options | 33,000,000 | 35,000,000 | 32,000,000 | ||||||||||||
Proceeds from (Payments for) Other Financing Activities | 0 | 6,000,000 | |||||||||||||
Net Cash Provided by (Used for) Financing Activities | 322,000,000 | 333,000,000 | 302,000,000 | ||||||||||||
Effects of Exchange Rate Changes on Cash | 0 | 0 | 0 | ||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 0 | 0 | 0 | ||||||||||||
Cash and Cash Equivalents, Beginning of Year | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Cash and Cash Equivalents, End of Year | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Guarantor Subsidiaries | |||||||||||||||
Net Cash Provided by (Used for) Operating Activities | 1,835,000,000 | 1,677,000,000 | 1,323,000,000 | ||||||||||||
Investing Activities | |||||||||||||||
Capital Expenditures | (506,000,000) | (486,000,000) | (475,000,000) | ||||||||||||
Proceeds from Sale of Other Assets, Investing Activities | 0 | ||||||||||||||
Return of Capital | 0 | ||||||||||||||
Proceeds from Sale of Equity Method Investments | 1,000,000 | ||||||||||||||
Payments to Acquire Marketable Securities | (50,000,000) | ||||||||||||||
Proceeds from Sale and Maturity of Marketable Securities | 50,000,000 | ||||||||||||||
Other Investing Activities | 0 | (1,000,000) | 0 | ||||||||||||
Net Cash Provided by (Used for) Investing Activities | (505,000,000) | (487,000,000) | (475,000,000) | ||||||||||||
Financing Activities | |||||||||||||||
Proceeds from Long-term Debt, Net of Issuance Costs | 0 | 0 | |||||||||||||
Borrowings from Revolving Facilities | 0 | 0 | 0 | ||||||||||||
Repayments on Revolving Facilities | 0 | 0 | |||||||||||||
Payments of Long-term Debt | 0 | ||||||||||||||
Repurchase of Common Stock | 0 | 0 | 0 | ||||||||||||
Dividends Paid | 0 | 0 | 0 | ||||||||||||
Excess Tax Benefits from Share-based Compensation | 62,000,000 | 37,000,000 | 31,000,000 | ||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | (662,000,000) | (1,118,000,000) | 57,000,000 | ||||||||||||
Proceeds From Exercise of Stock Options | 0 | 0 | 0 | ||||||||||||
Proceeds from (Payments for) Other Financing Activities | (2,000,000) | 0 | |||||||||||||
Net Cash Provided by (Used for) Financing Activities | (602,000,000) | (1,081,000,000) | 88,000,000 | ||||||||||||
Effects of Exchange Rate Changes on Cash | 0 | 0 | 0 | ||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 728,000,000 | 109,000,000 | 936,000,000 | ||||||||||||
Cash and Cash Equivalents, Beginning of Year | 1,462,000,000 | 1,353,000,000 | 417,000,000 | 1,462,000,000 | 1,353,000,000 | 417,000,000 | |||||||||
Cash and Cash Equivalents, End of Year | 2,190,000,000 | 1,462,000,000 | 1,353,000,000 | 2,190,000,000 | 1,462,000,000 | 1,353,000,000 | |||||||||
Non-Guarantor Subsidiaries | |||||||||||||||
Net Cash Provided by (Used for) Operating Activities | 356,000,000 | 442,000,000 | 227,000,000 | ||||||||||||
Investing Activities | |||||||||||||||
Capital Expenditures | (221,000,000) | (229,000,000) | (216,000,000) | ||||||||||||
Proceeds from Sale of Other Assets, Investing Activities | 196,000,000 | ||||||||||||||
Return of Capital | 46,000,000 | ||||||||||||||
Proceeds from Sale of Equity Method Investments | 84,000,000 | ||||||||||||||
Payments to Acquire Marketable Securities | (10,000,000) | ||||||||||||||
Proceeds from Sale and Maturity of Marketable Securities | 0 | ||||||||||||||
Other Investing Activities | 13,000,000 | 17,000,000 | (10,000,000) | ||||||||||||
Net Cash Provided by (Used for) Investing Activities | 62,000,000 | (212,000,000) | (180,000,000) | ||||||||||||
Financing Activities | |||||||||||||||
Proceeds from Long-term Debt, Net of Issuance Costs | 0 | 0 | |||||||||||||
Borrowings from Revolving Facilities | 7,000,000 | 5,000,000 | 0 | ||||||||||||
Repayments on Revolving Facilities | (5,000,000) | 0 | |||||||||||||
Payments of Long-term Debt | 0 | ||||||||||||||
Repurchase of Common Stock | 0 | 0 | 0 | ||||||||||||
Dividends Paid | 0 | 0 | 0 | ||||||||||||
Excess Tax Benefits from Share-based Compensation | 8,000,000 | 6,000,000 | 5,000,000 | ||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | (293,000,000) | (177,000,000) | (241,000,000) | ||||||||||||
Proceeds From Exercise of Stock Options | 0 | 0 | 0 | ||||||||||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | |||||||||||||
Net Cash Provided by (Used for) Financing Activities | (278,000,000) | (171,000,000) | (236,000,000) | ||||||||||||
Effects of Exchange Rate Changes on Cash | (1,000,000) | (6,000,000) | (1,000,000) | ||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 139,000,000 | 53,000,000 | (190,000,000) | ||||||||||||
Cash and Cash Equivalents, Beginning of Year | 219,000,000 | 166,000,000 | 356,000,000 | 219,000,000 | 166,000,000 | 356,000,000 | |||||||||
Cash and Cash Equivalents, End of Year | 358,000,000 | 219,000,000 | 166,000,000 | 358,000,000 | 219,000,000 | 166,000,000 | |||||||||
Eliminations | |||||||||||||||
Net Cash Provided by (Used for) Operating Activities | 0 | 0 | 0 | ||||||||||||
Investing Activities | |||||||||||||||
Capital Expenditures | 0 | 0 | 0 | ||||||||||||
Proceeds from Sale of Other Assets, Investing Activities | 0 | ||||||||||||||
Return of Capital | 0 | ||||||||||||||
Proceeds from Sale of Equity Method Investments | 0 | ||||||||||||||
Payments to Acquire Marketable Securities | 0 | ||||||||||||||
Proceeds from Sale and Maturity of Marketable Securities | 0 | ||||||||||||||
Other Investing Activities | 0 | 0 | 0 | ||||||||||||
Net Cash Provided by (Used for) Investing Activities | 0 | 0 | 0 | ||||||||||||
Financing Activities | |||||||||||||||
Proceeds from Long-term Debt, Net of Issuance Costs | 0 | 0 | |||||||||||||
Borrowings from Revolving Facilities | 0 | 0 | 0 | ||||||||||||
Repayments on Revolving Facilities | 0 | 0 | |||||||||||||
Payments of Long-term Debt | 0 | ||||||||||||||
Repurchase of Common Stock | 0 | 0 | 0 | ||||||||||||
Dividends Paid | 0 | 0 | 0 | ||||||||||||
Excess Tax Benefits from Share-based Compensation | 0 | 0 | 0 | ||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 0 | 0 | 0 | ||||||||||||
Proceeds From Exercise of Stock Options | 0 | 0 | 0 | ||||||||||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | |||||||||||||
Net Cash Provided by (Used for) Financing Activities | 0 | 0 | 0 | ||||||||||||
Effects of Exchange Rate Changes on Cash | 0 | 0 | 0 | ||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 0 | 0 | 0 | ||||||||||||
Cash and Cash Equivalents, Beginning of Year | $ 0 | $ 0 | $ 0 | 0 | 0 | 0 | |||||||||
Cash and Cash Equivalents, End of Year | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Code of Conduct, Related Per101
Code of Conduct, Related Person Transaction Policy and Associated Matters (Details) - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2015 | May. 03, 2014 | |
Land under Purchase Options, Recorded | $ 7 | |
Related Party Transaction, Purchases from Related Party | $ 21 | |
2015 NACO Beauty Park Purchase [Member] | ||
Related Party Transaction, Purchases from Related Party | $ 5.3 | |
2015 NACO Historic Land Purchase [Member] | ||
Related Party Transaction, Purchases from Related Party | $ 0 |