Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jul. 29, 2017 | Aug. 25, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 29, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | LB | |
Entity Registrant Name | L Brands, Inc. | |
Entity Central Index Key | 701,985 | |
Current Fiscal Year End Date | --02-03 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 283,846,455 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Income Statement [Abstract] | ||||
Net Sales | $ 2,755 | $ 2,890 | $ 5,192 | $ 5,504 |
Costs of Goods Sold, Buying and Occupancy | (1,727) | (1,777) | (3,261) | (3,348) |
Gross Profit | 1,028 | 1,113 | 1,931 | 2,156 |
General, Administrative and Store Operating Expenses | (727) | (705) | (1,421) | (1,424) |
Operating Income | 301 | 408 | 510 | 732 |
Interest Expense | (101) | (101) | (201) | (199) |
Other Income | 17 | 73 | 27 | 80 |
Income Before Income Taxes | 217 | 380 | 336 | 613 |
Provision for Income Taxes | 78 | 128 | 103 | 208 |
Net Income | $ 139 | $ 252 | $ 233 | $ 405 |
Net Income Per Basic Share | $ 0.48 | $ 0.88 | $ 0.81 | $ 1.41 |
Net Income Per Diluted Share | 0.48 | 0.87 | 0.81 | 1.39 |
Dividends Per Share | $ 0.60 | $ 0.60 | $ 1.20 | $ 3.20 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 29, 2017 | Jul. 30, 2016 | Apr. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Net Income | $ 139 | $ 252 | $ 233 | $ 405 | |
Other Comprehensive Income (Loss), Net of Tax: | |||||
Reclassification of Cash Flow Hedges to Earnings | 12 | (5) | 5 | 9 | |
Foreign Currency Translation | 7 | (18) | 10 | (10) | |
Unrealized Gain (Loss) on Cash Flow Hedges | (26) | 5 | (16) | (11) | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 0 | (2) | 0 | (3) | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | 0 | $ (3) | 0 | (3) |
Total Other Comprehensive Income (Loss), Net of Tax | (7) | (20) | (1) | (18) | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 132 | $ 232 | $ 232 | $ 387 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 |
Current Assets: | |||
Cash and Cash Equivalents | $ 1,360 | $ 1,934 | $ 1,273 |
Accounts Receivable, Net | 245 | 294 | 266 |
Inventories | 1,118 | 1,096 | 1,204 |
Other | 234 | 141 | 217 |
Total Current Assets | 2,957 | 3,465 | 2,960 |
Property and Equipment, Net | 2,841 | 2,741 | 2,586 |
Goodwill | 1,348 | 1,348 | 1,348 |
Trade Names and Other Intangible Assets, Net | 411 | 411 | 411 |
Deferred Tax Assets, Net, Noncurrent | 25 | 19 | 30 |
Other Assets | 181 | 186 | 206 |
Total Assets | 7,763 | 8,170 | 7,541 |
Current Liabilities: | |||
Accounts Payable | 758 | 683 | 793 |
Accrued Expenses and Other | 860 | 997 | 879 |
Debt, Current | 64 | 36 | 13 |
Accrued Income Taxes, Current | 76 | 298 | 134 |
Total Current Liabilities | 1,758 | 2,014 | 1,819 |
Deferred Income Taxes | 369 | 352 | 268 |
Long-term Debt | 5,704 | 5,700 | 5,706 |
Other Long-term Liabilities | 844 | 831 | 877 |
Shareholders’ Equity (Deficit): | |||
Preferred Stock - $1.00 par value; 10 shares authorized; none issued | 0 | 0 | 0 |
Common Stock - $0.50 par value; 1,000 shares authorized; 318, 315 and 314 shares issued; 286, 286 and 286 shares outstanding, respectively | 159 | 157 | 157 |
Paid-in Capital | 707 | 650 | 597 |
Accumulated Other Comprehensive Income | 11 | 12 | 22 |
Retained Earnings (Accumulated Deficit) | 94 | 205 | (203) |
Less: Treasury Stock, at Average Cost; 32, 29 and 28 shares, respectively | (1,885) | (1,753) | (1,703) |
Total L Brands, Inc. Shareholders’ Equity (Deficit) | (914) | (729) | (1,130) |
Noncontrolling Interest | 2 | 2 | 1 |
Total Equity (Deficit) | (912) | (727) | (1,129) |
Total Liabilities and Equity (Deficit) | $ 7,763 | $ 8,170 | $ 7,541 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 |
Preferred Stock, Par Value | $ 1 | $ 1 | $ 1 |
Preferred Stock, Shares Authorized | 10 | 10 | 10 |
Preferred Stock, Shares Issued | 0 | 0 | 0 |
Common Stock, Par Value | $ 0.50 | $ 0.50 | $ 0.50 |
Common Stock, Shares Authorized | 1,000 | 1,000 | 1,000 |
Common Stock, Shares, Issued | 318 | 315 | 314 |
Common Stock, Shares, Outstanding | 286 | 286 | 286 |
Treasury Stock, Shares | 32 | 29 | 28 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jul. 29, 2017 | Jul. 30, 2016 | |
Operating Activities: | ||
Net Income | $ 233 | $ 405 |
Depreciation, Amortization and Accretion, Net | 282 | 245 |
Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: | ||
Amortization of Landlord Allowances | (24) | (23) |
Deferred Income Taxes | 12 | 15 |
Share-based Compensation Expense | 50 | 46 |
Gain (Loss) on Equity Method Investment Dividends Or Distributions | (20) | (108) |
Gain (Loss) on Extinguishment of Debt | 0 | 36 |
Marketable Securities, Realized Gain (Loss), Excluding Other than Temporary Impairments | 0 | (4) |
Changes in Assets and Liabilities, Net of Assets and Liabilities from Acquisition: | ||
Accounts Receivable | 50 | (15) |
Inventories | (18) | (77) |
Accounts Payable, Accrued Expenses and Other | (73) | 17 |
Income Taxes Payable | (223) | (53) |
Other Assets and Liabilities | (48) | 24 |
Net Cash Provided by Operating Activities | 221 | 508 |
Investing Activities: | ||
Capital Expenditures | (372) | (497) |
Proceeds from Equity Method Investment, Distribution, Return of Capital | 27 | 111 |
Proceeds from Sale and Maturity of Marketable Securities | 0 | 10 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | (31) |
Other Investing Activities | (5) | 13 |
Net Cash Provided by (Used for) Investing Activities | (350) | (394) |
Financing Activities: | ||
Proceeds from Debt, Net of Issuance Costs | 0 | 692 |
Repayments of Long-term Debt | 0 | (742) |
Proceeds from Long-term Lines of Credit | 36 | 10 |
Repayments of Lines of Credit | (8) | 0 |
Payments of Dividends | (344) | (923) |
Repurchases of Common Stock | (132) | (385) |
Tax Payments related to Share-based Awards | (30) | (50) |
Proceeds from Exercise of Stock Options | 37 | 13 |
Debt Issuance Costs, Line of Credit Arrangements, Gross | 5 | 0 |
Proceeds from (Payments for) Other Financing Activities | (3) | (1) |
Net Cash Provided by (Used for) Financing Activities | (449) | (1,386) |
Effects of Exchange Rate Changes on Cash and Cash Equivalents | 4 | (3) |
Net Increase (Decrease) in Cash and Cash Equivalents | (574) | (1,275) |
Cash and Cash Equivalents, Beginning of Period | 1,934 | 2,548 |
Cash and Cash Equivalents, End of Period | 1,360 | $ 1,273 |
Easton Investment [Member] | ||
Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: | ||
Gain (Loss) on Equity Method Investment Dividends Or Distributions | (20) | |
Investing Activities: | ||
Proceeds from Equity Method Investment, Distribution, Return of Capital | $ 27 |
Description Of Business And Bas
Description Of Business And Basis Of Presentation | 6 Months Ended |
Jul. 29, 2017 | |
Description Of Business And Basis Of Presentation [Abstract] | |
Description Of Business And Basis Of Presentation | Description of Business and Basis of Presentation 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, personal care, beauty and home fragrance products. The Company sells its merchandise through company-owned specialty retail stores in the United States (“U.S.”), Canada, United Kingdom (“U.K.”) and Greater China (China and Hong Kong), 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, “ second quarter of 2017 ” and “ second quarter of 2016 ” refer to the thirteen week periods ending July 29, 2017 and July 30, 2016 , respectively. “ Year-to-date 2017 ” and “ year-to-date 2016 ” refer to the twenty-six week periods ending July 29, 2017 and July 30, 2016 , 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's 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 method investments are required to be tested for impairment when it is determined there may be an other-than-temporary loss in value. Interim Financial Statements The Consolidated Financial Statements as of and for the periods ended July 29, 2017 and July 30, 2016 are unaudited and are presented pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained in the Company’s 2016 Annual Report on Form 10-K. In the opinion of management, the accompanying Consolidated Financial Statements reflect all adjustments which are of a normal recurring nature and necessary for a fair presentation of the results for the interim periods. Seasonality of Business Due to seasonal variations in the retail industry, the results of operations for any interim period are not necessarily indicative of the results expected for the full fiscal year. Concentration of Credit Risk and Investments 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. Typically, the Company’s investment portfolio is primarily comprised of U.S. government obligations, U.S. Treasury and AAA-rated money market funds, 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. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) 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 Pronouncement (N
New Accounting Pronouncement (Notes) | 6 Months Ended |
Jul. 29, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | New Accounting Pronouncements Share-Based Compensation In the first quarter of 2017, the Company adopted Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting . On a prospective basis, this standard requires recognition of the income tax effects of share-based awards in the income statement when the awards vest or are exercised. These effects were historically recorded in equity on the balance sheet. As a result, the Company recognized $2 million and $13 million of excess tax benefits related to share-based awards in Provision for Income Taxes in the second quarter and year-to-date 2017 Consolidated Statements of Income, respectively. The standard also requires all tax-related cash flows from share-based awards to be reported as operating activities on the statements of cash flows and any cash payments made to taxing authorities on an employee's behalf from withheld shares as financing activities. The retrospective application of these changes resulted in an $87 million increase in operating cash flows and a corresponding decrease to financing cash flows on the 2016 Consolidated Statement of Cash Flows. Further, as allowed by the standard, the Company will continue to estimate award forfeitures at the time awards are granted and adjust, if necessary, in subsequent periods based on historical experience and expected future forfeiture rates. Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers , which was further clarified and amended in 2015 and 2016. 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 continues to evaluate the impacts of this standard. The most significant changes to current accounting relate to the points earned under the Victoria's Secret customer loyalty program and the accounting for sales returns. The new standard will require a deferral of revenue associated with loyalty points using a relative stand-alone selling price method and will also require sales returns to be presented on a gross basis with the sales refund liability presented separately from the return asset. The Company is continuing to evaluate the further impacts the standard will have on the Consolidated Statements of Income and Comprehensive Income, Balance Sheets and Statements of Cash Flows. The Company will adopt the standard in the first quarter of fiscal 2018 under the modified retrospective approach, which will result in a cumulative adjustment to retained earnings. Leases In February 2016, the FASB issued ASC 842, Leases, which 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 the impacts that this standard will have on its Consolidated Statements of Income and Comprehensive Income, Balance Sheets and Statements of Cash Flows. The Company currently expects that most of its operating lease commitments will be recognized as operating lease liabilities and right-of-use assets upon adoption of the standard. Thus, the Company expects adoption will result in a material increase to the assets and liabilities on the Consolidated Balance Sheet. The Company will adopt the standard in the first quarter of fiscal 2019. |
Earnings Per Share And Sharehol
Earnings Per Share And Shareholders' Equity | 6 Months Ended |
Jul. 29, 2017 | |
Earnings Per Share And Shareholders' Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Earnings Per Share and Shareholders’ Equity (Deficit) Earnings Per Share Earnings per basic share is 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 the second quarter and year-to-date 2017 and 2016 : Second Quarter Year-to-Date 2017 2016 2017 2016 (in millions) Weighted-average Common Shares: Issued Shares 318 314 317 314 Treasury Shares (31 ) (27 ) (31 ) (27 ) Basic Shares 287 287 286 287 Effect of Dilutive Options and Restricted Stock 2 4 3 5 Diluted Shares 289 291 289 292 Anti-dilutive Options and Awards (a) 4 3 4 2 _______________ (a) These options and awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. Shareholders’ Equity (Deficit) Common Stock Share Repurchases Under the authority of the Company’s Board of Directors, the Company repurchased shares of its common stock under the following repurchase programs for year-to-date 2017 and 2016 : Amount Authorized Shares Repurchased Amount Repurchased Average Stock Price of Shares Repurchased within Program Repurchase Program 2017 2016 2017 2016 2017 2016 (in millions) (in thousands) (in millions) February 2017 $ 250 2,605 NA $ 129 NA $ 49.58 NA February 2016 $ 500 51 4,968 3 $ 388 $ 58.95 $ 78.07 Total 2,656 4,968 $ 132 $ 388 In the first quarter of 2017, the Company's Board of Directors approved a new $250 million share repurchase program, which included the $59 million remaining under the February 2016 repurchase program. In the first quarter of 2016, the Company's Board of Directors approved a $500 million share repurchase program, which included $17 million remaining under the June 2015 repurchase program. The February 2017 repurchase program had $121 million remaining as of July 29, 2017 . Subsequent to July 29, 2017 , the Company repurchased an additional 2.4 million shares of common stock for $90 million under this program. There were $3 million of share repurchases reflected in Accounts Payable on the July 29, 2017 , January 28, 2017 and July 30, 2016 Consolidated Balance Sheets. Dividends Under the authority and declaration of the Board of Directors, the Company paid the following dividends during year-to-date 2017 and 2016 : Ordinary Dividends Special Dividends Total Dividends Total Paid (per share) (in millions) 2017 Second Quarter $ 0.60 $ — $ 0.60 $ 172 First Quarter 0.60 — 0.60 172 2017 Total $ 1.20 $ — $ 1.20 $ 344 2016 Second Quarter $ 0.60 $ — $ 0.60 $ 173 First Quarter 0.60 2.00 2.60 750 2016 Total $ 1.20 $ 2.00 $ 3.20 $ 923 |
Acquisition Acquisition (Notes)
Acquisition Acquisition (Notes) | 6 Months Ended |
Jul. 29, 2017 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On April 18, 2016 , the Company completed the acquisition of 100% of the shares of American Beauty Limited for a total purchase price of $44 million . This agreement included the reacquisition of the franchise rights from one of our partners to operate Victoria's Secret Beauty and Accessories stores in Greater China, including 26 stores already open at the time of acquisition. The purchase price included $10 million in forgiveness of liabilities owed to the Company from the pre-existing relationship. As a result of this acquisition, the Company's financial statements include the financial results of American Beauty Limited, which are reported as part of the Victoria's Secret and Bath & Body Works International segment. The total purchase price was allocated to the net tangible and intangible assets acquired based on their estimated fair value. Such estimated fair values require management to make estimates and judgments, especially with respect to intangible assets. The allocation of the purchase price to goodwill was complete as of the second quarter of 2016. Goodwill related to the acquisition is not deductible for tax purposes. The allocation of the purchase price to the fair value of assets acquired and liabilities assumed is as follows: (in millions) Cash and Cash Equivalents $ 1 Inventories 3 Property and Equipment 10 Goodwill 30 Other Assets 3 Current Liabilities (3 ) Net Assets Acquired $ 44 Forgiveness of Liabilities Owed to the Company (10 ) Consideration Paid $ 34 |
Restructuring Activities (Notes
Restructuring Activities (Notes) | 6 Months Ended |
Jul. 29, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Activities During the first quarter of 2016, the Company made strategic changes within the Victoria’s Secret segment designed to focus the brand on its core merchandise categories, streamline operations and emphasize brand building and loyalty-enhancing marketing and advertising rather than using traditional catalogues and offers. As a result of these actions, the Company recorded charges related to cancellations of fabric commitments for non-go forward merchandise and a reserve against paper that was previously intended for future catalogues. These costs, totaling $11 million , including non-cash charges of $10 million , are included in Cost of Goods Sold, Buying and Occupancy on the year-to-date 2016 Consolidated Statement of Income. These actions also resulted in the elimination of approximately 200 positions primarily in the Company's Ohio and New York home offices. Severance and related costs associated with these eliminations, totaling $24 million , are included in General, Administrative and Store Operating Expenses on the year-to-date 2016 Consolidated Statement of Income. The Company recognized a total pre-tax charge of $35 million for these items in the first quarter of 2016. The remaining liability for unpaid severance and related costs was not significant as of July 29, 2017 . |
Inventories
Inventories | 6 Months Ended |
Jul. 29, 2017 | |
Inventory, Net [Abstract] | |
Inventories | Inventories The following table provides details of inventories as of July 29, 2017 , January 28, 2017 and July 30, 2016 : July 29, January 28, July 30, (in millions) Finished Goods Merchandise $ 973 $ 982 $ 1,062 Raw Materials and Merchandise Components 145 114 142 Total Inventories $ 1,118 $ 1,096 $ 1,204 Inventories are principally valued at the lower of cost, as determined by the weighted-average cost method, or net realizable value. |
Property And Equipment, Net
Property And Equipment, Net | 6 Months Ended |
Jul. 29, 2017 | |
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 July 29, 2017 , January 28, 2017 and July 30, 2016 : July 29, January 28, July 30, (in millions) Property and Equipment, at Cost $ 6,478 $ 6,282 $ 5,991 Accumulated Depreciation and Amortization (3,637 ) (3,541 ) (3,405 ) Property and Equipment, Net $ 2,841 $ 2,741 $ 2,586 Depreciation expense was $140 million and $124 million for the second quarter of 2017 and 2016 , respectively. Depreciation expense was $282 million and $245 million for year-to-date 2017 and 2016 , respectively. |
Equity Investments And Other
Equity Investments And Other | 6 Months Ended |
Jul. 29, 2017 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |
Equity Investments And Other | Equity Investments and Other Easton Investments The Company has land and other investments in Easton, a planned community in Columbus, Ohio, that integrates office, hotel, retail, residential and recreational space. These investments, totaling $75 million as of July 29, 2017 , $79 million as of January 28, 2017 , and $80 million as of July 30, 2016 , 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”) and Easton Gateway, LLC (“EG”), entities that own and develop commercial entertainment and shopping centers. The Company’s investments in ETC and EG are accounted for using the equity method of accounting. The Company has a majority financial interest in ETC and EG, but another unaffiliated member manages them, and certain significant decisions regarding ETC and EG require the consent of unaffiliated members in addition to the Company. During 2017, the Company received cash distributions of $27 million from certain of its Easton investments. As a result, the Company recognized pre-tax gains totaling $20 million which are included in Other Income on the 2017 Consolidated Statements of Income and the return of capital is included within the Investing Activities section of the 2017 Consolidated Statement of Cash Flows. In July 2016, ETC refinanced its bank loan. In conjunction with the loan refinancing, the Company received a cash distribution from ETC of $124 million and recognized a pre-tax gain of $108 million (after-tax gain of $70 million ). The gain is included in Other Income on the 2016 Consolidated Statements of Income and the return of capital is included within the Investing Activities section of the 2016 Consolidated Statement of Cash Flows. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 29, 2017 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes is based on the current estimate of the annual effective tax rate and is adjusted as necessary for quarterly events. The Company’s quarterly effective tax rate does not reflect a benefit associated with losses related to certain foreign subsidiaries. For the second quarter of 2017 , the Company’s effective tax rate was 36.0% compared to 33.6% in the second quarter of 2016 . The second quarter 2017 rate was lower than the Company's combined federal and state statutory rate primarily due to the domestic manufacturing deduction. The second quarter 2016 rate was lower than the Company’s combined federal and state statutory rate primarily due to the resolution of certain tax matters. For year-to-date 2017 , the Company's effective tax rate was 30.6% compared to 34.0% year-to-date 2016 . The year-to-date 2017 rate was lower than the Company's combined estimated federal and state statutory rate primarily due to the recognition of tax benefits resulting from stock options exercised. The year-to-date 2016 rate was lower than the Company's combined estimated federal and state statutory rate primarily due to the resolution of certain tax matters. As of July 29, 2017 , any unrecognized deferred income tax liability resulting from the Company's undistributed foreign earnings from non-U.S. subsidiaries 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 on these undistributed foreign earnings is not practicable because such liability, if any, is dependent on circumstances existing if and when remittance occurs. Income taxes paid were approximately $305 million and $111 million for the second quarter of 2017 and 2016 , respectively. Income taxes paid were approximately $320 million and $338 million for year-to-date 2017 and 2016 , respectively. |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jul. 29, 2017 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Long-term Debt | Long-term Debt The following table provides the Company’s debt balance, net of unamortized debt issuance costs and discounts, as of July 29, 2017 , January 28, 2017 and July 30, 2016 : July 29, January 28, July 30, (in millions) Senior Unsecured Debt with Subsidiary Guarantee $1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) $ 990 $ 989 $ 989 $1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) 993 992 992 $1 billion, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”) 993 992 991 $700 million, 6.75% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) 692 692 692 $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) 497 497 497 $500 million, 8.50% Fixed Interest Rate Notes due June 2019 (“2019 Notes”)(a) 497 496 500 $400 million, 7.00% Fixed Interest Rate Notes due May 2020 (“2020 Notes”) 397 397 396 Total Senior Unsecured Debt with Subsidiary Guarantee $ 5,059 $ 5,055 $ 5,057 Senior Unsecured Debt $350 million, 6.95% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) $ 348 $ 348 $ 348 $300 million, 7.60% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) 297 297 297 Foreign Facilities 64 36 17 Total Senior Unsecured Debt $ 709 $ 681 $ 662 Total $ 5,768 $ 5,736 $ 5,719 Current Portion of Long-term Debt (64 ) (36 ) (13 ) Total Long-term Debt, Net of Current Portion $ 5,704 $ 5,700 $ 5,706 ________________ (a) The balances include a fair value interest rate hedge adjustment which increased the debt balance by $2 million as of July 29, 2017 , $2 million as of January 28, 2017 and $8 million as of July 30, 2016 . Issuance of Notes In June 2016, the Company issued $700 million of 6.75% notes due in July 2036. 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 $692 million , which were net of issuance costs of $8 million . These issuance costs are being amortized through the maturity date of July 2036 and are included within Long-term Debt on the Consolidated Balance Sheets. Repurchase of Notes In July 2016, the Company used the proceeds from the 2036 Notes to repurchase the $700 million 2017 Notes for $742 million . In the second quarter of 2016, the Company recognized a pre-tax loss on extinguishment of this debt of $36 million (after-tax net loss of $22 million ), which is net of gains of $7 million related to terminated interest rate swaps associated with the 2017 Notes. This loss is included in Other Income in the 2016 Consolidated Statements of Income. Revolving Facility In May 2017, the Company entered into an amendment and restatement (“Amendment”) of its secured revolving credit facility (“Revolving Facility”). The Amendment maintains the aggregate amount of the commitments of the lenders under the Revolving Facility at $1 billion and extends the termination date from July 18, 2019 to May 11, 2022. The Amendment allows certain of the Company's non-U.S. subsidiaries to borrow and obtain letters of credit in U.S. dollars, Canadian dollars, Euros, Hong Kong dollars or British pounds. In addition, the Amendment reduced the commitment fees payable under the Revolving Facility, which are based on the Company's long-term credit rating, to 0.25% per annum. The Amendment did not modify the Company's quantitative covenant requirements, but did provide an increased limit on restricted payments in the event the Company does not meet the criteria to make these payments without limitation and provides greater flexibility with respect to the Company’s ability to grant liens on assets. The Company incurred fees related to the Amendment of the Revolving Facility of $5 million , which were capitalized and recorded in Other Assets on the July 29, 2017 Consolidated Balance Sheet and are being amortized over the remaining term of the Revolving Facility. The Revolving Facility fees related to committed and unutilized amounts are 0.25% 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 is London Interbank Offered Rate (“LIBOR”) plus 1.50% per annum. The interest rate on outstanding foreign denominated borrowings is the applicable benchmark rate plus 1.50% per annum. 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 July 29, 2017 , 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 . As of July 29, 2017 , 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 July 29, 2017 that reduced its remaining availability under the Revolving Facility. Foreign Facilities In addition to the Revolving Facility, the Company maintains various revolving and term loan bank facilities with availability totaling $100 million to support its foreign operations (“Foreign Facilities”). Current borrowings on these Foreign Facilities mature between July 30, 2017 and July 31, 2018 . The interest rates on outstanding borrowings are based upon the applicable benchmark rate for the currency of each borrowing. For year-to-date 2017 , the Company borrowed $36 million and made payments of $8 million under the Foreign Facilities. The maximum daily amount outstanding at any point in time during 2017 was $64 million . Interest Rate Swap Arrangements For information related to the Company’s fair value interest rate swap arrangements, see Note 11 , “Derivative Financial Instruments.” |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jul. 29, 2017 | |
Summary of Derivative Instruments [Abstract] | |
Derivative Instruments | Derivative Financial Instruments Foreign Exchange Derivative Instruments The earnings of the Company's wholly owned foreign businesses are subject to exchange rate risk as substantially all of their merchandise is sourced through U.S. dollar transactions. The Company uses foreign currency forward contracts designated as cash flow hedges to mitigate this foreign currency exposure for its Canadian and U.K. businesses. These forward contracts currently have a maximum term of 18 months. Amounts are reclassified from accumulated other comprehensive income (loss) upon sale of the hedged merchandise to the customer. These gains and losses are recognized in Cost of Goods Sold, Buying and Occupancy on the Consolidated Statements of Income. The Company has a cross-currency swap related to an intercompany loan of approximately CAD $170 million maturing in January 2018 which is designated as a cash flow hedge of foreign currency exchange risk. This cross-currency swap mitigates the exposure to fluctuations in the U.S. dollar-Canadian dollar exchange rate related to the Company's Canadian operations. The cross-currency swap requires 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. 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 (loss) to earnings to completely offset foreign currency transaction gains and losses recognized on the intercompany loan. The Company uses foreign currency forward contracts to mitigate the impact of fluctuations in foreign currency exchange rates relative to recognized payable balances denominated in non-functional currencies. The fair value of these non-designated foreign currency forward contracts is not significant as of July 29, 2017 . The following table provides the U.S. dollar notional amount of outstanding foreign currency derivative financial instruments as of July 29, 2017 , January 28, 2017 and July 30, 2016 : July 29, January 28, July 30, (in millions) Notional Amount $ 376 $ 360 $ 152 The following table provides a summary of the fair value and balance sheet classification of outstanding derivative financial instruments designated as foreign currency cash flow hedges as of July 29, 2017 , January 28, 2017 and July 30, 2016 : July 29, January 28, July 30, (in millions) Other Current Assets $ 8 $ 18 $ — Accrued Expenses and Other 8 1 — Other Long-term Assets — — 16 Other Long-term Liabilities 3 — — The following table provides a summary of the pre-tax financial statement effect of the gains and losses on derivative financial instruments designated as foreign currency cash flow hedges for the second quarter and year-to-date 2017 and 2016 : Second Quarter Year-to-Date 2017 2016 2017 2016 (in millions) Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) $ (28 ) $ 5 $ (18 ) $ (11 ) (Gain) Loss Reclassified from Accumulated Other Comprehensive Income into Cost of Goods Sold, Buying and Occupancy Expense (a) (1 ) — (3 ) — (Gain) Loss Reclassified from Accumulated Other Comprehensive Income into Other Income (b) 13 (5 ) 8 9 ________________ (a) Represents reclassification of amounts from accumulated other comprehensive income (loss) to earnings when the hedged merchandise is sold to the customer. No ineffectiveness was associated with these foreign currency cash flow hedges. (b) Represents reclassification of amounts from accumulated other comprehensive income (loss) to earnings to completely offset foreign currency transaction gains and losses recognized on the intercompany loan. No ineffectiveness was associated with this foreign currency cash flow hedge. The Company estimates that $6 million of losses included in accumulated other comprehensive income (loss) as of July 29, 2017 related to foreign currency forward contracts designated as cash flow hedges will be reclassified into earnings within the following 12 months. Actual amounts ultimately reclassified depend on the exchange rates in effect when derivative contracts that are currently outstanding mature. Interest Rate Derivative Instruments The Company has interest rate swap arrangements related to $300 million of the outstanding 2019 Notes that are designated as interest rate fair value hedges. 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 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. 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 July 29, 2017 , January 28, 2017 and July 30, 2016 : July 29, January 28, July 30, (in millions) Other Long-term Assets $ 2 $ 2 $ 8 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 29, 2017 | |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table provides a summary of the principal value and estimated fair value of long-term debt, excluding foreign facility borrowings, as of July 29, 2017 , January 28, 2017 and July 30, 2016 : July 29, January 28, July 30, (in millions) Principal Value $ 5,750 $ 5,750 $ 5,750 Fair Value (a) 5,929 6,030 6,349 _______________ (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 Measurement . The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The authoritative guidance included in ASC Topic 820 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 following table provides a summary of assets and liabilities measured in the consolidated financial statements at fair value on a recurring basis as of July 29, 2017 , January 28, 2017 and July 30, 2016 : Level 1 Level 2 Level 3 Total (in millions) As of July 29, 2017 Assets: Cash and Cash Equivalents $ 1,360 $ — $ — $ 1,360 Marketable Securities 6 — — 6 Interest Rate Fair Value Hedges — 2 — 2 Foreign Currency Cash Flow Hedges — 8 — 8 Liabilities: Foreign Currency Cash Flow Hedges — 11 — 11 As of January 28, 2017 Assets: Cash and Cash Equivalents $ 1,934 $ — $ — $ 1,934 Marketable Securities 5 — — 5 Interest Rate Fair Value Hedges — 2 — 2 Foreign Currency Cash Flow Hedges — 18 — 18 Liabilities: Foreign Currency Cash Flow Hedges — 1 — 1 As of July 30, 2016 Assets: Cash and Cash Equivalents $ 1,273 $ — $ — $ 1,273 Marketable Securities 8 — — 8 Interest Rate Fair Value Hedges — 8 — 8 Foreign Currency Cash Flow Hedges — 16 — 16 The Company's Level 1 fair value measurements use unadjusted quoted prices in active markets for identical assets. In the first quarter of 2016, the Company sold a portion of its marketable securities, which are classified as available-for-sale, for $10 million and recognized a pre-tax gain of $4 million (after-tax gain of $3 million ). The gain is included within Other Income in the year-to-date 2016 Consolidated Statement of Income, and the cash proceeds are included in Proceeds from Sale of Marketable Securities within the Investing Activities section of the 2016 Consolidated Statement of Cash Flows. 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 use 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. Management believes that the carrying values of accounts receivable, accounts payable, accrued expenses and current debt approximate fair value because of their short maturity. |
Comprehensive Income
Comprehensive Income | 6 Months Ended |
Jul. 29, 2017 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income | Comprehensive Income The following table provides the rollforward of accumulated other comprehensive income (loss) for year-to-date 2017 : Foreign Currency Translation Cash Flow Hedges Marketable Securities Accumulated Other Comprehensive Income (Loss) (in millions) Balance as of January 28, 2017 $ 9 $ 3 $ — $ 12 Other Comprehensive Income (Loss) Before Reclassifications 10 (18 ) — (8 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 5 — 5 Tax Effect — 2 — 2 Current-period Other Comprehensive Income (Loss) 10 (11 ) — (1 ) Balance as of July 29, 2017 $ 19 $ (8 ) $ — $ 11 The following table provides the rollforward of accumulated other comprehensive income (loss) for year-to-date 2016 : Foreign Currency Translation Cash Flow Hedges Marketable Securities Accumulated Other Comprehensive Income (Loss) (in millions) Balance as of January 30, 2016 $ 28 $ 4 $ 8 $ 40 Other Comprehensive Income (Loss) Before Reclassifications (10 ) (11 ) (5 ) (26 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 9 (4 ) 5 Tax Effect — — 3 3 Current-period Other Comprehensive Income (Loss) (10 ) (2 ) (6 ) (18 ) Balance as of July 30, 2016 $ 18 $ 2 $ 2 $ 22 The following table provides a summary of the reclassification adjustments out of accumulated other comprehensive income (loss) for the second quarter and year-to-date 2017 and 2016 : Details About Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Location on Consolidated Statements of Income Second Quarter Year-to-Date 2017 2016 2017 2016 (in millions) (Gain) Loss on Cash Flow Hedges $ (1 ) $ — $ (3 ) $ — Cost of Goods Sold, Buying and Occupancy 13 (5 ) 8 9 Other Income — — — — Provision for Income Taxes $ 12 $ (5 ) $ 5 $ 9 Net Income Sale of Available-for-Sale Securities $ — $ — $ — $ (4 ) Other Income — — — 1 Provision for Income Taxes $ — $ — $ — $ (3 ) Net Income |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Jul. 29, 2017 | |
Commitments and Contingencies Disclosure [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 $12 million related to lease payments under the current terms of noncancellable 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 has not recorded a liability with respect to these guarantee obligations as of July 29, 2017 , January 28, 2017 or July 30, 2016 as it concluded that payments under these guarantees were not probable. In connection with noncancellable operating leases of certain assets, the Company provides 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 at various dates through 2021, and the total amount of the guarantees is $104 million . The Company recorded a liability of less than $1 million as of July 29, 2017 , a liability of $1 million as of January 28, 2017 , and a liability of $3 million as of July 30, 2016 related to these guarantee obligations, which are included in Other Long-term Liabilities on the Consolidated Balance Sheets. |
Retirement Benefits
Retirement Benefits | 6 Months Ended |
Jul. 29, 2017 | |
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 $16 million for the second quarter of 2017 and $15 million for the second quarter of 2016 . Total expense recognized related to the qualified plan was $32 million for year-to-date 2017 and 2016 . 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. Total expense recognized related to the non-qualified plan was $5 million for the second quarter of 2017 and $6 million for the second quarter of 2016 . Total expense recognized related to the non-qualified plan was $9 million for year-to-date 2017 and $13 million for year-to-date 2016 . |
Segment Information
Segment Information | 6 Months Ended |
Jul. 29, 2017 | |
Segment Reporting [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, home fragrance products, soaps and sanitizers under the Bath & Body Works, White Barn, 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, as well as its online business in Greater China on the Tmall domestic platform. This segment includes the following: • Victoria's Secret International, comprised of company-owned stores in the U.K. and Greater China, as well as stores operated by partners under franchise and license arrangements; • Victoria's Secret Beauty and Accessories, comprised of company-owned stores in Greater China, as well as stores operated by partners under franchise, license and wholesale arrangements, which feature Victoria's Secret branded beauty and accessories products in travel retail and other locations; and • Bath & Body Works International stores in travel retail and other locations 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, which sells women's intimate apparel through company-owned stores located in the U.S. and Canada, its website, www.LaSenza.com, as well as stores operated by partners under franchise and license arrangements; • Henri Bendel, which sells handbags, jewelry and other accessory products through company-owned stores and its website, www.HenriBendel.com ; 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 for the second quarter and year-to-date 2017 and 2016 : Victoria’s Secret Bath & Body Works Victoria’s Secret and Bath & Body Works International Other Total (in millions) 2017 Second Quarter: Net Sales $ 1,646 $ 860 $ 114 $ 135 $ 2,755 Operating Income (Loss) 183 156 2 (40 ) 301 Year-to-Date: Net Sales $ 3,179 $ 1,539 $ 217 $ 257 $ 5,192 Operating Income (Loss) 342 258 1 (91 ) 510 2016 Second Quarter: Net Sales $ 1,867 $ 801 $ 100 $ 122 $ 2,890 Operating Income (Loss) 281 148 8 (29 ) 408 Year-to-Date: Net Sales $ 3,608 $ 1,462 $ 195 $ 239 $ 5,504 Operating Income (Loss) 515 260 21 (64 ) 732 The Company's international net 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 net sales across all segments totaled $350 million and $333 million for the second quarter of 2017 and 2016 , respectively. The Company's international net sales across all segments totaled $649 million and $628 million for year-to-date 2017 and 2016 , respectively. |
Subsequent Event (Notes)
Subsequent Event (Notes) | 6 Months Ended |
Jul. 29, 2017 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | Subsequent Events Subsequent to July 29, 2017 , the Company repurchased an additional 2.4 million shares of common stock for $90 million under the February 2017 repurchase program. For additional information, see Note 3 , “Earnings Per Share and Shareholders' Equity (Deficit).” |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information Supplemental Guarantor Financial Information (Notes) | 6 Months Ended |
Jul. 29, 2017 | |
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, 2035 Notes and 2036 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 July 29, 2017 , January 28, 2017 and July 30, 2016 and the Condensed Consolidating Statements of Income, Comprehensive Income and Cash Flows for the periods ended July 29, 2017 and July 30, 2016 . L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) (Unaudited) July 29, 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 1,008 $ 352 $ — $ 1,360 Accounts Receivable, Net — 147 98 — 245 Inventories — 995 123 — 1,118 Other — 148 86 — 234 Total Current Assets — 2,298 659 — 2,957 Property and Equipment, Net — 1,997 844 — 2,841 Goodwill — 1,318 30 — 1,348 Trade Names and Other Intangible Assets, Net — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 4,753 17,731 1,834 (24,318 ) — Deferred Income Taxes — 10 15 — 25 Other Assets 133 29 631 (612 ) 181 Total Assets $ 4,886 $ 23,794 $ 4,013 $ (24,930 ) $ 7,763 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ 3 $ 414 $ 341 $ — $ 758 Accrued Expenses and Other 101 452 307 — 860 Current Portion of Long-term Debt — — 64 — 64 Income Taxes 1 18 57 — 76 Total Current Liabilities 105 884 769 — 1,758 Deferred Income Taxes (3 ) (78 ) 450 — 369 Long-term Debt 5,704 597 — (597 ) 5,704 Other Long-term Liabilities 3 764 91 (14 ) 844 Total Equity (Deficit) (923 ) 21,627 2,703 (24,319 ) (912 ) Total Liabilities and Equity (Deficit) $ 4,886 $ 23,794 $ 4,013 $ (24,930 ) $ 7,763 L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) January 28, 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 1,562 $ 372 $ — $ 1,934 Accounts Receivable, Net — 228 66 — 294 Inventories — 976 120 — 1,096 Other — 53 88 — 141 Total Current Assets — 2,819 646 — 3,465 Property and Equipment, Net — 1,897 844 — 2,741 Goodwill — 1,318 30 — 1,348 Trade Names and Other Intangible Assets, Net — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 4,923 15,824 1,350 (22,097 ) — Deferred Income Taxes — 10 9 — 19 Other Assets 130 28 639 (611 ) 186 Total Assets $ 5,053 $ 22,307 $ 3,518 $ (22,708 ) $ 8,170 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ 3 $ 326 $ 354 $ — $ 683 Accrued Expenses and Other 100 526 371 — 997 Current Portion of Long-term Debt — — 36 — 36 Income Taxes (11 ) 221 88 — 298 Total Current Liabilities 92 1,073 849 — 2,014 Deferred Income Taxes (3 ) (93 ) 448 — 352 Long-term Debt 5,700 597 — (597 ) 5,700 Other Long-term Liabilities 3 761 81 (14 ) 831 Total Equity (Deficit) (739 ) 19,969 2,140 (22,097 ) (727 ) Total Liabilities and Equity (Deficit) $ 5,053 $ 22,307 $ 3,518 $ (22,708 ) $ 8,170 L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) (Unaudited) July 30, 2016 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 890 $ 383 $ — $ 1,273 Accounts Receivable, Net 1 212 53 — 266 Inventories — 1,068 136 — 1,204 Other — 132 85 — 217 Total Current Assets 1 2,302 657 — 2,960 Property and Equipment, Net — 1,780 806 — 2,586 Goodwill — 1,318 30 — 1,348 Trade Names and Other Intangible Assets, Net — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 4,508 15,320 1,661 (21,489 ) — Deferred Income Taxes — 11 19 — 30 Other Assets 137 34 647 (612 ) 206 Total Assets $ 4,646 $ 21,176 $ 3,820 $ (22,101 ) $ 7,541 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ 4 $ 438 $ 351 $ — $ 793 Accrued Expenses and Other 104 481 294 — 879 Current Portion of Long-term Debt — — 13 — 13 Income Taxes (11 ) 4 141 — 134 Total Current Liabilities 97 923 799 — 1,819 Deferred Income Taxes (3 ) (78 ) 349 — 268 Long-term Debt 5,702 597 4 (597 ) 5,706 Other Long-term Liabilities 1 736 155 (15 ) 877 Total Equity (Deficit) (1,151 ) 18,998 2,513 (21,489 ) (1,129 ) Total Liabilities and Equity (Deficit) $ 4,646 $ 21,176 $ 3,820 $ (22,101 ) $ 7,541 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) (Unaudited) Second Quarter 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 2,594 $ 829 $ (668 ) $ 2,755 Costs of Goods Sold, Buying and Occupancy — (1,668 ) (642 ) 583 (1,727 ) Gross Profit — 926 187 (85 ) 1,028 General, Administrative and Store Operating Expenses (2 ) (693 ) (96 ) 64 (727 ) Operating Income (Loss) (2 ) 233 91 (21 ) 301 Interest Expense (100 ) (22 ) (3 ) 24 (101 ) Other Income — 2 15 — 17 Income (Loss) Before Income Taxes (102 ) 213 103 3 217 Provision for Income Taxes — 45 33 — 78 Equity in Earnings (Loss), Net of Tax 241 297 230 (768 ) — Net Income (Loss) $ 139 $ 465 $ 300 $ (765 ) $ 139 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) (Unaudited) Second Quarter 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Income (Loss) $ 139 $ 465 $ 300 $ (765 ) $ 139 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — 7 — 7 Unrealized Gain (Loss) on Cash Flow Hedges — — (26 ) — (26 ) Reclassification of Cash Flow Hedges to Earnings — — 12 — 12 Total Other Comprehensive Income (Loss), Net of Tax — — (7 ) — (7 ) Total Comprehensive Income (Loss) $ 139 $ 465 $ 293 $ (765 ) $ 132 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) (Unaudited) Second Quarter 2016 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 2,724 $ 808 $ (642 ) $ 2,890 Costs of Goods Sold, Buying and Occupancy — (1,701 ) (669 ) 593 (1,777 ) Gross Profit — 1,023 139 (49 ) 1,113 General, Administrative and Store Operating Expenses (2 ) (635 ) (106 ) 38 (705 ) Operating Income (Loss) (2 ) 388 33 (11 ) 408 Interest Expense (101 ) (11 ) (3 ) 14 (101 ) Other Income (Loss) (36 ) 1 108 — 73 Income (Loss) Before Income Taxes (139 ) 378 138 3 380 Provision (Benefit) for Income Taxes (13 ) 72 69 — 128 Equity in Earnings (Loss), Net of Tax 378 223 196 (797 ) — Net Income (Loss) $ 252 $ 529 $ 265 $ (794 ) $ 252 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) (Unaudited) Second Quarter 2016 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Income (Loss) $ 252 $ 529 $ 265 $ (794 ) $ 252 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — (18 ) — (18 ) Unrealized Gain (Loss) on Cash Flow Hedges — — 5 — 5 Reclassification of Cash Flow Hedges to Earnings — — (5 ) — (5 ) Unrealized Loss on Marketable Securities — — (2 ) — (2 ) Total Other Comprehensive Income (Loss), Net of Tax — — (20 ) — (20 ) Total Comprehensive Income (Loss) $ 252 $ 529 $ 245 $ (794 ) $ 232 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) (Unaudited) Year-to-Date 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 4,890 $ 1,526 $ (1,224 ) $ 5,192 Costs of Goods Sold, Buying and Occupancy — (3,140 ) (1,213 ) 1,092 (3,261 ) Gross Profit — 1,750 313 (132 ) 1,931 General, Administrative and Store Operating Expenses (6 ) (1,329 ) (186 ) 100 (1,421 ) Operating Income (Loss) (6 ) 421 127 (32 ) 510 Interest Expense (200 ) (33 ) (5 ) 37 (201 ) Other Income — 5 22 — 27 Income (Loss) Before Income Taxes (206 ) 393 144 5 336 Provision for Income Taxes — 65 38 — 103 Equity in Earnings (Loss), Net of Tax 439 476 380 (1,295 ) — Net Income (Loss) $ 233 $ 804 $ 486 $ (1,290 ) $ 233 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) (Unaudited) Year-to-Date 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Income (Loss) $ 233 $ 804 $ 486 $ (1,290 ) $ 233 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — 10 — 10 Unrealized Gain (Loss) on Cash Flow Hedges — — (16 ) — (16 ) Reclassification of Cash Flow Hedges to Earnings — — 5 — 5 Total Other Comprehensive Income (Loss), Net of Tax — — (1 ) — (1 ) Total Comprehensive Income (Loss) $ 233 $ 804 $ 485 $ (1,290 ) $ 232 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) (Unaudited) Year-to-Date 2016 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 5,196 $ 1,666 $ (1,358 ) $ 5,504 Costs of Goods Sold, Buying and Occupancy — (3,240 ) (1,380 ) 1,272 (3,348 ) Gross Profit — 1,956 286 (86 ) 2,156 General, Administrative and Store Operating Expenses (4 ) (1,274 ) (219 ) 73 (1,424 ) Operating Income (Loss) (4 ) 682 67 (13 ) 732 Interest Expense (199 ) (20 ) (5 ) 25 (199 ) Other Income (Loss) (36 ) 2 114 — 80 Income (Loss) Before Income Taxes (239 ) 664 176 12 613 Provision (Benefit) for Income Taxes (14 ) 134 88 — 208 Equity in Earnings (Loss), Net of Tax 630 285 264 (1,179 ) — Net Income (Loss) $ 405 $ 815 $ 352 $ (1,167 ) $ 405 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) (Unaudited) Year-to-Date 2016 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Income (Loss) $ 405 $ 815 $ 352 $ (1,167 ) $ 405 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — (10 ) — (10 ) Unrealized Gain (Loss) on Cash Flow Hedges — — (11 ) — (11 ) Reclassification of Cash Flow Hedges to Earnings — — 9 — 9 Unrealized Loss on Marketable Securities — — (3 ) — (3 ) Reclassification of Gain on Marketable Securities to Earnings — — (3 ) — (3 ) Total Other Comprehensive Income (Loss), Net of Tax — — (18 ) — (18 ) Total Comprehensive Income (Loss) $ 405 $ 815 $ 334 $ (1,167 ) $ 387 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) (Unaudited) Year-to-Date 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Cash Provided by (Used for) Operating Activities $ (196 ) $ 349 $ 68 $ — $ 221 Investing Activities: Capital Expenditures — (301 ) (71 ) — (372 ) Return of Capital from Easton Investments — — 27 — 27 Other Investing Activities — — (5 ) — (5 ) Net Cash Used for Investing Activities — (301 ) (49 ) — (350 ) Financing Activities: Borrowings from Foreign Facilities — — 36 — 36 Repayments on Foreign Facilities — — (8 ) — (8 ) Dividends Paid (344 ) — — — (344 ) Repurchases of Common Stock (132 ) — — — (132 ) Tax Payments related to Share-based Awards (30 ) — — — (30 ) Proceeds from Exercise of Stock Options 37 — — — 37 Financing Costs (5 ) — — — (5 ) Other Financing Activities — (3 ) — — (3 ) Net Financing Activities and Advances to/from Consolidated Affiliates 670 (599 ) (71 ) — — Net Cash Provided by (Used for) Financing Activities 196 (602 ) (43 ) — (449 ) Effects of Exchange Rate Changes on Cash and Cash Equivalents — — 4 — 4 Net Decrease in Cash and Cash Equivalents — (554 ) (20 ) — (574 ) Cash and Cash Equivalents, Beginning of Period — 1,562 372 — 1,934 Cash and Cash Equivalents, End of Period $ — $ 1,008 $ 352 $ — $ 1,360 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) (Unaudited) Year-to-Date 2016 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Cash Provided by (Used for) Operating Activities $ (208 ) $ 523 $ 193 $ — $ 508 Investing Activities: Capital Expenditures — (382 ) (115 ) — (497 ) Return of Capital from Easton Investments — — 111 — 111 Acquisition, Net of Cash Acquired of $1 — — (31 ) — (31 ) Proceeds from Sale of Marketable Securities — — 10 — 10 Net Investments in Consolidated Affiliates — — (38 ) 38 — Other Investing Activities — 1 12 — 13 Net Cash Used for Investing Activities — (381 ) (51 ) 38 (394 ) Financing Activities: Proceeds from the Issuance of Long-term Debt, Net of Issuance Costs 692 — — — 692 Payment of Long-term Debt (742 ) — — — (742 ) Borrowings from Foreign Facilities — — 10 — 10 Dividends Paid (923 ) — — — (923 ) Repurchases of Common Stock (385 ) — — — (385 ) Tax Payments related to Share-based Awards (50 ) — — — (50 ) Proceeds from Exercise of Stock Options 13 — — — 13 Other Financing Activities — (1 ) — — (1 ) Net Financing Activities and Advances to/from Consolidated Affiliates 1,603 (1,441 ) (124 ) (38 ) — Net Cash Provided by (Used for) Financing Activities 208 (1,442 ) (114 ) (38 ) (1,386 ) Effects of Exchange Rate Changes on Cash and Cash Equivalents — — (3 ) — (3 ) Net Increase (Decrease) in Cash and Cash Equivalents — (1,300 ) 25 — (1,275 ) Cash and Cash Equivalents, Beginning of Period — 2,190 358 — 2,548 Cash and Cash Equivalents, End of Period $ — $ 890 $ 383 $ — $ 1,273 |
Description Of Business And B25
Description Of Business And Basis Of Presentation (Policy) | 6 Months Ended |
Jul. 29, 2017 | |
Description Of Business And Basis Of Presentation [Abstract] | |
Inventory, Policy [Policy Text Block] | Inventories are principally valued at the lower of cost, as determined by the weighted-average cost method, or net realizable value. |
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, personal care, beauty and home fragrance products. The Company sells its merchandise through company-owned specialty retail stores in the United States (“U.S.”), Canada, United Kingdom (“U.K.”) and Greater China (China and Hong Kong), 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, “ second quarter of 2017 ” and “ second quarter of 2016 ” refer to the thirteen week periods ending July 29, 2017 and July 30, 2016 , respectively. |
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's 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 method investments are required to be tested for impairment when it is determined there may be an other-than-temporary loss in value. |
Interim Financial Statements | Interim Financial Statements The Consolidated Financial Statements as of and for the periods ended July 29, 2017 and July 30, 2016 are unaudited and are presented pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained in the Company’s 2016 Annual Report on Form 10-K. In the opinion of management, the accompanying Consolidated Financial Statements reflect all adjustments which are of a normal recurring nature and necessary for a fair presentation of the results for the interim periods. |
Seasonality Of Business | Seasonality of Business Due to seasonal variations in the retail industry, the results of operations for any interim period are not necessarily indicative of the results expected for the full fiscal year. |
Concentration Of Credit Risk | Concentration of Credit Risk and Investments 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. Typically, the Company’s investment portfolio is primarily comprised of U.S. government obligations, U.S. Treasury and AAA-rated money market funds, 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. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) 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 Share-Based Compensation In the first quarter of 2017, the Company adopted Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting . On a prospective basis, this standard requires recognition of the income tax effects of share-based awards in the income statement when the awards vest or are exercised. These effects were historically recorded in equity on the balance sheet. As a result, the Company recognized $2 million and $13 million of excess tax benefits related to share-based awards in Provision for Income Taxes in the second quarter and year-to-date 2017 Consolidated Statements of Income, respectively. The standard also requires all tax-related cash flows from share-based awards to be reported as operating activities on the statements of cash flows and any cash payments made to taxing authorities on an employee's behalf from withheld shares as financing activities. The retrospective application of these changes resulted in an $87 million increase in operating cash flows and a corresponding decrease to financing cash flows on the 2016 Consolidated Statement of Cash Flows. Further, as allowed by the standard, the Company will continue to estimate award forfeitures at the time awards are granted and adjust, if necessary, in subsequent periods based on historical experience and expected future forfeiture rates. Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers , which was further clarified and amended in 2015 and 2016. 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 continues to evaluate the impacts of this standard. The most significant changes to current accounting relate to the points earned under the Victoria's Secret customer loyalty program and the accounting for sales returns. The new standard will require a deferral of revenue associated with loyalty points using a relative stand-alone selling price method and will also require sales returns to be presented on a gross basis with the sales refund liability presented separately from the return asset. The Company is continuing to evaluate the further impacts the standard will have on the Consolidated Statements of Income and Comprehensive Income, Balance Sheets and Statements of Cash Flows. The Company will adopt the standard in the first quarter of fiscal 2018 under the modified retrospective approach, which will result in a cumulative adjustment to retained earnings. Leases In February 2016, the FASB issued ASC 842, Leases, which 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 the impacts that this standard will have on its Consolidated Statements of Income and Comprehensive Income, Balance Sheets and Statements of Cash Flows. The Company currently expects that most of its operating lease commitments will be recognized as operating lease liabilities and right-of-use assets upon adoption of the standard. Thus, the Company expects adoption will result in a material increase to the assets and liabilities on the Consolidated Balance Sheet. The Company will adopt the standard in the first quarter of fiscal 2019. |
Earnings Per Share And Shareh26
Earnings Per Share And Shareholders' Equity (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Earnings Per Share And Shareholders' Equity [Abstract] | |
Shares Utilized For The Calculation Of Basic And Diluted Earnings Per Share | The following table provides shares utilized for the calculation of basic and diluted earnings per share for the second quarter and year-to-date 2017 and 2016 : Second Quarter Year-to-Date 2017 2016 2017 2016 (in millions) Weighted-average Common Shares: Issued Shares 318 314 317 314 Treasury Shares (31 ) (27 ) (31 ) (27 ) Basic Shares 287 287 286 287 Effect of Dilutive Options and Restricted Stock 2 4 3 5 Diluted Shares 289 291 289 292 Anti-dilutive Options and Awards (a) 4 3 4 2 _______________ (a) These options and awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. |
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 for year-to-date 2017 and 2016 : Amount Authorized Shares Repurchased Amount Repurchased Average Stock Price of Shares Repurchased within Program Repurchase Program 2017 2016 2017 2016 2017 2016 (in millions) (in thousands) (in millions) February 2017 $ 250 2,605 NA $ 129 NA $ 49.58 NA February 2016 $ 500 51 4,968 3 $ 388 $ 58.95 $ 78.07 Total 2,656 4,968 $ 132 $ 388 |
Schedule Of Dividends Paid | Under the authority and declaration of the Board of Directors, the Company paid the following dividends during year-to-date 2017 and 2016 : Ordinary Dividends Special Dividends Total Dividends Total Paid (per share) (in millions) 2017 Second Quarter $ 0.60 $ — $ 0.60 $ 172 First Quarter 0.60 — 0.60 172 2017 Total $ 1.20 $ — $ 1.20 $ 344 2016 Second Quarter $ 0.60 $ — $ 0.60 $ 173 First Quarter 0.60 2.00 2.60 750 2016 Total $ 1.20 $ 2.00 $ 3.20 $ 923 |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The allocation of the purchase price to the fair value of assets acquired and liabilities assumed is as follows: (in millions) Cash and Cash Equivalents $ 1 Inventories 3 Property and Equipment 10 Goodwill 30 Other Assets 3 Current Liabilities (3 ) Net Assets Acquired $ 44 Forgiveness of Liabilities Owed to the Company (10 ) Consideration Paid $ 34 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Inventory, Net [Abstract] | |
Summary Of Inventories | The following table provides details of inventories as of July 29, 2017 , January 28, 2017 and July 30, 2016 : July 29, January 28, July 30, (in millions) Finished Goods Merchandise $ 973 $ 982 $ 1,062 Raw Materials and Merchandise Components 145 114 142 Total Inventories $ 1,118 $ 1,096 $ 1,204 |
Property And Equipment, Net (Ta
Property And Equipment, Net (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary Of Property And Equipment, Net | The following table provides details of property and equipment, net as of July 29, 2017 , January 28, 2017 and July 30, 2016 : July 29, January 28, July 30, (in millions) Property and Equipment, at Cost $ 6,478 $ 6,282 $ 5,991 Accumulated Depreciation and Amortization (3,637 ) (3,541 ) (3,405 ) Property and Equipment, Net $ 2,841 $ 2,741 $ 2,586 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Schedule Of Long-term Debt Instruments | The following table provides the Company’s debt balance, net of unamortized debt issuance costs and discounts, as of July 29, 2017 , January 28, 2017 and July 30, 2016 : July 29, January 28, July 30, (in millions) Senior Unsecured Debt with Subsidiary Guarantee $1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) $ 990 $ 989 $ 989 $1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) 993 992 992 $1 billion, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”) 993 992 991 $700 million, 6.75% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) 692 692 692 $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) 497 497 497 $500 million, 8.50% Fixed Interest Rate Notes due June 2019 (“2019 Notes”)(a) 497 496 500 $400 million, 7.00% Fixed Interest Rate Notes due May 2020 (“2020 Notes”) 397 397 396 Total Senior Unsecured Debt with Subsidiary Guarantee $ 5,059 $ 5,055 $ 5,057 Senior Unsecured Debt $350 million, 6.95% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) $ 348 $ 348 $ 348 $300 million, 7.60% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) 297 297 297 Foreign Facilities 64 36 17 Total Senior Unsecured Debt $ 709 $ 681 $ 662 Total $ 5,768 $ 5,736 $ 5,719 Current Portion of Long-term Debt (64 ) (36 ) (13 ) Total Long-term Debt, Net of Current Portion $ 5,704 $ 5,700 $ 5,706 ________________ (a) The balances include a fair value interest rate hedge adjustment which increased the debt balance by $2 million as of July 29, 2017 , $2 million as of January 28, 2017 and $8 million as of July 30, 2016 . |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Foreign Exchange Contract [Member] | |
Derivatives, Fair Value [Line Items] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table provides the U.S. dollar notional amount of outstanding foreign currency derivative financial instruments as of July 29, 2017 , January 28, 2017 and July 30, 2016 : July 29, January 28, July 30, (in millions) Notional Amount $ 376 $ 360 $ 152 |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | |
Derivatives, Fair Value [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position | The following table provides a summary of the fair value and balance sheet classification of outstanding derivative financial instruments designated as foreign currency cash flow hedges as of July 29, 2017 , January 28, 2017 and July 30, 2016 : July 29, January 28, July 30, (in millions) Other Current Assets $ 8 $ 18 $ — Accrued Expenses and Other 8 1 — Other Long-term Assets — — 16 Other Long-term Liabilities 3 — — |
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 derivative financial instruments designated as foreign currency cash flow hedges for the second quarter and year-to-date 2017 and 2016 : Second Quarter Year-to-Date 2017 2016 2017 2016 (in millions) Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) $ (28 ) $ 5 $ (18 ) $ (11 ) (Gain) Loss Reclassified from Accumulated Other Comprehensive Income into Cost of Goods Sold, Buying and Occupancy Expense (a) (1 ) — (3 ) — (Gain) Loss Reclassified from Accumulated Other Comprehensive Income into Other Income (b) 13 (5 ) 8 9 ________________ (a) Represents reclassification of amounts from accumulated other comprehensive income (loss) to earnings when the hedged merchandise is sold to the customer. No ineffectiveness was associated with these foreign currency cash flow hedges. (b) Represents reclassification of amounts from accumulated other comprehensive income (loss) to earnings to completely offset foreign currency transaction gains and losses recognized on the intercompany loan. No ineffectiveness was associated with this foreign currency cash flow hedge. |
Fair Value Hedging [Member] | Interest Rate Swap [Member] | |
Derivatives, Fair Value [Line Items] | |
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 July 29, 2017 , January 28, 2017 and July 30, 2016 : July 29, January 28, July 30, (in millions) Other Long-term Assets $ 2 $ 2 $ 8 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | |
Carrying Value And Fair Value Of Long-Term Debt, Disclosure | The following table provides a summary of the principal value and estimated fair value of long-term debt, excluding foreign facility borrowings, as of July 29, 2017 , January 28, 2017 and July 30, 2016 : July 29, January 28, July 30, (in millions) Principal Value $ 5,750 $ 5,750 $ 5,750 Fair Value (a) 5,929 6,030 6,349 _______________ (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 Measurement . 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 July 29, 2017 , January 28, 2017 and July 30, 2016 : Level 1 Level 2 Level 3 Total (in millions) As of July 29, 2017 Assets: Cash and Cash Equivalents $ 1,360 $ — $ — $ 1,360 Marketable Securities 6 — — 6 Interest Rate Fair Value Hedges — 2 — 2 Foreign Currency Cash Flow Hedges — 8 — 8 Liabilities: Foreign Currency Cash Flow Hedges — 11 — 11 As of January 28, 2017 Assets: Cash and Cash Equivalents $ 1,934 $ — $ — $ 1,934 Marketable Securities 5 — — 5 Interest Rate Fair Value Hedges — 2 — 2 Foreign Currency Cash Flow Hedges — 18 — 18 Liabilities: Foreign Currency Cash Flow Hedges — 1 — 1 As of July 30, 2016 Assets: Cash and Cash Equivalents $ 1,273 $ — $ — $ 1,273 Marketable Securities 8 — — 8 Interest Rate Fair Value Hedges — 8 — 8 Foreign Currency Cash Flow Hedges — 16 — 16 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Statement of Comprehensive Income [Abstract] | |
Components Of Accumulated Other Comprehensive Income (Loss) | The following table provides the rollforward of accumulated other comprehensive income (loss) for year-to-date 2016 : Foreign Currency Translation Cash Flow Hedges Marketable Securities Accumulated Other Comprehensive Income (Loss) (in millions) Balance as of January 30, 2016 $ 28 $ 4 $ 8 $ 40 Other Comprehensive Income (Loss) Before Reclassifications (10 ) (11 ) (5 ) (26 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 9 (4 ) 5 Tax Effect — — 3 3 Current-period Other Comprehensive Income (Loss) (10 ) (2 ) (6 ) (18 ) Balance as of July 30, 2016 $ 18 $ 2 $ 2 $ 22 The following table provides the rollforward of accumulated other comprehensive income (loss) for year-to-date 2017 : Foreign Currency Translation Cash Flow Hedges Marketable Securities Accumulated Other Comprehensive Income (Loss) (in millions) Balance as of January 28, 2017 $ 9 $ 3 $ — $ 12 Other Comprehensive Income (Loss) Before Reclassifications 10 (18 ) — (8 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 5 — 5 Tax Effect — 2 — 2 Current-period Other Comprehensive Income (Loss) 10 (11 ) — (1 ) Balance as of July 29, 2017 $ 19 $ (8 ) $ — $ 11 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table provides a summary of the reclassification adjustments out of accumulated other comprehensive income (loss) for the second quarter and year-to-date 2017 and 2016 : Details About Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Location on Consolidated Statements of Income Second Quarter Year-to-Date 2017 2016 2017 2016 (in millions) (Gain) Loss on Cash Flow Hedges $ (1 ) $ — $ (3 ) $ — Cost of Goods Sold, Buying and Occupancy 13 (5 ) 8 9 Other Income — — — — Provision for Income Taxes $ 12 $ (5 ) $ 5 $ 9 Net Income Sale of Available-for-Sale Securities $ — $ — $ — $ (4 ) Other Income — — — 1 Provision for Income Taxes $ — $ — $ — $ (3 ) Net Income |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information | The following table provides the Company’s segment information for the second quarter and year-to-date 2017 and 2016 : Victoria’s Secret Bath & Body Works Victoria’s Secret and Bath & Body Works International Other Total (in millions) 2017 Second Quarter: Net Sales $ 1,646 $ 860 $ 114 $ 135 $ 2,755 Operating Income (Loss) 183 156 2 (40 ) 301 Year-to-Date: Net Sales $ 3,179 $ 1,539 $ 217 $ 257 $ 5,192 Operating Income (Loss) 342 258 1 (91 ) 510 2016 Second Quarter: Net Sales $ 1,867 $ 801 $ 100 $ 122 $ 2,890 Operating Income (Loss) 281 148 8 (29 ) 408 Year-to-Date: Net Sales $ 3,608 $ 1,462 $ 195 $ 239 $ 5,504 Operating Income (Loss) 515 260 21 (64 ) 732 |
Supplemental Guarantor Financ35
Supplemental Guarantor Financial Information (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Condensed Consolidating Balance Sheet [Abstract] | |
Condensed Balance Sheet [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) (Unaudited) July 29, 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 1,008 $ 352 $ — $ 1,360 Accounts Receivable, Net — 147 98 — 245 Inventories — 995 123 — 1,118 Other — 148 86 — 234 Total Current Assets — 2,298 659 — 2,957 Property and Equipment, Net — 1,997 844 — 2,841 Goodwill — 1,318 30 — 1,348 Trade Names and Other Intangible Assets, Net — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 4,753 17,731 1,834 (24,318 ) — Deferred Income Taxes — 10 15 — 25 Other Assets 133 29 631 (612 ) 181 Total Assets $ 4,886 $ 23,794 $ 4,013 $ (24,930 ) $ 7,763 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ 3 $ 414 $ 341 $ — $ 758 Accrued Expenses and Other 101 452 307 — 860 Current Portion of Long-term Debt — — 64 — 64 Income Taxes 1 18 57 — 76 Total Current Liabilities 105 884 769 — 1,758 Deferred Income Taxes (3 ) (78 ) 450 — 369 Long-term Debt 5,704 597 — (597 ) 5,704 Other Long-term Liabilities 3 764 91 (14 ) 844 Total Equity (Deficit) (923 ) 21,627 2,703 (24,319 ) (912 ) Total Liabilities and Equity (Deficit) $ 4,886 $ 23,794 $ 4,013 $ (24,930 ) $ 7,763 L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) (Unaudited) July 30, 2016 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 890 $ 383 $ — $ 1,273 Accounts Receivable, Net 1 212 53 — 266 Inventories — 1,068 136 — 1,204 Other — 132 85 — 217 Total Current Assets 1 2,302 657 — 2,960 Property and Equipment, Net — 1,780 806 — 2,586 Goodwill — 1,318 30 — 1,348 Trade Names and Other Intangible Assets, Net — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 4,508 15,320 1,661 (21,489 ) — Deferred Income Taxes — 11 19 — 30 Other Assets 137 34 647 (612 ) 206 Total Assets $ 4,646 $ 21,176 $ 3,820 $ (22,101 ) $ 7,541 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ 4 $ 438 $ 351 $ — $ 793 Accrued Expenses and Other 104 481 294 — 879 Current Portion of Long-term Debt — — 13 — 13 Income Taxes (11 ) 4 141 — 134 Total Current Liabilities 97 923 799 — 1,819 Deferred Income Taxes (3 ) (78 ) 349 — 268 Long-term Debt 5,702 597 4 (597 ) 5,706 Other Long-term Liabilities 1 736 155 (15 ) 877 Total Equity (Deficit) (1,151 ) 18,998 2,513 (21,489 ) (1,129 ) Total Liabilities and Equity (Deficit) $ 4,646 $ 21,176 $ 3,820 $ (22,101 ) $ 7,541 L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) January 28, 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 1,562 $ 372 $ — $ 1,934 Accounts Receivable, Net — 228 66 — 294 Inventories — 976 120 — 1,096 Other — 53 88 — 141 Total Current Assets — 2,819 646 — 3,465 Property and Equipment, Net — 1,897 844 — 2,741 Goodwill — 1,318 30 — 1,348 Trade Names and Other Intangible Assets, Net — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 4,923 15,824 1,350 (22,097 ) — Deferred Income Taxes — 10 9 — 19 Other Assets 130 28 639 (611 ) 186 Total Assets $ 5,053 $ 22,307 $ 3,518 $ (22,708 ) $ 8,170 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ 3 $ 326 $ 354 $ — $ 683 Accrued Expenses and Other 100 526 371 — 997 Current Portion of Long-term Debt — — 36 — 36 Income Taxes (11 ) 221 88 — 298 Total Current Liabilities 92 1,073 849 — 2,014 Deferred Income Taxes (3 ) (93 ) 448 — 352 Long-term Debt 5,700 597 — (597 ) 5,700 Other Long-term Liabilities 3 761 81 (14 ) 831 Total Equity (Deficit) (739 ) 19,969 2,140 (22,097 ) (727 ) Total Liabilities and Equity (Deficit) $ 5,053 $ 22,307 $ 3,518 $ (22,708 ) $ 8,170 |
Condensed Income Statement [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) (Unaudited) Second Quarter 2016 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 2,724 $ 808 $ (642 ) $ 2,890 Costs of Goods Sold, Buying and Occupancy — (1,701 ) (669 ) 593 (1,777 ) Gross Profit — 1,023 139 (49 ) 1,113 General, Administrative and Store Operating Expenses (2 ) (635 ) (106 ) 38 (705 ) Operating Income (Loss) (2 ) 388 33 (11 ) 408 Interest Expense (101 ) (11 ) (3 ) 14 (101 ) Other Income (Loss) (36 ) 1 108 — 73 Income (Loss) Before Income Taxes (139 ) 378 138 3 380 Provision (Benefit) for Income Taxes (13 ) 72 69 — 128 Equity in Earnings (Loss), Net of Tax 378 223 196 (797 ) — Net Income (Loss) $ 252 $ 529 $ 265 $ (794 ) $ 252 Year-to-Date 2016 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 5,196 $ 1,666 $ (1,358 ) $ 5,504 Costs of Goods Sold, Buying and Occupancy — (3,240 ) (1,380 ) 1,272 (3,348 ) Gross Profit — 1,956 286 (86 ) 2,156 General, Administrative and Store Operating Expenses (4 ) (1,274 ) (219 ) 73 (1,424 ) Operating Income (Loss) (4 ) 682 67 (13 ) 732 Interest Expense (199 ) (20 ) (5 ) 25 (199 ) Other Income (Loss) (36 ) 2 114 — 80 Income (Loss) Before Income Taxes (239 ) 664 176 12 613 Provision (Benefit) for Income Taxes (14 ) 134 88 — 208 Equity in Earnings (Loss), Net of Tax 630 285 264 (1,179 ) — Net Income (Loss) $ 405 $ 815 $ 352 $ (1,167 ) $ 405 Year-to-Date 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 4,890 $ 1,526 $ (1,224 ) $ 5,192 Costs of Goods Sold, Buying and Occupancy — (3,140 ) (1,213 ) 1,092 (3,261 ) Gross Profit — 1,750 313 (132 ) 1,931 General, Administrative and Store Operating Expenses (6 ) (1,329 ) (186 ) 100 (1,421 ) Operating Income (Loss) (6 ) 421 127 (32 ) 510 Interest Expense (200 ) (33 ) (5 ) 37 (201 ) Other Income — 5 22 — 27 Income (Loss) Before Income Taxes (206 ) 393 144 5 336 Provision for Income Taxes — 65 38 — 103 Equity in Earnings (Loss), Net of Tax 439 476 380 (1,295 ) — Net Income (Loss) $ 233 $ 804 $ 486 $ (1,290 ) $ 233 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) (Unaudited) Second Quarter 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 2,594 $ 829 $ (668 ) $ 2,755 Costs of Goods Sold, Buying and Occupancy — (1,668 ) (642 ) 583 (1,727 ) Gross Profit — 926 187 (85 ) 1,028 General, Administrative and Store Operating Expenses (2 ) (693 ) (96 ) 64 (727 ) Operating Income (Loss) (2 ) 233 91 (21 ) 301 Interest Expense (100 ) (22 ) (3 ) 24 (101 ) Other Income — 2 15 — 17 Income (Loss) Before Income Taxes (102 ) 213 103 3 217 Provision for Income Taxes — 45 33 — 78 Equity in Earnings (Loss), Net of Tax 241 297 230 (768 ) — Net Income (Loss) $ 139 $ 465 $ 300 $ (765 ) $ 139 |
Condensed Statement of Comprehensive Income [Table Text Block] | Year-to-Date 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Income (Loss) $ 233 $ 804 $ 486 $ (1,290 ) $ 233 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — 10 — 10 Unrealized Gain (Loss) on Cash Flow Hedges — — (16 ) — (16 ) Reclassification of Cash Flow Hedges to Earnings — — 5 — 5 Total Other Comprehensive Income (Loss), Net of Tax — — (1 ) — (1 ) Total Comprehensive Income (Loss) $ 233 $ 804 $ 485 $ (1,290 ) $ 232 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) (Unaudited) Second Quarter 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Income (Loss) $ 139 $ 465 $ 300 $ (765 ) $ 139 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — 7 — 7 Unrealized Gain (Loss) on Cash Flow Hedges — — (26 ) — (26 ) Reclassification of Cash Flow Hedges to Earnings — — 12 — 12 Total Other Comprehensive Income (Loss), Net of Tax — — (7 ) — (7 ) Total Comprehensive Income (Loss) $ 139 $ 465 $ 293 $ (765 ) $ 132 Year-to-Date 2016 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Income (Loss) $ 405 $ 815 $ 352 $ (1,167 ) $ 405 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — (10 ) — (10 ) Unrealized Gain (Loss) on Cash Flow Hedges — — (11 ) — (11 ) Reclassification of Cash Flow Hedges to Earnings — — 9 — 9 Unrealized Loss on Marketable Securities — — (3 ) — (3 ) Reclassification of Gain on Marketable Securities to Earnings — — (3 ) — (3 ) Total Other Comprehensive Income (Loss), Net of Tax — — (18 ) — (18 ) Total Comprehensive Income (Loss) $ 405 $ 815 $ 334 $ (1,167 ) $ 387 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) (Unaudited) Second Quarter 2016 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Income (Loss) $ 252 $ 529 $ 265 $ (794 ) $ 252 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — (18 ) — (18 ) Unrealized Gain (Loss) on Cash Flow Hedges — — 5 — 5 Reclassification of Cash Flow Hedges to Earnings — — (5 ) — (5 ) Unrealized Loss on Marketable Securities — — (2 ) — (2 ) Total Other Comprehensive Income (Loss), Net of Tax — — (20 ) — (20 ) Total Comprehensive Income (Loss) $ 252 $ 529 $ 245 $ (794 ) $ 232 |
Condensed Cash Flow Statement [Table Text Block] | BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) (Unaudited) Year-to-Date 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Cash Provided by (Used for) Operating Activities $ (196 ) $ 349 $ 68 $ — $ 221 Investing Activities: Capital Expenditures — (301 ) (71 ) — (372 ) Return of Capital from Easton Investments — — 27 — 27 Other Investing Activities — — (5 ) — (5 ) Net Cash Used for Investing Activities — (301 ) (49 ) — (350 ) Financing Activities: Borrowings from Foreign Facilities — — 36 — 36 Repayments on Foreign Facilities — — (8 ) — (8 ) Dividends Paid (344 ) — — — (344 ) Repurchases of Common Stock (132 ) — — — (132 ) Tax Payments related to Share-based Awards (30 ) — — — (30 ) Proceeds from Exercise of Stock Options 37 — — — 37 Financing Costs (5 ) — — — (5 ) Other Financing Activities — (3 ) — — (3 ) Net Financing Activities and Advances to/from Consolidated Affiliates 670 (599 ) (71 ) — — Net Cash Provided by (Used for) Financing Activities 196 (602 ) (43 ) — (449 ) Effects of Exchange Rate Changes on Cash and Cash Equivalents — — 4 — 4 Net Decrease in Cash and Cash Equivalents — (554 ) (20 ) — (574 ) Cash and Cash Equivalents, Beginning of Period — 1,562 372 — 1,934 Cash and Cash Equivalents, End of Period $ — $ 1,008 $ 352 $ — $ 1,360 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) (Unaudited) Year-to-Date 2016 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Cash Provided by (Used for) Operating Activities $ (208 ) $ 523 $ 193 $ — $ 508 Investing Activities: Capital Expenditures — (382 ) (115 ) — (497 ) Return of Capital from Easton Investments — — 111 — 111 Acquisition, Net of Cash Acquired of $1 — — (31 ) — (31 ) Proceeds from Sale of Marketable Securities — — 10 — 10 Net Investments in Consolidated Affiliates — — (38 ) 38 — Other Investing Activities — 1 12 — 13 Net Cash Used for Investing Activities — (381 ) (51 ) 38 (394 ) Financing Activities: Proceeds from the Issuance of Long-term Debt, Net of Issuance Costs 692 — — — 692 Payment of Long-term Debt (742 ) — — — (742 ) Borrowings from Foreign Facilities — — 10 — 10 Dividends Paid (923 ) — — — (923 ) Repurchases of Common Stock (385 ) — — — (385 ) Tax Payments related to Share-based Awards (50 ) — — — (50 ) Proceeds from Exercise of Stock Options 13 — — — 13 Other Financing Activities — (1 ) — — (1 ) Net Financing Activities and Advances to/from Consolidated Affiliates 1,603 (1,441 ) (124 ) (38 ) — Net Cash Provided by (Used for) Financing Activities 208 (1,442 ) (114 ) (38 ) (1,386 ) Effects of Exchange Rate Changes on Cash and Cash Equivalents — — (3 ) — (3 ) Net Increase (Decrease) in Cash and Cash Equivalents — (1,300 ) 25 — (1,275 ) Cash and Cash Equivalents, Beginning of Period — 2,190 358 — 2,548 Cash and Cash Equivalents, End of Period $ — $ 890 $ 383 $ — $ 1,273 |
New Accounting Pronouncement Sh
New Accounting Pronouncement Share-based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Income Tax Expense (Benefit) | $ 78 | $ 128 | $ 103 | $ 208 |
Net Cash Provided by Operating Activities | 221 | 508 | ||
Adjustments for New Accounting Pronouncement [Member] | Accounting Standards Update 2016-09 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net Cash Provided by Operating Activities | $ 87 | |||
Accounting Standards Update 2016-09 [Member] | Adjustments for New Accounting Pronouncement [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Income Tax Expense (Benefit) | $ 2 | $ 13 |
Earnings Per Share And Shareh37
Earnings Per Share And Shareholders' Equity (Shares Utilized for the Calculation of Basic and Diluted Earnings per Share) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | ||
Weighted-average Common Shares: | |||||
Issued Shares | 318 | 314 | 317 | 314 | |
Treasury Shares | (31) | (27) | (31) | (27) | |
Basic Shares | 287 | 287 | 286 | 287 | |
Effect of Dilutive Options and Restricted Stock | 2 | 4 | 3 | 5 | |
Diluted Shares | 289 | 291 | 289 | 292 | |
Anti-dilutive Options and Awards (a) | [1] | 4 | 3 | 4 | 2 |
[1] | These options and awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. |
Earnings Per Share And Shareh38
Earnings Per Share And Shareholders' Equity (Schedule of Company's Repurchase Program) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended | 6 Months Ended | ||||
Aug. 31, 2017 | Jul. 29, 2017 | Jul. 30, 2016 | Apr. 29, 2017 | Jan. 28, 2017 | Apr. 30, 2016 | |
Shares Repurchased | 2,656 | 4,968 | ||||
Amount Repurchased | $ 132 | $ 388 | ||||
February 2017 Repurchase Program [Member] [Member] | ||||||
Amount Authorized | $ 250 | |||||
Shares Repurchased | 2,605 | |||||
Amount Repurchased | $ 129 | |||||
Average Stock Price of Shares Repurchased within Program | $ 49.58 | |||||
Remaining authorized repurchase amount | $ 121 | |||||
February 2016 Repurchase Program [Member] | ||||||
Amount Authorized | $ 500 | |||||
Shares Repurchased | 51 | 4,968 | ||||
Amount Repurchased | $ 3 | $ 388 | ||||
Average Stock Price of Shares Repurchased within Program | $ 58.95 | $ 78.07 | ||||
Remaining authorized repurchase amount | $ 59 | |||||
June 2015 Repurchase Program [Member] | ||||||
Remaining authorized repurchase amount | $ 17 | |||||
Accounts Payable [Member] | February 2017 Repurchase Program [Member] [Member] | ||||||
Share repurchase reflected in Accounts payable | $ 3 | |||||
Accounts Payable [Member] | February 2016 Repurchase Program [Member] | ||||||
Share repurchase reflected in Accounts payable | $ 3 | $ 3 | ||||
Subsequent Event [Member] | February 2017 Repurchase Program [Member] [Member] | ||||||
Shares Repurchased | 2,400 | |||||
Amount Repurchased | $ 90 |
Earnings Per Share And Shareh39
Earnings Per Share And Shareholders' Equity (Dividends) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jul. 29, 2017 | Apr. 29, 2017 | Jul. 30, 2016 | Apr. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Earnings Per Share And Shareholders' Equity [Abstract] | ||||||
Ordinary Dividends | $ 0.6 | $ 0.60 | $ 0.6 | $ 0.60 | $ 1.2 | $ 1.2 |
Special Dividends | 0 | 0 | 0 | 2 | 0 | 2 |
Total Dividends | $ 0.6 | $ 0.6 | $ 0.6 | $ 2.6 | $ 1.2 | $ 3.2 |
Payments of Dividends | $ 172 | $ 172 | $ 173 | $ 750 | $ 344 | $ 923 |
Acquisition (Details)
Acquisition (Details) - American Beauty Limited [Member] $ in Millions | Apr. 18, 2016USD ($) | Jan. 28, 2017USD ($) |
Business Acquisition [Line Items] | ||
Business Acquisition, Effective Date of Acquisition | Apr. 18, 2016 | |
Business Combination, Consideration Transferred | $ 44 | |
Number of Stores | 26 | |
Forgiveness of Liabilities Owed to the Company | $ 10 | |
Cash and Cash Equivalents | 1 | |
Inventories | 3 | |
Property and Equipment | 10 | |
Goodwill | 30 | |
Other Assets | 3 | |
Current Liabilities | (3) | |
Net Assets Acquired | $ 44 | |
Consideration Paid | $ 34 |
Restructuring Activities (Detai
Restructuring Activities (Details) $ in Millions | 3 Months Ended |
Apr. 30, 2016USD ($)position | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | $ 35 |
Cost of Goods Sold, Buying and Occupancy [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | 11 |
Selling, General and Administrative Expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Severance Costs | $ 24 |
Home Office Employees [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Number of Positions Eliminated | position | 200 |
Non-cash Charge [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | $ 10 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 |
Inventory [Line Items] | |||
Inventory, Finished Goods, Net of Reserves | $ 973 | $ 982 | $ 1,062 |
Raw Materials and Merchandise Components | 145 | 114 | 142 |
Total Inventories | $ 1,118 | $ 1,096 | $ 1,204 |
Property And Equipment, Net (De
Property And Equipment, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | Jan. 28, 2017 | |
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment, at Cost | $ 6,478 | $ 5,991 | $ 6,478 | $ 5,991 | $ 6,282 |
Accumulated Depreciation and Amortization | (3,637) | (3,405) | (3,637) | (3,405) | (3,541) |
Property and Equipment, Net | 2,841 | 2,586 | 2,841 | 2,586 | $ 2,741 |
Depreciation | $ 140 | $ 124 | $ 282 | $ 245 |
Equity Investments and Other (D
Equity Investments and Other (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | Jan. 28, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||
Proceeds from Equity Method Investment, Distribution, Return of Capital | $ 27 | $ 111 | ||
Gain (Loss) on Equity Method Investment Dividends Or Distributions | 20 | 108 | ||
Easton Investment [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments | $ 80 | 75 | $ 80 | $ 79 |
Proceeds from Equity Method Investment, Distribution, Return of Capital | 27 | |||
Gain (Loss) on Equity Method Investment Dividends Or Distributions | $ 20 | |||
Easton Town Center Investment [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Gain (Loss) on Equity Method Investment Dividends Or Distributions | 108 | |||
Gain (Loss) on Equity Method Investment Dividends or Distributions, Net of Tax | 70 | |||
Proceeds from Equity Method Investments, Return of Capital and Other | $ 124 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Effective Income Tax Rate, Continuing Operations | 36.00% | 33.60% | 30.60% | 34.00% |
Income Taxes Paid | $ 305 | $ 111 | $ 320 | $ 338 |
Long-term Debt (Schedule Of Lon
Long-term Debt (Schedule Of Long-term Debt Instruments) (Details) - USD ($) $ in Millions | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 | |
Senior Unsecured Debt with Subsidiary Guarantee | $ 5,059 | $ 5,055 | $ 5,057 | |
Unsecured Debt | 709 | 681 | 662 | |
Debt, Current | (64) | (36) | (13) | |
Debt, Long-term and Short-term, Combined Amount | 5,768 | 5,736 | 5,719 | |
Total Long-term Debt, Net of Current Portion | 5,704 | 5,700 | 5,706 | |
Fixed Rate 6.875% Notes Due November 2035 [Member] | ||||
Senior Unsecured Debt with Subsidiary Guarantee | 990 | 989 | 989 | |
Fixed Rate 5.625% Notes Due February 2022 [Member] | ||||
Senior Unsecured Debt with Subsidiary Guarantee | 993 | 992 | 992 | |
Fixed Rate 6.625% Notes Due April 2021 [Member] | ||||
Senior Unsecured Debt with Subsidiary Guarantee | 993 | 992 | 991 | |
Fixed Rate 5.625% Notes Due October 2023 [Member] | ||||
Senior Unsecured Debt with Subsidiary Guarantee | 497 | 497 | 497 | |
Fixed Rate 8.50% Notes Due June 2019 [Member] | ||||
Senior Unsecured Debt with Subsidiary Guarantee | [1] | 497 | 496 | 500 |
Fair Value Interest Rate Hedge Adjustment | 2 | 2 | 8 | |
Fixed Rate 7.00% Notes Due May 2020 [Member] | ||||
Senior Unsecured Debt with Subsidiary Guarantee | 397 | 397 | 396 | |
Fixed Rate 6.95% Debentures Due March 2033 [Member] | ||||
Senior Unsecured Debt | 348 | 348 | 348 | |
Fixed Rate 7.60% Notes Due July 2037 [Member] | ||||
Senior Unsecured Debt | 297 | 297 | 297 | |
Fixed Rate 6.75% Notes Due July 2036 [Member] | ||||
Senior Unsecured Debt with Subsidiary Guarantee | 692 | 692 | 692 | |
Foreign Facilities [Member] | ||||
Other Borrowings | $ 64 | $ 36 | $ 17 | |
[1] | The balances include a fair value interest rate hedge adjustment which increased the debt balance by $2 million as of July 29, 2017, $2 million as of January 28, 2017 and $8 million as of July 30, 2016. |
Long-term Debt (Issuance And Re
Long-term Debt (Issuance And Repurchase Of Notes) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Proceeds from Debt, Net of Issuance Costs | $ 0 | $ 692 | |
Debt Instrument, Repurchase Amount | 0 | 742 | |
Gain (Loss) on Extinguishment of Debt | $ 0 | (36) | |
Fixed Rate 6.75% Notes Due July 2036 [Member] | |||
Debt Instrument, Face Amount | $ 700 | $ 700 | |
Debt instrument, stated rate | 6.75% | 6.75% | |
Proceeds from Debt, Net of Issuance Costs | $ 692 | ||
Payments of Debt Issuance Costs | 8 | $ 8 | |
Fixed Rate 6.90% Notes Due July 2017 [Member] | |||
Extinguishment of Debt, Amount | 700 | ||
Debt Instrument, Repurchase Amount | 742 | ||
Gain (Loss) on Extinguishment of Debt | (36) | ||
Extinguishment of Debt, Gain (Loss), Net of Tax | (22) | ||
Gain (Loss) on Hedging Activity | $ 7 |
Long-term Debt (Revolving Facil
Long-term Debt (Revolving Facility And Letters Of Credit) (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017USD ($) | Jul. 30, 2016USD ($) | Jul. 29, 2017USD ($) | Jul. 30, 2016USD ($) | |
Proceeds from Long-term Lines of Credit | $ 36,000,000 | $ 10,000,000 | ||
Repayments of Lines of Credit | 8,000,000 | $ 0 | ||
Foreign Facilities [Member] | ||||
Revolving facility, borrowing capacity | $ 100,000,000 | 100,000,000 | ||
Proceeds from Long-term Lines of Credit | 36,000,000 | |||
Repayments of Lines of Credit | 8,000,000 | |||
Line of Credit Facility, Maximum Amount Outstanding During Period | 64,000,000 | |||
Fixed Rate 6.90% Notes Due July 2017 [Member] | ||||
Gain (Loss) on Hedging Activity | $ 7,000,000 | |||
Letter of Credit [Member] | ||||
Letters of Credit Outstanding, Amount | 8,000,000 | 8,000,000 | ||
Revolving Credit Facility [Member] | Revolving Credit Expiring May 2022 [Member] | ||||
Revolving facility, borrowing capacity | $ 1,000,000,000 | $ 1,000,000,000 | ||
Revolving Facility Commitment fee percentage, unused capacity | 0.25% | |||
Revolving Facility Current credit fees percentage rate, letters of credit | 1.50% | |||
Revolving Facility Percentage spread over variable base rate | 1.50% | |||
Revolving Facility Covenant Fixed charge coverage ratio | 1.75 | |||
Revolving Facility Covenant Ratio of consolidated debt to consolidated EBITDA | 4 | |||
Revolving Facility Covenant Debt to EBITDA ratio required for unlimited investments and restricted payments | 3 | 3 | ||
Revolving Facility Covenant Line of Credit Financial Covenant Ratio of Consolidated Debt to Consolidated EBITDA Maximum Current Rate | 3 | 3 | ||
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 5,000,000 | $ 5,000,000 | ||
Outstanding Borrowings on Lines of Credit | $ 0 | $ 0 |
Derivative Instruments (Foreign
Derivative Instruments (Foreign Exchange Contracts - Cash Flow Hedging Disclosure) (Details) CAD in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jul. 29, 2017USD ($) | Jul. 30, 2016USD ($) | Jul. 29, 2017USD ($) | Jul. 30, 2016USD ($) | Jul. 29, 2017CAD | Jul. 29, 2017USD ($) | Jan. 28, 2017USD ($) | |
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | $ (28) | $ 5 | $ (18) | $ (11) | |||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 16 | 16 | $ 8 | $ 18 | |||
Cost of Goods Sold, Buying and Occupancy [Member] | |||||||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | (1) | 0 | (3) | 0 | |||
Other Income (Loss) [Member] | |||||||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 13 | (5) | 8 | 9 | |||
Cash Flow Hedging [Member] | |||||||
Derivative, Notional Amount | 152 | 152 | 376 | 360 | |||
Cash Flow Hedging [Member] | Currency Swap [Member] | |||||||
Derivative, Notional Amount | CAD | CAD 170 | ||||||
Gain (Loss) on Foreign Currency Cash Flow Hedge Ineffectiveness | 0 | ||||||
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | |||||||
Derivative, Remaining Maturity | 18 months | ||||||
Gain (Loss) on Foreign Currency Cash Flow Hedge Ineffectiveness | $ 0 | ||||||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | 6 | ||||||
Other Current Assets [Member] | |||||||
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 0 | $ 0 | 8 | $ 18 | |||
Fixed Rate 8.50% Notes Due June 2019 [Member] | Fair Value Hedging [Member] | Interest Rate Swap [Member] | |||||||
Derivative, Notional Amount | $ 300 |
Derivative Instruments Fair Val
Derivative Instruments Fair Values Derivatives, Balance Sheet Location, by Derivative Contract Type (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | Jan. 28, 2017 | |
Derivatives, Fair Value [Line Items] | |||||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | $ (28) | $ 5 | $ (18) | $ (11) | |
Interest Rate Fair Value Hedges | 2 | 8 | 2 | 8 | $ 2 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 8 | 16 | 8 | 16 | 18 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 11 | 11 | 1 | ||
Other Current Assets [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 8 | 0 | 8 | 0 | 18 |
Accounts Payable and Accrued Liabilities [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 8 | 0 | 8 | 0 | 1 |
Other Assets [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Interest Rate Fair Value Hedges | 2 | 8 | 2 | 8 | 2 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0 | 16 | 0 | 16 | 0 |
Other Noncurrent Liabilities [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ 3 | $ 0 | $ 3 | $ 0 | $ 0 |
Derivative Instruments Derivati
Derivative Instruments Derivative Instruments (Interest Rate Contracts - Fair Value Hedging Disclosures) (Details) $ in Millions | Jul. 29, 2017USD ($) |
Fair Value Hedging [Member] | Interest Rate Swap [Member] | Fixed Rate 8.50% Notes Due June 2019 [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 300 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Value And Fair Value Of Long-Term Debt, Disclosure) (Detail) - USD ($) $ in Millions | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 | |
Fair Value Measurements | ||||
Principal Value | $ 5,750 | $ 5,750 | $ 5,750 | |
Fair Value (a) | [1] | $ 5,929 | $ 6,030 | $ 6,349 |
[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 Measurement. 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 | 3 Months Ended | 6 Months Ended | ||||
Jul. 29, 2017 | Jul. 30, 2016 | Apr. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | Jan. 28, 2017 | |
Available-for-sale Securities, Gross Realized Gains | $ 0 | $ 4 | ||||
Assets: | ||||||
Cash and Cash Equivalents | $ 1,360 | $ 1,273 | 1,360 | 1,273 | $ 1,934 | |
Available-for-sale Securities | 6 | 8 | 6 | 8 | 5 | |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 8 | 16 | 8 | 16 | 18 | |
Interest Rate Fair Value Hedges | 2 | 8 | 2 | 8 | 2 | |
Proceeds from Sale of Available-for-sale Securities, Equity | $ 10 | |||||
Liabilities: | ||||||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 11 | 11 | 1 | |||
Marketable Securities, Realized Gain (Loss) | 0 | 0 | $ (3) | 0 | (3) | |
Fair Value, Inputs, Level 1 [Member] | ||||||
Assets: | ||||||
Cash and Cash Equivalents | 1,360 | 1,273 | 1,360 | 1,273 | 1,934 | |
Available-for-sale Securities | 6 | 8 | 6 | 8 | 5 | |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0 | 0 | 0 | 0 | 0 | |
Interest Rate Fair Value Hedges | 0 | 0 | 0 | 0 | 0 | |
Liabilities: | ||||||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 0 | 0 | 0 | |||
Fair Value, Inputs, Level 2 [Member] | ||||||
Assets: | ||||||
Cash and Cash Equivalents | 0 | 0 | 0 | 0 | 0 | |
Available-for-sale Securities | 0 | 0 | 0 | 0 | 0 | |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 8 | 16 | 8 | 16 | 18 | |
Interest Rate Fair Value Hedges | 2 | 8 | 2 | 8 | 2 | |
Liabilities: | ||||||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 11 | 11 | 1 | |||
Fair Value, Inputs, Level 3 [Member] | ||||||
Assets: | ||||||
Cash and Cash Equivalents | 0 | 0 | 0 | 0 | 0 | |
Available-for-sale Securities | 0 | 0 | 0 | 0 | 0 | |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0 | 0 | 0 | 0 | 0 | |
Interest Rate Fair Value Hedges | 0 | $ 0 | 0 | $ 0 | 0 | |
Liabilities: | ||||||
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ 0 | $ 0 | $ 0 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Securities Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jul. 29, 2017 | Jul. 30, 2016 | Apr. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | Jan. 28, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investments, Fair Value Disclosure | $ 6 | $ 8 | $ 6 | $ 8 | $ 5 | |
Proceeds from Sale of Available-for-sale Securities, Equity | $ 10 | |||||
Available-for-sale Securities, Gross Realized Gains | 0 | 4 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | 0 | 3 | 0 | 3 | |
Fair Value, Inputs, Level 1 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investments, Fair Value Disclosure | 6 | 8 | 6 | 8 | $ 5 | |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Available-for-sale Securities, Gross Realized Gains | 0 | 0 | $ 4 | 0 | 4 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | $ 0 | $ 0 | $ 0 | $ 3 |
Comprehensive Income (Component
Comprehensive Income (Components Of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 29, 2017 | Jul. 30, 2016 | Apr. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | $ (8) | $ (26) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 5 | 5 | |||
Other Comprehensive Income (Loss), Tax | 2 | 3 | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | $ 40 | 12 | 40 | ||
Accumulated Other Comprehensive Income (Loss), Ending Balance | $ 11 | $ 22 | 11 | 22 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | 0 | (3) | 0 | (3) |
Available-for-sale Securities, Gross Realized Gains | 0 | (4) | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (12) | 5 | (5) | (9) | |
Other Comprehensive Income (Loss), Net of Tax | (7) | (20) | (1) | (18) | |
Accumulated Translation Adjustment [Member] | |||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 10 | (10) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | |||
Other Comprehensive Income (Loss), Tax | 0 | 0 | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | 28 | 9 | 28 | ||
Accumulated Other Comprehensive Income (Loss), Ending Balance | 19 | 18 | 19 | 18 | |
Other Comprehensive Income (Loss), Net of Tax | 10 | (10) | |||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (18) | (11) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 5 | 9 | |||
Other Comprehensive Income (Loss), Tax | 2 | 0 | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | 4 | 3 | 4 | ||
Accumulated Other Comprehensive Income (Loss), Ending Balance | (8) | 2 | (8) | 2 | |
Other Comprehensive Income (Loss), Net of Tax | (11) | (2) | |||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | (5) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | (4) | |||
Other Comprehensive Income (Loss), Tax | 0 | 3 | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | 8 | 0 | 8 | ||
Accumulated Other Comprehensive Income (Loss), Ending Balance | 0 | 2 | 0 | 2 | |
Other Comprehensive Income (Loss), Net of Tax | 0 | (6) | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 0 | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 12 | (5) | 5 | 9 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | 0 | 0 | 0 | 1 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | 0 | 0 | (3) | |
Available-for-sale Securities, Gross Realized Gains | 0 | 0 | $ (4) | 0 | (4) |
Cost of Goods Sold, Buying and Occupancy [Member] | |||||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | (1) | 0 | (3) | 0 | |
Other Income [Member] | |||||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 13 | $ (5) | $ 8 | $ 9 |
Commitments And Contingencies (
Commitments And Contingencies (Details) - USD ($) $ in Millions | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 |
Residual Value Guarantee of Leased Assets | $ 104 | ||
Lease guarantees, estimated fair value | 1 | $ 1 | $ 3 |
Property Lease Guarantee [Member] | |||
Lease guarantees remaining after disposition of certain businesses | $ 12 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Retirement Benefits Disclosure [Line Items] | ||||
Expense related to the qualified plan | $ 16 | $ 15 | $ 32 | $ 32 |
Other Pension Plans, Postretirement or Supplemental Plans, Defined Benefit [Member] | ||||
Retirement Benefits Disclosure [Line Items] | ||||
Expense related to non-qualified plan | $ 5 | $ 6 | $ 9 | $ 13 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017USD ($) | Jul. 30, 2016USD ($) | Jul. 29, 2017USD ($)Reportable_Segments | Jul. 30, 2016USD ($) | |
Number of Reportable Segments | Reportable_Segments | 3 | |||
Net Sales | $ 2,755 | $ 2,890 | $ 5,192 | $ 5,504 |
Operating Income (Loss) | 301 | 408 | 510 | 732 |
Victoria's Secret [Member] | ||||
Net Sales | 1,646 | 1,867 | 3,179 | 3,608 |
Operating Income (Loss) | 183 | 281 | 342 | 515 |
Bath & Body Works [Member] | ||||
Net Sales | 860 | 801 | 1,539 | 1,462 |
Operating Income (Loss) | 156 | 148 | 258 | 260 |
Victoria's Secret and Bath & Body Works International [Member] | ||||
Net Sales | 114 | 100 | 217 | 195 |
Operating Income (Loss) | 2 | 8 | 1 | 21 |
Other [Member] | ||||
Net Sales | 135 | 122 | 257 | 239 |
Operating Income (Loss) | (40) | (29) | (91) | (64) |
International [Member] | ||||
Net Sales | $ 350 | $ 333 | $ 649 | $ 628 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) shares in Thousands, $ in Millions | 1 Months Ended | 6 Months Ended | |
Aug. 31, 2017 | Jul. 29, 2017 | Jul. 30, 2016 | |
Subsequent Event [Line Items] | |||
Shares Repurchased | 2,656 | 4,968 | |
Amount Repurchased | $ 132 | $ 388 | |
February 2017 Repurchase Program [Member] [Member] | |||
Subsequent Event [Line Items] | |||
Shares Repurchased | 2,605 | ||
Amount Repurchased | $ 129 | ||
February 2017 Repurchase Program [Member] [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Shares Repurchased | 2,400 | ||
Amount Repurchased | $ 90 | ||
February 2016 Repurchase Program [Member] | |||
Subsequent Event [Line Items] | |||
Shares Repurchased | 51 | 4,968 | |
Amount Repurchased | $ 3 | $ 388 |
Supplemental Guarantor Financ60
Supplemental Guarantor Financial Information (Narrative) (Details) | 6 Months Ended |
Jul. 29, 2017 | |
Supplemental Guarantor Financial Information [Abstract] | |
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 Financ61
Supplemental Guarantor Financial Information (Consolidated Balance Sheets) (Details) - USD ($) $ in Millions | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 | Jan. 30, 2016 |
Current Assets: | ||||
Cash and Cash Equivalents | $ 1,360 | $ 1,934 | $ 1,273 | $ 2,548 |
Accounts Receivable, Net | 245 | 294 | 266 | |
Inventories | 1,118 | 1,096 | 1,204 | |
Other | 234 | 141 | 217 | |
Total Current Assets | 2,957 | 3,465 | 2,960 | |
Deferred Tax Assets, Net, Noncurrent | 25 | 19 | 30 | |
Property and Equipment, Net | 2,841 | 2,741 | 2,586 | |
Goodwill | 1,348 | 1,348 | 1,348 | |
Trade Names and Other Intangible Assets, Net | 411 | 411 | 411 | |
Net Investments in and Advances to/from Consolidated Affiliates | 0 | 0 | 0 | |
Other Assets | 181 | 186 | 206 | |
Total Assets | 7,763 | 8,170 | 7,541 | |
Current Liabilities: | ||||
Accounts Payable | 758 | 683 | 793 | |
Accrued Expenses and Other | 860 | 997 | 879 | |
Debt, Current | 64 | 36 | 13 | |
Income Taxes | 76 | 298 | 134 | |
Total Current Liabilities | 1,758 | 2,014 | 1,819 | |
Deferred Income Taxes | 369 | 352 | 268 | |
Long-term Debt | 5,704 | 5,700 | 5,706 | |
Other Long-term Liabilities | 844 | 831 | 877 | |
Total Equity (Deficit) | (912) | (727) | (1,129) | |
Total Liabilities and Equity (Deficit) | 7,763 | 8,170 | 7,541 | |
L Brands, Inc. | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 0 | 0 | 0 | 0 |
Accounts Receivable, Net | 0 | 0 | 1 | |
Inventories | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | |
Total Current Assets | 0 | 0 | 1 | |
Deferred Tax Assets, Net, Noncurrent | 0 | 0 | 0 | |
Property and Equipment, Net | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Trade Names and Other Intangible Assets, Net | 0 | 0 | 0 | |
Net Investments in and Advances to/from Consolidated Affiliates | 4,753 | 4,923 | 4,508 | |
Other Assets | 133 | 130 | 137 | |
Total Assets | 4,886 | 5,053 | 4,646 | |
Current Liabilities: | ||||
Accounts Payable | 3 | 3 | 4 | |
Accrued Expenses and Other | 101 | 100 | 104 | |
Debt, Current | 0 | 0 | 0 | |
Income Taxes | 1 | (11) | (11) | |
Total Current Liabilities | 105 | 92 | 97 | |
Deferred Income Taxes | (3) | (3) | (3) | |
Long-term Debt | 5,704 | 5,700 | 5,702 | |
Other Long-term Liabilities | 3 | 3 | 1 | |
Total Equity (Deficit) | (923) | (739) | (1,151) | |
Total Liabilities and Equity (Deficit) | 4,886 | 5,053 | 4,646 | |
Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 1,008 | 1,562 | 890 | 2,190 |
Accounts Receivable, Net | 147 | 228 | 212 | |
Inventories | 995 | 976 | 1,068 | |
Other | 148 | 53 | 132 | |
Total Current Assets | 2,298 | 2,819 | 2,302 | |
Deferred Tax Assets, Net, Noncurrent | 10 | 10 | 11 | |
Property and Equipment, Net | 1,997 | 1,897 | 1,780 | |
Goodwill | 1,318 | 1,318 | 1,318 | |
Trade Names and Other Intangible Assets, Net | 411 | 411 | 411 | |
Net Investments in and Advances to/from Consolidated Affiliates | 17,731 | 15,824 | 15,320 | |
Other Assets | 29 | 28 | 34 | |
Total Assets | 23,794 | 22,307 | 21,176 | |
Current Liabilities: | ||||
Accounts Payable | 414 | 326 | 438 | |
Accrued Expenses and Other | 452 | 526 | 481 | |
Debt, Current | 0 | 0 | 0 | |
Income Taxes | 18 | 221 | 4 | |
Total Current Liabilities | 884 | 1,073 | 923 | |
Deferred Income Taxes | (78) | (93) | (78) | |
Long-term Debt | 597 | 597 | 597 | |
Other Long-term Liabilities | 764 | 761 | 736 | |
Total Equity (Deficit) | 21,627 | 19,969 | 18,998 | |
Total Liabilities and Equity (Deficit) | 23,794 | 22,307 | 21,176 | |
Non- guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 352 | 372 | 383 | 358 |
Accounts Receivable, Net | 98 | 66 | 53 | |
Inventories | 123 | 120 | 136 | |
Other | 86 | 88 | 85 | |
Total Current Assets | 659 | 646 | 657 | |
Deferred Tax Assets, Net, Noncurrent | 15 | 9 | 19 | |
Property and Equipment, Net | 844 | 844 | 806 | |
Goodwill | 30 | 30 | 30 | |
Trade Names and Other Intangible Assets, Net | 0 | 0 | 0 | |
Net Investments in and Advances to/from Consolidated Affiliates | 1,834 | 1,350 | 1,661 | |
Other Assets | 631 | 639 | 647 | |
Total Assets | 4,013 | 3,518 | 3,820 | |
Current Liabilities: | ||||
Accounts Payable | 341 | 354 | 351 | |
Accrued Expenses and Other | 307 | 371 | 294 | |
Debt, Current | 64 | 36 | 13 | |
Income Taxes | 57 | 88 | 141 | |
Total Current Liabilities | 769 | 849 | 799 | |
Deferred Income Taxes | 450 | 448 | 349 | |
Long-term Debt | 0 | 0 | 4 | |
Other Long-term Liabilities | 91 | 81 | 155 | |
Total Equity (Deficit) | 2,703 | 2,140 | 2,513 | |
Total Liabilities and Equity (Deficit) | 4,013 | 3,518 | 3,820 | |
Eliminations | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 0 | 0 | 0 | $ 0 |
Accounts Receivable, Net | 0 | 0 | 0 | |
Inventories | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | |
Total Current Assets | 0 | 0 | 0 | |
Deferred Tax Assets, Net, Noncurrent | 0 | 0 | 0 | |
Property and Equipment, Net | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Trade Names and Other Intangible Assets, Net | 0 | 0 | 0 | |
Net Investments in and Advances to/from Consolidated Affiliates | (24,318) | (22,097) | (21,489) | |
Other Assets | (612) | (611) | (612) | |
Total Assets | (24,930) | (22,708) | (22,101) | |
Current Liabilities: | ||||
Accounts Payable | 0 | 0 | 0 | |
Accrued Expenses and Other | 0 | 0 | 0 | |
Debt, Current | 0 | 0 | 0 | |
Income Taxes | 0 | 0 | 0 | |
Total Current Liabilities | 0 | 0 | 0 | |
Deferred Income Taxes | 0 | 0 | 0 | |
Long-term Debt | (597) | (597) | (597) | |
Other Long-term Liabilities | (14) | (14) | (15) | |
Total Equity (Deficit) | (24,319) | (22,097) | (21,489) | |
Total Liabilities and Equity (Deficit) | $ (24,930) | $ (22,708) | $ (22,101) |
Supplemental Guarantor Financ62
Supplemental Guarantor Financial Information (Consolidated Statements Of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 29, 2017 | Jul. 30, 2016 | Apr. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Net Sales | $ 2,755 | $ 2,890 | $ 5,192 | $ 5,504 | |
Cost of Goods and Services Sold | (1,727) | (1,777) | (3,261) | (3,348) | |
Gross Profit | 1,028 | 1,113 | 1,931 | 2,156 | |
Selling, General and Administrative Expense | (727) | (705) | (1,421) | (1,424) | |
Operating Income (Loss) | 301 | 408 | 510 | 732 | |
Interest Expense | (101) | (101) | (201) | (199) | |
Other Nonoperating Income (Expense) | 17 | 73 | 27 | 80 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 217 | 380 | 336 | 613 | |
Provision for Income Taxes | 78 | 128 | 103 | 208 | |
Equity in Earnings (Loss), Net of Tax | 0 | 0 | 0 | 0 | |
Net Income (Loss) Attributable to Parent | 139 | 252 | 233 | 405 | |
Reclassification of Cash Flow Hedges to Earnings | 12 | (5) | 5 | 9 | |
Foreign Currency Translation | 7 | (18) | 10 | (10) | |
Unrealized Gain (Loss) on Cash Flow Hedges | (26) | 5 | (16) | (11) | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 0 | (2) | 0 | (3) | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | 0 | $ (3) | 0 | (3) |
Total Other Comprehensive Income (Loss), Net of Tax | (7) | (20) | (1) | (18) | |
Total Comprehensive Income | 132 | 232 | 232 | 387 | |
L Brands, Inc. | |||||
Net Sales | 0 | 0 | 0 | 0 | |
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | |
Gross Profit | 0 | 0 | 0 | 0 | |
Selling, General and Administrative Expense | (2) | (2) | (6) | (4) | |
Operating Income (Loss) | (2) | (2) | (6) | (4) | |
Interest Expense | (100) | (101) | (200) | (199) | |
Other Nonoperating Income (Expense) | 0 | (36) | 0 | (36) | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (102) | (139) | (206) | (239) | |
Provision for Income Taxes | 0 | (13) | 0 | (14) | |
Equity in Earnings (Loss), Net of Tax | 241 | 378 | 439 | 630 | |
Net Income (Loss) Attributable to Parent | 139 | 252 | 233 | 405 | |
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 | 0 | 0 | |
Foreign Currency Translation | 0 | 0 | 0 | 0 | |
Unrealized Gain (Loss) on Cash Flow Hedges | 0 | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 0 | 0 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | ||||
Total Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | 0 | |
Total Comprehensive Income | 139 | 252 | 233 | 405 | |
Guarantor Subsidiaries | |||||
Net Sales | 2,594 | 2,724 | 4,890 | 5,196 | |
Cost of Goods and Services Sold | (1,668) | (1,701) | (3,140) | (3,240) | |
Gross Profit | 926 | 1,023 | 1,750 | 1,956 | |
Selling, General and Administrative Expense | (693) | (635) | (1,329) | (1,274) | |
Operating Income (Loss) | 233 | 388 | 421 | 682 | |
Interest Expense | (22) | (11) | (33) | (20) | |
Other Nonoperating Income (Expense) | 2 | 1 | 5 | 2 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 213 | 378 | 393 | 664 | |
Provision for Income Taxes | 45 | 72 | 65 | 134 | |
Equity in Earnings (Loss), Net of Tax | 297 | 223 | 476 | 285 | |
Net Income (Loss) Attributable to Parent | 465 | 529 | 804 | 815 | |
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 | 0 | 0 | |
Foreign Currency Translation | 0 | 0 | 0 | 0 | |
Unrealized Gain (Loss) on Cash Flow Hedges | 0 | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 0 | 0 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | ||||
Total Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | 0 | |
Total Comprehensive Income | 465 | 529 | 804 | 815 | |
Non- guarantor Subsidiaries | |||||
Net Sales | 829 | 808 | 1,526 | 1,666 | |
Cost of Goods and Services Sold | (642) | (669) | (1,213) | (1,380) | |
Gross Profit | 187 | 139 | 313 | 286 | |
Selling, General and Administrative Expense | (96) | (106) | (186) | (219) | |
Operating Income (Loss) | 91 | 33 | 127 | 67 | |
Interest Expense | (3) | (3) | (5) | (5) | |
Other Nonoperating Income (Expense) | 15 | 108 | 22 | 114 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 103 | 138 | 144 | 176 | |
Provision for Income Taxes | 33 | 69 | 38 | 88 | |
Equity in Earnings (Loss), Net of Tax | 230 | 196 | 380 | 264 | |
Net Income (Loss) Attributable to Parent | 300 | 265 | 486 | 352 | |
Reclassification of Cash Flow Hedges to Earnings | 12 | (5) | 5 | 9 | |
Foreign Currency Translation | 7 | (18) | 10 | (10) | |
Unrealized Gain (Loss) on Cash Flow Hedges | (26) | 5 | (16) | (11) | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (2) | (3) | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (3) | ||||
Total Other Comprehensive Income (Loss), Net of Tax | (7) | (20) | (1) | (18) | |
Total Comprehensive Income | 293 | 245 | 485 | 334 | |
Eliminations | |||||
Net Sales | (668) | (642) | (1,224) | (1,358) | |
Cost of Goods and Services Sold | 583 | 593 | 1,092 | 1,272 | |
Gross Profit | (85) | (49) | (132) | (86) | |
Selling, General and Administrative Expense | 64 | 38 | 100 | 73 | |
Operating Income (Loss) | (21) | (11) | (32) | (13) | |
Interest Expense | 24 | 14 | 37 | 25 | |
Other Nonoperating Income (Expense) | 0 | 0 | 0 | 0 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 3 | 3 | 5 | 12 | |
Provision for Income Taxes | 0 | 0 | 0 | 0 | |
Equity in Earnings (Loss), Net of Tax | (768) | (797) | (1,295) | (1,179) | |
Net Income (Loss) Attributable to Parent | (765) | (794) | (1,290) | (1,167) | |
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 | 0 | 0 | |
Foreign Currency Translation | 0 | 0 | 0 | 0 | |
Unrealized Gain (Loss) on Cash Flow Hedges | 0 | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 0 | 0 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | ||||
Total Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | 0 | |
Total Comprehensive Income | $ (765) | $ (794) | $ (1,290) | $ (1,167) |
Supplemental Guarantor Financ63
Supplemental Guarantor Financial Information (Consolidated Statements Of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jul. 29, 2017 | Apr. 29, 2017 | Jul. 30, 2016 | Apr. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Net Cash Provided by Operating Activities | $ 221 | $ 508 | ||||
Investing Activities: | ||||||
Capital Expenditures | (372) | (497) | ||||
Proceeds from Equity Method Investment, Distribution, Return of Capital | 27 | 111 | ||||
Proceeds from Sale and Maturity of Marketable Securities | 0 | 10 | ||||
Investment In Equity Affiliates | 0 | |||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | (31) | ||||
Other Investing Activities | (5) | 13 | ||||
Net Cash Provided by (Used for) Investing Activities | (350) | (394) | ||||
Proceeds from Lines of Credit | 36 | 10 | ||||
Financing Activities: | ||||||
Proceeds from Debt, Net of Issuance Costs | 0 | 692 | ||||
Repayments of Long-term Debt | 0 | (742) | ||||
Repayments of Lines of Credit | (8) | 0 | ||||
Payments of Dividends | $ (172) | $ (172) | $ (173) | $ (750) | (344) | (923) |
Repurchases of Common Stock | (132) | (385) | ||||
Payments Related to Tax Withholding for Share-based Compensation | (30) | (50) | ||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 0 | 0 | ||||
Proceeds from Exercise of Stock Options | 37 | 13 | ||||
Payments of Financing Costs | (5) | 0 | ||||
Proceeds from (Payments for) Other Financing Activities | (3) | (1) | ||||
Net Cash Provided by (Used for) Financing Activities | (449) | (1,386) | ||||
Effects of Exchange Rate Changes on Cash and Cash Equivalents | 4 | (3) | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | (574) | (1,275) | ||||
Cash and Cash Equivalents, Beginning of Period | 1,934 | 2,548 | 1,934 | 2,548 | ||
Cash and Cash Equivalents, End of Period | 1,360 | 1,273 | 1,360 | 1,273 | ||
L Brands, Inc. | ||||||
Net Cash Provided by Operating Activities | (196) | (208) | ||||
Investing Activities: | ||||||
Capital Expenditures | 0 | 0 | ||||
Proceeds from Equity Method Investment, Distribution, Return of Capital | 0 | 0 | ||||
Proceeds from Sale and Maturity of Marketable Securities | 0 | |||||
Investment In Equity Affiliates | 0 | |||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | |||||
Other Investing Activities | 0 | 0 | ||||
Net Cash Provided by (Used for) Investing Activities | 0 | 0 | ||||
Proceeds from Lines of Credit | 0 | 0 | ||||
Financing Activities: | ||||||
Proceeds from Debt, Net of Issuance Costs | 692 | |||||
Repayments of Long-term Debt | (742) | |||||
Repayments of Lines of Credit | 0 | |||||
Payments of Dividends | (344) | (923) | ||||
Repurchases of Common Stock | (132) | (385) | ||||
Payments Related to Tax Withholding for Share-based Compensation | (30) | (50) | ||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 670 | 1,603 | ||||
Proceeds from Exercise of Stock Options | 37 | 13 | ||||
Payments of Financing Costs | (5) | |||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | ||||
Net Cash Provided by (Used for) Financing Activities | 196 | 208 | ||||
Effects of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | 0 | 0 | ||||
Cash and Cash Equivalents, Beginning of Period | 0 | 0 | 0 | 0 | ||
Cash and Cash Equivalents, End of Period | 0 | 0 | 0 | 0 | ||
Guarantor Subsidiaries | ||||||
Net Cash Provided by Operating Activities | 349 | 523 | ||||
Investing Activities: | ||||||
Capital Expenditures | (301) | (382) | ||||
Proceeds from Equity Method Investment, Distribution, Return of Capital | 0 | 0 | ||||
Proceeds from Sale and Maturity of Marketable Securities | 0 | |||||
Investment In Equity Affiliates | 0 | |||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | |||||
Other Investing Activities | 0 | 1 | ||||
Net Cash Provided by (Used for) Investing Activities | (301) | (381) | ||||
Proceeds from Lines of Credit | 0 | 0 | ||||
Financing Activities: | ||||||
Proceeds from Debt, Net of Issuance Costs | 0 | |||||
Repayments of Long-term Debt | 0 | |||||
Repayments of Lines of Credit | 0 | |||||
Payments of Dividends | 0 | 0 | ||||
Repurchases of Common Stock | 0 | 0 | ||||
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 | ||||
Net Financing Activities and Advances to/from Consolidated Affiliates | (599) | (1,441) | ||||
Proceeds from Exercise of Stock Options | 0 | 0 | ||||
Payments of Financing Costs | 0 | |||||
Proceeds from (Payments for) Other Financing Activities | (3) | (1) | ||||
Net Cash Provided by (Used for) Financing Activities | (602) | (1,442) | ||||
Effects of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | (554) | (1,300) | ||||
Cash and Cash Equivalents, Beginning of Period | 1,562 | 2,190 | 1,562 | 2,190 | ||
Cash and Cash Equivalents, End of Period | 1,008 | 890 | 1,008 | 890 | ||
Non- guarantor Subsidiaries | ||||||
Net Cash Provided by Operating Activities | 68 | 193 | ||||
Investing Activities: | ||||||
Capital Expenditures | (71) | (115) | ||||
Proceeds from Equity Method Investment, Distribution, Return of Capital | 27 | 111 | ||||
Proceeds from Sale and Maturity of Marketable Securities | 10 | |||||
Investment In Equity Affiliates | (38) | |||||
Payments to Acquire Businesses, Net of Cash Acquired | (31) | |||||
Other Investing Activities | (5) | 12 | ||||
Net Cash Provided by (Used for) Investing Activities | (49) | (51) | ||||
Proceeds from Lines of Credit | 36 | 10 | ||||
Financing Activities: | ||||||
Proceeds from Debt, Net of Issuance Costs | 0 | |||||
Repayments of Long-term Debt | 0 | |||||
Repayments of Lines of Credit | (8) | |||||
Payments of Dividends | 0 | 0 | ||||
Repurchases of Common Stock | 0 | 0 | ||||
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 | ||||
Net Financing Activities and Advances to/from Consolidated Affiliates | (71) | (124) | ||||
Proceeds from Exercise of Stock Options | 0 | 0 | ||||
Payments of Financing Costs | 0 | |||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | ||||
Net Cash Provided by (Used for) Financing Activities | (43) | (114) | ||||
Effects of Exchange Rate Changes on Cash and Cash Equivalents | 4 | (3) | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | (20) | 25 | ||||
Cash and Cash Equivalents, Beginning of Period | 372 | 358 | 372 | 358 | ||
Cash and Cash Equivalents, End of Period | 352 | 383 | 352 | 383 | ||
Consolidation, Eliminations [Member] | ||||||
Net Cash Provided by Operating Activities | 0 | 0 | ||||
Investing Activities: | ||||||
Capital Expenditures | 0 | 0 | ||||
Proceeds from Equity Method Investment, Distribution, Return of Capital | 0 | 0 | ||||
Proceeds from Sale and Maturity of Marketable Securities | 0 | |||||
Investment In Equity Affiliates | 38 | |||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | |||||
Other Investing Activities | 0 | 0 | ||||
Net Cash Provided by (Used for) Investing Activities | 0 | 38 | ||||
Proceeds from Lines of Credit | 0 | 0 | ||||
Financing Activities: | ||||||
Proceeds from Debt, Net of Issuance Costs | 0 | |||||
Repayments of Long-term Debt | 0 | |||||
Repayments of Lines of Credit | 0 | |||||
Payments of Dividends | 0 | 0 | ||||
Repurchases of Common Stock | 0 | 0 | ||||
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 | ||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 0 | (38) | ||||
Proceeds from Exercise of Stock Options | 0 | 0 | ||||
Payments of Financing Costs | 0 | |||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | ||||
Net Cash Provided by (Used for) Financing Activities | 0 | (38) | ||||
Effects of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | 0 | 0 | ||||
Cash and Cash Equivalents, Beginning of Period | $ 0 | $ 0 | 0 | 0 | ||
Cash and Cash Equivalents, End of Period | $ 0 | $ 0 | $ 0 | $ 0 |