Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 29, 2022 | Mar. 11, 2022 | Jul. 31, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 29, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 1-8344 | ||
Entity Registrant Name | BATH & BODY WORKS, INC. | ||
Entity Central Index Key | 0000701985 | ||
Current Fiscal Year End Date | --01-29 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 31-1029810 | ||
Entity Address, Address Line One | Three Limited Parkway, | ||
Entity Address, City or Town | Columbus, | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 43230 | ||
City Area Code | 614 | ||
Local Phone Number | 415-7000 | ||
Title of 12(b) Security | Common Stock, $0.50 Par Value | ||
Trading Symbol | BBWI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 21.2 | ||
Entity Common Stock, Shares Outstanding | 238,910,116 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant’s Proxy Statement for the Registrant’s 2022 Annual Meeting of Stockholders are incorporated by reference into Part III. |
Audit Information
Audit Information | 12 Months Ended |
Jan. 29, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Grandview Heights, Ohio |
Auditor Firm ID | 42 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | ||
Income Statement [Abstract] | ||||
Net Sales | $ 7,882 | $ 6,434 | $ 5,405 | |
Costs of Goods Sold, Buying and Occupancy | (4,027) | (3,338) | (3,018) | |
Gross Profit | 3,855 | 3,096 | 2,387 | |
General, Administrative and Store Operating Expenses | (1,846) | (1,492) | (1,347) | |
Operating Income | 2,009 | 1,604 | 1,040 | |
Interest Expense | (388) | (432) | (370) | |
Other Loss | (198) | (50) | (62) | |
Income from Continuing Operations Before Income Taxes | 1,423 | 1,122 | 608 | |
Provision for Income Taxes | 348 | 257 | 148 | |
Net Income from Continuing Operations | 1,075 | 865 | 460 | |
Income (Loss) from Discontinued Operations, Net of Tax | 258 | (21) | (826) | |
Net Income (Loss) | [1] | $ 1,333 | $ 844 | $ (366) |
Net Income (Loss) per Basic Share | ||||
Continuing Operations (in USD per share) | $ 4 | $ 3.11 | $ 1.66 | |
Discontinued Operations (in USD per share) | 0.96 | (0.07) | (2.99) | |
Total Net Income (Loss) Per Basic Share (in USD per share) | 4.96 | 3.04 | (1.33) | |
Net Income (Loss) per Diluted Share | ||||
Continuing Operations (in USD per share) | 3.94 | 3.07 | 1.65 | |
Discontinued Operations (in USD per share) | 0.95 | (0.07) | (2.97) | |
Total Net Income (Loss) Per Diluted Share (in USD per share) | $ 4.88 | $ 3 | $ (1.32) | |
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | ||
Consolidated Statements of Income [Abstract] | ||||
Net Income (Loss) | [1] | $ 1,333 | $ 844 | $ (366) |
Other Comprehensive Income (Loss), Net of Tax | ||||
Foreign Currency Translation | 2 | (3) | (5) | |
Reclassification of Currency Translation to Earnings | 0 | 36 | 0 | |
Unrealized Gain (Loss) on Cash Flow Hedges | 1 | (2) | 2 | |
Reclassification of Cash Flow Hedges to Earnings | 2 | 0 | (4) | |
Total Other Comprehensive Income (Loss), Net of Tax | 5 | 31 | (7) | |
Total Comprehensive Income (Loss) | $ 1,338 | $ 875 | $ (373) | |
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jan. 29, 2022 | Jan. 30, 2021 |
Current Assets: | ||
Cash and Cash Equivalents | $ 1,979 | $ 3,568 |
Accounts Receivable, Net | 240 | 148 |
Inventories | 709 | 572 |
Other | 81 | 52 |
Current Assets of Discontinued Operations | 0 | 1,239 |
Total Current Assets | 3,009 | 5,579 |
Property and Equipment, Net | 1,009 | 1,017 |
Operating Lease Assets | 1,021 | 968 |
Goodwill | 628 | 628 |
Trade Name | 165 | 165 |
Deferred Income Taxes | 45 | 58 |
Other Assets | 149 | 175 |
Other Assets of Discontinued Operations | 0 | 2,981 |
Total Assets | 6,026 | 11,571 |
Current Liabilities: | ||
Accounts Payable | 435 | 345 |
Accrued Expenses and Other | 651 | 727 |
Current Operating Lease Liabilities | 170 | 173 |
Income Taxes | 34 | 83 |
Current Liabilities of Discontinued Operations | 0 | 1,498 |
Total Current Liabilities | 1,290 | 2,826 |
Deferred Income Taxes | 157 | 141 |
Long-term Debt | 4,854 | 6,366 |
Long-term Operating Lease Liabilities | 989 | 942 |
Other Long-term Liabilities | 253 | 290 |
Other Long-term Liabilities of Discontinued Operations | 0 | 1,667 |
Shareholders' Equity (Deficit): | ||
Preferred Stock—$1.00 par value; 10 shares authorized; none issued | 0 | 0 |
Common Stock—$0.50 par value; 1,000 shares authorized; 269 and 286 shares issued; 254 and 278 shares outstanding, respectively | 134 | 143 |
Paid-in Capital | 893 | 891 |
Accumulated Other Comprehensive Income | 80 | 83 |
Retained Earnings (Accumulated Deficit) | (1,803) | (1,421) |
Less: Treasury Stock, at Average Cost; 15 and 8 shares, respectively | (822) | (358) |
Total Bath & Body Works, Inc. Shareholders’ Equity (Deficit) | (1,518) | (662) |
Noncontrolling Interest | 1 | 1 |
Total Equity (Deficit) | (1,517) | (661) |
Total Liabilities and Equity (Deficit) | $ 6,026 | $ 11,571 |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Jan. 29, 2022 | Jan. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 10 | 10 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, shares authorized (in shares) | 1,000 | 1,000 |
Common stock, shares issued (in shares) | 269 | 286 |
Common stock, shares outstanding (in shares) | 254 | 278 |
Treasury stock (in shares) | 15 | 8 |
Consolidated Statements of Tota
Consolidated Statements of Total Equity (Deficit) - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common StockCumulative Effect, Period of Adoption, Adjusted Balance | Paid-In Capital | Paid-In CapitalCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Income | Accumulated Other Comprehensive IncomeCumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit)Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings (Accumulated Deficit)Cumulative Effect, Period of Adoption, Adjusted Balance | Treasury Stock, at Average Cost | Treasury Stock, at Average CostCumulative Effect, Period of Adoption, Adjusted Balance | Noncontrolling Interest | Noncontrolling InterestCumulative Effect, Period of Adoption, Adjusted Balance | |
Ending Balance (in shares) | 275 | 275 | |||||||||||||||
Beginning Balance (in shares) at Feb. 02, 2019 | 275 | 275 | |||||||||||||||
Beginning Balance at Feb. 02, 2019 | $ (865) | $ (2) | $ (867) | $ 141 | $ 141 | $ 771 | $ 771 | $ 59 | $ 59 | $ (1,482) | $ (2) | $ (1,484) | $ (358) | $ (358) | $ 4 | $ 4 | |
Net Income (Loss) | (366) | [1] | (366) | ||||||||||||||
Other Comprehensive Loss | (7) | (7) | |||||||||||||||
Total Comprehensive Loss | (373) | (7) | (366) | ||||||||||||||
Cash Dividends | (332) | (332) | |||||||||||||||
Share-based Compensation and Other (in shares) | 2 | ||||||||||||||||
Share-based Compensation and Other | 77 | $ 1 | 76 | ||||||||||||||
Ending Balance at Feb. 01, 2020 | (1,495) | $ 142 | 847 | 52 | (2,182) | (358) | 4 | ||||||||||
Ending Balance (in shares) | 277 | ||||||||||||||||
Beginning Balance (in shares) at Feb. 01, 2020 | 277 | ||||||||||||||||
Net Income (Loss) | 844 | [1] | 844 | ||||||||||||||
Other Comprehensive Loss | 31 | 31 | |||||||||||||||
Total Comprehensive Loss | 875 | 31 | 844 | ||||||||||||||
Cash Dividends | (83) | (83) | |||||||||||||||
Share-based Compensation and Other (in shares) | 1 | ||||||||||||||||
Share-based Compensation and Other | 42 | $ 1 | 44 | (3) | |||||||||||||
Ending Balance at Jan. 30, 2021 | $ (661) | $ 143 | 891 | 83 | (1,421) | (358) | 1 | ||||||||||
Ending Balance (in shares) | 278 | 278 | |||||||||||||||
Beginning Balance (in shares) at Jan. 30, 2021 | 278 | 278 | |||||||||||||||
Net Income (Loss) | $ 1,333 | [1] | 1,333 | ||||||||||||||
Other Comprehensive Loss | 5 | 5 | |||||||||||||||
Total Comprehensive Loss | 1,338 | 5 | 1,333 | ||||||||||||||
Victoria's Secret Spin-Off | (183) | (8) | (175) | ||||||||||||||
Cash Dividends | (120) | (120) | |||||||||||||||
Repurchase of Common Stock (in shares) | 28 | ||||||||||||||||
Repurchase of Common Stock | (1,964) | (1,964) | |||||||||||||||
Treasury Share Retirement | 0 | $ (11) | (69) | (1,420) | 1,500 | ||||||||||||
Share-based Compensation and Other (in shares) | 4 | ||||||||||||||||
Share-based Compensation and Other | 73 | $ 2 | 71 | ||||||||||||||
Ending Balance at Jan. 29, 2022 | $ (1,517) | $ 134 | $ 893 | $ 80 | $ (1,803) | $ (822) | $ 1 | ||||||||||
Ending Balance (in shares) | 254 | 254 | |||||||||||||||
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
Consolidated Statements of To_2
Consolidated Statements of Total Equity (Deficit) (Parenthetical) - $ / shares | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per share (in USD per share) | $ 0.45 | $ 0.30 | $ 1.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | ||
Statement of Cash Flows [Abstract] | ||||
Net Income (Loss) | [1] | $ 1,333 | $ 844 | $ (366) |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | ||||
Depreciation of Long-lived Assets | [1] | 363 | 521 | 588 |
Loss on Extinguishment of Debt | [1] | 195 | 53 | 40 |
Share-based Compensation Expense | [1] | 46 | 50 | 87 |
Deferred Income Taxes | [1] | 45 | 33 | (29) |
Impairment of Victoria's Secret Goodwill | [1] | 0 | 0 | 720 |
Victoria's Secret Asset Impairment Charges | [1] | 0 | 254 | 263 |
Gain from Victoria's Secret Hong Kong Store Closure and Lease Termination | [1] | 0 | (39) | 0 |
Gain Related to Formation of Victoria's Secret U.K. Joint Venture | [1] | 0 | (54) | 0 |
La Senza Charges | [1] | 0 | 0 | 37 |
Changes in Assets and Liabilities, Net of Assets and Liabilities related to Divestitures: | ||||
Accounts Receivable | [1] | (64) | 38 | 31 |
Inventories | [1] | (177) | 3 | (40) |
Accounts Payable, Accrued Expenses and Other | [1] | (86) | 166 | (93) |
Income Taxes Payable | [1] | (72) | (43) | 18 |
Other Assets and Liabilities | [1] | (91) | 213 | (20) |
Net Cash Provided by Operating Activities | [1] | 1,492 | 2,039 | 1,236 |
Investing Activities | ||||
Capital Expenditures | [1] | (270) | (228) | (458) |
Other Investing Activities | [1] | 11 | 9 | (22) |
Net Cash Used for Investing Activities | [1] | (259) | (219) | (480) |
Financing Activities | ||||
Proceeds from Issuance of Long-term Debt, Net of Issuance Costs | [1] | 0 | 2,218 | 486 |
Payments of Long-term Debt | [1] | (1,716) | (1,307) | (799) |
Borrowing from Credit Agreement | [1] | 0 | 950 | 12 |
Repayment of Credit Agreement | [1] | 0 | (950) | (12) |
Proceeds from Spin-Off of Victoria's Secret & Co. | [1] | 976 | 0 | 0 |
Transfers and Payments to Victoria's Secret & Co. related to Spin-Off | [1] | (376) | 0 | 0 |
Net Borrowings from (Repayments of) Victoria's Secret Foreign Facilities | [1] | 0 | (155) | 5 |
Repurchases of Common Stock | [1] | (1,964) | 0 | 0 |
Dividends Paid | [1] | (120) | (83) | (332) |
Proceeds from Stock Option Exercises | [1] | 83 | 8 | 1 |
Tax Payments related to Share-based Awards | [1] | (59) | (12) | (13) |
Payments of Finance Lease Obligations | [1] | (12) | (53) | (8) |
Other Financing Activities | [1] | 0 | (6) | (6) |
Net Cash Provided by (Used for) Financing Activities | [1] | (3,188) | 610 | (666) |
Effects of Exchange Rate Changes on Cash and Cash Equivalents and Restricted Cash | [1] | 1 | 4 | (4) |
Net Increase (Decrease) in Cash and Cash Equivalents and Restricted Cash | [1] | (1,954) | 2,434 | 86 |
Cash and Cash Equivalents and Restricted Cash, Beginning of Year | [1] | 3,933 | 1,499 | 1,413 |
Cash and Cash Equivalents and Restricted Cash, End of Year | [1] | $ 1,979 | $ 3,933 | $ 1,499 |
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 29, 2022 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business Bath & Body Works, Inc. ("Bath & Body Works" or the "Company") is a specialty retailer of home fragrance, body care products and soaps and sanitizer products. Through the Bath & Body Works, White Barn and other brand names, the Company sells merchandise through Company-operated specialty retail stores in the United States of America ("U.S.") and Canada, and through its websites and other channels. The Company's international operations are primarily through franchise, license and wholesale partners. On August 2, 2021, the Company completed the tax-free spin-off of its Victoria's Secret business, which included the Victoria's Secret and PINK brands, into an independent publicly traded company (the "Separation"). Accordingly, the operating results of, and costs to separate, the Victoria's Secret business are reported in Income (Loss) from Discontinued Operations, Net of Tax in the Consolidated Statements of Income (Loss) for all periods presented. In addition, the related assets and liabilities are reported as Assets and Liabilities of Discontinued Operations on the Consolidated Balance Sheets. All amounts and disclosures included in the Notes to Consolidated Financial Statements reflect only the Company's continuing operations unless otherwise noted. For additional information, see Note 2, "Discontinued Operations." On August 2, 2021, in connection with the tax-free spin-off of the Victoria's Secret business discussed above, the Company changed its name from L Brands, Inc. to Bath & Body Works, Inc. Additionally, starting August 3, 2021, the Company's common stock began trading under the stock symbol "BBWI." Segment Reporting The Company operates as and reports a single segment that includes all of its continuing operations. The Company previously had two reportable segments: Bath & Body Works and Victoria's Secret. The Victoria's Secret reportable segment was spun-off on August 2, 2021 and is reported as discontinued operations for all periods presented. Impacts of COVID-19 The coronavirus ("COVID-19") pandemic has created significant public health concerns as well as economic disruption, uncertainty and volatility. The Company's operations and financial performance have been materially impacted by the COVID-19 pandemic. In the first quarter of 2020, all the Company-operated stores were closed on March 17, 2020, but the Company was able to re-open the majority of its stores as of the end of the second quarter of 2020. The direct business remained open for the duration of 2020. During 2020, the Company took prudent actions to manage expenses and to maintain its cash position and financial flexibility. The Company adopted new operating models focused on safety in connection with the pandemic. The Company continues to remain focused on providing a safe store environment for its customers and associates, while also delivering an engaging shopping experience. The Company also remains focused on the safe operations of its corporate facilities, and distribution and fulfillment centers while maximizing its direct business. There remains the potential for COVID-related closures or operating restrictions, which could materially impact the Company's operations and financial performance in future periods. Fiscal Year The Company's fiscal year ends on the Saturday nearest to January 31. As used herein, “2021," "2020," and “2019” refer to the 52-week periods ended January 29, 2022, January 30, 2021 and February 1, 2020, 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 all unconsolidated entities is included in Other Loss in the Consolidated Statements of Income (Loss). The Company’s equity method investments are required to be reviewed for impairment when it is determined there may be an other-than-temporary loss in value. Cash and Cash Equivalents Cash and Cash Equivalents include cash on hand, demand deposits with financial institutions and highly liquid investments with original maturities of less than 90 days. The Company’s outstanding checks are included in Accounts Payable on the Consolidated Balance Sheets. Restricted Cash During 2020, the Company placed cash on deposit with certain financial institutions as collateral for their lending commitments to certain former Victoria's Secret subsidiaries. These deposits totaled $30 million as of January 30, 2021 and were recorded in Other Assets on the Consolidated Balance Sheet. During the second quarter of 2021, these lending commitments were terminated which released the restrictions on this cash. Accordingly, the balance was reclassified to Cash and Cash Equivalents during the second quarter of 2021. The following table summarizes the location of the Company's Cash and Cash Equivalents and restricted cash in the Consolidated Balance Sheets as of January 29, 2022 and January 30, 2021: January 29, January 30, (in millions) Cash and Cash Equivalents $ 1,979 $ 3,568 Current Assets of Discontinued Operations — 335 Other Assets — 30 Total Cash and Cash Equivalents and Restricted Cash $ 1,979 $ 3,933 Concentration of Credit Risk The Company maintains cash and cash equivalents and derivative contracts with various major financial institutions. The Company monitors the relative credit standing of financial institutions with whom the Company transacts and limits the amount of credit exposure with any one entity. 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 determines the required allowance for expected credit losses using information such as customer credit history and financial condition. Amounts are recorded to the allowance when it is determined that expected credit losses may occur. Inventories Inventories are principally valued at the lower of cost or net realizable value, on an average cost basis. The Company records valuation adjustments to its inventories if the cost of inventory on hand exceeds the amount it expects to realize from the ultimate sale or disposal of the inventory. These estimates are based on management’s judgment regarding future demand and market conditions and analysis of historical experience. The Company also records inventory loss adjustments for estimated physical inventory losses that have occurred since the date of the last physical inventory. These estimates are based on management’s analysis of historical results and operating trends. Advertising Costs Advertising and marketing costs are expensed at the time the promotion first appears in media, in the store or when the advertising is mailed. Advertising and marketing costs totaled $166 million for 2021, $112 million for 2020 and $122 million for 2019. Property and Equipment The Company’s property and equipment are recorded at cost and depreciation is computed on a straight-line basis using the following depreciable life ranges: Category of Property and Equipment Depreciable Life Range Software, including software developed for internal use 3 - 5 years Store related assets 3 - 10 years Leasehold improvements Shorter of lease term or 10 years Non-store related building and site improvements 10 - 15 years Other property and equipment 20 years Buildings 30 years When a decision has been made to dispose of property and equipment prior to the end of the previously estimated useful life, depreciation estimates are revised to reflect the use of the asset over the shortened estimated useful life. The Company’s cost of assets sold or retired and the related accumulated depreciation are removed from the accounts with any resulting gain or loss included in net income (loss). Maintenance and repairs are charged to expense as incurred. Major renewals and betterments that extend useful lives are capitalized. Long-lived store assets, which include leasehold improvements, store related assets and operating lease assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Store assets are grouped at the lowest level for which they are largely independent of other assets or asset groups. If the estimated undiscounted future cash flows related to the asset group are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the estimated fair value, determined by the estimated discounted future cash flows of the asset group. For operating lease assets, the Company determines the fair value of the assets by comparing the contractual rent payments to estimated market rental rates. An individual asset within an asset group is not impaired below its estimated fair value. The fair value of long-lived store assets are determined using Level 3 inputs within the fair value hierarchy. Leases and Leasehold Improvements The Company leases retail space, office space, warehouse facilities, storage space, equipment and certain other items under operating leases. A substantial portion of the Company’s leases are operating leases for its stores, which generally have an initial term of 10 years. Annual store rent consists of a fixed minimum amount and/or variable rent based on a percentage of sales exceeding a stipulated amount. Store lease terms generally also require additional payments covering certain operating costs such as common area maintenance, utilities, insurance and taxes. Certain leases contain predetermined fixed escalations of minimum rentals or require periodic adjustments of minimum rentals depending on an index or rate. Additionally, certain leases contain incentives, such as construction allowances from landlords and/or rent abatements subsequent to taking possession of the leased property. At lease commencement, the Company recognizes an asset for the right to use the leased asset and a liability based on the present value of the unpaid fixed lease payments. Operating lease costs are recognized on a straight-line basis as lease expense over the lease term. Variable lease payments associated with the Company's leases are recognized upon occurrence of the event or circumstance on which the payments are assessed. Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet, and lease expense is recognized on a straight-line basis over the lease term. The Company uses its incremental borrowing rate, adjusted for collateral, to determine the present value of its unpaid lease payments. The Company’s store leases often include options to extend the initial term or to terminate the lease prior to the end of the initial term. The exercise of these options is typically at the sole discretion of the Company. These options are included in determining the initial lease term at lease commencement if the Company is reasonably certain to exercise the option. Additionally, the Company may operate stores for a period of time on a month-to-month basis after the expiration of the lease term. The Company also has leasehold improvements which are amortized over the shorter of their estimated useful lives or the period from the date the assets are placed in service to the end of the initial lease term. Leasehold improvements made after the inception of the initial lease term are depreciated over the shorter of their estimated useful lives or the remaining lease term, including renewal periods, if reasonably assured. Intangible Assets - Goodwill and Trade Name The Company has recorded goodwill and trade name intangible assets resulting from business combinations that are recorded at cost. Goodwill is reviewed for impairment at the reporting unit level each year in the fourth quarter and may be reviewed more frequently if certain events occur or circumstances change. The Company has the option to either first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit's fair value is less than its carrying value (including goodwill), or to proceed directly to the quantitative assessment which requires a comparison of a reporting unit's fair value to its carrying value (including goodwill). If the Company determines that the fair value of a reporting unit is less than its carrying value, it recognizes an impairment charge equal to the difference, not to exceed the total amount of goodwill allocated to a reporting unit. The Company's reporting units are determined in accordance with the provisions of ASC 350, Intangibles - Goodwill and Other . The Bath & Body Works trade name is an intangible asset with and indefinite life that is reviewed for impairment each year in the fourth quarter, and may be reviewed more frequently if certain events occur or circumstances change. The Company has the option to either first perform a qualitative assessment to determine whether it is more likely than not that the trade name is impaired, or to proceed directly to the quantitative assessment which requires a comparison of the fair value of the trade name to its carrying value. To determine if the fair value of the trade name is less than its carrying amount, the Company will estimate the fair value, usually determined by the relief from royalty method under the income approach, and compare that value with its carrying amount. If the carrying value of the trade name exceeds its fair value, the Company recognizes an impairment charge equal to the difference. Foreign Currency Translation The functional currency of the Company’s foreign operations is generally the applicable local currency. Assets and liabilities are translated into U.S. dollars using the current exchange rates in effect as of the balance sheet date, while revenues and expenses are translated at the average exchange rates for the period. The Company’s resulting translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in shareholders’ equity (deficit). Accumulated foreign currency translation adjustments are reclassified to net income (loss) when realized upon sale or upon complete, or substantially complete, liquidation of the investment in the foreign entity. Derivative Financial Instruments The earnings of the Company's Canadian operations are subject to exchange rate risk as substantially all the 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. 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 Costs of Goods Sold, Buying and Occupancy in the Consolidated Statements of Income (Loss). All designated cash flow hedges are recorded on the Consolidated Balance Sheets at fair value. The fair value of designated cash flow hedges is not significant for any period presented. The Company does not use derivative financial instruments for trading purposes. Fair Value The authoritative guidance included in ASC 820, Fair Value Measurement, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. This authoritative guidance further establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1—Quoted market prices in active markets for identical assets or liabilities. • Level 2—Observable inputs other than quoted market prices included in Level 1, such as quoted prices of similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company estimates the fair value of financial instruments, property and equipment and goodwill and trade names in accordance with the provisions of ASC 820 . Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, taxes currently payable or refundable are accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are also recognized for realizable operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted income tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in income tax rates is recognized in the Company’s Consolidated Statements of Income (Loss) in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if it is more likely than not that such assets will not be realized. In determining the Company’s provision for income taxes, the Company considers permanent differences between book and tax income and statutory income tax rates. The Company’s effective income tax rate is affected by items including changes in tax law, the tax jurisdiction of new stores or business ventures and the level of earnings. The Company follows a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and for which actual outcomes may differ from forecasted outcomes. The Company's policy is to include interest and penalties related to uncertain tax positions in income tax expense. The Company’s income tax returns, like those of most companies, are periodically audited by domestic and foreign tax authorities. These audits include questions regarding the Company’s tax filing positions, including the timing and amount of deductions and the allocation of income among various tax jurisdictions. At any one time, multiple tax years are subject to audit by the various tax authorities. A number of years may elapse before a particular matter for which the Company has established an accrual is audited and fully resolved or clarified. The Company adjusts its tax contingencies accrual and income tax provision in the period in which matters are effectively settled with tax authorities at amounts different from its established accrual, when the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. The Company includes its tax contingencies accrual, including accrued penalties and interest, in Other Long-term Liabilities on the Consolidated Balance Sheets unless the liability is expected to be paid within one year. Changes to the tax contingencies accrual, including accrued penalties and interest, are included in Provision for Income Taxes on the Consolidated Statements of Income (Loss). Self-Insurance The Company is self-insured for medical, workers’ compensation, property, general liability and automobile liability up to certain stop-loss limits. Such costs are accrued based on known claims and an estimate of incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information and actuarial estimates. Noncontrolling Interest Noncontrolling interest represents the portion of equity interests of consolidated affiliates not owned by the Company. Share-based Compensation The Company recognizes all share-based payments to associates and directors as compensation cost over the service period based on their estimated fair value on the date of grant. The Company estimates award forfeitures at the time awards are granted and adjusts, if necessary, in subsequent periods based on historical experience and expected future forfeitures. Compensation cost is recognized over the service period for the fair value of awards that actually vest. Compensation expense for awards without a performance condition is recognized, net of estimated forfeitures, using a single award approach (each award is valued as one grant, irrespective of the number of vesting tranches). Compensation expense for awards with a performance condition is recognized, net of estimated forfeitures, using a multiple award approach (each vesting tranche is valued as one grant). Revenue Recognition The Company recognizes revenue based on the amount it expects to receive when control of the goods or services is transferred to the customer. The Company recognizes sales upon customer receipt of merchandise, which for direct channel revenues reflect an estimate of shipments that have not yet been received by the customer based on shipping terms and historical delivery times. The Company’s shipping and handling revenues are included in Net Sales with the related costs included in Costs of Goods Sold, Buying and Occupancy in the Consolidated Statements of Income (Loss). The Company also provides a reserve for projected merchandise returns based on historical experience. Net Sales exclude sales and other similar taxes collected from customers. The Company offers a loyalty program that allows customers to earn points based on purchasing activity. As customers accumulate points and reach point thresholds, they can use the points to purchase merchandise in stores or online. The Company allocates revenue to points earned on qualifying purchases and defers recognition until the points are redeemed. The amount of revenue deferred is based on the relative stand-alone selling price method, which includes an estimate for points not expected to be redeemed based on historical experience. The Company sells gift cards with no expiration dates to customers. The Company does not charge administrative fees on unused gift cards. The Company recognizes revenue from gift cards when they are redeemed by the customer. In addition, the Company recognizes revenue on unredeemed gift cards where the likelihood of the gift card being redeemed is remote and there is no legal obligation to remit the unredeemed gift cards to relevant jurisdictions (gift card breakage). Gift card breakage revenue is recognized in proportion, and over the same period, as actual gift card redemptions. The Company determines the gift card breakage rate based on historical redemption patterns. Gift card breakage is included in Net Sales in the Consolidated Statements of Income (Loss). The Company also recognizes revenues associated with franchise, license, wholesale and sourcing arrangements. Revenue recognized under franchise and license arrangements generally consists of royalties earned and recognized upon sale of merchandise by franchise and license partners to retail customers. Revenue is generally recognized under wholesale and sourcing arrangements at the time the title passes to the partner. Costs of Goods Sold, Buying and Occupancy The Company’s costs of goods sold include merchandise costs, net of discounts and allowances, freight and inventory shrinkage. The Company’s buying and occupancy expenses primarily include payroll, benefit costs and operating expenses for its buying departments and distribution network; and rent, common area maintenance, real estate taxes, utilities, maintenance, fulfillment expenses and depreciation for the Company’s stores, warehouse facilities and equipment. General, Administrative and Store Operating Expenses The Company’s general, administrative and store operating expenses primarily include payroll and benefit costs for its store-selling and administrative departments (including corporate functions), marketing, advertising and other operating expenses not specifically categorized elsewhere in the Consolidated Statements of Income (Loss). Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. Actual results may differ from those estimates, and the Company revises its estimates and assumptions as new information becomes available. Recently Issued Accounting Pronouncements The Company did not adopt any new accounting standards during 2021 that had a material impact on the Company's consolidated results of operations, financial position or cash flows. In addition, as of March 18, 2022, there are no new accounting standards not yet adopted that are expected to have a material impact on the Company's consolidated results of operations, financial position or cash flows. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Jan. 29, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued OperationsOn July 9, 2021, the Company announced that its Board of Directors (the "Board") approved the previously announced Separation of the Victoria’s Secret business into an independent, publicly traded company, Victoria's Secret & Co. On August 2, 2021 (the “Distribution Date”), after the New York Stock Exchange ("NYSE") market closing, the Separation was completed. The Separation was achieved through the Company's tax-free distribution (the "Distribution") of 100% of the shares of Victoria's Secret & Co. common stock to holders of L Brands, Inc. common stock as of the close of business on the record date of July 22, 2021. The Company's stockholders of record received one share of Victoria’s Secret & Co. common stock for every three shares of the Company's common stock. On August 3, 2021, Victoria’s Secret & Co. became an independent, publicly-traded company trading on the NYSE under the stock symbol "VSCO." The Company retained no ownership interest in Victoria’s Secret & Co. following the Separation. In July 2021, Victoria’s Secret & Co., prior to the Separation and while a subsidiary of the Company, issued $600 million of 4.625% notes due in July 2029 (the "VSCO Notes"). As of July 31, 2021, the initial proceeds were held in escrow for release to Victoria's Secret & Co. upon satisfaction of certain conditions, including completion of the Separation. Additionally, on August 2, 2021, in connection with the Separation, Victoria's Secret & Co. entered into a term loan facility with an aggregate principal amount of $400 million and a senior secured asset-based revolving credit facility with an aggregate principal committed amount of $750 million. In connection with the Separation, Victoria's Secret & Co. received net cash proceeds of $384 million from its $400 million borrowing under its credit facilities. The proceeds from the credit facilities and the $592 million net proceeds from the VSCO Notes were used to fund cash payments of $976 million to the Company in connection with the Separation. The Company does not guarantee the VSCO Notes, the Victoria's Secret & Co. term loan facility or the Victoria's Secret & Co. senior secured asset-based revolving credit facility following the Separation. Cash and Cash Equivalents of $282 million held by Victoria's Secret subsidiaries were transferred to Victoria's Secret & Co. on the Distribution Date. Additionally, the Company made payments of $94 million during 2021 to Victoria's Secret & Co. following the Separation for costs incurred prior to the Distribution Date pursuant to the terms of the Separation agreements. During 2021, the Company recognized a net reduction to Retained Earnings (Accumulated Deficit) of $175 million as a result of the Separation, primarily related to the transfer of certain assets and liabilities associated with its Victoria's Secret business to Victoria's Secret & Co., net of the $976 million of cash payments received from Victoria's Secret & Co. Additionally, the Company reclassified out of Accumulated Other Comprehensive Income $8 million of accumulated foreign currency translation adjustments related to the Victoria's Secret business. In connection with the Separation, the Company entered into several agreements with Victoria's Secret & Co. that govern the relationship of the parties following the spin-off, including the Separation and Distribution Agreement, the Transition Services Agreements, the Tax Matters Agreement, the Employee Matters Agreement and the Domestic Transportation Services Agreement. Under the terms of the Transition Services Agreements, the Company provides to Victoria's Secret & Co. various services or functions, including human resources, payroll and certain logistics functions. Additionally, Victoria's Secret & Co. provides to the Company various services or functions, including information technology, certain logistics functions, customer marketing and customer call center services. Generally, these services will be performed for a period of up to two years following the Distribution, except for information technology services, which will be provided for a period of up to three years following the Distribution and may be extended for a maximum of two additional one Under the terms of the Domestic Transportation Services Agreement, the Company provides transportation services for Victoria's Secret & Co. merchandise in the United States and Canada for an initial term of three years following the Distribution, which term will thereafter continuously renew unless and until Victoria’s Secret & Co. or the Company elects to terminate the arrangement upon 18 or 36 months’ prior written notice, respectively. Consideration for the transportation services is determined using customary billing and fixed billing methodologies, which are described in the agreement, and are subject to an administrative charge. Consideration for logistics services provided to Victoria's Secret & Co. are recorded within Costs of Goods Sold, Buying and Occupancy in the 2021 Consolidated Statement of Income and as an offset to expenses incurred to provide the services. During 2021, the Company recognized consideration of $46 million pursuant to the Domestic Transportation Services Agreement. In conjunction with the Separation, the Company has contingent obligations relating to certain lease payments under the current terms of noncancelable leases. For additional information, see Note 16, "Commitments and Contingencies." Financial Information of Discontinued Operations Income (Loss) from Discontinued Operations, Net of Tax in the Consolidated Statements of Income (Loss) reflects the after-tax results of the Victoria's Secret business and Separation-related fees, and does not include any allocation of general corporate overhead expense or interest expense of the Company. The following table summarizes the significant line items included in Income (Loss) from Discontinued Operations, Net of Tax in the Consolidated Statements of Income (Loss) for 2021, 2020 and 2019: 2021 2020 2019 (in millions) Net Sales $ 3,194 $ 5,413 $ 7,509 Costs of Goods Sold, Buying and Occupancy (1,841) (3,842) (5,446) General, Administrative and Store Operating Expenses (a) (975) (1,595) (2,845) Interest Expense (2) (6) (8) Other Income (Loss) (3) — 1 Income (Loss) from Discontinued Operations Before Income Taxes 373 (30) (789) Provision (Benefit) for Income Taxes 115 (9) 37 Income (Loss) from Discontinued Operations, Net of Tax $ 258 $ (21) $ (826) _______________ (a) 2021 includes Separation-related expenses of $104 million. Prior to the Separation, these costs were reported in the Other category under the Company's previous segment reporting. The information presented as discontinued operations on the Consolidated Balance Sheets includes certain assets and liabilities that were transferred to Victoria’s Secret & Co. pursuant to the Separation agreements, and excludes certain liabilities that were retained by the Company in connection with the Separation. There were no assets or liabilities classified as discontinued operations as of January 29, 2022. The following table summarizes the carrying value of the significant classes of assets and liabilities classified as discontinued operations as of January 30, 2021: January 30, (in millions) Cash and Cash Equivalents $ 335 Accounts Receivable, Net 121 Inventories 701 Other 82 Current Assets of Discontinued Operations 1,239 Property and Equipment, Net 1,078 Operating Lease Assets 1,590 Trade Names 246 Deferred Income Taxes 11 Other Assets 56 Other Assets of Discontinued Operations $ 2,981 Accounts Payable $ 338 Accrued Expenses and Other 730 Current Operating Lease Liabilities 421 Income Taxes 9 Current Liabilities of Discontinued Operations 1,498 Deferred Income Taxes 93 Long-term Operating Lease Liabilities 1,553 Other Long-term Liabilities 21 Other Long-term Liabilities of Discontinued Operations $ 1,667 The cash flows related to discontinued operations have not been segregated, and are included in the Consolidated Statements of Cash Flows for all periods presented. The following table summarizes depreciation and other significant operating non-cash items, capital expenditures and financing activities of discontinued operations for 2021, 2020 and 2019: 2021 2020 2019 (in millions) Depreciation of Long-Lived Assets $ 158 $ 326 $ 411 Share-based Compensation Expense 15 25 38 Deferred Income Taxes 3 16 (40) Impairment of Victoria's Secret Goodwill — — 720 Victoria's Secret Asset Impairment Charges — 254 263 Gain from Victoria's Secret Hong Kong Store Closure and Lease Termination — (39) — Gain Related to Formation of Victoria's Secret U.K. Joint Venture — (54) — Capital Expenditures (66) (127) (225) Net Borrowings from (Repayments of) Victoria's Secret Foreign Facilities — (155) 5 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jan. 29, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Accounts Receivable, Net from revenue-generating activities were $64 million as of January 29, 2022 and $51 million as of January 30, 2021. Accounts receivable primarily relate to amounts due from the Company's franchise, license and wholesale partners. Under these arrangements, payment terms are typically 45 to 75 days. The Company records deferred revenue when cash payments are received in advance of transfer of control of goods or services. Deferred revenue primarily relates to gift cards, loyalty points and direct channel shipments, which are all impacted by seasonal and holiday-related sales patterns. Deferred Revenue, which is recorded within Accrued Expenses and Other on the Consolidated Balance Sheets, was $148 million as of January 29, 2022 and $115 million as of January 30, 2021. The Company recognized $76 million as revenue in 2021 from amounts recorded as deferred revenue at the beginning of the period. The following table provides a disaggregation of Net Sales for 2021, 2020 and 2019: 2021 2020 2019 (in millions) Stores - U.S. and Canada $ 5,709 $ 4,207 $ 4,212 Direct - U.S. and Canada 1,890 2,003 958 International (a) 283 224 185 Other (b) — — 50 Total Net Sales $ 7,882 $ 6,434 $ 5,405 _______________ (a) Results include royalties associated with franchised store and wholesale sales. (b) Results for 2019 include wholesale revenues to La Senza, subsequent to the Company's divestiture of the business in 2018. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Jan. 29, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Earnings (loss) per basic share is computed based on the weighted-average number of common shares. Earnings (loss) per diluted share include the weighted-average effect of dilutive restricted stock and options on the weighted-average shares outstanding. The following table provides the weighted-average shares utilized for the calculation of basic and diluted earnings (loss) per share for 2021, 2020 and 2019: 2021 2020 2019 (in millions) Common Shares 282 286 284 Treasury Shares (13) (8) (8) Basic Shares 269 278 276 Effect of Dilutive Restricted Stock and Options 4 3 2 Diluted Shares 273 281 278 Anti-dilutive Options and Awards (a) 1 5 6 ________________ |
Restructuring Activities
Restructuring Activities | 12 Months Ended |
Jan. 29, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring ActivitiesDuring the second quarter of 2020, the Company completed a comprehensive review of its home office organizations in order to achieve meaningful reductions in overhead expenses and decentralize significant shared functions and services to support the separation of the Bath & Body Works and Victoria's Secret businesses. Pre-tax severance and related costs associated with these reductions, totaling $30 million, are included in General, Administrative and Store Operating Expenses in the 2020 Consolidated Statement of Income. The remaining liability for unpaid severance and related costs was not significant as of January 29, 2022. |
Inventories
Inventories | 12 Months Ended |
Jan. 29, 2022 | |
Inventory, Net [Abstract] | |
Inventories | Inventories The following table provides details of inventories as of January 29, 2022 and January 30, 2021: January 29, January 30, (in millions) Finished Goods Merchandise $ 521 $ 410 Raw Materials and Merchandise Components 188 162 Total Inventories $ 709 $ 572 |
Long-Lived Assets
Long-Lived Assets | 12 Months Ended |
Jan. 29, 2022 | |
Property, Plant and Equipment [Abstract] | |
Long-Lived Assets | Long-Lived Assets The following table provides details of Property and Equipment, Net as of January 29, 2022 and January 30, 2021: January 29, January 30, (in millions) Land and Improvements $ 89 $ 89 Buildings and Improvements 301 310 Furniture, Fixtures, Software and Equipment 1,408 1,309 Leasehold Improvements 722 689 Construction in Progress 63 15 Total 2,583 2,412 Accumulated Depreciation and Amortization (1,574) (1,395) Property and Equipment, Net $ 1,009 $ 1,017 Depreciation expense from continuing operations was $205 million in 2021, $195 million in 2020 and $177 million in 2019. The Company’s internationally-based long-lived assets, including operating lease assets, were $116 million as of January 29, 2022 and $113 million as of January 30, 2021. |
Leases
Leases | 12 Months Ended |
Jan. 29, 2022 | |
Leases [Abstract] | |
Leases | Leases The following table provides the components of lease cost for operating leases for 2021, 2020 and 2019: 2021 2020 2019 (in millions) Operating Lease Costs $ 216 $ 223 $ 207 Variable Lease Costs 108 59 52 Short-term Lease Costs 34 29 22 Total Lease Cost $ 358 $ 311 281 During 2020, rent was not paid, or was only partially paid, for many stores due to the COVID-19 pandemic. The Financial Accounting Standards Board issued guidance in April 2020 which allowed certain COVID-19-related concessions to be recognized as a reduction of lease costs in the period an amendment is executed. As a result, the Company recognized a $21 million reduction to occupancy expenses in the 2020 Consolidated Statement of Income as a result of executed amendments with landlords. The following table provides future maturities of operating lease liabilities as of January 29, 2022: Fiscal Year (in millions) 2022 $ 228 2023 213 2024 203 2025 191 2026 170 Thereafter 382 Total Lease Payments $ 1,387 Less: Interest (228) Present Value of Operating Lease Liabilities $ 1,159 For leases entered into or reassessed after the adoption of ASC 842, Leases , the Company has elected the practical expedient allowed by the standard to account for all fixed consideration in a lease as a single lease component. Therefore, the lease payments used to measure the lease liability for these leases include fixed minimum rentals along with fixed operating costs such as common area maintenance and utilities. As of January 29, 2022, the Company had additional operating lease commitments that have not yet commenced of $37 million. The following table provides the weighted average remaining lease term and discount rate for operating leases with lease liabilities as of January 29, 2022 and January 30, 2021: January 29, January 30, Weighted Average Remaining Lease Term (years) 6.9 7.0 Weighted Average Discount Rate 5.4 % 5.8 % The following table provides supplemental cash flow information related to the Company's operating leases for 2021, 2020 and 2019: 2021 2020 2019 (in millions) Cash paid for Operating Lease Liabilities (a) $ 245 $ 172 $ 197 Lease Assets obtained as a result of new Lease Liabilities 209 204 199 ________________ (a) These payments are included within the Operating Activities section of the Consolidated Statements of Cash Flows. Finance Leases The Company leases certain fulfillment equipment under finance leases that expire at various dates through 2029. The Company records finance lease assets, net of accumulated amortization, in Property and Equipment, Net on the Consolidated Balance Sheets. Additionally, the Company records finance lease liabilities in Accrued Expenses and Other and Other Long-term Liabilities on the Consolidated Balance Sheets. Finance lease costs are comprised of the straight-line amortization of the lease asset and the accretion of interest expense under the effective interest method. The Company's finance lease assets and liabilities were not significant for any period presented. |
Leases | Leases The following table provides the components of lease cost for operating leases for 2021, 2020 and 2019: 2021 2020 2019 (in millions) Operating Lease Costs $ 216 $ 223 $ 207 Variable Lease Costs 108 59 52 Short-term Lease Costs 34 29 22 Total Lease Cost $ 358 $ 311 281 During 2020, rent was not paid, or was only partially paid, for many stores due to the COVID-19 pandemic. The Financial Accounting Standards Board issued guidance in April 2020 which allowed certain COVID-19-related concessions to be recognized as a reduction of lease costs in the period an amendment is executed. As a result, the Company recognized a $21 million reduction to occupancy expenses in the 2020 Consolidated Statement of Income as a result of executed amendments with landlords. The following table provides future maturities of operating lease liabilities as of January 29, 2022: Fiscal Year (in millions) 2022 $ 228 2023 213 2024 203 2025 191 2026 170 Thereafter 382 Total Lease Payments $ 1,387 Less: Interest (228) Present Value of Operating Lease Liabilities $ 1,159 For leases entered into or reassessed after the adoption of ASC 842, Leases , the Company has elected the practical expedient allowed by the standard to account for all fixed consideration in a lease as a single lease component. Therefore, the lease payments used to measure the lease liability for these leases include fixed minimum rentals along with fixed operating costs such as common area maintenance and utilities. As of January 29, 2022, the Company had additional operating lease commitments that have not yet commenced of $37 million. The following table provides the weighted average remaining lease term and discount rate for operating leases with lease liabilities as of January 29, 2022 and January 30, 2021: January 29, January 30, Weighted Average Remaining Lease Term (years) 6.9 7.0 Weighted Average Discount Rate 5.4 % 5.8 % The following table provides supplemental cash flow information related to the Company's operating leases for 2021, 2020 and 2019: 2021 2020 2019 (in millions) Cash paid for Operating Lease Liabilities (a) $ 245 $ 172 $ 197 Lease Assets obtained as a result of new Lease Liabilities 209 204 199 ________________ (a) These payments are included within the Operating Activities section of the Consolidated Statements of Cash Flows. Finance Leases The Company leases certain fulfillment equipment under finance leases that expire at various dates through 2029. The Company records finance lease assets, net of accumulated amortization, in Property and Equipment, Net on the Consolidated Balance Sheets. Additionally, the Company records finance lease liabilities in Accrued Expenses and Other and Other Long-term Liabilities on the Consolidated Balance Sheets. Finance lease costs are comprised of the straight-line amortization of the lease asset and the accretion of interest expense under the effective interest method. The Company's finance lease assets and liabilities were not significant for any period presented. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jan. 29, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Goodwill The Company's goodwill was $628 million as of January 29, 2022 and January 30, 2021. The Company performed its qualitative goodwill impairment assessments as of January 29, 2022 and January 30, 2021 and determined that the fair value was greater than the carrying value (including goodwill) as of both dates. Trade Name The Company's trade name was $165 million as of January 29, 2022 and January 30, 2021. The Company performed its impairment assessments of the trade name as of January 29, 2022 and January 30, 2021, utilizing the relief from royalty method under the income approach, and determined that its fair value was greater than its carrying value as of both dates. |
Equity Investments
Equity Investments | 12 Months Ended |
Jan. 29, 2022 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |
Equity Investments | Equity Investments Easton 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 $126 million as of January 29, 2022 and $119 million as of January 30, 2021, are recorded in Other Assets on the Consolidated Balance Sheets. Included in the Company’s Easton investments are equity interests 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. |
Accrued Expenses and Other
Accrued Expenses and Other | 12 Months Ended |
Jan. 29, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses and Other | Accrued Expenses and Other The following table provides additional information about the composition of Accrued Expenses and Other as of January 29, 2022 and January 30, 2021: January 29, January 30, (in millions) Deferred Revenue, Principally from Gift Card Sales $ 148 $ 115 Compensation, Payroll Taxes and Benefits 142 181 Supplemental Retirement Plan — 100 Interest 75 94 Taxes, Other than Income 39 53 Rent 47 25 Accrued Claims on Self-insured Activities 38 39 Other 162 120 Total Accrued Expenses and Other $ 651 $ 727 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 29, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesCurrent income tax expense represents the amounts expected to be reported on the Company’s income tax returns, and deferred tax expense or benefit represents the change in net deferred tax assets and liabilities. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Valuation allowances are recorded as appropriate to reduce deferred tax assets to the amount considered likely to be realized. The following table provides the components of the Company’s provision for income taxes for 2021, 2020 and 2019: 2021 2020 2019 (in millions) Current: U.S. Federal $ 249 $ 178 $ 116 U.S. State 53 52 16 Non-U.S. 4 10 5 Total 306 240 137 Deferred: U.S. Federal 24 6 11 U.S. State 10 5 4 Non-U.S. 8 6 (4) Total 42 17 11 Provision for Income Taxes $ 348 $ 257 $ 148 The non-U.S. component of pre-tax income, arising principally from overseas operations, was income of $110 million, $67 million and $29 million for 2021, 2020 and 2019, respectively. The following table provides the reconciliation between the statutory federal income tax rate and the effective tax rate for 2021, 2020 and 2019: 2021 2020 2019 Federal Income Tax Rate 21.0 % 21.0 % 21.0 % State Income Taxes, Net of Federal Income Tax Effect 4.2 % 4.9 % 5.0 % Impact of Non-U.S. Operations 0.1 % 0.5 % (0.2 %) Share-based Compensation (0.7 %) 0.7 % 1.3 % Uncertain Tax Positions (0.5 %) (4.9 %) (3.7 %) Other Items, Net 0.4 % 0.7 % 0.9 % Effective Tax Rate 24.5 % 22.9 % 24.3 % Deferred Taxes The following table provides the effect of temporary differences that cause deferred income taxes as of January 29, 2022 and January 30, 2021. Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carryforwards at the end of the respective year. January 29, 2022 January 30, 2021 Assets Liabilities Total Assets Liabilities Total (in millions) Loss Carryforwards $ 405 $ — $ 405 $ 403 $ — $ 403 Non-qualified Retirement Plan — — — 22 (2) 20 Leases 264 (251) 13 259 (247) 12 Share-based Compensation 8 — 8 17 — 17 Property and Equipment — (105) (105) 4 (122) (118) Trade Names — (38) (38) — (38) (38) Other Assets — (62) (62) — (60) (60) Other, Net 46 (16) 30 45 (14) 31 Valuation Allowance (363) — (363) (350) — (350) Total Deferred Income Taxes $ 360 $ (472) $ (112) $ 400 $ (483) $ (83) As of January 29, 2022, the Company had loss carryforwards of $405 million, of which $248 million has an indefinite carryforward. The remainder of the U.S. and non-U.S. carryforwards, if unused, will expire at various dates from 2022 through 2040 and 2029 through 2041, re spectively. For certain jurisdictions where the Company has determined that it is more likely than not that the loss carryforwards will not be realized, a valuation allowance has been provided on those loss carryforwards as well as other net deferred tax assets. Income tax payments were $487 million for 2021, $200 million for 2020 and $228 million for 2019. On August 2, 2021, the Company and Victoria's Secret & Co. entered into a Tax Matters Agreement ("TMA"). Under the TMA, the Company will generally be responsible for all U.S. federal, state, local and non-U.S. income taxes of Victoria's Secret & Co. for any taxable period or portion of such period ending on or before the Distribution Date. Uncertain Tax Positions The following table summarizes the activity related to the Company’s unrecognized tax benefits for U.S. federal, state & non-U.S. tax jurisdictions for 2021, 2020 and 2019, without interest and penalties: 2021 2020 2019 (in millions) Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year $ 152 $ 88 $ 114 Increases to Unrecognized Tax Benefits for Prior Years 5 7 15 Decreases to Unrecognized Tax Benefits for Prior Years (12) (50) (22) Increases to Unrecognized Tax Benefits as a Result of Current Year Activity 21 113 3 Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities (3) — (16) Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations (16) (6) (6) Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year $ 147 $ 152 $ 88 Of the total gross unrecognized tax benefits, approximately $132 million, $142 million and $81 million, at January 29, 2022, January 30, 2021, and February 1, 2020, respectively, represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. These amounts are net of the offsetting tax effects from other tax jurisdictions. Of the total unrecognized tax benefits, it is reasonably possible that $104 million could change in the next 12 months due to audit settlements, expiration of statute of limitations or other resolution of uncertainties. Due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of audits may result in amounts which could be different from this estimate. In such case, the Company will record additional tax expense or tax benefit in the period in which such matters are effectively settled. The Company recognizes interest and penalties related to unrecognized tax benefits as components of income tax expense. The Company recognized an income tax benefit from interest and penalties of approximately $2 million, $3 million and $1 million in 2021, 2020 and 2019, respectively. The Company has accrued $8 million and $10 million for the payment of interest and penalties as of January 29, 2022 and January 30, 2021, respectively. Accrued interest and penalties are included within Other Long-term Liabilities on the Consolidated Balance Sheets. The Company files U.S. federal income tax returns as well as income tax returns in various states and in non-U.S. jurisdictions. The Company is a participant in the Compliance Assurance Process ("CAP"), which is a program made available by the Internal Revenue Service ("IRS") to certain qualifying large taxpayers, under which participants work collaboratively with the IRS to identify and resolve potential tax issues through open, cooperative and transparent interaction prior to the annual filing of their federal income tax returns. The IRS is currently examining the Company's 2020 and 2021 consolidated U.S. federal income tax returns. The Company is also subject to various state and local income tax examinations for the years 2015 to 2020. Finally, the Company is subject to multiple non-U.S. tax jurisdiction examinations for the years 2009 to 2020. In some situations, the Company determines that it does not have a filing requirement in a particular tax jurisdiction. Where no return has been filed, no statute of limitations applies. Accordingly, if a tax jurisdiction reaches a conclusion that a filing requirement does exist, additional years may be reviewed by the tax authority. The Company believes it has appropriately accounted for uncertainties related to this issue. |
Long-term Debt and Borrowing Fa
Long-term Debt and Borrowing Facilities | 12 Months Ended |
Jan. 29, 2022 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Long-term Debt and Borrowing Facilities | Long-term Debt and Borrowing Facilities The following table provides the Company’s outstanding debt balance, net of unamortized debt issuance costs and discounts, as of January 29, 2022 and January 30, 2021: January 29, January 30, (in millions) Senior Secured Debt with Subsidiary Guarantee $750 million, 6.875% Fixed Interest Rate Secured Notes due July 2025 ("2025 Secured Notes") $ — $ 740 Senior Debt with Subsidiary Guarantee $1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) — 284 $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) — 319 $320 million, 9.375% Fixed Interest Rate Notes due July 2025 ("2025 Notes") 316 493 $297 million, 6.694% Fixed Interest Rate Notes due January 2027 ("2027 Notes") 281 278 $500 million, 5.25% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) 497 497 $500 million, 7.50% Fixed Interest Rate Notes due June 2029 ("2029 Notes") 489 488 $1 billion, 6.625% Fixed Interest Rate Notes due October 2030 ("2030 Notes") 990 988 $1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) 992 991 $700 million, 6.75% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) 694 694 Total Senior Debt with Subsidiary Guarantee $ 4,259 $ 5,032 Senior Debt $350 million, 6.95% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) $ 349 $ 348 $247 million, 7.60% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) 246 246 Total Senior Debt $ 595 $ 594 Total Long-term Debt $ 4,854 $ 6,366 The following table provides principal payments due on outstanding debt in the next five fiscal years and the remaining years thereafter: Fiscal Year (in millions) 2022 $ — 2023 — 2024 — 2025 320 2026 297 Thereafter 4,298 Cash paid for interest was $354 million in 2021, $415 million in 2020 and $357 million in 2019. Issuance of Notes In September 2020, the Company issued $1 billion of 6.625% senior notes due October 2030. The obligation to pay principal and interest on these notes is jointly and severally guaranteed on a full and unconditional basis by the Company and certain of the Company's 100% owned subsidiaries. The proceeds from the issuance were $988 million, which were net of issuance costs of $12 million. The issuance costs are being amortized through the maturity date and are included within Long-term Debt on the Consolidated Balance Sheets. In June 2020, the Company issued $750 million of 6.875% senior secured notes due July 2025. The obligation to pay principal and interest on these notes was jointly and severally guaranteed on a full and unconditional basis by the Company and certain of the Company's 100% owned subsidiaries. The proceeds from the issuance were $738 million, which were net of issuance costs of $12 million. In June 2020, the Company also issued $500 million of 9.375% senior notes due in July 2025. The obligation to pay principal and interest on these notes is jointly and severally guaranteed on a full and unconditional basis by the Company and certain of the Company's 100% owned subsidiaries. The proceeds from the issuance were $492 million, which were net of issuance costs of $8 million. The issuance costs are being amortized through the maturity date and are included within Long-term Debt on the Consolidated Balance Sheets. Repurchases of Notes In September 2021, the Company completed tender offers to purchase $270 million of its outstanding 2023 Notes and $180 million of its outstanding 2025 Notes for an aggregate purchase price of $532 million. Additionally, in October 2021, the Company redeemed the remaining $50 million of its outstanding 2023 Notes for $54 million. The Company recognized a pre-tax loss related to this extinguishment of debt of $89 million (after-tax loss of $68 million), which includes the write-off of unamortized issuance costs. This loss is included in Other Loss in the 2021 Consolidated Statement of Income. In April 2021, the Company redeemed the remaining $285 million of its outstanding 2022 Notes and the $750 million of its outstanding 2025 Secured Notes. The Company recognized a pre-tax loss related to this extinguishment of debt of $105 million (after-tax loss of $80 million), which includes the write-off of unamortized issuance costs. This loss is included in Other Loss in the 2021 Consolidated Statement of Income. In October 2020, the Company completed tender offers to purchase $576 million of its outstanding 2022 Notes, $180 million of its outstanding 2023 Notes and $53 million of its outstanding 2037 Notes for $844 million. The Company used the proceeds from the 2030 Notes to fund the purchase price of the tender offers. Additionally, utilizing cash on hand, the Company redeemed the remaining $450 million of its outstanding 2021 Notes for $463 million. The Company recognized a pre-tax loss related to this extinguishment of debt of $53 million (after-tax loss of $40 million), which includes the write-off of unamortized issuance costs. This loss is included in Other Loss in the 2020 Consolidated Statement of Income. In June 2019, the Company completed tender offers to purchase $212 million of its outstanding 2020 Notes, $330 million of its outstanding 2021 Notes and $96 million of its outstanding 2022 Notes for $669 million. The Company used the proceeds from the 2029 Notes, together with cash on hand, to fund the purchase price for the tender offers. Additionally, in July 2019, the Company redeemed the remaining $126 million of its outstanding 2020 Notes for $130 million. The Company recognized a pre-tax loss on this extinguishment of debt of $40 million (after-tax loss of $30 million), which includes the write-off of unamortized issuance costs. This loss is included in Other Loss in the 2019 Consolidated Statement of Loss. Asset-backed Revolving Credit Facility The Company and certain of the Company's 100% owned subsidiaries guarantee and pledge collateral to secure a revolving credit facility (the "Credit Agreement"). During the first quarter of 2020, in an abundance of caution and as a proactive measure in response to the COVID-19 pandemic, the Company elected to borrow $950 million from the Credit Agreement. In April 2020, the Company entered into an amendment and restatement of the Credit Agreement to convert the Company’s credit facility into an asset-backed revolving credit facility (the "ABL Facility"), which allows borrowings and letters of credit in U.S. dollars or Canadian dollars. The $950 million borrowing was repaid during the first quarter of 2020 upon completion of the April amendment. In August 2021, the Company entered into an amendment and restatement (the "Amendment") of the Credit Agreement. The Amendment reduced the aggregate commitments under the ABL Facility to $750 million, reduced the interest rates on outstanding borrowings by 50 basis points, removed the requirement to prepay outstanding amounts under the ABL Facility should the Company's consolidated cash balance exceed $350 million, extended the expiration date from August 2024 to August 2026 and released Victoria's Secret & Co. subsidiaries as guarantors, among other things. Availability under the ABL Facility is the lesser of (i) the borrowing base, determined primarily based on the Company's eligible U.S. and Canadian credit card receivables, accounts receivable, inventory and eligible real property, or (ii) the aggregate commitment. If at any time, the outstanding amount under the ABL Facility exceeds the lesser of (i) the borrowing base and (ii) the aggregate commitment, the Company is required to repay the outstanding amounts under the ABL Facility to the extent of such excess. As of January 29, 2022, the Company's borrowing base was $495 million and it had no borrowings outstanding under the ABL Facility. The ABL Facility supports the Company’s letter of credit program. The Company had $16 million of outstanding letters of credit as of January 29, 2022 that reduced its availability under the ABL Facility. As of January 29, 2022, the Company's availability under the ABL Facility was $479 million. As of January 29, 2022, the ABL Facility fees related to committed and unutilized amounts were 0.25% per annum, and the fees related to outstanding letters of credit were 1.25% per annum. In addition, the interest rate on outstanding U.S. dollar borrowings was London Interbank Offered Rate plus 1.25% per annum. The interest rate on outstanding Canadian dollar-denominated borrowings was Canadian Dollar Offered Rate plus 1.25% per annum. The ABL Facility requires the Company to maintain a fixed charge coverage ratio of not less than 1.00 to 1.00 during an event of default or any period commencing on any day when specified excess availability is less than the greater of (1) $70 million or (2) 10% of the maximum borrowing amount. As of January 29, 2022, the Company was not required to maintain this ratio. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 29, 2022 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Fair Value Measurements Cash and Cash Equivalents include cash on hand, deposits with financial institutions and highly liquid investments with original maturities of less than 90 days. The Company's Cash and Cash Equivalents are considered Level 1 fair value measurements as they are valued using unadjusted quoted prices in active markets for identical assets. The following table provides a summary of the principal value and estimated fair value of outstanding publicly traded debt as of January 29, 2022 and January 30, 2021: January 29, January 30, (in millions) Principal Value $ 4,915 $ 6,449 Fair Value, Estimated (a) 5,493 7,243 ________________ (a) The estimated fair value is based on reported transaction prices which are considered Level 2 inputs in accordance with ASC 820. The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange. Management believes that the carrying values of accounts receivable, accounts payable and accrued expenses approximate fair value because of their short maturity. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Jan. 29, 2022 | |
Comprehensive Income Loss | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income includes gains and losses on foreign currency translation and on foreign currency forward contracts designated as cash flow hedges. The cumulative gains and losses on these items are included in Accumulated Other Comprehensive Income on the Consolidated Balance Sheets and Consolidated Statements of Shareholders' Equity (Deficit). The following table provides the rollforward of accumulated other comprehensive income for 2021: Foreign Currency Translation Cash Flow Hedges Accumulated Other Comprehensive Income (in millions) Balance as of January 30, 2021 $ 85 $ (2) $ 83 Other Comprehensive Income Before Reclassifications 2 1 3 Amounts Reclassified from Accumulated Other Comprehensive Income — 3 3 Tax Effect — (1) (1) Current-period Other Comprehensive Income 2 3 5 Victoria's Secret Spin-Off (8) — (8) Balance as of January 29, 2022 $ 79 $ 1 $ 80 The following table provides the rollforward of accumulated other comprehensive income for 2020: Foreign Currency Translation Cash Flow Hedges Accumulated Other Comprehensive Income (in millions) Balance as of February 1, 2020 $ 52 $ — $ 52 Other Comprehensive Loss Before Reclassifications (3) (2) (5) Amounts Reclassified from Accumulated Other Comprehensive Income 36 — 36 Tax Effect — — — Current-period Other Comprehensive Income (Loss) 33 (2) 31 Balance as of January 30, 2021 $ 85 $ (2) $ 83 In 2020, the Victoria's Secret U.K. business was transitioned from a wholly-owned model to a joint venture business model. This transition represented a substantially complete liquidation of the investment in the U.K. Accordingly, $36 million of |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 29, 2022 | |
Commitments And Contingencies [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to various claims and contingencies related to lawsuits, taxes, insurance, regulatory and other matters arising out of the normal course of business. Actions filed against the Company from time to time include commercial, tort, intellectual property, customer, employment, data privacy, securities and other claims, including purported class action lawsuits. Management believes that the ultimate liability arising from such claims and contingencies, if any, is not likely to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. On May 19, 2020 and January 12, 2021, certain of the Company's stockholders filed derivative lawsuits in the Court of Common Pleas for Franklin County, Ohio (subsequently removed to the United States District Court for the Southern District of Ohio) and the Delaware Court of Chancery, respectively, naming as defendants certain current and former directors and officers of the Company and alleging, among other things, breaches of fiduciary duty through asserted violations of law and failures to monitor workplace conduct (the "Lawsuits"). In addition, the Company also received litigation and books-and-records demands from certain other stockholders related to the same matters (together with the Lawsuits, the "Actions"). In July 2021, the Company announced the global settlement resolving the Actions. The settlement resolves all derivative claims that have been or could have been asserted in the Actions or that involve in any way the allegations referred to in the Actions and releases all such claims against the Company and its past and present employees, officers and directors, among others. As part of the settlement, the Company has agreed to implement certain management and governance measures, including the maintenance of a Diversity, Equity, and Inclusion Council. Following the August 2, 2021 spin-off of Victoria’s Secret & Co., the settlement terms will apply to both the Company and Victoria’s Secret & Co. Each company has committed to invest $45 million over at least five years to fund the management and governance measures. The settlement is subject to approval of the United States District Court of the Southern District of Ohio. Lease Guarantees In connection with the spin-off of Victoria's Secret & Co., the Company has remaining contingent obligations of approximately $265 million as of January 29, 2022 related to lease payments under the current terms of noncancelable leases, primarily related to office space, expiring at various dates through 2037. In addition, in connection with the sale of La Senza in the fourth quarter of 2018, the Company has remaining contingent obligations of approximately $25 million as of January 29, 2022 related to lease payments under the current terms of noncancelable leases expiring at various dates through 2028. These obligations 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 these businesses. The Company's reserves related to these obligations were not significant as of January 29, 2022. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Jan. 29, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The Company sponsors a tax-qualified defined contribution retirement plan for substantially all of its associates within the U.S. Participation is available to associates who meet certain age and service 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 $38 million for 2021, $37 million for 2020 and $36 million for 2019. The Company previously sponsored a non-qualified supplemental retirement plan. The non-qualified plan was an unfunded plan, which provided benefits beyond the Internal Revenue Code limits for qualified defined contribution plans. On June 27, 2020, the Human Capital and Compensation Committee of the Board authorized the termination of the non-qualified plan, after which time only certain contributions were permitted to be made based on eligible earnings prior to the termination date. In July 2021, the Company made payments of $143 million in the aggregate for the final settlement of all its obligations and benefits payable under the non-qualified plan. Total expense recognized related to the non-qualified plan was not significant for any period presented. |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) | 12 Months Ended |
Jan. 29, 2022 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity (Deficit) | Shareholders’ Equity (Deficit) Common Stock Share Repurchases In March 2021, the Company's Board authorized a $500 million share repurchase plan (the "March 2021 Plan"), which replaced the $79 million remaining under a March 2018 repurchase program. Pursuant to the Board's authorization, the Company entered into a Rule 10b5-1 purchase plan to effectuate share repurchases for the first $250 million. In May 2021, the Company initiated a second $250 million Rule 10b5-1 purchase plan to effectuate the remaining share repurchases under the March 2021 Plan In July 2021, the Company's Board authorized a new $1.5 billion share repurchase program (the "July 2021 Program"), which replaced the $36 million remaining under the March 2021 Plan. Under the authorization of this program, in July 2021 the Company entered into a stock repurchase agreement with its former Chief Executive Officer ("CEO") and certain of his affiliated entities pursuant to which the Company repurchased 10 million shares of its common stock for an aggregate purchase price of $730 million. The Company did not repurchase any shares of its common stock in 2019 or 2020. The Company repurchased the following shares of its common stock during 2021: Repurchase Program Amount Shares Amount Average Stock Price (in millions) (in thousands) (in millions) March 2021 (a) $ 500 6,996 $ 464 $ 66.30 July 2021 (a) 1,500 10,000 730 73.01 July 2021 (b) 11,234 770 68.53 _______________ (a) Reflects repurchases of L Brands, Inc. common stock prior to the August 2, 2021 spin-off of Victoria's Secret & Co. (b) Reflects repurchases of Bath & Body Works, Inc. common stock subsequent to the August 2, 2021 spin-off of Victoria's Secret & Co. On February 2, 2022, the Company announced that its Board authorized a new $1.5 billion share repurchase program (the "February 2022 Program"). Also on February 2, 2022, as part of the February 2022 Program, the Company entered into an accelerated share repurchase transaction ("ASR") under which it will repurchase $1 billion of its outstanding common stock. For additional information, see Note 21, "Subsequent Events." Additionally, subsequent to January 29, 2022, the Company repurchased an additional 1.9 million shares of its common stock for $92 million under the February 2022 Program. Common Stock Retirement In accordance with the Company's Board of Directors' resolution, shares of common stock repurchased under the July 2021 Program were to be retired and cancelled upon repurchase. As a result, the Company retired the 21 million shares repurchased under the July 2021 Program during 2021, which resulted in reductions of $11 million in the par value of Common Stock, $69 million in Paid-in Capital and $1.420 billion in Retained Earnings (Accumulated Deficit). Dividends The Board suspended the quarterly cash dividend beginning in the second quarter of 2020 as a proactive measure to strengthen the Company's financial flexibility and manage through the COVID-19 pandemic. In March 2021, the Company's Board reinstated the annual dividend at $0.60 per share, beginning with the quarterly dividend paid in June 2021. Under the authority and declaration of the Board, the Company paid the following dividends during 2021, 2020 and 2019: Ordinary Dividends Total Paid (per share) (in millions) 2021 First Quarter $ — $ — Second Quarter 0.15 42 Third Quarter 0.15 39 Fourth Quarter 0.15 39 2021 Total $ 0.45 $ 120 2020 First Quarter $ 0.30 $ 83 Second Quarter — — Third Quarter — — Fourth Quarter — — 2020 Total $ 0.30 $ 83 2019 First Quarter $ 0.30 $ 83 Second Quarter 0.30 83 Third Quarter 0.30 83 Fourth Quarter 0.30 83 2019 Total $ 1.20 $ 332 |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Jan. 29, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Compensation | Share-based Compensation Plan Summary In 2020, the Company's stockholders approved the 2020 Stock Option and Performance Incentive Plan ("2020 Plan"). The 2020 Plan replaced the 2015 Stock Option and Performance Incentive Plan (together with the 2020 Plan, the "Plans"). The Plans provide for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock units, restricted stock, performance share units and unrestricted shares. The Company grants stock options at a price equal to the fair market value of the stock on the date of grant. Stock options have a maximum term of 10 years. Stock options and restricted stock units generally vest over three five three Under the Plans, 206 million options, restricted and unrestricted shares have been authorized to be granted to associates and directors. There were 13 million shares of common stock available for future issuance under the Plans as of January 29, 2022. In connection with the Separation, the maximum number of shares available for future issuance under the 2020 Plan and underlying outstanding awards under the Plans was equitably adjusted to prevent the dilution or enlargement of rights according to the terms of the Plans. Income Statement Impact The following table provides share-based compensation expense included in the Consolidated Statements of Income (Loss) for 2021, 2020 and 2019: 2021 2020 2019 (in millions) Costs of Goods Sold, Buying and Occupancy $ 10 $ 9 $ 14 General, Administrative and Store Operating Expenses 21 16 35 Total Share-based Compensation Expense $ 31 $ 25 $ 49 The tax benefit associated with recognized share-based compensation expense was $10 million for 2021. The Company recognized incremental tax expense associated with share-based compensation of $8 million for 2020 and 2019. As of January 29, 2022, there was $37 million of total unrecognized compensation cost, net of estimated forfeitures, related to unvested restricted stock and performance share units. This cost is expected to be recognized over a weighted-average period of 1.7 years. As of January 29, 2022, there was $3 million of total unrecognized compensation cost, net of estimated forfeitures, related to unvested stock options. This cost is expected to be recognized over a weighted-average period of 2.1 years. Victoria's Secret & Co. Spin-Off In connection with Separation, the Company adjusted its outstanding share-based awards in accordance with the terms of the Employee Matters Agreement entered into at the time of the Separation. Adjustments to the underlying shares and terms of outstanding restricted stock units, performance share units and stock options were made to preserve the intrinsic value of the awards immediately before and after the Separation. The adjustment of the underlying shares and exercise prices, as applicable, was determined using a ratio based on the relative values of the Company's pre-Distribution stock price and the Company's post-Distribution stock price. Following the Separation, the adjusted outstanding awards continue to vest over their original vesting schedules. The Company did not recognize any incremental compensation cost related to the adjustment of outstanding awards. The disclosures reported below within this Note 19 have not been segregated between continuing and discontinued operations. Restricted Stock Units and Performance Share Units The following table provides the Company’s restricted stock unit and performance share unit activity on a combined basis for the fiscal year ended January 29, 2022: Number of Weighted (in thousands) Unvested as of January 30, 2021 6,647 $ 25.68 Converted to Victoria's Secret & Co. Shares (2,537) 35.19 Spin-Off Related Adjustment 807 — Granted 1,537 52.91 Vested (2,185) 37.21 Cancelled (170) 33.46 Unvested as of January 29, 2022 4,099 $ 22.92 _______________ (a) The weighted average grant date fair value for activity subsequent to the Separation, including the unvested balance as of January 29, 2022, reflects the adjustment to preserve the intrinsic value of the awards immediately before and after the Separation. The fair value of restricted stock unit and performance share unit awards is generally based on the market value of the Company's common stock on the grant date adjusted for anticipated dividend yields. The weighted-average estimated fair value of awards granted was $52.91 per share for 2021, $17.05 per share for 2020 and $23.34 per share for 2019. The Company’s total intrinsic value of awards that vested was $137 million for 2021, $33 million for 2020 and $39 million for 2019. The Company’s total fair value at grant date of awards that vested was $75 million for 2021, $89 million for 2020 and $104 million for 2019. Tax benefits realized from tax deductions associated with awards that vested were $36 million for 2021, $8 million for 2020 and $10 million for 2019. Stock Options The fair value of stock options granted is determined using the Black-Scholes option-pricing model. The determination of the fair value of options is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the Company's expected stock price volatility over the term of the awards and projected employee stock option exercise behaviors. The following table provides the Company’s stock option activity for the fiscal year ended January 29, 2022: Number of (in thousands) Outstanding as of January 30, 2021 4,163 Converted to Victoria's Secret & Co. Shares (1,042) Spin-Off Related Adjustment 288 Granted 228 Exercised (1,900) Cancelled (624) Outstanding as of January 29, 2022 1,113 Options Exercisable as of January 29, 2022 859 Intrinsic value for stock options is the difference between the current market value of the Company’s common stock and the option strike price. The total intrinsic value of options exercised was $39 million for 2021. Tax benefits realized from tax deductions associated with stock options exercised was $8 million for 2021. As of January 29, 2022, there were 1.1 million shares of common stock subject to outstanding stock options, the majority of which were fully vested, with a total intrinsic value of $15 million. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jan. 29, 2022 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following table provides summarized quarterly financial data for 2021: Fiscal Quarter Ended May 1, 2021 (a) July 31, 2021 October 30, 2021 (b) January 29, 2022 (c) (in millions except per share data) Net Sales $ 1,470 $ 1,704 $ 1,681 $ 3,027 Gross Profit 742 828 839 1,446 Operating Income 337 384 409 879 Income from Continuing Operations Before Income Taxes 119 287 227 790 Net Income from Continuing Operations 91 215 177 592 Income (Loss) from Discontinued Operations, Net of Tax 186 159 (89) 2 Net Income $ 277 $ 374 $ 88 $ 594 Net Income (Loss) per Basic Share (d) Continuing Operations $ 0.32 $ 0.78 $ 0.67 $ 2.31 Discontinued Operations 0.67 0.58 (0.34) 0.01 Total Net Income per Basic Share $ 0.99 $ 1.36 $ 0.33 $ 2.31 Net Income (Loss) per Diluted Share (d) Continuing Operations $ 0.32 $ 0.77 $ 0.66 $ 2.27 Discontinued Operations 0.66 0.57 (0.33) 0.01 Total Net Income per Diluted Share $ 0.97 $ 1.34 $ 0.33 $ 2.28 ________________ (a) Net Income from Continuing Operations includes the effect of a $105 million pre-tax loss ($80 million after-tax) associated with the early extinguishment of outstanding notes. (b) Net Income from Continuing Operations includes the effect of an $89 million pre-tax loss ($68 million after-tax) associated with the early extinguishment of outstanding notes. (c) Operating Income includes the effect of pre-tax loss related to the write-off of inventory that was destroyed by a tornado at a vendor’s factory of $9 million ($7 million after-tax). (d) Due to changes in stock prices during the year and timing of issuances of shares, the cumulative total of quarterly net income (loss) per share amounts may not equal the net income (loss) per share for the year. The following table provides summarized quarterly financial data for 2020: Fiscal Quarter Ended May 2, 2020 (a) August 1, 2020 (b) October 31, 2020 (c) January 30, 2021 (in millions except per share data) Net Sales $ 760 $ 1,253 $ 1,702 $ 2,719 Gross Profit 268 559 863 1,407 Operating Income 36 263 436 870 Income (Loss) from Continuing Operations Before Income Taxes (54) 160 265 751 Net Income (Loss) from Continuing Operations — 112 196 557 Net Income (Loss) from Discontinued Operations, Net of Tax (297) (161) 135 302 Net Income (Loss) $ (297) $ (49) $ 331 $ 859 Net Income (Loss) per Basic Share (d) Continuing Operations $ — $ 0.40 $ 0.70 $ 2.00 Discontinued Operations (1.07) (0.58) 0.48 1.09 Total Net Income (Loss) per Basic Share $ (1.07) $ (0.18) $ 1.19 $ 3.08 Net Income (Loss) per Diluted Share (d)(e) Continuing Operations $ — $ 0.40 $ 0.69 $ 1.96 Discontinued Operations (1.07) (0.58) 0.48 1.07 Total Net Income (Loss) per Diluted Share $ (1.07) $ (0.18) $ 1.17 $ 3.03 ________________ (a) Net Income (Loss) from Continuing Operations includes the effect of a $50 million income tax benefit related to the resolution of certain tax matters. (b) Operating Income includes the effect of pre-tax severance and related charges of $30 million ($24 million after-tax). (c) Net Income from Continuing Operations includes the effect of a $53 million pre-tax loss ($40 million after-tax) associated with the early extinguishment of outstanding notes. (d) Due to changes in stock prices during the year and timing of issuances of shares, the cumulative total of quarterly net income (loss) per share amounts may not equal the net income (loss) per share for the year. (e) The cumulative total of quarterly net income (loss) per diluted share amounts does not equal the net income (loss) per diluted share for the year due to the net loss from continuing operations in the first quarter. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 29, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events New Share Repurchase Program and Accelerated Share Repurchase Program On February 2, 2022, the Company announced that its Board authorized a new $1.5 billion share repurchase program. Also on February 2, 2022, as part of the February 2022 Program, the Company entered into an ASR under which the Company will repurchase $1 billion of its own outstanding common stock. On February 4, 2022, the Company delivered $1 billion to the ASR bank, and the bank delivered approximately 14 million shares of common stock to the Company (the "Initial Shares"). Pursuant to the terms of the ASR, the Initial Shares represented 80% of the number of shares determined by dividing the $1 billion Company payment by the closing price of its common stock on February 2, 2022. The aggregate number of shares of common stock to be delivered under the ASR will be based generally upon a discount to the Rule 10b-18 volume-weighted average price at which the shares of common stock trade during the regular trading sessions on the NYSE during the term of repurchase period. At final settlement, the ASR bank may be obligated to deliver additional shares of common stock to the Company or the Company may be obligated to make delivery of shares of common stock or a cash payment to the ASR bank, at the Company’s option. The Company expects final settlement of the share repurchases under the ASR to occur during the second quarter of 2022. Additional Share Repurchases Subsequent to January 29, 2022, the Company repurchased an additional 1.9 million shares of its common stock for $92 million under the February 2022 Program. Annual Dividend In February 2022, the Company's Board increased the annual dividend to $0.80 per share and declared the quarterly dividend of $0.20 per share, paid on March 4, 2022, to stockholders of record as of February 18, 2022. CEO Transition On February 23, 2022, the Company announced that Andrew M. Meslow will step down as CEO and as a member of the Board due to health reasons, effective May 12, 2022. Sarah E. Nash, Chair of the Board, was appointed Executive Chair on February 22, 2022, and will assume the role of Interim CEO upon Mr. Meslow's departure. The Board is in the process of retaining a national search firm to assist in identifying a permanent CEO. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 29, 2022 | |
Accounting Policies [Abstract] | |
Segment Reporting | Segment Reporting The Company operates as and reports a single segment that includes all of its continuing operations. The Company previously had two reportable segments: Bath & Body Works and Victoria's Secret. The Victoria's Secret reportable segment was spun-off on August 2, 2021 and is reported as discontinued operations for all periods presented. |
Impacts of COVID-19 | Impacts of COVID-19 The coronavirus ("COVID-19") pandemic has created significant public health concerns as well as economic disruption, uncertainty and volatility. The Company's operations and financial performance have been materially impacted by the COVID-19 pandemic. In the first quarter of 2020, all the Company-operated stores were closed on March 17, 2020, but the Company was able to re-open the majority of its stores as of the end of the second quarter of 2020. The direct business remained open for the duration of 2020. During 2020, the Company took prudent actions to manage expenses and to maintain its cash position and financial flexibility. The Company adopted new operating models focused on safety in connection with the pandemic. The Company continues to remain focused on providing a safe store environment for its customers and associates, while also delivering an engaging shopping experience. The Company also remains focused on the safe operations of its corporate facilities, and distribution and fulfillment centers while maximizing its direct business. There remains the potential for COVID-related closures or operating restrictions, which could materially impact the Company's operations and financial performance in future periods. |
Fiscal Year | Fiscal YearThe Company's fiscal year ends on the Saturday nearest to January 31. As used herein, “2021," "2020," and “2019” refer to the 52-week periods ended January 29, 2022, January 30, 2021 and February 1, 2020, 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 all unconsolidated entities is included in Other Loss in the Consolidated Statements of Income (Loss). The Company’s equity method investments are required to be reviewed for impairment when it is determined there may be an other-than-temporary loss in value. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and Cash Equivalents include cash on hand, demand deposits with financial institutions and highly liquid investments with original maturities of less than 90 days. The Company’s outstanding checks are included in Accounts Payable on the Consolidated Balance Sheets. |
Restricted Cash | Restricted Cash During 2020, the Company placed cash on deposit with certain financial institutions as collateral for their lending commitments to certain former Victoria's Secret subsidiaries. These deposits totaled $30 million as of January 30, 2021 and were recorded in Other Assets on the Consolidated Balance Sheet. During the second quarter of 2021, these lending commitments were terminated which released the restrictions on this cash. Accordingly, the balance was reclassified to Cash and Cash Equivalents during the second quarter of 2021. |
Concentration of Credit Risk | Concentration of Credit Risk The Company maintains cash and cash equivalents and derivative contracts with various major financial institutions. The Company monitors the relative credit standing of financial institutions with whom the Company transacts and limits the amount of credit exposure with any one entity. 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 determines the required allowance for expected credit losses using information such as customer credit history and financial condition. Amounts are recorded to the allowance when it is determined that expected credit losses may occur. |
Inventories | Inventories Inventories are principally valued at the lower of cost or net realizable value, on an average cost basis. The Company records valuation adjustments to its inventories if the cost of inventory on hand exceeds the amount it expects to realize from the ultimate sale or disposal of the inventory. These estimates are based on management’s judgment regarding future demand and market conditions and analysis of historical experience. The Company also records inventory loss adjustments for estimated physical inventory losses that have occurred since the date of the last physical inventory. These estimates are based on management’s analysis of historical results and operating trends. |
Advertising Costs | Advertising CostsAdvertising and marketing costs are expensed at the time the promotion first appears in media, in the store or when the advertising is mailed. |
Property and Equipment | Property and Equipment The Company’s property and equipment are recorded at cost and depreciation is computed on a straight-line basis using the following depreciable life ranges: Category of Property and Equipment Depreciable Life Range Software, including software developed for internal use 3 - 5 years Store related assets 3 - 10 years Leasehold improvements Shorter of lease term or 10 years Non-store related building and site improvements 10 - 15 years Other property and equipment 20 years Buildings 30 years When a decision has been made to dispose of property and equipment prior to the end of the previously estimated useful life, depreciation estimates are revised to reflect the use of the asset over the shortened estimated useful life. The Company’s cost of assets sold or retired and the related accumulated depreciation are removed from the accounts with any resulting gain or loss included in net income (loss). Maintenance and repairs are charged to expense as incurred. Major renewals and betterments that extend useful lives are capitalized. Long-lived store assets, which include leasehold improvements, store related assets and operating lease assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Store assets are grouped at the lowest level for which they are largely independent of other assets or asset groups. If the estimated undiscounted future cash flows related to the asset group are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the estimated fair value, determined by the estimated discounted future cash flows of the asset group. For operating lease assets, the Company determines the fair value of the assets by comparing the contractual rent payments to estimated market rental rates. An individual asset within an asset group is not impaired below its estimated fair value. The fair value of long-lived store assets are determined using Level 3 inputs within the fair value hierarchy. |
Leases and Leasehold Improvements | Leases and Leasehold Improvements The Company leases retail space, office space, warehouse facilities, storage space, equipment and certain other items under operating leases. A substantial portion of the Company’s leases are operating leases for its stores, which generally have an initial term of 10 years. Annual store rent consists of a fixed minimum amount and/or variable rent based on a percentage of sales exceeding a stipulated amount. Store lease terms generally also require additional payments covering certain operating costs such as common area maintenance, utilities, insurance and taxes. Certain leases contain predetermined fixed escalations of minimum rentals or require periodic adjustments of minimum rentals depending on an index or rate. Additionally, certain leases contain incentives, such as construction allowances from landlords and/or rent abatements subsequent to taking possession of the leased property. At lease commencement, the Company recognizes an asset for the right to use the leased asset and a liability based on the present value of the unpaid fixed lease payments. Operating lease costs are recognized on a straight-line basis as lease expense over the lease term. Variable lease payments associated with the Company's leases are recognized upon occurrence of the event or circumstance on which the payments are assessed. Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet, and lease expense is recognized on a straight-line basis over the lease term. The Company uses its incremental borrowing rate, adjusted for collateral, to determine the present value of its unpaid lease payments. The Company’s store leases often include options to extend the initial term or to terminate the lease prior to the end of the initial term. The exercise of these options is typically at the sole discretion of the Company. These options are included in determining the initial lease term at lease commencement if the Company is reasonably certain to exercise the option. Additionally, the Company may operate stores for a period of time on a month-to-month basis after the expiration of the lease term. The Company also has leasehold improvements which are amortized over the shorter of their estimated useful lives or the period from the date the assets are placed in service to the end of the initial lease term. Leasehold improvements made after the inception of the initial lease term are depreciated over the shorter of their estimated useful lives or the remaining lease term, including renewal periods, if reasonably assured. |
Intangible Assets - Goodwill and Trade Names | Intangible Assets - Goodwill and Trade Name The Company has recorded goodwill and trade name intangible assets resulting from business combinations that are recorded at cost. Goodwill is reviewed for impairment at the reporting unit level each year in the fourth quarter and may be reviewed more frequently if certain events occur or circumstances change. The Company has the option to either first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit's fair value is less than its carrying value (including goodwill), or to proceed directly to the quantitative assessment which requires a comparison of a reporting unit's fair value to its carrying value (including goodwill). If the Company determines that the fair value of a reporting unit is less than its carrying value, it recognizes an impairment charge equal to the difference, not to exceed the total amount of goodwill allocated to a reporting unit. The Company's reporting units are determined in accordance with the provisions of ASC 350, Intangibles - Goodwill and Other . The Bath & Body Works trade name is an intangible asset with and indefinite life that is reviewed for impairment each year in the fourth quarter, and may be reviewed more frequently if certain events occur or circumstances change. The Company has the option to either first perform a qualitative assessment to determine whether it is more likely than not that the trade name is impaired, or to proceed directly to the quantitative assessment which requires a comparison of the fair value of the trade name to its carrying value. To determine if the fair value of the trade name is less than its carrying amount, the Company will estimate the fair value, usually determined by the relief from royalty method under the income approach, and compare that value with its carrying amount. If the carrying value of the trade name exceeds its fair value, the Company recognizes an impairment charge equal to the difference. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of the Company’s foreign operations is generally the applicable local currency. Assets and liabilities are translated into U.S. dollars using the current exchange rates in effect as of the balance sheet date, while revenues and expenses are translated at the average exchange rates for the period. The Company’s resulting translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in shareholders’ equity (deficit). Accumulated foreign currency translation adjustments are reclassified to net income (loss) when realized upon sale or upon complete, or substantially complete, liquidation of the investment in the foreign entity. |
Derivative Financial Instruments | Derivative Financial Instruments The earnings of the Company's Canadian operations are subject to exchange rate risk as substantially all the 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. 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 Costs of Goods Sold, Buying and Occupancy in the Consolidated Statements of Income (Loss). All designated cash flow hedges are recorded on the Consolidated Balance Sheets at fair value. The fair value of designated cash flow hedges is not significant for any period presented. The Company does not use derivative financial instruments for trading purposes. |
Fair Value | Fair Value The authoritative guidance included in ASC 820, Fair Value Measurement, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. This authoritative guidance further establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1—Quoted market prices in active markets for identical assets or liabilities. • Level 2—Observable inputs other than quoted market prices included in Level 1, such as quoted prices of similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company estimates the fair value of financial instruments, property and equipment and goodwill and trade names in accordance with the provisions of ASC 820 . |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, taxes currently payable or refundable are accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are also recognized for realizable operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted income tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in income tax rates is recognized in the Company’s Consolidated Statements of Income (Loss) in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if it is more likely than not that such assets will not be realized. In determining the Company’s provision for income taxes, the Company considers permanent differences between book and tax income and statutory income tax rates. The Company’s effective income tax rate is affected by items including changes in tax law, the tax jurisdiction of new stores or business ventures and the level of earnings. The Company follows a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and for which actual outcomes may differ from forecasted outcomes. The Company's policy is to include interest and penalties related to uncertain tax positions in income tax expense. The Company’s income tax returns, like those of most companies, are periodically audited by domestic and foreign tax authorities. These audits include questions regarding the Company’s tax filing positions, including the timing and amount of deductions and the allocation of income among various tax jurisdictions. At any one time, multiple tax years are subject to audit by the various tax authorities. A number of years may elapse before a particular matter for which the Company has established an accrual is audited and fully resolved or clarified. The Company adjusts its tax contingencies accrual and income tax provision in the period in which matters are effectively settled with tax authorities at amounts different from its established accrual, when the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. The Company includes its tax contingencies accrual, including accrued penalties and interest, in Other Long-term Liabilities on the Consolidated Balance Sheets unless the liability is expected to be paid within one year. Changes to the tax contingencies accrual, including accrued penalties and interest, are included in Provision for Income Taxes on the Consolidated Statements of Income (Loss). |
Self-Insurance | Self-Insurance The Company is self-insured for medical, workers’ compensation, property, general liability and automobile liability up to certain stop-loss limits. Such costs are accrued based on known claims and an estimate of incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information and actuarial estimates. |
Noncontrolling Interest | Noncontrolling Interest Noncontrolling interest represents the portion of equity interests of consolidated affiliates not owned by the Company. |
Share-based Compensation | Share-based Compensation The Company recognizes all share-based payments to associates and directors as compensation cost over the service period based on their estimated fair value on the date of grant. The Company estimates award forfeitures at the time awards are granted and adjusts, if necessary, in subsequent periods based on historical experience and expected future forfeitures. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue based on the amount it expects to receive when control of the goods or services is transferred to the customer. The Company recognizes sales upon customer receipt of merchandise, which for direct channel revenues reflect an estimate of shipments that have not yet been received by the customer based on shipping terms and historical delivery times. The Company’s shipping and handling revenues are included in Net Sales with the related costs included in Costs of Goods Sold, Buying and Occupancy in the Consolidated Statements of Income (Loss). The Company also provides a reserve for projected merchandise returns based on historical experience. Net Sales exclude sales and other similar taxes collected from customers. The Company offers a loyalty program that allows customers to earn points based on purchasing activity. As customers accumulate points and reach point thresholds, they can use the points to purchase merchandise in stores or online. The Company allocates revenue to points earned on qualifying purchases and defers recognition until the points are redeemed. The amount of revenue deferred is based on the relative stand-alone selling price method, which includes an estimate for points not expected to be redeemed based on historical experience. The Company sells gift cards with no expiration dates to customers. The Company does not charge administrative fees on unused gift cards. The Company recognizes revenue from gift cards when they are redeemed by the customer. In addition, the Company recognizes revenue on unredeemed gift cards where the likelihood of the gift card being redeemed is remote and there is no legal obligation to remit the unredeemed gift cards to relevant jurisdictions (gift card breakage). Gift card breakage revenue is recognized in proportion, and over the same period, as actual gift card redemptions. The Company determines the gift card breakage rate based on historical redemption patterns. Gift card breakage is included in Net Sales in the Consolidated Statements of Income (Loss). The Company also recognizes revenues associated with franchise, license, wholesale and sourcing arrangements. Revenue recognized under franchise and license arrangements generally consists of royalties earned and recognized upon sale of merchandise by franchise and license partners to retail customers. Revenue is generally recognized under wholesale and sourcing arrangements at the time the title passes to the partner. |
Costs of Goods Sold, Buying and Occupancy | Costs of Goods Sold, Buying and Occupancy The Company’s costs of goods sold include merchandise costs, net of discounts and allowances, freight and inventory shrinkage. The Company’s buying and occupancy expenses primarily include payroll, benefit costs and operating expenses for its buying departments and distribution network; and rent, common area maintenance, real estate taxes, utilities, maintenance, fulfillment expenses and depreciation for the Company’s stores, warehouse facilities and equipment. |
General, Administrative and Store Operating Expenses | General, Administrative and Store Operating Expenses The Company’s general, administrative and store operating expenses primarily include payroll and benefit costs for its store-selling and administrative departments (including corporate functions), marketing, advertising and other operating expenses not specifically categorized elsewhere in the Consolidated Statements of Income (Loss). |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. Actual results may differ from those estimates, and the Company revises its estimates and assumptions as new information becomes available. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The Company did not adopt any new accounting standards during 2021 that had a material impact on the Company's consolidated results of operations, financial position or cash flows. In addition, as of March 18, 2022, there are no new accounting standards not yet adopted that are expected to have a material impact on the Company's consolidated results of operations, financial position or cash flows. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Cash, and Cash Equivalents | The following table summarizes the location of the Company's Cash and Cash Equivalents and restricted cash in the Consolidated Balance Sheets as of January 29, 2022 and January 30, 2021: January 29, January 30, (in millions) Cash and Cash Equivalents $ 1,979 $ 3,568 Current Assets of Discontinued Operations — 335 Other Assets — 30 Total Cash and Cash Equivalents and Restricted Cash $ 1,979 $ 3,933 |
Schedule of Restricted Cash | The following table summarizes the location of the Company's Cash and Cash Equivalents and restricted cash in the Consolidated Balance Sheets as of January 29, 2022 and January 30, 2021: January 29, January 30, (in millions) Cash and Cash Equivalents $ 1,979 $ 3,568 Current Assets of Discontinued Operations — 335 Other Assets — 30 Total Cash and Cash Equivalents and Restricted Cash $ 1,979 $ 3,933 |
Depreciable Life Range of Property Plant and Equipment | The Company’s property and equipment are recorded at cost and depreciation is computed on a straight-line basis using the following depreciable life ranges: Category of Property and Equipment Depreciable Life Range Software, including software developed for internal use 3 - 5 years Store related assets 3 - 10 years Leasehold improvements Shorter of lease term or 10 years Non-store related building and site improvements 10 - 15 years Other property and equipment 20 years Buildings 30 years |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Discontinued Operations in Financial Statements | The following table summarizes the significant line items included in Income (Loss) from Discontinued Operations, Net of Tax in the Consolidated Statements of Income (Loss) for 2021, 2020 and 2019: 2021 2020 2019 (in millions) Net Sales $ 3,194 $ 5,413 $ 7,509 Costs of Goods Sold, Buying and Occupancy (1,841) (3,842) (5,446) General, Administrative and Store Operating Expenses (a) (975) (1,595) (2,845) Interest Expense (2) (6) (8) Other Income (Loss) (3) — 1 Income (Loss) from Discontinued Operations Before Income Taxes 373 (30) (789) Provision (Benefit) for Income Taxes 115 (9) 37 Income (Loss) from Discontinued Operations, Net of Tax $ 258 $ (21) $ (826) _______________ (a) 2021 includes Separation-related expenses of $104 million. Prior to the Separation, these costs were reported in the Other category under the Company's previous segment reporting. The following table summarizes the carrying value of the significant classes of assets and liabilities classified as discontinued operations as of January 30, 2021: January 30, (in millions) Cash and Cash Equivalents $ 335 Accounts Receivable, Net 121 Inventories 701 Other 82 Current Assets of Discontinued Operations 1,239 Property and Equipment, Net 1,078 Operating Lease Assets 1,590 Trade Names 246 Deferred Income Taxes 11 Other Assets 56 Other Assets of Discontinued Operations $ 2,981 Accounts Payable $ 338 Accrued Expenses and Other 730 Current Operating Lease Liabilities 421 Income Taxes 9 Current Liabilities of Discontinued Operations 1,498 Deferred Income Taxes 93 Long-term Operating Lease Liabilities 1,553 Other Long-term Liabilities 21 Other Long-term Liabilities of Discontinued Operations $ 1,667 2021 2020 2019 (in millions) Depreciation of Long-Lived Assets $ 158 $ 326 $ 411 Share-based Compensation Expense 15 25 38 Deferred Income Taxes 3 16 (40) Impairment of Victoria's Secret Goodwill — — 720 Victoria's Secret Asset Impairment Charges — 254 263 Gain from Victoria's Secret Hong Kong Store Closure and Lease Termination — (39) — Gain Related to Formation of Victoria's Secret U.K. Joint Venture — (54) — Capital Expenditures (66) (127) (225) Net Borrowings from (Repayments of) Victoria's Secret Foreign Facilities — (155) 5 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides a disaggregation of Net Sales for 2021, 2020 and 2019: 2021 2020 2019 (in millions) Stores - U.S. and Canada $ 5,709 $ 4,207 $ 4,212 Direct - U.S. and Canada 1,890 2,003 958 International (a) 283 224 185 Other (b) — — 50 Total Net Sales $ 7,882 $ 6,434 $ 5,405 _______________ (a) Results include royalties associated with franchised store and wholesale sales. (b) Results for 2019 include wholesale revenues to La Senza, subsequent to the Company's divestiture of the business in 2018. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Computation | The following table provides the weighted-average shares utilized for the calculation of basic and diluted earnings (loss) per share for 2021, 2020 and 2019: 2021 2020 2019 (in millions) Common Shares 282 286 284 Treasury Shares (13) (8) (8) Basic Shares 269 278 276 Effect of Dilutive Restricted Stock and Options 4 3 2 Diluted Shares 273 281 278 Anti-dilutive Options and Awards (a) 1 5 6 ________________ |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Inventory, Net [Abstract] | |
Summary of Inventories | The following table provides details of inventories as of January 29, 2022 and January 30, 2021: January 29, January 30, (in millions) Finished Goods Merchandise $ 521 $ 410 Raw Materials and Merchandise Components 188 162 Total Inventories $ 709 $ 572 |
Long-Lived Assets (Tables)
Long-Lived Assets (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | The following table provides details of Property and Equipment, Net as of January 29, 2022 and January 30, 2021: January 29, January 30, (in millions) Land and Improvements $ 89 $ 89 Buildings and Improvements 301 310 Furniture, Fixtures, Software and Equipment 1,408 1,309 Leasehold Improvements 722 689 Construction in Progress 63 15 Total 2,583 2,412 Accumulated Depreciation and Amortization (1,574) (1,395) Property and Equipment, Net $ 1,009 $ 1,017 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Leases [Abstract] | |
Schedule of Lease Cost | The following table provides the components of lease cost for operating leases for 2021, 2020 and 2019: 2021 2020 2019 (in millions) Operating Lease Costs $ 216 $ 223 $ 207 Variable Lease Costs 108 59 52 Short-term Lease Costs 34 29 22 Total Lease Cost $ 358 $ 311 281 |
Schedule of Future Maturities of Operating Lease Liabilities | The following table provides future maturities of operating lease liabilities as of January 29, 2022: Fiscal Year (in millions) 2022 $ 228 2023 213 2024 203 2025 191 2026 170 Thereafter 382 Total Lease Payments $ 1,387 Less: Interest (228) Present Value of Operating Lease Liabilities $ 1,159 |
Schedule of Supplemental Information Related to Leases | The following table provides the weighted average remaining lease term and discount rate for operating leases with lease liabilities as of January 29, 2022 and January 30, 2021: January 29, January 30, Weighted Average Remaining Lease Term (years) 6.9 7.0 Weighted Average Discount Rate 5.4 % 5.8 % The following table provides supplemental cash flow information related to the Company's operating leases for 2021, 2020 and 2019: 2021 2020 2019 (in millions) Cash paid for Operating Lease Liabilities (a) $ 245 $ 172 $ 197 Lease Assets obtained as a result of new Lease Liabilities 209 204 199 ________________ |
Accrued Expenses and Other (Tab
Accrued Expenses and Other (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | The following table provides additional information about the composition of Accrued Expenses and Other as of January 29, 2022 and January 30, 2021: January 29, January 30, (in millions) Deferred Revenue, Principally from Gift Card Sales $ 148 $ 115 Compensation, Payroll Taxes and Benefits 142 181 Supplemental Retirement Plan — 100 Interest 75 94 Taxes, Other than Income 39 53 Rent 47 25 Accrued Claims on Self-insured Activities 38 39 Other 162 120 Total Accrued Expenses and Other $ 651 $ 727 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The following table provides the components of the Company’s provision for income taxes for 2021, 2020 and 2019: 2021 2020 2019 (in millions) Current: U.S. Federal $ 249 $ 178 $ 116 U.S. State 53 52 16 Non-U.S. 4 10 5 Total 306 240 137 Deferred: U.S. Federal 24 6 11 U.S. State 10 5 4 Non-U.S. 8 6 (4) Total 42 17 11 Provision for Income Taxes $ 348 $ 257 $ 148 |
Reconciliation of the Statutory Federal Income Tax Rate and the Effective Tax Rate | The following table provides the reconciliation between the statutory federal income tax rate and the effective tax rate for 2021, 2020 and 2019: 2021 2020 2019 Federal Income Tax Rate 21.0 % 21.0 % 21.0 % State Income Taxes, Net of Federal Income Tax Effect 4.2 % 4.9 % 5.0 % Impact of Non-U.S. Operations 0.1 % 0.5 % (0.2 %) Share-based Compensation (0.7 %) 0.7 % 1.3 % Uncertain Tax Positions (0.5 %) (4.9 %) (3.7 %) Other Items, Net 0.4 % 0.7 % 0.9 % Effective Tax Rate 24.5 % 22.9 % 24.3 % |
Effect of Temporary Differences that Cause Deferred Income Taxes | The following table provides the effect of temporary differences that cause deferred income taxes as of January 29, 2022 and January 30, 2021. Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carryforwards at the end of the respective year. January 29, 2022 January 30, 2021 Assets Liabilities Total Assets Liabilities Total (in millions) Loss Carryforwards $ 405 $ — $ 405 $ 403 $ — $ 403 Non-qualified Retirement Plan — — — 22 (2) 20 Leases 264 (251) 13 259 (247) 12 Share-based Compensation 8 — 8 17 — 17 Property and Equipment — (105) (105) 4 (122) (118) Trade Names — (38) (38) — (38) (38) Other Assets — (62) (62) — (60) (60) Other, Net 46 (16) 30 45 (14) 31 Valuation Allowance (363) — (363) (350) — (350) Total Deferred Income Taxes $ 360 $ (472) $ (112) $ 400 $ (483) $ (83) |
Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits for U.S. federal, state & non-U.S. tax jurisdictions for 2021, 2020 and 2019, without interest and penalties: 2021 2020 2019 (in millions) Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year $ 152 $ 88 $ 114 Increases to Unrecognized Tax Benefits for Prior Years 5 7 15 Decreases to Unrecognized Tax Benefits for Prior Years (12) (50) (22) Increases to Unrecognized Tax Benefits as a Result of Current Year Activity 21 113 3 Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities (3) — (16) Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations (16) (6) (6) Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year $ 147 $ 152 $ 88 |
Long-term Debt and Borrowing _2
Long-term Debt and Borrowing Facilities (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Schedule of Long-term Debt Instruments | The following table provides the Company’s outstanding debt balance, net of unamortized debt issuance costs and discounts, as of January 29, 2022 and January 30, 2021: January 29, January 30, (in millions) Senior Secured Debt with Subsidiary Guarantee $750 million, 6.875% Fixed Interest Rate Secured Notes due July 2025 ("2025 Secured Notes") $ — $ 740 Senior Debt with Subsidiary Guarantee $1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) — 284 $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) — 319 $320 million, 9.375% Fixed Interest Rate Notes due July 2025 ("2025 Notes") 316 493 $297 million, 6.694% Fixed Interest Rate Notes due January 2027 ("2027 Notes") 281 278 $500 million, 5.25% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) 497 497 $500 million, 7.50% Fixed Interest Rate Notes due June 2029 ("2029 Notes") 489 488 $1 billion, 6.625% Fixed Interest Rate Notes due October 2030 ("2030 Notes") 990 988 $1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) 992 991 $700 million, 6.75% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) 694 694 Total Senior Debt with Subsidiary Guarantee $ 4,259 $ 5,032 Senior Debt $350 million, 6.95% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) $ 349 $ 348 $247 million, 7.60% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) 246 246 Total Senior Debt $ 595 $ 594 Total Long-term Debt $ 4,854 $ 6,366 |
Schedule of Principal Payments Due on Long-term Debt | The following table provides principal payments due on outstanding debt in the next five fiscal years and the remaining years thereafter: Fiscal Year (in millions) 2022 $ — 2023 — 2024 — 2025 320 2026 297 Thereafter 4,298 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Fair Value Measurements [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 outstanding publicly traded debt as of January 29, 2022 and January 30, 2021: January 29, January 30, (in millions) Principal Value $ 4,915 $ 6,449 Fair Value, Estimated (a) 5,493 7,243 ________________ (a) The estimated fair value is based on reported transaction prices which are considered Level 2 inputs in accordance with ASC 820. The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Comprehensive Income Loss | |
Components of Accumulated Other Comprehensive Income (Loss) | The following table provides the rollforward of accumulated other comprehensive income for 2021: Foreign Currency Translation Cash Flow Hedges Accumulated Other Comprehensive Income (in millions) Balance as of January 30, 2021 $ 85 $ (2) $ 83 Other Comprehensive Income Before Reclassifications 2 1 3 Amounts Reclassified from Accumulated Other Comprehensive Income — 3 3 Tax Effect — (1) (1) Current-period Other Comprehensive Income 2 3 5 Victoria's Secret Spin-Off (8) — (8) Balance as of January 29, 2022 $ 79 $ 1 $ 80 The following table provides the rollforward of accumulated other comprehensive income for 2020: Foreign Currency Translation Cash Flow Hedges Accumulated Other Comprehensive Income (in millions) Balance as of February 1, 2020 $ 52 $ — $ 52 Other Comprehensive Loss Before Reclassifications (3) (2) (5) Amounts Reclassified from Accumulated Other Comprehensive Income 36 — 36 Tax Effect — — — Current-period Other Comprehensive Income (Loss) 33 (2) 31 Balance as of January 30, 2021 $ 85 $ (2) $ 83 |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Company's repurchase program | The Company repurchased the following shares of its common stock during 2021: Repurchase Program Amount Shares Amount Average Stock Price (in millions) (in thousands) (in millions) March 2021 (a) $ 500 6,996 $ 464 $ 66.30 July 2021 (a) 1,500 10,000 730 73.01 July 2021 (b) 11,234 770 68.53 _______________ (a) Reflects repurchases of L Brands, Inc. common stock prior to the August 2, 2021 spin-off of Victoria's Secret & Co. (b) Reflects repurchases of Bath & Body Works, Inc. common stock subsequent to the August 2, 2021 spin-off of Victoria's Secret & Co. |
Schedule of Dividends Paid | Under the authority and declaration of the Board, the Company paid the following dividends during 2021, 2020 and 2019: Ordinary Dividends Total Paid (per share) (in millions) 2021 First Quarter $ — $ — Second Quarter 0.15 42 Third Quarter 0.15 39 Fourth Quarter 0.15 39 2021 Total $ 0.45 $ 120 2020 First Quarter $ 0.30 $ 83 Second Quarter — — Third Quarter — — Fourth Quarter — — 2020 Total $ 0.30 $ 83 2019 First Quarter $ 0.30 $ 83 Second Quarter 0.30 83 Third Quarter 0.30 83 Fourth Quarter 0.30 83 2019 Total $ 1.20 $ 332 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-Based Compensation Expense | The following table provides share-based compensation expense included in the Consolidated Statements of Income (Loss) for 2021, 2020 and 2019: 2021 2020 2019 (in millions) Costs of Goods Sold, Buying and Occupancy $ 10 $ 9 $ 14 General, Administrative and Store Operating Expenses 21 16 35 Total Share-based Compensation Expense $ 31 $ 25 $ 49 |
Restricted Stock Units and Performance Share Units | The following table provides the Company’s restricted stock unit and performance share unit activity on a combined basis for the fiscal year ended January 29, 2022: Number of Weighted (in thousands) Unvested as of January 30, 2021 6,647 $ 25.68 Converted to Victoria's Secret & Co. Shares (2,537) 35.19 Spin-Off Related Adjustment 807 — Granted 1,537 52.91 Vested (2,185) 37.21 Cancelled (170) 33.46 Unvested as of January 29, 2022 4,099 $ 22.92 _______________ (a) The weighted average grant date fair value for activity subsequent to the Separation, including the unvested balance as of January 29, 2022, reflects the adjustment to preserve the intrinsic value of the awards immediately before and after the Separation. |
Stock Option Activity | The following table provides the Company’s stock option activity for the fiscal year ended January 29, 2022: Number of (in thousands) Outstanding as of January 30, 2021 4,163 Converted to Victoria's Secret & Co. Shares (1,042) Spin-Off Related Adjustment 288 Granted 228 Exercised (1,900) Cancelled (624) Outstanding as of January 29, 2022 1,113 Options Exercisable as of January 29, 2022 859 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Quarterly Financial Data [Abstract] | |
Summarized Quarterly Financial Data | The following table provides summarized quarterly financial data for 2021: Fiscal Quarter Ended May 1, 2021 (a) July 31, 2021 October 30, 2021 (b) January 29, 2022 (c) (in millions except per share data) Net Sales $ 1,470 $ 1,704 $ 1,681 $ 3,027 Gross Profit 742 828 839 1,446 Operating Income 337 384 409 879 Income from Continuing Operations Before Income Taxes 119 287 227 790 Net Income from Continuing Operations 91 215 177 592 Income (Loss) from Discontinued Operations, Net of Tax 186 159 (89) 2 Net Income $ 277 $ 374 $ 88 $ 594 Net Income (Loss) per Basic Share (d) Continuing Operations $ 0.32 $ 0.78 $ 0.67 $ 2.31 Discontinued Operations 0.67 0.58 (0.34) 0.01 Total Net Income per Basic Share $ 0.99 $ 1.36 $ 0.33 $ 2.31 Net Income (Loss) per Diluted Share (d) Continuing Operations $ 0.32 $ 0.77 $ 0.66 $ 2.27 Discontinued Operations 0.66 0.57 (0.33) 0.01 Total Net Income per Diluted Share $ 0.97 $ 1.34 $ 0.33 $ 2.28 ________________ (a) Net Income from Continuing Operations includes the effect of a $105 million pre-tax loss ($80 million after-tax) associated with the early extinguishment of outstanding notes. (b) Net Income from Continuing Operations includes the effect of an $89 million pre-tax loss ($68 million after-tax) associated with the early extinguishment of outstanding notes. (c) Operating Income includes the effect of pre-tax loss related to the write-off of inventory that was destroyed by a tornado at a vendor’s factory of $9 million ($7 million after-tax). (d) Due to changes in stock prices during the year and timing of issuances of shares, the cumulative total of quarterly net income (loss) per share amounts may not equal the net income (loss) per share for the year. The following table provides summarized quarterly financial data for 2020: Fiscal Quarter Ended May 2, 2020 (a) August 1, 2020 (b) October 31, 2020 (c) January 30, 2021 (in millions except per share data) Net Sales $ 760 $ 1,253 $ 1,702 $ 2,719 Gross Profit 268 559 863 1,407 Operating Income 36 263 436 870 Income (Loss) from Continuing Operations Before Income Taxes (54) 160 265 751 Net Income (Loss) from Continuing Operations — 112 196 557 Net Income (Loss) from Discontinued Operations, Net of Tax (297) (161) 135 302 Net Income (Loss) $ (297) $ (49) $ 331 $ 859 Net Income (Loss) per Basic Share (d) Continuing Operations $ — $ 0.40 $ 0.70 $ 2.00 Discontinued Operations (1.07) (0.58) 0.48 1.09 Total Net Income (Loss) per Basic Share $ (1.07) $ (0.18) $ 1.19 $ 3.08 Net Income (Loss) per Diluted Share (d)(e) Continuing Operations $ — $ 0.40 $ 0.69 $ 1.96 Discontinued Operations (1.07) (0.58) 0.48 1.07 Total Net Income (Loss) per Diluted Share $ (1.07) $ (0.18) $ 1.17 $ 3.03 ________________ (a) Net Income (Loss) from Continuing Operations includes the effect of a $50 million income tax benefit related to the resolution of certain tax matters. (b) Operating Income includes the effect of pre-tax severance and related charges of $30 million ($24 million after-tax). (c) Net Income from Continuing Operations includes the effect of a $53 million pre-tax loss ($40 million after-tax) associated with the early extinguishment of outstanding notes. (d) Due to changes in stock prices during the year and timing of issuances of shares, the cumulative total of quarterly net income (loss) per share amounts may not equal the net income (loss) per share for the year. (e) The cumulative total of quarterly net income (loss) per diluted share amounts does not equal the net income (loss) per diluted share for the year due to the net loss from continuing operations in the first quarter. |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Jan. 29, 2022segment | Aug. 02, 2021segment | Jan. 29, 2022USD ($) | Jan. 30, 2021USD ($) | Feb. 01, 2020USD ($) | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Number of reportable segments | segment | 1 | 2 | |||
Maturity of short term investments, maximum, in days | 90 | ||||
Advertising expense | $ 166 | $ 112 | $ 122 | ||
Lessee, operating lease, term of contract | 10 years | 10 years | |||
Other Assets | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Restricted cash | $ 30 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Schedule of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Millions | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Cash and Cash Equivalents [Line Items] | |||||
Cash, cash equivalents, and restricted cash | [1] | $ 1,979 | $ 3,933 | $ 1,499 | $ 1,413 |
Cash and Cash Equivalents | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cash, cash equivalents, and restricted cash | 1,979 | 3,568 | |||
Current Assets of Discontinued Operations | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cash, cash equivalents, and restricted cash | 0 | 335 | |||
Other Assets | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cash, cash equivalents, and restricted cash | $ 0 | $ 30 | |||
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
Description of Business and S_6
Description of Business and Summary of Significant Accounting Policies - Depreciable Life Range of Property Plant and Equipment (Details) | 12 Months Ended |
Jan. 29, 2022 | |
Software, including software developed for internal use | Minimum | |
Property, Plant and Equipment [Line Items] | |
Depreciable life range | 3 years |
Software, including software developed for internal use | Maximum | |
Property, Plant and Equipment [Line Items] | |
Depreciable life range | 5 years |
Store related assets | Minimum | |
Property, Plant and Equipment [Line Items] | |
Depreciable life range | 3 years |
Store related assets | Maximum | |
Property, Plant and Equipment [Line Items] | |
Depreciable life range | 10 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Depreciable life range | 10 years |
Non-store related building and site improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Depreciable life range | 10 years |
Non-store related building and site improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Depreciable life range | 15 years |
Other property and equipment | |
Property, Plant and Equipment [Line Items] | |
Depreciable life range | 20 years |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Depreciable life range | 30 years |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) $ in Millions | Aug. 02, 2021USD ($)period | Jan. 29, 2022USD ($) | Jan. 29, 2022USD ($) | Jan. 30, 2021USD ($) | Feb. 01, 2020USD ($) | Aug. 03, 2021 | Jul. 31, 2021USD ($) | |
Income Tax Disclosure | ||||||||
Proceeds from lines of credit | [1] | $ 0 | $ 950 | $ 12 | ||||
Proceeds from Spin-Off of Victoria's Secret & Co. | $ 976 | |||||||
Payments related to spinoff | [1] | 376 | $ 0 | $ 0 | ||||
Spinoff transaction, reduction in retained earnings | $ 175 | 175 | ||||||
Spinoff transaction, reduction net accumulated other comprehensive income | 8 | 8 | ||||||
Transition services agreements, number of extension periods | period | 2 | |||||||
Transition services agreements, extension period term | 1 year | |||||||
Transition service consideration | 42 | |||||||
Transition service cost | $ 55 | |||||||
Domestic transportation services, initial term | 3 years | |||||||
Domestic transportation services consideration | 46 | |||||||
Minimum | ||||||||
Income Tax Disclosure | ||||||||
Domestic transportation services, termination written notice term | 18 months | |||||||
Maximum | ||||||||
Income Tax Disclosure | ||||||||
Transition services agreements, general service term | 2 years | |||||||
Transition services agreements, information technology service term | 3 years | |||||||
Domestic transportation services, termination written notice term | 36 months | |||||||
Victoria's Secret & Co. 4.625% Note Due July 2029 | Loans Payable | ||||||||
Income Tax Disclosure | ||||||||
Debt instrument, face amount | $ 600 | |||||||
Interest rate | 4.625% | |||||||
Proceeds from issuance of debt | $ 592 | |||||||
VSCO Credit Facilities | Term Loan Facility | ||||||||
Income Tax Disclosure | ||||||||
Credit agreement, borrowing capacity | 400 | |||||||
Proceeds from lines of credit | 384 | |||||||
Proceeds from line of credit, gross | 400 | |||||||
VSCO Credit Facilities | Revolving Credit Facility | ||||||||
Income Tax Disclosure | ||||||||
Credit agreement, borrowing capacity | $ 750 | |||||||
Victoria's Secret Co. | ||||||||
Income Tax Disclosure | ||||||||
Ownership interest | 0.00% | |||||||
Victoria's Secret Co. | ||||||||
Income Tax Disclosure | ||||||||
Common stock distributed, percentage | 100.00% | |||||||
Spinoff transaction, number of shares received per common stock exchanged | 0.33 | |||||||
Cash and cash equivalents transferred to Victoria's Secret & Co. from subsidiaries | $ 282 | |||||||
Payments related to spinoff | $ 94 | |||||||
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Income (Loss) from Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 29, 2022 | Oct. 30, 2021 | Jul. 31, 2021 | May 01, 2021 | Jan. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Income Tax Disclosure | |||||||||||
Income (Loss) from Discontinued Operations, Net of Tax | $ 2 | $ (89) | $ 159 | $ 186 | $ 302 | $ 135 | $ (161) | $ (297) | $ 258 | $ (21) | $ (826) |
Victoria's Secret | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | |||||||||||
Income Tax Disclosure | |||||||||||
Net Sales | 3,194 | 5,413 | 7,509 | ||||||||
Costs of Goods Sold, Buying and Occupancy | (1,841) | (3,842) | (5,446) | ||||||||
General, Administrative and Store Operating Expenses (a) | (975) | (1,595) | (2,845) | ||||||||
Interest Expense | (2) | (6) | (8) | ||||||||
Other Income (Loss) | (3) | 0 | 1 | ||||||||
Income (Loss) from Discontinued Operations Before Income Taxes | 373 | (30) | (789) | ||||||||
Provision (Benefit) for Income Taxes | 115 | (9) | 37 | ||||||||
Income (Loss) from Discontinued Operations, Net of Tax | 258 | $ (21) | $ (826) | ||||||||
Separation related expense | $ 104 |
Discontinued Operations - Sch_2
Discontinued Operations - Schedule of Balance Sheet from Discontinued Operations (Details) - USD ($) $ in Millions | Jan. 29, 2022 | Jan. 30, 2021 |
Income Tax Disclosure | ||
Current Assets of Discontinued Operations | $ 0 | $ 1,239 |
Other Assets of Discontinued Operations | 0 | 2,981 |
Current Liabilities of Discontinued Operations | 0 | 1,498 |
Other Long-term Liabilities of Discontinued Operations | $ 0 | 1,667 |
Victoria's Secret | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | ||
Income Tax Disclosure | ||
Cash and Cash Equivalents | 335 | |
Accounts Receivable, Net | 121 | |
Inventories | 701 | |
Other | 82 | |
Current Assets of Discontinued Operations | 1,239 | |
Property and Equipment, Net | 1,078 | |
Operating Lease Assets | 1,590 | |
Trade Names | 246 | |
Deferred Income Taxes | 11 | |
Other Assets | 56 | |
Other Assets of Discontinued Operations | 2,981 | |
Accounts Payable | 338 | |
Accrued Expenses and Other | 730 | |
Current Operating Lease Liabilities | 421 | |
Income Taxes | 9 | |
Current Liabilities of Discontinued Operations | 1,498 | |
Deferred Income Taxes | 93 | |
Long-term Operating Lease Liabilities | 1,553 | |
Other Long-term Liabilities | 21 | |
Other Long-term Liabilities of Discontinued Operations | $ 1,667 |
Discontinued Operations - Sch_3
Discontinued Operations - Schedule of Cash Flow Statement (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | ||
Income Tax Disclosure | ||||
Share-based Compensation Expense | [1] | $ 46 | $ 50 | $ 87 |
Deferred Income Taxes | [1] | 45 | 33 | (29) |
Impairment of Victoria's Secret Goodwill | [1] | 0 | 0 | 720 |
Gain from Victoria's Secret Hong Kong Store Closure and Lease Termination | [1] | 0 | (39) | 0 |
Gain Related to Formation of Victoria's Secret U.K. Joint Venture | [1] | 0 | (54) | 0 |
Net Borrowings from (Repayments of) Victoria's Secret Foreign Facilities | [1] | 0 | (155) | 5 |
Victoria's Secret | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | ||||
Income Tax Disclosure | ||||
Depreciation of Long-Lived Assets | 158 | 326 | 411 | |
Share-based Compensation Expense | 15 | 25 | 38 | |
Deferred Income Taxes | 3 | 16 | (40) | |
Impairment of Victoria's Secret Goodwill | 0 | 0 | 720 | |
Victoria's Secret Asset Impairment Charges | 0 | 254 | 263 | |
Gain from Victoria's Secret Hong Kong Store Closure and Lease Termination | 0 | (39) | 0 | |
Gain Related to Formation of Victoria's Secret U.K. Joint Venture | 0 | (54) | 0 | |
Capital Expenditures | (66) | (127) | (225) | |
Net Borrowings from (Repayments of) Victoria's Secret Foreign Facilities | $ 0 | $ (155) | $ 5 | |
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 29, 2022 | Oct. 30, 2021 | Jul. 31, 2021 | May 01, 2021 | Jan. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Accounts receivable, net from revenue-generating activities | $ 64 | $ 51 | $ 64 | $ 51 | |||||||
Deferred revenue | 148 | 115 | 148 | 115 | |||||||
Revenue recognized | 76 | ||||||||||
Net sale | $ 3,027 | $ 1,681 | $ 1,704 | $ 1,470 | $ 2,719 | $ 1,702 | $ 1,253 | $ 760 | $ 7,882 | 6,434 | $ 5,405 |
Maximum | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Account receivable, payment term | 75 days | ||||||||||
Minimum | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Account receivable, payment term | 45 days | ||||||||||
Outside of the U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sale | $ 626 | $ 471 | $ 497 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 29, 2022 | Oct. 30, 2021 | Jul. 31, 2021 | May 01, 2021 | Jan. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 3,027 | $ 1,681 | $ 1,704 | $ 1,470 | $ 2,719 | $ 1,702 | $ 1,253 | $ 760 | $ 7,882 | $ 6,434 | $ 5,405 |
Stores - U.S. and Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 5,709 | 4,207 | 4,212 | ||||||||
Direct - U.S. and Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 1,890 | 2,003 | 958 | ||||||||
Bath & Body Works International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 283 | 224 | 185 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 0 | $ 0 | $ 50 |
Earnings (Loss) Per Share - Sha
Earnings (Loss) Per Share - Shares Utilized for the Calculation of Basic and Diluted Earnings per Share (Details) - shares shares in Millions | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Weighted-average Common Shares: | |||
Common Shares (in shares) | 282 | 286 | 284 |
Treasury Shares (in shares) | (13) | (8) | (8) |
Basic Shares (in shares) | 269 | 278 | 276 |
Effect of Dilutive Options and Restricted Stock (in shares) | 4 | 3 | 2 |
Diluted Shares (in shares) | 273 | 281 | 278 |
Anti-dilutive Options and Awards (in shares) | 1 | 5 | 6 |
Restructuring Activities (Detai
Restructuring Activities (Details) $ in Millions | 3 Months Ended |
Aug. 01, 2020USD ($) | |
General and Administrative Expense | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | $ 30 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jan. 29, 2022 | Jan. 30, 2021 |
Inventory, Net [Abstract] | ||
Finished Goods Merchandise | $ 521 | $ 410 |
Raw Materials and Merchandise Components | 188 | 162 |
Total Inventories | $ 709 | $ 572 |
Long-Lived Assets - Details of
Long-Lived Assets - Details of Property and Equipment, Net (Details) - USD ($) $ in Millions | Jan. 29, 2022 | Jan. 30, 2021 |
Property, Plant and Equipment [Abstract] | ||
Land and Improvements | $ 89 | $ 89 |
Buildings and Improvements | 301 | 310 |
Furniture, Fixtures, Software and Equipment | 1,408 | 1,309 |
Leasehold Improvements | 722 | 689 |
Construction in Progress | 63 | 15 |
Total | 2,583 | 2,412 |
Accumulated Depreciation and Amortization | (1,574) | (1,395) |
Property and Equipment, Net | $ 1,009 | $ 1,017 |
Long-Lived Assets - Narrative (
Long-Lived Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Depreciation of long-lived assets | [1] | $ 363 | $ 521 | $ 588 |
Continuing Operations | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Depreciation of long-lived assets | 205 | 195 | $ 177 | |
International | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Long-lived assets | $ 116 | $ 113 | ||
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Leases [Abstract] | |||
Operating Lease Costs | $ 216 | $ 223 | $ 207 |
Variable Lease Costs | 108 | 59 | 52 |
Short-term Lease Costs | 34 | 29 | 22 |
Total Lease Cost | $ 358 | $ 311 | $ 281 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Jan. 29, 2022 | |
Leases [Abstract] | ||
Decreased rent due to executed amendment | $ 21 | |
Additional operating lease commitments not yet commenced | $ 37 |
Leases - Lease Maturities (Deta
Leases - Lease Maturities (Details) $ in Millions | Jan. 29, 2022USD ($) |
Leases [Abstract] | |
2022 | $ 228 |
2023 | 213 |
2024 | 203 |
2025 | 191 |
2026 | 170 |
Thereafter | 382 |
Total Lease Payments | 1,387 |
Less: Interest | (228) |
Present Value of Operating Lease Liabilities | $ 1,159 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Jan. 29, 2022 | Jan. 30, 2021 |
Leases [Abstract] | ||
Weighted Average Remaining Lease Term (years) | 6 years 10 months 24 days | 7 years |
Weighted Average Discount Rate | 5.40% | 5.80% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Leases [Abstract] | |||
Cash paid for Operating Lease Liabilities | $ 245 | $ 172 | $ 197 |
Lease Assets obtained as a result of new Lease Liabilities | $ 209 | $ 204 | $ 199 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | Jan. 29, 2022 | Jan. 30, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 628 | $ 628 |
Trade Name | $ 165 | $ 165 |
Equity Investments (Details)
Equity Investments (Details) - USD ($) $ in Millions | Jan. 29, 2022 | Jan. 30, 2021 |
Easton Investment | ||
Equity method investment carrying value | $ 126 | $ 119 |
Accrued Expenses and Other (Det
Accrued Expenses and Other (Details) - USD ($) $ in Millions | Jan. 29, 2022 | Jan. 30, 2021 |
Accrued Liabilities, Current [Abstract] | ||
Deferred Revenue, Principally from Gift Card Sales | $ 148 | $ 115 |
Compensation, Payroll Taxes and Benefits | 142 | 181 |
Supplemental Retirement Plan | 0 | 100 |
Interest | 75 | 94 |
Taxes, Other than Income | 39 | 53 |
Rent | 47 | 25 |
Accrued Claims on Self-insured Activities | 38 | 39 |
Other | 162 | 120 |
Total Accrued Expenses and Other | $ 651 | $ 727 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Operating Loss Carryforwards [Line Items] | |||
Pre-tax income (loss), non-US, arising principally from overseas operations | $ 110 | $ 67 | $ 29 |
Operating loss carryforwards | 405 | ||
Income tax payments | 487 | 200 | 228 |
Unrecognized tax benefits resulting in reduction of effective income tax rate | 132 | 142 | 81 |
Unrecognized tax benefits reasonably possible change in the next twelve months | 104 | ||
Interest and penalties related to unrecognized tax benefits of income tax expense | 2 | 3 | $ 1 |
Income tax penalties and interest accrued | 8 | $ 10 | |
Operating Loss Carryforwards Expiration Year, Unlimited | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 248 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Current: | |||
U.S. Federal | $ 249 | $ 178 | $ 116 |
U.S. State | 53 | 52 | 16 |
Non-U.S. | 4 | 10 | 5 |
Total | 306 | 240 | 137 |
Deferred: | |||
U.S. Federal | 24 | 6 | 11 |
U.S. State | 10 | 5 | 4 |
Non-U.S. | 8 | 6 | (4) |
Total | 42 | 17 | 11 |
Provision for Income Taxes | $ 348 | $ 257 | $ 148 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Statutory Federal Income Tax Rate and the Effective Tax Rate (Details) | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal Income Tax Rate | 21.00% | 21.00% | 21.00% |
State Income Taxes, Net of Federal Income Tax Effect | 4.20% | 4.90% | 5.00% |
Impact of Non-U.S. Operations | 0.10% | 0.50% | (0.20%) |
Share-based Compensation | (0.70%) | 0.70% | 1.30% |
Uncertain Tax Positions | (0.50%) | (4.90%) | (3.70%) |
Other Items, Net | 0.40% | 0.70% | 0.90% |
Effective Tax Rate | 24.50% | 22.90% | 24.30% |
Income Taxes - Effect of Tempor
Income Taxes - Effect of Temporary Differences that Cause Deferred Income Taxes (Details) - USD ($) $ in Millions | Jan. 29, 2022 | Jan. 30, 2021 |
Deferred Tax Asset and Liability [Line Items] | ||
Deferred tax liabilities, gross, noncurrent | $ (472) | $ (483) |
Liabilities | (112) | (83) |
Deferred tax assets, net of valuation allowance | 360 | 400 |
Loss Carryforwards | ||
Deferred Tax Asset and Liability [Line Items] | ||
Assets | 405 | 403 |
Deferred tax liabilities, gross, noncurrent | 0 | 0 |
Deferred tax assets, net | 405 | 403 |
Non-qualified Retirement Plan | ||
Deferred Tax Asset and Liability [Line Items] | ||
Assets | 0 | 22 |
Deferred tax liabilities, gross, noncurrent | 0 | (2) |
Deferred tax assets, net | 20 | |
Liabilities | 0 | |
Leases | ||
Deferred Tax Asset and Liability [Line Items] | ||
Assets | 264 | 259 |
Deferred tax liabilities, gross, noncurrent | (251) | (247) |
Deferred tax assets, net | 13 | 12 |
Share-based Compensation | ||
Deferred Tax Asset and Liability [Line Items] | ||
Assets | 8 | 17 |
Deferred tax liabilities, gross, noncurrent | 0 | 0 |
Deferred tax assets, net | 8 | 17 |
Property and Equipment | ||
Deferred Tax Asset and Liability [Line Items] | ||
Assets | 0 | 4 |
Deferred tax liabilities, gross, noncurrent | (105) | (122) |
Liabilities | (105) | (118) |
Trade Names | ||
Deferred Tax Asset and Liability [Line Items] | ||
Assets | 0 | 0 |
Deferred tax liabilities, gross, noncurrent | (38) | (38) |
Liabilities | (38) | (38) |
Other Assets | ||
Deferred Tax Asset and Liability [Line Items] | ||
Assets | 0 | 0 |
Deferred tax liabilities, gross, noncurrent | (62) | (60) |
Liabilities | (62) | (60) |
Other, Net | ||
Deferred Tax Asset and Liability [Line Items] | ||
Assets | 46 | 45 |
Deferred tax liabilities, gross, noncurrent | (16) | (14) |
Deferred tax assets, net | 30 | 31 |
Valuation Allowance | ||
Deferred Tax Asset and Liability [Line Items] | ||
Deferred tax liabilities, gross, noncurrent | 0 | 0 |
Deferred tax assets, valuation allowance | $ (363) | $ (350) |
Income Taxes - Activity Related
Income Taxes - Activity Related to its Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year | $ 152 | $ 88 | $ 114 |
Increases to Unrecognized Tax Benefits for Prior Years | 5 | 7 | 15 |
Decreases to Unrecognized Tax Benefits for Prior Years | (12) | (50) | (22) |
Increases to Unrecognized Tax Benefits as a Result of Current Year Activity | 21 | 113 | 3 |
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities | (3) | 0 | (16) |
Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations | (16) | (6) | (6) |
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year | $ 147 | $ 152 | $ 88 |
Long-term Debt and Borrowing _3
Long-term Debt and Borrowing Facilities - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Millions | Jan. 29, 2022 | Jan. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 4,854 | $ 6,366 | ||
With Subsidiary Guarantee | $750 million, 6.875% Fixed Interest Rate Secured Notes due July 2025 ("2025 Secured Notes") | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 0 | 740 | ||
Debt instrument, face amount | $ 750 | $ 750 | ||
Interest rate | 6.875% | 6.875% | ||
With Subsidiary Guarantee | $1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | 284 | ||
Debt instrument, face amount | $ 1,000 | |||
Interest rate | 5.625% | |||
With Subsidiary Guarantee | $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | 319 | ||
Debt instrument, face amount | $ 500 | |||
Interest rate | 5.625% | |||
With Subsidiary Guarantee | $320 million, 9.375% Fixed Interest Rate Notes due July 2025 ("2025 Notes") | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 316 | 493 | ||
Debt instrument, face amount | $ 320 | $ 500 | ||
Interest rate | 9.375% | 9.375% | ||
With Subsidiary Guarantee | $297 million, 6.694% Fixed Interest Rate Notes due January 2027 ("2027 Notes") | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 281 | 278 | ||
Debt instrument, face amount | $ 297 | |||
Interest rate | 6.694% | |||
With Subsidiary Guarantee | $500 million, 5.25% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 497 | 497 | ||
Debt instrument, face amount | $ 500 | |||
Interest rate | 5.25% | |||
With Subsidiary Guarantee | $500 million, 7.50% Fixed Interest Rate Notes due June 2029 ("2029 Notes") | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 489 | 488 | ||
Debt instrument, face amount | $ 500 | |||
Interest rate | 7.50% | |||
With Subsidiary Guarantee | $1 billion, 6.625% Fixed Interest Rate Notes due October 2030 ("2030 Notes") | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 990 | 988 | ||
Debt instrument, face amount | $ 1,000 | |||
Interest rate | 6.625% | |||
With Subsidiary Guarantee | $1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 992 | 991 | ||
Debt instrument, face amount | $ 1,000 | |||
Interest rate | 6.875% | |||
With Subsidiary Guarantee | $700 million, 6.75% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 694 | 694 | ||
Debt instrument, face amount | $ 700 | |||
Interest rate | 6.75% | |||
With Subsidiary Guarantee | Senior Debt Obligations | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 4,259 | 5,032 | ||
Without Subsidiary Guarantee | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 595 | 594 | ||
Without Subsidiary Guarantee | $350 million, 6.95% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 349 | 348 | ||
Debt instrument, face amount | $ 350 | |||
Interest rate | 6.95% | |||
Without Subsidiary Guarantee | $247 million, 7.60% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 246 | $ 246 | ||
Debt instrument, face amount | $ 247 | |||
Interest rate | 7.60% |
Long-term Debt and Borrowing _4
Long-term Debt and Borrowing Facilities - Schedule of Principal Payments on Long-term Debt (Details) $ in Millions | Jan. 29, 2022USD ($) |
Long-term Debt, by Current and Noncurrent [Abstract] | |
2022 | $ 0 |
2023 | 0 |
2024 | 0 |
2025 | 320 |
2026 | 297 |
Thereafter | $ 4,298 |
Long-term Debt and Borrowing _5
Long-term Debt and Borrowing Facilities - Issuance and Repurchase of Notes (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||
Oct. 30, 2021 | Oct. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Jul. 31, 2019 | Jun. 30, 2019 | Oct. 30, 2021 | May 01, 2021 | Oct. 31, 2020 | Aug. 03, 2019 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | Sep. 30, 2021 | Apr. 30, 2021 | ||||
Debt Instrument [Line Items] | ||||||||||||||||||
Interest paid, including capitalized interest, operating and investing activities | $ 354 | $ 415 | $ 357 | |||||||||||||||
Repayments of long-term debt | $ 130 | $ 669 | 1,716 | [1] | 1,307 | [1] | 799 | [1] | ||||||||||
Loss on extinguishment of debt | $ 53 | $ 40 | 195 | [1] | $ 53 | [1] | $ 40 | [1] | ||||||||||
Extinguishment of debt, gain (loss), net of tax | 40 | $ 30 | ||||||||||||||||
$247 million, 7.60% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, repurchased face amount | $ 53 | 53 | ||||||||||||||||
2022 Notes, 2023 Notes and 2037 Notes | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, repurchase amount | 844 | 844 | ||||||||||||||||
With Subsidiary Guarantee | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Loss on extinguishment of debt | $ 89 | $ 105 | ||||||||||||||||
Extinguishment of debt, gain (loss), net of tax | $ 68 | $ 80 | ||||||||||||||||
With Subsidiary Guarantee | $1 billion, 6.625% Fixed Interest Rate Notes due October 2030 ("2030 Notes") | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | $ 1,000 | |||||||||||||||||
Interest rate | 6.625% | |||||||||||||||||
Proceeds from issuance of debt | $ 988 | |||||||||||||||||
Issuance cost | $ 12 | |||||||||||||||||
With Subsidiary Guarantee | $750 million, 6.875% Fixed Interest Rate Secured Notes due July 2025 ("2025 Secured Notes") | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | $ 750 | $ 750 | ||||||||||||||||
Interest rate | 6.875% | 6.875% | ||||||||||||||||
Proceeds from issuance of debt | $ 738 | |||||||||||||||||
Issuance cost | 12 | |||||||||||||||||
Debt instrument, repurchased face amount | $ 750 | |||||||||||||||||
With Subsidiary Guarantee | $320 million, 9.375% Fixed Interest Rate Notes due July 2025 ("2025 Notes") | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | $ 500 | $ 320 | ||||||||||||||||
Interest rate | 9.375% | 9.375% | ||||||||||||||||
Proceeds from issuance of debt | $ 492 | |||||||||||||||||
Issuance cost | $ 8 | |||||||||||||||||
Debt instrument, repurchased face amount | $ 180 | |||||||||||||||||
With Subsidiary Guarantee | $500 million, 7.50% Fixed Interest Rate Notes due June 2029 ("2029 Notes") | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | $ 500 | |||||||||||||||||
Interest rate | 7.50% | |||||||||||||||||
With Subsidiary Guarantee | $1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | $ 1,000 | |||||||||||||||||
Interest rate | 5.625% | |||||||||||||||||
Debt instrument, repurchased face amount | 576 | 576 | $ 285 | |||||||||||||||
Extinguishment of debt, amount | 96 | |||||||||||||||||
With Subsidiary Guarantee | $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, face amount | $ 500 | |||||||||||||||||
Interest rate | 5.625% | |||||||||||||||||
Debt instrument, repurchased face amount | 180 | $ 180 | 270 | |||||||||||||||
Extinguishment of debt, amount | $ 50 | |||||||||||||||||
Repayments of long-term debt | $ 54 | |||||||||||||||||
With Subsidiary Guarantee | $1 billion, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”) | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Extinguishment of debt, amount | 450 | 330 | ||||||||||||||||
Repayments of long-term debt | $ 463 | |||||||||||||||||
With Subsidiary Guarantee | Fixed Rate 7.00% Notes due May 2020 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Extinguishment of debt, amount | $ 126 | $ 212 | ||||||||||||||||
With Subsidiary Guarantee | 2023 Notes and 2025 Notes | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, repurchase amount | $ 532 | |||||||||||||||||
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
Long-term Debt and Borrowing _6
Long-term Debt and Borrowing Facilities - Revolving Facility and Letters of Credit Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Aug. 31, 2021USD ($) | Jan. 29, 2022USD ($) | Jan. 29, 2022USD ($) | |
Revolving Credit Facility | Revolving Credit Expiring August 2024 | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 950 | $ 950 | |
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | ||
Line of credit facility, commitment fee percentage | 1.25% | ||
Revolving Credit Facility | Revolving Credit Expiring August 2024 | London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Revolving Credit Facility | Revolving Credit Expiring August 2024 | Canadian Dollar Offered Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Revolving Credit Facility | Revolving Credit Facility Expiring August 2026 | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 750 | ||
Line of credit facility, interest rate reduction | 0.0050 | ||
Line of credit financial covenant, consolidated cash balance | $ 350 | ||
Line of credit, current borrowing base | $ 495 | 495 | |
Line of credit facility, remaining borrowing capacity | $ 479 | $ 479 | |
Line of credit financial covenant, fixed charge coverage ratio | 1 | ||
Line of credit financial covenant, maximum borrowing amount | $ 70 | ||
Line of credit financial covenant, percentage of maximum borrowing amount | 0.10 | 0.10 | |
Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Letters of credit outstanding, amount | $ 16 | $ 16 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value of Long-Term Debt, Disclosure (Details) - USD ($) $ in Millions | Jan. 29, 2022 | Jan. 30, 2021 |
Reported Value Measurement | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt instrument, fair value | $ 4,915 | $ 6,449 |
Estimate of Fair Value Measurement | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt instrument, fair value | $ 5,493 | $ 7,243 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | $ 83 | $ 52 | |
Other Comprehensive Income (Loss) Before Reclassifications | 3 | (5) | |
Amounts Reclassified from Accumulated Other Comprehensive Income | 3 | 36 | |
Tax Effect | (1) | 0 | |
Total Other Comprehensive Income (Loss), Net of Tax | 5 | 31 | $ (7) |
Victoria's Secret Spin-Off | (8) | ||
Accumulated Other Comprehensive Income (Loss), Ending Balance | 80 | 83 | 52 |
Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | 85 | 52 | |
Other Comprehensive Income (Loss) Before Reclassifications | 2 | (3) | |
Amounts Reclassified from Accumulated Other Comprehensive Income | 0 | 36 | |
Tax Effect | 0 | 0 | |
Total Other Comprehensive Income (Loss), Net of Tax | 2 | 33 | |
Victoria's Secret Spin-Off | (8) | ||
Accumulated Other Comprehensive Income (Loss), Ending Balance | 79 | 85 | 52 |
Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | (2) | 0 | |
Other Comprehensive Income (Loss) Before Reclassifications | 1 | (2) | |
Amounts Reclassified from Accumulated Other Comprehensive Income | 3 | 0 | |
Tax Effect | (1) | 0 | |
Total Other Comprehensive Income (Loss), Net of Tax | 3 | (2) | |
Victoria's Secret Spin-Off | 0 | ||
Accumulated Other Comprehensive Income (Loss), Ending Balance | $ 1 | $ (2) | $ 0 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 29, 2022 | Jan. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts Reclassified from Accumulated Other Comprehensive Income | $ 3 | $ 36 |
Victoria's Secret | Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts Reclassified from Accumulated Other Comprehensive Income | $ 36 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Aug. 02, 2021 | Jan. 29, 2022 |
LaSenza | Lease Agreements | ||
Loss Contingencies [Line Items] | ||
Lease guarantees remaining after disposition of certain businesses | $ 25 | |
Lease Agreements | Victoria's Secret | ||
Loss Contingencies [Line Items] | ||
Lease guarantees remaining after disposition of certain businesses | $ 265 | |
Management And Governance Investment | ||
Loss Contingencies [Line Items] | ||
Other Commitment | $ 45 | |
Investment commitment, period | 5 years |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2021 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined contribution plan, cost | $ 38 | $ 37 | $ 36 | |
Supplemental Employee Retirement Plan | Nonqualified Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined contribution plan, payment for settlement | $ 143 |
Shareholders' Equity (Deficit_2
Shareholders' Equity (Deficit) - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Feb. 04, 2022 | Feb. 28, 2022 | Jul. 31, 2021 | Mar. 18, 2022 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2022 | May 31, 2021 | Mar. 31, 2021 |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Repurchase of Common Stock | $ 1,964 | |||||||||
Stock retired | $ 0 | |||||||||
Dividends payable, amount per share (in USD per share) | $ 0.60 | |||||||||
Dividends declared (in USD per share) | $ 0.45 | $ 0.30 | $ 1.20 | |||||||
Subsequent Event | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Dividends declared (in USD per share) | $ 0.20 | |||||||||
Par Value | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock retired | $ 11 | |||||||||
Paid-In Capital | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock retired | 69 | |||||||||
Retained Earnings (Accumulated Deficit) | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock retired | 1,420 | |||||||||
March 2021 Repurchase Program | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock repurchase program, authorized amount | $ 500 | |||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 36 | |||||||||
Repurchase of Common Stock (in shares) | 6,996 | |||||||||
Repurchase of Common Stock | $ 464 | |||||||||
July 2021 Repurchase Program | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock repurchase program, authorized amount | $ 1,500 | $ 1,500 | ||||||||
Repurchase of Common Stock (in shares) | 10,000 | |||||||||
Repurchase of Common Stock | $ 730 | |||||||||
Stock retired (in shares) | 21,000 | |||||||||
March 2018 Repurchase Program | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 79 | |||||||||
Share Repurchase 10b5-1 Plan | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock repurchase program, authorized amount | $ 250 | $ 250 | ||||||||
February 2022 Repurchase Program | Subsequent Event | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock repurchase program, authorized amount | $ 1,500 | |||||||||
Repurchase of Common Stock (in shares) | 1,900 | |||||||||
Repurchase of Common Stock | $ 92 | |||||||||
February 2022 Repurchase Program, Accelerated Share Repurchase Program | Subsequent Event | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock repurchase program, authorized amount | $ 1,000 | |||||||||
Repurchase of Common Stock (in shares) | 14,000 | |||||||||
Repurchase of Common Stock | $ 1,000 |
Shareholders' Equity (Deficit_3
Shareholders' Equity (Deficit) - Schedule of Repurchase of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended |
Jul. 31, 2021 | Jan. 29, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||
Repurchase of Common Stock | $ 1,964 | |
March 2021 | ||
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchase program, authorized amount | $ 500 | |
Repurchase of Common Stock (in shares) | 6,996 | |
Repurchase of Common Stock | $ 464 | |
Average Stock Price of Shares Repurchased within Program | $ 66.30 | |
July 2021 | ||
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchase program, authorized amount | $ 1,500 | $ 1,500 |
Repurchase of Common Stock (in shares) | 10,000 | |
Repurchase of Common Stock | $ 730 | |
July 2021 Repurchase Program, Prior to Spin-off of Victoria's Secret & Co. | ||
Equity, Class of Treasury Stock [Line Items] | ||
Repurchase of Common Stock (in shares) | 10,000 | |
Repurchase of Common Stock | $ 730 | |
Average Stock Price of Shares Repurchased within Program | $ 73.01 | |
July 2021 Repurchase Program, after Spin-off of Victoria's Secret & Co. | ||
Equity, Class of Treasury Stock [Line Items] | ||
Repurchase of Common Stock (in shares) | 11,234 | |
Repurchase of Common Stock | $ 770 | |
Average Stock Price of Shares Repurchased within Program | $ 68.53 |
Shareholders' Equity (Deficit_4
Shareholders' Equity (Deficit) - Dividends Paid (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jan. 29, 2022 | Oct. 30, 2021 | Jul. 31, 2021 | May 01, 2021 | Jan. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | ||||
Shareholders’ Equity [Abstract] | ||||||||||||||||||
Ordinary dividends (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.45 | $ 0.30 | $ 1.20 | |||
Payments of dividends | $ 39 | $ 39 | $ 42 | $ 0 | $ 0 | $ 0 | $ 0 | $ 83 | $ 83 | $ 83 | $ 83 | $ 83 | $ 120 | [1] | $ 83 | [1] | $ 332 | [1] |
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
Share-based Compensation (Narra
Share-based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, restricted and unrestricted shares authorized (in shares) | 206,000 | ||
Options and shares available for grant (in shares) | 13,000 | ||
Tax benefit (expense) associated with share based compensation | $ 10 | $ (8) | $ (8) |
Share-based compensation, option, cost not yet recognized | 3 | ||
Share-based payment arrangement, exercise of option, tax benefit | $ 8 | ||
Options, outstanding (in shares) | 1,113 | 4,163 | |
Options, outstanding, intrinsic value | $ 15 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost, weighted-average period of recognition, years | 2 years 1 month 6 days | ||
Total intrinsic value of options exercised | $ 39 | ||
Restricted Stock and Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefit (expense) associated with share based compensation | 36 | $ 8 | $ 10 |
Total unrecognized compensation cost related to unvested restricted stock, net of estimated forfeitures | $ 37 | ||
Total unrecognized compensation cost, weighted-average period of recognition, years | 1 year 8 months 12 days | ||
Share-based compensation, weighted average grant date fair value (in dollars per share) | $ 52.91 | $ 17.05 | $ 23.34 |
Total intrinsic value of restricted stock vested | $ 137 | $ 33 | $ 39 |
Total fair value at grant date of awards vested | $ 75 | $ 89 | $ 104 |
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, award vesting period | 3 years | ||
Minimum | Stock Options and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, award vesting period | 3 years | ||
Maximum | Stock Options and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, award vesting period | 5 years | ||
Maximum | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, award expiration period | 10 years |
Share-based Compensation - Shar
Share-based Compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 31 | $ 25 | $ 49 |
Costs of Goods Sold, Buying and Occupancy | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 10 | 9 | 14 |
General, Administrative and Store Operating Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 21 | $ 16 | $ 35 |
Share-based Compensation - Rest
Share-based Compensation - Restricted Stock and Performance Share Units (Details) - Restricted Stock and Performance Share Units - $ / shares shares in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Unvested as of Beginning of Period (in shares) | 6,647 | ||
Converted to Victoria's Secret & Co. Shares (in shares) | (2,537) | ||
Spin-Off Related Adjustment (in shares) | 807 | ||
Granted (in shares) | 1,537 | ||
Vested (in shares) | (2,185) | ||
Cancelled (in shares) | (170) | ||
Unvested as of End of Period (in shares) | 4,099 | 6,647 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Unvested as of Beginning of Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 25.68 | ||
Converted to Victoria's Secret & Co. Shares, Weighted Average Grant Date Fair Value (in dollars per share) | 35.19 | ||
Spin-Off Related Adjustment, Weighted Average Grant Date Fair Value (in dollars per share) | 0 | ||
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | 52.91 | $ 17.05 | $ 23.34 |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | 37.21 | ||
Cancelled, Weighted Average Grant Date Fair Value (in dollars per share) | 33.46 | ||
Unvested as of End of Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 22.92 | $ 25.68 |
Share-based Compensation - Stoc
Share-based Compensation - Stock Option Activity (Details) shares in Thousands | 12 Months Ended |
Jan. 29, 2022shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding as of Beginning of Period (in shares) | 4,163 |
Converted to Victoria's Secret & Co. Shares (in shares) | (1,042) |
Spin-Off Related Adjustment (in shares) | 288 |
Granted (in shares) | 228 |
Exercised (in shares) | (1,900) |
Cancelled (in shares) | (624) |
Outstanding as of End of Period (in shares) | 1,113 |
Options Exercisable as of End of Period (in shares) | 859 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Summarized Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Jan. 29, 2022 | Oct. 30, 2021 | Jul. 31, 2021 | May 01, 2021 | Jan. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | ||||
Quarterly Financial Data [Abstract] | ||||||||||||||
Net Sales | $ 3,027 | $ 1,681 | $ 1,704 | $ 1,470 | $ 2,719 | $ 1,702 | $ 1,253 | $ 760 | $ 7,882 | $ 6,434 | $ 5,405 | |||
Gross Profit | 1,446 | 839 | 828 | 742 | 1,407 | 863 | 559 | 268 | 3,855 | 3,096 | 2,387 | |||
Operating Income | 879 | 409 | 384 | 337 | 870 | 436 | 263 | 36 | 2,009 | 1,604 | 1,040 | |||
Income (Loss) from Continuing Operations Before Income Taxes | 790 | 227 | 287 | 119 | 751 | 265 | 160 | (54) | 1,423 | 1,122 | 608 | |||
Net Income (Loss) from Continuing Operations | 592 | 177 | 215 | 91 | 557 | 196 | 112 | 0 | 1,075 | 865 | 460 | |||
Income (Loss) from Discontinued Operations, Net of Tax | 2 | (89) | 159 | 186 | 302 | 135 | (161) | (297) | 258 | (21) | (826) | |||
Net Income (Loss) | $ 594 | $ 88 | $ 374 | $ 277 | $ 859 | $ 331 | $ (49) | $ (297) | $ 1,333 | [1] | $ 844 | [1] | $ (366) | [1] |
Net Income (Loss) per Basic Share | ||||||||||||||
Continuing Operations (in USD per share) | $ 2.31 | $ 0.67 | $ 0.78 | $ 0.32 | $ 2 | $ 0.70 | $ 0.40 | $ 0 | $ 4 | $ 3.11 | $ 1.66 | |||
Discontinued Operations (in USD per share) | 0.01 | (0.34) | 0.58 | 0.67 | 1.09 | 0.48 | (0.58) | (1.07) | 0.96 | (0.07) | (2.99) | |||
Total Net Income (Loss) Per Basic Share (in USD per share) | 2.31 | 0.33 | 1.36 | 0.99 | 3.08 | 1.19 | (0.18) | (1.07) | 4.96 | 3.04 | (1.33) | |||
Net Income (Loss) per Diluted Share | ||||||||||||||
Continuing Operations (in USD per share) | 2.27 | 0.66 | 0.77 | 0.32 | 1.96 | 0.69 | 0.40 | 0 | 3.94 | 3.07 | 1.65 | |||
Discontinued Operations (in USD per share) | 0.01 | (0.33) | 0.57 | 0.66 | 1.07 | 0.48 | (0.58) | (1.07) | 0.95 | (0.07) | (2.97) | |||
Total Net Income (Loss) Per Diluted Share (in USD per share) | $ 2.28 | $ 0.33 | $ 1.34 | $ 0.97 | $ 3.03 | $ 1.17 | $ (0.18) | $ (1.07) | $ 4.88 | $ 3 | $ (1.32) | |||
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
Quarterly Financial Data (Una_4
Quarterly Financial Data (Unaudited) - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 29, 2022 | Oct. 30, 2021 | May 01, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Aug. 03, 2019 | Jan. 29, 2022 | [1] | Jan. 30, 2021 | [1] | Feb. 01, 2020 | [1] | |
Debt Instrument [Line Items] | |||||||||||||
Gain (loss) on extinguishment of debt | $ (53) | $ (40) | $ (195) | $ (53) | $ (40) | ||||||||
Extinguishment of debt, gain (loss), net of tax | $ (40) | $ (30) | |||||||||||
Inventory write-down | $ 9 | ||||||||||||
Inventory write-down, net of tax | $ 7 | ||||||||||||
Tax adjustments related to certain tax matters | $ 50 | ||||||||||||
Restructuring charges, net of tax | $ 24 | ||||||||||||
With Subsidiary Guarantee | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Gain (loss) on extinguishment of debt | $ (89) | $ (105) | |||||||||||
Extinguishment of debt, gain (loss), net of tax | $ (68) | $ (80) | |||||||||||
General and Administrative Expense | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Restructuring costs | $ 30 | ||||||||||||
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Feb. 04, 2022 | Feb. 28, 2022 | Mar. 18, 2022 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | Mar. 04, 2022 | Feb. 02, 2022 | Mar. 31, 2021 |
Subsequent Event [Line Items] | |||||||||
Repurchase of common stock | $ 1,964 | ||||||||
Dividends payable, amount per share (in USD per share) | $ 0.60 | ||||||||
Dividends per share (in USD per share) | $ 0.45 | $ 0.30 | $ 1.20 | ||||||
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends per share (in USD per share) | $ 0.20 | ||||||||
Subsequent Event | Forecast | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends payable, amount per share (in USD per share) | $ 0.80 | ||||||||
Subsequent Event | February 2022 Repurchase Program | |||||||||
Subsequent Event [Line Items] | |||||||||
Stock repurchase program, authorized amount | $ 1,500 | ||||||||
Repurchase of common stock | $ 92 | ||||||||
Repurchase of common stock (in shares) | 1,900 | ||||||||
Subsequent Event | February 2022 Repurchase Program, Accelerated Share Repurchase Program | |||||||||
Subsequent Event [Line Items] | |||||||||
Stock repurchase program, authorized amount | $ 1,000 | ||||||||
Repurchase of common stock | $ 1,000 | ||||||||
Repurchase of common stock (in shares) | 14,000 | ||||||||
Shares repurchased, percentage of shares expected to be acquired | 80.00% |