Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jan. 30, 2021 | Mar. 22, 2021 | Jul. 31, 2020 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Jan. 30, 2021 | ||
Entity File Number | 1-10299 | ||
Entity Registrant Name | FOOT LOCKER, INC. | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Tax Identification Number | 13-3513936 | ||
Entity Address, Address Line One | 330 West 34th Street | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10001 | ||
City Area Code | 212 | ||
Local Phone Number | 720-3700 | ||
Title of 12(b) Security | Common Stock, par value $0.01 | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,727,775,209 | ||
Entity Common Stock, Shares Outstanding | 103,278,201 | ||
Entity Central Index Key | 0000850209 | ||
Current Fiscal Year End Date | --02-01 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Trading Symbol | FL | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Document Annual Report | true | ||
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,680 | $ 907 |
Merchandise inventories | 923 | 1,208 |
Other current assets | 232 | 271 |
Assets, current, total | 2,835 | 2,386 |
Property and equipment, net | 788 | 824 |
Operating lease right-of-use assets | 2,716 | 2,899 |
Deferred taxes | 101 | 81 |
Goodwill | 159 | 156 |
Other intangible assets, net | 17 | 20 |
Minority investments | 337 | 142 |
Other assets | 90 | 81 |
Total assets | 7,043 | 6,589 |
Current liabilities: | ||
Accounts payable | 402 | 333 |
Accrued and other liabilities | 560 | 343 |
Current portion of obligations under finance leases | 102 | |
Operating lease liabilities classified as current | 580 | 518 |
Liabilities, current, total | 1,644 | 1,194 |
Long-term debt and obligations under finance leases | 8 | 122 |
Long-term lease obligations | 2,499 | 2,678 |
Other liabilities | 116 | 122 |
Total liabilities | 4,267 | 4,116 |
Shareholders' equity: | ||
Common stock and paid-in capital: 103,693,359 and 104,187,310 shares outstanding, respectively | 779 | 764 |
Retained earnings | 2,326 | 2,103 |
Accumulated other comprehensive loss | (331) | (394) |
Less: Treasury stock at cost: 74,236 and -- shares, respectively | (3) | |
Noncontrolling interest | 5 | |
Total shareholders' equity | 2,776 | 2,473 |
Liabilities and equity, total | $ 7,043 | $ 6,589 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Jan. 30, 2021 | Feb. 01, 2020 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Common Stock, Shares Outstanding, Issued, Total | 103,693,359 | 104,187,310 |
Treasury Stock, Shares | 74,236 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
Sales | $ 7,548 | $ 8,005 | $ 7,939 |
Cost of sales | 5,365 | 5,462 | 5,411 |
Selling, general and administrative expenses | 1,587 | 1,650 | 1,614 |
Depreciation and amortization | 176 | 179 | 178 |
Impairment and other charges | 117 | 65 | 37 |
Income from operations | 303 | 649 | 699 |
Interest (expense) income, net | (7) | 11 | 9 |
Other income, net | 198 | 12 | 5 |
Income before income taxes | 494 | 672 | 713 |
Income tax expense | 171 | 181 | 172 |
Net income | $ 323 | $ 491 | $ 541 |
Basic earnings per share | $ 3.10 | $ 4.52 | $ 4.68 |
Weighted-average shares outstanding | 104.3 | 108.7 | 115.6 |
Diluted earnings per share | $ 3.08 | $ 4.50 | $ 4.66 |
Weighted-average shares outstanding, assuming dilution | 105.1 | 109.1 | 116.1 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net Income | $ 323 | $ 491 | $ 541 |
Foreign currency translation adjustment: | |||
Translation adjustment arising during the period, net of income tax expense (benefit) of $3, $(1), and $(9), respectively | 40 | (20) | (75) |
Cash flow hedges: | |||
Change in fair value of derivatives, net of income tax benefit of $-, $1, and $-, respectively | 2 | (3) | |
Pension and postretirement adjustments: | |||
Net actuarial gain (loss) and foreign currency fluctuations arising during the year, net of income tax expense (benefit) of $4, $(3), and $(8), respectively | 13 | (9) | (24) |
Amortization of net actuarial gain/loss and prior service cost included in net periodic benefit costs, net of income tax expense of $3, $3, and $3, respectively | 8 | 8 | 8 |
Comprehensive income | $ 386 | $ 467 | $ 450 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net income tax benefit on translation adjustment | $ 3 | $ (1) | $ (9) |
Change in fair value of derivatives, income tax benefit | (1) | ||
Net actuarial gain (loss) and foreign currency fluctuations arising during the year, income tax expense (benefit) | 4 | (3) | (8) |
Amortization of net actuarial gain/loss and prior service cost included in net periodic benefit costs, income tax expense | $ 3 | $ 3 | $ 3 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Additional Paid-In Capital & Common Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest [Member] | Total |
Beginning Balance at Feb. 03, 2018 | $ 842 | $ (63) | $ 2,019 | $ (279) | $ 2,519 | |
Beginning Balance (in shares) at Feb. 03, 2018 | 121,262,000 | |||||
Beginning Balance (in treasury shares) at Feb. 03, 2018 | (1,433,000) | |||||
Restricted stock issued (in shares) | 93,000 | |||||
Issued under director and stock plans | $ 6 | 6 | ||||
Issued under director and stock plans (in shares) | 175,000 | |||||
Share-based compensation expense | $ 22 | 22 | ||||
Shares of common stock used to satisfy tax withholding obligations | $ (1) | (1) | ||||
Shares of common stock used to satisfy tax withholding obligations (in shares) | (36,000) | |||||
Share repurchases | $ (375) | (375) | ||||
Share repurchases (in shares) | (7,887,000) | |||||
Reissued - employee stock purchase plan | $ 2 | 2 | ||||
Reissued - employee stock purchase plan (in shares) | 48,000 | |||||
Retirement of treasury stock | $ (61) | $ 400 | (339) | |||
Retirement of treasury stock (in shares) | (8,597,000) | 8,597,000 | ||||
Net Income | 541 | 541 | ||||
Cash dividends declared on common stock ($0.15 and $0.38 per share as of the 13 weeks ended October 31, 2020 and November 2, 2019 respectively and $0.55 and $1.14 during the 39 weeks ended October 31, 2020 and November 2, 2019 respectively) | (158) | (158) | ||||
Translation adjustment, net of tax | (75) | (75) | ||||
Pension and postretirement adjustments, net of tax | (16) | (16) | ||||
Unrealized gain on available-for-sale securities | 4 | 4 | ||||
Cumulative effect of the adoption new ASUs | Accounting Standards Update 2018-02 [Member] | 37 | 37 | ||||
Ending Balance at Feb. 02, 2019 | $ 809 | $ (37) | 2,104 | (370) | 2,506 | |
Ending Balance (in shares) at Feb. 02, 2019 | 112,933,000 | |||||
Ending Balance (in treasury shares) at Feb. 02, 2019 | (711,000) | |||||
Restricted stock issued (in shares) | 89,000 | |||||
Issued under director and stock plans | $ 3 | 3 | ||||
Issued under director and stock plans (in shares) | 187,000 | |||||
Share-based compensation expense | $ 18 | 18 | ||||
Shares of common stock used to satisfy tax withholding obligations | $ (2) | (2) | ||||
Shares of common stock used to satisfy tax withholding obligations (in shares) | (32,000) | |||||
Share repurchases | $ (335) | (335) | ||||
Share repurchases (in shares) | (8,375,000) | |||||
Reissued - employee stock purchase plan | $ 6 | 6 | ||||
Reissued - employee stock purchase plan (in shares) | 97,000 | |||||
Retirement of treasury stock | $ (66) | $ 368 | (302) | |||
Retirement of treasury stock (in shares) | (9,021,000) | 9,021,244 | ||||
Net Income | 491 | 491 | ||||
Cash dividends declared on common stock ($0.15 and $0.38 per share as of the 13 weeks ended October 31, 2020 and November 2, 2019 respectively and $0.55 and $1.14 during the 39 weeks ended October 31, 2020 and November 2, 2019 respectively) | (164) | (164) | ||||
Translation adjustment, net of tax | (20) | (20) | ||||
Change in cash flow hedges, net of tax | (3) | (3) | ||||
Pension and postretirement adjustments, net of tax | (1) | (1) | ||||
Cumulative effect of the adoption new ASUs | Accounting Standards Update 2016-16 [Member] | (26) | (26) | ||||
Ending Balance at Feb. 01, 2020 | $ 764 | 2,103 | (394) | $ 2,473 | ||
Ending Balance (in shares) at Feb. 01, 2020 | 104,188,000 | |||||
Ending Balance (in treasury shares) at Feb. 01, 2020 | 0 | |||||
Restricted stock issued (in shares) | 121,000 | |||||
Issued under director and stock plans | $ 7 | $ 7 | ||||
Issued under director and stock plans (in shares) | 297,000 | |||||
Share-based compensation expense | $ 15 | 15 | ||||
Shares of common stock used to satisfy tax withholding obligations | $ (1) | (1) | ||||
Shares of common stock used to satisfy tax withholding obligations (in shares) | (41,000) | |||||
Share repurchases | $ (37) | (37) | ||||
Share repurchases (in shares) | (969,000) | |||||
Reissued - employee stock purchase plan | $ 1 | 1 | ||||
Reissued - employee stock purchase plan (in shares) | 23,000 | |||||
Retirement of treasury stock | $ (7) | $ 34 | (27) | |||
Retirement of treasury stock (in shares) | (913,000) | 913,095 | ||||
Net Income | 323 | 323 | ||||
Cash dividends declared on common stock ($0.15 and $0.38 per share as of the 13 weeks ended October 31, 2020 and November 2, 2019 respectively and $0.55 and $1.14 during the 39 weeks ended October 31, 2020 and November 2, 2019 respectively) | (73) | (73) | ||||
Translation adjustment, net of tax | 40 | 40 | ||||
Change in cash flow hedges, net of tax | 2 | 2 | ||||
Noncontrolling interest acquired | $ 5 | 5 | ||||
Pension and postretirement adjustments, net of tax | 21 | 21 | ||||
Ending Balance at Jan. 30, 2021 | $ 779 | $ (3) | $ 2,326 | $ (331) | $ 5 | $ 2,776 |
Ending Balance (in shares) at Jan. 30, 2021 | 103,693,000 | |||||
Ending Balance (in treasury shares) at Jan. 30, 2021 | (74,000) | (74,236) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared on common stock, per share | $ 0.70 | $ 1.52 | $ 1.38 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
From operating activities: | |||
Net Income | $ 323 | $ 491 | $ 541 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Impairment charges | 97 | 48 | 19 |
Non-cash gain | (190) | (4) | |
Depreciation and amortization | 176 | 179 | 178 |
Deferred income taxes | (9) | 5 | 9 |
Share-based compensation expense | 15 | 18 | 22 |
Qualified pension plan contributions | (55) | (128) | |
Change in assets and liabilities: | |||
Merchandise inventories | 294 | 51 | (16) |
Accounts payable | 58 | (51) | 135 |
Accrued and other liabilities | 139 | (40) | 39 |
Pension litigation accrual | 13 | ||
Class counsel fees paid in connection with pension litigation | (97) | ||
Other, net | 159 | 54 | 66 |
Net cash provided by operating activities | 1,062 | 696 | 781 |
From investing activities: | |||
Capital expenditures | (159) | (187) | (187) |
Minority investments | (9) | (50) | (89) |
Proceeds from sale of property | 2 | ||
Insurance proceeds related to loss on property and equipment | 2 | ||
Net cash used in investing activities | (168) | (235) | (274) |
From financing activities: | |||
Proceeds from the revolving credit facility | 330 | ||
Repayment of the revolving credit facility | (330) | ||
Payment of long-term debt and obligations under finance leases | (23) | ||
Payment of debt issuance costs | (4) | ||
Contribution from non-controlling interest | 6 | ||
Purchase of treasury shares | (37) | (335) | (375) |
Dividends paid on common stock | (73) | (164) | (158) |
Proceeds from exercise of stock options | 4 | 5 | 5 |
Proceeds from common stock issued under employee stock plans | 2 | ||
Treasury stock reissued under employee stock plan | 3 | 2 | |
Shares of common stock repurchased to satisfy tax withholding obligations | (1) | (2) | (1) |
Net cash used in financing activities | (126) | (493) | (527) |
Effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash | 8 | (7) | (30) |
Net change in cash, cash equivalents, and restricted cash | 776 | (39) | (50) |
Cash, cash equivalents, and restricted cash at beginning of year | 942 | 981 | 1,031 |
Cash, cash equivalents, and restricted cash at end of period | 1,718 | 942 | 981 |
Cash paid during the year: | |||
Interest | 14 | 11 | 11 |
Income taxes | 100 | 201 | $ 184 |
Non-cash investing and financing activities: | |||
Cash paid for amounts included in measurement of operating lease liabilities: | 626 | 679 | |
Right-of-use assets obtained in exchange for lease obligations: | 331 | $ 322 | |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 11 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 30, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Foot Locker, Inc. and its domestic and international subsidiaries, as well as any entities in which we have a controlling voting interest that are required to be consolidated. All significant intercompany amounts have been eliminated. As used in these Notes to Consolidated Financial Statements the terms “Foot Locker,” “Company,” “we,” “our,” and “us” refer to Foot Locker, Inc. and its consolidated subsidiaries. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. COVID-19 Pandemic In March 2020, the World Health Organization designated COVID-19 a pandemic. COVID-19 had a significant effect on overall economic conditions in nearly all regions around the world and resulted in travel restrictions and business slowdowns or shutdowns. As a result of the COVID-19 pandemic, we temporarily closed our stores in North America, EMEA (Europe, Middle East, and Africa), and Asia Pacific throughout 2020 but primarily during the first and second quarters. We have been and will continue to operate in-store fulfillment activities to mitigate the effect of the temporary closures caused by COVID-19. We considered the ongoing effects of the COVID-19 pandemic on our operations, as well as the assumptions and estimates used when preparing our financial statements, including inventory valuation, income taxes, and evaluating the impairment of long-lived tangible assets and right-of-use lease assets. These assumptions and estimates may change as the current situation evolves or new events occur and additional information is obtained. If the economic conditions caused by COVID-19 worsen beyond what is currently estimated by management, such future changes may have an adverse effect on our results of operations, financial position, and liquidity. Reporting Year Our fiscal year end is a 52-week or 53-week period ending the Saturday closest to the last day in January. Fiscal year 2020, 2019, and 2018 represented the 52 weeks ended January 30, 2021, February 1, 2020, and February 2, 2019, respectively. References to years in this annual report relate to fiscal years rather than calendar years. Revenue Recognition Store revenue is recognized at the point of sale and includes merchandise, net of returns, and excludes taxes. Revenue from layaway sales is recognized when the customer receives the product, rather than when the initial deposit is paid. We recognize revenue for merchandise that is shipped to our customers from our distribution centers and stores upon shipment as the customer has control of the product upon shipment. We account for shipping and handling as a fulfillment activity. We accrue the cost and recognize revenue for these activities upon shipment date, therefore total sales recognized includes shipping and handling fees. Gift Cards We sell gift cards which do not have expiration dates. Revenue from gift card sales is recorded when the gift cards are redeemed by customers. Gift card breakage is recognized as revenue in proportion to the pattern of rights exercised by the customer, unless there is a legal obligation to remit the value of unredeemed gift cards to the relevant jurisdictions. The table below presents the activity of our gift card liability balance: ($ in millions) 2020 2019 Gift card liability at beginning of year $ 35 $ 35 Redemptions (118) (105) Breakage recognized in sales (8) (7) Activations 131 112 Foreign currency fluctuations 1 — Gift card liability at end of year $ 41 $ 35 We elected not to disclose the information about remaining performance obligations since the amount of gift cards redeemed after 12 months is not significant for both 2020 and 2019. Advertising Costs and Sales Promotion Advertising and sales promotion costs are expensed at the time the advertising or promotion takes place, net of reimbursements for cooperative advertising. Cooperative advertising reimbursements earned for the launch and promotion of certain products agreed upon with vendors are recorded in the same period as the associated expenses are incurred. Digital advertising costs are expensed as incurred, net of reimbursements for cooperative advertising. Digital advertising includes search engine marketing, such as display ads and keyword search terms, and other various forms of digital advertising. Reimbursements received in excess of expenses incurred related to specific, incremental, and identifiable advertising costs are accounted for as a reduction to the cost of merchandise and are reflected in cost of sales when the merchandise is sold. Advertising costs, including digital advertising, which are included as a component of SG&A, were as follows: ($ in millions) 2020 2019 2018 Advertising expenses (1) $ 69 $ 91 $ 111 Digital advertising expenses 89 95 96 Cooperative advertising reimbursements (14) (20) (25) Net advertising expense $ 144 $ 166 $ 182 (1) Effective with the adoption of the new lease standard in 2019, advertising costs that are required by some of our mall-based leases are recorded as an element of rent expense. These costs were $14 million for 2018. Catalog Costs Catalog costs, which are primarily comprised of paper, printing, and postage, are expensed at the time the catalogs are distributed. Cooperative reimbursements earned for the promotion of certain products are agreed upon with vendors and are recorded in the same period as the associated catalog expenses are recorded. Catalog costs, which are included as a component of SG&A, were as follows: ($ in millions) 2020 2019 2018 Catalog costs $ 7 $ 15 $ 18 Share-Based Compensation We recognize compensation expense for share-based awards based on the grant date fair value of those awards. We use the Black-Scholes option-pricing model to determine the fair value of stock options, which requires the input of subjective assumptions regarding the expected term, expected volatility, and risk-free interest rate. See Note 20, Share-Based Compensation, for information on the assumptions used to calculate the fair value of stock options. Share-based compensation expense is recognized on a straight-line basis over the requisite service period for each vesting tranche of the award. Upon exercise of stock options, issuance of restricted stock or units, or issuance of shares under the employee stock purchase plan, we will issue authorized but unissued common stock or use common stock held in treasury. Awards of restricted stock units cliff vest after the passage of time, generally three years . Performance-based restricted stock unit awards are earned on achievement of pre-established goals and with regards to certain awards, vest after an additional one-year period. Earnings Per Share We account for earnings per share (“EPS”) using the treasury stock method. Basic EPS is computed by dividing net income for the period by the weighted-average number of common shares outstanding at the end of the period. Diluted EPS reflects the weighted-average number of common shares outstanding during the period used in the basic EPS computation plus dilutive common stock equivalents. The computation of basic and diluted EPS is as follows: (in millions, except per share data) 2020 2019 2018 Net income $ 323 $ 491 $ 541 Weighted-average common shares outstanding 104.3 108.7 115.6 Dilutive effect of potential common shares 0.8 0.4 0.5 Weighted-average common shares outstanding assuming dilution 105.1 109.1 116.1 Earnings per share - basic $ 3.10 $ 4.52 $ 4.68 Earnings per share - diluted $ 3.08 $ 4.50 $ 4.66 Anti-dilutive share-based awards excluded from diluted calculation 2.5 2.2 1.9 Contingently issuable shares of 0.4 million for 2020, 0.5 million for 2019, and 0.9 million for 2018, have not been included as the vesting conditions have not been satisfied. These shares relate to restricted stock unit awards issued in connection with our long-term incentive program. Cash, Cash Equivalents, and Restricted Cash Cash consists of funds held on hand and in bank accounts. Cash equivalents include amounts on demand with banks and all highly liquid investments with original maturities of three months or less, including money market funds. Additionally, amounts due from third-party credit card processors for the settlement of debit and credit card transactions are included as cash equivalents as they are generally collected within three business days. We present book overdrafts, representing checks issued but still outstanding in excess of bank balances, as part of accounts payable. Restricted cash represents cash that is restricted as to withdrawal or use under the terms of various agreements. Restricted cash includes amounts held in escrow in connection with various leasing arrangements in Europe, and deposits held in insurance trusts to satisfy the requirement to collateralize part of the self-insured workers’ compensation and liability claims. The following table provides the reconciliation of cash, cash equivalents, and restricted cash, as reported on our consolidated statements of cash flows: January 30, February 1, February 2, ($ in millions) 2021 2020 2019 Cash and cash equivalents (1) $ 1,680 $ 907 $ 891 Restricted cash included in other current assets (2) 8 6 59 Restricted cash included in other non-current assets 30 29 31 Cash, cash equivalents, and restricted cash $ 1,718 $ 942 $ 981 (1) Includes cash equivalents of $503 million, $366 million, and $476 million for the years ended January 30, 2021, February 1, 2020, and February 2, 2019, respectively. (2) The remaining balance of the qualified settlement fund related to the pension matter of $55 million was included in the current portion of restricted cash as of February 2, 2019 and was contributed to the pension plan in 2019. Merchandise Inventories and Cost of Sales Merchandise inventories for our stores are valued at the lower of cost or market using the retail inventory method. Cost for retail stores is determined on the last-in, first-out (“LIFO”) basis for domestic inventories and on the first-in, first-out (“FIFO”) basis for international inventories. Merchandise inventories of the e-commerce business are valued at net realizable value using weighted-average cost, which approximates FIFO. The retail inventory method is used by retail companies to value inventories at cost and calculate gross margins due to its practicality. Under the retail inventory method, cost is determined by applying a cost-to-retail percentage across groupings of similar items, known as departments. The cost-to-retail percentage is applied to ending inventory at its current owned retail valuation to determine the cost of ending inventory on a department basis. We provide reserves based on current selling prices when the inventory has not been marked down to market. Transportation, distribution center, and sourcing costs are capitalized in merchandise inventories. We expense the freight associated with transfers between our store locations in the period incurred. We maintain an accrual for shrinkage based on historical rates. Cost of sales is comprised of the cost of merchandise, as well as occupancy, buyers’ compensation, and shipping and handling costs. The cost of merchandise is recorded net of amounts received from suppliers for damaged product returns, markdown allowances, and volume rebates, as well as cooperative advertising reimbursements received in excess of specific, incremental advertising expenses. Minority Investments We use the equity method to account for investments in which we have the ability to exercise significant influence over the investee’s operating and financial policies, or in which we hold a partnership or limited liability company interest in an entity with specific ownership accounts, unless we have virtually no influence over the investee’s operating and financial policies. As of January 30, 2021, and February 1, 2020, we had $15 million and $8 million, respectively, of investments which are accounted for under the equity method. Our investments that are not accounted for under the equity method are measured at cost adjusted for changes in observable prices minus impairment, under the practicability exception. As of January 30, 2021, and February 1, 2020, we had $322 million and $134 million, respectively, of investments which are accounted for under this method. Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation and amortization. Significant additions and improvements to property and equipment are capitalized. Major renewals or replacements that substantially extend the useful life of an asset are capitalized. Maintenance and repairs are expensed as incurred. Depreciation and amortization are computed on a straight-line basis over the following estimated useful lives: Buildings Maximum of 50 years Store leasehold improvements Shorter of the asset useful life or expected term of the lease Furniture, fixtures, and equipment 3 ‑ 10 years Software 2 ‑ 5 years Internal-Use Software Development Costs We capitalize certain external and internal computer software and software development costs incurred during the application development stage. The application development stage generally includes software design and configuration, coding, testing, and installation activities. Capitalized costs include only external direct cost of materials and services consumed in developing or obtaining internal-use software, and payroll and payroll-related costs for employees who are directly associated with and devote time to the internal-use software project. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended use. We generally amortize these costs on a straight-line basis over a period not to exceed five years. Training and maintenance costs are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Capitalized software, net of accumulated amortization, is included as a component of Property and equipment, net and was $93 million and $80 million at January 30, 2021 and February 1, 2020, respectively. Impairment of Long-Lived Tangible Assets and Right-of-Use Assets We perform an impairment review when circumstances indicate that the carrying value of long-lived tangible assets and right-of-use assets may not be recoverable (“a triggering event”). Our policy in determining whether a triggering event exists comprises the evaluation of measurable operating performance criteria and qualitative measures at the lowest level for which identifiable cash flows are largely independent of cash flows for other assets and liabilities, which is generally at the store level. We also evaluate triggering events at the banner level. In evaluating potential store level impairment, we compare future undiscounted cash flows expected to result from the use of the asset group to the carrying amount of the asset group. The future cash flows are estimated predominately based on our historical performance and long-range strategic plans. If the carrying amount of the asset group exceeds the estimated undiscounted future cash flows, we measure the amount of the impairment by comparing the carrying amount of the asset group with its estimated fair value. The estimation of fair value is measured by discounting expected future cash flows using a risk adjusted discount rate and using current market-based information for right-of-use assets. We estimate fair value based on the best information available using estimates, judgments, and projections as considered necessary. Leases On February 3, 2019, we adopted the new lease accounting standard. We applied the modified retrospective method of adoption and therefore, results for 2020 and 2019 are presented under the new guidance, while 2018 has not been adjusted. Lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term for those arrangements where there is an identified asset and the contract conveys the right to control its use. The lease term includes options to extend or terminate a lease only when we are reasonably certain that we will exercise that option. The right-of-use asset is measured at the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, initial direct costs, and any tenant improvement allowances received. For operating leases, right-of-use assets are reduced over the lease term by the straight-line lease expense recognized less the amount of accretion of the lease liability determined using the effective interest method. We combine lease components and non-lease components. Given our policy election to combine lease and non-lease components, we also consider fixed common area maintenance (“CAM”) part of our fixed future lease payments; therefore, fixed CAM is also included in our lease liability. We recognize rent expense for operating leases as of the possession date for store leases or the commencement of the agreement for a non-store lease. Rental expense, inclusive of rent holidays, concessions, and tenant allowances are recognized over the lease term on a straight-line basis. Contingent payments based upon sales and future increases determined by inflation related indices cannot be estimated at the inception of the lease and, accordingly, are charged to operations as incurred. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rates based on the remaining lease term to determine the present value of future lease payments. Our incremental borrowing rate for a lease is the rate of interest we would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Leases with an initial term of 12 months or less are not recorded on the balance sheet. We recognize lease expense for short-term leases on a straight-line basis over the lease term. Impairment of Goodwill and Other Intangible Assets Goodwill and intangible assets with indefinite lives are reviewed for impairment annually during the first quarter of each fiscal year or more frequently if impairment indicators arise. The review of goodwill impairment consists of either using a qualitative approach to determine whether it is more likely than not that the fair value of the assets is less than their respective carrying values or a one-step quantitative impairment test. In performing the qualitative assessment, we consider many factors in evaluating whether the carrying value of goodwill may not be recoverable, including declines in our stock price and market capitalization in relation to the book value of the Company and macroeconomic conditions affecting retail. If, based on the results of the qualitative assessment, it is concluded that it is not more likely than not that the fair value of a reporting unit exceeds its carrying value, additional quantitative impairment testing is performed. The quantitative test requires that the carrying value of each reporting unit be compared with its estimated fair value. If the carrying value of a reporting unit is greater than its fair value, a goodwill impairment charge will be recorded for the difference (up to the carrying value of goodwill). We use a discounted cash flow approach to determine the fair value of a reporting unit. The determination of discounted cash flows of the reporting units and assets and liabilities within the reporting units requires significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to, the discount rate, terminal growth rates, earnings before depreciation and amortization, and capital expenditures forecasts. Due to the inherent uncertainty involved in making these estimates, actual results could differ from those estimates. We evaluate the merits of each significant assumption, both individually and in the aggregate, used to determine the fair value of the reporting units, as well as the fair values of the corresponding assets and liabilities within the reporting units. For our 2020 annual impairment review, we concluded the fair value of each reporting unit exceeded its carrying value. Goodwill is net of accumulated impairment charges of $167 million for all periods presented. Intangible assets with indefinite lives are tested for impairment if impairment indicators arise and, at a minimum, annually. The impairment review for intangible assets with indefinite lives consists of either performing a qualitative or a quantitative assessment. If the results of the qualitative assessment indicate that it is more likely than not that the fair value of the indefinite-lived intangible is less than its carrying amount, or if we elect to proceed directly to a quantitative assessment, we calculate the fair value using a discounted cash flow method, based on the relief from royalty method, and compare the fair value to the carrying value to determine if the asset is impaired. Intangible assets that are determined to have finite lives are amortized over their useful lives and are measured for impairment only when events or changes in circumstances indicate that the carrying value may be impaired. Derivative Financial Instruments All derivative financial instruments are recorded in our Consolidated Balance Sheets at their fair values. For derivatives designated as a hedge, and effective as part of a hedge transaction, the effective portion of the gain or loss on the hedging derivative instrument is reported as a component of other comprehensive income/loss or as a basis adjustment to the underlying hedged item and reclassified to earnings in the period in which the hedged item affects earnings. The effective portion of the gain or loss on hedges of foreign net investments is generally not reclassified to earnings unless the net investment is disposed of. To the extent derivatives do not qualify or are not designated as hedges, or are ineffective, their changes in fair value are recorded in earnings immediately, which may subject us to increased earnings volatility. Income Taxes We account for our income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and the tax basis of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized for tax credits and net operating loss carryforwards, reduced by a valuation allowance, which is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize net deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. A taxing authority may challenge positions that we adopted in our income tax filings. Accordingly, we may apply different tax treatments for transactions in filing our income tax returns than for income tax financial reporting. We regularly assess our tax positions for such transactions and record reserves for those differences when considered necessary. Tax positions are recognized only when it is more likely than not, based on technical merits, that the positions will be sustained upon examination. Tax positions that meet the more-likely-than-not threshold are measured using a probability weighted approach as the largest amount of tax benefit that is greater than fifty percent likely of being realized upon settlement. Whether the more-likely-than-not recognition threshold is met for a tax position is a matter of judgment based on the individual facts and circumstances of that position evaluated in light of all available evidence. We recognize interest and penalties related to unrecognized tax benefits within income tax expense in the accompanying Consolidated Statement of Operations. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheet. Pension and Postretirement Obligations Pension benefit obligations and net periodic pension costs are calculated using actuarial assumptions. Two key assumptions used in accounting for pension liabilities and expenses are the discount rate and expected rate of return on plan assets. The discount rate for the U.S. plans is determined by reference to the Bond:Link interest rate model based upon a portfolio of highly-rated U.S. corporate bonds with individual bonds that are theoretically purchased to settle the plan’s anticipated cash outflows. The cash flows are discounted to their present value and an overall discount rate is determined. The discount rate selected to measure the present value of the Canadian benefit obligations was developed by using that plan’s bond portfolio indices, which match the benefit obligations. We measure our plan assets and benefit obligations using the month-end date that is closest to our fiscal year end. The expected return on plan assets assumption is derived using the current and expected asset allocation of the pension plan assets and considering historical as well as expected performance of those assets. Insurance Liabilities We are primarily self-insured for health care, workers’ compensation, and general liability costs. Accordingly, provisions are made for actuarially determined estimates of discounted future claim costs for such risks, for the aggregate of claims reported, and claims incurred but not yet reported. Self-insured liabilities totaled $13 million and $12 million for January 30, 2021 and February 1, 2020, respectively. Workers’ compensation and general liability reserves are discounted using a risk-free interest rate. Imputed interest expense related to these liabilities was not significant for any of the periods presented. Treasury Stock Retirement We periodically retire treasury shares that we acquire through share repurchases and return those shares to the status of authorized but unissued. We account for treasury stock transactions under the cost method. For each reacquisition of common stock, the number of shares and the acquisition price for those shares is added to the existing treasury stock count and total value. When treasury shares are retired, our policy is to allocate the excess of the repurchase price over the par value of shares acquired to both retained earnings and additional paid-in capital. The portion allocated to additional paid-in capital is determined by applying a percentage, which is determined by dividing the number of shares to be retired by the number of shares issued, to the balance of additional paid-in capital as of the retirement date. We retired 913,095 and 9,021,244 shares of our common stock held in treasury during 2020 and 2019, respectively. The shares were returned to the status of authorized but unissued. As a result, treasury stock decreased by $34 million and $368 million as of January 30, 2021 and February 1, 2020, respectively. Foreign Currency Translation The functional currency of our international operations is the applicable local currency. The translation of the applicable foreign currency into U.S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for revenue and expense accounts using the weighted-average rates of exchange prevailing during the year. The unearned gains and losses resulting from such translation are included as a separate component of accumulated other comprehensive loss (“AOCL”) within shareholders’ equity. Recently Adopted Accounting Pronouncements On February 2, 2020, we adopted Financial Accounting Standards Board (“FASB”) guidance on the accounting for implementation costs of a cloud computing arrangement that is considered to be a service contract, that requires companies to follow the guidance for internal-use software to determine which costs to capitalize in a cloud computing arrangement that is a service contract. Under this guidance, such implementation costs will be capitalized in Other assets on the Consolidated Balance Sheet, with the related amortization presented in Selling, general and administrative expenses on the Consolidated Statement of Operations. This guidance was applied prospectively to implementation costs incurred after February 2, 2020. The adoption of this guidance did not have a significant effect on our consolidated financial statements. On February 2, 2020, we adopted FASB’s updated guidance on the accounting for performing goodwill impairment tests. This update eliminates the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. In testing goodwill for impairment, an entity may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment indicates that goodwill impairment is more likely than not, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit to its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit. In January 2021, we adopted FASB’s amended guidance that eliminates, adds, and clarifies certain disclosure requirements for defined benefit pension or other postretirement plans. The eliminated disclosures include the amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit costs over the next fiscal year and the effects of a one-percentage-point change in assumed health care cost trend rates on the aggregate of the service and interest cost components of net periodic benefit costs and the benefit obligation for postretirement health care benefits. The new disclosures require an explanation of significant gains and losses related to changes in benefit obligations. This standard is effective for fiscal years beginning after December 15, 2020 and allows for early adoption. The amendments are required to be applied retrospectively. The adoption of this guidance did not have a significant effect on our consolidated financial statements. Other recently issued accounting pronouncements did not, or are not believed by management to, have a material effect on our present or future consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted All recently issued accounting pronouncements are not expected to have a material effect on the consolidated financial statements. |
Segment Information
Segment Information | 12 Months Ended |
Jan. 30, 2021 | |
Segment Information [Abstract] | |
Segment Information | 2. Segment Information We have integrated all available shopping channels including stores, websites, apps, social channels, and catalogs. Store sales are primarily fulfilled from the store’s inventory but may also be shipped from our distribution centers or from a different store location if an item is not available at the original store. Direct-to-customer orders are generally shipped to our customers through our distribution centers but may also be shipped from a store or a combination of our distribution centers and stores depending on the availability of particular items. Our operating segments are identified according to how our business activities are managed and evaluated by our chief operating decision maker, our CEO. We have three operating segments, North America, EMEA (Europe, Middle East and Africa), and Asia Pacific. Our North America operating segment includes the results of the following banners operating in the U.S. and Canada: Foot Locker, Kids Foot Locker, Lady Foot Locker, Champs Sports, and Footaction, including each of their related e-commerce businesses, as well as our Eastbay business that includes internet, catalog, and team sales. Our EMEA operating segment includes the results of the following banners operating in Europe: Foot Locker, Sidestep, and Kids Foot Locker, including each of their related e-commerce businesses. Our Asia Pacific operating segment includes the results of Foot Locker and Kids Foot Locker operating in Australia, New Zealand, and Asia as well as their related e-commerce businesses. We further aggregated these operating segments into one reportable segment based upon their shared customer base and similar economic characteristics. We evaluate performance based on several factors, of which the primary financial measure is the banner’s financial results referred to as division profit. Division profit reflects income before income taxes, other charges, corporate expense, non-operating income, and net interest income. The following table summarizes our results: ($ in millions) 2020 2019 2018 Division profit $ 491 $ 788 $ 808 Less: Impairment and other charges (1) 117 65 37 Less: Corporate expense (2) 71 74 72 Income from operations 303 649 699 Interest (expense) income, net (7) 11 9 Other income, net 198 12 5 Income before income taxes $ 494 $ 672 $ 713 (1) See Note 3, Impairment and Other Charges for additional information on these amounts. (2) Corporate expense for all years presented reflects the reallocation of expense between corporate and the operating divisions. Based upon annual internal studies of corporate expense, the allocation of such expenses to the operating divisions was increased by $28 million for 2020, $32 million for 2019, and $40 million for 2018, thereby reducing corporate expense. Sales disaggregated based upon channel for the fiscal years ended January 30, 2021, February 1, 2020, and February 2, 2019 are presented in the following table. ($ in millions) 2020 2019 2018 Sales Stores $ 5,447 $ 6,720 $ 6,714 Direct-to-customers 2,101 1,285 1,225 Total sales $ 7,548 $ 8,005 $ 7,939 Sales and long-lived asset information by geographic area as of and for the fiscal years ended January 30, 2021, February 1, 2020, and February 2, 2019 are presented in the following tables. Sales are attributed to the country in which the sales transaction is fulfilled. Long-lived assets reflect property and equipment and lease right-of-use assets. ($ in millions) 2020 2019 2018 Sales by Geography United States $ 5,581 $ 5,691 $ 5,647 International 1,967 2,314 2,292 Total sales $ 7,548 $ 8,005 $ 7,939 Long-Lived Assets United States $ 2,218 $ 2,479 $ 602 International 1,286 1,244 234 Total long-lived assets $ 3,504 $ 3,723 $ 836 For the year ended January 30, 2021, the countries that comprised the majority of the sales and long-lived assets for the international category were Canada, France, Italy, Germany, and England. No other individual country included in the international category was significant. Depreciation and Amortization Capital Expenditures (1) Total Assets ($ in millions) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Division $ 152 $ 160 $ 160 $ 88 $ 105 $ 112 $ 5,159 $ 5,523 $ 2,900 Corporate 24 19 18 71 82 75 1,884 1,066 920 Total $ 176 $ 179 $ 178 $ 159 $ 187 $ 187 $ 7,043 $ 6,589 $ 3,820 (1) Represents cash capital expenditures for all years presented . |
Impairment and Other Charges
Impairment and Other Charges | 12 Months Ended |
Jan. 30, 2021 | |
Impairment and Other Charges [Abstract] | |
Impairment and Other Charges | 3. Impairment and Other Charges ($ in millions) 2020 2019 2018 Impairment of long-lived assets $ 77 $ 37 $ 4 Runners Point shut down 19 — — Losses related to social unrest 8 — — Impairment of Investments 4 11 — EMEA reorganization 4 — — Eastbay reorganization 3 — — Pension litigation related charges 2 4 18 Lease termination costs — 13 — Other intangible asset impairments — — 15 Total impairment and other charges $ 117 $ 65 $ 37 Due to COVID-19 and its effect on our actual and projected results, during the first quarter of 2020, we determined that a triggering event occurred for certain underperforming stores operating in Europe and, therefore, we conducted an impairment review. We evaluated the long-lived assets, including the right-of-use assets, and recorded non-cash charges of $15 million to write down store fixtures, leasehold improvements, and right-of-use assets of 70 stores. During the fourth quarter of 2020, we conducted an impairment review for approximately 90 underperforming stores. We evaluated the long-lived assets, including the right-of-use assets and recorded non-cash charges of $62 million to write down store fixtures, leasehold improvements, and right-of-use assets for approximately 60 of these stores. Losses related to social unrest represented inventory losses, damages to store property, repairs, and other costs incurred in connection with the riots that affected certain parts of the United States and Canada during the second quarter of 2020 and resulted in a loss of $18 million. Approximately 140 stores were damaged due to the unrest. The total charge included inventory losses of $15 million, damages to store property of $1 million, and repairs and other costs of $2 million. Substantially all of the damaged stores reopened during the third quarter. During the fourth quarter, we recorded a partial insurance recovery of $10 million representing an advance on our claim. We are continuing to work with our insurers to determine the remaining amount of our covered losses under our property insurance policy. Additional insurance recoveries will be recorded in the period in which we conclude our settlement discussions with our insurance providers. In May 2020, we made the strategic decision to shut down our Runners Point business and to consolidate our Sidestep support staff into our other operations in Europe. Also, as part of the next phase of the Champs Sports and Eastbay strategic initiative, we restructured positions and aligned several functions across the banners and consolidated certain Eastbay operations into the Champs Sports headquarters. We recorded charges of $19 million related to the shutdown of the Runners Point business and $3 million related to the reorganization associated with Eastbay. As part of the decision to close the Runners Point banner, certain Runners Point stores have been converted into other banners and approximately 40 Runners Point and Sidestep stores closed prior to their natural lease expirations. In the fourth quarter of 2020, we recorded a charge of $4 million in connection with the reorganization of certain support functions and supply chain operations within our EMEA segment. The table below presents a rollforward of our restructuring liability, which is recorded in Accrued and other liabilities on the Consolidated Balance Sheets. The remaining restructuring liability at January 30, 2021, which primarily relates to severance payments, is expected to be substantially paid within the next twelve months. ($ in millions) Runners Point Eastbay EMEA Total Balance as of February 1, 2020 $ — $ — $ — $ — Charges 19 3 4 26 Payments (13) (3) — (16) Balance as of January 30, 2021 $ 6 $ — $ 4 $ 10 During 2020 and 2019, we recorded non-cash charges of $4 million and $11 million, respectively, related to the write-down of certain minority investments. One of our investments experienced a deterioration in their future outlook and due to the underperformance of this investee, we have partially written down our investment in 2020 and 2019. In 2019, we recorded a full write down our investment in a children’s athletics startup which filed for bankruptcy. The Company and the Company’s U.S. pension plan were involved in litigation related to the conversion of the plan to a cash balance plan. The court entered its final judgment in 2018, which required the plan be reformed as directed by the court order. We recorded charges in 2020, 2019, and 2018, related to the pension matter and related plan reformation totaling $2 million, $4 million, and $18 million, respectively. These charges recorded represented certain costs of the reformation and related administrative expenses. During 2019, we performed an impairment review on our Footaction stores, certain other underperforming stores and a vacant store that had been previously subleased. We evaluated the long-lived assets, including the right-of-use assets, of these stores and recorded non-cash charges of $37 million to write down right-of-use assets, store fixtures and leasehold improvements. We also recorded $13 million of lease termination costs related to the closure of our SIX:02 locations during 2019. During 2018, we recorded non-cash impairment charges of $4 million to write down store fixtures and leasehold improvements. We also performed an impairment review of other intangible assets and recorded a charge of $15 million to write down the value of the trademarks/trade names associated with Runners Point. |
Other Income
Other Income | 12 Months Ended |
Jan. 30, 2021 | |
Other Income [Abstract] | |
Other Income | 4. Other Income, net Other income, net was $198 million, $12 million, and $5 million in 2020, 2019, and 2018, respectively. Other income, net includes non-operating items, such as: - franchise royalty income, - gains associated with disposal of property, - changes in fair value, premiums paid, and realized gains associated with foreign currency option contracts, - changes in the market value of our available-for-sale security, - premiums paid to repurchase and retire bonds, - changes in value for our investments accounted for using the fair value measurement alternative, which is at cost adjusted for changes in observable prices minus impairment, - our share of earnings or losses related to our equity method investments, and - net benefit expense or income related to our pension and postretirement programs, excluding the service cost component. In 2020, one of our minority investments, which is measured using the fair value measurement alternative, received additional funding in August at a higher valuation than our initial investment. As a result, we recorded a $190 million non-cash gain during the third quarter of 2020. Other income, net also included $6 million of royalty income, $5 million of net benefit income relating to our pension and post retirement programs. This income was partially offset by $2 million in premiums paid in connection with the repurchase and retirement of bonds and a $1 million loss related to our equity method investments. During 2019, we recorded $8 million of royalty income, a $4 million gain associated with the acquisition of a Canadian distribution center lease and related assets from the partial exchange of a note that had previously been written down to zero, a $2 million gain related to the sale of a building, a $1 million gain on our available-for-sale security, partially offset by $2 million of net benefit expense relating to our pension and post retirement programs, and $1 million loss related to our equity method investments. During 2018, we recorded $6 million of royalty income, $1 million of lease termination gains, a $1 million loss on our available-for-sale security, and $1 million of net benefit expense relating to our pension and post retirement programs. |
Merchandise Inventories
Merchandise Inventories | 12 Months Ended |
Jan. 30, 2021 | |
Merchandise Inventories [Abstract] | |
Merchandise Inventories | 5. Merchandise Inventories ($ in millions) January 30, February 1, LIFO inventories $ 544 $ 810 FIFO inventories 379 398 Total merchandise inventories $ 923 $ 1,208 The value of our LIFO inventories, as calculated on a LIFO basis, approximates their value as calculated on a FIFO basis. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Jan. 30, 2021 | |
Other Current Assets [Abstract] | |
Other Current Assets | 6. Other Current Assets ($ in millions) January 30, February 1, Net receivables $ 124 $ 100 Other prepaid expenses 56 46 Prepaid income taxes 20 48 Prepaid rent 14 55 Restricted cash 8 6 Income taxes receivable 1 1 Deferred tax costs — 9 Other 9 6 $ 232 $ 271 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 30, 2021 | |
Property and Equipment, Net [Abstract] | |
Property and Equipment, Net | 7. Property and Equipment, net ($ in millions) January 30, February 1, Owned properties: Land $ 4 $ 4 Buildings 52 54 Furniture, fixtures, equipment, and software development costs 1,274 1,203 1,330 1,261 Less: accumulated depreciation (907) (818) $ 423 $ 443 Finance leases: Assets under finance leases $ 11 $ — Less: accumulated amortization (1) — $ 10 $ — Alterations to leased and owned buildings: Cost $ 974 $ 937 Less: accumulated amortization (619) (556) $ 355 $ 381 $ 788 $ 824 |
Other Intangible Assets, Net
Other Intangible Assets, Net | 12 Months Ended |
Jan. 30, 2021 | |
Other Intangible Assets, Net [Abstract] | |
Other Intangible Assets, Net | 8. Other Intangible Assets, net January 30, 2021 February 1, 2020 Gross Accum. Net Life in Gross Accum. Net ($ in millions) value amort. value Years (2) value amort. value Amortized intangible assets: (1) Lease acquisition costs $ 121 $ (116) $ 5 9.9 $ 115 $ (108) $ 7 Trademarks / trade names 20 (17) 3 20.0 20 (16) 4 $ 141 $ (133) $ 8 14.8 $ 135 $ (124) $ 11 Indefinite life intangible assets: (1) Trademarks / trade names $ 9 $ 9 Other intangible assets, net $ 17 $ 20 (1) The change in the ending balances also reflect the effect of foreign currency fluctuations due primarily to the movements of the euro in relation to the U.S. dollar. (2) Represents the weighted-average useful life as of January 30, 2021 and excludes those assets that are fully amortized. Amortizing intangible assets primarily represent lease acquisition costs, which are amounts that are required to secure prime lease locations and other lease rights, primarily in Europe. Amortization expense recorded is as follows: ($ in millions) 2020 2019 2018 Amortization expense $ 3 $ 3 $ 4 Estimated future amortization expense for finite lived intangibles for the next five years is as follows: ($ in millions) 2021 $ 2 2022 2 2023 2 2024 1 2025 1 |
Other Assets
Other Assets | 12 Months Ended |
Jan. 30, 2021 | |
Other Assets [Abstract] | |
Other Assets | 9. Other Assets ($ in millions) January 30, February 1, Restricted cash $ 30 $ 29 Pension asset 3 3 Auction rate security 7 7 Other 50 42 $ 90 $ 81 |
Accrued and Other Liabilities
Accrued and Other Liabilities | 12 Months Ended |
Jan. 30, 2021 | |
Accrued and Other Liabilities [Abstract] | |
Accrued and Other Liabilities | 10. Accrued and Other Liabilities ($ in millions) January 30, February 1, Taxes other than income taxes $ 96 $ 57 Income taxes payable 81 4 Other payroll and payroll related costs, excluding taxes 73 64 Incentive bonuses 72 28 Customer deposits 49 45 Rent related costs 40 20 Property and equipment (1) 33 40 Advertising 25 21 Other 91 64 $ 560 $ 343 (1) Accruals for property and equipment are excluded from the Statements of Cash Flows for all years presented. |
Revolving Credit Facility
Revolving Credit Facility | 12 Months Ended |
Jan. 30, 2021 | |
Revolving Credit Facility [Abstract] | |
Revolving Credit Facility | 11. Revolving Credit Facility In the first quarter of 2020, we borrowed $330 million under our then-existing revolving credit facility. On July 14, 2020 , we amended our then-existing revolving credit agreement to provide for a $600 million asset-based revolving credit facility that is scheduled to mature on July 14, 2025 (as amended, “2020 Credit Agreement”). On July 15, 2020, the Company repaid all revolving loans outstanding under the Amended Credit Agreement. Under the 2020 Credit Agreement interest is determined, at our option, by either (1) the eurodollar rate, which is determined by reference to LIBOR, plus a margin of 1.75 percent to 2.25 percent per annum, or (2) the base rate, determined by reference to the federal funds rate, plus a margin of 0.75 percent to 1.25 percent, in each case. In addition, we are paying a commitment fee of 0.50 percent per annum on the unused portion of the commitments under the 2020 Credit Agreement. If certain specified events of default have occurred and are continuing, or if availability under the 2020 Credit Agreement is less than or equal to the greater of $60 million and 10 percent of the Loan Cap (as defined in the 2020 Credit Agreement), we are required to test compliance with a minimum consolidated fixed charge coverage ratio of 1.00 to 1.00 as of the end of each fiscal quarter in order to make investments, pay dividends, and repurchase our shares . No events of default occurred during 2020. We may use letters of credit issued pursuant to the 2020 Credit Agreement to, among other things, support standby letters of credit in connection with insurance programs. The letters of credit outstanding as of January 30, 2021 were not significant. We paid fees of $4 million in connection with the amendment of our credit facility and such costs are amortized over the life of the facility. The unamortized balance at January 30, 2021 was $4 million. Interest expense, including facility fees, related to the revolving credit facility was $5 million, $1 million, and $1 million for 2020, 2019, and 2018, respectively. |
Long-Term Debt and Obligations
Long-Term Debt and Obligations Under Finance Leases | 12 Months Ended |
Jan. 30, 2021 | |
Long-Term Debt and Obligations Under Finance Leases [Abstract] | |
Long-Term Debt and Obligations Under Finance Leases | 12. Long-Term Debt and Obligations Under Finance Leases The components of long-term debt and obligations under finance leases are as follows: ($ in millions) January 30, February 1, 8.5% debentures payable January 2022 $ 98 $ 118 Unamortized gain related to interest rate swaps (1) 2 4 Obligations under finance leases 10 — $ 110 $ 122 Current portion of debt and obligations under finance leases 102 — $ 8 $ 122 (1) In 2009, we terminated an interest rate swap at a gain. This gain is being amortized as part of interest expense over the remaining term of the debt using the effective-yield method. During 2020, we purchased and retired $20 million of our 8.5 percent debentures for $22 million. The remaining principal balance of $98 million is classified as a current liability as of January 30, 2021. Interest expense related to long-term debt and the amortization of the associated debt issuance costs was $8 million for 2020, 2019, and 2018. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Jan. 30, 2021 | |
Other Liabilities [Abstract] | |
Other Liabilities | 13. Other Liabilities ($ in millions) January 30, February 1, Pension benefits $ 38 $ 61 Income taxes 31 32 Postretirement benefits 12 10 Workers’ compensation and general liability reserves 8 8 Deferred taxes 18 2 Other 9 9 $ 116 $ 122 \ |
Leases
Leases | 12 Months Ended |
Jan. 30, 2021 | |
Leases [Abstract] | |
Leases | 14. Leases The majority of our leases are operating leases for our company-operated retail store locations. We also lease, among other things, distribution and warehouse facilities, and office space for corporate administrative purposes. Operating lease periods generally range from 5 to 10 years and generally contain rent escalation provisions. Some of the store leases contain renewal options with varying terms and conditions. Amounts recognized in the Consolidated Balance Sheet were as follows: ($ in millions) January 30, February 1, Operating leases: Operating lease right-of-use assets $ 2,716 $ 2,899 Operating lease liabilities classified as current $ 580 $ 518 Operating lease liabilities classified as long-term 2,499 2,678 Total operating lease liabilities $ 3,079 $ 3,196 Finance leases: Property and equipment, net $ 10 $ — Current portion of debt and obligations under finance leases $ 2 $ — Long-term obligations under finance leases 8 — Total finance lease obligations $ 10 $ — Other information related to operating leases as of January 30, 2021 and February 1, 2020 consisted of the following: January 30, February 1, Weighted-average remaining lease term (years) Operating leases 6.7 7.3 Finance leases 4.4 — Weighted-average discount rate Operating leases 5.0 % 5.4 % Finance leases 4.1 % — % Total lease costs include fixed operating lease costs, variable lease costs, and short-term lease costs. Most of our real estate leases require we pay certain expenses, such as CAM costs, real estate taxes, and other executory costs, of which the fixed portion is included in operating lease costs. Variable lease costs include non-lease components which are not fixed and are not included in determining the present value of our lease liability. Variable lease costs also include amounts based on a percentage of gross sales in excess of specified levels that are recognized when probable. Lease costs which relate to retail stores and distribution centers are classified within cost of sales, while non-store lease costs are included in SG&A. Amortization of leased assets is classified in depreciation and amortization. The components of lease cost for the years ended January 30, 2021 and February 1, 2020 were as follows: ($ in millions) 2020 2019 Operating lease costs: $ 620 $ 668 Variable lease costs 290 332 Short-term lease costs 23 23 Sublease income (1) (1) Total operating lease costs $ 932 $ 1,022 Finance leases costs: Amortization of leased assets 1 — Total lease cost $ 933 $ 1,022 Rent expense for operating leases for 2018, under previous accounting guidance, amounted to $750 million and consisted of minimum and contingent rentals of $728 million and $27 million, respectively, less sublease income of $5 million. Other costs related to our leases, including the amortization of lease rights, totaled $147 million for the year ended February 2, 2019. Maturities of lease liabilities as of January 30, 2021 are as follows: ($ in millions) Operating leases Finance leases Total 2021 $ 718 $ 3 $ 721 2022 624 3 627 2023 542 2 544 2024 458 2 460 2025 366 1 367 Thereafter 943 — 943 Total lease payments 3,651 11 3,662 Less: Interest 572 1 573 Total lease liabilities $ 3,079 $ 10 $ 3,089 As of January 30, 2021, we signed operating leases primarily for retail stores that have not yet commenced and the total future undiscounted lease payments under these leases are $29 million. Supplemental cash flow information related to leases for the year ended January 30, 2021 and February 1, 2020 were as follows: ($ in millions) 2020 2019 Cash paid for amounts included in measurement of operating lease liabilities $ 626 $ 679 Right-of-use assets obtained in exchange for lease obligations 331 322 Cash paid for amounts included in measurement of finance lease liabilities 1 — Leases obtained in exchange for finance lease obligations 11 — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jan. 30, 2021 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 15. Accumulated Other Comprehensive Loss AOCL, net of tax, is comprised of the following: ($ in millions) 2020 2019 2018 Foreign currency translation adjustments $ (64) $ (104) $ (84) Cash flow hedges (1) (3) — Unrecognized pension cost and postretirement benefit (266) (287) (286) $ (331) $ (394) $ (370) The changes in AOCL for the year ended January 30, 2021 were as follows: Foreign Items Related Currency to Pension and Translation Cash Flow Postretirement ($ in millions) Adjustments Hedges Benefits Total Balance as of February 1, 2020 $ (104) $ (3) $ (287) $ (394) OCI before reclassification 40 2 (1) 41 Amortization of pension actuarial loss, net of tax — — 8 8 Pension remeasurement, net of tax — — 14 14 Other comprehensive income 40 2 21 63 Balance as of January 30, 2021 $ (64) $ (1) $ (266) $ (331) Reclassifications to income from AOCL for the year ended January 30, 2021 were as follows: ($ in millions) Amortization of actuarial (gain) loss: Pension benefits- amortization of actuarial loss $ 12 Postretirement benefits- amortization of actuarial gain (1) Net periodic benefit cost (see Note 19) 11 Income tax (3) Total, net of tax $ 8 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 30, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | 16. Income Taxes The domestic and international components of pre-tax income are as follows: ($ in millions) 2020 2019 2018 Domestic $ 647 $ 591 $ 629 International (153) 81 84 Total pre-tax income $ 494 $ 672 $ 713 Domestic pre-tax income includes the results of non-U.S. businesses that are operated in branches owned directly by the U.S. which, therefore, are subject to U.S. income tax. The income tax provision consists of the following: ($ in millions) 2020 2019 2018 Current: Federal $ 114 $ 106 $ 91 State and local 43 39 42 International 23 31 30 Total current tax provision 180 176 163 Deferred: Federal 6 (1) (4) State and local (2) — 1 International (13) 6 12 Total deferred tax (benefit) provision (9) 5 9 Total income tax provision $ 171 $ 181 $ 172 Following the enactment of Public Law 115-97 (“Tax Act”) and the one-time transition tax, our historical foreign earnings are not subject to additional U.S. federal tax upon repatriation. Further, no additional U.S. federal tax will be due upon repatriation of current foreign earnings because they are either exempt or subject to U.S. tax as earned. At January 30, 2021, we had accumulated undistributed foreign earnings of approximately $631 million. This amount consists of historical earnings that were previously taxed under the Tax Act and post-Tax Act earnings. Investments in our foreign subsidiaries, including working capital, will continue to be permanently reinvested. Cash balances in excess of working capital needs are considered to be available for repatriation to the United States and foreign withholding taxes will be accrued as necessary on these amounts. We have not recorded a deferred tax liability for the difference between the financial statement carrying amount and the tax basis of our investments in foreign subsidiaries. The determination of any unrecorded deferred tax liability on this amount is not practicable due to the uncertainty of how these investments would be recovered. A reconciliation of the significant differences between the federal statutory income tax rate and the effective income tax rate on pre-tax income is as follows: 2020 2019 2018 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % Deemed repatriation tax — — (2.7) Increase in valuation allowance 6.3 1.0 2.4 State and local income taxes, net of federal tax benefit 6.6 4.5 4.7 International income taxed at varying rates 4.3 1.9 1.6 Foreign tax credits (2.4) (2.0) (2.1) Domestic/foreign tax settlements (0.5) — (0.7) Federal tax credits (0.4) (0.2) (0.2) Other, net (0.4) 0.8 0.1 Effective income tax rate 34.5 % 27.0 % 24.1 % Deferred income taxes are provided for the effects of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for income tax purposes. Items that give rise to significant portions of our deferred tax assets and liabilities are as follows: ($ in millions) 2020 2019 Deferred tax assets: Tax loss/credit carryforwards and capital loss $ 120 $ 54 Employee benefits 52 40 Property and equipment 13 30 Goodwill and other intangible assets — 14 Operating leases - liabilities 811 844 Other 39 29 Total deferred tax assets $ 1,035 $ 1,011 Valuation allowance (76) (39) Total deferred tax assets, net $ 959 $ 972 Deferred tax liabilities: Merchandise inventories $ 62 $ 86 Operating leases - assets 746 794 Goodwill and other intangible assets 13 — Net investment gains 46 — Other 9 13 Total deferred tax liabilities $ 876 $ 893 Net deferred tax asset $ 83 $ 79 Balance Sheet caption reported in: Deferred taxes $ 101 $ 81 Other liabilities (18) (2) $ 83 $ 79 Based upon the level of historical taxable income and projections for future taxable income, which are based upon our long-range strategic plans, management believes it is more likely than not that we will realize the benefits of deductible differences, net of the valuation allowances at January 30, 2021, over the periods in which the temporary differences are anticipated to reverse. However, the amount of the deferred tax asset considered realizable could be adjusted in the future if estimates of taxable income are revised. As of January 30, 2021, we have a valuation allowance of $76 million to reduce our deferred tax assets to an amount that is more likely than not to be realized. A valuation allowance of $67 million was recorded against tax loss carryforwards of certain foreign entities. Based on the history of losses and the absence of prudent and feasible business plans for generating future taxable income in these entities, we believe it is more likely than not that the benefit of these loss carryforwards will not be realized. As of January 30, 2021, a valuation allowance of $8 million was established for foreign taxes assessed at rates in excess of the U.S. federal tax rate for which no U.S. foreign tax credit is available. Additionally, since we do not have any reasonably foreseeable sources of Canadian capital gains, a valuation allowance of $1 million was established since 2019 for a deferred tax asset arising from a capital loss associated with an uncollectible Canadian note receivable. At January 30, 2021, we have international minimum tax credit carryforwards with a potential tax benefit of $4 million and operating loss carryforwards with a potential tax benefit of $103 million, a portion of which will expire between 2021 and 2027 and a portion of which will never expire. We will have, when realized, a capital loss with a potential benefit of $1 million arising from a Canadian note receivable. The Canadian loss will carryforward indefinitely after realization. The international operating loss carryforwards do not include unrecognized tax benefits. We also have foreign tax credit carrybacks and carryforwards with a potential tax benefit of $12 million that will expire between 2021 and 2030. We operate in multiple taxing jurisdictions and are subject to audit. Audits can involve complex issues that may require an extended period of time to resolve. A taxing authority may challenge positions that we have adopted in our income tax filings. Accordingly, we may apply different tax treatments for transactions in filing its income tax returns than for income tax financial reporting. We regularly assess our tax positions for such transactions and record reserves for those differences. Our 2019 U.S. Federal income tax filing is under examination by the Internal Revenue Service. We expect to conclude the examination in the first quarter of 2021. We are participating in the IRS’s Compliance Assurance Process (“CAP”) for 2021 and 2020. The 2020 CAP is expected to conclude during 2021. We are subject to state and local tax examinations from 2017 to the present. To date, no adjustments have been proposed in any audits that will have a material effect on our financial position or results of operations. At January 30, 2021, we had $47 million of gross unrecognized tax benefits, of which $35 million would, if recognized, affect our annual effective tax rate. We classified certain income tax liabilities as current or noncurrent based on management’s estimate of when these liabilities will be settled. Interest expense and penalties related to unrecognized tax benefits are classified as income tax expense. We recognized $1 million of interest expense in both 2020 and 2019. Interest was not significant for 2018. The total amount of accrued interest and penalties was $3 million, $2 million, and $1 million in 2020, 2019, and 2018, respectively. The following table summarizes the activity related to unrecognized tax benefits: ($ in millions) 2020 2019 2018 Unrecognized tax benefits at beginning of year $ 45 $ 34 $ 44 Foreign currency translation adjustments 3 (1) (3) Increases related to current year tax positions 2 3 2 Increases related to prior period tax positions 3 12 9 Decreases related to prior period tax positions — — (13) Settlements (1) (2) (3) Lapse of statute of limitations (5) (1) (2) Unrecognized tax benefits at end of year $ 47 $ 45 $ 34 It is reasonably possible that the liability associated with our unrecognized tax benefits will increase or decrease within the next twelve months. These changes may be the result of foreign currency fluctuations, ongoing audits, or the expiration of statutes of limitations. Settlements during 2021 are not expected to be significant based on current estimates. Audit outcomes and the timing of audit settlements are subject to significant uncertainty. Although management believes that adequate provision has been made for such issues, the ultimate resolution could have an adverse effect on our earnings. Conversely, if these issues are resolved favorably in the future, the related provision would be reduced, generating a positive effect on earnings. Due to the uncertainty of amounts and in accordance with our accounting policies, we have not recorded any potential consequences of these settlements. In addition, to the extent there are settlements in the future for certain foreign unrecognized tax benefits, the transition tax may also be revised accordingly. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Jan. 30, 2021 | |
Financial Instruments and Risk Management [Abstract] | |
Financial Instruments and Risk Management | 17. Financial Instruments and Risk Management We operate internationally and utilize certain derivative financial instruments to mitigate our foreign currency exposures, primarily related to third-party and intercompany forecasted transactions. As a result of the use of derivative instruments, we are exposed to the risk that counterparties will fail to meet their contractual obligations. To mitigate this counterparty credit risk, we have a practice of entering into contracts with major financial institutions selected based upon their credit ratings and other financial factors. We monitor the creditworthiness of counterparties throughout the duration of the derivative instrument. Derivative Holdings Designated as Hedges For a derivative to qualify as a hedge at inception and throughout the hedged period, we formally document the nature of the hedged items and the relationships between the hedging instruments and the hedged items, as well as our risk-management objectives, strategies for undertaking the various hedge transactions, and the methods of assessing hedge effectiveness and ineffectiveness. In addition, for hedges of forecasted transactions, the significant characteristics and expected terms of a forecasted transaction must be specifically identified, and it must be probable that each forecasted transaction would occur. If it were deemed probable that the forecasted transaction would not occur, the gain or loss on the derivative instrument would be recognized in earnings immediately. Gains or losses recognized in earnings for any of the periods presented were not significant. Derivative financial instruments qualifying for hedge accounting must maintain a specified level of effectiveness between the hedging instrument and the item being hedged, both at inception and throughout the hedged period, which we evaluate periodically. The primary currencies to which we are exposed are the euro, British pound, Canadian dollar, and Australian dollar. Generally, merchandise inventories are purchased by each geographic area in their respective local currency with the exception of the United Kingdom, whose merchandise inventory purchases are primarily denominated in euros. For option and foreign exchange forward contracts designated as cash flow hedges of the purchase of inventory, the effective portion of gains and losses is deferred as a component of AOCL and is recognized as a component of cost of sales when the related inventory is sold. The amount reclassified to cost of sales related to such contracts was not significant for any of the periods presented. The effective portion of gains or losses associated with other forward contracts is deferred as a component of AOCL until the underlying transaction is reported in earnings. The ineffective portion of gains and losses related to cash flow hedges recorded to earnings was not significant for any of the periods presented. When using a forward contract as a hedging instrument, we exclude the time value of the contract from the assessment of effectiveness. The notional value of the contracts outstanding at January 30, 2021 and February 1, 2020 was $69 million and $92 million, respectively. As of January 30, 2021, all of our hedged forecasted transactions extend less than twelve months into the future, and we expect all derivative-related amounts reported in AOCL to be reclassified to earnings within twelve months. The loss in AOCL as of January 30, 2021 and February 1, 2020 was $1 million and $3 million, respectively. Derivative Holdings Not Designated as Hedges We enter into certain derivative contracts that are not designated as hedges, such as foreign exchange forward contracts and currency option contracts. These derivative contracts are used to manage certain costs of foreign currency-denominated merchandise purchases, intercompany transactions, and the effect of fluctuating foreign exchange rates on the reporting of foreign currency-denominated earnings. Changes in the fair value of derivative holdings not designated as hedges, as well as realized gains and premiums paid, are recorded in earnings immediately within SG&A or Other income, net, depending on the type of transaction. The aggregate amount recognized for these contracts was not significant for any of the periods presented. The notional value of foreign exchange forward contracts outstanding at January 30, 2021 and February 1, 2020 was $135 million and $1 million, respectively. The foreign exchange forward contracts outstanding at January 30, 2021 extend less than twelve months into the future. Fair Value of Derivative Contracts The following represents the fair value of our derivative contracts. Balance Sheet January 30, February 1, ($ in millions) Caption 2021 2020 Hedging Instruments: Foreign exchange forward contracts Current assets $ 1 $ — Foreign exchange forward contracts Current liabilities $ 1 $ 4 Notional Values and Foreign Currency Exchange Rates The table below presents the notional amounts for all outstanding derivatives and the weighted-average exchange rates of foreign exchange forward contracts at January 30, 2021: Weighted-Average ($ in millions) Contract Value Exchange Rate Inventory Buy €/Sell British £ $ 69 0.9058 Intercompany Buy US $/Sell CAD $ $ 1 1.2761 Buy US $/Sell AUD $ $ 1 1.3154 Buy British £/ Sell € $ 41 1.1017 Buy US $/ Sell € $ 91 0.8211 Business Risk The retail business is highly competitive. Price, quality, selection of merchandise, reputation, store location, advertising, and customer experience are important competitive factors in our business. We operate in 27 countries and purchased approximately 91 percent of our merchandise in 2020 from our top 5 suppliers. In 2020, we purchased approximately 75 percent of our athletic merchandise from one major supplier, Nike, Inc. (“Nike”). Each of our operating divisions is highly dependent on Nike; they individually purchased 47 to 82 percent of their merchandise from Nike. Included in our Consolidated Balance Sheet at January 30, 2021, are the net assets of our European operations, which total $283 million and are located in 19 countries, 11 of which have adopted the euro as their functional currency. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 30, 2021 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 18. Fair Value Measurements We categorize our financial instruments into a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants exclusive of any transaction costs. Our financial assets recorded at fair value are categorized as follows: Level 1 - Quoted prices for identical instruments in active markets. Level 2 - Observable inputs other than quoted prices included within Level 1, including quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets. Level 3 - Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable. Our auction rate security, classified as available-for-sale, is recorded within Other assets on the Consolidated Balance Sheet and is recorded at fair value with gains and losses reported in Other income, net in our Consolidated Statements of Operations. The fair value of the auction rate security is determined by using quoted prices for similar instruments in active markets and accordingly is classified as a Level 2 instrument. Our derivative financial instruments are valued using market-based inputs to valuation models. These valuation models require a variety of inputs, including contractual terms, market prices, yield curves, and measures of volatility and therefore are classified as Level 2 instruments . Assets and Liabilities Measured at Fair Value on a Recurring Basis ($ in millions) As of January 30, 2021 As of February 1, 2020 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Available-for-sale security $ — $ 7 $ — $ — $ 7 $ — Foreign exchange forward contracts — 1 — — — — Total Assets $ — $ 8 $ — $ — $ 7 $ — Liabilities Foreign exchange forward contracts $ — $ 1 $ — $ — $ 4 $ — Total Liabilities $ — $ 1 $ — $ — $ 4 $ — There were no transfers into or out of Level 1, Level 2, or Level 3 for any of the periods presented. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets and liabilities recognized or disclosed at fair value on the consolidated financial statements on a nonrecurring basis include items such as property, plant and equipment, operating lease right-of-use assets, goodwill, other intangible assets and minority investments that are not accounted for under the equity method of accounting. These assets are measured using Level 3 inputs, if determined to be impaired. Long-Term Debt The fair value of long-term debt is determined by using model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets and therefore are classified as Level 2. ($ in millions) January 30, February 1, Carrying value $ 100 $ 122 Fair value $ 106 $ 135 The carrying values of cash and cash equivalents, restricted cash, and other current receivables and payables approximate their fair value. |
Retirement Plans and Other Bene
Retirement Plans and Other Benefits | 12 Months Ended |
Jan. 30, 2021 | |
Retirement Plans and Other Benefits [Abstract] | |
Retirement Plans and Other Benefits | 19 . Retirement Plans and Other Benefits Pension and Other Postretirement Plans We have defined benefit pension plans covering certain of our North American employees. In May 2019, the U.S. qualified pension plan was amended such that all employees who were not participants in the plan as of December 31, 2019, will not become participants after such date. All benefit accruals were frozen as of December 31, 2019 for all plan participants with less than eleven years of service as of December 31, 2019. For participants with more than eleven years of service as of December 31, 2019, benefit accruals will be frozen as of December 31, 2022. Participants will continue to accrue interest at a fixed rate of 6 percent per year. We also sponsor postretirement medical and life insurance plans, which are available to most of our retired U.S. employees. These plans are contributory and are not funded. The measurement date of the assets and liabilities is the month-end date that is closest to our fiscal year end. The following tables set forth the plans’ changes in benefit obligations and plan assets, funded status, and amounts recognized in the Consolidated Balance Sheets: Pension Benefits Postretirement Benefits ($ in millions) 2020 2019 2020 2019 Change in benefit obligation Benefit obligation at beginning of year $ 775 $ 739 $ 11 $ 12 Service cost 14 20 — — Interest cost 21 27 — — Plan participants’ contributions — — 1 1 Actuarial loss 8 76 2 — Foreign currency translation adjustments 2 (1) — — Benefits paid (67) (85) (1) (2) Settlement — (1) — — Benefit obligation at end of year $ 753 $ 775 $ 13 $ 11 Change in plan assets Fair value of plan assets at beginning of year $ 715 $ 644 Actual return on plan assets 65 100 Employer contributions 1 57 Foreign currency translation adjustments 2 (1) Benefits paid (67) (85) Fair value of plan assets at end of year $ 716 $ 715 Funded status $ (37) (60) $ (13) $ (11) Amounts recognized on the consolidated balance sheet: Other assets $ 3 $ 3 $ — $ — Accrued and other liabilities (2) (2) (1) (1) Other liabilities (38) (61) (12) (10) $ (37) $ (60) $ (13) $ (11) The Canadian qualified pension plan’s assets exceeded its accumulated benefit obligation for both 2020 and 2019. Our non-qualified pension plans have an accumulated benefit obligation in excess of plan assets, as these plans are unfunded. Accordingly, the table below reflects both the U.S. qualified plan and the non-qualified plans for both 2020 and 2019. ($ in millions) 2020 2019 Projected benefit obligation $ 706 $ 727 Accumulated benefit obligation 706 727 Fair value of plan assets 666 664 The following table provides the amounts recognized in AOCL on a pre-tax basis: Pension Postretirement ($ in millions) Benefits Benefits Net actuarial loss (gain) at beginning of year $ 392 $ (5) Amortization of net (loss) gain (12) 1 (Gain) loss arising during the year (20) 2 Foreign currency fluctuations 1 — Net actuarial loss (gain) at end of year $ 361 $ (2) The actuarial losses incurred during 2020 were primarily driven from a decrease in discount rates applied against future expected benefit payments and resulted in an increase in the benefit obligation for the pension benefit plans. This was partially offset by higher actual return over expected return on plan assets and liability gains from the U.S. qualified plan. The following weighted-average assumptions were used to determine the benefit obligations under the plans: Pension Benefits Postretirement Benefits 2020 2019 2020 2019 Discount rate 2.5 % 2.9 % 2.8 % 3.0 % Rate of compensation increase 3.6 % 3.6 % Pension expense is actuarially calculated annually based on data available at the beginning of each year. The expected return on plan assets is determined by multiplying the expected long-term rate of return on assets by the market-related value of plan assets for the U.S. qualified pension plan and market value for the Canadian qualified pension plan. The market-related value of plan assets is a calculated value that recognizes investment gains and losses in fair value related to equities over three or five years , depending on which computation results in a market-related value closer to market value. Market-related value for the U.S. qualified plan was $661 million and $601 million for 2020 and 2019, respectively. Assumptions used in the calculation of net benefit cost include the discount rate selected and disclosed at the end of the previous year, as well as other assumptions detailed in the table below: Pension Benefits Postretirement Benefits 2020 2019 2018 2020 2019 2018 Discount rate (1) 2.9 % 4.0 % 4.0 % 3.0 % 4.1 % 3.7 % Rate of compensation increase 3.6 % 3.6 % 3.6 % Expected long-term rate of return on assets 5.5 % 5.8 % 5.9 % (1) The U.S qualified pension plan was remeasured during the second quarter of 2018 in connection with the pension litigation. The discount rate used to determine the benefit obligation in 2018 before the remeasurement was 3.7% . The expected long-term rate of return on invested plan assets is based on the plans’ weighted-average target asset allocation, as well as historical and future expected performance of those assets. The target asset allocation is selected to obtain an investment return that is sufficient to cover the expected benefit payments and to reduce the variability of our future contributions. The following are the components of net periodic pension benefit cost and net periodic postretirement benefit income. Pension Benefits Postretirement Benefits ($ in millions) 2020 2019 2018 2020 2019 2018 Service cost $ 14 $ 20 $ 18 $ — $ — $ — Interest cost 21 27 29 — — — Expected return on plan assets (37) (37) (38) — — — Amortization of net loss (gain) 12 12 12 (1) (1) (1) Net benefit expense (income) $ 10 $ 22 $ 21 $ (1) $ (1) $ (1) Service cost is recognized as a component of SG&A and the remaining pension and postretirement expense components are recognized as part of Other income, net. Beginning in 2001, new retirees were charged the expected full cost of the medical plan, and then-existing retirees will incur 100 percent of the expected future increases in medical plan costs. Any changes in the health care cost trend rates assumed would not affect the accumulated benefit obligation or net benefit income, since retirees will incur 100 percent of such expected future increases. We maintain a Supplemental Executive Retirement Plan (“SERP”), which is an unfunded plan that includes provisions for the continuation of medical and dental insurance benefits to certain executive officers and other key employees of the Company (“SERP Medical Plan”). The SERP Medical Plan’s accumulated projected benefit obligation at January 30, 2021 was $12 million. The following initial and ultimate cost trend rate assumptions were used to determine the benefit obligations under the SERP Medical Plan: Medical Trend Rate Dental Trend Rate 2020 2019 2018 2020 2019 2018 Initial cost trend rate 6.3 % 6.5 % 6.5 % 5.0 % 5.0 % 5.0 % Ultimate cost trend rate 5.0 % 5.0 % 5.0 % 5.0 % 5.0 % 5.0 % Year that the ultimate cost trend rate is reached 2025 2025 2025 2020 2020 2019 The following initial and ultimate cost trend rate assumptions were used to determine the net periodic cost under the SERP Medical Plan: Medical Trend Rate Dental Trend Rate 2020 2019 2018 2020 2019 2018 Initial cost trend rate 6.5 % 6.5 % 7.0 % 5.0 % 5.0 % 5.0 % Ultimate cost trend rate 5.0 % 5.0 % 5.0 % 5.0 % 5.0 % 5.0 % Year that the ultimate cost trend rate is reached 2025 2025 2025 2020 2019 2018 The mortality assumption used to value the 2020 U.S. pension obligations was the Pri-2012 mortality table with generational projection using MP-2020 for both males and females, while in the prior year the obligation was valued using the Pri-2012 mortality table with generational projection using MP-2019. For years ended January 30, 2021 and February 1, 2020, we used the 2014 CPM Private Sector mortality table projected generationally with Scale CPM-B for both males and females to value its Canadian pension obligations for 2020. For the SERP Medical Plan, the mortality assumption used to value the 2020 obligation was updated to the PriH-2012 table with generational projection using MP-2020, while in the prior year the obligation was valued using the PriH-2012 table with generational projection using MP-2019. Plan Assets The target composition of our Canadian qualified pension plan assets is 95 percent fixed-income securities and 5 percent equities. We believe plan assets are invested in a conservative manner with the same overall objective and investment strategy as noted below for the U.S. pension plan. The bond portfolio is comprised of government and corporate bonds chosen to match the duration of the pension plan’s benefit payment obligations. This current asset allocation will limit future volatility with regard to the funded status of the plan. The target composition of our U.S. qualified pension plan assets is 60 percent fixed-income securities, 36.5 percent equities, and 3.5 percent real estate. We may alter the asset allocation targets from time to time depending on market conditions and the funding requirements of the pension plan. This current asset allocation has and is expected to limit volatility with regard to the funded status of the plan, but may result in higher pension expense due to the lower long-term rate of return associated with fixed-income securities. Due to market conditions and other factors, actual asset allocations may vary from the target allocation outlined above. We believe plan assets are invested in a conservative manner with an objective of providing a total return that, over the long term, provides sufficient assets to fund benefit obligations, taking into account our expected contributions and the level of funding risk deemed appropriate. Our investment strategy seeks to diversify assets among classes of investments with differing rates of return, volatility, and correlation in order to reduce funding risk. Diversification within asset classes is also utilized to ensure that there are no significant concentrations of risk in plan assets and to reduce the effect that the return on any single investment may have on the entire portfolio. Valuation of Investments Significant portions of plan assets are invested in commingled trust funds. These funds are valued at the net asset value of units held by the plan at year end. Stocks traded on U.S. and Canadian security exchanges are valued at closing market prices on the measurement date. The fair values of the Canadian pension plan assets at January 30, 2021 and February 1, 2020 were as follows: ($ in millions) Level 1 Level 2 Level 3 2020 Total 2019 Total* Cash equivalents $ — $ — $ — $ — $ 1 Equity securities: Canadian and international (1) 3 — — 3 2 Fixed-income securities: Cash matched bonds (2) — 47 — 47 48 Total assets at fair value $ 3 $ 47 $ — $ 50 $ 51 * Each category of plan assets is classified within the same level of the fair value hierarchy for 2020 and 2019. (1) This category comprises one mutual fund that invests primarily in a diverse portfolio of Canadian securities. (2) This category consists of fixed-income securities, including strips and coupons, issued or guaranteed by the Government of Canada, provinces or municipalities of Canada including their agencies and crown corporations, as well as other governmental bonds and corporate bonds. The fair values of the U.S. pension plan assets at January 30, 2021 and February 1, 2020 were as follows: ($ in millions) Level 1 Level 2 Level 3 2020 Total 2019 Total* Cash equivalents $ — $ 4 $ — $ 4 $ 3 Equity securities: U.S. large-cap (1) — 117 — 117 116 U.S. mid-cap (1) — 34 — 34 34 International (2) — 84 — 84 78 Corporate stock (3) 17 — — 17 15 Fixed-income securities: Long duration corporate and government bonds (4) — 269 — 269 273 Intermediate duration corporate and government bonds (5) — 119 — 119 121 Other types of investments: Real estate securities (6) — 22 — 22 23 Insurance contracts — — — — 1 Total assets at fair value $ 17 $ 649 $ — $ 666 $ 664 * Each category of plan assets is classified within the same level of the fair value hierarchy for 2020 and 2019. (1) These categories consist of various managed funds that invest primarily in common stocks, as well as other equity securities and a combination of other funds. (2) This category comprises three managed funds that invest primarily in international common stocks, as well as other equity securities and a combination of other funds. (3) This category consists of the Company’s common stock. (4) This category consists of various fixed-income funds that invest primarily in long-term bonds, as well as a combination of other funds, that together are designed to exceed the performance of related long-term market indices. (5) This category consists of two fixed-income funds that invest primarily in intermediate duration bonds, as well as a combination of other funds, that together are designed to exceed the performance of related indices. (6) This category consists of one fund that invests in global real estate securities. Contributions and Expected Payments We were not required to make any contributions to the U.S. qualified pension plans in 2020. During 2019, we made a contribution of $55 million to this plan. We do not anticipate making any contributions to the U.S. qualified pension plan in 2021 due to the strong funded status of the plan, however we continually evaluate the amount and timing of any potential contributions based on market conditions and other factors. We paid $1 million and $2 million in pension benefits related to our non-qualified pension plans during 2020 and 2019, respectively. Estimated future benefit payments for each of the next five years and the five years thereafter are as follows: Pension Postretirement ($ in millions) Benefits Benefits 2021 $ 65 $ 1 2022 53 1 2023 51 1 2024 49 — 2025 46 — 2026-2030 208 3 Savings Plans We have two qualified savings plans, a 401(k) plan that is available to employees whose primary place of employment is the U.S., and another plan that is available to employees whose primary place of employment is in Puerto Rico. Eligible team members may contribute to the plans following 28 days of employment and are eligible for matching contributions upon completion of one year of service consisting of at least 1,000 hours. As of January 1, 2021, the savings plans allow eligible employees to contribute up to 40 percent of their compensation on a pre-tax basis, subject to a maximum of $19,500 for the U.S. plan and $15,000 for the Puerto Rico plan. Prior to January 1, 2020, we matched 25 percent of employees’ pre-tax contributions on up to the first 4 percent of the employees’ compensation (subject to certain limitations). Effective January 1, 2020, we match 100 percent of employees’ pre-tax contributions on up to the first 1 percent and 50 percent of the next 5 percent of the employees’ compensation (subject to certain limitations). Prior to January 1, 2020, such matching contributions were vested incrementally over the first five years of participation for both plans. Effective January 1, 2020, matching contributions are vested over two years . The charge to operations for matching contribution was $13 million and $4 million for 2020 and 2019, respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jan. 30, 2021 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | 20. Share-Based Compensation Stock Awards Under our 2007 Stock Incentive Plan (the “2007 Stock Plan”), stock options, restricted stock, restricted stock units, stock appreciation rights, or other share-based awards may be granted to nonemployee directors, officers and other employees, including our subsidiaries and operating divisions worldwide. Options for employees become exercisable in substantially equal annual installments over a three-year period, beginning with the first anniversary of the date of grant of the option, unless a shorter or longer duration is established at the time of the option grant. The options terminate ten years from the date of grant. On May 21, 2014, the 2007 Stock Plan was amended to increase the number of shares of common stock reserved for all awards to 14 million shares. As of January 30, 2021, there were 7,053,613 shares available for issuance under this plan. Employees Stock Purchase Plan Under our 2013 Foot Locker Employees Stock Purchase Plan (“ESPP”), participating employees are able to contribute up to 10 percent of their annual compensation, not to exceed $25,000 in any plan year, through payroll deductions to acquire shares of our common stock at 85 percent of the lower market price on one of two specified dates in each plan year. Of the 3,000,000 shares of common stock authorized under this plan, there were 2,275,164 shares available for purchase as of January 30, 2021. During 2020 and 2019, participating employees purchased 104,054 shares and 96,451 shares, respectively. Share-Based Compensation Expense Total compensation expense included in SG&A and the associated tax benefits recognized related to our share-based compensation plans, were as follows: ($ in millions) 2020 2019 2018 Options and shares purchased under the ESPP $ 6 $ 6 $ 7 Restricted stock and restricted stock units 9 12 15 Total share-based compensation expense $ 15 $ 18 $ 22 Tax benefit recognized $ 2 $ 2 $ 3 Valuation Model and Assumptions The Black-Scholes option-pricing model is used to estimate the fair value of share-based awards. The Black-Scholes option-pricing model incorporates various and subjective assumptions, including expected term and expected volatility. We estimate the expected term of share-based awards using our historical exercise and post-vesting employment termination patterns, which we believe are representative of future behavior. The expected term for the employee stock purchase plan valuation is based on the length of each purchase period as measured at the beginning of the offering period, which is one year . We estimate the expected volatility of our common stock at the grant date using a weighted-average of our historical volatility and implied volatility from traded options on our common stock. We believe that this combination of historical volatility and implied volatility provides a better estimate of future stock price volatility. The risk-free interest rate assumption is determined using the Federal Reserve nominal rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. The expected dividend yield is derived from our historical experience. The following table shows the assumptions used to compute the share-based compensation expense: Stock Option Plans Stock Purchase Plan 2020 2019 2018 2020 2019 2018 Weighted-average risk free rate of interest 0.5 % 2.2 % 2.7 % 1.8 % 2.2 % 2.0 % Expected volatility 37 % 38 % 37 % 48 % 54 % 50 % Weighted-average expected award life (in years) 4.9 5.5 5.5 1.0 1.0 1.0 Dividend yield 4.3 % 2.6 % 3.1 % 4.2 % 3.1 % 2.0 % Weighted-average fair value $ 5.03 $ 17.07 $ 12.42 $ 13.97 $ 16.68 $ 15.29 The information set forth in the following table covers options granted under our stock option plans: Weighted- Weighted- Number Average Average of Remaining Exercise Shares Contractual Life Price (in thousands) (in years) (per share) Options outstanding at the beginning of the year 2,881 $ 54.21 Granted 1,069 21.61 Exercised (165) 23.36 Expired or cancelled (245) 34.47 Options outstanding at January 30, 2021 3,540 5.7 $ 47.17 Options exercisable at January 30, 2021 2,403 4.2 $ 55.81 The total fair value of options vested was $6 million during both 2020 and 2019. During the year ended January 30, 2021, we received $4 million in cash from option exercises and recognized a related tax benefit of $1 million. The total intrinsic value of options exercised (the difference between the market price of the Company’s common stock on the exercise date and the price paid by the optionee to exercise the option) is presented below: ($ in millions) 2020 2019 2018 Exercised $ 3 $ 5 $ 4 The aggregate intrinsic value for stock options outstanding, and those outstanding and exercisable (the difference between the closing stock price on the last trading day of the period and the exercise price of the options, multiplied by the number of in-the-money stock options) is presented below: ($ in millions) 2020 Outstanding $ 24 Outstanding and exercisable $ 5 As of January 30, 2021, there was $ 3 million of total unrecognized compensation cost related to nonvested stock options, which is expected to be recognized over a remaining weighted-average period of 1.4 years. The following table summarizes information about stock options outstanding and exercisable at January 30, 2021: Options Outstanding Options Exercisable Weighted- Average Weighted- Weighted- Remaining Average Average Range of Exercise Number Contractual Exercise Number Exercise Prices Outstanding Life Price Exercisable Price (in thousands, except prices per share and contractual life) $18.84 to $23.09 937 8.7 $ 21.55 60 $ 20.72 $24.75 to $36.51 329 2.3 33.01 326 32.98 $44.78 to $45.75 537 4.9 44.91 447 44.94 $46.64 to $62.11 869 5.0 60.12 703 60.50 $63.33 to $73.21 868 4.8 68.60 867 68.60 3,540 5.7 $ 47.17 2,403 $ 55.81 Restricted Stock Units Restricted stock units (“RSU”) may be awarded to certain officers and key employees. Additionally, RSU awards are made to employees in connection with our long-term incentive program, and to nonemployee directors. Each RSU award represents the right to receive one share of our common stock provided that the performance and vesting conditions are satisfied. Generally, awards fully vest after the passage of time, typically three years . However, RSU awards made in connection with our performance-based long-term incentive program are earned after the attainment of certain performance metrics and, with regards to certain awards, vest after an additional one-year period. No dividends are paid or accumulated on any RSU awards. Compensation expense is recognized using the market value at the date of grant and is amortized over the vesting period, provided the recipient continues to be employed. RSU activity is summarized as follows: Weighted-Average Number Remaining Weighted-Average of Contractual Grant Date Shares Life Fair Value (in thousands) (in years) (per share) Nonvested at beginning of year 936 $ 49.25 Granted (1) 639 28.69 Vested (121) 53.27 Performance adjustment (2) 51 Forfeited (157) 38.41 Nonvested at January 30, 2021 1,348 1.3 $ 38.48 Aggregate value ($ in millions) $ 52 (1) Included in the units granted are approximately 0.2 million performance-based RSUs. The number of performance-based RSUs that are ultimately earned may vary from 0% to 200% of target depending on the achievement relative to predefined financial performance targets. (2) This represents adjustments made to performance-based RSU awards and reflect changes in estimates based upon our current performance against predefined financial targets. The total fair value of awards vested was $6 million, $5 million, and $7 million, for 2020, 2019, and 2018, respectively. At January 30, 2021, there was $23 million of total unrecognized compensation cost related to nonvested RSU awards. |
Shareholder Rights Plan
Shareholder Rights Plan | 12 Months Ended |
Jan. 30, 2021 | |
Shareholder Rights Plan | |
Shareholder Rights Plan | 21. Shareholder Rights Plan On December 7, 2020, our Board of Directors adopted a shareholder rights plan and declared a dividend distribution of one right (a "Right") for each outstanding share of common stock to shareholders of record at the close of business on December 18, 2020. Each Right entitles the registered holder to purchase from the Company, when exercisable, a unit consisting of one one -thousandth (1/1,000) of a share of Series C Junior Participating Preferred Stock, par value $1.00 per share, of the Company, at a purchase price of $210.00 per unit, subject to adjustment. The description and complete terms of the Rights are set forth in a Rights Agreement (the "Rights Agreement"), dated as of December 7, 2020, between the Company and Computershare Trust Company, N.A., as rights agent. Initially, the Rights will not be exercisable and will be attached to all outstanding shares of our common stock. In the event that a person, either individually or with or through certain affiliated or associated persons, acquires beneficial ownership of 20 percent or more of our then outstanding common stock, subject to certain exceptions, or following the commencement of a tender offer or exchange offer that would result in a person becoming an Acquiring Person (as defined in the Rights Agreement), the Rights will become exercisable. Once exercisable, each holder of a Right (other than the Acquiring Person, whose Rights will become null and void), will be entitled to purchase additional shares of our common stock at a 50 percent discount. The Board may redeem the Rights at a price of $0.001 per Right, subject to adjustment. The Rights will expire on December 7, 2021, unless the Rights are earlier redeemed, exchanged or terminated. |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Jan. 30, 2021 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | 22. Legal Proceedings Legal proceedings pending against the Company or its consolidated subsidiaries consist of ordinary, routine litigation, including administrative proceedings, incidental to the business of the Company or businesses that have been sold or discontinued by the Company in past years. These legal proceedings include commercial, intellectual property, customer, environmental, and employment-related claims. We do not believe that the outcome of any such legal proceedings pending against the Company or its consolidated subsidiaries, as described above, would have a material adverse effect on our consolidated financial position, liquidity, or results of operations, taken as a whole, based upon current knowledge and taking into consideration current accruals. Litigation is inherently unpredictable. Judgments could be rendered or settlements made that could adversely affect the Company’s operating results or cash flows in a particular period. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Jan. 30, 2021 | |
Quarterly Results (Unaudited) [Abstract] | |
Quarterly Results (Unaudited) | 23. Quarterly Results (Unaudited) ($ in millions) 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter Fiscal Year Sales 2020 1,176 2,077 2,106 2,189 $ 7,548 2019 2,078 1,774 1,932 2,221 $ 8,005 Gross margin (1) 2020 271 538 650 724 $ 2,183 2019 689 534 620 700 $ 2,543 Operating profit (2) 2020 (105) 69 178 161 $ 303 2019 228 81 164 176 $ 649 Net income (3), (4) 2020 (110) 45 265 123 $ 323 2019 172 60 125 134 $ 491 Basic earnings per share (5) 2020 (1.06) 0.43 2.54 1.18 $ 3.10 2019 1.53 0.55 1.16 1.28 $ 4.52 Diluted earnings per share (5) 2020 (1.06) 0.43 2.52 1.17 $ 3.08 2019 1.52 0.55 1.16 1.27 $ 4.50 (1) Gross margin represents sales less cost of sales. Cost of sales includes: the cost of merchandise, freight, distribution costs including related depreciation expense, shipping and handling, occupancy and buyers’ compensation. Occupancy costs include rent (including fixed common area maintenance charges and other fixed non-lease components), real estate taxes, general maintenance, and utilities. (2) Operating profit represents income before income taxes, net interest income and non-operating income. (3) During the first and fourth quarters of 2020, we recorded impairment charges totaling $15 million and $66 million, respectively. During the fourth quarter of 2019, we recorded impairment charges of $48 million. See Note 3, Impairment and Other Charges for additional information. (4) During the third quarter of 2020, we recorded a benefit of $190 million from one of our minority investments. See Note 4, Other Income for further information. (5) Quarterly income per share amounts may not total to the annual amount due to changes in weighted-average shares outstanding during the year . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Jan. 30, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Foot Locker, Inc. and its domestic and international subsidiaries, as well as any entities in which we have a controlling voting interest that are required to be consolidated. All significant intercompany amounts have been eliminated. As used in these Notes to Consolidated Financial Statements the terms “Foot Locker,” “Company,” “we,” “our,” and “us” refer to Foot Locker, Inc. and its consolidated subsidiaries. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. |
COVID-19 Pandemic | COVID-19 Pandemic In March 2020, the World Health Organization designated COVID-19 a pandemic. COVID-19 had a significant effect on overall economic conditions in nearly all regions around the world and resulted in travel restrictions and business slowdowns or shutdowns. As a result of the COVID-19 pandemic, we temporarily closed our stores in North America, EMEA (Europe, Middle East, and Africa), and Asia Pacific throughout 2020 but primarily during the first and second quarters. We have been and will continue to operate in-store fulfillment activities to mitigate the effect of the temporary closures caused by COVID-19. We considered the ongoing effects of the COVID-19 pandemic on our operations, as well as the assumptions and estimates used when preparing our financial statements, including inventory valuation, income taxes, and evaluating the impairment of long-lived tangible assets and right-of-use lease assets. These assumptions and estimates may change as the current situation evolves or new events occur and additional information is obtained. If the economic conditions caused by COVID-19 worsen beyond what is currently estimated by management, such future changes may have an adverse effect on our results of operations, financial position, and liquidity. |
Reporting Year | Reporting Year Our fiscal year end is a 52-week or 53-week period ending the Saturday closest to the last day in January. Fiscal year 2020, 2019, and 2018 represented the 52 weeks ended January 30, 2021, February 1, 2020, and February 2, 2019, respectively. References to years in this annual report relate to fiscal years rather than calendar years. |
Revenue Recognition | Revenue Recognition Store revenue is recognized at the point of sale and includes merchandise, net of returns, and excludes taxes. Revenue from layaway sales is recognized when the customer receives the product, rather than when the initial deposit is paid. We recognize revenue for merchandise that is shipped to our customers from our distribution centers and stores upon shipment as the customer has control of the product upon shipment. We account for shipping and handling as a fulfillment activity. We accrue the cost and recognize revenue for these activities upon shipment date, therefore total sales recognized includes shipping and handling fees. |
Gift Cards | Gift Cards We sell gift cards which do not have expiration dates. Revenue from gift card sales is recorded when the gift cards are redeemed by customers. Gift card breakage is recognized as revenue in proportion to the pattern of rights exercised by the customer, unless there is a legal obligation to remit the value of unredeemed gift cards to the relevant jurisdictions. The table below presents the activity of our gift card liability balance: ($ in millions) 2020 2019 Gift card liability at beginning of year $ 35 $ 35 Redemptions (118) (105) Breakage recognized in sales (8) (7) Activations 131 112 Foreign currency fluctuations 1 — Gift card liability at end of year $ 41 $ 35 We elected not to disclose the information about remaining performance obligations since the amount of gift cards redeemed after 12 months is not significant for both 2020 and 2019. |
Advertising Costs and Sales Promotion | Advertising Costs and Sales Promotion Advertising and sales promotion costs are expensed at the time the advertising or promotion takes place, net of reimbursements for cooperative advertising. Cooperative advertising reimbursements earned for the launch and promotion of certain products agreed upon with vendors are recorded in the same period as the associated expenses are incurred. Digital advertising costs are expensed as incurred, net of reimbursements for cooperative advertising. Digital advertising includes search engine marketing, such as display ads and keyword search terms, and other various forms of digital advertising. Reimbursements received in excess of expenses incurred related to specific, incremental, and identifiable advertising costs are accounted for as a reduction to the cost of merchandise and are reflected in cost of sales when the merchandise is sold. Advertising costs, including digital advertising, which are included as a component of SG&A, were as follows: ($ in millions) 2020 2019 2018 Advertising expenses (1) $ 69 $ 91 $ 111 Digital advertising expenses 89 95 96 Cooperative advertising reimbursements (14) (20) (25) Net advertising expense $ 144 $ 166 $ 182 (1) Effective with the adoption of the new lease standard in 2019, advertising costs that are required by some of our mall-based leases are recorded as an element of rent expense. These costs were $14 million for 2018. |
Catalog Costs | Catalog Costs Catalog costs, which are primarily comprised of paper, printing, and postage, are expensed at the time the catalogs are distributed. Cooperative reimbursements earned for the promotion of certain products are agreed upon with vendors and are recorded in the same period as the associated catalog expenses are recorded. Catalog costs, which are included as a component of SG&A, were as follows: ($ in millions) 2020 2019 2018 Catalog costs $ 7 $ 15 $ 18 |
Share-Based Compensation | Share-Based Compensation We recognize compensation expense for share-based awards based on the grant date fair value of those awards. We use the Black-Scholes option-pricing model to determine the fair value of stock options, which requires the input of subjective assumptions regarding the expected term, expected volatility, and risk-free interest rate. See Note 20, Share-Based Compensation, for information on the assumptions used to calculate the fair value of stock options. Share-based compensation expense is recognized on a straight-line basis over the requisite service period for each vesting tranche of the award. Upon exercise of stock options, issuance of restricted stock or units, or issuance of shares under the employee stock purchase plan, we will issue authorized but unissued common stock or use common stock held in treasury. Awards of restricted stock units cliff vest after the passage of time, generally three years . Performance-based restricted stock unit awards are earned on achievement of pre-established goals and with regards to certain awards, vest after an additional one-year period. |
Earnings Per Share | Earnings Per Share We account for earnings per share (“EPS”) using the treasury stock method. Basic EPS is computed by dividing net income for the period by the weighted-average number of common shares outstanding at the end of the period. Diluted EPS reflects the weighted-average number of common shares outstanding during the period used in the basic EPS computation plus dilutive common stock equivalents. The computation of basic and diluted EPS is as follows: (in millions, except per share data) 2020 2019 2018 Net income $ 323 $ 491 $ 541 Weighted-average common shares outstanding 104.3 108.7 115.6 Dilutive effect of potential common shares 0.8 0.4 0.5 Weighted-average common shares outstanding assuming dilution 105.1 109.1 116.1 Earnings per share - basic $ 3.10 $ 4.52 $ 4.68 Earnings per share - diluted $ 3.08 $ 4.50 $ 4.66 Anti-dilutive share-based awards excluded from diluted calculation 2.5 2.2 1.9 Contingently issuable shares of 0.4 million for 2020, 0.5 million for 2019, and 0.9 million for 2018, have not been included as the vesting conditions have not been satisfied. These shares relate to restricted stock unit awards issued in connection with our long-term incentive program. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash Cash consists of funds held on hand and in bank accounts. Cash equivalents include amounts on demand with banks and all highly liquid investments with original maturities of three months or less, including money market funds. Additionally, amounts due from third-party credit card processors for the settlement of debit and credit card transactions are included as cash equivalents as they are generally collected within three business days. We present book overdrafts, representing checks issued but still outstanding in excess of bank balances, as part of accounts payable. Restricted cash represents cash that is restricted as to withdrawal or use under the terms of various agreements. Restricted cash includes amounts held in escrow in connection with various leasing arrangements in Europe, and deposits held in insurance trusts to satisfy the requirement to collateralize part of the self-insured workers’ compensation and liability claims. The following table provides the reconciliation of cash, cash equivalents, and restricted cash, as reported on our consolidated statements of cash flows: January 30, February 1, February 2, ($ in millions) 2021 2020 2019 Cash and cash equivalents (1) $ 1,680 $ 907 $ 891 Restricted cash included in other current assets (2) 8 6 59 Restricted cash included in other non-current assets 30 29 31 Cash, cash equivalents, and restricted cash $ 1,718 $ 942 $ 981 (1) Includes cash equivalents of $503 million, $366 million, and $476 million for the years ended January 30, 2021, February 1, 2020, and February 2, 2019, respectively. (2) The remaining balance of the qualified settlement fund related to the pension matter of $55 million was included in the current portion of restricted cash as of February 2, 2019 and was contributed to the pension plan in 2019. |
Merchandise Inventories and Cost of Sales | Merchandise Inventories and Cost of Sales Merchandise inventories for our stores are valued at the lower of cost or market using the retail inventory method. Cost for retail stores is determined on the last-in, first-out (“LIFO”) basis for domestic inventories and on the first-in, first-out (“FIFO”) basis for international inventories. Merchandise inventories of the e-commerce business are valued at net realizable value using weighted-average cost, which approximates FIFO. The retail inventory method is used by retail companies to value inventories at cost and calculate gross margins due to its practicality. Under the retail inventory method, cost is determined by applying a cost-to-retail percentage across groupings of similar items, known as departments. The cost-to-retail percentage is applied to ending inventory at its current owned retail valuation to determine the cost of ending inventory on a department basis. We provide reserves based on current selling prices when the inventory has not been marked down to market. Transportation, distribution center, and sourcing costs are capitalized in merchandise inventories. We expense the freight associated with transfers between our store locations in the period incurred. We maintain an accrual for shrinkage based on historical rates. Cost of sales is comprised of the cost of merchandise, as well as occupancy, buyers’ compensation, and shipping and handling costs. The cost of merchandise is recorded net of amounts received from suppliers for damaged product returns, markdown allowances, and volume rebates, as well as cooperative advertising reimbursements received in excess of specific, incremental advertising expenses. |
Minority Investments | Minority Investments We use the equity method to account for investments in which we have the ability to exercise significant influence over the investee’s operating and financial policies, or in which we hold a partnership or limited liability company interest in an entity with specific ownership accounts, unless we have virtually no influence over the investee’s operating and financial policies. As of January 30, 2021, and February 1, 2020, we had $15 million and $8 million, respectively, of investments which are accounted for under the equity method. Our investments that are not accounted for under the equity method are measured at cost adjusted for changes in observable prices minus impairment, under the practicability exception. As of January 30, 2021, and February 1, 2020, we had $322 million and $134 million, respectively, of investments which are accounted for under this method. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation and amortization. Significant additions and improvements to property and equipment are capitalized. Major renewals or replacements that substantially extend the useful life of an asset are capitalized. Maintenance and repairs are expensed as incurred. Depreciation and amortization are computed on a straight-line basis over the following estimated useful lives: Buildings Maximum of 50 years Store leasehold improvements Shorter of the asset useful life or expected term of the lease Furniture, fixtures, and equipment 3 ‑ 10 years Software 2 ‑ 5 years |
Internal-Use Software Development Costs | Internal-Use Software Development Costs We capitalize certain external and internal computer software and software development costs incurred during the application development stage. The application development stage generally includes software design and configuration, coding, testing, and installation activities. Capitalized costs include only external direct cost of materials and services consumed in developing or obtaining internal-use software, and payroll and payroll-related costs for employees who are directly associated with and devote time to the internal-use software project. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended use. We generally amortize these costs on a straight-line basis over a period not to exceed five years. Training and maintenance costs are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Capitalized software, net of accumulated amortization, is included as a component of Property and equipment, net and was $93 million and $80 million at January 30, 2021 and February 1, 2020, respectively. |
Impairment of Long-Lived Tangible Assets and Right-of-Use Assets | Impairment of Long-Lived Tangible Assets and Right-of-Use Assets We perform an impairment review when circumstances indicate that the carrying value of long-lived tangible assets and right-of-use assets may not be recoverable (“a triggering event”). Our policy in determining whether a triggering event exists comprises the evaluation of measurable operating performance criteria and qualitative measures at the lowest level for which identifiable cash flows are largely independent of cash flows for other assets and liabilities, which is generally at the store level. We also evaluate triggering events at the banner level. In evaluating potential store level impairment, we compare future undiscounted cash flows expected to result from the use of the asset group to the carrying amount of the asset group. The future cash flows are estimated predominately based on our historical performance and long-range strategic plans. If the carrying amount of the asset group exceeds the estimated undiscounted future cash flows, we measure the amount of the impairment by comparing the carrying amount of the asset group with its estimated fair value. The estimation of fair value is measured by discounting expected future cash flows using a risk adjusted discount rate and using current market-based information for right-of-use assets. We estimate fair value based on the best information available using estimates, judgments, and projections as considered necessary. |
Leases | Leases On February 3, 2019, we adopted the new lease accounting standard. We applied the modified retrospective method of adoption and therefore, results for 2020 and 2019 are presented under the new guidance, while 2018 has not been adjusted. Lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term for those arrangements where there is an identified asset and the contract conveys the right to control its use. The lease term includes options to extend or terminate a lease only when we are reasonably certain that we will exercise that option. The right-of-use asset is measured at the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, initial direct costs, and any tenant improvement allowances received. For operating leases, right-of-use assets are reduced over the lease term by the straight-line lease expense recognized less the amount of accretion of the lease liability determined using the effective interest method. We combine lease components and non-lease components. Given our policy election to combine lease and non-lease components, we also consider fixed common area maintenance (“CAM”) part of our fixed future lease payments; therefore, fixed CAM is also included in our lease liability. We recognize rent expense for operating leases as of the possession date for store leases or the commencement of the agreement for a non-store lease. Rental expense, inclusive of rent holidays, concessions, and tenant allowances are recognized over the lease term on a straight-line basis. Contingent payments based upon sales and future increases determined by inflation related indices cannot be estimated at the inception of the lease and, accordingly, are charged to operations as incurred. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rates based on the remaining lease term to determine the present value of future lease payments. Our incremental borrowing rate for a lease is the rate of interest we would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Leases with an initial term of 12 months or less are not recorded on the balance sheet. We recognize lease expense for short-term leases on a straight-line basis over the lease term. |
Impairment of Goodwill and Other Intangible Assets | Impairment of Goodwill and Other Intangible Assets Goodwill and intangible assets with indefinite lives are reviewed for impairment annually during the first quarter of each fiscal year or more frequently if impairment indicators arise. The review of goodwill impairment consists of either using a qualitative approach to determine whether it is more likely than not that the fair value of the assets is less than their respective carrying values or a one-step quantitative impairment test. In performing the qualitative assessment, we consider many factors in evaluating whether the carrying value of goodwill may not be recoverable, including declines in our stock price and market capitalization in relation to the book value of the Company and macroeconomic conditions affecting retail. If, based on the results of the qualitative assessment, it is concluded that it is not more likely than not that the fair value of a reporting unit exceeds its carrying value, additional quantitative impairment testing is performed. The quantitative test requires that the carrying value of each reporting unit be compared with its estimated fair value. If the carrying value of a reporting unit is greater than its fair value, a goodwill impairment charge will be recorded for the difference (up to the carrying value of goodwill). We use a discounted cash flow approach to determine the fair value of a reporting unit. The determination of discounted cash flows of the reporting units and assets and liabilities within the reporting units requires significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to, the discount rate, terminal growth rates, earnings before depreciation and amortization, and capital expenditures forecasts. Due to the inherent uncertainty involved in making these estimates, actual results could differ from those estimates. We evaluate the merits of each significant assumption, both individually and in the aggregate, used to determine the fair value of the reporting units, as well as the fair values of the corresponding assets and liabilities within the reporting units. For our 2020 annual impairment review, we concluded the fair value of each reporting unit exceeded its carrying value. Goodwill is net of accumulated impairment charges of $167 million for all periods presented. Intangible assets with indefinite lives are tested for impairment if impairment indicators arise and, at a minimum, annually. The impairment review for intangible assets with indefinite lives consists of either performing a qualitative or a quantitative assessment. If the results of the qualitative assessment indicate that it is more likely than not that the fair value of the indefinite-lived intangible is less than its carrying amount, or if we elect to proceed directly to a quantitative assessment, we calculate the fair value using a discounted cash flow method, based on the relief from royalty method, and compare the fair value to the carrying value to determine if the asset is impaired. Intangible assets that are determined to have finite lives are amortized over their useful lives and are measured for impairment only when events or changes in circumstances indicate that the carrying value may be impaired. |
Derivative Financial Instruments | Derivative Financial Instruments All derivative financial instruments are recorded in our Consolidated Balance Sheets at their fair values. For derivatives designated as a hedge, and effective as part of a hedge transaction, the effective portion of the gain or loss on the hedging derivative instrument is reported as a component of other comprehensive income/loss or as a basis adjustment to the underlying hedged item and reclassified to earnings in the period in which the hedged item affects earnings. The effective portion of the gain or loss on hedges of foreign net investments is generally not reclassified to earnings unless the net investment is disposed of. To the extent derivatives do not qualify or are not designated as hedges, or are ineffective, their changes in fair value are recorded in earnings immediately, which may subject us to increased earnings volatility. |
Income Taxes | Income Taxes We account for our income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and the tax basis of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized for tax credits and net operating loss carryforwards, reduced by a valuation allowance, which is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize net deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. A taxing authority may challenge positions that we adopted in our income tax filings. Accordingly, we may apply different tax treatments for transactions in filing our income tax returns than for income tax financial reporting. We regularly assess our tax positions for such transactions and record reserves for those differences when considered necessary. Tax positions are recognized only when it is more likely than not, based on technical merits, that the positions will be sustained upon examination. Tax positions that meet the more-likely-than-not threshold are measured using a probability weighted approach as the largest amount of tax benefit that is greater than fifty percent likely of being realized upon settlement. Whether the more-likely-than-not recognition threshold is met for a tax position is a matter of judgment based on the individual facts and circumstances of that position evaluated in light of all available evidence. We recognize interest and penalties related to unrecognized tax benefits within income tax expense in the accompanying Consolidated Statement of Operations. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheet. |
Pension and Postretirement Obligations | Pension and Postretirement Obligations Pension benefit obligations and net periodic pension costs are calculated using actuarial assumptions. Two key assumptions used in accounting for pension liabilities and expenses are the discount rate and expected rate of return on plan assets. The discount rate for the U.S. plans is determined by reference to the Bond:Link interest rate model based upon a portfolio of highly-rated U.S. corporate bonds with individual bonds that are theoretically purchased to settle the plan’s anticipated cash outflows. The cash flows are discounted to their present value and an overall discount rate is determined. The discount rate selected to measure the present value of the Canadian benefit obligations was developed by using that plan’s bond portfolio indices, which match the benefit obligations. We measure our plan assets and benefit obligations using the month-end date that is closest to our fiscal year end. The expected return on plan assets assumption is derived using the current and expected asset allocation of the pension plan assets and considering historical as well as expected performance of those assets. |
Insurance Liabilities | Insurance Liabilities We are primarily self-insured for health care, workers’ compensation, and general liability costs. Accordingly, provisions are made for actuarially determined estimates of discounted future claim costs for such risks, for the aggregate of claims reported, and claims incurred but not yet reported. Self-insured liabilities totaled $13 million and $12 million for January 30, 2021 and February 1, 2020, respectively. Workers’ compensation and general liability reserves are discounted using a risk-free interest rate. Imputed interest expense related to these liabilities was not significant for any of the periods presented. |
Treasury Stock Retirement | Treasury Stock Retirement We periodically retire treasury shares that we acquire through share repurchases and return those shares to the status of authorized but unissued. We account for treasury stock transactions under the cost method. For each reacquisition of common stock, the number of shares and the acquisition price for those shares is added to the existing treasury stock count and total value. When treasury shares are retired, our policy is to allocate the excess of the repurchase price over the par value of shares acquired to both retained earnings and additional paid-in capital. The portion allocated to additional paid-in capital is determined by applying a percentage, which is determined by dividing the number of shares to be retired by the number of shares issued, to the balance of additional paid-in capital as of the retirement date. We retired 913,095 and 9,021,244 shares of our common stock held in treasury during 2020 and 2019, respectively. The shares were returned to the status of authorized but unissued. As a result, treasury stock decreased by $34 million and $368 million as of January 30, 2021 and February 1, 2020, respectively. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of our international operations is the applicable local currency. The translation of the applicable foreign currency into U.S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for revenue and expense accounts using the weighted-average rates of exchange prevailing during the year. The unearned gains and losses resulting from such translation are included as a separate component of accumulated other comprehensive loss (“AOCL”) within shareholders’ equity. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements On February 2, 2020, we adopted Financial Accounting Standards Board (“FASB”) guidance on the accounting for implementation costs of a cloud computing arrangement that is considered to be a service contract, that requires companies to follow the guidance for internal-use software to determine which costs to capitalize in a cloud computing arrangement that is a service contract. Under this guidance, such implementation costs will be capitalized in Other assets on the Consolidated Balance Sheet, with the related amortization presented in Selling, general and administrative expenses on the Consolidated Statement of Operations. This guidance was applied prospectively to implementation costs incurred after February 2, 2020. The adoption of this guidance did not have a significant effect on our consolidated financial statements. On February 2, 2020, we adopted FASB’s updated guidance on the accounting for performing goodwill impairment tests. This update eliminates the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. In testing goodwill for impairment, an entity may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment indicates that goodwill impairment is more likely than not, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit to its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit. In January 2021, we adopted FASB’s amended guidance that eliminates, adds, and clarifies certain disclosure requirements for defined benefit pension or other postretirement plans. The eliminated disclosures include the amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit costs over the next fiscal year and the effects of a one-percentage-point change in assumed health care cost trend rates on the aggregate of the service and interest cost components of net periodic benefit costs and the benefit obligation for postretirement health care benefits. The new disclosures require an explanation of significant gains and losses related to changes in benefit obligations. This standard is effective for fiscal years beginning after December 15, 2020 and allows for early adoption. The amendments are required to be applied retrospectively. The adoption of this guidance did not have a significant effect on our consolidated financial statements. Other recently issued accounting pronouncements did not, or are not believed by management to, have a material effect on our present or future consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted All recently issued accounting pronouncements are not expected to have a material effect on the consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Significant Accounting Policies [Line Items] | |
Activity of Gift Card Liability Balance | The table below presents the activity of our gift card liability balance: ($ in millions) 2020 2019 Gift card liability at beginning of year $ 35 $ 35 Redemptions (118) (105) Breakage recognized in sales (8) (7) Activations 131 112 Foreign currency fluctuations 1 — Gift card liability at end of year $ 41 $ 35 |
Computation of Basic and Diluted Earnings Per Share | (in millions, except per share data) 2020 2019 2018 Net income $ 323 $ 491 $ 541 Weighted-average common shares outstanding 104.3 108.7 115.6 Dilutive effect of potential common shares 0.8 0.4 0.5 Weighted-average common shares outstanding assuming dilution 105.1 109.1 116.1 Earnings per share - basic $ 3.10 $ 4.52 $ 4.68 Earnings per share - diluted $ 3.08 $ 4.50 $ 4.66 Anti-dilutive share-based awards excluded from diluted calculation 2.5 2.2 1.9 |
Reconciliation of Cash and Cash Equivalents | The following table provides the reconciliation of cash, cash equivalents, and restricted cash, as reported on our consolidated statements of cash flows: January 30, February 1, February 2, ($ in millions) 2021 2020 2019 Cash and cash equivalents (1) $ 1,680 $ 907 $ 891 Restricted cash included in other current assets (2) 8 6 59 Restricted cash included in other non-current assets 30 29 31 Cash, cash equivalents, and restricted cash $ 1,718 $ 942 $ 981 (1) Includes cash equivalents of $503 million, $366 million, and $476 million for the years ended January 30, 2021, February 1, 2020, and February 2, 2019, respectively. (2) The remaining balance of the qualified settlement fund related to the pension matter of $55 million was included in the current portion of restricted cash as of February 2, 2019 and was contributed to the pension plan in 2019. |
Estimated Useful Lives | Depreciation and amortization are computed on a straight-line basis over the following estimated useful lives: Buildings Maximum of 50 years Store leasehold improvements Shorter of the asset useful life or expected term of the lease Furniture, fixtures, and equipment 3 ‑ 10 years Software 2 ‑ 5 years |
Advertising Expense [Member] | |
Significant Accounting Policies [Line Items] | |
Costs Included as Component of Selling, General and Administrative Expenses | Advertising costs, including digital advertising, which are included as a component of SG&A, were as follows: ($ in millions) 2020 2019 2018 Advertising expenses (1) $ 69 $ 91 $ 111 Digital advertising expenses 89 95 96 Cooperative advertising reimbursements (14) (20) (25) Net advertising expense $ 144 $ 166 $ 182 (1) Effective with the adoption of the new lease standard in 2019, advertising costs that are required by some of our mall-based leases are recorded as an element of rent expense. These costs were $14 million for 2018. |
Catalog Expense [Member] | |
Significant Accounting Policies [Line Items] | |
Costs Included as Component of Selling, General and Administrative Expenses | Catalog costs, which are included as a component of SG&A, were as follows: ($ in millions) 2020 2019 2018 Catalog costs $ 7 $ 15 $ 18 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Segment Information [Abstract] | |
Sales and Division Operating Results for Reportable Segments | The following table summarizes our results: ($ in millions) 2020 2019 2018 Division profit $ 491 $ 788 $ 808 Less: Impairment and other charges (1) 117 65 37 Less: Corporate expense (2) 71 74 72 Income from operations 303 649 699 Interest (expense) income, net (7) 11 9 Other income, net 198 12 5 Income before income taxes $ 494 $ 672 $ 713 (1) See Note 3, Impairment and Other Charges for additional information on these amounts. (2) Corporate expense for all years presented reflects the reallocation of expense between corporate and the operating divisions. Based upon annual internal studies of corporate expense, the allocation of such expenses to the operating divisions was increased by $28 million for 2020, $32 million for 2019, and $40 million for 2018, thereby reducing corporate expense. |
Disaggregation of Revenue | ($ in millions) 2020 2019 2018 Sales Stores $ 5,447 $ 6,720 $ 6,714 Direct-to-customers 2,101 1,285 1,225 Total sales $ 7,548 $ 8,005 $ 7,939 |
Sales and Long-Lived Asset Information by Geographic Area | ($ in millions) 2020 2019 2018 Sales by Geography United States $ 5,581 $ 5,691 $ 5,647 International 1,967 2,314 2,292 Total sales $ 7,548 $ 8,005 $ 7,939 Long-Lived Assets United States $ 2,218 $ 2,479 $ 602 International 1,286 1,244 234 Total long-lived assets $ 3,504 $ 3,723 $ 836 |
Segment Information | Depreciation and Amortization Capital Expenditures (1) Total Assets ($ in millions) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Division $ 152 $ 160 $ 160 $ 88 $ 105 $ 112 $ 5,159 $ 5,523 $ 2,900 Corporate 24 19 18 71 82 75 1,884 1,066 920 Total $ 176 $ 179 $ 178 $ 159 $ 187 $ 187 $ 7,043 $ 6,589 $ 3,820 (1) Represents cash capital expenditures for all years presented . |
Impairment and Other Charges (T
Impairment and Other Charges (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Impairment and Other Charges [Abstract] | |
Schedule of Impairment and Other Charges | ($ in millions) 2020 2019 2018 Impairment of long-lived assets $ 77 $ 37 $ 4 Runners Point shut down 19 — — Losses related to social unrest 8 — — Impairment of Investments 4 11 — EMEA reorganization 4 — — Eastbay reorganization 3 — — Pension litigation related charges 2 4 18 Lease termination costs — 13 — Other intangible asset impairments — — 15 Total impairment and other charges $ 117 $ 65 $ 37 |
Schedule of Reorganization Accrual | The table below presents a rollforward of our restructuring liability, which is recorded in Accrued and other liabilities on the Consolidated Balance Sheets. The remaining restructuring liability at January 30, 2021, which primarily relates to severance payments, is expected to be substantially paid within the next twelve months. ($ in millions) Runners Point Eastbay EMEA Total Balance as of February 1, 2020 $ — $ — $ — $ — Charges 19 3 4 26 Payments (13) (3) — (16) Balance as of January 30, 2021 $ 6 $ — $ 4 $ 10 |
Merchandise Inventories (Tables
Merchandise Inventories (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Merchandise Inventories [Abstract] | |
Schedule of Merchandise Inventories | ($ in millions) January 30, February 1, LIFO inventories $ 544 $ 810 FIFO inventories 379 398 Total merchandise inventories $ 923 $ 1,208 |
Other Current Assets (Table)
Other Current Assets (Table) | 12 Months Ended |
Jan. 30, 2021 | |
Other Current Assets [Abstract] | |
Schedule of Other Current Assets | ($ in millions) January 30, February 1, Net receivables $ 124 $ 100 Other prepaid expenses 56 46 Prepaid income taxes 20 48 Prepaid rent 14 55 Restricted cash 8 6 Income taxes receivable 1 1 Deferred tax costs — 9 Other 9 6 $ 232 $ 271 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Property and Equipment, Net [Abstract] | |
Schedule of Property and Equipment | ($ in millions) January 30, February 1, Owned properties: Land $ 4 $ 4 Buildings 52 54 Furniture, fixtures, equipment, and software development costs 1,274 1,203 1,330 1,261 Less: accumulated depreciation (907) (818) $ 423 $ 443 Finance leases: Assets under finance leases $ 11 $ — Less: accumulated amortization (1) — $ 10 $ — Alterations to leased and owned buildings: Cost $ 974 $ 937 Less: accumulated amortization (619) (556) $ 355 $ 381 $ 788 $ 824 |
Other Intangible Assets, Net (T
Other Intangible Assets, Net (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Other Intangible Assets, Net [Abstract] | |
Components of Intangible Assets | January 30, 2021 February 1, 2020 Gross Accum. Net Life in Gross Accum. Net ($ in millions) value amort. value Years (2) value amort. value Amortized intangible assets: (1) Lease acquisition costs $ 121 $ (116) $ 5 9.9 $ 115 $ (108) $ 7 Trademarks / trade names 20 (17) 3 20.0 20 (16) 4 $ 141 $ (133) $ 8 14.8 $ 135 $ (124) $ 11 Indefinite life intangible assets: (1) Trademarks / trade names $ 9 $ 9 Other intangible assets, net $ 17 $ 20 (1) The change in the ending balances also reflect the effect of foreign currency fluctuations due primarily to the movements of the euro in relation to the U.S. dollar. (2) Represents the weighted-average useful life as of January 30, 2021 and excludes those assets that are fully amortized. |
Amortization Expense | Amortization expense recorded is as follows: ($ in millions) 2020 2019 2018 Amortization expense $ 3 $ 3 $ 4 |
Estimated Future Expected Amortization Expense for Finite Life Intangible Assets | Estimated future amortization expense for finite lived intangibles for the next five years is as follows: ($ in millions) 2021 $ 2 2022 2 2023 2 2024 1 2025 1 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Other Assets [Abstract] | |
Schedule of Other Assets | ($ in millions) January 30, February 1, Restricted cash $ 30 $ 29 Pension asset 3 3 Auction rate security 7 7 Other 50 42 $ 90 $ 81 |
Accrued and Other Liabilities (
Accrued and Other Liabilities (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Accrued and Other Liabilities [Abstract] | |
Schedule of Accrued and Other Liabilities | ($ in millions) January 30, February 1, Taxes other than income taxes $ 96 $ 57 Income taxes payable 81 4 Other payroll and payroll related costs, excluding taxes 73 64 Incentive bonuses 72 28 Customer deposits 49 45 Rent related costs 40 20 Property and equipment (1) 33 40 Advertising 25 21 Other 91 64 $ 560 $ 343 (1) Accruals for property and equipment are excluded from the Statements of Cash Flows for all years presented. |
Long-Term Debt and Obligation_2
Long-Term Debt and Obligations Under Finance Leases (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Long-Term Debt and Obligations Under Finance Leases [Abstract] | |
Schedule of Debt | The components of long-term debt and obligations under finance leases are as follows: ($ in millions) January 30, February 1, 8.5% debentures payable January 2022 $ 98 $ 118 Unamortized gain related to interest rate swaps (1) 2 4 Obligations under finance leases 10 — $ 110 $ 122 Current portion of debt and obligations under finance leases 102 — $ 8 $ 122 (1) In 2009, we terminated an interest rate swap at a gain. This gain is being amortized as part of interest expense over the remaining term of the debt using the effective-yield method. |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Other Liabilities [Abstract] | |
Other Liabilities | ($ in millions) January 30, February 1, Pension benefits $ 38 $ 61 Income taxes 31 32 Postretirement benefits 12 10 Workers’ compensation and general liability reserves 8 8 Deferred taxes 18 2 Other 9 9 $ 116 $ 122 \ |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Leases [Abstract] | |
Summary of amounts recognized in Condensed Consolidated Balance Sheet | ($ in millions) January 30, February 1, Operating leases: Operating lease right-of-use assets $ 2,716 $ 2,899 Operating lease liabilities classified as current $ 580 $ 518 Operating lease liabilities classified as long-term 2,499 2,678 Total operating lease liabilities $ 3,079 $ 3,196 Finance leases: Property and equipment, net $ 10 $ — Current portion of debt and obligations under finance leases $ 2 $ — Long-term obligations under finance leases 8 — Total finance lease obligations $ 10 $ — |
Summary of other information related to operating leases | January 30, February 1, Weighted-average remaining lease term (years) Operating leases 6.7 7.3 Finance leases 4.4 — Weighted-average discount rate Operating leases 5.0 % 5.4 % Finance leases 4.1 % — % |
Summary of components of lease cost | ($ in millions) 2020 2019 Operating lease costs: $ 620 $ 668 Variable lease costs 290 332 Short-term lease costs 23 23 Sublease income (1) (1) Total operating lease costs $ 932 $ 1,022 Finance leases costs: Amortization of leased assets 1 — Total lease cost $ 933 $ 1,022 |
Summary of supplemental cash flow information related to leases | Supplemental cash flow information related to leases for the year ended January 30, 2021 and February 1, 2020 were as follows: ($ in millions) 2020 2019 Cash paid for amounts included in measurement of operating lease liabilities $ 626 $ 679 Right-of-use assets obtained in exchange for lease obligations 331 322 Cash paid for amounts included in measurement of finance lease liabilities 1 — Leases obtained in exchange for finance lease obligations 11 — |
Summary of maturities of lease liabilities | Maturities of lease liabilities as of January 30, 2021 are as follows: ($ in millions) Operating leases Finance leases Total 2021 $ 718 $ 3 $ 721 2022 624 3 627 2023 542 2 544 2024 458 2 460 2025 366 1 367 Thereafter 943 — 943 Total lease payments 3,651 11 3,662 Less: Interest 572 1 573 Total lease liabilities $ 3,079 $ 10 $ 3,089 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | AOCL, net of tax, is comprised of the following: ($ in millions) 2020 2019 2018 Foreign currency translation adjustments $ (64) $ (104) $ (84) Cash flow hedges (1) (3) — Unrecognized pension cost and postretirement benefit (266) (287) (286) $ (331) $ (394) $ (370) |
Changes in Accumulated Other Comprehensive Loss | The changes in AOCL for the year ended January 30, 2021 were as follows: Foreign Items Related Currency to Pension and Translation Cash Flow Postretirement ($ in millions) Adjustments Hedges Benefits Total Balance as of February 1, 2020 $ (104) $ (3) $ (287) $ (394) OCI before reclassification 40 2 (1) 41 Amortization of pension actuarial loss, net of tax — — 8 8 Pension remeasurement, net of tax — — 14 14 Other comprehensive income 40 2 21 63 Balance as of January 30, 2021 $ (64) $ (1) $ (266) $ (331) |
Reclassification from Accumulated Other Comprehensive Loss | Reclassifications to income from AOCL for the year ended January 30, 2021 were as follows: ($ in millions) Amortization of actuarial (gain) loss: Pension benefits- amortization of actuarial loss $ 12 Postretirement benefits- amortization of actuarial gain (1) Net periodic benefit cost (see Note 19) 11 Income tax (3) Total, net of tax $ 8 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Income Taxes [Abstract] | |
Domestic and International Pre-Tax Income | The domestic and international components of pre-tax income are as follows: ($ in millions) 2020 2019 2018 Domestic $ 647 $ 591 $ 629 International (153) 81 84 Total pre-tax income $ 494 $ 672 $ 713 |
Income Tax Provision | The income tax provision consists of the following: ($ in millions) 2020 2019 2018 Current: Federal $ 114 $ 106 $ 91 State and local 43 39 42 International 23 31 30 Total current tax provision 180 176 163 Deferred: Federal 6 (1) (4) State and local (2) — 1 International (13) 6 12 Total deferred tax (benefit) provision (9) 5 9 Total income tax provision $ 171 $ 181 $ 172 |
Reconciliation of Significant Differences between Federal Statutory Income Tax Rate and Effective Income Tax Rate on Pre-Tax Income from Continuing Operations | 2020 2019 2018 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % Deemed repatriation tax — — (2.7) Increase in valuation allowance 6.3 1.0 2.4 State and local income taxes, net of federal tax benefit 6.6 4.5 4.7 International income taxed at varying rates 4.3 1.9 1.6 Foreign tax credits (2.4) (2.0) (2.1) Domestic/foreign tax settlements (0.5) — (0.7) Federal tax credits (0.4) (0.2) (0.2) Other, net (0.4) 0.8 0.1 Effective income tax rate 34.5 % 27.0 % 24.1 % |
Significant Portions of Deferred Tax Accounts | Items that give rise to significant portions of our deferred tax assets and liabilities are as follows: ($ in millions) 2020 2019 Deferred tax assets: Tax loss/credit carryforwards and capital loss $ 120 $ 54 Employee benefits 52 40 Property and equipment 13 30 Goodwill and other intangible assets — 14 Operating leases - liabilities 811 844 Other 39 29 Total deferred tax assets $ 1,035 $ 1,011 Valuation allowance (76) (39) Total deferred tax assets, net $ 959 $ 972 Deferred tax liabilities: Merchandise inventories $ 62 $ 86 Operating leases - assets 746 794 Goodwill and other intangible assets 13 — Net investment gains 46 — Other 9 13 Total deferred tax liabilities $ 876 $ 893 Net deferred tax asset $ 83 $ 79 Balance Sheet caption reported in: Deferred taxes $ 101 $ 81 Other liabilities (18) (2) $ 83 $ 79 |
Unrecognized Tax Benefits Activity | ($ in millions) 2020 2019 2018 Unrecognized tax benefits at beginning of year $ 45 $ 34 $ 44 Foreign currency translation adjustments 3 (1) (3) Increases related to current year tax positions 2 3 2 Increases related to prior period tax positions 3 12 9 Decreases related to prior period tax positions — — (13) Settlements (1) (2) (3) Lapse of statute of limitations (5) (1) (2) Unrecognized tax benefits at end of year $ 47 $ 45 $ 34 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Financial Instruments and Risk Management [Abstract] | |
Fair Value of Derivative Contracts on Gross Basis, by Type of Contract | Balance Sheet January 30, February 1, ($ in millions) Caption 2021 2020 Hedging Instruments: Foreign exchange forward contracts Current assets $ 1 $ — Foreign exchange forward contracts Current liabilities $ 1 $ 4 |
Notional Amounts for Outstanding Derivatives and Weighted-Average Exchange Rates of Foreign Exchange Forward Contracts | The table below presents the notional amounts for all outstanding derivatives and the weighted-average exchange rates of foreign exchange forward contracts at January 30, 2021: Weighted-Average ($ in millions) Contract Value Exchange Rate Inventory Buy €/Sell British £ $ 69 0.9058 Intercompany Buy US $/Sell CAD $ $ 1 1.2761 Buy US $/Sell AUD $ $ 1 1.3154 Buy British £/ Sell € $ 41 1.1017 Buy US $/ Sell € $ 91 0.8211 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Fair Value Measurements [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and Liabilities Measured at Fair Value on a Recurring Basis ($ in millions) As of January 30, 2021 As of February 1, 2020 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Available-for-sale security $ — $ 7 $ — $ — $ 7 $ — Foreign exchange forward contracts — 1 — — — — Total Assets $ — $ 8 $ — $ — $ 7 $ — Liabilities Foreign exchange forward contracts $ — $ 1 $ — $ — $ 4 $ — Total Liabilities $ — $ 1 $ — $ — $ 4 $ — |
Carrying Value and Estimated Fair Value of Long-Term Debt | ($ in millions) January 30, February 1, Carrying value $ 100 $ 122 Fair value $ 106 $ 135 |
Retirement Plans and Other Be_2
Retirement Plans and Other Benefits (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |
Changes in Benefit Obligations and Plan Assets, Funded Status, and Amounts Recognized in Consolidated Balance Sheets | The following tables set forth the plans’ changes in benefit obligations and plan assets, funded status, and amounts recognized in the Consolidated Balance Sheets: Pension Benefits Postretirement Benefits ($ in millions) 2020 2019 2020 2019 Change in benefit obligation Benefit obligation at beginning of year $ 775 $ 739 $ 11 $ 12 Service cost 14 20 — — Interest cost 21 27 — — Plan participants’ contributions — — 1 1 Actuarial loss 8 76 2 — Foreign currency translation adjustments 2 (1) — — Benefits paid (67) (85) (1) (2) Settlement — (1) — — Benefit obligation at end of year $ 753 $ 775 $ 13 $ 11 Change in plan assets Fair value of plan assets at beginning of year $ 715 $ 644 Actual return on plan assets 65 100 Employer contributions 1 57 Foreign currency translation adjustments 2 (1) Benefits paid (67) (85) Fair value of plan assets at end of year $ 716 $ 715 Funded status $ (37) (60) $ (13) $ (11) Amounts recognized on the consolidated balance sheet: Other assets $ 3 $ 3 $ — $ — Accrued and other liabilities (2) (2) (1) (1) Other liabilities (38) (61) (12) (10) $ (37) $ (60) $ (13) $ (11) |
Information for Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets | Accordingly, the table below reflects both the U.S. qualified plan and the non-qualified plans for both 2020 and 2019. |
Changes in Accumulated Other Comprehensive Loss (Pre-Tax) | The following table provides the amounts recognized in AOCL on a pre-tax basis: Pension Postretirement ($ in millions) Benefits Benefits Net actuarial loss (gain) at beginning of year $ 392 $ (5) Amortization of net (loss) gain (12) 1 (Gain) loss arising during the year (20) 2 Foreign currency fluctuations 1 — Net actuarial loss (gain) at end of year $ 361 $ (2) |
Assumptions Used in the Calculation of Net Benefit Cost | Assumptions used in the calculation of net benefit cost include the discount rate selected and disclosed at the end of the previous year, as well as other assumptions detailed in the table below: Pension Benefits Postretirement Benefits 2020 2019 2018 2020 2019 2018 Discount rate (1) 2.9 % 4.0 % 4.0 % 3.0 % 4.1 % 3.7 % Rate of compensation increase 3.6 % 3.6 % 3.6 % Expected long-term rate of return on assets 5.5 % 5.8 % 5.9 % (1) The U.S qualified pension plan was remeasured during the second quarter of 2018 in connection with the pension litigation. The discount rate used to determine the benefit obligation in 2018 before the remeasurement was 3.7% . |
Net Benefit Expense (Income) | The following are the components of net periodic pension benefit cost and net periodic postretirement benefit income. Pension Benefits Postretirement Benefits ($ in millions) 2020 2019 2018 2020 2019 2018 Service cost $ 14 $ 20 $ 18 $ — $ — $ — Interest cost 21 27 29 — — — Expected return on plan assets (37) (37) (38) — — — Amortization of net loss (gain) 12 12 12 (1) (1) (1) Net benefit expense (income) $ 10 $ 22 $ 21 $ (1) $ (1) $ (1) |
Assumed Health Care Cost Trend Rates Related to Measurement of SERP Medical Plan | The following initial and ultimate cost trend rate assumptions were used to determine the benefit obligations under the SERP Medical Plan: Medical Trend Rate Dental Trend Rate 2020 2019 2018 2020 2019 2018 Initial cost trend rate 6.3 % 6.5 % 6.5 % 5.0 % 5.0 % 5.0 % Ultimate cost trend rate 5.0 % 5.0 % 5.0 % 5.0 % 5.0 % 5.0 % Year that the ultimate cost trend rate is reached 2025 2025 2025 2020 2020 2019 The following initial and ultimate cost trend rate assumptions were used to determine the net periodic cost under the SERP Medical Plan: Medical Trend Rate Dental Trend Rate 2020 2019 2018 2020 2019 2018 Initial cost trend rate 6.5 % 6.5 % 7.0 % 5.0 % 5.0 % 5.0 % Ultimate cost trend rate 5.0 % 5.0 % 5.0 % 5.0 % 5.0 % 5.0 % Year that the ultimate cost trend rate is reached 2025 2025 2025 2020 2019 2018 |
Estimated Future Benefit Payments | Estimated future benefit payments for each of the next five years and the five years thereafter are as follows: Pension Postretirement ($ in millions) Benefits Benefits 2021 $ 65 $ 1 2022 53 1 2023 51 1 2024 49 — 2025 46 — 2026-2030 208 3 |
United States | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair Value of Pension Plan Assets | The fair values of the U.S. pension plan assets at January 30, 2021 and February 1, 2020 were as follows: ($ in millions) Level 1 Level 2 Level 3 2020 Total 2019 Total* Cash equivalents $ — $ 4 $ — $ 4 $ 3 Equity securities: U.S. large-cap (1) — 117 — 117 116 U.S. mid-cap (1) — 34 — 34 34 International (2) — 84 — 84 78 Corporate stock (3) 17 — — 17 15 Fixed-income securities: Long duration corporate and government bonds (4) — 269 — 269 273 Intermediate duration corporate and government bonds (5) — 119 — 119 121 Other types of investments: Real estate securities (6) — 22 — 22 23 Insurance contracts — — — — 1 Total assets at fair value $ 17 $ 649 $ — $ 666 $ 664 * Each category of plan assets is classified within the same level of the fair value hierarchy for 2020 and 2019. (1) These categories consist of various managed funds that invest primarily in common stocks, as well as other equity securities and a combination of other funds. (2) This category comprises three managed funds that invest primarily in international common stocks, as well as other equity securities and a combination of other funds. (3) This category consists of the Company’s common stock. (4) This category consists of various fixed-income funds that invest primarily in long-term bonds, as well as a combination of other funds, that together are designed to exceed the performance of related long-term market indices. (5) This category consists of two fixed-income funds that invest primarily in intermediate duration bonds, as well as a combination of other funds, that together are designed to exceed the performance of related indices. (6) This category consists of one fund that invests in global real estate securities. |
CANADA | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair Value of Pension Plan Assets | ($ in millions) Level 1 Level 2 Level 3 2020 Total 2019 Total* Cash equivalents $ — $ — $ — $ — $ 1 Equity securities: Canadian and international (1) 3 — — 3 2 Fixed-income securities: Cash matched bonds (2) — 47 — 47 48 Total assets at fair value $ 3 $ 47 $ — $ 50 $ 51 * Each category of plan assets is classified within the same level of the fair value hierarchy for 2020 and 2019. (1) This category comprises one mutual fund that invests primarily in a diverse portfolio of Canadian securities. (2) This category consists of fixed-income securities, including strips and coupons, issued or guaranteed by the Government of Canada, provinces or municipalities of Canada including their agencies and crown corporations, as well as other governmental bonds and corporate bonds. |
Benefit Obligations [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Assumptions Used in the Calculation of Net Benefit Cost | The following weighted-average assumptions were used to determine the benefit obligations under the plans: Pension Benefits Postretirement Benefits 2020 2019 2020 2019 Discount rate 2.5 % 2.9 % 2.8 % 3.0 % Rate of compensation increase 3.6 % 3.6 % |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Share-Based Compensation [Abstract] | |
Total Compensation Expense and the Related Tax Benefits Recognized | Total compensation expense included in SG&A and the associated tax benefits recognized related to our share-based compensation plans, were as follows: ($ in millions) 2020 2019 2018 Options and shares purchased under the ESPP $ 6 $ 6 $ 7 Restricted stock and restricted stock units 9 12 15 Total share-based compensation expense $ 15 $ 18 $ 22 Tax benefit recognized $ 2 $ 2 $ 3 |
Assumptions used to Compute Share-Based Compensation Expense | The following table shows the assumptions used to compute the share-based compensation expense: Stock Option Plans Stock Purchase Plan 2020 2019 2018 2020 2019 2018 Weighted-average risk free rate of interest 0.5 % 2.2 % 2.7 % 1.8 % 2.2 % 2.0 % Expected volatility 37 % 38 % 37 % 48 % 54 % 50 % Weighted-average expected award life (in years) 4.9 5.5 5.5 1.0 1.0 1.0 Dividend yield 4.3 % 2.6 % 3.1 % 4.2 % 3.1 % 2.0 % Weighted-average fair value $ 5.03 $ 17.07 $ 12.42 $ 13.97 $ 16.68 $ 15.29 |
Options Granted under Stock Option Plans | The information set forth in the following table covers options granted under our stock option plans: Weighted- Weighted- Number Average Average of Remaining Exercise Shares Contractual Life Price (in thousands) (in years) (per share) Options outstanding at the beginning of the year 2,881 $ 54.21 Granted 1,069 21.61 Exercised (165) 23.36 Expired or cancelled (245) 34.47 Options outstanding at January 30, 2021 3,540 5.7 $ 47.17 Options exercisable at January 30, 2021 2,403 4.2 $ 55.81 |
Total Intrinsic Value of Options Exercised | The total intrinsic value of options exercised (the difference between the market price of the Company’s common stock on the exercise date and the price paid by the optionee to exercise the option) is presented below: ($ in millions) 2020 2019 2018 Exercised $ 3 $ 5 $ 4 |
Aggregate Intrinsic Value for Stock Options Outstanding and Exercisable | The aggregate intrinsic value for stock options outstanding, and those outstanding and exercisable (the difference between the closing stock price on the last trading day of the period and the exercise price of the options, multiplied by the number of in-the-money stock options) is presented below: ($ in millions) 2020 Outstanding $ 24 Outstanding and exercisable $ 5 |
Information about Stock Options Outstanding and Exercisable | The following table summarizes information about stock options outstanding and exercisable at January 30, 2021: Options Outstanding Options Exercisable Weighted- Average Weighted- Weighted- Remaining Average Average Range of Exercise Number Contractual Exercise Number Exercise Prices Outstanding Life Price Exercisable Price (in thousands, except prices per share and contractual life) $18.84 to $23.09 937 8.7 $ 21.55 60 $ 20.72 $24.75 to $36.51 329 2.3 33.01 326 32.98 $44.78 to $45.75 537 4.9 44.91 447 44.94 $46.64 to $62.11 869 5.0 60.12 703 60.50 $63.33 to $73.21 868 4.8 68.60 867 68.60 3,540 5.7 $ 47.17 2,403 $ 55.81 |
Restricted Share and Unit Activity | Weighted-Average Number Remaining Weighted-Average of Contractual Grant Date Shares Life Fair Value (in thousands) (in years) (per share) Nonvested at beginning of year 936 $ 49.25 Granted (1) 639 28.69 Vested (121) 53.27 Performance adjustment (2) 51 Forfeited (157) 38.41 Nonvested at January 30, 2021 1,348 1.3 $ 38.48 Aggregate value ($ in millions) $ 52 (1) Included in the units granted are approximately 0.2 million performance-based RSUs. The number of performance-based RSUs that are ultimately earned may vary from 0% to 200% of target depending on the achievement relative to predefined financial performance targets. (2) This represents adjustments made to performance-based RSU awards and reflect changes in estimates based upon our current performance against predefined financial targets. |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Other Current Assets [Abstract] | |
Schedule of Other Current Assets | ($ in millions) January 30, February 1, Net receivables $ 124 $ 100 Other prepaid expenses 56 46 Prepaid income taxes 20 48 Prepaid rent 14 55 Restricted cash 8 6 Income taxes receivable 1 1 Deferred tax costs — 9 Other 9 6 $ 232 $ 271 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Quarterly Results (Unaudited) [Abstract] | |
Quarterly Results (Unaudited) | ($ in millions) 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter Fiscal Year Sales 2020 1,176 2,077 2,106 2,189 $ 7,548 2019 2,078 1,774 1,932 2,221 $ 8,005 Gross margin (1) 2020 271 538 650 724 $ 2,183 2019 689 534 620 700 $ 2,543 Operating profit (2) 2020 (105) 69 178 161 $ 303 2019 228 81 164 176 $ 649 Net income (3), (4) 2020 (110) 45 265 123 $ 323 2019 172 60 125 134 $ 491 Basic earnings per share (5) 2020 (1.06) 0.43 2.54 1.18 $ 3.10 2019 1.53 0.55 1.16 1.28 $ 4.52 Diluted earnings per share (5) 2020 (1.06) 0.43 2.52 1.17 $ 3.08 2019 1.52 0.55 1.16 1.27 $ 4.50 (1) Gross margin represents sales less cost of sales. Cost of sales includes: the cost of merchandise, freight, distribution costs including related depreciation expense, shipping and handling, occupancy and buyers’ compensation. Occupancy costs include rent (including fixed common area maintenance charges and other fixed non-lease components), real estate taxes, general maintenance, and utilities. (2) Operating profit represents income before income taxes, net interest income and non-operating income. (3) During the first and fourth quarters of 2020, we recorded impairment charges totaling $15 million and $66 million, respectively. During the fourth quarter of 2019, we recorded impairment charges of $48 million. See Note 3, Impairment and Other Charges for additional information. (4) During the third quarter of 2020, we recorded a benefit of $190 million from one of our minority investments. See Note 4, Other Income for further information. (5) Quarterly income per share amounts may not total to the annual amount due to changes in weighted-average shares outstanding during the year . |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Significant Accounting Policies [Line Items] | ||||
Shares of common stock repurchased to satisfy tax withholding obligations | $ 1 | $ 2 | $ 1 | |
Contingently Issuable Shares Excluded From Diluted Earnings Per Share | 400,000 | 500,000 | 900,000 | |
Cash equivalents | $ 503 | $ 366 | $ 476 | |
Investments | 322 | 134 | ||
Equity method investments | 15 | 8 | ||
Capitalized software, net of accumulated amortization | 93 | 80 | ||
Goodwill accumulated impairment charges | 167 | 167 | ||
Self-insured liabilities total | 13 | 12 | ||
Operating Lease, Right-of-Use Asset | 2,716 | 2,899 | ||
Operating Lease, Liability | $ 3,079 | 3,196 | ||
Operating Lease, Impairment Loss | 13 | |||
Accounting Standards Update 2016-16 [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Cumulative Effect on Retained Earnings, Net of Tax | $ (26) | |||
Accounting Standards Update 2018-02 [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Cumulative Effect on Retained Earnings, Net of Tax | $ 37 | |||
Treasury Stock | ||||
Significant Accounting Policies [Line Items] | ||||
Retirement of treasury stock (in shares) | 913,095 | 9,021,244 | 8,597,000 | |
Retirement of treasury stock | $ (34) | $ (368) | $ (400) | |
Retained Earnings | ||||
Significant Accounting Policies [Line Items] | ||||
Retirement of treasury stock | $ 27 | 302 | 339 | |
Retained Earnings | Accounting Standards Update 2016-16 [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Cumulative Effect on Retained Earnings, Net of Tax | $ (26) | |||
Retained Earnings | Accounting Standards Update 2018-02 [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Cumulative Effect on Retained Earnings, Net of Tax | 37 | |||
Restricted Stock Units [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Award vesting period | 3 years | |||
Additional award vesting period | 1 year | |||
Performance Shares [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Additional award vesting period | 1 year | |||
United States | ||||
Significant Accounting Policies [Line Items] | ||||
Qualified settlement fund, current | $ 55 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Gift Card Liability (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Accrued gift card liability at beginning of period | $ 35 | $ 35 |
Foreign currency fluctuations | 1 | |
Accrued gift card liability at end of period | 41 | 35 |
Gift Card Activations [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Activations | 131 | 112 |
Gift Card Redemption Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | (118) | (105) |
Gift Card Breakage Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | $ (8) | $ (7) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Costs Included as Net Advertising Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |||
Required advertising costs for leased property | $ 14 | ||
Advertising expenses | $ 69 | $ 91 | 111 |
Digital advertising expense | 89 | 95 | 96 |
Cooperative advertising reimbursements | (14) | (20) | (25) |
Net advertising expense | $ 144 | $ 166 | $ 182 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Costs Included as Component of Selling, General and Administrative Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |||
Catalog costs | $ 7 | $ 15 | $ 18 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
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. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Net income/(loss) | $ 123 | $ 265 | $ 45 | $ (110) | $ 134 | $ 125 | $ 60 | $ 172 | $ 323 | $ 491 | $ 541 |
Weighted-average common shares outstanding | 104.3 | 108.7 | 115.6 | ||||||||
Dilutive effect of potential common shares | 0.8 | 0.4 | 0.5 | ||||||||
Weighted-average common shares outstanding assuming dilution | 105.1 | 109.1 | 116.1 | ||||||||
Basic earnings per share (in dollars per shares) | $ 1.18 | $ 2.54 | $ 0.43 | $ (1.06) | $ 1.28 | $ 1.16 | $ 0.55 | $ 1.53 | $ 3.10 | $ 4.52 | $ 4.68 |
Diluted earnings per share (in dollars per share) | $ 1.17 | $ 2.52 | $ 0.43 | $ (1.06) | $ 1.27 | $ 1.16 | $ 0.55 | $ 1.52 | $ 3.08 | $ 4.50 | $ 4.66 |
Stock Option Plans [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Anti-dilutive share-based awards excluded from diluted calculation | 2.5 | 2.2 | 1.9 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Restricted Cash (Reconciliation of Cash and Cash Equivalents)) (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Restricted Cash [Abstract] | ||||
Cash and cash equivalents | $ 1,680 | $ 907 | $ 891 | |
Restricted cash included in other current assets | 8 | 6 | 59 | |
Restricted cash included in other non-current assets | 30 | 29 | 31 | |
Cash, cash equivalents, and restricted cash | $ 1,718 | $ 942 | $ 981 | $ 1,031 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Estimated Useful Lives) (Details) | 12 Months Ended |
Jan. 30, 2021 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 50 years |
Furniture, Fixtures and Equipment | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 10 years |
Furniture, Fixtures and Equipment | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 3 years |
Software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 5 years |
Software | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 2 years |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Jan. 30, 2021segment | |
Segment Information [Abstract] | |
Operating segments | 3 |
Number of reportable segments | 1 |
Segment Information (Sales and
Segment Information (Sales and Division Operating Results for Reportable Segments) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
May 31, 2020 | 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. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Segment Reporting Information [Line Items] | ||||||||||||
Division profit | $ 491 | $ 788 | $ 808 | |||||||||
Less: Other charges | 117 | 65 | 37 | |||||||||
Less: Impairment and other charges | 117 | 65 | 37 | |||||||||
Less: Corporate expense | 71 | 74 | 72 | |||||||||
Income from operations | $ 161 | $ 178 | $ 69 | $ (105) | $ 176 | $ 164 | $ 81 | $ 228 | 303 | 649 | 699 | |
Interest (expense) income, net | (7) | 11 | 9 | |||||||||
Other income, net | 198 | 12 | 5 | |||||||||
Income before income taxes | 494 | 672 | 713 | |||||||||
Impairment charges | 66 | 15 | 48 | 97 | 48 | 19 | ||||||
Other intangible assets impairments | 15 | |||||||||||
Impairment of long-lived assets and right-of-use assets | 62 | $ 15 | 77 | 37 | 4 | |||||||
Pension litigation charge | (2) | (4) | (18) | |||||||||
Impairments of minority investments | 4 | 11 | ||||||||||
Reorganization costs | 26 | |||||||||||
Runners Point Group [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Lease termination costs | $ 19 | |||||||||||
Reorganization costs | 19 | |||||||||||
Corporate, Non-Segment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Corporate expense due to allocation changes | $ 28 | $ 32 | $ 28 | $ 32 | $ 40 |
Segment Information (Schedule o
Segment Information (Schedule of Sales Disaggregated by Sales Channel) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
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. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 2,189 | $ 2,106 | $ 2,077 | $ 1,176 | $ 2,221 | $ 1,932 | $ 1,774 | $ 2,078 | $ 7,548 | $ 8,005 | $ 7,939 |
Store Sales Channel [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 5,447 | 6,720 | 6,714 | ||||||||
Direct-to-customers | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 2,101 | $ 1,285 | $ 1,225 |
Segment Information (Sales an_2
Segment Information (Sales and Long-Lived Asset Information by Geographic Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
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. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 2,189 | $ 2,106 | $ 2,077 | $ 1,176 | $ 2,221 | $ 1,932 | $ 1,774 | $ 2,078 | $ 7,548 | $ 8,005 | $ 7,939 |
Long-lived assets | 3,504 | 3,723 | 3,504 | 3,723 | 836 | ||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 5,581 | 5,691 | 5,647 | ||||||||
Long-lived assets | 2,218 | 2,479 | 2,218 | 2,479 | 602 | ||||||
International [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,967 | 2,314 | 2,292 | ||||||||
Long-lived assets | $ 1,286 | $ 1,244 | $ 1,286 | $ 1,244 | $ 234 |
Segment Information (Schedule_2
Segment Information (Schedule of Segment Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | $ 176 | $ 179 | $ 178 |
Capital Expenditures | 159 | 187 | 187 |
Total Assets | 7,043 | 6,589 | 3,820 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 152 | 160 | 160 |
Capital Expenditures | 88 | 105 | 112 |
Total Assets | 5,159 | 5,523 | 2,900 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 24 | 19 | 18 |
Capital Expenditures | 71 | 82 | 75 |
Total Assets | $ 1,884 | $ 1,066 | $ 920 |
Impairment and Other Charges (S
Impairment and Other Charges (Schedule of Impairment and Other Charges) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
May 31, 2020 | Jan. 30, 2021 | Aug. 01, 2020 | May 02, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Impairment of long-lived assets and right-of-use assets | $ 62 | $ 15 | $ 77 | $ 37 | $ 4 | ||
Losses related to social unrest | $ 18 | 8 | |||||
Impairment of investments | 4 | 11 | |||||
Reorganization costs | 26 | ||||||
Pension litigation related charges | 2 | 4 | 18 | ||||
Lease termination costs | 13 | ||||||
Other intangible assets impairments | 15 | ||||||
Total impairment and other charges | 117 | $ 65 | $ 37 | ||||
Runners Point Group [Member] | |||||||
Reorganization costs | 19 | ||||||
EMEA [Member] | |||||||
Reorganization costs | $ 4 | 4 | |||||
Eastbay [Member] | |||||||
Reorganization costs | $ 3 | $ 3 |
Impairment and Other Charges (N
Impairment and Other Charges (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
May 31, 2020USD ($)store | Jan. 30, 2021USD ($)store | Aug. 01, 2020USD ($)store | May 02, 2020USD ($)store | Jan. 30, 2021USD ($) | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | |
Impairment and Other Charges [Line Items] | ||||||||
Pension litigation charge | $ (2) | $ (4) | $ (18) | |||||
Impairment of assets | $ 62 | $ 15 | 77 | 37 | 4 | |||
Lease termination costs | 13 | |||||||
Impairments of minority investments | 4 | 11 | ||||||
Number of stores closing prior to their natural lease expiration | store | 40 | |||||||
Number of underperforming stores evaluated for impairment | store | 90 | |||||||
Number of stores with non-cash impairment charge | store | 60 | 70 | ||||||
Reorganization costs | 26 | |||||||
Other intangible assets impairments | $ 15 | |||||||
Losses related to social unrest | $ 18 | 8 | ||||||
Number of stores damaged related to social unrest | store | 140 | |||||||
Insurance recoveries from social unrest | $ 10 | |||||||
Inventory Losses Related to Social Unrest [Member] | ||||||||
Impairment and Other Charges [Line Items] | ||||||||
Losses related to social unrest | $ 15 | |||||||
Damages to Store Property Related to Social Unrest [Member] | ||||||||
Impairment and Other Charges [Line Items] | ||||||||
Losses related to social unrest | 1 | |||||||
Repairs and Other Costs Related to Social Unrest [Member] | ||||||||
Impairment and Other Charges [Line Items] | ||||||||
Losses related to social unrest | $ 2 | |||||||
Six02 [Member] | ||||||||
Impairment and Other Charges [Line Items] | ||||||||
Lease termination costs | 13 | |||||||
Business Exit Costs | 13 | |||||||
Store Fixtures and Leasehold Improvements [Member] | ||||||||
Impairment and Other Charges [Line Items] | ||||||||
Impairment of assets | $ 4 | |||||||
Store Fixtures and Leasehold Improvements [Member] | Footaction [Member] | ||||||||
Impairment and Other Charges [Line Items] | ||||||||
Impairment of assets | $ 37 | |||||||
Trade Names [Member] | Runners Point Group [Member] | ||||||||
Impairment and Other Charges [Line Items] | ||||||||
Other intangible assets impairments | $ 15 | |||||||
Runners Point Group [Member] | ||||||||
Impairment and Other Charges [Line Items] | ||||||||
Lease termination costs | $ 19 | |||||||
Reorganization costs | 19 | |||||||
Business Exit Costs | 19 | |||||||
Eastbay [Member] | ||||||||
Impairment and Other Charges [Line Items] | ||||||||
Reorganization costs | $ 3 | 3 | ||||||
EMEA [Member] | ||||||||
Impairment and Other Charges [Line Items] | ||||||||
Reorganization costs | $ 4 | $ 4 |
Impairment and Other Charges (R
Impairment and Other Charges (Restructuring Charges) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
May 31, 2020 | Jan. 30, 2021 | Jan. 30, 2021 | |
Restructuring Reserve, Beginning Balance | |||
Charges | 26 | ||
Payments | (16) | ||
Restructuring Reserve, Ending Balance | $ 10 | 10 | |
Runners Point Group [Member] | |||
Restructuring Reserve, Beginning Balance | |||
Charges | 19 | ||
Payments | (13) | ||
Restructuring Reserve, Ending Balance | 6 | 6 | |
Eastbay [Member] | |||
Restructuring Reserve, Beginning Balance | |||
Charges | $ 3 | 3 | |
Payments | (3) | ||
Restructuring Reserve, Ending Balance | |||
EMEA [Member] | |||
Restructuring Reserve, Beginning Balance | |||
Charges | 4 | 4 | |
Restructuring Reserve, Ending Balance | $ 4 | $ 4 |
Other Income (Narrative) (Detai
Other Income (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Other Income Non operating [Line Items] | ||||
Other income, net | $ 198 | $ 12 | $ 5 | |
Royalty income | 6 | 8 | 6 | |
Gain from sale of property plant and equipment | 4 | |||
Gain on investment | $ 190 | |||
Gain (loss) from equity method investment | (1) | (1) | ||
Gain on available-for-sale security | 1 | |||
Loss on available-for-sale security | 1 | |||
Net benefit expense (income) | (5) | 2 | 1 | |
Premium paid | $ 2 | |||
Leasehold improvements | ||||
Other Income Non operating [Line Items] | ||||
Lease termination gains related to the sales of leasehold interests | $ 1 | |||
Buildings | ||||
Other Income Non operating [Line Items] | ||||
Gain from sale of property plant and equipment | $ 2 |
Merchandise Inventories (Schedu
Merchandise Inventories (Schedule of Merchandise Inventories) (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Merchandise Inventories [Abstract] | ||
LIFO inventories | $ 544 | $ 810 |
FIFO inventories | 379 | 398 |
Inventory, Net, Total | $ 923 | $ 1,208 |
Other Current Assets (Schedule
Other Current Assets (Schedule of Other Current Assets) (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 |
Other Current Assets [Abstract] | |||
Net receivables | $ 124 | $ 100 | |
Prepaid rent | 14 | 55 | |
Prepaid income taxes | 20 | 48 | |
Other prepaid expenses | 56 | 46 | |
Deferred tax costs | 9 | ||
Restricted cash | 8 | 6 | $ 59 |
Income taxes receivable | 1 | 1 | |
Other | 9 | 6 | |
Other current assets | $ 232 | $ 271 |
Property and Equipment, Net (Sc
Property and Equipment, Net (Schedule of Property and Equipment) (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,330 | $ 1,261 |
Less: accumulated depreciation | (907) | (818) |
Property plant and equipment excluding leasehold and building improvements | 423 | 443 |
Property and equipment, net | 788 | 824 |
Finance leases, assets under finance leases | 11 | |
Less: accumulated amortization | (1) | |
Assets under finance leases, net | 10 | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4 | 4 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 52 | 54 |
Furniture, Fixtures, Equipment and Software Development Costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,274 | 1,203 |
Leasehold and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 974 | 937 |
Less: accumulated depreciation | (619) | (556) |
Property and equipment, net | $ 355 | $ 381 |
Other Intangible Assets, Net (S
Other Intangible Assets, Net (Schedule of Other Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, Gross value | $ 141 | $ 135 |
Amortized intangible assets, Accum. amort. | (133) | (124) |
Amortized intangible assets, Net value | $ 8 | 11 |
Amortized intangible assets, Wtd. Avg. Life in Years | 14 years 9 months 18 days | |
Other intangible assets, net | $ 17 | 20 |
Lease Acquisition Costs [Member] | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, Gross value | 121 | 115 |
Amortized intangible assets, Accum. amort. | (116) | (108) |
Amortized intangible assets, Net value | $ 5 | 7 |
Amortized intangible assets, Wtd. Avg. Life in Years | 9 years 10 months 24 days | |
Trademarks and Trade Names [Member] | ||
Intangible Assets by Major Class [Line Items] | ||
Amortized intangible assets, Gross value | $ 20 | 20 |
Amortized intangible assets, Accum. amort. | (17) | (16) |
Amortized intangible assets, Net value | $ 3 | 4 |
Amortized intangible assets, Wtd. Avg. Life in Years | 20 years | |
Indefinite life intangible assets, Net Value | $ 9 | $ 9 |
Other Intangible Assets, Net (A
Other Intangible Assets, Net (Amortization Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Other Intangible Assets, Net [Abstract] | |||
Amortization expense | $ 3 | $ 3 | $ 4 |
Other Intangible Assets, Net (E
Other Intangible Assets, Net (Estimated Future Amortization Expense for Finite Lived Intangibles) (Details) $ in Millions | Jan. 30, 2021USD ($) |
Other Intangible Assets, Net [Abstract] | |
2021 | $ 2 |
2022 | 2 |
2023 | 2 |
2024 | 1 |
2025 | $ 1 |
Other Assets (Schedule of Other
Other Assets (Schedule of Other Assets) (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 |
Other Assets [Abstract] | |||
Restricted cash | $ 8 | $ 6 | $ 59 |
Restricted cash | 30 | 29 | $ 31 |
Pension asset | 3 | 3 | |
Auction rate security | 7 | 7 | |
Other | 50 | 42 | |
Other Assets, Noncurrent, Total | $ 90 | $ 81 |
Accrued and Other Liabilities_2
Accrued and Other Liabilities (Schedule of Accrued and Other Liabilities) (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Accrued and Other Liabilities [Abstract] | ||
Taxes other than income taxes | $ 96 | $ 57 |
Income taxes payable | 81 | 4 |
Other payroll and payroll related costs, excluding taxes | 73 | 64 |
Incentive bonuses | 72 | 28 |
Customer deposits | 49 | 45 |
Rent related costs | 40 | 20 |
Property and equipment | 33 | 40 |
Advertising | 25 | 21 |
Other | 91 | 64 |
Other Liabilities, Current, Total | $ 560 | $ 343 |
Revolving Credit Facility (Narr
Revolving Credit Facility (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Line of Credit Facility [Line Items] | |||
Debt Instrument Fixed Coverage Ratio | 1 | ||
Credit agreement start date | Jul. 14, 2020 | ||
Revolving credit facility | $ 600 | ||
Revolving credit facility maturity date | Jul. 14, 2025 | ||
Proceeds from Lines of Credit | $ 330 | ||
Fees paid for the credit facility | 4 | ||
Deferred financing fees, unamortized balance | 4 | ||
Minimum threshold of availability under the credit agreement before the company needs to comply with financial covenants | $ 60 | ||
Minimum percentage threshold of credit availability to Loan Cap before the company needs to comply with financial covenants | 10.00% | ||
Facility fees on unused portion of credit facility | 0.50% | ||
Interest expense, net | $ 5 | $ 1 | $ 1 |
Federal Funds Rate [Member] | Revolving Credit Facility [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt, basis spread on variable rate | 1.25% | ||
Federal Funds Rate [Member] | Revolving Credit Facility [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt, basis spread on variable rate | 0.75% | ||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt, basis spread on variable rate | 2.25% | ||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt, basis spread on variable rate | 1.75% |
Long-Term Debt and Obligation_3
Long-Term Debt and Obligations Under Finance Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Long-Term Debt and Obligations Under Finance Leases [Abstract] | |||
Debt | $ 98 | $ 118 | |
8.5% debentures payable 2022 | 20 | ||
Repayments of debt | $ 22 | ||
Interest rate of debentures (as a percent) | 8.50% | ||
Interest expense related to long-term debt | $ 8 | $ 8 | $ 8 |
Finance Lease, Liability, Current | $ 2 |
Long-Term Debt and Obligation_4
Long-Term Debt and Obligations Under Finance Leases (Schedule of Long-Term Debt) (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Long-Term Debt and Obligations Under Finance Leases [Abstract] | ||
Debt | $ 98 | $ 118 |
8.5% debentures payable 2022 | 20 | |
Unamortized gain related to interest rate swaps | 2 | 4 |
Obligations under finance leases | 10 | |
Debt and lease obligations | 110 | 122 |
Current portion of debt and obligations under finance leases | 102 | |
Long-term debt and obligations under finance leases | $ 8 | $ 122 |
Interest rate of debentures (as a percent) | 8.50% |
Other Liabilities (Schedule of
Other Liabilities (Schedule of Other Liabilities) (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Other Liabilities [Abstract] | ||
Pension benefits | $ 38 | $ 61 |
Income taxes | 31 | 32 |
Postretirement benefits | 12 | 10 |
Workers' compensation and general liability reserves | 8 | 8 |
Deferred taxes | 18 | 2 |
Other | 9 | 9 |
Other Liabilities, Noncurrent, Total | $ 116 | $ 122 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Schedule Of Operating Leases [Line Items] | |||
Variable lease costs | $ 290 | $ 332 | |
Sublease income | $ 1 | $ 1 | |
Operating Leases, Rent Expense | $ 750 | ||
Minimum rentals | 728 | ||
Contingent rentals | 27 | ||
Sublease income | 5 | ||
Total amortization of lease rights | $ 147 | ||
Minimum [Member] | |||
Schedule Of Operating Leases [Line Items] | |||
Operating lease period | 5 years | ||
Maximum [Member] | |||
Schedule Of Operating Leases [Line Items] | |||
Operating lease period | 10 years | ||
Future Undiscounted Lease Payments for Retail Stores [Member] | |||
Schedule Of Operating Leases [Line Items] | |||
Operating leases not yet commenced, future undiscounted lease payments | $ 29 |
Leases (Operating Lease) (Detai
Leases (Operating Lease) (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Operating leases: | ||
Operating lease right-of-use assets | $ 2,716 | $ 2,899 |
Operating lease liabilities classified as current | 580 | 518 |
Operating lease liabilities classified as long-term | 2,499 | 2,678 |
Total operating lease liabilities | 3,079 | $ 3,196 |
Finance leases: | ||
Property and equipment, net | 10 | |
Current portion of obligations under finance leases | 2 | |
Long-term obligations under finance leases | 8 | |
Total finance lease obligations | $ 10 |
Leases (Lease Cost) (Details)
Leases (Lease Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Components of lease cost | ||
Operating lease costs | $ 620 | $ 668 |
Variable lease costs | 290 | 332 |
Short-term lease costs | 23 | 23 |
Sublease Income | (1) | (1) |
Lessee, Total Operating Lease Cost | 932 | 1,022 |
Lessee, Finance Lease, Description [Abstract] | ||
Finance Lease, Right-of-Use Asset, Amortization | 1 | |
Net lease cost | $ 933 | $ 1,022 |
Leases (Other and Supplement Ca
Leases (Other and Supplement Cash Flow) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Leases [Abstract] | ||
Operating lease weighted average remaining lease term (years) | 6 years 8 months 12 days | 7 years 3 months 18 days |
Finance lease, weighted average remaining lease term | 4 years 4 months 24 days | |
Operating lease, weighted average discount rate | 5.00% | 5.40% |
Finance lease, weighted average discount rate, percent | 4.10% | |
Cash paid for amounts included in measurement of operating lease liabilities: | $ 626 | $ 679 |
Right-of-use assets obtained in exchange for lease obligations: | 331 | $ 322 |
Cash paid for amounts included in measurement of finance lease liabilities | 1 | |
Leases obtained in exchange for finance lease obligations | $ 11 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments Under Non-Cancelable Operating Leases Net of Future Non-Cancelable Operating Sublease Payments) (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Maturities of lease liabilities | ||
2021 | $ 718 | |
2022 | 624 | |
2023 | 542 | |
2024 | 458 | |
2025 | 366 | |
Thereafter | 943 | |
Total lease payments | 3,651 | |
Less: Interest | 572 | |
Total operating lease liabilities | 3,079 | $ 3,196 |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2021 | 3 | |
2022 | 3 | |
2023 | 2 | |
2024 | 2 | |
2025 | 1 | |
Total lease payments | 11 | |
Less: Interest | 1 | |
Total finance lease obligations | 10 | |
Operating And Finance Lease Liabilities Payments Due [Abstract] | ||
2021 | 721 | |
2022 | 627 | |
2023 | 544 | |
2024 | 460 | |
2025 | 367 | |
Thereafter | 943 | |
Total lease payments | 3,662 | |
Less: Interest | 573 | |
Total lease liabilities | $ 3,089 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 |
Accumulated Other Comprehensive Loss [Abstract] | |||
Foreign currency translation adjustments | $ (64) | $ (104) | $ (84) |
Cash flow hedges | (1) | (3) | |
Unrecognized pension cost and postretirement benefit | (266) | (287) | (286) |
Accumulated other comprehensive loss ("AOCL"), net of tax | $ (331) | $ (394) | $ (370) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Changes in Accumulated Other Comprehensive Loss) (Details) $ in Millions | 12 Months Ended |
Jan. 30, 2021USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | $ (394) |
OCI before reclassification | 41 |
Amortization of pension actuarial (gain)/loss, net of tax | 8 |
Pension remeasurement, net of tax | 14 |
Other comprehensive income | 63 |
Ending Balance | (331) |
Foreign Currency Translation Adjustments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (104) |
OCI before reclassification | 40 |
Other comprehensive income | 40 |
Ending Balance | (64) |
Cash Flow Hedges Parent[Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (3) |
OCI before reclassification | 2 |
Other comprehensive income | 2 |
Ending Balance | (1) |
Items Related to Pension and Postretirement Benefits [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (287) |
OCI before reclassification | (1) |
Amortization of pension actuarial (gain)/loss, net of tax | 8 |
Pension remeasurement, net of tax | 14 |
Other comprehensive income | 21 |
Ending Balance | $ (266) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss (Reclassifications from Accumulated Other Comprehensive Loss) (Details) $ in Millions | 12 Months Ended |
Jan. 30, 2021USD ($) | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |
Pension benefits | $ 11 |
Income tax benefit | (3) |
Total, net of tax | 8 |
Pension Benefits [Member] | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |
Pension benefits | 12 |
Postretirement Benefits [Member] | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |
Pension benefits | $ (1) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Taxes [Line Items] | |||||
Effective Income Tax Rate Continuing Operations | 34.50% | 27.00% | 24.10% | ||
Federal statutory income tax rate | 21.00% | 21.00% | 21.00% | ||
Tax Cuts and Jobs Act, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense | $ 190 | ||||
Undistributed foreign earnings | $ 631 | ||||
Valuation allowance | 76 | $ 39 | |||
Valuation allowance excess of tax rate | 8 | ||||
Capital loss | 1 | ||||
Gross unrecognized tax benefits | 47 | 45 | $ 34 | $ 44 | |
Net unrecognized tax benefits that would impact effective tax rate | 35 | ||||
Unrecognized tax benefits interest expense (income), net | 1 | 1 | |||
Interest and penalties | 3 | $ 2 | $ 1 | ||
Impairment Northern Group Note 2008 [Member] | |||||
Income Taxes [Line Items] | |||||
Valuation allowance | 1 | ||||
International [Member] | |||||
Income Taxes [Line Items] | |||||
International minimum tax credit carryforwards | 4 | ||||
Operating loss carryforwards Foreign | $ 103 | ||||
International [Member] | Minimum [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards state, expiration date | 2021 | ||||
International [Member] | Maximum [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards state, expiration date | 2027 | ||||
Foreign Tax Authority [Member] | |||||
Income Taxes [Line Items] | |||||
Valuation allowance | $ 67 | ||||
Operating loss carryforwards subject to expiration | $ 12 |
Income Taxes (Domestic and Inte
Income Taxes (Domestic and International Components of Pre-Tax Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Income Taxes [Abstract] | |||
Domestic | $ 647 | $ 591 | $ 629 |
International | (153) | 81 | 84 |
Total pre-tax income | $ 494 | $ 672 | $ 713 |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Current: | |||
Federal | $ 114 | $ 106 | $ 91 |
State and local | 43 | 39 | 42 |
International | 23 | 31 | 30 |
Total current tax provision | 180 | 176 | 163 |
Deferred: | |||
Federal | 6 | (1) | (4) |
State and local | (2) | 1 | |
International | (13) | 6 | 12 |
Total deferred tax (benefit) provision | (9) | 5 | 9 |
Total income tax provision | $ 171 | $ 181 | $ 172 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Significant Differences Between Federal Statutory Income Tax Rate and Effective Income Tax Rate on Pre-Tax Income) (Details) | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Income Taxes [Abstract] | |||
Federal statutory income tax rate | 21.00% | 21.00% | 21.00% |
Deemed repatriation tax | (0.027) | ||
Increase in valuation allowance | 6.30% | 1.00% | 2.40% |
State and local income taxes, net of federal tax benefit | 6.60% | 4.50% | 4.70% |
International income taxed at varying rates | 4.30% | 1.90% | 1.60% |
Foreign tax credits | (2.40%) | (2.00%) | (2.10%) |
Domestic/foreign tax settlements | (0.50%) | (0.70%) | |
Federal tax credits | (0.40%) | (0.20%) | (0.20%) |
Other, net | (0.40%) | 0.80% | 0.10% |
Effective income tax rate | 34.50% | 27.00% | 24.10% |
Income Taxes (Significant Porti
Income Taxes (Significant Portions of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Deferred tax assets: | ||
Tax loss/credit carryforwards and capital loss | $ 120 | $ 54 |
Employee benefits | 52 | 40 |
Property and equipment | 13 | 30 |
Goodwill and other intangible assets | 14 | |
Operating leases - liabilities | 811 | 844 |
Other | 39 | 29 |
Total deferred tax assets | 1,035 | 1,011 |
Valuation allowance | (76) | (39) |
Total deferred tax assets, net | 959 | 972 |
Deferred tax liabilities: | ||
Merchandise inventories | 62 | 86 |
Operating leases - assets | 746 | 794 |
Goodwill and other intangible assets | 13 | |
Net investment gains | 46 | |
Other | 9 | 13 |
Total deferred tax liabilities | 876 | 893 |
Net deferred tax asset | 83 | 79 |
Balance Sheet caption reported in: | ||
Deferred taxes | 101 | 81 |
Other liabilities | (18) | (2) |
Net deferred tax asset | $ 83 | $ 79 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Income Taxes [Abstract] | |||
Unrecognized tax benefits at beginning of year | $ 45 | $ 34 | $ 44 |
Foreign currency translation adjustments | 3 | (1) | (3) |
Increases related to current year tax positions | 2 | 3 | 2 |
Increases related to prior period tax positions | 3 | 12 | 9 |
Decreases related to prior period tax positions | (13) | ||
Settlements | (1) | (2) | (3) |
Lapse of statute of limitations | (5) | (1) | (2) |
Unrecognized tax benefits at end of year | $ 47 | $ 45 | $ 34 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Narrative) (Details) $ in Millions | 12 Months Ended | |
Jan. 30, 2021USD ($)country | Feb. 01, 2020USD ($) | |
Derivative [Line Items] | ||
Notional value of contracts outstanding | $ 69 | $ 92 |
Number of countries of operation | country | 27 | |
Amount of hedge gain (loss) included in AOCL | $ 1 | 3 |
Derivatives Designated as Non-Hedging Instruments [Member] | Forward Foreign Exchange Contracts [Member] | ||
Derivative [Line Items] | ||
Notional value of contracts outstanding | $ 135 | $ 1 |
Top Five Suppliers [Member] | Supplier Concentration Risk [Member] | ||
Derivative [Line Items] | ||
Concentration risk, percentage | 91.00% | |
Nike | Supplier Concentration Risk [Member] | ||
Derivative [Line Items] | ||
Concentration risk, percentage | 75.00% | |
Nike | Minimum [Member] | Supplier Concentration Risk [Member] | ||
Derivative [Line Items] | ||
Concentration risk, percentage | 47.00% | |
Nike | Maximum [Member] | Supplier Concentration Risk [Member] | ||
Derivative [Line Items] | ||
Concentration risk, percentage | 82.00% | |
European | Corporate [Member] | ||
Derivative [Line Items] | ||
Number of countries of operation | country | 19 | |
Net assets | $ 283 | |
Number of countries that uses the Euro as the functional currency | country | 11 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management (Fair Value Derivative Contracts on Gross Basis by Type of Contract) (Details) - Forward Foreign Exchange Contracts [Member] - Derivatives Designated as Hedging Instruments [Member] - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Current Assets [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative hedging assets | $ 1 | |
Current Liabilities [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative hedging liability | $ 1 | $ 4 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management (Notional Amounts for All Outstanding Derivatives and Weighted-Average Exchange Rates of Foreign Exchange Forward Contracts (Details) $ in Millions | Jan. 30, 2021USD ($) | Feb. 01, 2020USD ($) |
Derivative [Line Items] | ||
Notional value of contracts outstanding | $ 69 | $ 92 |
Inventories | Buy Euro Sell British Pound Sterling [Member] | ||
Derivative [Line Items] | ||
Notional value of contracts outstanding | $ 69 | |
Weighted-Average Exchange Rate | 0.9058 | |
Intercompany | Buy Us Dollar Sell Canadian Dollar [Member] | ||
Derivative [Line Items] | ||
Notional value of contracts outstanding | $ 1 | |
Weighted-Average Exchange Rate | 1.2761 | |
Intercompany | Buy Us Dollar Sell Australian Dollar [Member] | ||
Derivative [Line Items] | ||
Notional value of contracts outstanding | $ 1 | |
Weighted-Average Exchange Rate | 1.3154 | |
Intercompany | Buy British Pound Sterling Sell Euro [Member] | ||
Derivative [Line Items] | ||
Notional value of contracts outstanding | $ 41 | |
Weighted-Average Exchange Rate | 1.1017 | |
Intercompany | Buy US Dollar Sell Euro [Member] | ||
Derivative [Line Items] | ||
Notional value of contracts outstanding | $ 91 | |
Weighted-Average Exchange Rate | 0.8211 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities measured at fair value on recurring basis | ||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Available-for-sale Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets measured at fair value on recurring basis | 8 | 7 |
Liabilities measured at fair value on recurring basis | 1 | 4 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Available-for-sale Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets measured at fair value on recurring basis | 7 | 7 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities measured at fair value on recurring basis | ||
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Available-for-sale Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Forward Foreign Exchange Contracts [Member] | Level 1 [Member] | Derivative Financial Instruments, Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Forward Foreign Exchange Contracts [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Derivative Financial Instruments, Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities measured at fair value on recurring basis | ||
Forward Foreign Exchange Contracts [Member] | Level 2 [Member] | Derivative Financial Instruments, Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets measured at fair value on recurring basis | 1 | |
Forward Foreign Exchange Contracts [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Derivative Financial Instruments, Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities measured at fair value on recurring basis | 1 | 4 |
Forward Foreign Exchange Contracts [Member] | Level 3 [Member] | Derivative Financial Instruments, Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Forward Foreign Exchange Contracts [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Derivative Financial Instruments, Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities measured at fair value on recurring basis |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Value and Estimated Fair Value of Long-Term Debt) (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Fair Value Measurements [Abstract] | ||
Long-term debt, Carrying value | $ 100 | $ 122 |
Long-term debt, Fair value | $ 106 | $ 135 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Fair Value Measurements [Abstract] | ||
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | $ 0 | $ 0 |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 |
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | 0 |
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | 0 |
Non-cash gain | $ 190 | $ 4 |
Retirement Plans and Other Be_3
Retirement Plans and Other Benefits (Narrative) (Details) - USD ($) | Jan. 01, 2020 | Jan. 30, 2021 | Jan. 30, 2021 | Feb. 01, 2020 | Dec. 31, 2019 | Feb. 02, 2019 | Jan. 30, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Plan participants years of service threshold | 11 years | ||||||
Accumulated projected benefit obligation | $ 706,000,000 | $ 706,000,000 | $ 727,000,000 | $ 706,000,000 | |||
Future increases in medical plan costs to be incurred by retirees | 100.00% | ||||||
SERP Medical Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Accumulated projected benefit obligation | 12,000,000 | $ 12,000,000 | $ 12,000,000 | ||||
Savings Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employer's contribution | $ 4,000,000 | ||||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 5.00% | ||||||
Defined contribution plan, employer matching contribution, percent of match | 100.00% | 25.00% | 50.00% | ||||
Employer's matching vesting period | 2 years | 5 years | |||||
Employer's matching contribution | $ 13,000,000 | ||||||
Eligible service to qualified savings plans | 28 days | 28 days | |||||
Defined Contribution Plan Employer Matching Contribution Period Of Service | 1 year | 1 year | |||||
Defined Contribution Plan Employer Matching Contribution Minimum Number of Working Hours Required | 1000 hours | 1000 hours | |||||
Defined Contribution Maximum Percentage of Compensation Matched By Company | 4.00% | 1.00% | |||||
United States | Savings Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | 19,500 | ||||||
Puerto Rico Plan [Member] | Savings Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | 15,000 | ||||||
Pension Benefits [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Pension benefits paid | $ 67,000,000 | $ 85,000,000 | |||||
Discount rate, net periodic benefit costs | 2.90% | 4.00% | 4.00% | ||||
Pension Benefits [Member] | Nonqualified Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Pension benefits paid | $ 1,000,000 | $ 2,000,000 | |||||
Pension Benefits [Member] | United States | Qualified Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employer's contribution | 55,000,000 | ||||||
Market-related value of plan assets | $ 661,000,000 | $ 661,000,000 | 601,000,000 | $ 661,000,000 | |||
Pension Benefits [Member] | Investment in Equity Securities [Member] | United States | Qualified Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Target composition of plan assets | 36.50% | 36.50% | 36.50% | ||||
Pension Benefits [Member] | Investment in Equity Securities [Member] | CANADA | Qualified Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Target composition of plan assets | 5.00% | 5.00% | 5.00% | ||||
Pension Benefits [Member] | Fixed Income Securities | United States | Qualified Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Target composition of plan assets | 60.00% | 60.00% | 60.00% | ||||
Pension Benefits [Member] | Fixed Income Securities | CANADA | Qualified Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Target composition of plan assets | 95.00% | 95.00% | 95.00% | ||||
Pension Benefits [Member] | Real Estate Investment Trust | United States | Qualified Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Target composition of plan assets | 3.50% | 3.50% | 3.50% | ||||
Postretirement Benefits [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Pension benefits paid | $ 1,000,000 | $ 2,000,000 | |||||
Discount rate, net periodic benefit costs | 3.00% | 4.10% | 3.70% | ||||
Minimum [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Market-related value of plan assets, Period for calculation | 3 years | ||||||
Maximum [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Market-related value of plan assets, Period for calculation | 5 years | ||||||
Maximum [Member] | Savings Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 40.00% |
Retirement Plans and Other Be_4
Retirement Plans and Other Benefits (Changes in Benefit Obligations and Plan Assets, Funded Status, and Amounts Recognized in Consolidated Balance Sheets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Change in benefit obligation | |||
Benefit obligation at beginning of year | $ 727 | ||
Benefit obligation at end of year | 706 | $ 727 | |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 664 | ||
Fair value of plan assets at end of year | 666 | 664 | |
Amounts recognized on the balance sheet: | |||
Other assets | 3 | 3 | |
Pension Benefits [Member] | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 775 | 739 | |
Service cost | 14 | 20 | $ 18 |
Interest cost | 21 | 27 | 29 |
Actuarial (gain) loss | 8 | 76 | |
Foreign currency translation adjustments | 2 | (1) | |
Benefits paid | (67) | (85) | |
Settlement | (1) | ||
Benefit obligation at end of year | 753 | 775 | 739 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 715 | 644 | |
Actual (loss) return on plan assets | 65 | 100 | |
Employer contributions | 1 | 57 | |
Foreign currency translation adjustments | 2 | (1) | |
Benefits paid | (67) | (85) | |
Fair value of plan assets at end of year | 716 | 715 | 644 |
Funded status | (37) | (60) | |
Amounts recognized on the balance sheet: | |||
Other assets | 3 | 3 | |
Accrued and other liabilities | (2) | (2) | |
Other liabilities | (38) | (61) | |
Amounts recognized on the Balance Sheet | (37) | (60) | |
Amounts recognized in accumulated other comprehensive loss, pre-tax: | |||
Net loss (gain) | 361 | 392 | |
Postretirement Benefits [Member] | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 11 | 12 | |
Plan participants' contributions | 1 | 1 | |
Actuarial (gain) loss | 2 | ||
Benefits paid | (1) | (2) | |
Benefit obligation at end of year | 13 | 11 | $ 12 |
Change in plan assets | |||
Benefits paid | (1) | (2) | |
Funded status | (13) | (11) | |
Amounts recognized on the balance sheet: | |||
Accrued and other liabilities | (1) | (1) | |
Other liabilities | (12) | (10) | |
Amounts recognized on the Balance Sheet | (13) | (11) | |
Amounts recognized in accumulated other comprehensive loss, pre-tax: | |||
Net loss (gain) | $ (2) | $ (5) |
Retirement Plans and Other Be_5
Retirement Plans and Other Benefits (Information for Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Retirement Plans and Other Benefits [Abstract] | ||
Projected benefit obligation | $ 706 | $ 727 |
Accumulated benefit obligation | 706 | 727 |
Fair value of plan assets | $ 666 | $ 664 |
Retirement Plans and Other Be_6
Retirement Plans and Other Benefits (Changes in Accumulated Other Comprehensive Loss) (Details) $ in Millions | 12 Months Ended |
Jan. 30, 2021USD ($) | |
Pension Benefits [Member] | |
Schedule of Pension and Other Postretirement Benefits Recognized in Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Net actuarial loss (gain) at beginning of year | $ 392 |
Amortization of net (loss) gain | (12) |
Loss (gain) arising during the year | (20) |
Foreign currency fluctuations | 1 |
Net actuarial loss (gain) at end of year | 361 |
Postretirement Benefits [Member] | |
Schedule of Pension and Other Postretirement Benefits Recognized in Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Net actuarial loss (gain) at beginning of year | (5) |
Amortization of net (loss) gain | 1 |
Loss (gain) arising during the year | 2 |
Net actuarial loss (gain) at end of year | $ (2) |
Retirement Plans and Other Be_7
Retirement Plans and Other Benefits (Weighted-Average Assumptions used to Determine Benefit Obligations and Net Benefit Cost) (Details) | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Pension Benefits [Member] | |||
Schedule of Benefit Obligations Weighted Average Assumptions [Line Items] | |||
Discount rate, net periodic benefit costs | 2.90% | 4.00% | 4.00% |
Rate of compensation increase, net periodic benefit costs | 3.60% | 3.60% | 3.60% |
Expected long-term rate of return on assets, net periodic benefit costs | 5.50% | 5.80% | 5.90% |
Discount rate, benefit obligation | 2.50% | 2.90% | |
Rate of compensation increase, benefit obligation | 3.60% | 3.60% | |
Postretirement Benefits [Member] | |||
Schedule of Benefit Obligations Weighted Average Assumptions [Line Items] | |||
Discount rate, net periodic benefit costs | 3.00% | 4.10% | 3.70% |
Discount rate, benefit obligation | 2.80% | 3.00% |
Retirement Plans and Other Be_8
Retirement Plans and Other Benefits (Net Benefit Expense (Income)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net benefit expense (income) | $ (5) | $ 2 | $ 1 |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 14 | 20 | 18 |
Interest cost | 21 | 27 | 29 |
Expected return on plan assets | (37) | (37) | (38) |
Amortization of net loss (gain) | 12 | 12 | 12 |
Net benefit expense (income) | 10 | 22 | 21 |
Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of net loss (gain) | (1) | (1) | (1) |
Net benefit expense (income) | $ (1) | $ (1) | $ (1) |
Retirement Plans and Other Be_9
Retirement Plans and Other Benefits (Assumed Health Care Cost Trend Rates Related to Measurement of SERP Medical Plan Obligations) (Details) | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Medical care | Defined Benefit Obligations | |||
Health Care Cost Trend Rates Assumptions [Line Items] | |||
Initial cost trend rate | 6.30% | 6.50% | 6.50% |
Ultimate cost trend rate | 5.00% | 5.00% | 5.00% |
Year that the ultimate cost trend rate is reached | 2025 | 2025 | 2025 |
Medical care | Net Periodic Benefit Costs | |||
Health Care Cost Trend Rates Assumptions [Line Items] | |||
Initial cost trend rate | 6.50% | 6.50% | 7.00% |
Ultimate cost trend rate | 5.00% | 5.00% | 5.00% |
Year that the ultimate cost trend rate is reached | 2025 | 2025 | 2025 |
Dental care | Defined Benefit Obligations | |||
Health Care Cost Trend Rates Assumptions [Line Items] | |||
Initial cost trend rate | 5.00% | 5.00% | 5.00% |
Ultimate cost trend rate | 5.00% | 5.00% | 5.00% |
Year that the ultimate cost trend rate is reached | 2020 | 2020 | 2019 |
Dental care | Net Periodic Benefit Costs | |||
Health Care Cost Trend Rates Assumptions [Line Items] | |||
Initial cost trend rate | 5.00% | 5.00% | 5.00% |
Ultimate cost trend rate | 5.00% | 5.00% | 5.00% |
Year that the ultimate cost trend rate is reached | 2020 | 2019 | 2018 |
Retirement Plans and Other B_10
Retirement Plans and Other Benefits (Fair Values of Plan Assets) (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 |
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | $ 666 | $ 664 | |
Pension Benefits [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 716 | 715 | $ 644 |
CANADA | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 50 | 51 | |
CANADA | Cash and Cash Equivalents | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 1 | ||
CANADA | Defined Benefit Plan, Equity Securities, Non-US [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 3 | 2 | |
CANADA | Fixed Income Securities, Canada Cash Matched Bonds [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 47 | 48 | |
CANADA | Level 1 [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 3 | ||
CANADA | Level 1 [Member] | Defined Benefit Plan, Equity Securities, Non-US [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 3 | ||
CANADA | Level 2 [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 47 | ||
CANADA | Level 2 [Member] | Fixed Income Securities, Canada Cash Matched Bonds [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 47 | ||
United States | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 666 | 664 | |
United States | Cash and Cash Equivalents | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 4 | 3 | |
United States | Defined Benefit Plan, Equity Securities, US, Large Cap [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 117 | 116 | |
United States | Defined Benefit Plan, Equity Securities, US, Mid Cap [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 34 | 34 | |
United States | Defined Benefit Plan, Equity Securities, Non-US [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 84 | 78 | |
United States | Defined Benefit Plan, Equity Securities, Corporate Stock [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 17 | 15 | |
United States | Fixed Income Securities, Long Term Corporate And Government Bonds [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 269 | 273 | |
United States | Fixed Income Securities, Medium Term Corporate And Government Bonds [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 119 | 121 | |
United States | Defined Benefit Plan, Real Estate [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 22 | 23 | |
United States | Defined Benefit Plan, Insurance Contracts [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | $ 1 | ||
United States | Level 1 [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 17 | ||
United States | Level 1 [Member] | Defined Benefit Plan, Equity Securities, Corporate Stock [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 17 | ||
United States | Level 2 [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 649 | ||
United States | Level 2 [Member] | Cash and Cash Equivalents | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 4 | ||
United States | Level 2 [Member] | Defined Benefit Plan, Equity Securities, US, Large Cap [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 117 | ||
United States | Level 2 [Member] | Defined Benefit Plan, Equity Securities, US, Mid Cap [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 34 | ||
United States | Level 2 [Member] | Defined Benefit Plan, Equity Securities, Non-US [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 84 | ||
United States | Level 2 [Member] | Fixed Income Securities, Long Term Corporate And Government Bonds [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 269 | ||
United States | Level 2 [Member] | Fixed Income Securities, Medium Term Corporate And Government Bonds [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | 119 | ||
United States | Level 2 [Member] | Defined Benefit Plan, Real Estate [Member] | |||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | |||
Fair value of plan assets | $ 22 |
Retirement Plans and Other B_11
Retirement Plans and Other Benefits (Estimated Future Benefit Payments) (Details) $ in Millions | Jan. 30, 2021USD ($) |
Pension Benefits [Member] | |
Schedule of Postemployment Expected Future Benefit Payments [Line Items] | |
2021 | $ 65 |
2022 | 53 |
2023 | 51 |
2024 | 49 |
2025 | 46 |
2026-2030 | 208 |
Postretirement Benefits [Member] | |
Schedule of Postemployment Expected Future Benefit Payments [Line Items] | |
2021 | 1 |
2022 | 1 |
2023 | 1 |
2026-2030 | $ 3 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | May 21, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant | 7,053,613 | |||
Share-based compensation, maximum percentage of employee salary | 10.00% | |||
Share-based compensation, maximum value permitted to purchase, per year | $ 25,000 | |||
Percentage of common stock fair market value on plan | 85.00% | |||
Proceeds from exercise of stock options | $ 4,000,000 | $ 5,000,000 | $ 5,000,000 | |
Stock Option Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards vesting period description | Options for employees become exercisable in substantially equal annual installments over a three-year period, beginning with the first anniversary of the date of grant of the option, unless a shorter or longer duration is established at the time of the option grant. | |||
Fair value of options vested | $ 6,000,000 | |||
Tax benefit realized from options exercised | 1,000,000 | |||
Proceeds from exercise of stock options | $ 4,000,000 | |||
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average expected award life (in years) | 1 year | |||
Award vesting period | 3 years | |||
Additional award vesting period | 1 year | |||
Fair value of awards | $ 6,000,000 | $ 5,000,000 | $ 7,000,000 | |
Dividends | $ 0 | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Additional award vesting period | 1 year | |||
Nonvested Stock Options [Member] | Stock Option Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 3,000,000 | |||
Unrecognized compensation cost related to nonvested stock options, weighted-average period expected to be recognized | 1 year 4 months 24 days | |||
Nonvested Stock Options [Member] | Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 23,000,000 | |||
2007 Stock Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized under plan | 14,000,000 | |||
Share-based compensation, expiration period | 10 years | |||
2013 ESPP [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average expected award life (in years) | 1 year | 1 year | 1 year | |
Shares authorized under plan | 3,000,000 | |||
Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant | 2,275,164 | |||
Shares purchased | 104,054 | 96,451 |
Share-Based Compensation (Total
Share-Based Compensation (Total Compensation Expense Included in SG&A and the Related Tax Benefits Recognized) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 15 | $ 18 | $ 22 |
Tax benefit recognized | 2 | 2 | 3 |
Stock Option Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | 6 | 6 | 7 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | $ 9 | $ 12 | $ 15 |
Share-Based Compensation (Assum
Share-Based Compensation (Assumptions Used to Compute Share-Based Compensation Expense) (Details) - $ / shares | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Stock Option Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average risk free rate of interest | 0.50% | 2.20% | 2.70% |
Expected volatility | 37.00% | 38.00% | 37.00% |
Weighted-average expected award life (in years) | 4 years 10 months 24 days | 5 years 6 months | 5 years 6 months |
Dividend yield | 4.30% | 2.60% | 3.10% |
Weighted-average fair value | $ 5.03 | $ 17.07 | $ 12.42 |
2013 ESPP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average risk free rate of interest | 1.80% | 2.20% | 2.00% |
Expected volatility | 48.00% | 54.00% | 50.00% |
Weighted-average expected award life (in years) | 1 year | 1 year | 1 year |
Dividend yield | 4.20% | 3.10% | 2.00% |
Weighted-average fair value | $ 13.97 | $ 16.68 | $ 15.29 |
Share-Based Compensation (Optio
Share-Based Compensation (Options Granted Under Stock Option Plans) (Details) | 12 Months Ended |
Jan. 30, 2021$ / sharesshares | |
Number of Shares | |
Options outstanding at beginning of year | 2,881,000 |
Granted | 1,069,000 |
Exercised | (165,000) |
Expired or cancelled | (245,000) |
Options outstanding at end of period | 3,540,000 |
Options exercisable at end of period | 2,403,000 |
Options available for future grant at end of period | 7,053,613 |
Weighted-Average Exercise Price | |
Options outstanding at beginning of year | $ / shares | $ 54.21 |
Granted | $ / shares | 21.61 |
Exercised | $ / shares | 23.36 |
Expired or cancelled | $ / shares | 34.47 |
Options outstanding at end of period | $ / shares | 47.17 |
Options exercisable at end of period | $ / shares | $ 55.81 |
Options outstanding, weighted-average remaining contractual life | 5 years 8 months 12 days |
Options exercisable at end of period, Weighted-average remaining contractual life | 4 years 2 months 12 days |
Share-Based Compensation (Tot_2
Share-Based Compensation (Total Intrinsic Value of Options Exercised) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Intrinsic value of stock options | |||
Exercised | $ 3 | $ 5 | $ 4 |
Share-Based Compensation (Aggre
Share-Based Compensation (Aggregate Intrinsic Value for Stock Options Outstanding and Exercisable) (Details) $ in Millions | Jan. 30, 2021USD ($) |
Share-Based Compensation [Abstract] | |
Outstanding | $ 24 |
Outstanding and exercisable | $ 5 |
Share-Based Compensation (Infor
Share-Based Compensation (Information about Stock Options Outstanding and Exercisable) (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Number of Shares | 3,540 | 2,881 |
Options outstanding, weighted-average remaining contractual life | 5 years 8 months 12 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 47.17 | $ 54.21 |
Options Exercisable, Number of Shares | 2,403 | |
Options Exercisable, Weighted-Average Exercise Price | $ 55.81 | |
$18.84 to $23.09 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Lower Limit | 18.84 | |
Range of Exercise Prices, Upper Limit | $ 23.09 | |
Options Outstanding, Number of Shares | 937 | |
Options outstanding, weighted-average remaining contractual life | 8 years 8 months 12 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 21.55 | |
Options Exercisable, Number of Shares | 60 | |
Options Exercisable, Weighted-Average Exercise Price | $ 20.72 | |
$24.75 to $36.51 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Lower Limit | 24.75 | |
Range of Exercise Prices, Upper Limit | $ 36.51 | |
Options Outstanding, Number of Shares | 329 | |
Options outstanding, weighted-average remaining contractual life | 2 years 3 months 18 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 33.01 | |
Options Exercisable, Number of Shares | 326 | |
Options Exercisable, Weighted-Average Exercise Price | $ 32.98 | |
$44.78 to $45.75 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Lower Limit | 44.78 | |
Range of Exercise Prices, Upper Limit | $ 45.75 | |
Options Outstanding, Number of Shares | 537 | |
Options outstanding, weighted-average remaining contractual life | 4 years 10 months 24 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 44.91 | |
Options Exercisable, Number of Shares | 447 | |
Options Exercisable, Weighted-Average Exercise Price | $ 44.94 | |
$46.64 to $62.11 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Lower Limit | 46.64 | |
Range of Exercise Prices, Upper Limit | $ 62.11 | |
Options Outstanding, Number of Shares | 869 | |
Options outstanding, weighted-average remaining contractual life | 5 years | |
Options Outstanding, Weighted-Average Exercise Price | $ 60.12 | |
Options Exercisable, Number of Shares | 703 | |
Options Exercisable, Weighted-Average Exercise Price | $ 60.50 | |
$63.33 to $73.21 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Lower Limit | 63.33 | |
Range of Exercise Prices, Upper Limit | $ 73.21 | |
Options Outstanding, Number of Shares | 868 | |
Options outstanding, weighted-average remaining contractual life | 4 years 9 months 18 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 68.60 | |
Options Exercisable, Number of Shares | 867 | |
Options Exercisable, Weighted-Average Exercise Price | $ 68.60 |
Share-Based Compensation (Chang
Share-Based Compensation (Changes in Nonvested Options) (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Jan. 30, 2021USD ($)$ / sharesshares | |
Restricted Stock Units [Member] | |
Number of Shares | |
Nonvested, Beginning Balance | 936 |
Granted | 639 |
Vested | (121) |
Performance adjustment | 51 |
Expired or cancelled | (157) |
Nonvested, Ending Balance | 1,348 |
Aggregate value | $ | $ 52 |
Wtg. Avg. remaining contractual life (in years) | 1 year 3 months 18 days |
Weighted-Average Grant Date Fair Value per Share | |
Nonvested, Beginning Balance | $ / shares | $ 49.25 |
Granted | $ / shares | 28.69 |
Vested | $ / shares | 53.27 |
Cancelled | $ / shares | 38.41 |
Nonvested, Ending Balance | $ / shares | $ 38.48 |
Performance Shares [Member] | |
Number of Shares | |
Performance adjustment | 200 |
Performance Shares [Member] | Minimum [Member] | |
Weighted-Average Grant Date Fair Value per Share | |
Percent of awards that my ultimately be earned | 0.00% |
Performance Shares [Member] | Maximum [Member] | |
Weighted-Average Grant Date Fair Value per Share | |
Percent of awards that my ultimately be earned | 200.00% |
Shareholder Rights Plan (Narrat
Shareholder Rights Plan (Narrative) (Details) | Dec. 07, 2020$ / sharesshares |
Rights Agreement [Member] | |
Class of Warrant or Right [Line Items] | |
Minimum percentage of ownership of outstanding common stock to become an Acquiring Person | 20.00% |
Percent discount common stock may be purchased at by Right holder | 50.00% |
Redemption price of Right | $ 0.001 |
Series C Junior Participating Preferred Stock [Member] | |
Class of Warrant or Right [Line Items] | |
Preferred stock, par value | 1 |
Preferred stock, price per share | $ 210 |
Series C Junior Participating Preferred Stock [Member] | Rights Agreement [Member] | |
Class of Warrant or Right [Line Items] | |
Preferred stock shares for purchase by each Right | shares | 0.001 |
Quarterly Results (Unaudited)_2
Quarterly Results (Unaudited) (Schedule of Quarterly Results) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
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. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Quarterly Results (Unaudited) [Abstract] | |||||||||||
Sales | $ 2,189 | $ 2,106 | $ 2,077 | $ 1,176 | $ 2,221 | $ 1,932 | $ 1,774 | $ 2,078 | $ 7,548 | $ 8,005 | $ 7,939 |
Gross margin | 724 | 650 | 538 | 271 | 700 | 620 | 534 | 689 | 2,183 | 2,543 | |
Operating profit | 161 | 178 | 69 | (105) | 176 | 164 | 81 | 228 | 303 | 649 | 699 |
Net Income | $ 123 | $ 265 | $ 45 | $ (110) | $ 134 | $ 125 | $ 60 | $ 172 | $ 323 | $ 491 | $ 541 |
Earnings per share - basic | $ 1.18 | $ 2.54 | $ 0.43 | $ (1.06) | $ 1.28 | $ 1.16 | $ 0.55 | $ 1.53 | $ 3.10 | $ 4.52 | $ 4.68 |
Earnings per share - diluted | $ 1.17 | $ 2.52 | $ 0.43 | $ (1.06) | $ 1.27 | $ 1.16 | $ 0.55 | $ 1.52 | $ 3.08 | $ 4.50 | $ 4.66 |
Pension litigation charge | $ 13 | ||||||||||
Impairment of investments | $ 4 | $ 11 | |||||||||
Impairment charges | $ 66 | $ 15 | $ 48 | $ 97 | $ 48 | $ 19 | |||||
Tax Cuts and Jobs Act, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense | $ 190 |