Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jul. 31, 2021 | Sep. 03, 2021 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jul. 31, 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 | |
Security Exchange Name | NYSE | |
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 Common Stock, Shares Outstanding | 103,807,679 | |
Entity Central Index Key | 0000850209 | |
Current Fiscal Year End Date | --01-29 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Trading Symbol | FL | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jul. 31, 2021 | Jan. 30, 2021 | [1] | Aug. 01, 2020 |
Current assets: | ||||
Cash and cash equivalents | $ 1,845 | $ 1,680 | $ 1,373 | |
Merchandise inventories | 1,081 | 923 | 1,194 | |
Other current assets | 252 | 232 | 266 | |
Assets, current, total | 3,178 | 2,835 | 2,833 | |
Property and equipment, net | 743 | 788 | 782 | |
Operating lease right-of-use assets | 2,569 | 2,716 | 2,810 | |
Deferred taxes | 108 | 101 | 70 | |
Goodwill | 158 | 159 | 158 | |
Other intangible assets, net | 16 | 17 | 19 | |
Minority investments | 728 | 337 | 150 | |
Other assets | 85 | 90 | 90 | |
Total assets | 7,585 | 7,043 | 6,912 | |
Current liabilities: | ||||
Accounts payable | 539 | 402 | 630 | |
Accrued and other liabilities | 474 | 560 | 455 | |
Current portion of obligations under finance leases | 102 | 102 | ||
Operating lease liabilities classified as current | 566 | 580 | 587 | |
Liabilities, current, total | 1,681 | 1,644 | 1,672 | |
Long-term debt and obligations under finance leases | 10 | 8 | 124 | |
Long-term lease obligations | 2,363 | 2,499 | 2,579 | |
Other liabilities | 190 | 116 | 134 | |
Total liabilities | 4,244 | 4,267 | 4,509 | |
Shareholders' equity: | ||||
Common stock and paid-in capital: 104,515,702; 104,391,691; and 103,693,359 shares issued, respectively | 799 | 779 | 774 | |
Retained earnings | 2,916 | 2,326 | 1,996 | |
Accumulated other comprehensive loss | (338) | (331) | (367) | |
Less: Treasury stock at cost: 714,490; 426; and 74,236 shares, respectively | (41) | (3) | ||
Noncontrolling interest | 5 | 5 | ||
Total shareholders' equity | 3,341 | 2,776 | 2,403 | |
Liabilities and equity, total | $ 7,585 | $ 7,043 | $ 6,912 | |
[1] | The balance sheet at January 30, 2021 has been derived from the previously reported audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in Foot Locker, Inc.’s Annual Report on Form 10-K for the year ended January 30, 2021. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Jul. 31, 2021 | Jan. 30, 2021 | Aug. 01, 2020 |
CONSOLIDATED BALANCE SHEETS [Abstract] | |||
Common Stock, Shares Outstanding, Issued, Total | 104,515,702 | 103,693,359 | 104,391,691 |
Treasury Stock, Shares | 714,490 | 74,236 | 426 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||||
Sales | $ 2,275 | $ 2,077 | $ 4,428 | $ 3,253 |
Cost of sales | 1,477 | 1,539 | 2,881 | 2,444 |
Selling, general and administrative expenses | 450 | 387 | 868 | 703 |
Depreciation and amortization | 48 | 44 | 93 | 88 |
Impairment and other charges | 36 | 38 | 40 | 54 |
Income from operations | 264 | 69 | 546 | (36) |
Interest (expense) income, net | (2) | (2) | (4) | (3) |
Other income, net | 325 | 3 | 329 | 4 |
Income before income taxes | 587 | 70 | 871 | (35) |
Income tax expense | 157 | 25 | 239 | 30 |
Net income | $ 430 | $ 45 | $ 632 | $ (65) |
Basic earnings per share | $ 4.14 | $ 0.43 | $ 6.10 | $ (0.62) |
Weighted-average shares outstanding | 103.8 | 104.5 | 103.7 | 104.4 |
Diluted earnings per share | $ 4.09 | $ 0.43 | $ 6.02 | $ (0.62) |
Weighted-average shares outstanding, assuming dilution | 105.2 | 105.1 | 105.1 | 104.4 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net Income (loss) | $ 430 | $ 45 | $ 632 | $ (65) |
Foreign currency translation adjustment: | ||||
Translation adjustment arising during the period, net of income tax expense of $-, $4, $1, and $2, respectively | (14) | 36 | (10) | 20 |
Cash flow hedges: | ||||
Change in fair value of derivatives, net of income tax expense of $-, $-, $-, and $1, respectively | 3 | |||
Pension and postretirement adjustments: | ||||
Amortization of net actuarial gain/loss and prior service cost included in net periodic benefit costs, net of income tax expense of $-, $1, $1, and $2, respectively | 2 | 1 | 3 | 4 |
Comprehensive income (loss) | $ 418 | $ 82 | $ 625 | $ (38) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net income tax benefit on translation adjustment | $ 4 | $ 1 | $ 2 |
Change in fair value of derivatives, income tax benefit | 1 | ||
Amortization of net actuarial gain/loss and prior service cost included in net periodic benefit costs, income tax expense | $ 1 | $ 1 | $ 2 |
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 | |
Cumulative effect of the adoption new ASUs | $ 764 | $ 2,103 | $ (394) | $ 2,473 | |||
Beginning Balance at Feb. 01, 2020 | $ 764 | 2,103 | (394) | 2,473 | |||
Beginning Balance (in shares) at Feb. 01, 2020 | 104,188,000 | ||||||
Restricted stock issued (in shares) | 67,000 | ||||||
Issued under director and stock plans | $ 3 | 3 | |||||
Issued under director and stock plans (in shares) | 137,000 | ||||||
Share-based compensation expense | $ 7 | 7 | |||||
Shares of common stock used to satisfy tax withholding obligations (in shares) | (23,000) | ||||||
Reissued - employee stock purchase plan (in shares) | 23,000 | ||||||
Net Income (loss) | (65) | (65) | |||||
Cash dividends declared on common stock | (42) | (42) | |||||
Translation adjustment, net of tax | 20 | 20 | |||||
Change in cash flow hedges, net of tax | 3 | 3 | |||||
Pension and postretirement adjustments, net of tax | 4 | 4 | |||||
Ending Balance at Aug. 01, 2020 | $ 774 | 1,996 | (367) | $ 2,403 | |||
Ending Balance (in shares) at Aug. 01, 2020 | 104,392,000 | 104,391,691 | |||||
Ending Balance (in treasury shares) at Aug. 01, 2020 | (426) | ||||||
Cumulative effect of the adoption new ASUs | $ 767 | 1,951 | (404) | $ 2,314 | |||
Beginning Balance at May. 02, 2020 | $ 767 | 1,951 | (404) | 2,314 | |||
Beginning Balance (in shares) at May. 02, 2020 | 104,245,000 | ||||||
Beginning Balance (in treasury shares) at May. 02, 2020 | (23,000) | ||||||
Restricted stock issued (in shares) | 13,000 | ||||||
Issued under director and stock plans | $ 3 | 3 | |||||
Issued under director and stock plans (in shares) | 134,000 | ||||||
Share-based compensation expense | $ 4 | 4 | |||||
Reissued - employee stock purchase plan (in shares) | 23,000 | ||||||
Net Income (loss) | 45 | 45 | |||||
Translation adjustment, net of tax | 36 | 36 | |||||
Pension and postretirement adjustments, net of tax | 1 | 1 | |||||
Ending Balance at Aug. 01, 2020 | $ 774 | 1,996 | (367) | $ 2,403 | |||
Ending Balance (in shares) at Aug. 01, 2020 | 104,392,000 | 104,391,691 | |||||
Ending Balance (in treasury shares) at Aug. 01, 2020 | (426) | ||||||
Cumulative effect of the adoption new ASUs | $ 774 | 1,996 | (367) | $ 2,403 | |||
Cumulative effect of the adoption new ASUs | 779 | $ (3) | 2,326 | (331) | $ 5 | 2,776 | [1] |
Beginning Balance at Jan. 30, 2021 | $ 779 | $ (3) | 2,326 | (331) | 5 | $ 2,776 | [1] |
Beginning Balance (in shares) at Jan. 30, 2021 | 103,693,000 | 103,693,359 | |||||
Beginning Balance (in treasury shares) at Jan. 30, 2021 | (74,000) | (74,236) | |||||
Restricted stock issued (in shares) | 479,000 | ||||||
Issued under director and stock plans | $ 11 | $ 11 | |||||
Issued under director and stock plans (in shares) | 344,000 | ||||||
Share-based compensation expense | $ 16 | 16 | |||||
Shares of common stock used to satisfy tax withholding obligations | $ (11) | (11) | |||||
Shares of common stock used to satisfy tax withholding obligations (in shares) | (195,000) | ||||||
Share repurchases | $ (41) | (41) | |||||
Share repurchases (in shares) | (746,000) | ||||||
Reissued - employee stock purchase plan | (7) | $ 14 | 7 | ||||
Reissued - employee stock purchase plan (in shares) | 301,000 | ||||||
Net Income (loss) | 632 | 632 | |||||
Cash dividends declared on common stock | (42) | (42) | |||||
Translation adjustment, net of tax | (10) | (10) | |||||
Pension and postretirement adjustments, net of tax | 3 | 3 | |||||
Ending Balance at Jul. 31, 2021 | $ 799 | $ (41) | 2,916 | (338) | 5 | $ 3,341 | |
Ending Balance (in shares) at Jul. 31, 2021 | 104,516,000 | 104,515,702 | |||||
Ending Balance (in treasury shares) at Jul. 31, 2021 | (714,000) | (714,490) | |||||
Cumulative effect of the adoption new ASUs | $ 791 | $ (47) | 2,507 | (326) | 5 | $ 2,930 | |
Beginning Balance at May. 01, 2021 | $ 791 | $ (47) | 2,507 | (326) | 5 | 2,930 | |
Beginning Balance (in shares) at May. 01, 2021 | 104,286,000 | ||||||
Beginning Balance (in treasury shares) at May. 01, 2021 | (887,000) | ||||||
Restricted stock issued (in shares) | 11,000 | ||||||
Issued under director and stock plans | $ 7 | 7 | |||||
Issued under director and stock plans (in shares) | 219,000 | ||||||
Share-based compensation expense | $ 8 | 8 | |||||
Shares of common stock used to satisfy tax withholding obligations | $ (1) | (1) | |||||
Shares of common stock used to satisfy tax withholding obligations (in shares) | (3,000) | ||||||
Share repurchases | $ (7) | (7) | |||||
Share repurchases (in shares) | (125,000) | ||||||
Reissued - employee stock purchase plan | (7) | $ 14 | 7 | ||||
Reissued - employee stock purchase plan (in shares) | 301,000 | ||||||
Net Income (loss) | 430 | 430 | |||||
Cash dividends declared on common stock | (21) | (21) | |||||
Translation adjustment, net of tax | (14) | (14) | |||||
Pension and postretirement adjustments, net of tax | 2 | 2 | |||||
Ending Balance at Jul. 31, 2021 | $ 799 | $ (41) | 2,916 | (338) | 5 | $ 3,341 | |
Ending Balance (in shares) at Jul. 31, 2021 | 104,516,000 | 104,515,702 | |||||
Ending Balance (in treasury shares) at Jul. 31, 2021 | (714,000) | (714,490) | |||||
Cumulative effect of the adoption new ASUs | $ 799 | $ (41) | $ 2,916 | $ (338) | $ 5 | $ 3,341 | |
[1] | The balance sheet at January 30, 2021 has been derived from the previously reported audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in Foot Locker, Inc.’s Annual Report on Form 10-K for the year ended January 30, 2021. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2021 | Aug. 01, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared on common stock, per share | $ 0.20 | $ 0.40 | $ 0.40 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jul. 31, 2021 | Aug. 01, 2020 | |
From operating activities: | ||
Net Income (loss) | $ 632 | $ (65) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Non-cash impairment and other charges | 45 | 31 |
Non-cash gain | (314) | |
Depreciation and amortization | 93 | 88 |
Deferred income taxes | 67 | 22 |
Share-based compensation expense | 16 | 7 |
Change in assets and liabilities: | ||
Merchandise inventories | (163) | 12 |
Accounts payable | 139 | 291 |
Accrued and other liabilities | (12) | 142 |
Insurance receivable for inventory loss | 8 | |
Other, net | (109) | 78 |
Net cash provided by (used in) operating activities | 402 | 606 |
From investing activities: | ||
Capital expenditures | (87) | (83) |
Minority investments | (78) | (8) |
Proceeds from sale of property | 3 | |
Insurance proceeds related to loss on property and equipment | 3 | |
Net cash used in investing activities | (159) | (91) |
From financing activities: | ||
Purchase of treasury shares | (41) | |
Dividends paid on common stock | (42) | (42) |
Proceeds from exercise of stock options | 10 | |
Proceeds from common stock issued under employee stock plans | 2 | |
Treasury stock reissued under employee stock plan | 7 | |
Shares of common stock repurchased to satisfy tax withholding obligations | (11) | |
Payment of obligations under finance leases | (1) | |
Payment of revolving credit agreement costs | (1) | (4) |
Proceeds from the revolving credit facility | 330 | |
Repayment of the revolving credit facility | (330) | |
Net cash (used in) provided by financing activities | (79) | (44) |
Effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash | (1) | (3) |
Net change in cash, cash equivalents, and restricted cash | 163 | 468 |
Cash, cash equivalents, and restricted cash at beginning of year | 1,718 | 942 |
Cash, cash equivalents, and restricted cash at end of period | 1,881 | 1,410 |
Cash paid during the year: | ||
Interest | 6 | 7 |
Income taxes | 229 | 11 |
Non-cash investing and financing activities: | ||
Cash paid for amounts included in measurement of operating lease liabilities: | 358 | 279 |
Right-of-use assets obtained in exchange for lease obligations: | 171 | 135 |
Assets obtained in exchange for finance lease obligations | $ 4 | $ 4 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements contained in this report are unaudited. In the opinion of management, the condensed consolidated financial statements include all normal, recurring adjustments necessary for a fair presentation of the results for the interim periods presented. As used in these Notes to the Unaudited Condensed 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 accordance with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the amounts reported in the accompanying Unaudited Condensed Consolidated Financial Statements and these Notes and related disclosures. Actual results may differ from those estimates. The results of operations for any interim period are not necessarily indicative of the results expected for the year. The results of operations for the period ended July 31, 2021 are not necessarily indicative of the results to be expected for the full fiscal year due to the continued uncertainty of general economic conditions that may affect us for the remainder of 2021. Specifically, the ongoing pandemic (“COVID-19”) including the dissemination and adoption of COVID-19 vaccines and their effectiveness against COVID-19 and its evolving strains, some of which may be more transmissible or virulent than the initial strain or additional widespread resurgences in COVID-19 infections, including evolving safety protocols including requirements for proof of vaccination, are significant uncertainties. COVID-19, as well as port delays, may affect our sales, traffic to our stores, our distribution capabilities, and distribution capabilities of our suppliers. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Notes to Consolidated Financial Statements contained in our Form 10-K for the year ended January 30, 2021, as filed with the U.S. Securities and Exchange Commission on March 25, 2021. There were no significant changes to the policies disclosed in Note 1, Summary of Significant Accounting Policies Recent Accounting Pronouncements 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. |
Revenue
Revenue | 6 Months Ended |
Jul. 31, 2021 | |
Revenue [Abstract] | |
Revenue | 2. Revenue The table below presents sales disaggregated based upon sales channel. Sales are attributable to the channel in which the sales transaction is initiated. Thirteen weeks ended Twenty-six weeks ended July 31, August 1, July 31, August 1, ($ in millions) 2021 2020 2021 2020 Sales by Channel Stores $ 1,817 $ 1,388 $ 3,437 $ 2,202 Direct-to-customers 458 689 991 1,051 Total sales $ 2,275 $ 2,077 $ 4,428 $ 3,253 Sales disaggregated based upon geographic area is presented in the table below. Sales are attributable to the geographic area in which the sales transaction is fulfilled. Thirteen weeks ended Twenty-six weeks ended July 31, August 1, July 31, August 1, ($ in millions) 2021 2020 2021 2020 Sales by Geography United States $ 1,623 $ 1,529 $ 3,336 $ 2,440 International 652 548 1,092 813 Total sales $ 2,275 $ 2,077 $ 4,428 $ 3,253 Contract Liabilities 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. Breakage income is recognized as revenue in proportion to the pattern of rights exercised by the customer . The table below presents the activity of our gift card liability balance: July 31, August 1, ($ in millions) 2021 2020 Gift card liability at beginning of year $ 41 $ 35 Redemptions (122) (37) Breakage recognized in sales (9) (3) Activations 128 36 Gift card liability $ 38 $ 31 We elected not to disclose the information about remaining performance obligations since the amount of gift cards redeemed after 12 months is not significant. |
Segment Information
Segment Information | 6 Months Ended |
Jul. 31, 2021 | |
Segment Information [Abstract] | |
Segment Information | 3. 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 any of 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 any store or a combination of our distribution centers and stores depending on the availability of particular items. We evaluate performance based on several factors, primarily the banner’s financial results, referred to as division profit. Division profit reflects income before income taxes, impairment and other charges, corporate expense, non-operating income, and net interest expense. Thirteen weeks ended Twenty-six weeks ended July 31, August 1, July 31, August 1, ($ in millions) 2021 2020 2021 2020 Sales $ 2,275 $ 2,077 $ 4,428 $ 3,253 Operating Results Division profit 332 125 $ 647 $ 46 Less: Impairment and other charges (1) 36 38 40 54 Less: Corporate expense (2) 32 18 61 28 Income (loss) from operations 264 69 546 (36) Interest expense, net (2) (2) (4) (3) Other income, net 325 3 329 4 Income (loss) before income taxes $ 587 $ 70 $ 871 $ (35) (1) During the twenty-six weeks ended July 31, 2021, we recorded pre-tax charges as detailed in Note 4, Impairment and Other Charges . (2) Corporate expense consists of unallocated selling, general and administrative expenses, as well as depreciation and amortization related to our corporate headquarters, centrally managed departments, unallocated insurance and benefit programs, certain foreign exchange transaction gains and losses, and other items. |
Impairment and Other Charges
Impairment and Other Charges | 6 Months Ended |
Jul. 31, 2021 | |
Impairment and Other Charges [Abstract] | |
Impairment and Other Charges | 4. Impairment and Other Charges Thirteen weeks ended Twenty-six weeks ended July 31, August 1, July 31, August 1, ($ in millions) 2021 2020 2021 2020 Impairment of long-lived assets and right-of-use assets $ 39 $ — $ 39 $ 15 Lease termination costs 4 — 4 — Impairment of investments — — 2 — Reorganization costs — 3 2 3 (Insurance recovery)/ losses related to social unrest (7) 18 (7) 18 Runners Point shut down — 16 — 16 Pension litigation related charges — 1 — 2 Total impairment and other charges $ 36 $ 38 $ 40 $ 54 During the thirteen weeks ended July 31, 2021, we conducted an impairment review of certain Footaction stores as a result of the Company’s decision to convert many of the stores to other existing banner concepts and close the remaining stores, either through natural lease expiration or early termination. We evaluated the long-lived assets, including the right-of-use assets and recorded non-cash charges of $39 million to write down store fixtures, leasehold improvements, and right-of-use assets for approximately 60 locations. Additionally, we recorded charges of $4 million primarily in other lease-related termination costs. Partially offsetting these charges was $11 million of additional insurance recovery related to the prior year social unrest losses of $18 million. We recorded $7 million of the insurance recovery within impairment and other charges as it relates to the book value of losses recorded in 2020, with $4 million recorded in other income. We are continuing to work with our insurers to determine if additional incurred losses under our property insurance policy will be covered; however, we do not expect that future recoveries will be significant. During the first quarter of 2021, we recorded an impairment charge of $2 million related to the underperformance of one of our minority investments. Additionally, in connection with the reorganization of certain support functions, we recorded severance charges of $2 million. Due to the COVID-19 pandemic 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, of 70 stores and recorded non-cash charges of $15 million to write down store fixtures, leasehold improvements, and right-of-use assets. 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 planned to consolidate certain Eastbay operations from Wausau, Wisconsin into the Champs Sports headquarters in Bradenton, Florida. We recorded charges of $16 million related to the shutdown of the Runners Point business and $3 million related to the reorganization associated with Eastbay. We recorded charges of $1 million and $2 million for the thirteen and twenty-six weeks ended August 1, 2020, respectively, related to administrative expenses in connection with the pension plan reformation. |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 6 Months Ended |
Jul. 31, 2021 | |
Restricted Cash [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | 5. Cash, Cash Equivalents, and Restricted Cash The table below provides a reconciliation of cash and cash equivalents, as reported on our Condensed Consolidated Balance Sheets, to cash, cash equivalents, and restricted cash, as reported on our Condensed Consolidated Statements of Cash Flows: July 31, August 1, ($ in millions) 2021 2020 Cash and cash equivalents $ 1,845 $ 1,373 Restricted cash included in other current assets 7 7 Restricted cash included in other non-current assets 29 30 Cash, cash equivalents, and restricted cash $ 1,881 $ 1,410 Amounts included in restricted cash primarily relate to 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. |
Goodwill
Goodwill | 6 Months Ended |
Jul. 31, 2021 | |
Goodwill and Other Intangible Assets, Net [Abstract] | |
Goodwill | 6. Goodwill We review goodwill for impairment annually during the first quarter of each fiscal year, or more frequently if impairment indicators arise. The review of 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. The results of the first quarter analysis did not result in an impairment since the fair value of each reporting unit exceeded its carrying value. |
Other Intangible Assets, Net
Other Intangible Assets, Net | 6 Months Ended |
Jul. 31, 2021 | |
Goodwill and Other Intangible Assets, Net [Abstract] | |
Other Intangible Assets, Net | 7. Other Intangible Assets, net The components of finite-lived intangible assets and intangible assets not subject to amortization are as follows: July 31, 2021 August 1, 2020 Gross Accum. Net Gross Accum. Net ($ in millions) value amort. value value amort. value Amortized intangible assets: (1) Lease acquisition costs $ 116 $ (112) $ 4 $ 119 $ (113) $ 6 Trademarks / trade names 20 (17) 3 20 (16) 4 $ 136 $ (129) $ 7 $ 139 $ (129) $ 10 Indefinite life intangible assets: (1) Trademarks / trade names $ 9 $ 9 Other intangible assets, net $ 16 $ 19 (1) The change in the ending balances also reflects the effect of foreign currency fluctuations due primarily to movements of the euro in relation to the U.S. dollar. The annual review of intangible assets with indefinite lives performed during the first quarter of 2021 did not result in the recognition of impairment. Amortization expense recorded is as follows: Thirteen weeks ended Twenty-six weeks ended July 31, August 1, July 31, August 1, ($ in millions) 2021 2020 2021 2020 Amortization expense $ 1 $ 1 $ 2 $ 2 Estimated future amortization expense for finite-life intangible assets is as follows: ($ in millions) Remainder of 2021 $ 1 2022 3 2023 1 2024 1 2025 1 |
Revolving Credit Facility
Revolving Credit Facility | 6 Months Ended |
Jul. 31, 2021 | |
Revolving Credit Facility [Abstract] | |
Revolving Credit Facility | 8. Revolving Credit Facility On May 19, 2021, we entered into an amendment to the 2020 Credit Agreement (“Amended Credit Agreement”). The amendment provides for, among other things, (i) reducing the interest rates and commitment fees applicable to the loans and commitments, respectively, as described below, and (ii) reducing the “floor” applicable. The amendment provides that the interest rate applicable to loans drawn under the credit facility will be equal to, at our option, either a base rate, determined by reference to the federal funds rate, plus a margin of 0.25 percent to 0.75 percent per annum, or a Eurodollar rate, determined by reference to LIBOR, plus a margin of 1.25 percent to 1.75 percent per annum, in each case, depending on availability under the Amended Credit Agreement. In addition, we will pay a commitment fee of 0.25 percent per annum on the unused portion of the commitments under the Amended Credit Agreement. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jul. 31, 2021 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 9. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss (“AOCL”), net of tax, is comprised of the following: July 31, August 1, January 30, ($ in millions) 2021 2020 2021 Foreign currency translation adjustments $ (74) $ (84) $ (64) Cash flow hedges (1) — (1) Unrecognized pension cost and postretirement benefit (263) (283) (266) $ (338) $ (367) $ (331) The changes in AOCL for the twenty-six weeks ended July 31, 2021 were as follows: Foreign Items Related Currency to Pension and Translation Cash Flow Postretirement ($ in millions) Adjustments Hedges Benefits Total Balance as of January 30, 2021 $ (64) $ (1) $ (266) $ (331) OCI before reclassification (10) — (1) (11) Amortization of pension actuarial loss, net of tax — — 4 4 Other comprehensive income (10) — 3 (7) Balance as of July 31, 2021 $ (74) $ (1) $ (263) $ (338) Reclassifications from AOCL for the twenty-six weeks ended July 31, 2021 were as follows: ($ in millions) Amortization of actuarial loss: Pension benefits $ 5 Income tax benefit (1) Total, net of tax $ 4 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 31, 2021 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 10. Fair Value Measurements Our financial assets are recorded at fair value, using a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure 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. During the second quarter of 2021, we invested $68 million to acquire a common stock minority stake in a public entity, Retailors, Ltd, which is traded on the Tel Aviv stock exchange. Our investment was at a discount to the initial public offering price. This investment is classified as a Level 1 instrument since the fair value is readily available in an active market. The fair value of the auction rate security, classified as available-for-sale, is determined by using quoted prices for similar instruments in active markets and accordingly is classified as a Level 2 instrument. Our derivative financial instruments are valued using market-based inputs to valuation models. These valuation models require a variety of inputs, including contractual terms, market prices, yield curves, and measures of volatility and, therefore, are classified as Level 2 instruments. Assets and Liabilities Measured at Fair Value on a Recurring Basis ($ in millions) As of July 31, 2021 As of August 1, 2020 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Minority investment in common stock 92 — — — — — Available-for-sale security — 7 — — 7 — Foreign exchange forward contracts — 1 — — 1 — Total Assets $ 92 $ 8 $ — $ — $ 8 $ — Liabilities Foreign exchange forward contracts — 2 — — 4 — Total Liabilities $ — $ 2 $ — $ — $ 4 $ — There were no transfers into or out of Level 1, Level 2, or Level 3 assets and liabilities 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. Minority investments measured using the fair value measurement alternative had a carrying value of $612 million and $137 million as of July 31, 2021 and August 1, 2020, respectively. During the second quarter of 2021, we recorded a $290 million increase in the fair value of our minority investment in GOAT. GOAT received additional funding at a higher valuation than the investment amount previously on our balance sheet. During the first quarter of 2021, we recorded a non-cash charge of $2 million related to the write-down of one of our minority investments, resulting in $13 million of cumulative impairments. Long-Term Debt The fair value of long-term debt is determined by using model-derived valuations in which all significant inputs or significant value drivers are observable in active markets and, therefore, are classified as Level 2. The carrying value and estimated fair value of long-term debt were as follows: ($ in millions) July 31, 2021 August 1, 2020 Carrying value $ 99 $ 121 Fair value $ 102 $ 129 The carrying values of cash and cash equivalents, and other current receivables and payables approximate their fair value. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jul. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 11. Earnings Per Share We account for earnings per share (“EPS”) using the treasury stock method. Basic EPS is computed by dividing net income (loss) for the period by the weighted-average number of common shares outstanding at the end of the period. Diluted earnings per share 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 diluted earnings per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect on EPS. The computation of basic and diluted EPS is as follows: Thirteen weeks ended Twenty-six weeks ended July 31, August 1, July 31, August 1, (in millions, except per share data) 2021 2020 2021 2020 Net income (loss) $ 430 $ 45 $ 632 $ (65) Weighted-average common shares outstanding 103.8 104.5 103.7 104.4 Dilutive effect of potential common shares 1.4 0.6 1.4 — Weighted-average common shares outstanding assuming dilution 105.2 105.1 105.1 104.4 Earnings (loss) per share - basic $ 4.14 $ 0.43 $ 6.10 $ (0.62) Earnings (loss) per share - diluted $ 4.09 $ 0.43 $ 6.02 $ (0.62) Anti-dilutive share-based awards excluded from diluted calculation 1.5 2.7 1.7 2.7 Performance stock units related to our long-term incentive programs of 0.6 million and 0.5 million have been excluded from diluted weighted-average shares for the periods ended July 31, 2021 and August 1, 2020, respectively. The issuance of these shares are contingent on our performance metrics as compared to the pre-established performance goals, which have not been achieved. |
Pension
Pension | 6 Months Ended |
Jul. 31, 2021 | |
Retirement Plans and Other Benefits [Abstract] | |
Retirement Plans and Other Benefits | 12. Pension The components of net periodic pension benefit expense are presented in the table below. Service cost is recognized as part of SG&A expense, while the other components are recognized as part of Other income, net. Thirteen weeks ended Twenty-six weeks ended July 31, August 1, July 31, August 1, ($ in millions) 2021 2020 2021 2020 Service cost $ 4 $ 3 $ 8 $ 7 Interest cost 5 6 9 11 Expected return on plan assets (8) (10) (17) (19) Amortization of net loss 2 3 5 6 Net benefit expense $ 3 $ 2 $ 5 $ 5 |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jul. 31, 2021 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | 13. Share-Based Compensation Total compensation expense, included in SG&A, and the associated tax benefits recognized related to our share-based compensation plans, were as follows: Thirteen weeks ended Twenty-six weeks ended July 31, August 1, July 31, August 1, ($ in millions) 2021 2020 2021 2020 Options and shares purchased under the stock purchase plan $ 2 $ 2 $ 4 $ 4 Restricted stock units and performance stock units 6 2 12 3 Total share-based compensation expense $ 8 $ 4 $ 16 $ 7 Tax benefit recognized $ 1 $ 1 $ 2 $ 1 Valuation Model and Assumptions We use the Black-Scholes option-pricing model 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. The table below shows assumptions used to compute share-based compensation expense for awards granted during the twenty-six weeks ended July 31, 2021 and August 1, 2020: Stock Option Plans Stock Purchase Plan July 31, August 1, July 31, August 1, 2021 2020 2021 2020 Weighted-average risk free rate of interest 0.9 % 0.6 % 0.2 % 2.0 % Expected volatility 47 % 42 % 48 % 48 % Weighted-average expected award life (in years) 5.5 5.5 1.0 1.0 Dividend yield 1.5 % 4.9 % 5.0 % 4.0 % Weighted-average fair value $ 20.22 $ 5.03 $ 7.84 $ 15.03 The information in the table below provides activity under our stock option plans for the twenty-six weeks ended July 31, 2021: 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 3,540 $ 47.17 Granted 183 53.82 Exercised (302) 33.31 Expired or cancelled (122) 52.43 Options outstanding at July 31, 2021 3,299 5.5 $ 48.61 Options exercisable at July 31, 2021 2,497 4.4 $ 53.74 Options available for future grant at July 31, 2021 5,491 The total fair value of options vested during the twenty-six weeks ended July 31, 2021 and August 1, 2020 was $4 million and $5 million, respectively. The cash received and related tax benefits realized from option exercises during the twenty-six weeks ended July 31, 2021 was $10 million and $2 million, respectively. The cash received and related tax benefits realized from option exercises during the twenty-six weeks ended August 1, 2020 were not significant. The total intrinsic value of options exercised (the difference between the market price of our common stock on the exercise date and the price paid by the optionee to exercise the option) is presented below: Thirteen weeks ended Twenty-six weeks ended July 31, August 1, July 31, August 1, ($ in millions) 2021 2020 2021 2020 Exercised $ 5 $ — $ 8 $ — The aggregate intrinsic value for stock options outstanding, and outstanding and exercisable (the difference between our 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: Twenty-six weeks ended ($ in millions) July 31, 2021 August 1, 2020 Outstanding $ 40 $ 10 Outstanding and exercisable $ 20 $ 1 As of July 31, 2021, there was $4 million of total unrecognized compensation cost related to nonvested stock options which is expected to be recognized over a remaining weighted-average period of 1.6 years. The table below summarizes information about stock options outstanding and exercisable at July 31, 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) $21.60 - $34.24 981 6.9 $ 23.49 444 $ 25.76 $34.75 - $52.13 504 4.5 44.41 496 44.42 $52.82 - $79.23 1,814 4.9 63.36 1,557 64.69 3,299 5.5 $ 48.61 2,497 $ 53.74 Restricted Stock Units and Performance Stock Units Restricted stock units (“RSU”) are awarded to certain officers, key employees of the Company, and nonemployee directors. Additionally, performance stock units (“PSU”) are awarded to certain officers and key employees. Each RSU and PSU represents the right to receive one share of our common stock provided that the applicable performance and vesting conditions are satisfied. Generally, RSU awards fully vest after the passage of time, typically three years for employees and one year for nonemployee directors, provided there is continued service with the Company until the vesting date, subject to the terms of the award. PSU awards are earned only after the attainment of performance goals in connection with the relevant performance period and vest after an additional one-year period. No dividends are paid or accumulated on any RSU or PSU awards. Compensation expense is recognized using the market value at the date of grant and is amortized over the vesting period. RSU and PSU activity for the twenty-six weeks ended July 31, 2021 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 1,348 $ 38.48 Granted 424 54.20 Vested (503) 43.81 Performance adjustment (1) 240 Forfeited (39) 34.47 Nonvested at July 31, 2021 1,470 2.0 $ 43.54 Aggregate value ($ in millions) $ 64 (1) This represents adjustments made to PSUs and reflect changes in estimates based upon our current performance against predefined financial targets. The total value of awards that vested during the twenty-six weeks ended July 31, 2021 and August 1, 2020 was $22 million and $4 million, respectively. As of July 31, 2021, there was $45 million of total unrecognized compensation cost related to nonvested awards. |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Jul. 31, 2021 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | 14. 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. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events Acquisition of WSS On August 1, 2021, we signed a definitive agreement to acquire Eurostar, Inc., a Delaware corporation (“WSS”). WSS is a U.S.-based athletic footwear and apparel retailer, which operates 93 stores primarily on the West Coast. Following the transaction, WSS will maintain its name, operating as a new banner in our portfolio. The aggregate consideration in the transaction will consist of $750 million in cash, subject to customary adjustments to reflect changes in net working capital, cash, indebtedness, and transaction expenses. The transaction will be funded with available cash. The transaction is currently expected to close in September 2021, subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the satisfaction of customary closing conditions. Acquisition of atmos On August 2, 2021, we announced that we entered into a definitive agreement to acquire Text Trading Company, K.K. (“atmos”), which owns and licenses the atmos brand, a digitally led, premium, global retailer headquartered in Japan. atmos is a culturally connected brand featuring premium sneakers and apparel, an exclusive in-house label, collaborative relationships with leading vendors in the sneaker ecosystem, experiential stores, and a robust omni-channel platform. The purchase price is $360 million and additional contingent consideration of up to $111 million based on achieving certain revenue growth and EBITDA performance targets. The transaction will be funded with the Company’s available cash. atmos will maintain its name, operating as a new banner in our portfolio. The transaction is currently expected to close early in the fourth quarter of 2021, subject to the satisfaction of customary closing conditions. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 6 Months Ended |
Jul. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently issued accounting pronouncements did not, or are not believed by management to, have a material effect on our present or future consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Revenue [Abstract] | |
Disaggregation of Revenue | The table below presents sales disaggregated based upon sales channel. Sales are attributable to the channel in which the sales transaction is initiated. Thirteen weeks ended Twenty-six weeks ended July 31, August 1, July 31, August 1, ($ in millions) 2021 2020 2021 2020 Sales by Channel Stores $ 1,817 $ 1,388 $ 3,437 $ 2,202 Direct-to-customers 458 689 991 1,051 Total sales $ 2,275 $ 2,077 $ 4,428 $ 3,253 |
Revenue from External Customers by Geographic Areas | Sales disaggregated based upon geographic area is presented in the table below. Sales are attributable to the geographic area in which the sales transaction is fulfilled. Thirteen weeks ended Twenty-six weeks ended July 31, August 1, July 31, August 1, ($ in millions) 2021 2020 2021 2020 Sales by Geography United States $ 1,623 $ 1,529 $ 3,336 $ 2,440 International 652 548 1,092 813 Total sales $ 2,275 $ 2,077 $ 4,428 $ 3,253 |
Activity of Gift Card Liability Balance | July 31, August 1, ($ in millions) 2021 2020 Gift card liability at beginning of year $ 41 $ 35 Redemptions (122) (37) Breakage recognized in sales (9) (3) Activations 128 36 Gift card liability $ 38 $ 31 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Segment Information [Abstract] | |
Sales and Division Operating Results for Reportable Segments | Thirteen weeks ended Twenty-six weeks ended July 31, August 1, July 31, August 1, ($ in millions) 2021 2020 2021 2020 Sales $ 2,275 $ 2,077 $ 4,428 $ 3,253 Operating Results Division profit 332 125 $ 647 $ 46 Less: Impairment and other charges (1) 36 38 40 54 Less: Corporate expense (2) 32 18 61 28 Income (loss) from operations 264 69 546 (36) Interest expense, net (2) (2) (4) (3) Other income, net 325 3 329 4 Income (loss) before income taxes $ 587 $ 70 $ 871 $ (35) (1) During the twenty-six weeks ended July 31, 2021, we recorded pre-tax charges as detailed in Note 4, Impairment and Other Charges . (2) Corporate expense consists of unallocated selling, general and administrative expenses, as well as depreciation and amortization related to our corporate headquarters, centrally managed departments, unallocated insurance and benefit programs, certain foreign exchange transaction gains and losses, and other items. |
Disaggregation of Revenue | The table below presents sales disaggregated based upon sales channel. Sales are attributable to the channel in which the sales transaction is initiated. Thirteen weeks ended Twenty-six weeks ended July 31, August 1, July 31, August 1, ($ in millions) 2021 2020 2021 2020 Sales by Channel Stores $ 1,817 $ 1,388 $ 3,437 $ 2,202 Direct-to-customers 458 689 991 1,051 Total sales $ 2,275 $ 2,077 $ 4,428 $ 3,253 |
Impairment and Other Charges (T
Impairment and Other Charges (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Impairment and Other Charges [Abstract] | |
Schedule of Impairment and Other Charges | Thirteen weeks ended Twenty-six weeks ended July 31, August 1, July 31, August 1, ($ in millions) 2021 2020 2021 2020 Impairment of long-lived assets and right-of-use assets $ 39 $ — $ 39 $ 15 Lease termination costs 4 — 4 — Impairment of investments — — 2 — Reorganization costs — 3 2 3 (Insurance recovery)/ losses related to social unrest (7) 18 (7) 18 Runners Point shut down — 16 — 16 Pension litigation related charges — 1 — 2 Total impairment and other charges $ 36 $ 38 $ 40 $ 54 |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Restricted Cash [Abstract] | |
Reconciliation of Cash and Cash Equivalents | The table below provides a reconciliation of cash and cash equivalents, as reported on our Condensed Consolidated Balance Sheets, to cash, cash equivalents, and restricted cash, as reported on our Condensed Consolidated Statements of Cash Flows: July 31, August 1, ($ in millions) 2021 2020 Cash and cash equivalents $ 1,845 $ 1,373 Restricted cash included in other current assets 7 7 Restricted cash included in other non-current assets 29 30 Cash, cash equivalents, and restricted cash $ 1,881 $ 1,410 |
Other Intangible Assets, Net (T
Other Intangible Assets, Net (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Goodwill and Other Intangible Assets, Net [Abstract] | |
Components of Intangible Assets | The components of finite-lived intangible assets and intangible assets not subject to amortization are as follows: July 31, 2021 August 1, 2020 Gross Accum. Net Gross Accum. Net ($ in millions) value amort. value value amort. value Amortized intangible assets: (1) Lease acquisition costs $ 116 $ (112) $ 4 $ 119 $ (113) $ 6 Trademarks / trade names 20 (17) 3 20 (16) 4 $ 136 $ (129) $ 7 $ 139 $ (129) $ 10 Indefinite life intangible assets: (1) Trademarks / trade names $ 9 $ 9 Other intangible assets, net $ 16 $ 19 (1) The change in the ending balances also reflects the effect of foreign currency fluctuations due primarily to movements of the euro in relation to the U.S. dollar. |
Amortization Expense | Amortization expense recorded is as follows: Thirteen weeks ended Twenty-six weeks ended July 31, August 1, July 31, August 1, ($ in millions) 2021 2020 2021 2020 Amortization expense $ 1 $ 1 $ 2 $ 2 |
Estimated Future Expected Amortization Expense for Finite Life Intangible Assets | Estimated future amortization expense for finite-life intangible assets is as follows: ($ in millions) Remainder of 2021 $ 1 2022 3 2023 1 2024 1 2025 1 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss (“AOCL”), net of tax, is comprised of the following: July 31, August 1, January 30, ($ in millions) 2021 2020 2021 Foreign currency translation adjustments $ (74) $ (84) $ (64) Cash flow hedges (1) — (1) Unrecognized pension cost and postretirement benefit (263) (283) (266) $ (338) $ (367) $ (331) |
Changes in Accumulated Other Comprehensive Loss | The changes in AOCL for the twenty-six weeks ended July 31, 2021 were as follows: Foreign Items Related Currency to Pension and Translation Cash Flow Postretirement ($ in millions) Adjustments Hedges Benefits Total Balance as of January 30, 2021 $ (64) $ (1) $ (266) $ (331) OCI before reclassification (10) — (1) (11) Amortization of pension actuarial loss, net of tax — — 4 4 Other comprehensive income (10) — 3 (7) Balance as of July 31, 2021 $ (74) $ (1) $ (263) $ (338) |
Reclassification from Accumulated Other Comprehensive Loss | Reclassifications from AOCL for the twenty-six weeks ended July 31, 2021 were as follows: ($ in millions) Amortization of actuarial loss: Pension benefits $ 5 Income tax benefit (1) Total, net of tax $ 4 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 31, 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 July 31, 2021 As of August 1, 2020 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Minority investment in common stock 92 — — — — — Available-for-sale security — 7 — — 7 — Foreign exchange forward contracts — 1 — — 1 — Total Assets $ 92 $ 8 $ — $ — $ 8 $ — Liabilities Foreign exchange forward contracts — 2 — — 4 — Total Liabilities $ — $ 2 $ — $ — $ 4 $ — |
Carrying Value and Estimated Fair Value of Long-Term Debt | The carrying value and estimated fair value of long-term debt were as follows: ($ in millions) July 31, 2021 August 1, 2020 Carrying value $ 99 $ 121 Fair value $ 102 $ 129 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Weighted-Average Number of Common Shares Outstanding | The computation of basic and diluted EPS is as follows: Thirteen weeks ended Twenty-six weeks ended July 31, August 1, July 31, August 1, (in millions, except per share data) 2021 2020 2021 2020 Net income (loss) $ 430 $ 45 $ 632 $ (65) Weighted-average common shares outstanding 103.8 104.5 103.7 104.4 Dilutive effect of potential common shares 1.4 0.6 1.4 — Weighted-average common shares outstanding assuming dilution 105.2 105.1 105.1 104.4 Earnings (loss) per share - basic $ 4.14 $ 0.43 $ 6.10 $ (0.62) Earnings (loss) per share - diluted $ 4.09 $ 0.43 $ 6.02 $ (0.62) Anti-dilutive share-based awards excluded from diluted calculation 1.5 2.7 1.7 2.7 |
Pension (Tables)
Pension (Tables) | 6 Months Ended |
Jul. 31, 2021 | |
Retirement Plans and Other Benefits [Abstract] | |
Net Benefit Expense (Income) | Thirteen weeks ended Twenty-six weeks ended July 31, August 1, July 31, August 1, ($ in millions) 2021 2020 2021 2020 Service cost $ 4 $ 3 $ 8 $ 7 Interest cost 5 6 9 11 Expected return on plan assets (8) (10) (17) (19) Amortization of net loss 2 3 5 6 Net benefit expense $ 3 $ 2 $ 5 $ 5 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jul. 31, 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: Thirteen weeks ended Twenty-six weeks ended July 31, August 1, July 31, August 1, ($ in millions) 2021 2020 2021 2020 Options and shares purchased under the stock purchase plan $ 2 $ 2 $ 4 $ 4 Restricted stock units and performance stock units 6 2 12 3 Total share-based compensation expense $ 8 $ 4 $ 16 $ 7 Tax benefit recognized $ 1 $ 1 $ 2 $ 1 |
Assumptions used to Compute Share-Based Compensation Expense | The table below shows assumptions used to compute share-based compensation expense for awards granted during the twenty-six weeks ended July 31, 2021 and August 1, 2020: Stock Option Plans Stock Purchase Plan July 31, August 1, July 31, August 1, 2021 2020 2021 2020 Weighted-average risk free rate of interest 0.9 % 0.6 % 0.2 % 2.0 % Expected volatility 47 % 42 % 48 % 48 % Weighted-average expected award life (in years) 5.5 5.5 1.0 1.0 Dividend yield 1.5 % 4.9 % 5.0 % 4.0 % Weighted-average fair value $ 20.22 $ 5.03 $ 7.84 $ 15.03 |
Options Granted under Stock Option Plans | The information in the table below provides activity under our stock option plans for the twenty-six weeks ended July 31, 2021: 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 3,540 $ 47.17 Granted 183 53.82 Exercised (302) 33.31 Expired or cancelled (122) 52.43 Options outstanding at July 31, 2021 3,299 5.5 $ 48.61 Options exercisable at July 31, 2021 2,497 4.4 $ 53.74 Options available for future grant at July 31, 2021 5,491 |
Total Intrinsic Value of Options Exercised | The total intrinsic value of options exercised (the difference between the market price of our common stock on the exercise date and the price paid by the optionee to exercise the option) is presented below: Thirteen weeks ended Twenty-six weeks ended July 31, August 1, July 31, August 1, ($ in millions) 2021 2020 2021 2020 Exercised $ 5 $ — $ 8 $ — |
Aggregate Intrinsic Value for Stock Options Outstanding and Exercisable | The aggregate intrinsic value for stock options outstanding, and outstanding and exercisable (the difference between our 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: Twenty-six weeks ended ($ in millions) July 31, 2021 August 1, 2020 Outstanding $ 40 $ 10 Outstanding and exercisable $ 20 $ 1 |
Information about Stock Options Outstanding and Exercisable | The table below summarizes information about stock options outstanding and exercisable at July 31, 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) $21.60 - $34.24 981 6.9 $ 23.49 444 $ 25.76 $34.75 - $52.13 504 4.5 44.41 496 44.42 $52.82 - $79.23 1,814 4.9 63.36 1,557 64.69 3,299 5.5 $ 48.61 2,497 $ 53.74 |
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 1,348 $ 38.48 Granted 424 54.20 Vested (503) 43.81 Performance adjustment (1) 240 Forfeited (39) 34.47 Nonvested at July 31, 2021 1,470 2.0 $ 43.54 Aggregate value ($ in millions) $ 64 (1) This represents adjustments made to PSUs and reflect changes in estimates based upon our current performance against predefined financial targets. |
Revenue (Schedule of Sales Disa
Revenue (Schedule of Sales Disaggregated by Sales Channel) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Sales | $ 2,275 | $ 2,077 | $ 4,428 | $ 3,253 |
Store Sales Channel [Member] | ||||
Sales | 1,817 | 1,388 | 3,437 | 2,202 |
Direct to Customers Sales Channel [Member] | ||||
Sales | $ 458 | $ 689 | $ 991 | $ 1,051 |
Revenue (Schedule of Sales Di_2
Revenue (Schedule of Sales Disaggregated by Geographic Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Sales | $ 2,275 | $ 2,077 | $ 4,428 | $ 3,253 |
United States | ||||
Sales | 1,623 | 1,529 | 3,336 | 2,440 |
International [Member] | ||||
Sales | $ 652 | $ 548 | $ 1,092 | $ 813 |
Revenue (Activity of Gift Card
Revenue (Activity of Gift Card Liability Balance) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 31, 2021 | Aug. 01, 2020 | |
Accrued gift card liability at beginning of period | $ 41 | $ 35 |
Accrued gift card liability at end of period | 38 | 31 |
Gift Card Redemption Revenue [Member] | ||
Revenue recognized | (122) | (37) |
Gift Card Breakage Revenue [Member] | ||
Revenue recognized | (9) | (3) |
Gift Card Activations [Member] | ||
Activations | $ 128 | $ 36 |
Segment Information (Sales and
Segment Information (Sales and Division Operating Results for Reportable Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Segment Information [Abstract] | ||||
Sales | $ 2,275 | $ 2,077 | $ 4,428 | $ 3,253 |
Division profit | 332 | 125 | 647 | 46 |
Less: Impairment and other charges | 36 | 38 | 40 | 54 |
Less: Corporate expense | 32 | 18 | 61 | 28 |
Income from operations | 264 | 69 | 546 | (36) |
Interest expense, net | (2) | (2) | (4) | (3) |
Other income, net | 325 | 3 | 329 | 4 |
Income before income taxes | 587 | $ 70 | 871 | $ (35) |
Non-cash gain | $ 290 | $ 314 |
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 | 6 Months Ended | 30 Months Ended | ||||
May 31, 2020 | Jul. 31, 2021 | May 01, 2021 | Aug. 01, 2020 | May 02, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | |
Impairment of long-lived assets and right-of-use assets | $ 39 | $ 15 | $ 39 | $ 15 | ||||
Lease termination costs | 4 | 4 | ||||||
Impairment of investments | $ 2 | 2 | $ 13 | |||||
Reorganization costs | $ 2 | $ 3 | 2 | 3 | ||||
(Insurance recovery)/ losses related to social unrest | (7) | 18 | (7) | 18 | ||||
Runners Point shut down | 16 | 16 | ||||||
Pension litigation related charges | 1 | 2 | ||||||
Total impairment and other charges | $ 36 | $ 38 | $ 40 | $ 54 | ||||
Eastbay [Member] | ||||||||
Reorganization costs | $ 3 |
Impairment and Other Charges (N
Impairment and Other Charges (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 30 Months Ended | ||||
May 31, 2020USD ($) | Jul. 31, 2021USD ($)store | May 01, 2021USD ($) | Aug. 01, 2020USD ($) | May 02, 2020USD ($)store | Jul. 31, 2021USD ($) | Aug. 01, 2020USD ($) | Jan. 30, 2021USD ($) | Jul. 31, 2021USD ($) | |
Impairment and Other Charges [Line Items] | |||||||||
Pension litigation charge | $ (1) | $ (2) | |||||||
Plan reformation cost | (1) | 2 | |||||||
Impairment of assets | $ 39 | $ 15 | $ 39 | 15 | |||||
Lease termination costs | $ (4) | (4) | |||||||
Impairments of minority investments | $ 2 | 2 | $ 13 | ||||||
Number of underperforming stores evaluated for impairment | store | 70 | ||||||||
Number of stores with non-cash impairment charge | store | 60 | ||||||||
Reorganization costs | $ 2 | $ 3 | 2 | $ 3 | |||||
Social Unrest [Member] | |||||||||
Impairment and Other Charges [Line Items] | |||||||||
(Insurance recovery)/ losses related to social unrest | $ 18 | ||||||||
Insurance recoveries from social unrest | $ 11 | ||||||||
Social Unrest [Member] | Impairment and other charges [Member] | |||||||||
Impairment and Other Charges [Line Items] | |||||||||
Insurance recoveries from social unrest | 7 | ||||||||
Social Unrest [Member] | Other Income [Member] | |||||||||
Impairment and Other Charges [Line Items] | |||||||||
Insurance recoveries from social unrest | $ 4 | ||||||||
Runners Point Group [Member] | |||||||||
Impairment and Other Charges [Line Items] | |||||||||
Business exit costs | $ 16 | ||||||||
Business Exit Costs | 16 | ||||||||
Eastbay [Member] | |||||||||
Impairment and Other Charges [Line Items] | |||||||||
Reorganization costs | $ 3 |
Impairment and Other Charges (R
Impairment and Other Charges (Restructuring Charges) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
May 31, 2020 | May 01, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Charges | $ 2 | $ 3 | $ 2 | $ 3 | |
Eastbay [Member] | |||||
Charges | $ 3 |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash (Reconciliation of Cash and Cash Equivalents) (Details) - USD ($) $ in Millions | Jul. 31, 2021 | Jan. 30, 2021 | Aug. 01, 2020 | Feb. 01, 2020 | |
Restricted Cash [Abstract] | |||||
Cash and cash equivalents | $ 1,845 | $ 1,680 | [1] | $ 1,373 | |
Restricted cash included in other current assets | 7 | 7 | |||
Restricted cash included in other non-current assets | 29 | 30 | |||
Cash, cash equivalents, and restricted cash | $ 1,881 | $ 1,718 | $ 1,410 | $ 942 | |
[1] | The balance sheet at January 30, 2021 has been derived from the previously reported audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in Foot Locker, Inc.’s Annual Report on Form 10-K for the year ended January 30, 2021. |
Other Intangible Assets, Net (S
Other Intangible Assets, Net (Schedule of Other Intangible Assets) (Details) - USD ($) $ in Millions | Jul. 31, 2021 | Jan. 30, 2021 | [1] | Aug. 01, 2020 |
Intangible Assets by Major Class [Line Items] | ||||
Amortized intangible assets, Gross value | $ 136 | $ 139 | ||
Amortized intangible assets, Accum. amort. | (129) | (129) | ||
Amortized intangible assets, Net value | 7 | 10 | ||
Other intangible assets, net | 16 | $ 17 | 19 | |
Lease Acquisition Costs [Member] | ||||
Intangible Assets by Major Class [Line Items] | ||||
Amortized intangible assets, Gross value | 116 | 119 | ||
Amortized intangible assets, Accum. amort. | (112) | (113) | ||
Amortized intangible assets, Net value | 4 | 6 | ||
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 | ||
Trademarks and Trade Names [Member] | ||||
Intangible Assets by Major Class [Line Items] | ||||
Indefinite life intangible assets, Net Value | $ 9 | $ 9 | ||
[1] | The balance sheet at January 30, 2021 has been derived from the previously reported audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in Foot Locker, Inc.’s Annual Report on Form 10-K for the year ended January 30, 2021. |
Other Intangible Assets, Net (A
Other Intangible Assets, Net (Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Goodwill and Other Intangible Assets, Net [Abstract] | ||||
Amortization expense | $ 1 | $ 1 | $ 2 | $ 2 |
Other Intangible Assets, Net (E
Other Intangible Assets, Net (Estimated Future Amortization Expense for Finite Lived Intangibles) (Details) $ in Millions | Jul. 31, 2021USD ($) |
Goodwill and Other Intangible Assets, Net [Abstract] | |
Remainder of 2021 | $ 1 |
2022 | 3 |
2023 | 1 |
2024 | 1 |
2025 | $ 1 |
Revolving Credit Facility (Narr
Revolving Credit Facility (Narrative) (Details) - Revolving Credit Facility [Member] | 2 Months Ended | 6 Months Ended |
Jul. 31, 2021 | Jul. 31, 2021 | |
Line of Credit Facility [Line Items] | ||
Credit agreement start date | May 19, 2021 | |
Commitment fee percentage | 0.25% | |
Federal Funds Rate [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt, basis spread on variable rate | 0.75% | |
Federal Funds Rate [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt, basis spread on variable rate | 0.25% | |
Eurodollar [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt, basis spread on variable rate | 1.75% | |
Eurodollar [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt, basis spread on variable rate | 1.25% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | Jul. 31, 2021 | Jan. 30, 2021 | Aug. 01, 2020 | |
Accumulated Other Comprehensive Loss [Abstract] | ||||
Foreign currency translation adjustments | $ (74) | $ (64) | $ (84) | |
Cash flow hedges | (1) | (1) | ||
Unrecognized pension cost and postretirement benefit | (263) | (266) | (283) | |
Accumulated other comprehensive loss ("AOCL"), net of tax | $ (338) | $ (331) | [1] | $ (367) |
[1] | The balance sheet at January 30, 2021 has been derived from the previously reported audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in Foot Locker, Inc.’s Annual Report on Form 10-K for the year ended January 30, 2021. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Changes in Accumulated Other Comprehensive Loss) (Details) $ in Millions | 6 Months Ended | |
Jul. 31, 2021USD ($) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ (331) | [1] |
OCI before reclassification | (11) | |
Amortization of pension actuarial (gain)/loss, net of tax | 4 | |
Other comprehensive income | (7) | |
Ending Balance | (338) | |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (64) | |
OCI before reclassification | (10) | |
Amortization of pension actuarial (gain)/loss, net of tax | ||
Other comprehensive income | (10) | |
Ending Balance | (74) | |
Cash Flow Hedges Parent[Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (1) | |
Amortization of pension actuarial (gain)/loss, net of tax | ||
Ending Balance | (1) | |
Items Related to Pension and Postretirement Benefits [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (266) | |
OCI before reclassification | (1) | |
Amortization of pension actuarial (gain)/loss, net of tax | 4 | |
Other comprehensive income | 3 | |
Ending Balance | $ (263) | |
[1] | The balance sheet at January 30, 2021 has been derived from the previously reported audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in Foot Locker, Inc.’s Annual Report on Form 10-K for the year ended January 30, 2021. |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss (Reclassifications from Accumulated Other Comprehensive Loss) (Details) $ in Millions | 6 Months Ended |
Jul. 31, 2021USD ($) | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |
Income tax benefit | $ (1) |
Total, net of tax | 4 |
Pension Benefits [Member] | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |
Pension benefits | $ 5 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Jul. 31, 2021 | Aug. 01, 2020 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets measured at fair value on recurring basis | $ 92 | |
Level 1 [Member] | Minority Investment in Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets measured at fair value on recurring basis | 92 | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets measured at fair value on recurring basis | 8 | $ 8 |
Liabilities measured at fair value on recurring basis | 2 | 4 |
Level 2 [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 |
Forward Foreign Exchange Contracts [Member] | Level 2 [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 | 2 | 4 |
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 | $ 1 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Value and Estimated Fair Value of Long-Term Debt) (Details) - USD ($) $ in Millions | Jul. 31, 2021 | Aug. 01, 2020 |
Fair Value Measurements [Abstract] | ||
Long-term debt, Carrying value | $ 99 | $ 121 |
Long-term debt, Fair value | $ 102 | $ 129 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 30 Months Ended | |||
Jul. 31, 2021 | May 01, 2021 | Jul. 31, 2021 | Jul. 31, 2021 | Jan. 30, 2021 | Aug. 01, 2020 | |
Fair Value Measurements [Abstract] | ||||||
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 0 | 0 | 0 | |
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 0 | 0 | 0 | |
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | 0 | 0 | $ 0 | 0 | |
Non-cash gain | 290 | 314 | ||||
Equity method investment fair value | 612 | 612 | 612 | $ 137 | ||
Impairment of investments | $ 2 | $ 2 | $ 13 | |||
Increase (decrease) in minority interests | $ 68 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 6 Months Ended | |
Jul. 31, 2021 | Aug. 01, 2020 | |
Earnings Per Share [Abstract] | ||
Contingently issuable shares excluded from diluted earnings per share | 0.6 | 0.5 |
Earnings Per Share (Computation
Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income/(loss) | $ 430 | $ 45 | $ 632 | $ (65) |
Weighted-average common shares outstanding | 103.8 | 104.5 | 103.7 | 104.4 |
Dilutive effect of potential common shares | 1.4 | 0.6 | 1.4 | |
Weighted-average common shares outstanding assuming dilution | 105.2 | 105.1 | 105.1 | 104.4 |
Earnings per share - basic | $ 4.14 | $ 0.43 | $ 6.10 | $ (0.62) |
Earnings per share - diluted | $ 4.09 | $ 0.43 | $ 6.02 | $ (0.62) |
Stock Option Plans [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive share-based awards excluded from diluted calculation | 1.5 | 2.7 | 1.7 | 2.7 |
Pension (Net Benefit Expense (I
Pension (Net Benefit Expense (Income)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Retirement Plans and Other Benefits [Abstract] | ||||
Service cost | $ 4 | $ 3 | $ 8 | $ 7 |
Interest cost | 5 | 6 | 9 | 11 |
Expected return on plan assets | (8) | (10) | (17) | (19) |
Amortization of net loss (gain) | 2 | 3 | 5 | 6 |
Net benefit expense (income) | $ 3 | $ 2 | $ 5 | $ 5 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) shares in Thousands, $ in Millions | 6 Months Ended | |
Jul. 31, 2021 | Aug. 01, 2020 | |
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 | 5,491 | |
Unrecognized compensation cost | $ 45 | |
Fair value of options vested | 4 | $ 5 |
Tax benefit realized from options exercised | 2 | |
Proceeds from exercise of stock options | 10 | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of awards | 22 | $ 4 |
Dividends | $ 0 | |
Restricted Stock Units [Member] | Employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Restricted Stock Units [Member] | Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 1 year | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 1 year | |
Nonvested Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 4 | |
Unrecognized compensation cost related to nonvested stock options, weighted-average period expected to be recognized | 1 year 7 months 6 days | |
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 |
Share-Based Compensation (Total
Share-Based Compensation (Total Compensation Expense Included in SG&A and the Related Tax Benefits Recognized) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | |
Share-Based Compensation [Abstract] | ||||
Options and shares purchased under the employee stock purchase plan | $ 2 | $ 2 | $ 4 | $ 4 |
Restricted stock units and performance stock units | 6 | 2 | 12 | 3 |
Total share-based compensation expense | 8 | 4 | 16 | 7 |
Tax benefit recognized | $ 1 | $ 1 | $ 2 | $ 1 |
Share-Based Compensation (Assum
Share-Based Compensation (Assumptions Used to Compute Share-Based Compensation Expense) (Details) - $ / shares | 6 Months Ended | |
Jul. 31, 2021 | Aug. 01, 2020 | |
Stock Option Plans [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average risk free rate of interest | 0.90% | 0.60% |
Expected volatility | 47.00% | 42.00% |
Weighted-average expected award life (in years) | 5 years 6 months | 5 years 6 months |
Dividend yield | 1.50% | 4.90% |
Weighted-average fair value | $ 20.22 | $ 5.03 |
2013 ESPP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average risk free rate of interest | 0.20% | 2.00% |
Expected volatility | 48.00% | 48.00% |
Weighted-average expected award life (in years) | 1 year | 1 year |
Dividend yield | 5.00% | 4.00% |
Weighted-average fair value | $ 7.84 | $ 15.03 |
Share-Based Compensation (Optio
Share-Based Compensation (Options Granted Under Stock Option Plans) (Details) shares in Thousands | 6 Months Ended |
Jul. 31, 2021$ / sharesshares | |
Number of Shares | |
Options outstanding at beginning of year | 3,540 |
Granted | 183 |
Exercised | (302) |
Expired or cancelled | (122) |
Options outstanding at end of period | 3,299 |
Options exercisable at end of period | 2,497 |
Options available for future grant at end of period | 5,491 |
Weighted-Average Exercise Price | |
Options outstanding at beginning of year | $ / shares | $ 47.17 |
Granted | $ / shares | 53.82 |
Exercised | $ / shares | 33.31 |
Expired or cancelled | $ / shares | 52.43 |
Options outstanding at end of period | $ / shares | 48.61 |
Options exercisable at end of period | $ / shares | $ 53.74 |
Options outstanding, weighted-average remaining contractual life | 5 years 6 months |
Options exercisable at end of period, Weighted-average remaining contractual life | 4 years 4 months 24 days |
Share-Based Compensation (Tot_2
Share-Based Compensation (Total Intrinsic Value of Options Exercised) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jul. 31, 2021 | Jul. 31, 2021 | |
Intrinsic value of stock options | ||
Exercised | $ 5 | $ 8 |
Share-Based Compensation (Aggre
Share-Based Compensation (Aggregate Intrinsic Value for Stock Options Outstanding and Exercisable) (Details) - USD ($) $ in Millions | Jul. 31, 2021 | Aug. 01, 2020 |
Share-Based Compensation [Abstract] | ||
Outstanding | $ 40 | $ 10 |
Outstanding and exercisable | $ 20 | $ 1 |
Share-Based Compensation (Infor
Share-Based Compensation (Information about Stock Options Outstanding and Exercisable) (Details) - $ / shares shares in Thousands | 6 Months Ended | |
Jul. 31, 2021 | Jan. 30, 2021 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Number of Shares | 3,299 | 3,540 |
Options outstanding, weighted-average remaining contractual life | 5 years 6 months | |
Options Outstanding, Weighted-Average Exercise Price | $ 48.61 | $ 47.17 |
Options Exercisable, Number of Shares | 2,497 | |
Options Exercisable, Weighted-Average Exercise Price | $ 53.74 | |
$21.60 - $34.24 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Lower Limit | 21.60 | |
Range of Exercise Prices, Upper Limit | $ 34.24 | |
Options Outstanding, Number of Shares | 981 | |
Options outstanding, weighted-average remaining contractual life | 6 years 10 months 24 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 23.49 | |
Options Exercisable, Number of Shares | 444 | |
Options Exercisable, Weighted-Average Exercise Price | $ 25.76 | |
$34.75 - $52.13 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Lower Limit | 34.75 | |
Range of Exercise Prices, Upper Limit | $ 52.13 | |
Options Outstanding, Number of Shares | 504 | |
Options outstanding, weighted-average remaining contractual life | 4 years 6 months | |
Options Outstanding, Weighted-Average Exercise Price | $ 44.41 | |
Options Exercisable, Number of Shares | 496 | |
Options Exercisable, Weighted-Average Exercise Price | $ 44.42 | |
$52.82 - $79.23 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Lower Limit | 52.82 | |
Range of Exercise Prices, Upper Limit | $ 79.23 | |
Options Outstanding, Number of Shares | 1,814 | |
Options outstanding, weighted-average remaining contractual life | 4 years 10 months 24 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 63.36 | |
Options Exercisable, Number of Shares | 1,557 | |
Options Exercisable, Weighted-Average Exercise Price | $ 64.69 |
Share-Based Compensation (Chang
Share-Based Compensation (Changes in Nonvested Options) (Details) - Restricted Stock Units [Member] $ / shares in Units, shares in Thousands, $ in Millions | 6 Months Ended | |
Jul. 31, 2021USD ($)$ / sharesshares | ||
Number of Shares | ||
Nonvested, Beginning Balance | 1,348 | |
Granted | 424 | |
Vested | (503) | |
Performance adjustment | 240 | |
Expired or cancelled | (39) | [1] |
Nonvested, Ending Balance | 1,470 | |
Aggregate value | $ | $ 64 | |
Wtg. Avg. remaining contractual life (in years) | 2 years | |
Weighted-Average Grant Date Fair Value per Share | ||
Nonvested, Beginning Balance | $ / shares | $ 38.48 | |
Granted | $ / shares | 54.20 | |
Vested | $ / shares | 43.81 | |
Cancelled | $ / shares | 34.47 | [1] |
Nonvested, Ending Balance | $ / shares | $ 43.54 | |
[1] | Weighted-Average |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Aug. 02, 2021USD ($) | Aug. 01, 2021USD ($)store | Jul. 31, 2021 |
Subsequent Event [Member] | WSS [Member] | |||
Subsequent Event [Line Items] | |||
Number of stores | store | 93 | ||
Purchase price | $ 750 | ||
Subsequent Event [Member] | atmos [Member] | |||
Subsequent Event [Line Items] | |||
Purchase price | $ 360 | ||
Business combination, contingent consideration | $ 111 | ||
Maximum [Member] | Revolving Credit Facility [Member] | Federal Funds Rate [Member] | |||
Subsequent Event [Line Items] | |||
Debt, basis spread on variable rate | 0.75% | ||
Minimum [Member] | Revolving Credit Facility [Member] | Federal Funds Rate [Member] | |||
Subsequent Event [Line Items] | |||
Debt, basis spread on variable rate | 0.25% |