Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Apr. 30, 2022 | May 27, 2022 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2022 | |
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 | 94,510,269 | |
Entity Central Index Key | 0000850209 | |
Current Fiscal Year End Date | --01-29 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
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 | Apr. 30, 2022 | Jan. 29, 2022 | [1] | May 01, 2021 |
Current assets: | ||||
Cash and cash equivalents | $ 551 | $ 804 | $ 1,963 | |
Merchandise inventories | 1,401 | 1,266 | 1,021 | |
Other current assets | 281 | 293 | 283 | |
Assets, current, total | 2,233 | 2,363 | 3,267 | |
Property and equipment, net | 899 | 917 | 769 | |
Operating lease right-of-use assets | 2,566 | 2,616 | 2,700 | |
Deferred taxes | 79 | 86 | 101 | |
Goodwill | 783 | 797 | 159 | |
Other intangible assets, net | 441 | 454 | 16 | |
Minority investments | 759 | 781 | 342 | |
Other assets | 118 | 121 | 88 | |
Total assets | 7,878 | 8,135 | 7,442 | |
Current liabilities: | ||||
Accounts payable | 565 | 596 | 658 | |
Accrued and other liabilities | 428 | 561 | 572 | |
Current portion of obligations under finance leases | 6 | 6 | 101 | |
Operating lease liabilities classified as current | 557 | 572 | 582 | |
Liabilities, current, total | 1,556 | 1,735 | 1,913 | |
Long-term debt and obligations under finance leases | 450 | 451 | 8 | |
Long-term lease obligations | 2,323 | 2,363 | 2,470 | |
Other liabilities | 334 | 343 | 121 | |
Total liabilities | 4,663 | 4,892 | 4,512 | |
Shareholders' equity: | ||||
Common stock and paid-in capital: 99,233,112; 104,286,151; and 99,070,796 shares issued, respectively | 779 | 770 | 791 | |
Retained earnings | 2,995 | 2,900 | 2,507 | |
Accumulated other comprehensive loss | (384) | (343) | (326) | |
Less: Treasury stock at cost: 4,731,931; 886,661; and 2,050,000 shares, respectively | (178) | (88) | (47) | |
Noncontrolling interest | 3 | 4 | 5 | |
Total shareholders' equity | 3,215 | 3,243 | 2,930 | |
Liabilities and equity, total | $ 7,878 | $ 8,135 | $ 7,442 | |
[1] | The balance sheet at January 29, 2022 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 29, 2022. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 |
CONSOLIDATED BALANCE SHEETS [Abstract] | |||
Common Stock, Shares Outstanding, Issued, Total | 99,233,112 | 99,070,796 | 104,286,151 |
Treasury Stock, Shares | 4,731,931 | 2,050,000 | 886,661 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||
Sales | $ 2,175 | $ 2,153 |
Cost of sales | 1,435 | 1,404 |
Selling, general and administrative expenses | 463 | 418 |
Depreciation and amortization | 54 | 45 |
Impairment and other charges | 6 | 4 |
Income from operations | 217 | 282 |
Interest (expense) income, net | (5) | (2) |
Other (expense) / income, net | (22) | 4 |
Income before income taxes | 190 | 284 |
Income tax expense | 58 | 82 |
Net Income | 132 | 202 |
Net loss attributable to noncontrolling interests | 1 | |
Net income attributable to Foot Locker, Inc. | $ 133 | $ 202 |
Basic earnings per share | $ 1.38 | $ 1.95 |
Weighted-average shares outstanding | 96.1 | 103.6 |
Diluted earnings per share | $ 1.37 | $ 1.93 |
Weighted-average shares outstanding, assuming dilution | 97.2 | 105 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Net income attributable to Foot Locker, Inc. | $ 133 | $ 202 |
Foreign currency translation adjustment: | ||
Translation adjustment arising during the period, net of income tax (benefit)/expense of $(1), and $1, respectively | (44) | 4 |
Cash flow hedges: | ||
Change in fair value of derivatives, net of income tax expense of $-, and $-, respectively | 1 | |
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 and $1, respectively | 2 | 1 |
Comprehensive income (loss) | $ 92 | $ 207 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Net income tax benefit on translation adjustment | $ (1) | $ 1 |
Amortization of net actuarial gain/loss and prior service cost included in net periodic benefit costs, income tax expense | $ 1 | $ 1 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Additional Paid-In Capital & Common Stock | Treasury Stock [Member] | Retained Earnings | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interest [Member] | Total | |
Cumulative effect of the adoption new ASUs | $ 779 | $ (3) | $ 2,326 | $ (331) | $ 5 | $ 2,776 | |
Beginning Balance at Jan. 30, 2021 | $ 779 | $ (3) | 2,326 | (331) | 5 | 2,776 | |
Beginning Balance (in shares) at Jan. 30, 2021 | 103,693,000 | ||||||
Beginning Balance (in treasury shares) at Jan. 30, 2021 | (74,000) | ||||||
Restricted stock issued (in shares) | 468,000 | ||||||
Issued under director and stock plans | $ 4 | 4 | |||||
Issued under director and stock plans (in shares) | 125,000 | ||||||
Share-based compensation expense | $ 8 | 8 | |||||
Shares of common stock used to satisfy tax withholding obligations | $ (10) | (10) | |||||
Shares of common stock used to satisfy tax withholding obligations (in shares) | (192,000) | ||||||
Share repurchases | $ (34) | (34) | |||||
Share repurchases (in shares) | (621,000) | ||||||
Net income | 202 | 202 | |||||
Cash dividends declared on common stock | (21) | (21) | |||||
Translation adjustment, net of tax | 4 | 4 | |||||
Pension and postretirement adjustments, net of tax | 1 | 1 | |||||
Ending Balance at May. 01, 2021 | $ 791 | $ (47) | 2,507 | (326) | 5 | $ 2,930 | |
Ending Balance (in shares) at May. 01, 2021 | 104,286,000 | 104,286,151 | |||||
Ending Balance (in treasury shares) at May. 01, 2021 | (887,000) | (886,661) | |||||
Cumulative effect of the adoption new ASUs | $ 791 | $ (47) | 2,507 | (326) | 5 | $ 2,930 | |
Cumulative effect of the adoption new ASUs | 770 | (88) | 2,900 | (343) | 4 | 3,243 | [1] |
Beginning Balance at Jan. 29, 2022 | $ 770 | $ (88) | 2,900 | (343) | 4 | $ 3,243 | [1] |
Beginning Balance (in shares) at Jan. 29, 2022 | 99,071,000 | 99,070,796 | |||||
Beginning Balance (in treasury shares) at Jan. 29, 2022 | (2,050,000) | (2,050,000) | |||||
Restricted stock issued (in shares) | 88,000 | ||||||
Issued under director and stock plans | $ 2 | $ 2 | |||||
Issued under director and stock plans (in shares) | 74,000 | ||||||
Share-based compensation expense | $ 7 | 7 | |||||
Shares of common stock used to satisfy tax withholding obligations | $ (1) | (1) | |||||
Shares of common stock used to satisfy tax withholding obligations (in shares) | (32,000) | ||||||
Share repurchases | $ (89) | (89) | |||||
Share repurchases (in shares) | (2,650,000) | ||||||
Net income | 133 | (1) | 132 | ||||
Cash dividends declared on common stock | (38) | (38) | |||||
Translation adjustment, net of tax | (44) | (44) | |||||
Change in cash flow hedges, net of tax | 1 | 1 | |||||
Pension and postretirement adjustments, net of tax | 2 | 2 | |||||
Ending Balance at Apr. 30, 2022 | $ 779 | $ (178) | 2,995 | (384) | 3 | $ 3,215 | |
Ending Balance (in shares) at Apr. 30, 2022 | 99,233,000 | 99,233,112 | |||||
Ending Balance (in treasury shares) at Apr. 30, 2022 | (4,732,000) | (4,731,931) | |||||
Cumulative effect of the adoption new ASUs | $ 779 | $ (178) | $ 2,995 | $ (384) | $ 3 | $ 3,215 | |
[1] | The balance sheet at January 29, 2022 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 29, 2022. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared on common stock, per share | $ 0.40 | $ 0.20 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
From operating activities: | ||
Net income | $ 132 | $ 202 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Non-cash impairment and other charges | 3 | 2 |
Fair value adjustments to minority investments | 25 | |
Depreciation and amortization | 54 | 45 |
Deferred income taxes | 3 | 7 |
Share-based compensation expense | 7 | 8 |
Change in assets and liabilities: | ||
Merchandise inventories | (150) | (94) |
Accounts payable | (25) | 255 |
Accrued and other liabilities | (80) | (25) |
Insurance receivable for inventory loss | 8 | |
Other, net | 10 | (10) |
Net cash (used in) provided by operating activities | (21) | 398 |
From investing activities: | ||
Capital expenditures | (95) | (51) |
Purchase of business, net of cash acquired | (7) | |
Minority investments | (3) | (8) |
Proceeds from sale of property | 3 | |
Insurance proceeds related to loss on property and equipment | 2 | |
Net cash used in investing activities | (105) | (54) |
From financing activities: | ||
Purchase of treasury shares | (89) | (34) |
Dividends paid on common stock | (38) | (21) |
Payment of obligations under finance leases | (2) | |
Proceeds from exercise of stock options | 2 | 4 |
Shares of common stock repurchased to satisfy tax withholding obligations | (1) | (10) |
Net cash used in financing activities | (128) | (61) |
Effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash | (1) | |
Net change in cash, cash equivalents, and restricted cash | (255) | 283 |
Cash, cash equivalents, and restricted cash at beginning of year | 850 | 1,718 |
Cash, cash equivalents, and restricted cash at end of period | 595 | 2,001 |
Cash paid during the year: | ||
Interest | 8 | 1 |
Income taxes | 18 | 32 |
Cash paid for amounts included in measurement of operating lease liabilities: | 174 | 179 |
Non-cash investing and financing activities: | ||
Right-of-use assets obtained in exchange for lease obligations: | $ 138 | $ 114 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 30, 2022 | |
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 April 30, 2022 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 2022. Specifically, the ongoing COVID-19 pandemic and its continuing effect on our operations and traffic to our stores, as well as port delays, 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 2021 Form 10-K. 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. |
Acquisition
Acquisition | 3 Months Ended |
Apr. 30, 2022 | |
Business Combinations [Abstract] | |
Acquisition | 2. Acquisitions In 2021, we acquired WSS and atmos, two businesses that will allow us to further differentiate our product offerings, as well as our customer base, and diversify our retail store and omnichannel portfolio. WSS During the thirteen weeks ended April 30, 2022, we paid an additional $4 million upon the finalization of the value of net assets acquired, with a corresponding increase to goodwill as compared with the amounts presented in the most recent annual report. The aggregate purchase price for the acquisition has increased to $811 million ($741 million, net of cash acquired). 2. Acquisitions (continued) The following table represents the final allocation of the purchase price for WSS. ($ in millions) Assets acquired: Cash and cash equivalents $ 70 Merchandise inventories 82 Other current assets 10 Property and equipment, net 133 Operating lease right-of-use assets 143 Tradenames 296 Customer relationships 13 Other assets 4 Liabilities assumed: Accounts payable $ (58) Current portion of obligations under finance leases (3) Current portion of lease obligations (19) Long-term portion of obligations under finance leases (50) Long-term lease obligations (127) Deferred taxes (84) Other liabilities (4) Goodwill 405 Total purchase price $ 811 atmos During the thirteen weeks ended April 30, 2022, we paid an additional $3 million in connection with the finalization of certain post-closing conditions. The aggregate purchase price for the acquisition has increased to $363 million, subject to adjustment for the finalization of the value of net assets acquired and other post-closing matters. The acquisition was funded with available cash. The preliminary purchase price includes contingent consideration initially measured at $35 million, which can reach up to $111 million based on achieving certain revenue growth and EBITDA performance targets. The fair value of the contingent consideration has not changed from the initial measurement. The preliminary purchase price does not yet reflect the finalization of the net working capital provisions and other post-closing adjustments. At closing, we placed $30 million in escrow, and an additional $11 million will be payable if certain post-closing conditions are satisfied. We made a payment of $5 million during the second quarter of 2022 and expect to finalize the other amounts by the end of this fiscal year. The following table represents the preliminary allocation of the purchase price for atmos and includes fair value adjustments to certain assets and liabilities since our most recent annual report. Goodwill remained unchanged at $242 million from the amount reported at year end, however changes included the additional purchase price, revised downward valuation of the tradenames and the addition of the customer list intangible. The adjustments did not have a significant effect on the consolidated results of operations. We determined that the atmos tradenames will have an indefinite life and will not be amortized. We are assessing the tax deductibility of the goodwill related to the acquisition. 2. Acquisitions (continued) The following table represents the preliminary allocation of the purchase price for atmos. ($ in millions) Assets acquired: Cash and cash equivalents $ 6 Merchandise inventories 22 Other current assets 12 Property and equipment, net 7 Operating lease right-of-use assets 44 Tradenames 130 Customer relationships 9 Other assets 6 Liabilities assumed: Accounts payable $ (10) Current portion of lease obligations (10) Other current liabilities (8) Long-term lease obligations (35) Deferred taxes (44) Other liabilities (8) Goodwill (1) 242 Total purchase price (2) $ 363 (1) Goodwill represented on this table is at the exchange rate in effect as of the date of acquisition. (2) Total purchase price consists of $328 million in cash and $35 million of contingent consideration . |
Revenue
Revenue | 3 Months Ended |
Apr. 30, 2022 | |
Revenue [Abstract] | |
Revenue | 3. Revenue The table below presents sales disaggregated based upon sales channel. Sales are attributable to the channel in which the sales transaction is initiated. Thirteen weeks ended April 30, May 1, ($ in millions) 2022 2021 Sales by Channel Stores $ 1,776 $ 1,620 Direct-to-customers 399 533 Total sales $ 2,175 $ 2,153 Sales disaggregated based upon geographic area are presented in the table below. Sales are attributable to the geographic area in which the sales transaction is fulfilled. Thirteen weeks ended April 30, May 1, ($ in millions) 2022 2021 Sales by Geography United States $ 1,632 $ 1,713 International 543 440 Total sales $ 2,175 $ 2,153 3. Revenue (continued) 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. April 30, May 1, ($ in millions) 2022 2021 Gift card liability at beginning of year $ 46 $ 41 Redemptions (65) (56) Breakage recognized in sales (4) (4) Activations 60 62 Gift card liability $ 37 $ 43 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 | 3 Months Ended |
Apr. 30, 2022 | |
Segment Information [Abstract] | |
Segment Information | 4. 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 availability. 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 April 30, May 1, ($ in millions) 2022 2021 Sales $ 2,175 $ 2,153 Operating Results Division profit 260 315 Less: Impairment and other charges (1) 6 4 Less: Corporate expense (2) 37 29 Income from operations 217 282 Interest expense, net (5) (2) Other (expense) / income, net (3) (22) 4 Income before income taxes $ 190 $ 284 (1) We recorded pre-tax charges of $6 million and $4 million during the first quarter of 2022 and 2021, respectively, as detailed in Note 5, 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. (3) Other (expense) income, net for the thirteen weeks ended April 30, 2022 primarily consisted of a $25 million loss on the change in fair value of our investment in Retailors, Ltd., a publicly-listed entity, which was partially offset by other income. |
Impairment and Other Charges
Impairment and Other Charges | 3 Months Ended |
Apr. 30, 2022 | |
Impairment and Other Charges [Abstract] | |
Impairment and Other Charges | 5. Impairment and Other Charges Thirteen weeks ended April 30, May 1, ($ in millions) 2022 2021 Impairment of long-lived assets and right-of-use assets $ 3 $ — Acquisition and integration costs 2 — Other 1 — Impairment of investments — 2 Reorganization costs — 2 Total impairment and other charges $ 6 $ 4 During the first quarter of 2022, we recorded impairment charges of $3 million related to long-lived assets and right-of-use assets as well as accelerated tenancy charges, $2 million of acquisition and integration costs related to WSS and atmos, and $1 million of other expenses. In 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 $2 million. |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 3 Months Ended |
Apr. 30, 2022 | |
Restricted Cash [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | 6. Cash, Cash Equivalents, and Restricted Cash The table below provides a reconciliation of cash and cash equivalents, as reported on our Condensed Consolidated Balance Sheets, to cash, cash equivalents, and restricted cash, as reported on our Condensed Consolidated Statements of Cash Flows. April 30, May 1, ($ in millions) 2022 2021 Cash and cash equivalents $ 551 $ 1,963 Restricted cash included in other current assets 8 8 Restricted cash included in other non-current assets 36 30 Cash, cash equivalents, and restricted cash $ 595 $ 2,001 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 | 3 Months Ended |
Apr. 30, 2022 | |
Goodwill and Other Intangible Assets, Net [Abstract] | |
Goodwill | 7. Goodwill See footnote 2, Acquisitions 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 | 3 Months Ended |
Apr. 30, 2022 | |
Goodwill and Other Intangible Assets, Net [Abstract] | |
Other Intangible Assets, Net | 8. Other Intangible Assets, net The components of finite-lived intangible assets and intangible assets not subject to amortization are as follows: April 30, 2022 May 1, 2021 Gross Accum. Net Gross Accum. Net ($ in millions) value amort. value value amort. value Amortized intangible assets: (1) Lease acquisition costs $ 101 $ (98) $ 3 $ 119 $ (115) $ 4 Trademarks/tradenames (2) 18 (18) — 20 (17) 3 Customer lists 20 (4) 16 — — — $ 139 $ (120) $ 19 $ 139 $ (132) $ 7 Indefinite life intangible assets: (1) Trademarks/tradenames $ 422 $ 9 Other intangible assets, net $ 441 $ 16 (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. (2) During the fourth quarter of 2021, we recorded a non-cash impairment charge related to the Footaction tradename. In connection with the acquisitions of WSS and atmos, we recognized indefinite life intangible assets of $296 million for WSS related tradenames and $130 million for atmos related tradenames. Additionally, we recognized customer list intangible assets of $13 million for WSS and $9 million for atmos, both of which will be amortized over 3 years. The intangibles related to atmos were originally recorded at the exchange rate in effect as of the date of acquisition and are presented in the above table at current period exchange rates. Amortizing intangible assets primarily represent the WSS and atmos customer lists, lease acquisition costs, which are amounts that are required to secure prime lease locations and other lease rights, primarily in Europe. Amortization expense recorded is as follows: Thirteen weeks ended April 30, May 1, ($ in millions) 2022 2021 Amortization expense $ 3 $ 1 Estimated future amortization expense for finite-life intangible assets is as follows: ($ in millions) Remainder of 2022 $ 6 2023 7 2024 5 2025 1 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Apr. 30, 2022 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | 9. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss (“AOCL”), net of tax, is comprised of the following: April 30, May 1, January 29, ($ in millions) 2022 2021 2022 Foreign currency translation adjustments $ (151) $ (60) $ (107) Cash flow hedges 1 (1) — Unrecognized pension cost and postretirement benefit (234) (265) (236) $ (384) $ (326) $ (343) The changes in AOCL for the thirteen weeks ended April 30, 2022 were as follows: Foreign Items Related Currency to Pension and Translation Cash Flow Postretirement ($ in millions) Adjustments Hedges Benefits Total Balance as of January 29, 2022 $ (107) — $ (236) $ (343) OCI before reclassification (44) 1 1 (42) Amortization of pension actuarial loss, net of tax — — 1 1 Pension remeasurement, net of tax — — — — Other comprehensive income (44) 1 2 (41) Balance as of April 30, 2022 $ (151) $ 1 $ (234) $ (384) Reclassifications from AOCL for the thirteen weeks ended April 30, 2022 were as follows: ($ in millions) Amortization of actuarial loss: Pension benefits $ 2 Income tax benefit (1) Total, net of tax $ 1 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 30, 2022 | |
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. 10. Fair Value Measurements (continued) In 2021, we invested $68 million to take a common stock minority stake in a public entity, Retailors, Ltd, which is traded on the Tel Aviv stock exchange. This investment is classified as a Level 1 instrument since the fair value is readily available in an active market. The fair value of the auction rate security, classified as available-for-sale, is determined by using quoted prices for similar instruments in active markets and accordingly is classified as a Level 2 instrument. The fair value of the contingent consideration liability associated with the atmos acquisition is estimated using an option pricing model simulation that determines an average projected payment value across numerous iterations. Our derivative financial instruments are valued using market-based inputs to valuation models. These valuation models require a variety of inputs, including contractual terms, market prices, yield curves, and measures of volatility and, therefore, are classified as Level 2 instruments. Assets and Liabilities Measured at Fair Value on a Recurring Basis ($ in millions) As of April 30, 2022 As of May 1, 2021 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Minority investment in common stock $ 120 $ — $ — $ — $ — $ — Available-for-sale security — 6 — — 7 — Foreign exchange forward contracts — 2 — — 2 — Total assets $ 120 $ 8 $ — $ — $ 9 $ — Liabilities Contingent consideration — — 35 — — — Foreign exchange forward contracts — — — — 4 — Total liabilities $ — $ — $ 35 $ — $ 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 $579 million and $323 million as of April 30, 2022 and May 1, 2021, respectively. 10. Fair Value Measurements (continued) 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 balance as of April 30, 2022 includes the $400 million 4% Notes. The carrying value and estimated fair value of long-term debt were as follows: ($ in millions) April 30, 2022 May 1, 2021 Carrying value (1) $ 394 $ 99 Fair value $ 332 $ 104 (1) The carrying value of debt as of April 30, 2022 reflects $6 million of issuer’s discount and costs related to the 4% Notes. The carrying values of cash and cash equivalents, and other current receivables and payables approximate their fair value. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Apr. 30, 2022 | |
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 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 April 30, May 1, (in millions, except per share data) 2022 2021 Net income attributable to Foot Locker, Inc. $ 133 $ 202 Weighted-average common shares outstanding 96.1 103.6 Dilutive effect of potential common shares 1.1 1.4 Weighted-average common shares outstanding assuming dilution 97.2 105.0 Earnings per share - basic $ 1.38 $ 1.95 Earnings per share - diluted $ 1.37 $ 1.93 Anti-dilutive share-based awards excluded from diluted calculation 2.5 1.7 Performance stock units related to our long-term incentive programs of 0.9 million and 0.4 million have been excluded from diluted weighted-average shares for the periods ended April 30, 2022 and May 1, 2021, 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 | 3 Months Ended |
Apr. 30, 2022 | |
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 April 30, May 1, ($ in millions) 2022 2021 Service cost $ 4 $ 4 Interest cost 5 4 Expected return on plan assets (8) (9) Amortization of net loss 2 3 Net benefit expense $ 3 $ 2 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Apr. 30, 2022 | |
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 April 30, May 1, ($ in millions) 2022 2021 Options and employee stock purchase plan $ 1 $ 2 Restricted stock units and performance stock units 6 6 Total share-based compensation expense $ 7 $ 8 Tax benefit recognized $ 1 $ 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 thirteen weeks ended April 30, 2022 and May 1, 2021. Stock Option Plans Stock Purchase Plan April 30, May 1, April 30, May 1, 2022 2021 2022 2021 Weighted-average risk free rate of interest 2.3 % 0.9 % 0.1 % 0.2 % Expected volatility 50 % 47 % 40 % 48 % Weighted-average expected award life (in years) 5.5 5.5 1.0 1.0 Dividend yield 3.9 % 1.5 % 1.8 % 5.6 % Weighted-average fair value $ 10.42 $ 20.22 $ 29.46 $ 6.35 13. Share-Based Compensation (continued) The information in the table below provides activity under our stock option plans for the thirteen weeks ended April 30, 2022. 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 3,211 $ 48.84 Granted 506 30.97 Exercised (74) 28.75 Expired or cancelled (115) 54.60 Options outstanding at April 30, 2022 3,528 5.5 $ 46.51 Options exercisable at April 30, 2022 2,665 4.3 $ 51.41 Options available for future grant at April 30, 2022 2,296 The total fair value of options vested during thirteen weeks ended April 30, 2022 and May 1, 2021 was $4 million for both periods. The cash received and related tax benefits realized from option exercises during the thirteen weeks ended April 30, 2022 were $2 million and not significant, respectively. The total intrinsic value of options exercised (the difference between the market price of our common stock on the exercise date and the price paid by the optionee to exercise the option) is presented below: Thirteen weeks ended April 30, May 1, ($ in millions) 2022 2021 Exercised $ — $ 3 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: Thirteen weeks ended April 30, May 1, ($ in millions) 2022 2021 Outstanding $ 6 $ 48 Outstanding and exercisable $ 4 $ 27 As of April 30, 2022, there was $7 million of total unrecognized compensation cost related to nonvested stock options which is expected to be recognized over a remaining weighted-average period of 1.8 years. 13. Share-Based Compensation (continued) The table below summarizes information about stock options outstanding and exercisable at April 30, 2022. 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 - $36.51 1,372 7.7 $ 26.18 624 $ 24.04 $44.78 - $48.98 453 3.6 45.02 452 45.02 $53.61 - $58.94 510 6.3 56.66 396 57.48 $62.02 - $72.83 1,193 3.3 66.13 1,193 66.13 3,528 5.5 $ 46.51 2,665 $ 51.41 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 officers and certain key employees in connection with our long-term incentive program. 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 thirteen weeks ended April 30, 2022 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 1,391 $ 43.95 Granted 979 30.17 Vested (88) 58.39 Performance adjustment (1) (22) Forfeited (21) 35.15 Nonvested at April 30, 2022 2,239 2.0 $ 36.85 Aggregate value ($ in millions) $ 83 (1) This represents adjustments made to PSUs reflecting changes in estimates based upon our current performance against predefined financial targets. 13. Share-Based Compensation (continued) The total value of RSU and PSU awards that vested during the thirteen weeks ended April 30, 2022 and May 1, 2021 was $5 million and $21 million, respectively. As of April 30, 2022, there was $54 million of total unrecognized compensation cost related to nonvested awards. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Apr. 30, 2022 | |
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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 3 Months Ended |
Apr. 30, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | 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 April 30, 2022 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 2022. Specifically, the ongoing COVID-19 pandemic and its continuing effect on our operations and traffic to our stores, as well as port delays, 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 2021 Form 10-K. There were no significant changes to the policies disclosed in Note 1, Summary of Significant Accounting Policies |
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. |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
WSS [Member] | |
Business Combination Segment Allocation [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table represents the final allocation of the purchase price for WSS. ($ in millions) Assets acquired: Cash and cash equivalents $ 70 Merchandise inventories 82 Other current assets 10 Property and equipment, net 133 Operating lease right-of-use assets 143 Tradenames 296 Customer relationships 13 Other assets 4 Liabilities assumed: Accounts payable $ (58) Current portion of obligations under finance leases (3) Current portion of lease obligations (19) Long-term portion of obligations under finance leases (50) Long-term lease obligations (127) Deferred taxes (84) Other liabilities (4) Goodwill 405 Total purchase price $ 811 |
atmos [Member] | |
Business Combination Segment Allocation [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table represents the preliminary allocation of the purchase price for atmos. ($ in millions) Assets acquired: Cash and cash equivalents $ 6 Merchandise inventories 22 Other current assets 12 Property and equipment, net 7 Operating lease right-of-use assets 44 Tradenames 130 Customer relationships 9 Other assets 6 Liabilities assumed: Accounts payable $ (10) Current portion of lease obligations (10) Other current liabilities (8) Long-term lease obligations (35) Deferred taxes (44) Other liabilities (8) Goodwill (1) 242 Total purchase price (2) $ 363 (1) Goodwill represented on this table is at the exchange rate in effect as of the date of acquisition. (2) Total purchase price consists of $328 million in cash and $35 million of contingent consideration . |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Revenue [Abstract] | |
Disaggregation of Revenue | The table below presents sales disaggregated based upon sales channel. Sales are attributable to the channel in which the sales transaction is initiated. Thirteen weeks ended April 30, May 1, ($ in millions) 2022 2021 Sales by Channel Stores $ 1,776 $ 1,620 Direct-to-customers 399 533 Total sales $ 2,175 $ 2,153 |
Revenue from External Customers by Geographic Areas | Sales disaggregated based upon geographic area are presented in the table below. Sales are attributable to the geographic area in which the sales transaction is fulfilled. Thirteen weeks ended April 30, May 1, ($ in millions) 2022 2021 Sales by Geography United States $ 1,632 $ 1,713 International 543 440 Total sales $ 2,175 $ 2,153 |
Activity of Gift Card Liability Balance | April 30, May 1, ($ in millions) 2022 2021 Gift card liability at beginning of year $ 46 $ 41 Redemptions (65) (56) Breakage recognized in sales (4) (4) Activations 60 62 Gift card liability $ 37 $ 43 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Segment Information [Abstract] | |
Sales and Division Operating Results for Reportable Segments | 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 April 30, May 1, ($ in millions) 2022 2021 Sales $ 2,175 $ 2,153 Operating Results Division profit 260 315 Less: Impairment and other charges (1) 6 4 Less: Corporate expense (2) 37 29 Income from operations 217 282 Interest expense, net (5) (2) Other (expense) / income, net (3) (22) 4 Income before income taxes $ 190 $ 284 (1) We recorded pre-tax charges of $6 million and $4 million during the first quarter of 2022 and 2021, respectively, as detailed in Note 5, 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. (3) Other (expense) income, net for the thirteen weeks ended April 30, 2022 primarily consisted of a $25 million loss on the change in fair value of our investment in Retailors, Ltd., a publicly-listed entity, which was partially offset by other income. |
Disaggregation of Revenue | The table below presents sales disaggregated based upon sales channel. Sales are attributable to the channel in which the sales transaction is initiated. Thirteen weeks ended April 30, May 1, ($ in millions) 2022 2021 Sales by Channel Stores $ 1,776 $ 1,620 Direct-to-customers 399 533 Total sales $ 2,175 $ 2,153 |
Impairment and Other Charges (T
Impairment and Other Charges (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Impairment and Other Charges [Abstract] | |
Schedule of Impairment and Other Charges | Thirteen weeks ended April 30, May 1, ($ in millions) 2022 2021 Impairment of long-lived assets and right-of-use assets $ 3 $ — Acquisition and integration costs 2 — Other 1 — Impairment of investments — 2 Reorganization costs — 2 Total impairment and other charges $ 6 $ 4 |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
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. April 30, May 1, ($ in millions) 2022 2021 Cash and cash equivalents $ 551 $ 1,963 Restricted cash included in other current assets 8 8 Restricted cash included in other non-current assets 36 30 Cash, cash equivalents, and restricted cash $ 595 $ 2,001 |
Other Intangible Assets, Net (T
Other Intangible Assets, Net (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
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: April 30, 2022 May 1, 2021 Gross Accum. Net Gross Accum. Net ($ in millions) value amort. value value amort. value Amortized intangible assets: (1) Lease acquisition costs $ 101 $ (98) $ 3 $ 119 $ (115) $ 4 Trademarks/tradenames (2) 18 (18) — 20 (17) 3 Customer lists 20 (4) 16 — — — $ 139 $ (120) $ 19 $ 139 $ (132) $ 7 Indefinite life intangible assets: (1) Trademarks/tradenames $ 422 $ 9 Other intangible assets, net $ 441 $ 16 (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. (2) During the fourth quarter of 2021, we recorded a non-cash impairment charge related to the Footaction tradename. |
Amortization Expense | Amortization expense recorded is as follows: Thirteen weeks ended April 30, May 1, ($ in millions) 2022 2021 Amortization expense $ 3 $ 1 |
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 2022 $ 6 2023 7 2024 5 2025 1 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss (“AOCL”), net of tax, is comprised of the following: April 30, May 1, January 29, ($ in millions) 2022 2021 2022 Foreign currency translation adjustments $ (151) $ (60) $ (107) Cash flow hedges 1 (1) — Unrecognized pension cost and postretirement benefit (234) (265) (236) $ (384) $ (326) $ (343) |
Changes in Accumulated Other Comprehensive Loss | The changes in AOCL for the thirteen weeks ended April 30, 2022 were as follows: Foreign Items Related Currency to Pension and Translation Cash Flow Postretirement ($ in millions) Adjustments Hedges Benefits Total Balance as of January 29, 2022 $ (107) — $ (236) $ (343) OCI before reclassification (44) 1 1 (42) Amortization of pension actuarial loss, net of tax — — 1 1 Pension remeasurement, net of tax — — — — Other comprehensive income (44) 1 2 (41) Balance as of April 30, 2022 $ (151) $ 1 $ (234) $ (384) |
Reclassification from Accumulated Other Comprehensive Loss | Reclassifications from AOCL for the thirteen weeks ended April 30, 2022 were as follows: ($ in millions) Amortization of actuarial loss: Pension benefits $ 2 Income tax benefit (1) Total, net of tax $ 1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
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 April 30, 2022 As of May 1, 2021 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Minority investment in common stock $ 120 $ — $ — $ — $ — $ — Available-for-sale security — 6 — — 7 — Foreign exchange forward contracts — 2 — — 2 — Total assets $ 120 $ 8 $ — $ — $ 9 $ — Liabilities Contingent consideration — — 35 — — — Foreign exchange forward contracts — — — — 4 — Total liabilities $ — $ — $ 35 $ — $ 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) April 30, 2022 May 1, 2021 Carrying value (1) $ 394 $ 99 Fair value $ 332 $ 104 (1) The carrying value of debt as of April 30, 2022 reflects $6 million of issuer’s discount and costs related to the 4% Notes. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
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 April 30, May 1, (in millions, except per share data) 2022 2021 Net income attributable to Foot Locker, Inc. $ 133 $ 202 Weighted-average common shares outstanding 96.1 103.6 Dilutive effect of potential common shares 1.1 1.4 Weighted-average common shares outstanding assuming dilution 97.2 105.0 Earnings per share - basic $ 1.38 $ 1.95 Earnings per share - diluted $ 1.37 $ 1.93 Anti-dilutive share-based awards excluded from diluted calculation 2.5 1.7 |
Pension (Tables)
Pension (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Retirement Plans and Other Benefits [Abstract] | |
Net Benefit Expense (Income) | Thirteen weeks ended April 30, May 1, ($ in millions) 2022 2021 Service cost $ 4 $ 4 Interest cost 5 4 Expected return on plan assets (8) (9) Amortization of net loss 2 3 Net benefit expense $ 3 $ 2 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
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 April 30, May 1, ($ in millions) 2022 2021 Options and employee stock purchase plan $ 1 $ 2 Restricted stock units and performance stock units 6 6 Total share-based compensation expense $ 7 $ 8 Tax benefit recognized $ 1 $ 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 thirteen weeks ended April 30, 2022 and May 1, 2021. Stock Option Plans Stock Purchase Plan April 30, May 1, April 30, May 1, 2022 2021 2022 2021 Weighted-average risk free rate of interest 2.3 % 0.9 % 0.1 % 0.2 % Expected volatility 50 % 47 % 40 % 48 % Weighted-average expected award life (in years) 5.5 5.5 1.0 1.0 Dividend yield 3.9 % 1.5 % 1.8 % 5.6 % Weighted-average fair value $ 10.42 $ 20.22 $ 29.46 $ 6.35 |
Options Granted under 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 3,211 $ 48.84 Granted 506 30.97 Exercised (74) 28.75 Expired or cancelled (115) 54.60 Options outstanding at April 30, 2022 3,528 5.5 $ 46.51 Options exercisable at April 30, 2022 2,665 4.3 $ 51.41 Options available for future grant at April 30, 2022 2,296 |
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 April 30, May 1, ($ in millions) 2022 2021 Exercised $ — $ 3 |
Aggregate Intrinsic Value for Stock Options Outstanding and Exercisable | Thirteen weeks ended April 30, May 1, ($ in millions) 2022 2021 Exercised $ — $ 3 |
Information about Stock Options Outstanding and Exercisable | The table below summarizes information about stock options outstanding and exercisable at April 30, 2022. 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 - $36.51 1,372 7.7 $ 26.18 624 $ 24.04 $44.78 - $48.98 453 3.6 45.02 452 45.02 $53.61 - $58.94 510 6.3 56.66 396 57.48 $62.02 - $72.83 1,193 3.3 66.13 1,193 66.13 3,528 5.5 $ 46.51 2,665 $ 51.41 |
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 1,391 $ 43.95 Granted 979 30.17 Vested (88) 58.39 Performance adjustment (1) (22) Forfeited (21) 35.15 Nonvested at April 30, 2022 2,239 2.0 $ 36.85 Aggregate value ($ in millions) $ 83 (1) This represents adjustments made to PSUs reflecting changes in estimates based upon our current performance against predefined financial targets. |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jun. 07, 2022USD ($) | Apr. 30, 2022USD ($) | Jan. 29, 2022USD ($) | Jan. 29, 2022USD ($)agreement | May 01, 2021USD ($) | |||
Business Combination Segment Allocation [Line Items] | |||||||
Purchase of business, net of cash acquired | $ 7 | ||||||
Goodwill | 783 | $ 797 | [1] | $ 797 | [1] | $ 159 | |
Businesses acquired | agreement | 2 | ||||||
atmos [Member] | |||||||
Business Combination Segment Allocation [Line Items] | |||||||
Payments to Acquire Businesses, Gross | 3 | 30 | $ 328 | ||||
Purchase price | 363 | ||||||
Contingent consideration | 35 | 35 | 35 | ||||
Post-closing payable | 11 | ||||||
Goodwill | 242 | 242 | 242 | ||||
atmos [Member] | Subsequent Event [Member] | |||||||
Business Combination Segment Allocation [Line Items] | |||||||
Payments to Acquire Businesses, Gross | $ 5 | ||||||
atmos [Member] | Maximum [Member] | |||||||
Business Combination Segment Allocation [Line Items] | |||||||
Contingent consideration | 111 | ||||||
WSS [Member] | |||||||
Business Combination Segment Allocation [Line Items] | |||||||
Payments to Acquire Businesses, Gross | $ 4 | ||||||
Purchase price | 811 | ||||||
Purchase of business, net of cash acquired | 741 | ||||||
Goodwill | $ 405 | $ 405 | |||||
[1] | The balance sheet at January 29, 2022 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 29, 2022. |
Acquisition (Schedule of Assets
Acquisition (Schedule of Assets/Liabilities Acquired) (Details) - USD ($) $ in Millions | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 | |
Business Combination Segment Allocation [Line Items] | ||||
Goodwill | $ 783 | $ 797 | [1] | $ 159 |
atmos [Member] | ||||
Business Combination Segment Allocation [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 6 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 22 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 12 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 7 | |||
Business Combination, Recognized Identifiable Assets Acquired, Right-of-use-assets | 44 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 130 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 9 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 6 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | (10) | |||
Business Combination, Recognized Identifiable Liabilities Assumed, Current Portion of Obligations Under Finance Leases | (10) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | (8) | |||
Business Combination, Recognized Identifiable Liabilities Assumed, Long-term Lease Obligations | (35) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | (44) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | (8) | |||
Goodwill | $ 242 | 242 | ||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net, Total | 363 | |||
WSS [Member] | ||||
Business Combination Segment Allocation [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 70 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 82 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 10 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 133 | |||
Business Combination, Recognized Identifiable Assets Acquired, Right-of-use-assets | 143 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 296 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 13 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 4 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | (58) | |||
Business Combination, Recognized Identifiable Liabilities Assumed, Current Portion of Obligations Under Finance Leases | (3) | |||
Business Combination, Recognized Identifiable Liabilities Assumed, Current Portion of Lease Obligations | (19) | |||
Business Combination, Recognized Identifiable Liabilities Assumed, Long Term Portion of Obligations Under Finance Leases | (50) | |||
Business Combination, Recognized Identifiable Liabilities Assumed, Long-term Lease Obligations | (127) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | (84) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | (4) | |||
Goodwill | 405 | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net, Total | $ 811 | |||
[1] | The balance sheet at January 29, 2022 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 29, 2022. |
Revenue (Schedule of Sales Disa
Revenue (Schedule of Sales Disaggregated by Sales Channel) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Sales | $ 2,175 | $ 2,153 |
Store Sales Channel [Member] | ||
Sales | 1,776 | 1,620 |
Direct to Customers Sales Channel [Member] | ||
Sales | $ 399 | $ 533 |
Revenue (Schedule of Sales Di_2
Revenue (Schedule of Sales Disaggregated by Geographic Area) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Sales | $ 2,175 | $ 2,153 |
United States | ||
Sales | 1,632 | 1,713 |
International [Member] | ||
Sales | $ 543 | $ 440 |
Revenue (Activity of Gift Card
Revenue (Activity of Gift Card Liability Balance) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Accrued gift card liability at beginning of period | $ 46 | $ 41 |
Accrued gift card liability at end of period | 37 | 43 |
Gift Card Redemption Revenue [Member] | ||
Revenue recognized | (65) | (56) |
Gift Card Breakage Revenue [Member] | ||
Revenue recognized | (4) | (4) |
Gift Card Activations [Member] | ||
Activations | $ 60 | $ 62 |
Segment Information (Sales and
Segment Information (Sales and Division Operating Results for Reportable Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Segment Information [Abstract] | ||
Sales | $ 2,175 | $ 2,153 |
Division profit | 260 | 315 |
Less: Impairment and other charges | 6 | 4 |
Less: Corporate expense | 37 | 29 |
Income from operations | 217 | 282 |
Interest expense, net | (5) | (2) |
Other (expense) / income, net | (22) | 4 |
Income before income taxes | 190 | $ 284 |
Change in faire value of investment | $ 25 |
Impairment and Other Charges (S
Impairment and Other Charges (Schedule of Impairment and Other Charges) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Impairment and Other Charges [Abstract] | ||
Impairment of long-lived assets and right-of-use assets | $ 3 | |
Acquisition and integration costs | 2 | |
Other | 1 | |
Impairment of investments | $ 2 | |
Reorganization costs | 2 | |
Total impairment and other charges | $ 6 | $ 4 |
Impairment and Other Charges (N
Impairment and Other Charges (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Impairment and Other Charges [Abstract] | ||
Impairment of assets | $ 3 | |
Other | 1 | |
Impairment of investments | $ 2 | |
Acquisition and integration costs | $ 2 | |
Reorganization costs | $ 2 |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash (Reconciliation of Cash and Cash Equivalents) (Details) - USD ($) $ in Millions | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 | Jan. 30, 2021 | |
Restricted Cash [Abstract] | |||||
Cash and cash equivalents | $ 551 | $ 804 | [1] | $ 1,963 | |
Restricted cash included in other current assets | 8 | 8 | |||
Restricted cash included in other non-current assets | 36 | 30 | |||
Cash, cash equivalents, and restricted cash | $ 595 | $ 850 | $ 2,001 | $ 1,718 | |
[1] | The balance sheet at January 29, 2022 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 29, 2022. |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) $ in Millions | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 | |
Business Combination Segment Allocation [Line Items] | ||||
Goodwill | $ 783 | $ 797 | [1] | $ 159 |
WSS [Member] | ||||
Business Combination Segment Allocation [Line Items] | ||||
Goodwill | $ 405 | |||
[1] | The balance sheet at January 29, 2022 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 29, 2022. |
Other Intangible Assets, Net (S
Other Intangible Assets, Net (Schedule of Other Intangible Asset) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Apr. 30, 2022 | Jan. 29, 2022 | [1] | May 01, 2021 | |
Intangible Assets by Major Class [Line Items] | ||||
Amortized intangible assets, Gross value | $ 139 | $ 139 | ||
Amortized intangible assets, Accum. amort. | (120) | (132) | ||
Amortized intangible assets, Net value | 19 | 7 | ||
Other intangible assets, net | 441 | $ 454 | 16 | |
Lease Acquisition Costs [Member] | ||||
Intangible Assets by Major Class [Line Items] | ||||
Amortized intangible assets, Gross value | 101 | 119 | ||
Amortized intangible assets, Accum. amort. | (98) | (115) | ||
Amortized intangible assets, Net value | 3 | 4 | ||
Trademarks and Trade Names [Member] | ||||
Intangible Assets by Major Class [Line Items] | ||||
Amortized intangible assets, Gross value | 18 | 20 | ||
Amortized intangible assets, Accum. amort. | (18) | (17) | ||
Amortized intangible assets, Net value | 3 | |||
Customer Lists [Member] | ||||
Intangible Assets by Major Class [Line Items] | ||||
Amortized intangible assets, Gross value | 20 | |||
Amortized intangible assets, Accum. amort. | (4) | |||
Amortized intangible assets, Net value | $ 16 | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 3 years | |||
atmos [Member] | Customer Lists [Member] | ||||
Intangible Assets by Major Class [Line Items] | ||||
Amortized intangible assets, Net value | $ 9 | |||
WSS [Member] | Customer Lists [Member] | ||||
Intangible Assets by Major Class [Line Items] | ||||
Amortized intangible assets, Net value | 13 | |||
Trademarks and Trade Names [Member] | ||||
Intangible Assets by Major Class [Line Items] | ||||
Indefinite life intangible assets, Net Value | 422 | $ 9 | ||
Trademarks and Trade Names [Member] | atmos [Member] | ||||
Intangible Assets by Major Class [Line Items] | ||||
Indefinite life intangible assets, Net Value | 130 | |||
Trademarks and Trade Names [Member] | WSS [Member] | ||||
Intangible Assets by Major Class [Line Items] | ||||
Indefinite life intangible assets, Net Value | $ 296 | |||
[1] | The balance sheet at January 29, 2022 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 29, 2022. |
Other Intangible Assets, Net (A
Other Intangible Assets, Net (Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Goodwill and Other Intangible Assets, Net [Abstract] | ||
Amortization expense | $ 3 | $ 1 |
Other Intangible Assets, Net (E
Other Intangible Assets, Net (Estimated Future Amortization Expense for Finite Lived Intangibles) (Details) $ in Millions | Apr. 30, 2022USD ($) |
Goodwill and Other Intangible Assets, Net [Abstract] | |
Remainder of 2022 | $ 6 |
2023 | 7 |
2024 | 5 |
2025 | $ 1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 | |
Accumulated Other Comprehensive Loss [Abstract] | ||||
Foreign currency translation adjustments | $ (151) | $ (107) | $ (60) | |
Cash flow hedges | 1 | (1) | ||
Unrecognized pension cost and postretirement benefit | (234) | (236) | (265) | |
Accumulated other comprehensive loss ("AOCL"), net of tax | $ (384) | $ (343) | [1] | $ (326) |
[1] | The balance sheet at January 29, 2022 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 29, 2022. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Changes in Accumulated Other Comprehensive Loss) (Details) $ in Millions | 3 Months Ended | |
Apr. 30, 2022USD ($) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ (343) | [1] |
OCI before reclassification | (42) | |
Amortization of pension actuarial (gain)/loss, net of tax | 1 | |
Other comprehensive income | (41) | |
Ending Balance | (384) | |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (107) | |
OCI before reclassification | (44) | |
Amortization of pension actuarial (gain)/loss, net of tax | ||
Other comprehensive income | (44) | |
Ending Balance | (151) | |
Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | ||
OCI before reclassification | 1 | |
Amortization of pension actuarial (gain)/loss, net of tax | ||
Other comprehensive income | 1 | |
Ending Balance | 1 | |
Items Related to Pension and Postretirement Benefits [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (236) | |
OCI before reclassification | 1 | |
Amortization of pension actuarial (gain)/loss, net of tax | 1 | |
Other comprehensive income | 2 | |
Ending Balance | $ (234) | |
[1] | The balance sheet at January 29, 2022 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 29, 2022. |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss (Reclassifications from Accumulated Other Comprehensive Loss) (Details) $ in Millions | 3 Months Ended |
Apr. 30, 2022USD ($) | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |
Income tax benefit | $ (1) |
Total, net of tax | 1 |
Pension Benefits [Member] | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |
Pension benefits | $ 2 |
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 | Apr. 30, 2022 | May 01, 2021 |
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 | $ 120 | |
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 | 120 | |
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 | $ 9 |
Liabilities measured at fair value on recurring basis | 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 | 6 | 7 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities measured at fair value on recurring basis | 35 | |
Level 3 [Member] | Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities measured at fair value on recurring basis | 35 | |
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 | 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 | $ 2 | $ 2 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Value and Estimated Fair Value of Long-Term Debt) (Details) - USD ($) $ in Millions | Apr. 30, 2022 | May 01, 2021 |
Fair Value Measurements [Abstract] | ||
Long-term debt, Carrying value | $ 394 | $ 99 |
Long-term debt, Fair value | 332 | $ 104 |
Debt discount | $ 6 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 | |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | $ 0 | $ 0 | $ 0 |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 0 |
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 0 |
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | $ 0 | 0 |
Equity method investment fair value | 579 | $ 323 | |
Other | 1 | ||
Increase (decrease) in minority interests | $ 68 | ||
Senior Notes Due 2029 [Member] | |||
Interest rate | 4.00% | ||
Debt instrument, face amount | $ 400 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Earnings Per Share [Abstract] | ||
Contingently issuable shares excluded from diluted earnings per share | 0.9 | 0.4 |
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 | |
Apr. 30, 2022 | May 01, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net income/(loss) | $ 133 | $ 202 |
Weighted-average common shares outstanding | 96.1 | 103.6 |
Dilutive effect of potential common shares | 1.1 | 1.4 |
Weighted-average common shares outstanding assuming dilution | 97.2 | 105 |
Earnings per share - basic | $ 1.38 | $ 1.95 |
Earnings per share - diluted | $ 1.37 | $ 1.93 |
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 | 1.7 |
Pension (Net Benefit Expense (I
Pension (Net Benefit Expense (Income)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Retirement Plans and Other Benefits [Abstract] | ||
Service cost | $ 4 | $ 4 |
Interest cost | $ 5 | $ 4 |
Interest cost, extensible enumeration | Other (expense) / income, net | Other (expense) / income, net |
Expected return on plan assets | $ (8) | $ (9) |
Expected return on plan assets, extensible enumeration | Other (expense) / income, net | Other (expense) / income, net |
Amortization of net loss | $ 2 | $ 3 |
Amortization of net loss, extensible enumeration | Other (expense) / income, net | Other (expense) / income, net |
Net benefit expense (income) | $ 3 | $ 2 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
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 | 2,296 | |
Unrecognized compensation cost | $ 54 | |
Fair value of options vested | 4 | $ 4 |
Proceeds from exercise of stock options | 2 | 4 |
Restricted Stock and Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of awards | 5 | $ 21 |
Dividends | $ 0 | |
Restricted Stock and Units [Member] | Employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Restricted Stock and 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 | $ 7 | |
Unrecognized compensation cost related to nonvested stock options, weighted-average period expected to be recognized | 1 year 9 months 18 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 | |
Apr. 30, 2022 | May 01, 2021 | |
Share-Based Compensation [Abstract] | ||
Options and shares purchased under the employee stock purchase plan | $ 1 | $ 2 |
Restricted stock units and performance stock units | 6 | 6 |
Total share-based compensation expense | 7 | 8 |
Tax benefit recognized | $ 1 | $ 1 |
Share-Based Compensation (Assum
Share-Based Compensation (Assumptions Used to Compute Share-Based Compensation Expense) (Details) - $ / shares | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Stock Option Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average risk free rate of interest | 2.30% | 0.90% |
Expected volatility | 50.00% | 47.00% |
Weighted-average expected award life (in years) | 5 years 6 months | 5 years 6 months |
Dividend yield | 3.90% | 1.50% |
Weighted-average fair value | $ 10.42 | $ 20.22 |
2013 ESPP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average risk free rate of interest | 0.10% | 0.20% |
Expected volatility | 40.00% | 48.00% |
Weighted-average expected award life (in years) | 1 year | 1 year |
Dividend yield | 1.80% | 5.60% |
Weighted-average fair value | $ 29.46 | $ 6.35 |
Share-Based Compensation (Optio
Share-Based Compensation (Options Granted Under Stock Option Plans) (Details) shares in Thousands | 3 Months Ended |
Apr. 30, 2022$ / sharesshares | |
Number of Shares | |
Options outstanding at beginning of year | 3,211 |
Granted | 506 |
Exercised | (74) |
Expired or cancelled | (115) |
Options outstanding at end of period | 3,528 |
Options exercisable at end of period | 2,665 |
Options available for future grant at end of period | 2,296 |
Weighted-Average Exercise Price | |
Options outstanding at beginning of year | $ / shares | $ 48.84 |
Granted | $ / shares | 30.97 |
Exercised | $ / shares | 28.75 |
Expired or cancelled | $ / shares | 54.60 |
Options outstanding at end of period | $ / shares | 46.51 |
Options exercisable at end of period | $ / shares | $ 51.41 |
Options outstanding, weighted-average remaining contractual life | 5 years 6 months |
Options exercisable at end of period, Weighted-average remaining contractual life | 4 years 3 months 18 days |
Share-Based Compensation (Tot_2
Share-Based Compensation (Total Intrinsic Value of Options Exercised) (Details) $ in Millions | 3 Months Ended |
May 01, 2021USD ($) | |
Intrinsic value of stock options | |
Exercised | $ 3 |
Share-Based Compensation (Aggre
Share-Based Compensation (Aggregate Intrinsic Value for Stock Options Outstanding and Exercisable) (Details) - USD ($) $ in Millions | Apr. 30, 2022 | May 01, 2021 |
Share-Based Compensation [Abstract] | ||
Outstanding | $ 6 | $ 48 |
Outstanding and exercisable | $ 4 | $ 27 |
Share-Based Compensation (Infor
Share-Based Compensation (Information about Stock Options Outstanding and Exercisable) (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Apr. 30, 2022 | Jan. 29, 2022 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Number of Shares | 3,528 | 3,211 |
Options outstanding, weighted-average remaining contractual life | 5 years 6 months | |
Options Outstanding, Weighted-Average Exercise Price | $ 46.51 | $ 48.84 |
Options Exercisable, Number of Shares | 2,665 | |
Options Exercisable, Weighted-Average Exercise Price | $ 51.41 | |
$21.60 - $36.51 [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 | $ 36.51 | |
Options Outstanding, Number of Shares | 1,372 | |
Options outstanding, weighted-average remaining contractual life | 7 years 8 months 12 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 26.18 | |
Options Exercisable, Number of Shares | 624 | |
Options Exercisable, Weighted-Average Exercise Price | $ 24.04 | |
$44.78 - $48.98 [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 | $ 48.98 | |
Options Outstanding, Number of Shares | 453 | |
Options outstanding, weighted-average remaining contractual life | 3 years 7 months 6 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 45.02 | |
Options Exercisable, Number of Shares | 452 | |
Options Exercisable, Weighted-Average Exercise Price | $ 45.02 | |
$53.61 - $58.94 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Lower Limit | 53.61 | |
Range of Exercise Prices, Upper Limit | $ 58.94 | |
Options Outstanding, Number of Shares | 510 | |
Options outstanding, weighted-average remaining contractual life | 6 years 3 months 18 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 56.66 | |
Options Exercisable, Number of Shares | 396 | |
Options Exercisable, Weighted-Average Exercise Price | $ 57.48 | |
$62.02 - $72.83 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Lower Limit | 62.02 | |
Range of Exercise Prices, Upper Limit | $ 72.83 | |
Options Outstanding, Number of Shares | 1,193 | |
Options outstanding, weighted-average remaining contractual life | 3 years 3 months 18 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 66.13 | |
Options Exercisable, Number of Shares | 1,193 | |
Options Exercisable, Weighted-Average Exercise Price | $ 66.13 |
Share-Based Compensation (Chang
Share-Based Compensation (Changes in Nonvested Options) (Details) - Restricted Stock and Units [Member] $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Apr. 30, 2022USD ($)$ / sharesshares | ||
Number of Shares | ||
Nonvested, Beginning Balance | 1,391 | |
Granted | 979 | |
Vested | (88) | |
Performance adjustment | (22) | |
Expired or cancelled | (21) | [1] |
Nonvested, Ending Balance | 2,239 | |
Aggregate value | $ | $ 83 | |
Wtg. Avg. remaining contractual life (in years) | 2 years | |
Weighted-Average Grant Date Fair Value per Share | ||
Nonvested, Beginning Balance | $ / shares | $ 43.95 | |
Granted | $ / shares | 30.17 | |
Vested | $ / shares | 58.39 | |
Cancelled | $ / shares | 35.15 | [1] |
Nonvested, Ending Balance | $ / shares | $ 36.85 | |
[1] | Weighted-Average |