Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
3-May-14 | Jun. 03, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 3-May-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'GPS | ' |
Entity Registrant Name | 'GAP INC | ' |
Entity Central Index Key | '0000039911 | ' |
Current Fiscal Year End Date | '--01-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 440,723,979 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
In Millions, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash and cash equivalents | $1,544 | $1,510 | $1,610 |
Merchandise inventory | 1,909 | 1,928 | 1,723 |
Other current assets | 867 | 992 | 798 |
Total current assets | 4,320 | 4,430 | 4,131 |
Property and equipment, net of accumulated depreciation of $5,459, $5,401, and $5,355 | 2,703 | 2,758 | 2,608 |
Other long-term assets | 672 | 661 | 700 |
Total assets | 7,695 | 7,849 | 7,439 |
Current liabilities: | ' | ' | ' |
Current maturities of debt | 24 | 25 | 0 |
Accounts payable | 1,101 | 1,242 | 1,008 |
Accrued expenses and other current liabilities | 980 | 1,142 | 934 |
Income taxes payable | 98 | 36 | 160 |
Total current liabilities | 2,203 | 2,445 | 2,102 |
Long-term liabilities: | ' | ' | ' |
Total long-term debt, less current portion | 1,369 | 1,369 | 1,247 |
Lease incentives and other long-term liabilities | 1,087 | 973 | 929 |
Total long-term liabilities | 2,456 | 2,342 | 2,176 |
Commitments and contingencies (see Note 12) | ' | ' | ' |
Stockholders' equity: | ' | ' | ' |
Common Stock $0.05 par value: Authorized 2,300 shares and Issued 443, 1,106, and 1,106 sharess; Outstanding 443, 446, and 466 shares | 22 | 55 | 55 |
Additional Paid-in Capital | 0 | 2,899 | 2,824 |
Retained earnings | 2,884 | 14,218 | 13,522 |
Amounts reclassified from accumulated other comprehensive income | 130 | 135 | 167 |
Treasury stock at cost (-, 660, and 640 shares) | 0 | -14,245 | -13,407 |
Total stockholders' equity | 3,036 | 3,062 | 3,161 |
Total liabilities and stockholders' equity | $7,695 | $7,849 | $7,439 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
In Millions, except Per Share data, unless otherwise specified | |||
Property and equipment, accumulated depreciation | $5,459 | $5,401 | $5,355 |
Common stock, par value (in dollars per share) | $0.05 | $0.05 | $0.05 |
Common stock, shares authorized (in shares) | 2,300 | 2,300 | 2,300 |
Common stock, shares issued (in shares) | 443 | 1,106 | 1,106 |
Common stock, shares outstanding (in shares) | 443 | 446 | 466 |
Treasury stock, shares (in shares) | 0 | 660 | 640 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | 3-May-14 | 4-May-13 |
Net sales | $3,774 | $3,729 |
Cost of goods sold and occupancy expenses | 2,308 | 2,185 |
Gross profit | 1,466 | 1,544 |
Operating expenses | 1,023 | 1,014 |
Operating income | 443 | 530 |
Interest expense | 17 | 1 |
Interest income | 0 | -1 |
Income before income taxes | 426 | 530 |
Income taxes | 166 | 197 |
Net income | $260 | $333 |
Weighted-average number of shares - basic (in shares) | 445 | 464 |
Weighted-average number of shares - diluted (in shares) | 451 | 471 |
Earnings per share - basic (in dollars per share) | $0.58 | $0.72 |
Earnings per share - diluted (in dollars per share) | $0.58 | $0.71 |
Cash dividends declared and paid per share (in dollars per share) | $0.22 | $0.15 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Net income | $260 | $333 |
Other comprehensive income (loss), net of tax: | ' | ' |
Foreign currency translation | 11 | -28 |
Change in fair value of derivative financial instruments, net of tax (tax benefit) of $(4) and $14 | -11 | 22 |
Reclassification adjustment for realized gains on derivative financial instruments, net of tax of $(3) and $(6) | -5 | -8 |
Other comprehensive income (loss), net of tax | -5 | -14 |
Comprehensive income | $255 | $319 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Change in fair value of derivative financial instruments, tax (tax benefit) | ($4) | $14 |
Reclassification adjustment for realized losses on derivative financial instruments, tax benefit (tax) | ($3) | ($6) |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Cash flows from operating activities: | ' | ' |
Net income | $260 | $333 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 133 | 134 |
Amortization of lease incentives | -15 | -16 |
Share-based compensation | 25 | 31 |
Tax benefit from exercise of stock options and vesting of stock units | 23 | 27 |
Excess tax benefit from exercise of stock options and vesting of stock units | -24 | -28 |
Non-cash and other items | 2 | -3 |
Deferred income taxes | 7 | 28 |
Changes in operating assets and liabilities: | ' | ' |
Merchandise inventory | 21 | 28 |
Other current assets and other long-term assets | 173 | 65 |
Accounts payable | -144 | -138 |
Accrued expenses and other current liabilities | -141 | -132 |
Income taxes payable, net of prepaid and other tax-related items | 83 | 67 |
Lease incentives and other long-term liabilities | 110 | -40 |
Net cash provided by operating activities | 513 | 356 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -162 | -151 |
Maturities of short-term investments | 0 | 50 |
Other | -1 | -3 |
Net cash used for investing activities | -163 | -104 |
Cash flows from financing activities: | ' | ' |
Issuances under share-based compensation plans, net | -14 | 15 |
Repurchases of common stock | -230 | -58 |
Excess tax benefit from exercise of stock options and vesting of stock units | 24 | 28 |
Cash dividends paid | -98 | -70 |
Other | 0 | -1 |
Net cash used for financing activities | -318 | -86 |
Effect of foreign exchange rate fluctuations on cash and cash equivalents | 2 | -16 |
Net increase in cash and cash equivalents | 34 | 150 |
Cash and cash equivalents at beginning of period | 1,510 | 1,460 |
Cash and cash equivalents at end of period | 1,544 | 1,610 |
Non-cash investing activities: | ' | ' |
Purchases of property and equipment not yet paid at end of period | 72 | 63 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest during the period | 38 | 38 |
Cash paid for income taxes during the period | $54 | $119 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
3-May-14 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The Condensed Consolidated Balance Sheets as of May 3, 2014 and May 4, 2013, the Condensed Consolidated Statements of Income, the Condensed Consolidated Statements of Comprehensive Income, and the Condensed Consolidated Statements of Cash Flows for the thirteen weeks ended May 3, 2014 and May 4, 2013 have been prepared by The Gap, Inc. (the “Company,” “we,” and “our”). In the opinion of management, such statements include all adjustments (which include only normal recurring adjustments) considered necessary to present fairly our financial position, results of operations, and cash flows as of May 3, 2014 and May 4, 2013 and for all periods presented. The Condensed Consolidated Balance Sheet as of February 1, 2014 has been derived from our audited financial statements. | |
The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and disclosures normally included in the notes to the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted from these interim financial statements. We suggest that you read these Condensed Consolidated Financial Statements in conjunction with the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2014. | |
The results of operations for the thirteen weeks ended May 3, 2014 are not necessarily indicative of the operating results that may be expected for the 52-week period ending January 31, 2015. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements Recent Accounting Pronouncements | 3 Months Ended |
3-May-14 | |
Recent Accounting Pronouncements [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board issued an accounting standards update ("ASU") No. 2014-09, Revenue from Contracts with Customers, to clarify the principles of recognizing revenue and create common revenue recognition guidance between U.S. GAAP and International Financial Reporting Standards. This ASU is effective retrospectively for fiscal years and interim periods within those years beginning after December 15, 2016. We are currently assessing the potential impact of this ASU on our Condensed Consolidated Financial Statements. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | |||||||||||
3-May-14 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Goodwill and Intangible Assets | ' | |||||||||||
Goodwill and Other Intangible Assets | ||||||||||||
Goodwill and intangible assets consist of the following and are included in other long-term assets in the Condensed Consolidated Balance Sheets: | ||||||||||||
($ in millions) | May 3, | February 1, | May 4, | |||||||||
2014 | 2014 | 2013 | ||||||||||
Goodwill | $ | 180 | $ | 180 | $ | 181 | ||||||
Trade names | $ | 92 | $ | 92 | $ | 92 | ||||||
Other indefinite-lived intangible assets | $ | 6 | $ | 6 | $ | 6 | ||||||
Intangible assets subject to amortization | $ | 18 | $ | 18 | $ | 18 | ||||||
Less: Accumulated amortization | (17 | ) | (17 | ) | (16 | ) | ||||||
Intangible assets subject to amortization, net | $ | 1 | $ | 1 | $ | 2 | ||||||
Goodwill | ||||||||||||
During the thirteen weeks ended May 3, 2014 and May 4, 2013, there were no changes to the $99 million carrying amount of goodwill related to Athleta. | ||||||||||||
The carrying amount of goodwill related to Intermix decreased by $3 million to $82 million during the thirteen weeks ended May 4, 2013 and was further adjusted to $81 million as of February 1, 2014. These changes were due to an adjustment of the initial fair values, which were preliminary and subject to adjustments as of December 31, 2012, the date of acquisition. As of February 1, 2014, the purchase price allocation for Intermix was complete. During the thirteen weeks ended May 3, 2014, there was no change to the $81 million carrying amount of goodwill related to Intermix. | ||||||||||||
Other Intangible Assets | ||||||||||||
Trade names consist of $54 million and $38 million related to Athleta and Intermix, respectively, as of May 3, 2014, February 1, 2014, and May 4, 2013. | ||||||||||||
The intangible assets subject to amortization consist of customer relationships and non-compete agreements related to Athleta and Intermix of $15 million and $3 million, respectively. Athleta's intangible assets subject to amortization were fully amortized by the end of fiscal 2012. Intermix's non-compete agreements were fully amortized in fiscal 2013 and its customer relationships are being amortized over a period of four years. | ||||||||||||
There was no material amortization expense for intangible assets subject to amortization recorded in operating expenses in the Condensed Consolidated Statements of Income for the thirteen weeks ended May 3, 2014 and May 4, 2013. |
Debt_and_Credit_Facilities
Debt and Credit Facilities | 3 Months Ended | |||||||||||
3-May-14 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Debt and Credit Facilities | ' | |||||||||||
Debt and Credit Facilities | ||||||||||||
($ in millions) | May 3, | February 1, | May 4, | |||||||||
2014 | 2014 | 2013 | ||||||||||
Notes | $ | 1,247 | $ | 1,247 | $ | 1,247 | ||||||
Japan Term Loan | 146 | 147 | — | |||||||||
Total long-term debt | 1,393 | 1,394 | 1,247 | |||||||||
Less: Current portion | (24 | ) | (25 | ) | — | |||||||
Total long-term debt, less current portion | $ | 1,369 | $ | 1,369 | $ | 1,247 | ||||||
As of May 3, 2014, February 1, 2014, and May 4, 2013, the estimated fair value of our $1.25 billion aggregate principal amount of 5.95 percent notes (the "Notes”) due April 2021 was $1.42 billion, $1.39 billion, and $1.46 billion, respectively, and was based on the quoted market price of the Notes (level 1 inputs) as of the last business day of the respective fiscal quarter. The aggregate principal amount of the Notes is recorded in long-term debt in the Condensed Consolidated Balance Sheets, net of the unamortized discount. | ||||||||||||
As of May 3, 2014 and February 1, 2014, the carrying amount of our 15 billion Japanese yen ($146 million as of May 3, 2014), four-year, unsecured term loan ("Japan Term Loan") approximated its fair value, as the interest rate varies depending on quoted market rates (level 1 inputs). Repayments of 2.5 billion Japanese yen ($24 million as of May 3, 2014) are payable on January 15 of each year, commencing on January 15, 2015, with a final repayment of 7.5 billion Japanese yen due on January 15, 2018. Interest is payable at least quarterly based on an interest rate equal to the Tokyo Interbank Offered Rate ("TIBOR") plus a fixed margin. | ||||||||||||
We have a $500 million, five-year, unsecured revolving credit facility (the “Facility”), which is scheduled to expire in May 2018. There were no borrowings and no material outstanding standby letters of credit under the Facility as of May 3, 2014. | ||||||||||||
We maintain two separate agreements in China (the “China Facilities”) to make unsecured revolving credit facilities available for our operations in China. They are uncommitted and are available for borrowings, overdraft borrowings, and the issuance of bank guarantees. The 250 million Chinese yuan ($40 million as of May 3, 2014) China Facilities have no expiration date. As of May 3, 2014, there were no borrowings under the China Facilities. There were 44 million Chinese yuan ($7 million as of May 3, 2014) in bank guarantees primarily related to store leases under the China Facilities as of May 3, 2014. | ||||||||||||
We have a bilateral unsecured standby letter of credit agreement that is uncommitted and does not have an expiration date. As of May 3, 2014, we had $25 million in standby letters of credit issued under this agreement. We also have a $50 million, two-year, unsecured committed letter of credit agreement, which was set to expire in September 2014. On April 15, 2014, this agreement was amended to extend the expiration date to September 2016. We had no trade letters of credit issued under the letter of credit agreement as of May 3, 2014. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
3-May-14 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
There were no purchases, sales, issuances, or settlements related to recurring level 3 measurements during the thirteen weeks ended May 3, 2014 or May 4, 2013. There were no transfers of financial assets or liabilities into or out of level 1 and level 2 during the thirteen weeks ended May 3, 2014 or May 4, 2013. | ||||||||||||||||
Financial Assets and Liabilities | ||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis and cash equivalents are as follows: | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
($ in millions) | May 3, 2014 | Quoted Prices in | Significant Other | Significant | ||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 452 | $ | 147 | $ | 305 | $ | — | ||||||||
Derivative financial instruments | 44 | — | 44 | — | ||||||||||||
Deferred compensation plan assets | 42 | 42 | — | — | ||||||||||||
Total | $ | 538 | $ | 189 | $ | 349 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Derivative financial instruments | $ | 22 | $ | — | $ | 22 | $ | — | ||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
($ in millions) | 1-Feb-14 | Quoted Prices in | Significant Other | Significant | ||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 519 | $ | 196 | $ | 323 | $ | — | ||||||||
Derivative financial instruments | 64 | — | 64 | — | ||||||||||||
Deferred compensation plan assets | 37 | 37 | — | — | ||||||||||||
Total | $ | 620 | $ | 233 | $ | 387 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Derivative financial instruments | $ | 15 | $ | — | $ | 15 | $ | — | ||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
($ in millions) | May 4, 2013 | Quoted Prices in | Significant Other | Significant | ||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 772 | $ | 497 | $ | 275 | $ | — | ||||||||
Derivative financial instruments | 69 | — | 69 | — | ||||||||||||
Deferred compensation plan assets | 34 | 34 | — | — | ||||||||||||
Total | $ | 875 | $ | 531 | $ | 344 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Derivative financial instruments | $ | 9 | $ | — | $ | 9 | $ | — | ||||||||
We have highly liquid investments classified as cash equivalents, which are placed primarily in money market funds, time deposits, and commercial paper. These investments are classified as held-to-maturity based on our positive intent and ability to hold the securities to maturity. We value these investments at their original purchase prices plus interest that has accrued at the stated rate. | ||||||||||||||||
Derivative financial instruments primarily include foreign exchange forward contracts. The principal currencies hedged against changes in the U.S. dollar are British pounds, Canadian dollars, Euro, and Japanese yen. The fair value of the Company’s derivative financial instruments is determined using pricing models based on current market rates. Derivative financial instruments in an asset position are recorded in other current assets or other long-term assets in the Condensed Consolidated Balance Sheets. Derivative financial instruments in a liability position are recorded in accrued expenses and other current liabilities or lease incentives and other long-term liabilities in the Condensed Consolidated Balance Sheets. | ||||||||||||||||
We maintain the Gap Inc. Deferred Compensation Plan (“DCP”), which allows eligible employees to defer compensation up to a maximum amount. Plan investments are recorded at market value and are designated for the DCP. The fair value of the Company’s DCP assets is determined based on quoted market prices, and the assets are recorded in other long-term assets in the Condensed Consolidated Balance Sheets. | ||||||||||||||||
Nonfinancial Assets | ||||||||||||||||
We review the carrying amount of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We review the carrying amount of goodwill and other indefinite-lived intangible assets for impairment annually and whenever events or changes in circumstances indicate that it is more likely than not that the carrying amount may not be recoverable. | ||||||||||||||||
There were no material impairment charges recorded for goodwill, other indefinite-lived intangible assets, or other long-lived assets for the thirteen weeks ended May 3, 2014 or May 4, 2013. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | |||||||||||
3-May-14 | ||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||
Derivative Financial Instruments | ' | |||||||||||
Derivative Financial Instruments | ||||||||||||
We operate in foreign countries, which exposes us to market risk associated with foreign currency exchange rate fluctuations. Consistent with our risk management guidelines, we hedge a portion of our transactions related to merchandise purchases for foreign operations and certain intercompany transactions using foreign exchange forward contracts. The principal currencies hedged against changes in the U.S. dollar are British pounds, Canadian dollars, Euro, and Japanese yen. We do not enter into derivative financial contracts for trading purposes. Cash flows from derivative financial instruments are classified as cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows. | ||||||||||||
Cash Flow Hedges | ||||||||||||
We designate the following foreign exchange forward contracts as cash flow hedges: (1) forward contracts used to hedge forecasted merchandise purchases and related costs denominated primarily in U.S. dollars made by our international subsidiaries whose functional currencies are their local currencies; (2) forward contracts used to hedge forecasted intercompany royalty payments denominated in foreign currencies received by entities whose functional currencies are U.S. dollars; and (3) forward contracts used to hedge forecasted intercompany revenue transactions related to merchandise sold from our regional purchasing entity, whose functional currency is the U.S. dollar, to certain international subsidiaries in their local currencies of British pounds and Euro. The foreign exchange forward contracts entered into to hedge forecasted merchandise purchases and related costs, intercompany royalty payments, and intercompany revenue transactions generally have terms of up to 18 months. | ||||||||||||
There were no material amounts recorded in the Condensed Consolidated Statements of Income for the thirteen weeks ended May 3, 2014 or May 4, 2013 as a result of hedge ineffectiveness, hedge components excluded from the assessment of effectiveness, or the discontinuance of cash flow hedges because the forecasted transactions were no longer probable. | ||||||||||||
Net Investment Hedges | ||||||||||||
We also use foreign exchange forward contracts to hedge the net assets of international subsidiaries to offset the foreign currency translation and economic exposures related to our investment in the subsidiaries. | ||||||||||||
There were no material amounts recorded in the Condensed Consolidated Statements of Income for the thirteen weeks ended May 3, 2014 or May 4, 2013 as a result of hedge ineffectiveness, hedge components excluded from the assessment of effectiveness, or the discontinuance of net investment hedges. | ||||||||||||
Other Derivatives Not Designated as Hedging Instruments | ||||||||||||
We use foreign exchange forward contracts to hedge our market risk exposure associated with foreign currency exchange rate fluctuations for certain intercompany balances denominated in currencies other than the functional currency of the entity with the intercompany balance. The gain or loss on the derivative financial instruments, as well as the remeasurement impact of the underlying intercompany balances, is recorded in operating expenses in the Condensed Consolidated Statements of Income in the same period and generally offset. We generally enter into foreign exchange forward contracts as needed to hedge intercompany balances that bear foreign exchange risk. | ||||||||||||
Outstanding Notional Amounts | ||||||||||||
We had foreign exchange forward contracts outstanding in the following notional amounts: | ||||||||||||
(notional amounts in millions) | May 3, | February 1, | May 4, | |||||||||
2014 | 2014 | 2013 | ||||||||||
U.S. dollars (1) | $ | 1,583 | $ | 1,309 | $ | 1,284 | ||||||
Canadian dollars | C$ | 8 | C$ | 8 | C$ | — | ||||||
Euro | € | 26 | € | 25 | € | 26 | ||||||
Japanese yen | ¥ | — | ¥ | — | ¥ | 2,275 | ||||||
__________ | ||||||||||||
-1 | The principal currencies hedged against changes in the U.S. dollar were British pounds, Canadian dollars, Euro, and Japanese yen. | |||||||||||
Contingent Features | ||||||||||||
We had no derivative financial instruments with credit-risk-related contingent features underlying the agreements as of May 3, 2014, February 1, 2014, or May 4, 2013. | ||||||||||||
Quantitative Disclosures about Derivative Financial Instruments | ||||||||||||
The fair values of foreign exchange forward contracts are as follows: | ||||||||||||
($ in millions) | May 3, | February 1, | May 4, | |||||||||
2014 | 2014 | 2013 | ||||||||||
Derivatives designated as cash flow hedges: | ||||||||||||
Other current assets | $ | 37 | $ | 48 | $ | 51 | ||||||
Other long-term assets | $ | 4 | $ | 6 | $ | 11 | ||||||
Accrued expenses and other current liabilities | $ | 16 | $ | 13 | $ | 5 | ||||||
Lease incentives and other long-term liabilities | $ | 4 | $ | 1 | $ | 2 | ||||||
Derivatives designated as net investment hedges: | ||||||||||||
Other current assets | $ | — | $ | 1 | $ | 1 | ||||||
Other long-term assets | $ | — | $ | — | $ | — | ||||||
Accrued expenses and other current liabilities | $ | — | $ | — | $ | — | ||||||
Lease incentives and other long-term liabilities | $ | — | $ | — | $ | — | ||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Other current assets | $ | 3 | $ | 9 | $ | 6 | ||||||
Other long-term assets | $ | — | $ | — | $ | — | ||||||
Accrued expenses and other current liabilities | $ | 2 | $ | 1 | $ | 2 | ||||||
Lease incentives and other long-term liabilities | $ | — | $ | — | $ | — | ||||||
Total derivatives in an asset position | $ | 44 | $ | 64 | $ | 69 | ||||||
Total derivatives in a liability position | $ | 22 | $ | 15 | $ | 9 | ||||||
Substantially all of the unrealized gains and losses from designated cash flow hedges as of May 3, 2014 will be recognized in income within the next 12 months at the then-current values, which may differ from the fair values as of May 3, 2014 shown above. | ||||||||||||
Our foreign exchange forward contracts are subject to master netting arrangements with each of our counterparties and such arrangements are enforceable in the event of default or early termination of the contract. We do not elect to offset the fair values of our derivative financial instruments in the Condensed Consolidated Balance Sheets, and as such, the fair values shown above represent gross amounts. The amounts subject to enforceable master netting arrangements are $1 million, $1 million, and $4 million as of May 3, 2014, February 1, 2014, and May 4, 2013, respectively. If we did elect to offset, the net amounts of our derivative financial instruments in an asset position would be $43 million, $63 million, and $65 million and the net amounts of the derivative financial instruments in a liability position would be $21 million, $14 million, and $5 million as of May 3, 2014, February 1, 2014, and May 4, 2013, respectively. | ||||||||||||
See Note 5 of Notes to Condensed Consolidated Financial Statements for disclosures on the fair value measurements of our derivative financial instruments. | ||||||||||||
The effective portion of gains and losses on foreign exchange forward contracts in cash flow hedging and net investment hedging relationships recorded in other comprehensive income and the Condensed Consolidated Statements of Income, on a pre-tax basis, are as follows: | ||||||||||||
13 Weeks Ended | ||||||||||||
($ in millions) | May 3, | May 4, | ||||||||||
2014 | 2013 | |||||||||||
Derivatives in cash flow hedging relationships: | ||||||||||||
Gain (loss) recognized in other comprehensive income | $ | (15 | ) | $ | 36 | |||||||
Gain reclassified into cost of goods sold and occupancy expenses | $ | 7 | $ | 12 | ||||||||
Gain reclassified into operating expenses | $ | 1 | $ | 2 | ||||||||
Derivatives in net investment hedging relationships: | ||||||||||||
Gain (loss) recognized in other comprehensive income | $ | (1 | ) | $ | 1 | |||||||
For the thirteen weeks ended May 3, 2014 and May 4, 2013, there were no amounts of gain or loss reclassified from accumulated other comprehensive income into income for derivative financial instruments in net investment hedging relationships, as we did not sell or liquidate (or substantially liquidate) any of our hedged subsidiaries during the periods. | ||||||||||||
There were no material gains or losses on foreign exchange forward contracts not designated as hedging instruments that were recorded in operating expenses in the Condensed Consolidated Statements of Income, on a pre-tax basis for the thirteen weeks ended May 3, 2014 and May 4, 2013. |
Share_Repurchases
Share Repurchases | 3 Months Ended | |||||||
3-May-14 | ||||||||
Disclosure Share Repurchase Activity [Abstract] | ' | |||||||
Share Repurchases | ' | |||||||
Share Repurchases | ||||||||
Share repurchase activity is as follows: | ||||||||
13 Weeks Ended | ||||||||
($ and shares in millions except average per share cost) | May 3, | May 4, | ||||||
2014 | 2013 | |||||||
Number of shares repurchased | 5.6 | 1.7 | ||||||
Total cost | $ | 219 | $ | 58 | ||||
Average per share cost including commissions | $ | 39.25 | $ | 34.27 | ||||
In January 2013, the Board of Directors authorized $1 billion for share repurchases, all of which was completed by the end of January 2014. In November 2013, we announced that the Board of Directors approved a new $1 billion share repurchase authorization, of which $747 million was remaining as of May 3, 2014. | ||||||||
All except $19 million and $30 million of total share repurchases were paid for as of May 3, 2014 and February 1, 2014, respectively. All of the share repurchases were paid for as of May 4, 2013. | ||||||||
As of March 1, 2014, the Company retired all existing treasury stock. Upon retirement, the treasury stock balance was reduced for the amount originally recorded for the shares repurchased. Common stock was also reduced, at par, for the shares repurchased, and the remaining balance was allocated between additional paid-in capital and retained earnings, resulting in additional paid-in capital and treasury stock balances of zero as of May 3, 2014. All common stock repurchased subsequent to March 1, 2014 is immediately retired and all shares related to stock options and other stock awards are issued from authorized but unissued common stock. |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | |||||||
3-May-14 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Share-Based Compensation | ' | |||||||
Share-Based Compensation | ||||||||
Share-based compensation expense recognized in the Condensed Consolidated Statements of Income, primarily in operating expenses, is as follows: | ||||||||
13 Weeks Ended | ||||||||
($ in millions) | May 3, | May 4, | ||||||
2014 | 2013 | |||||||
Stock units | $ | 22 | $ | 27 | ||||
Stock options | 2 | 3 | ||||||
Employee stock purchase plan | 1 | 1 | ||||||
Share-based compensation expense | 25 | 31 | ||||||
Less: Income tax benefit | (10 | ) | (12 | ) | ||||
Share-based compensation expense, net of tax | $ | 15 | $ | 19 | ||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | |||||||||||
3-May-14 | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||
Accumulated Other Comprehensive Income | ' | |||||||||||
Accumulated Other Comprehensive Income | ||||||||||||
Changes in accumulated other comprehensive income by component, net of tax, are as follows: | ||||||||||||
($ in millions) | Foreign Currency Translation | Cash Flow Hedges | Total | |||||||||
Balance at February 1, 2014 | $ | 107 | $ | 28 | $ | 135 | ||||||
Foreign currency translation | 11 | — | 11 | |||||||||
Change in fair value of derivative financial instruments | — | (11 | ) | (11 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | — | (5 | ) | (5 | ) | |||||||
Other comprehensive income (loss), net | 11 | (16 | ) | (5 | ) | |||||||
Balance at May 3, 2014 | $ | 118 | $ | 12 | $ | 130 | ||||||
($ in millions) | Foreign Currency Translation | Cash Flow Hedges | Total | |||||||||
Balance at February 2, 2013 | $ | 158 | $ | 23 | $ | 181 | ||||||
Foreign currency translation | (28 | ) | — | (28 | ) | |||||||
Change in fair value of derivative financial instruments | — | 22 | 22 | |||||||||
Amounts reclassified from accumulated other comprehensive income | — | (8 | ) | (8 | ) | |||||||
Other comprehensive income (loss), net | (28 | ) | 14 | (14 | ) | |||||||
Balance at May 4, 2013 | $ | 130 | $ | 37 | $ | 167 | ||||||
See Note 6 of Notes to Condensed Consolidated Financial Statements for additional disclosures about reclassifications out of accumulated other comprehensive income and their corresponding effects on the respective line items in the Condensed Consolidated Statements of Income. |
Income_Taxes
Income Taxes | 3 Months Ended |
3-May-14 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
Effective February 2, 2014, we adopted Accounting Standards Update No. 2013-11, Income Taxes, which clarifies the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This adoption did not have a material impact on our Condensed Consolidated Financial Statements. | |
The Company conducts business globally, and as a result, files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world, including such major jurisdictions as the United States, Canada, France, China, Hong Kong, Japan, India, and the United Kingdom. We are no longer subject to U.S. federal income tax examinations for fiscal years before 2009, and with few exceptions, we are also no longer subject to U.S. state, local, or non-U.S. income tax examinations for fiscal years before 2008. | |
The Company engages in continual discussions with taxing authorities regarding tax matters in the various U.S. and foreign jurisdictions. As of May 3, 2014, it is reasonably possible that we will recognize a decrease in gross unrecognized tax benefits within the next 12 months of approximately $20 million, primarily due to the potential settlement of outstanding tax matters and the closing of audits. If we do recognize such a decrease, the net impact on the Condensed Consolidated Statement of Income would not be material. | |
During the thirteen weeks ended May 4, 2013, we recognized an interest expense reversal of $18 million as a result of the favorable resolution of tax matters. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||
3-May-14 | ||||||
Earnings Per Share [Abstract] | ' | |||||
Earnings Per Share | ' | |||||
Earnings Per Share | ||||||
Weighted-average number of shares used for earnings per share is as follows: | ||||||
13 Weeks Ended | ||||||
(shares in millions) | May 3, | May 4, | ||||
2014 | 2013 | |||||
Weighted-average number of shares - basic | 445 | 464 | ||||
Common stock equivalents | 6 | 7 | ||||
Weighted-average number of shares - diluted | 451 | 471 | ||||
The above computations of weighted-average number of shares – diluted exclude 2 million and 1 million shares related to stock options and other stock awards for the thirteen weeks ended May 3, 2014 and May 4, 2013, respectively, as their inclusion would have an anti-dilutive effect on earnings per share. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
3-May-14 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
We are a party to a variety of contractual agreements under which we may be obligated to indemnify the other party for certain matters. These contracts primarily relate to our commercial contracts, operating leases, trademarks, intellectual property, financial agreements, and various other agreements. Under these contracts, we may provide certain routine indemnifications relating to representations and warranties (e.g., ownership of assets, environmental or tax indemnifications) or personal injury matters. The terms of these indemnifications range in duration and may not be explicitly defined. Generally, the maximum obligation under such indemnifications is not explicitly stated, and as a result, the overall amount of these obligations cannot be reasonably estimated. Historically, we have not made significant payments for these indemnifications. We believe that if we were to incur a loss in any of these matters, the loss would not have a material effect on our Condensed Consolidated Financial Statements taken as a whole. | |
As a multinational company, we are subject to various proceedings, lawsuits, disputes, and claims (“Actions”) arising in the ordinary course of our business. Many of these Actions raise complex factual and legal issues and are subject to uncertainties. As of May 3, 2014, Actions filed against us included commercial, intellectual property, customer, employment, and data privacy claims, including class action lawsuits. The plaintiffs in some Actions seek unspecified damages or injunctive relief, or both. Actions are in various procedural stages and some are covered in part by insurance. As of May 3, 2014, February 1, 2014, and May 4, 2013, we recorded a liability for an estimated loss if the outcome of an Action is expected to result in a loss that is considered probable and reasonably estimable. The liability recorded as of May 3, 2014, February 1, 2014, and May 4, 2013 was not material for any individual Action or in total. Subsequent to May 3, 2014 and through the filing date of this Quarterly Report on Form 10-Q, no information has become available that indicates a material change to our estimate is required. | |
We cannot predict with assurance the outcome of Actions brought against us. Accordingly, developments, settlements, or resolutions may occur and impact income in the quarter of such development, settlement, or resolution. However, we do not believe that the outcome of any current Action would have a material effect on our Condensed Consolidated Financial Statements taken as a whole. |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||||||||||
3-May-14 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Segment Information | ' | |||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||
The Gap, Inc. is a global retailer that sells apparel, accessories, and personal care products under the Gap, Old Navy, Banana Republic, Piperlime, Athleta, and Intermix brands. We identify our operating segments according to how our business activities are managed and evaluated. Our operating segments include Gap Global, Old Navy Global, Banana Republic Global, and Growth, Innovation, and Digital (“GID”). GID manages our newer brands, Piperlime, Athleta, and Intermix. We believe each of our operating segments share similar economic and other qualitative characteristics, and have aggregated the results of our operating segments into one reportable segment. | ||||||||||||||||||||||||
Net sales by brand and region are as follows: | ||||||||||||||||||||||||
($ in millions) | Gap Global | Old Navy Global | Banana | Other (2) | Total | Percentage of Net Sales | ||||||||||||||||||
13 Weeks Ended May 3, 2014 | Republic Global | |||||||||||||||||||||||
U.S. (1) | $ | 828 | $ | 1,352 | $ | 548 | $ | 182 | $ | 2,910 | 77 | % | ||||||||||||
Canada | 80 | 101 | 53 | 1 | 235 | 6 | ||||||||||||||||||
Europe | 201 | — | 23 | — | 224 | 6 | ||||||||||||||||||
Asia | 286 | 28 | 37 | — | 351 | 10 | ||||||||||||||||||
Other regions | 46 | — | 8 | — | 54 | 1 | ||||||||||||||||||
Total | $ | 1,441 | $ | 1,481 | $ | 669 | $ | 183 | $ | 3,774 | 100 | % | ||||||||||||
Sales growth (decline) | (2 | )% | 2 | % | 2 | % | 24 | % | 1 | % | ||||||||||||||
($ in millions) | Gap Global | Old Navy Global | Banana | Other (2) | Total | Percentage of Net Sales | ||||||||||||||||||
13 Weeks Ended May 4, 2013 | Republic Global | |||||||||||||||||||||||
U.S. (1) | $ | 896 | $ | 1,344 | $ | 544 | $ | 147 | $ | 2,931 | 79 | % | ||||||||||||
Canada | 86 | 105 | 53 | 1 | 245 | 7 | ||||||||||||||||||
Europe | 180 | — | 18 | — | 198 | 5 | ||||||||||||||||||
Asia | 266 | 10 | 37 | — | 313 | 8 | ||||||||||||||||||
Other regions | 36 | — | 6 | — | 42 | 1 | ||||||||||||||||||
Total | $ | 1,464 | $ | 1,459 | $ | 658 | $ | 148 | $ | 3,729 | 100 | % | ||||||||||||
Sales growth | 6 | % | 6 | % | 4 | % | 66 | % | 7 | % | ||||||||||||||
__________ | ||||||||||||||||||||||||
-1 | U.S. includes the United States, Puerto Rico, and Guam. | |||||||||||||||||||||||
-2 | Includes Piperlime, Athleta, and Intermix. | |||||||||||||||||||||||
Online and franchise sales are reflected within the respective results of each brand and region in the net sales above. Total online sales were $575 million and $509 million for the thirteen weeks ended May 3, 2014 and May 4, 2013, respectively, and total franchise sales were $98 million and $78 million for the thirteen weeks ended May 3, 2014 and May 4, 2013, respectively. |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | |||||||||||
3-May-14 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Goodwill and Intangible Assets | ' | |||||||||||
Goodwill and intangible assets consist of the following and are included in other long-term assets in the Condensed Consolidated Balance Sheets: | ||||||||||||
($ in millions) | May 3, | February 1, | May 4, | |||||||||
2014 | 2014 | 2013 | ||||||||||
Goodwill | $ | 180 | $ | 180 | $ | 181 | ||||||
Trade names | $ | 92 | $ | 92 | $ | 92 | ||||||
Other indefinite-lived intangible assets | $ | 6 | $ | 6 | $ | 6 | ||||||
Intangible assets subject to amortization | $ | 18 | $ | 18 | $ | 18 | ||||||
Less: Accumulated amortization | (17 | ) | (17 | ) | (16 | ) | ||||||
Intangible assets subject to amortization, net | $ | 1 | $ | 1 | $ | 2 | ||||||
Debt_and_Credit_Facilities_Lon
Debt and Credit Facilities Long Term Debt (Tables) | 3 Months Ended | |||||||||||
3-May-14 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Long Term Debt | ' | |||||||||||
($ in millions) | May 3, | February 1, | May 4, | |||||||||
2014 | 2014 | 2013 | ||||||||||
Notes | $ | 1,247 | $ | 1,247 | $ | 1,247 | ||||||
Japan Term Loan | 146 | 147 | — | |||||||||
Total long-term debt | 1,393 | 1,394 | 1,247 | |||||||||
Less: Current portion | (24 | ) | (25 | ) | — | |||||||
Total long-term debt, less current portion | $ | 1,369 | $ | 1,369 | $ | 1,247 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
3-May-14 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Financial Assets And Liabilities Measured At Fair Value On Recurring Basis | ' | |||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis and cash equivalents are as follows: | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
($ in millions) | May 3, 2014 | Quoted Prices in | Significant Other | Significant | ||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 452 | $ | 147 | $ | 305 | $ | — | ||||||||
Derivative financial instruments | 44 | — | 44 | — | ||||||||||||
Deferred compensation plan assets | 42 | 42 | — | — | ||||||||||||
Total | $ | 538 | $ | 189 | $ | 349 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Derivative financial instruments | $ | 22 | $ | — | $ | 22 | $ | — | ||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
($ in millions) | 1-Feb-14 | Quoted Prices in | Significant Other | Significant | ||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 519 | $ | 196 | $ | 323 | $ | — | ||||||||
Derivative financial instruments | 64 | — | 64 | — | ||||||||||||
Deferred compensation plan assets | 37 | 37 | — | — | ||||||||||||
Total | $ | 620 | $ | 233 | $ | 387 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Derivative financial instruments | $ | 15 | $ | — | $ | 15 | $ | — | ||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
($ in millions) | May 4, 2013 | Quoted Prices in | Significant Other | Significant | ||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents | $ | 772 | $ | 497 | $ | 275 | $ | — | ||||||||
Derivative financial instruments | 69 | — | 69 | — | ||||||||||||
Deferred compensation plan assets | 34 | 34 | — | — | ||||||||||||
Total | $ | 875 | $ | 531 | $ | 344 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Derivative financial instruments | $ | 9 | $ | — | $ | 9 | $ | — | ||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | |||||||||||
3-May-14 | ||||||||||||
Derivative [Line Items] | ' | |||||||||||
Foreign Exchange Forward Contracts Outstanding | ' | |||||||||||
We had foreign exchange forward contracts outstanding in the following notional amounts: | ||||||||||||
(notional amounts in millions) | May 3, | February 1, | May 4, | |||||||||
2014 | 2014 | 2013 | ||||||||||
U.S. dollars (1) | $ | 1,583 | $ | 1,309 | $ | 1,284 | ||||||
Canadian dollars | C$ | 8 | C$ | 8 | C$ | — | ||||||
Euro | € | 26 | € | 25 | € | 26 | ||||||
Japanese yen | ¥ | — | ¥ | — | ¥ | 2,275 | ||||||
__________ | ||||||||||||
-1 | The principal currencies hedged against changes in the U.S. dollar were British pounds, Canadian dollars, Euro, and Japanese yen. | |||||||||||
Fair Values of Asset and Liability Derivative Financial Instruments | ' | |||||||||||
The fair values of foreign exchange forward contracts are as follows: | ||||||||||||
($ in millions) | May 3, | February 1, | May 4, | |||||||||
2014 | 2014 | 2013 | ||||||||||
Derivatives designated as cash flow hedges: | ||||||||||||
Other current assets | $ | 37 | $ | 48 | $ | 51 | ||||||
Other long-term assets | $ | 4 | $ | 6 | $ | 11 | ||||||
Accrued expenses and other current liabilities | $ | 16 | $ | 13 | $ | 5 | ||||||
Lease incentives and other long-term liabilities | $ | 4 | $ | 1 | $ | 2 | ||||||
Derivatives designated as net investment hedges: | ||||||||||||
Other current assets | $ | — | $ | 1 | $ | 1 | ||||||
Other long-term assets | $ | — | $ | — | $ | — | ||||||
Accrued expenses and other current liabilities | $ | — | $ | — | $ | — | ||||||
Lease incentives and other long-term liabilities | $ | — | $ | — | $ | — | ||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Other current assets | $ | 3 | $ | 9 | $ | 6 | ||||||
Other long-term assets | $ | — | $ | — | $ | — | ||||||
Accrued expenses and other current liabilities | $ | 2 | $ | 1 | $ | 2 | ||||||
Lease incentives and other long-term liabilities | $ | — | $ | — | $ | — | ||||||
Total derivatives in an asset position | $ | 44 | $ | 64 | $ | 69 | ||||||
Total derivatives in a liability position | $ | 22 | $ | 15 | $ | 9 | ||||||
Effects of Derivative Financial Instruments on OCI and Condensed Consolidated Statements of Income | ' | |||||||||||
The effective portion of gains and losses on foreign exchange forward contracts in cash flow hedging and net investment hedging relationships recorded in other comprehensive income and the Condensed Consolidated Statements of Income, on a pre-tax basis, are as follows: | ||||||||||||
13 Weeks Ended | ||||||||||||
($ in millions) | May 3, | May 4, | ||||||||||
2014 | 2013 | |||||||||||
Derivatives in cash flow hedging relationships: | ||||||||||||
Gain (loss) recognized in other comprehensive income | $ | (15 | ) | $ | 36 | |||||||
Gain reclassified into cost of goods sold and occupancy expenses | $ | 7 | $ | 12 | ||||||||
Gain reclassified into operating expenses | $ | 1 | $ | 2 | ||||||||
Derivatives in net investment hedging relationships: | ||||||||||||
Gain (loss) recognized in other comprehensive income | $ | (1 | ) | $ | 1 | |||||||
Share_Repurchases_Tables
Share Repurchases (Tables) | 3 Months Ended | |||||||
3-May-14 | ||||||||
Disclosure Share Repurchase Activity [Abstract] | ' | |||||||
Share Repurchase Activity | ' | |||||||
Share repurchase activity is as follows: | ||||||||
13 Weeks Ended | ||||||||
($ and shares in millions except average per share cost) | May 3, | May 4, | ||||||
2014 | 2013 | |||||||
Number of shares repurchased | 5.6 | 1.7 | ||||||
Total cost | $ | 219 | $ | 58 | ||||
Average per share cost including commissions | $ | 39.25 | $ | 34.27 | ||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | |||||||
3-May-14 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Share-Based Compensation Expense | ' | |||||||
Share-based compensation expense recognized in the Condensed Consolidated Statements of Income, primarily in operating expenses, is as follows: | ||||||||
13 Weeks Ended | ||||||||
($ in millions) | May 3, | May 4, | ||||||
2014 | 2013 | |||||||
Stock units | $ | 22 | $ | 27 | ||||
Stock options | 2 | 3 | ||||||
Employee stock purchase plan | 1 | 1 | ||||||
Share-based compensation expense | 25 | 31 | ||||||
Less: Income tax benefit | (10 | ) | (12 | ) | ||||
Share-based compensation expense, net of tax | $ | 15 | $ | 19 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||||||||||
3-May-14 | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||
Changes in Accumulated Other Comprehensive Income by Component | ' | |||||||||||
Changes in accumulated other comprehensive income by component, net of tax, are as follows: | ||||||||||||
($ in millions) | Foreign Currency Translation | Cash Flow Hedges | Total | |||||||||
Balance at February 1, 2014 | $ | 107 | $ | 28 | $ | 135 | ||||||
Foreign currency translation | 11 | — | 11 | |||||||||
Change in fair value of derivative financial instruments | — | (11 | ) | (11 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | — | (5 | ) | (5 | ) | |||||||
Other comprehensive income (loss), net | 11 | (16 | ) | (5 | ) | |||||||
Balance at May 3, 2014 | $ | 118 | $ | 12 | $ | 130 | ||||||
($ in millions) | Foreign Currency Translation | Cash Flow Hedges | Total | |||||||||
Balance at February 2, 2013 | $ | 158 | $ | 23 | $ | 181 | ||||||
Foreign currency translation | (28 | ) | — | (28 | ) | |||||||
Change in fair value of derivative financial instruments | — | 22 | 22 | |||||||||
Amounts reclassified from accumulated other comprehensive income | — | (8 | ) | (8 | ) | |||||||
Other comprehensive income (loss), net | (28 | ) | 14 | (14 | ) | |||||||
Balance at May 4, 2013 | $ | 130 | $ | 37 | $ | 167 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||
3-May-14 | ||||||
Earnings Per Share [Abstract] | ' | |||||
Weighted-Average Number of Shares | ' | |||||
Weighted-average number of shares used for earnings per share is as follows: | ||||||
13 Weeks Ended | ||||||
(shares in millions) | May 3, | May 4, | ||||
2014 | 2013 | |||||
Weighted-average number of shares - basic | 445 | 464 | ||||
Common stock equivalents | 6 | 7 | ||||
Weighted-average number of shares - diluted | 451 | 471 | ||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||||||||||
3-May-14 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Net Sales by Brand and Region | ' | |||||||||||||||||||||||
($ in millions) | Gap Global | Old Navy Global | Banana | Other (2) | Total | Percentage of Net Sales | ||||||||||||||||||
13 Weeks Ended May 3, 2014 | Republic Global | |||||||||||||||||||||||
U.S. (1) | $ | 828 | $ | 1,352 | $ | 548 | $ | 182 | $ | 2,910 | 77 | % | ||||||||||||
Canada | 80 | 101 | 53 | 1 | 235 | 6 | ||||||||||||||||||
Europe | 201 | — | 23 | — | 224 | 6 | ||||||||||||||||||
Asia | 286 | 28 | 37 | — | 351 | 10 | ||||||||||||||||||
Other regions | 46 | — | 8 | — | 54 | 1 | ||||||||||||||||||
Total | $ | 1,441 | $ | 1,481 | $ | 669 | $ | 183 | $ | 3,774 | 100 | % | ||||||||||||
Sales growth (decline) | (2 | )% | 2 | % | 2 | % | 24 | % | 1 | % | ||||||||||||||
($ in millions) | Gap Global | Old Navy Global | Banana | Other (2) | Total | Percentage of Net Sales | ||||||||||||||||||
13 Weeks Ended May 4, 2013 | Republic Global | |||||||||||||||||||||||
U.S. (1) | $ | 896 | $ | 1,344 | $ | 544 | $ | 147 | $ | 2,931 | 79 | % | ||||||||||||
Canada | 86 | 105 | 53 | 1 | 245 | 7 | ||||||||||||||||||
Europe | 180 | — | 18 | — | 198 | 5 | ||||||||||||||||||
Asia | 266 | 10 | 37 | — | 313 | 8 | ||||||||||||||||||
Other regions | 36 | — | 6 | — | 42 | 1 | ||||||||||||||||||
Total | $ | 1,464 | $ | 1,459 | $ | 658 | $ | 148 | $ | 3,729 | 100 | % | ||||||||||||
Sales growth | 6 | % | 6 | % | 4 | % | 66 | % | 7 | % | ||||||||||||||
__________ | ||||||||||||||||||||||||
-1 | U.S. includes the United States, Puerto Rico, and Guam. | |||||||||||||||||||||||
-2 | Includes Piperlime, Athleta, and Intermix. |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
In Millions, unless otherwise specified | |||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Goodwill | $180 | $180 | $181 |
Trade name | 92 | 92 | 92 |
Other indefinite-lived intangible assets | 6 | 6 | 6 |
Intangible assets subject to amortization | 18 | 18 | 18 |
Less: Accumulated amortization | -17 | -17 | -16 |
Intangible assets subject to amortization, net | $1 | $1 | $2 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Additional Information (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 | Feb. 01, 2014 |
Business Acquisition [Line Items] | ' | ' | ' |
Goodwill | $180 | $181 | $180 |
Trade name | 92 | 92 | 92 |
Intangible assets subject to amortization | 18 | 18 | 18 |
Amortization of Intangible Assets | 0 | 0 | ' |
Intermix [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Goodwill, Period Increase (Decrease) | 0 | -3 | ' |
Goodwill | 81 | 82 | 81 |
Trade name | 38 | 38 | 38 |
Intangible assets subject to amortization | 3 | ' | ' |
Athleta [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Goodwill, Period Increase (Decrease) | 0 | 0 | ' |
Goodwill | 99 | 99 | ' |
Trade name | 54 | 54 | 54 |
Intangible assets subject to amortization | $15 | ' | ' |
Intermix - Customer Relationships Intangible Assets [Member] | Intermix [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '4 years | ' | ' |
Debt_and_Credit_Facilities_Lon1
Debt and Credit Facilities Long Term Debt (Details) (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
In Millions, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | ' |
Notes | $1,247 | $1,247 | $1,247 |
Japan Term Loan | 146 | 147 | 0 |
Total long-term debt | 1,393 | 1,394 | 1,247 |
Less: Current portion | -24 | -25 | 0 |
Total long-term debt, less current portion | $1,369 | $1,369 | $1,247 |
Debt_and_Credit_Facilities_Add
Debt and Credit Facilities - Additional Information (Details) | 3-May-14 | 3-May-14 | 3-May-14 | Feb. 01, 2014 | 4-May-13 | 3-May-14 | 3-May-14 | Feb. 01, 2014 | 3-May-14 | 3-May-14 | 3-May-14 | 3-May-14 |
Agreement | Letter of Credit [Member] | 5.95 Percent Notes Due April 2021 | 5.95 Percent Notes Due April 2021 | 5.95 Percent Notes Due April 2021 | Japan Term Loan [Member] | Japan Term Loan [Member] | Japan Term Loan [Member] | China Facilities | China Facilities | Amended Five-Year Unsecured Revolving Credit Facility [Member] | Standby Letters of Credit [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | JPY (¥) | USD ($) | USD ($) | CNY | USD ($) | USD ($) | ||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount of notes issued | ' | ' | $1,250,000,000 | ' | ' | $146,000,000 | ¥ 15,000,000,000 | ' | ' | ' | ' | ' |
Notes, interest rate | ' | ' | 5.95% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes, maturity date | ' | ' | 12-Apr-21 | ' | ' | 15-Jan-18 | 15-Jan-18 | ' | ' | ' | ' | ' |
Estimated fair value | ' | ' | 1,420,000,000 | 1,390,000,000 | 1,460,000,000 | 146,000,000 | ' | 147,000,000 | ' | ' | ' | ' |
Debt instrument maturity term, years | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' |
Maximum borrowing capacity | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | 40,000,000 | 250,000,000 | 500,000,000 | ' |
Expiration date | ' | 30-Sep-16 | ' | ' | ' | ' | ' | ' | ' | ' | 1-May-18 | ' |
Unsecured committed letter of credit amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 25,000,000 |
Borrowings | ' | 0 | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | ' |
Bank guarantees related to store leases | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | 44,000,000 | ' | ' |
Number of Agreements Related to China Credit Facilities | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Date of First Required Payment | ' | ' | ' | ' | ' | 15-Jan-15 | 15-Jan-15 | ' | ' | ' | ' | ' |
Debt Instrument, Annual Principal Payment | ' | ' | ' | ' | ' | 24,000,000 | 2,500,000,000 | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Three | ' | ' | ' | ' | ' | ' | ¥ 7,500,000,000 | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Financ
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
In Millions, unless otherwise specified | |||
Assets: | ' | ' | ' |
Cash equivalents | $452 | $519 | $772 |
Derivative financial instruments | 44 | 64 | 69 |
Deferred compensation plan assets | 42 | 37 | 34 |
Total | 538 | 620 | 875 |
Liabilities: | ' | ' | ' |
Derivative financial instruments | 22 | 15 | 9 |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Cash equivalents | 147 | 196 | 497 |
Derivative financial instruments | 0 | 0 | 0 |
Deferred compensation plan assets | 42 | 37 | 34 |
Total | 189 | 233 | 531 |
Liabilities: | ' | ' | ' |
Derivative financial instruments | 0 | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Cash equivalents | 305 | 323 | 275 |
Derivative financial instruments | 44 | 64 | 69 |
Deferred compensation plan assets | 0 | 0 | 0 |
Total | 349 | 387 | 344 |
Liabilities: | ' | ' | ' |
Derivative financial instruments | 22 | 15 | 9 |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Cash equivalents | 0 | 0 | 0 |
Derivative financial instruments | 0 | 0 | 0 |
Deferred compensation plan assets | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Liabilities: | ' | ' | ' |
Derivative financial instruments | $0 | $0 | $0 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Details) (USD $) | 3 Months Ended | |
3-May-14 | 4-May-13 | |
Fair Value Disclosures [Abstract] | ' | ' |
Purchases, sales, issuances, or settlements related to recurring level 3 measurements | $0 | $0 |
Transfers into or out of level 1 | 0 | 0 |
Transfers into or out of level 2 | 0 | 0 |
Goodwill impairment charges | 0 | 0 |
Other indefinite-lived intangible assets impairment charges | 0 | 0 |
Other long-lived asset impairment charges | $0 | $0 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Foreign Exchange Contracts Outstanding to Sell Various Currencies (Details) | 3-May-14 | 3-May-14 | 3-May-14 | 3-May-14 | Feb. 01, 2014 | Feb. 01, 2014 | Feb. 01, 2014 | Feb. 01, 2014 | 4-May-13 | 4-May-13 | 4-May-13 | 4-May-13 | |||
In Millions, unless otherwise specified | USD ($) | CAD | EUR (€) | JPY (¥) | USD ($) | CAD | EUR (€) | JPY (¥) | USD ($) | CAD | EUR (€) | JPY (¥) | |||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Derivative, Notional Amount | $1,583 | [1] | 8 | € 26 | ¥ 0 | $1,309 | [1] | 8 | € 25 | ¥ 0 | $1,284 | [1] | 0 | € 26 | ¥ 2,275 |
[1] | The principal currencies hedged against changes in the U.S. dollar were British pounds, Canadian dollars, Euro, and Japanese yen. |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Fair Values of Asset and Liability Derivative Financial Instruments (Details) (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
In Millions, unless otherwise specified | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Derivative financial instruments, assets | $44 | $64 | $69 |
Derivative financial instruments, liabilities | 22 | 15 | 9 |
Foreign Exchange Forward Contract | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Derivative financial instruments, assets | 44 | 64 | 69 |
Derivative financial instruments, liabilities | 22 | 15 | 9 |
Derivatives in cash flow hedging relationships | Foreign Exchange Forward Contract | Other Current Assets [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Derivative financial instruments, assets | 37 | 48 | 51 |
Derivatives in cash flow hedging relationships | Foreign Exchange Forward Contract | Other Assets [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Derivative financial instruments, assets | 4 | 6 | 11 |
Derivatives in cash flow hedging relationships | Foreign Exchange Forward Contract | Accrued Liabilities Current [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Derivative financial instruments, liabilities | 16 | 13 | 5 |
Derivatives in cash flow hedging relationships | Foreign Exchange Forward Contract | Lease Incentive And Other Long Term Liabilities [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Derivative financial instruments, liabilities | 4 | 1 | 2 |
Derivatives in net investment hedging relationships | Foreign Exchange Forward Contract | Other Current Assets [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Derivative financial instruments, assets | 0 | 1 | 1 |
Derivatives in net investment hedging relationships | Foreign Exchange Forward Contract | Other Assets [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Derivative financial instruments, assets | 0 | 0 | 0 |
Derivatives in net investment hedging relationships | Foreign Exchange Forward Contract | Accrued Liabilities Current [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Derivative financial instruments, liabilities | 0 | 0 | 0 |
Derivatives in net investment hedging relationships | Foreign Exchange Forward Contract | Lease Incentive And Other Long Term Liabilities [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Derivative financial instruments, liabilities | 0 | 0 | 0 |
Derivatives not designated as hedging instruments | Foreign Exchange Forward Contract | Other Current Assets [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Derivative financial instruments, assets | 3 | 9 | 6 |
Derivatives not designated as hedging instruments | Foreign Exchange Forward Contract | Other Assets [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Derivative financial instruments, assets | 0 | 0 | 0 |
Derivatives not designated as hedging instruments | Foreign Exchange Forward Contract | Accrued Liabilities Current [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Derivative financial instruments, liabilities | 2 | 1 | 2 |
Derivatives not designated as hedging instruments | Foreign Exchange Forward Contract | Lease Incentive And Other Long Term Liabilities [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Derivative financial instruments, liabilities | $0 | $0 | $0 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments - Effects Of Derivative Financial Instruments On OCI And Condensed Consolidated Statements Of Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Derivatives in net investment hedging relationships | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) reclassified from accumulated OCI into income, effective portion, net | $0 | $0 |
Foreign Exchange Forward Contract | Derivatives in cash flow hedging relationships | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivative instruments, gain (loss) recognized in OCI, effective portion, net | -15 | 36 |
Foreign Exchange Forward Contract | Derivatives in net investment hedging relationships | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivative instruments, gain (loss) recognized in OCI, effective portion, net | -1 | 1 |
Foreign Exchange Forward Contract | Cost of Goods Sold and Occupancy Expense | Derivatives in cash flow hedging relationships | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) reclassified from accumulated OCI into income, effective portion, net | 7 | 12 |
Foreign Exchange Forward Contract | Operating Expenses [Member] | Derivatives in cash flow hedging relationships | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) reclassified from accumulated OCI into income, effective portion, net | 1 | 2 |
Foreign Exchange Forward Contract | Operating Expenses [Member] | Derivatives not designated as hedging instruments | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amounts of gain (loss) recognized in income on derivatives | $0 | $0 |
Derivative_Financial_Instrumen5
Derivative Financial Instruments - Additional Information (Details) (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 | 3-May-14 | 4-May-13 | 3-May-14 | 4-May-13 |
In Millions, unless otherwise specified | Derivatives in cash flow hedging relationships | Derivatives in cash flow hedging relationships | Derivatives in net investment hedging relationships | Derivatives in net investment hedging relationships | |||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Amounts recorded as a result of hedge ineffectiveness | ' | ' | ' | $0 | $0 | $0 | $0 |
Amounts recorded in net income as a result of discontinuance of cash flow hedges | ' | ' | ' | 0 | 0 | ' | ' |
Amounts recorded in net income as a result of hedge components excluded from the assessment of cash flow hedge effectiveness | ' | ' | ' | 0 | 0 | ' | ' |
Amounts recorded in net income as a result of discontinuance of net investment hedges | ' | ' | ' | ' | ' | 0 | 0 |
Amounts recorded in net income as a result of hedge components excluded from the assessment of net investment hedge effectiveness | ' | ' | ' | ' | ' | 0 | 0 |
Derivative financial instruments with credit-risk-related contingent features underlying agreements | 0 | 0 | 0 | ' | ' | ' | ' |
Gain or loss reclassified from OCI into income for derivatives in net investment hedging relationships | ' | ' | ' | ' | ' | 0 | 0 |
Derivative liabilities, net of amount subject to master netting arrangement | 21 | 14 | 5 | ' | ' | ' | ' |
Derivative assets, net of amount subject to master netting arrangement | 43 | 63 | 65 | ' | ' | ' | ' |
Amounts Subject to Enforceable Master Netting Arrangements | $1 | $1 | $4 | ' | ' | ' | ' |
Share_Repurchase_Activity_Deta
Share Repurchase Activity (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | 3-May-14 | 4-May-13 |
Disclosure Share Repurchase Activity [Abstract] | ' | ' |
Number of shares repurchased | 5.6 | 1.7 |
Total cost | $219 | $58 |
Average per share cost including commissions (in dollars per share) | $39.25 | $34.27 |
Share_Repurchases_Additional_I
Share Repurchases - Additional Information (Details) (USD $) | 1 Months Ended | 3 Months Ended | |||
Nov. 30, 2013 | Jan. 31, 2013 | 3-May-14 | Feb. 01, 2014 | 4-May-13 | |
Disclosure Share Repurchases Additional Information [Abstract] | ' | ' | ' | ' | ' |
Stock Repurchase Program, Authorized Amount | $1,000,000,000 | $1,000,000,000 | ' | ' | ' |
Share repurchases, remaining amount | ' | ' | 747,000,000 | ' | ' |
Stock Repurchase Program Amount Not Paid | ' | ' | 19,000,000 | 30,000,000 | 0 |
Treasury Stock, Value | ' | ' | 0 | -14,245,000,000 | -13,407,000,000 |
Additional Paid-in Capital | ' | ' | $0 | $2,899,000,000 | $2,824,000,000 |
ShareBased_Compensation_Expens
Share-Based Compensation Expense (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based compensation expense | $25 | $31 |
Less: Income tax benefit | -10 | -12 |
Share-based compensation expense, net of tax | 15 | 19 |
Stock Units | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based compensation expense | 22 | 27 |
Stock Options | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based compensation expense | 2 | 3 |
Employee stock purchase plan | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based compensation expense | $1 | $1 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 | Feb. 01, 2014 | Feb. 02, 2013 |
Foreign currency translation | $11 | ($28) | ' | ' |
Change in fair value of derivative financial instruments | -11 | 22 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | -5 | -8 | ' | ' |
Other comprehensive income (loss), net | -5 | -14 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 130 | 167 | 135 | 181 |
Accumulated Translation Adjustment [Member] | ' | ' | ' | ' |
Foreign currency translation | 11 | -28 | ' | ' |
Change in fair value of derivative financial instruments | 0 | 0 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | ' | ' |
Other comprehensive income (loss), net | 11 | -28 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 118 | 130 | 107 | 158 |
Derivatives in cash flow hedging relationships | ' | ' | ' | ' |
Foreign currency translation | 0 | 0 | ' | ' |
Change in fair value of derivative financial instruments | -11 | 22 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | -5 | -8 | ' | ' |
Other comprehensive income (loss), net | -16 | 14 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $12 | $37 | $28 | $23 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Income Tax Disclosure [Abstract] | ' | ' |
Decrease In Gross Unrecognized Tax Benefits Within The Next 12 Months | $20 | ' |
Benefit To Income Taxes If Decrease In Gross Unrecognized Tax Benefits Within 12 Months Are Recognized | 0 | ' |
Interest Expense Reversed | ' | $18 |
Earnings_Per_Share_Weighted_Av
Earnings Per Share - Weighted Average Number of Shares (Details) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Earnings Per Share [Abstract] | ' | ' |
Weighted-average number of shares - basic (in shares) | 445 | 464 |
Common stock equivalents (in shares) | 6 | 7 |
Weighted-average number of shares - diluted (in shares) | 451 | 471 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Details) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Earnings Per Share [Abstract] | ' | ' |
Shares excluded from the computations of weighted-average number of shares - diluted | 2 | 1 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
In Millions, unless otherwise specified | |||
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Loss Contingency, Estimate of Possible Loss Related to Actions | $0 | $0 | $0 |
Segment_Information_Additional
Segment Information - Additional Information (Details) | 3 Months Ended |
3-May-14 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of reportable segments (in segments) | 1 |
Segment_Information_Net_Sales_
Segment Information - Net Sales by Brand and Region (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | $3,774 | $3,729 | ||
Percentage of Net Sales | 100.00% | 100.00% | ||
Sales growth (decline) | 1.00% | 7.00% | ||
Franchise | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 98 | 78 | ||
Online [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 575 | 509 | ||
U.S. | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 2,910 | [1] | 2,931 | [1] |
Percentage of Net Sales | 77.00% | [1] | 79.00% | [1] |
Canada | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 235 | 245 | ||
Percentage of Net Sales | 6.00% | 7.00% | ||
Europe | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 224 | 198 | ||
Percentage of Net Sales | 6.00% | 5.00% | ||
Asia | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 351 | 313 | ||
Percentage of Net Sales | 10.00% | 8.00% | ||
Other Regions | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 54 | 42 | ||
Percentage of Net Sales | 1.00% | 1.00% | ||
Gap | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 1,441 | 1,464 | ||
Sales growth (decline) | -2.00% | 6.00% | ||
Gap | U.S. | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 828 | [1] | 896 | [1] |
Gap | Canada | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 80 | 86 | ||
Gap | Europe | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 201 | 180 | ||
Gap | Asia | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 286 | 266 | ||
Gap | Other Regions | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 46 | 36 | ||
Old Navy | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 1,481 | 1,459 | ||
Sales growth (decline) | 2.00% | 6.00% | ||
Old Navy | U.S. | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 1,352 | [1] | 1,344 | [1] |
Old Navy | Canada | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 101 | 105 | ||
Old Navy | Europe | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 0 | 0 | ||
Old Navy | Asia | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 28 | 10 | ||
Old Navy | Other Regions | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 0 | 0 | ||
Banana Republic | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 669 | 658 | ||
Sales growth (decline) | 2.00% | 4.00% | ||
Banana Republic | U.S. | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 548 | [1] | 544 | [1] |
Banana Republic | Canada | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 53 | 53 | ||
Banana Republic | Europe | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 23 | 18 | ||
Banana Republic | Asia | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 37 | 37 | ||
Banana Republic | Other Regions | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 8 | 6 | ||
Other | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 183 | [2] | 148 | [2] |
Sales growth (decline) | 24.00% | [2] | 66.00% | [2] |
Other | U.S. | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 182 | [1],[2] | 147 | [1],[2] |
Other | Canada | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 1 | [2] | 1 | [2] |
Other | Europe | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 0 | [2] | 0 | [2] |
Other | Asia | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 0 | [2] | 0 | [2] |
Other | Other Regions | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | $0 | [2] | $0 | [2] |
[1] | U.S. includes the United States, Puerto Rico, and Guam. | |||
[2] | Includes Piperlime, Athleta, and Intermix. |