Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 30, 2016 | Aug. 26, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | GPS | |
Entity Registrant Name | GAP INC | |
Entity Central Index Key | 39,911 | |
Current Fiscal Year End Date | --01-28 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 398,477,051 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jul. 30, 2016 | Jan. 30, 2016 | Aug. 01, 2015 |
Current assets: | |||
Cash and cash equivalents | $ 1,681 | $ 1,370 | $ 1,043 |
Merchandise inventory | 1,951 | 1,873 | 2,005 |
Other current assets | 669 | 742 | 899 |
Total current assets | 4,301 | 3,985 | 3,947 |
Property and equipment, net of accumulated depreciation of $5,903, $5,644, and $5,671 | 2,755 | 2,850 | 2,740 |
Other long-term assets | 681 | 638 | 600 |
Total assets | 7,737 | 7,473 | 7,287 |
Current liabilities: | |||
Current maturities of debt | 424 | 421 | 20 |
Accounts payable | 1,224 | 1,112 | 1,206 |
Accrued expenses and other current liabilities | 1,063 | 979 | 954 |
Income taxes payable | 70 | 23 | 4 |
Total current liabilities | 2,781 | 2,535 | 2,184 |
Long-term liabilities: | |||
Total long-term debt, less current portion | 1,321 | 1,310 | 1,328 |
Lease incentives and other long-term liabilities | 1,076 | 1,083 | 1,104 |
Total long-term liabilities | 2,397 | 2,393 | 2,432 |
Commitments and contingencies (see Note 12) | |||
Stockholders' equity: | |||
Authorized 2,300 shares for all periods presented; Issued and Outstanding 398, 397, and 410 shares | 20 | 20 | 20 |
Additional Paid in Capital | 31 | 0 | 0 |
Retained earnings | 2,509 | 2,440 | 2,507 |
Amounts reclassified from accumulated other comprehensive income | (1) | 85 | 144 |
Total stockholders' equity | 2,559 | 2,545 | 2,671 |
Total liabilities and stockholders' equity | $ 7,737 | $ 7,473 | $ 7,287 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Jul. 30, 2016 | Jan. 30, 2016 | Aug. 01, 2015 |
Property and equipment, accumulated depreciation | $ 5,903 | $ 5,644 | $ 5,671 |
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) | 398 | 397 | 410 |
Common stock, shares outstanding (in shares) | 398 | 397 | 410 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Net sales | $ 3,851 | $ 3,898 | $ 7,289 | $ 7,555 |
Cost of goods sold and occupancy expenses | 2,414 | 2,440 | 4,643 | 4,715 |
Gross profit | 1,437 | 1,458 | 2,646 | 2,840 |
Operating expenses | 1,158 | 1,089 | 2,145 | 2,085 |
Operating income | 279 | 369 | 501 | 755 |
Interest expense | 18 | 17 | 37 | 22 |
Interest income | (2) | (1) | (3) | (2) |
Income before income taxes | 263 | 353 | 467 | 735 |
Income taxes | 138 | 134 | 215 | 277 |
Net income | $ 125 | $ 219 | $ 252 | $ 458 |
Weighted-average number of shares - basic (in shares) | 398 | 417 | 398 | 419 |
Weighted-average number of shares - diluted (in shares) | 399 | 418 | 399 | 421 |
Earnings per share - basic (in dollars per share) | $ 0.31 | $ 0.53 | $ 0.63 | $ 1.09 |
Earnings per share - diluted (in dollars per share) | 0.31 | 0.52 | 0.63 | 1.09 |
Cash dividends declared and paid per share (in dollars per share) | $ 0.23 | $ 0.23 | $ 0.46 | $ 0.46 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Net income | $ 125 | $ 219 | $ 252 | $ 458 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation | (22) | (13) | 9 | (7) |
Change in fair value of derivative financial instruments, net of tax (tax benefit) of $27, $17 , $(9) and $13 | (7) | 36 | (96) | 26 |
Reclassification adjustment for (gains) or losses on derivative financial instruments, net of tax of $(2), $(8), $(6) and $(17) | 8 | (19) | 1 | (40) |
Other comprehensive income (loss), net of tax | (21) | 4 | (86) | (21) |
Comprehensive income | $ 104 | $ 223 | $ 166 | $ 437 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Change in fair value of derivative financial instruments, tax (tax benefit) | $ 27 | $ 17 | $ (9) | $ 13 |
Reclassification adjustment for (gains) losses on derivative financial instruments, tax | $ (2) | $ (8) | $ (6) | $ (17) |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jul. 30, 2016 | Aug. 01, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 252 | $ 458 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 303 | 294 |
Amortization of lease incentives | (31) | (31) |
Share-based compensation | 36 | 43 |
Tax benefit from exercise of stock options and vesting of stock units | (3) | 23 |
Excess tax benefit from exercise of stock options and vesting of stock units | (1) | (24) |
Non-cash and other items | 62 | (12) |
Deferred income taxes | (14) | 2 |
Changes in operating assets and liabilities: | ||
Merchandise inventory | (52) | (124) |
Other current assets and other long-term assets | 31 | 36 |
Accounts payable | 102 | 36 |
Accrued expenses and other current liabilities | (20) | (56) |
Income taxes payable, net of prepaid and other tax-related items | 92 | (16) |
Lease incentives and other long-term liabilities | (23) | 13 |
Net cash provided by operating activities | 734 | 642 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (270) | (301) |
Other | (1) | (1) |
Net cash used for investing activities | (271) | (302) |
Cash flows from financing activities: | ||
Proceeds from issuances under share-based compensation plans | 16 | 53 |
Withholding tax payments related to vesting of stock units | (17) | (68) |
Repurchases of common stock | 0 | (622) |
Excess tax benefit from exercise of stock options and vesting of stock units | 1 | 24 |
Cash dividends paid | (183) | (192) |
Other | 23 | (1) |
Net cash used for financing activities | (160) | (806) |
Effect of foreign exchange rate fluctuations on cash and cash equivalents | 8 | (6) |
Net increase (decrease) in cash and cash equivalents | 311 | (472) |
Cash and cash equivalents at beginning of period | 1,370 | 1,515 |
Cash and cash equivalents at end of period | 1,681 | 1,043 |
Non-cash investing activities: | ||
Purchases of property and equipment not yet paid at end of period | 46 | 70 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest during the period | 41 | 39 |
Cash paid for income taxes during the period, net of refunds | $ 143 | $ 266 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jul. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Condensed Consolidated Balance Sheets as of July 30, 2016 and August 1, 2015 , the Condensed Consolidated Statements of Income and the Condensed Consolidated Statements of Comprehensive Income for the thirteen and twenty-six weeks ended July 30, 2016 and August 1, 2015 , and the Condensed Consolidated Statements of Cash Flows for the twenty-six weeks ended July 30, 2016 and August 1, 2015 have been prepared by The Gap, Inc. (the “Company,” “we,” and “our”). In the opinion of management, such statements include all adjustments (which include normal recurring adjustments) considered necessary to present fairly our financial position, results of operations, and cash flows as of July 30, 2016 and August 1, 2015 and for all periods presented. The Condensed Consolidated Balance Sheet as of January 30, 2016 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, although the Company believes that the disclosures made are adequate to make the information not misleading. 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 January 30, 2016 . The results of operations for the thirteen and twenty-six weeks ended July 30, 2016 are not necessarily indicative of the operating results that may be expected for the 52-week period ending January 28, 2017 . Subsequent Event On August 29, 2016 , a fire caused significant damage to a company-owned distribution center in Fishkill, New York. The full extent of the damage and resulting financial statement impact are not known at the time of this filing. The Company maintains property and business interruption insurance coverage. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jul. 30, 2016 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") 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. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers, Deferral of the Effective Date, which defers the effective date of the new revenue recognition standard by one year. As a result, the ASU No. 2014-09 is effective retrospectively for fiscal years and interim periods within those years beginning after December 15, 2017. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations, which is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, which clarifies the identification of performance obligations and the licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-11, Revenue Recognition and Derivatives and Hedging: Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting, which rescinds SEC paragraphs pursuant to SEC staff announcements. These rescissions include changes to topics pertaining to accounting for shipping and handling fees and costs and accounting for consideration given by a vendor to a customer. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients, which provides clarifying guidance in certain narrow areas and adds some practical expedients. The effective dates for these ASUs are the same as the effective date for ASU No. 2014-09. We are currently assessing the potential impact of these ASUs on our Condensed Consolidated Financial Statements. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes, which changes how deferred taxes are classified on the balance sheet. The ASU eliminates the requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2016. Early adoption is permitted under this ASU. We adopted ASU No. 2015-17 prospectively effective January 30, 2016, which resulted in a reclassification of our net current deferred tax assets to the net noncurrent deferred tax assets in our Consolidated Balance Sheet. No prior periods were retrospectively adjusted. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance is intended to improve the recognition and measurement of financial instruments. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2017. We are currently assessing the potential impact of this ASU on our Condensed Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, Leases. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases (with the exception of short-term leases) at the commencement date. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2018. We are currently assessing the impact of this ASU on our Condensed Consolidated Financial Statements, but expect that it will result in a significant increase in our long-term assets and liabilities. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The amendments are intended to improve the accounting for employee share-based payments and affect all organizations that issue share-based payment awards to their employees. The ASU is effective 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. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. The amendments require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2019. We are currently assessing the potential impact of this ASU on our Condensed Consolidated Financial Statements. |
Store Closing and Other Operati
Store Closing and Other Operating Charges Restructuring (Notes) | 6 Months Ended |
Jul. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Store Closing and Other Operating Charges In May 2016, the Company announced measures to better align talent and financial resources against its most important priorities; these measures include (i) focusing each brand on geographies with the greatest potential and (ii) streamlining the Company’s operating model. The measures will result in the closure of its fleet of 53 Old Navy stores in Japan, the closure of select Banana Republic stores, primarily internationally, and the creation of a more efficient global brand structure. Including the Old Navy closures in Japan, the Company expects to close about 75 stores in total related to these measures in fiscal 2016 . In connection with the decision to close stores and streamline the Company's operations, the Company incurred $150 million in restructuring costs, on a pre-tax basis, during the thirteen weeks ended July 30, 2016 . The summary of the costs incurred during the thirteen weeks ended July 30, 2016 , as well as the Company’s current estimates of the pre-tax amount expected to be incurred during the remainder of fiscal 2016 , are as follows: Costs Incurred Estimated Costs to be Incurred ($ in millions) 13 Weeks Ended July 30, 2016 Remainder of Fiscal 2016 Total Costs recorded in cost of goods sold and occupancy expenses: Accelerated depreciation $ 4 $ 10 - 15 $ 15 - 20 Employee related costs 11 Less than 5 10 - 15 Other — — — Total costs recorded in cost of goods sold and occupancy expenses 15 10 - 20 25 - 35 Costs recorded in operating expenses: Lease termination fees and lease losses 34 50 - 65 85 - 100 Employee related costs 30 15 - 20 45 - 50 Store asset impairment 52 Less than 5 50 - 55 Other 19 5 - 10 25 - 30 Total costs recorded in operating expenses 135 70 - 100 205 - 235 Total restructuring costs $ 150 $ 80 - 120 $ 230 - 270 In addition to the total pre-tax amount estimated above, the Company also expects to incur incremental tax expense related to the restructuring costs and resulting valuation allowances on certain foreign deferred tax assets. The Company’s estimates of future charges associated with the store closures and streamlining of its operating model could change as the Company’s plans evolve and become finalized. The actual amounts will depend on the timing of closures and negotiations on lease termination fees during the remainder of fiscal 2016 . The following table summarizes activity during the thirteen weeks ended July 30, 2016 related to certain restructuring costs that will be settled with cash payments and the related liability balances as of July 30, 2016 . ($ in millions) Lease Termination Fees and Lease Losses Employee Related Costs Other Total Balance at April 30, 2016 $ — $ — $ — $ — Provision 34 41 12 87 Cash payments — — (6 ) (6 ) Balance at July 30, 2016 $ 34 $ 41 $ 6 $ 81 |
Debt and Credit Facilities
Debt and Credit Facilities | 6 Months Ended |
Jul. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | Debt and Credit Facilities Long-term debt consists of the following: ($ in millions) July 30, January 30, August 1, Notes $ 1,248 $ 1,248 $ 1,248 Japan Term Loan 97 83 100 Total long-term debt 1,345 1,331 1,348 Less: Current portion (24 ) (21 ) (20 ) Total long-term debt, less current portion $ 1,321 $ 1,310 $ 1,328 As of July 30, 2016 , January 30, 2016 , and August 1, 2015 , the estimated fair value of our $1.25 billion aggregate principal amount of 5.95 percent notes (the "Notes”) due April 2021 was $1.34 billion , $1.29 billion , and $1.40 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 July 30, 2016 , January 30, 2016 , and August 1, 2015 , the carrying amount of our 15 billion Japanese yen, 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 July 30, 2016 ) are payable on January 15 of each year, and commenced on January 15, 2015 , with a final repayment of 7.5 billion Japanese yen ( $73 million as of July 30, 2016 ) due on January 15, 2018 . Interest is payable at least quarterly based on an interest rate equal to the Tokyo Interbank Offered Rate plus a fixed margin. In October 2015, we entered into a $400 million unsecured term loan (the “Term Loan”). The Term Loan was originally scheduled to mature, and was payable in full, on October 15, 2016 , but had an option to be extended until October 15, 2017 . In August 2016, the Company exercised the option to extend the Term Loan. As of July 30, 2016 , the carrying amount of our $400 million Term Loan approximated its fair value due to the short-term nature of the loan. Interest is payable at least quarterly based on an interest rate equal to the London Interbank Offered Rate plus a fixed margin. The Term Loan is included in current maturities of debt in the Condensed Consolidated Balance Sheet. We have a $500 million , five -year, unsecured revolving credit facility (the “Facility”), which is scheduled to expire in May 2020 . There were no borrowings and no material outstanding standby letters of credit under the Facility as of July 30, 2016 . We maintain multiple agreements with third parties that make unsecured revolving credit facilities available for our operations in foreign locations (the “Foreign Facilities”). These Foreign Facilities are uncommitted and are generally available for borrowings, overdraft borrowings, and the issuance of bank guarantees. The total capacity of the Foreign Facilities was $47 million as of July 30, 2016 . As of July 30, 2016 , there were no borrowings under the Foreign Facilities. There were $13 million in bank guarantees issued and outstanding primarily related to store leases under the Foreign Facilities as of July 30, 2016 . We have bilateral unsecured standby letter of credit agreements that are uncommitted and do not have expiration dates. As of July 30, 2016 , we had $18 million in standby letters of credit issued under these agreements. We also have a $50 million , two -year, unsecured committed letter of credit agreement, which expires in September 2016 . We had no trade letters of credit issued under this letter of credit agreement as of July 30, 2016 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements There were no purchases, sales, issuances, or settlements related to recurring level 3 measurements during the thirteen and twenty-six weeks ended July 30, 2016 or August 1, 2015 . There were no transfers of financial assets or liabilities into or out of level 1 and level 2 during the thirteen and twenty-six weeks ended July 30, 2016 or August 1, 2015 . Financial Assets and Liabilities Financial assets and liabilities measured at fair value on a recurring basis and cash equivalents are as follows: Fair Value Measurements at Reporting Date Using ($ in millions) July 30, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 756 $ 169 $ 587 $ — Derivative financial instruments 52 — 52 — Deferred compensation plan assets 41 41 — — Total $ 849 $ 210 $ 639 $ — Liabilities: Derivative financial instruments $ 83 $ — $ 83 $ — Fair Value Measurements at Reporting Date Using ($ in millions) January 30, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 517 $ 204 $ 313 $ — Derivative financial instruments 93 — 93 — Deferred compensation plan assets 37 37 — — Total $ 647 $ 241 $ 406 $ — Liabilities: Derivative financial instruments $ 3 $ — $ 3 $ — Fair Value Measurements at Reporting Date Using ($ in millions) August 1, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 239 $ 96 $ 143 $ — Derivative financial instruments 141 — 141 — Deferred compensation plan assets 46 46 — — Total $ 426 $ 142 $ 284 $ — Liabilities: Derivative financial instruments $ 8 $ — $ 8 $ — We have highly liquid investments classified as cash equivalents, which are placed primarily in time deposits, money market funds, 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 currencies hedged against changes in the U.S. dollar are Japanese yen, Canadian dollars, British pounds, Euro, Mexican pesos, Hong Kong dollars, Chinese yuan, and Taiwan dollars. 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 and non-employee directors 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 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 or other indefinite-lived intangible assets for the thirteen and twenty-six weeks ended July 30, 2016 or August 1, 2015 . 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. In May 2016, the Company announced measures that will result in the closure of its fleet of 53 Old Navy stores in Japan and select Banana Republic stores, primarily internationally. As a result of the announced measures, we reviewed the global Banana Republic specialty fleet for impairment during the thirteen weeks ended July 30, 2016 . During the thirteen weeks ended July 30, 2016 , we recorded charges for impairment of long-lived assets of $52 million related to the announced store closures, primarily related to Old Navy Japan, and an additional $4 million for long-lived assets that were unrelated to the announced measures. The impairment charges were recorded in operating expenses in the Condensed Consolidated Statements of Income and reduced the then carrying amount of the applicable long-lived assets of $68 million to their fair value of $12 million . In June 2015, the Company announced a series of strategic actions to position Gap brand for improved business performance in the future, including its decision to close about 175 Gap brand specialty stores in North America and a limited number of international stores. As a result of the announced strategic actions, we reviewed the global Gap brand specialty fleet for impairment and recorded a charge for the impairment of long-lived assets of $37 million for the thirteen weeks ended August 1, 2015 , primarily related to Gap brand. The amount was recorded in operating expenses in the Condensed Consolidated Statement of Income and reduced the then carrying amount of the applicable long-lived assets of $43 million to their fair value of $6 million . The fair value of the long-lived assets was d etermined using level 3 inputs and based on discounted future cash flows of the asset or asset group using a discount rate commensurate with the risk. The asset group is defined as the lowest level for which identifiable cash flows are available and largely independent of the cash flows of other groups of assets, which for our retail stores is primarily at the store level. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jul. 30, 2016 | |
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. We use derivative financial instruments to manage our exposure to foreign currency exchange rate risk and do not enter into derivative financial contracts for trading purposes. 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. These contracts are entered into with large, reputable financial institutions that are monitored for counterparty risk. The currencies hedged against changes in the U.S. dollar are Japanese yen, Canadian dollars, British pounds, Euro, Mexican pesos, Hong Kong dollars, Chinese yuan, and Taiwan dollars. 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 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 entities, whose functional currency is the U.S. dollar, to certain international subsidiaries in their local currencies. 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 24 months. The effective portion of the gain or loss on the derivative financial instruments is reported as a component of other comprehensive income and is recognized in income in the period in which the underlying transaction impacts the income statement. There were no material amounts recorded in the Condensed Consolidated Statements of Income for the thirteen and twenty-six weeks ended July 30, 2016 or August 1, 2015 as a result of our analysis of hedge ineffectiveness or hedge components excluded from the assessment of effectiveness. There were no material amounts reclassified into earnings during the thirteen and twenty-six weeks ended July 30, 2016 or August 1, 2015 as a result of 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 and twenty-six weeks ended July 30, 2016 or August 1, 2015 as a result of our analysis of hedge ineffectiveness or hedge components excluded from the assessment of effectiveness. Other Derivatives Not Designated as Hedging Instruments We enter into 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 that represent economic hedges, 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. Outstanding Notional Amounts We had foreign exchange forward contracts outstanding in the following notional amounts: ($ in millions) July 30, January 30, August 1, Derivatives designated as cash flow hedges $ 1,449 $ 1,220 $ 1,468 Derivatives designated as net investment hedges 32 30 31 Derivatives not designated as hedging instruments 625 324 313 Total $ 2,106 $ 1,574 $ 1,812 Quantitative Disclosures about Derivative Financial Instruments The fair values of foreign exchange forward contracts are as follows: ($ in millions) July 30, January 30, August 1, Derivatives designated as cash flow hedges: Other current assets $ 30 $ 71 $ 95 Other long-term assets $ 8 $ 8 $ 29 Accrued expenses and other current liabilities $ 38 $ 1 $ 3 Lease incentives and other long-term liabilities $ 23 $ 1 $ 4 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 $ 12 $ 13 $ 17 Other long-term assets $ 1 $ — $ — Accrued expenses and other current liabilities $ 19 $ 1 $ 1 Lease incentives and other long-term liabilities $ 3 $ — $ — Total derivatives in an asset position $ 52 $ 93 $ 141 Total derivatives in a liability position $ 83 $ 3 $ 8 The majority of the unrealized gains and losses from designated cash flow hedges as of July 30, 2016 will be recognized in income within the next 12 months at the then-current values, which may differ from the fair values as of July 30, 2016 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 $11 million , $2 million , and $5 million as of July 30, 2016 , January 30, 2016 , and August 1, 2015 , respectively. If we did elect to offset, the net amounts of our derivative financial instruments in an asset position would be $41 million , $91 million , and $136 million and the net amounts of the derivative financial instruments in a liability position would be $72 million , $1 million , and $3 million as of July 30, 2016 , January 30, 2016 and August 1, 2015 , respectively. See Note 5 of Notes to Condensed Consolidated Financial Statements for disclosures on the fair value measurements of our derivative financial instruments. The effective portion of gains and losses on foreign exchange forward contracts in cash flow hedging and net investment hedging relationships recorded in other comprehensive income and the Condensed Consolidated Statements of Income, on a pre-tax basis, are as follows: 13 Weeks Ended 26 Weeks Ended ($ in millions) July 30, August 1, July 30, August 1, Derivatives in cash flow hedging relationships: Gain (loss) recognized in other comprehensive income $ 20 $ 53 $ (105 ) $ 39 Gain reclassified into cost of goods sold and occupancy expenses $ — $ 26 $ 13 $ 54 Gain (loss) reclassified into operating expenses $ (6 ) $ 1 $ (8 ) $ 3 Derivatives in net investment hedging relationships: Gain (loss) recognized in other comprehensive income $ 1 $ 2 $ (2 ) $ 1 For the thirteen and twenty-six weeks ended July 30, 2016 and August 1, 2015 , there were no amounts of gain or loss reclassified from accumulated other comprehensive income into net 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. Gains and losses on foreign exchange forward contracts not designated as hedging instruments recorded in the Condensed Consolidated Statements of Income, on a pre-tax basis, are as follows: 13 Weeks Ended 26 Weeks Ended ($ in millions) July 30, August 1, July 30, August 1, Gain (loss) recognized in operating expenses $ 10 $ — $ (17 ) $ — |
Share Repurchases
Share Repurchases | 6 Months Ended |
Jul. 30, 2016 | |
Disclosure Share Repurchase Activity [Abstract] | |
Share Repurchases | Share Repurchases Share repurchase activity is as follows: 13 Weeks Ended 26 Weeks Ended ($ and shares in millions except average per share cost) July 30, August 1, July 30, August 1, Number of shares repurchased — 10.0 — 15.6 Total cost $ — $ 377 $ — $ 607 Average per share cost including commissions $ — $ 37.60 $ — $ 38.82 In October 2014, we announced that the Board of Directors approved a $500 million share repurchase authorization, all of which was completed by the end of May 2015. In February 2015, we announced that the Board of Directors approved a $1.0 billion share repurchase authorization (the "February 2015 repurchase program"). In February 2016, we announced that the Board of Directors approved a new $1.0 billion share repurchase authorization (the "February 2016 repurchase program"). The February 2015 repurchase program, which had $302 million remaining, was superseded and replaced by the February 2016 repurchase program. The February 2016 repurchase program still had $1.0 billion remaining as of July 30, 2016 , as there were no shares repurchased during the thirteen and twenty-six weeks ended July 30, 2016 . All of the share repurchases were paid for as of January 30, 2016 and August 1, 2015 . All common stock repurchased is immediately retired. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jul. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation Share-based compensation expense recognized in the Condensed Consolidated Statements of Income, primarily in operating expenses, is as follows: 13 Weeks Ended 26 Weeks Ended ($ in millions) July 30, August 1, July 30, August 1, Stock units $ 17 $ 16 $ 29 $ 34 Stock options 3 3 5 6 Employee stock purchase plan 1 2 2 3 Share-based compensation expense 21 21 36 43 Less: Income tax benefit (11 ) (8 ) (17 ) (16 ) Share-based compensation expense, net of tax $ 10 $ 13 $ 19 $ 27 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jul. 30, 2016 | |
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 January 30, 2016 $ 22 $ 63 $ 85 13 Weeks Ended April 30, 2016: Foreign currency translation 31 — 31 Change in fair value of derivative financial instruments — (89 ) (89 ) Amounts reclassified from accumulated other comprehensive income — (7 ) (7 ) Other comprehensive income (loss), net 31 (96 ) (65 ) Balance at April 30, 2016 53 (33 ) 20 13 Weeks Ended July 30, 2016: Foreign currency translation (22 ) — (22 ) Change in fair value of derivative financial instruments — (7 ) (7 ) Amounts reclassified from accumulated other comprehensive income — 8 8 Other comprehensive income (loss), net (22 ) 1 (21 ) Balance at July 30, 2016 $ 31 $ (32 ) $ (1 ) ($ in millions) Foreign Currency Translation Cash Flow Hedges Total Balance at January 31, 2015 $ 60 $ 105 $ 165 13 Weeks Ended May 2, 2015: Foreign currency translation 6 — 6 Change in fair value of derivative financial instruments — (10 ) (10 ) Amounts reclassified from accumulated other comprehensive income — (21 ) (21 ) Other comprehensive income (loss), net 6 (31 ) (25 ) Balance at May 2, 2015 66 74 140 13 Weeks Ended August 1, 2015: Foreign currency translation (13 ) — (13 ) Change in fair value of derivative financial instruments — 36 36 Amounts reclassified from accumulated other comprehensive income — (19 ) (19 ) Other comprehensive income (loss), net (13 ) 17 4 Balance at August 1, 2015 $ 53 $ 91 $ 144 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 | 6 Months Ended |
Jul. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes 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, the United Kingdom, China, Hong Kong, Japan, and India. 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 in the normal course of business. As of July 30, 2016 , it is reasonably possible that we will recognize a decrease in gross unrecognized tax benefits within the next 12 months of up to $2 million , primarily due to 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. The effective income tax rate was 52.5 percent for the thirteen weeks ended July 30, 2016 , compared with 38.0 percent for the thirteen weeks ended August 1, 2015 . The increase in the effective tax rate was primarily due to the impact of restructuring costs incurred for foreign subsidiaries during the thirteen weeks ended July 30, 2016 and resulting valuation allowances on certain foreign deferred tax assets. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jul. 30, 2016 | |
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 26 Weeks Ended (shares in millions) July 30, August 1, July 30, August 1, Weighted-average number of shares - basic 398 417 398 419 Common stock equivalents 1 1 1 2 Weighted-average number of shares - diluted 399 418 399 421 The above computations of weighted-average number of shares – diluted exclude 11 million and 3 million shares related to stock options and other stock awards for the thirteen weeks ended July 30, 2016 and August 1, 2015 , respectively, and 8 million and 3 million shares related to stock options and other stock awards for the twenty-six weeks ended July 30, 2016 and August 1, 2015 , respectively, as their inclusion would have an anti-dilutive effect on earnings per share. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 30, 2016 | |
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 July 30, 2016 , 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 July 30, 2016 , January 30, 2016 , and August 1, 2015 , 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 July 30, 2016 , January 30, 2016 , and August 1, 2015 was not material for any individual Action or in total. Subsequent to July 30, 2016 and through the filing date of this Quarterly Report on Form 10-Q, no information has become available that indicates a change is required that would be material to our Condensed Consolidated Financial Statements taken as a whole. 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 | 6 Months Ended |
Jul. 30, 2016 | |
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, Athleta, and Intermix brands. We identify our operating segments according to how our business activities are managed and evaluated. As of July 30, 2016 , our operating segments included Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Intermix. The operating results for the twenty-six weeks ended August 1, 2015 also include Piperlime, which was discontinued as of the first quarter of fiscal 2015. We have determined that each of our operating segments share similar economic and other qualitative characteristics, and therefore the results of our operating segments are aggregated into one reportable segment as of July 30, 2016 . Net sales by brand and region are as follows: ($ in millions) Gap Global Old Navy Global Banana Republic Global Other (2) Total Percentage of Net Sales 13 Weeks Ended July 30, 2016 U.S. (1) $ 749 $ 1,500 $ 523 $ 200 $ 2,972 77 % Canada 92 129 57 — 278 7 Europe 159 — 17 — 176 5 Asia 280 66 29 — 375 10 Other regions 33 10 7 — 50 1 Total $ 1,313 $ 1,705 $ 633 $ 200 $ 3,851 100 % Sales growth (decline) (4 )% 2 % (6 )% 12 % (1 )% ($ in millions) Gap Global Old Navy Global Banana Republic Global Other (2) Total Percentage of Net Sales 13 Weeks Ended August 1, 2015 U.S. (1) $ 795 $ 1,500 $ 563 $ 177 $ 3,035 78 % Canada 88 124 59 1 272 7 Europe 176 — 20 — 196 5 Asia 270 49 27 — 346 9 Other regions 39 2 8 — 49 1 Total $ 1,368 $ 1,675 $ 677 $ 178 $ 3,898 100 % Sales growth (decline) (7 )% 3 % (4 )% (4 )% (2 )% ($ in millions) Gap Global Old Navy Global Banana Republic Global Other (2) Total Percentage of Net Sales 26 Weeks Ended July 30, 2016 U.S. (1) $ 1,447 $ 2,828 $ 977 $ 378 $ 5,630 77 % Canada 162 227 104 1 494 7 Europe 303 — 31 — 334 5 Asia 560 116 55 — 731 10 Other regions 64 20 16 — 100 1 Total $ 2,536 $ 3,191 $ 1,183 $ 379 $ 7,289 100 % Sales growth (decline) (5 )% (1 )% (9 )% 7 % (4 )% ($ in millions) Gap Global Old Navy Global Banana Republic Global Other (3) Total Percentage of Net Sales 26 Weeks Ended August 1, 2015 U.S. (1) $ 1,530 $ 2,903 $ 1,078 $ 352 $ 5,863 78 % Canada 157 226 111 2 496 6 Europe 340 — 37 — 377 5 Asia 555 92 54 — 701 9 Other regions 94 6 18 — 118 2 Total $ 2,676 $ 3,227 $ 1,298 $ 354 $ 7,555 100 % Sales growth (decline) (8 )% 4 % (5 )% (4 )% (3 )% __________ (1) U.S. includes the United States, Puerto Rico, and Guam. (2) Includes Athleta and Intermix. (3) Includes Athleta, Intermix, and Piperlime, which was discontinued as of the first quarter of fiscal 2015. Net sales by region are allocated based on the location of the store where the customer paid for and received the merchandise or the distribution center or store from which the products were shipped. |
Store Closing and Other Opera21
Store Closing and Other Operating Charges Restructuring (Tables) | 6 Months Ended |
Jul. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | The summary of the costs incurred during the thirteen weeks ended July 30, 2016 , as well as the Company’s current estimates of the pre-tax amount expected to be incurred during the remainder of fiscal 2016 , are as follows: Costs Incurred Estimated Costs to be Incurred ($ in millions) 13 Weeks Ended July 30, 2016 Remainder of Fiscal 2016 Total Costs recorded in cost of goods sold and occupancy expenses: Accelerated depreciation $ 4 $ 10 - 15 $ 15 - 20 Employee related costs 11 Less than 5 10 - 15 Other — — — Total costs recorded in cost of goods sold and occupancy expenses 15 10 - 20 25 - 35 Costs recorded in operating expenses: Lease termination fees and lease losses 34 50 - 65 85 - 100 Employee related costs 30 15 - 20 45 - 50 Store asset impairment 52 Less than 5 50 - 55 Other 19 5 - 10 25 - 30 Total costs recorded in operating expenses 135 70 - 100 205 - 235 Total restructuring costs $ 150 $ 80 - 120 $ 230 - 270 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes activity during the thirteen weeks ended July 30, 2016 related to certain restructuring costs that will be settled with cash payments and the related liability balances as of July 30, 2016 . ($ in millions) Lease Termination Fees and Lease Losses Employee Related Costs Other Total Balance at April 30, 2016 $ — $ — $ — $ — Provision 34 41 12 87 Cash payments — — (6 ) (6 ) Balance at July 30, 2016 $ 34 $ 41 $ 6 $ 81 |
Debt and Credit Facilities Long
Debt and Credit Facilities Long Term Debt (Tables) | 6 Months Ended |
Jul. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long Term Debt | Long-term debt consists of the following: ($ in millions) July 30, January 30, August 1, Notes $ 1,248 $ 1,248 $ 1,248 Japan Term Loan 97 83 100 Total long-term debt 1,345 1,331 1,348 Less: Current portion (24 ) (21 ) (20 ) Total long-term debt, less current portion $ 1,321 $ 1,310 $ 1,328 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 30, 2016 | |
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) July 30, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 756 $ 169 $ 587 $ — Derivative financial instruments 52 — 52 — Deferred compensation plan assets 41 41 — — Total $ 849 $ 210 $ 639 $ — Liabilities: Derivative financial instruments $ 83 $ — $ 83 $ — Fair Value Measurements at Reporting Date Using ($ in millions) January 30, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 517 $ 204 $ 313 $ — Derivative financial instruments 93 — 93 — Deferred compensation plan assets 37 37 — — Total $ 647 $ 241 $ 406 $ — Liabilities: Derivative financial instruments $ 3 $ — $ 3 $ — Fair Value Measurements at Reporting Date Using ($ in millions) August 1, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 239 $ 96 $ 143 $ — Derivative financial instruments 141 — 141 — Deferred compensation plan assets 46 46 — — Total $ 426 $ 142 $ 284 $ — Liabilities: Derivative financial instruments $ 8 $ — $ 8 $ — |
Derivative Financial Instrume24
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jul. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | Gains and losses on foreign exchange forward contracts not designated as hedging instruments recorded in the Condensed Consolidated Statements of Income, on a pre-tax basis, are as follows: 13 Weeks Ended 26 Weeks Ended ($ in millions) July 30, August 1, July 30, August 1, Gain (loss) recognized in operating expenses $ 10 $ — $ (17 ) $ — |
Foreign Exchange Forward Contracts Outstanding | We had foreign exchange forward contracts outstanding in the following notional amounts: ($ in millions) July 30, January 30, August 1, Derivatives designated as cash flow hedges $ 1,449 $ 1,220 $ 1,468 Derivatives designated as net investment hedges 32 30 31 Derivatives not designated as hedging instruments 625 324 313 Total $ 2,106 $ 1,574 $ 1,812 |
Fair Values of Asset and Liability Derivative Financial Instruments | The fair values of foreign exchange forward contracts are as follows: ($ in millions) July 30, January 30, August 1, Derivatives designated as cash flow hedges: Other current assets $ 30 $ 71 $ 95 Other long-term assets $ 8 $ 8 $ 29 Accrued expenses and other current liabilities $ 38 $ 1 $ 3 Lease incentives and other long-term liabilities $ 23 $ 1 $ 4 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 $ 12 $ 13 $ 17 Other long-term assets $ 1 $ — $ — Accrued expenses and other current liabilities $ 19 $ 1 $ 1 Lease incentives and other long-term liabilities $ 3 $ — $ — Total derivatives in an asset position $ 52 $ 93 $ 141 Total derivatives in a liability position $ 83 $ 3 $ 8 |
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 26 Weeks Ended ($ in millions) July 30, August 1, July 30, August 1, Derivatives in cash flow hedging relationships: Gain (loss) recognized in other comprehensive income $ 20 $ 53 $ (105 ) $ 39 Gain reclassified into cost of goods sold and occupancy expenses $ — $ 26 $ 13 $ 54 Gain (loss) reclassified into operating expenses $ (6 ) $ 1 $ (8 ) $ 3 Derivatives in net investment hedging relationships: Gain (loss) recognized in other comprehensive income $ 1 $ 2 $ (2 ) $ 1 |
Share Repurchases (Tables)
Share Repurchases (Tables) | 6 Months Ended |
Jul. 30, 2016 | |
Disclosure Share Repurchase Activity [Abstract] | |
Share Repurchase Activity | Share repurchase activity is as follows: 13 Weeks Ended 26 Weeks Ended ($ and shares in millions except average per share cost) July 30, August 1, July 30, August 1, Number of shares repurchased — 10.0 — 15.6 Total cost $ — $ 377 $ — $ 607 Average per share cost including commissions $ — $ 37.60 $ — $ 38.82 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jul. 30, 2016 | |
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 26 Weeks Ended ($ in millions) July 30, August 1, July 30, August 1, Stock units $ 17 $ 16 $ 29 $ 34 Stock options 3 3 5 6 Employee stock purchase plan 1 2 2 3 Share-based compensation expense 21 21 36 43 Less: Income tax benefit (11 ) (8 ) (17 ) (16 ) Share-based compensation expense, net of tax $ 10 $ 13 $ 19 $ 27 |
Accumulated Other Comprehensi27
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jul. 30, 2016 | |
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 January 30, 2016 $ 22 $ 63 $ 85 13 Weeks Ended April 30, 2016: Foreign currency translation 31 — 31 Change in fair value of derivative financial instruments — (89 ) (89 ) Amounts reclassified from accumulated other comprehensive income — (7 ) (7 ) Other comprehensive income (loss), net 31 (96 ) (65 ) Balance at April 30, 2016 53 (33 ) 20 13 Weeks Ended July 30, 2016: Foreign currency translation (22 ) — (22 ) Change in fair value of derivative financial instruments — (7 ) (7 ) Amounts reclassified from accumulated other comprehensive income — 8 8 Other comprehensive income (loss), net (22 ) 1 (21 ) Balance at July 30, 2016 $ 31 $ (32 ) $ (1 ) ($ in millions) Foreign Currency Translation Cash Flow Hedges Total Balance at January 31, 2015 $ 60 $ 105 $ 165 13 Weeks Ended May 2, 2015: Foreign currency translation 6 — 6 Change in fair value of derivative financial instruments — (10 ) (10 ) Amounts reclassified from accumulated other comprehensive income — (21 ) (21 ) Other comprehensive income (loss), net 6 (31 ) (25 ) Balance at May 2, 2015 66 74 140 13 Weeks Ended August 1, 2015: Foreign currency translation (13 ) — (13 ) Change in fair value of derivative financial instruments — 36 36 Amounts reclassified from accumulated other comprehensive income — (19 ) (19 ) Other comprehensive income (loss), net (13 ) 17 4 Balance at August 1, 2015 $ 53 $ 91 $ 144 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jul. 30, 2016 | |
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 26 Weeks Ended (shares in millions) July 30, August 1, July 30, August 1, Weighted-average number of shares - basic 398 417 398 419 Common stock equivalents 1 1 1 2 Weighted-average number of shares - diluted 399 418 399 421 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jul. 30, 2016 | |
Segment Reporting [Abstract] | |
Net Sales by Brand and Region | Net sales by brand and region are as follows: ($ in millions) Gap Global Old Navy Global Banana Republic Global Other (2) Total Percentage of Net Sales 13 Weeks Ended July 30, 2016 U.S. (1) $ 749 $ 1,500 $ 523 $ 200 $ 2,972 77 % Canada 92 129 57 — 278 7 Europe 159 — 17 — 176 5 Asia 280 66 29 — 375 10 Other regions 33 10 7 — 50 1 Total $ 1,313 $ 1,705 $ 633 $ 200 $ 3,851 100 % Sales growth (decline) (4 )% 2 % (6 )% 12 % (1 )% ($ in millions) Gap Global Old Navy Global Banana Republic Global Other (2) Total Percentage of Net Sales 13 Weeks Ended August 1, 2015 U.S. (1) $ 795 $ 1,500 $ 563 $ 177 $ 3,035 78 % Canada 88 124 59 1 272 7 Europe 176 — 20 — 196 5 Asia 270 49 27 — 346 9 Other regions 39 2 8 — 49 1 Total $ 1,368 $ 1,675 $ 677 $ 178 $ 3,898 100 % Sales growth (decline) (7 )% 3 % (4 )% (4 )% (2 )% ($ in millions) Gap Global Old Navy Global Banana Republic Global Other (2) Total Percentage of Net Sales 26 Weeks Ended July 30, 2016 U.S. (1) $ 1,447 $ 2,828 $ 977 $ 378 $ 5,630 77 % Canada 162 227 104 1 494 7 Europe 303 — 31 — 334 5 Asia 560 116 55 — 731 10 Other regions 64 20 16 — 100 1 Total $ 2,536 $ 3,191 $ 1,183 $ 379 $ 7,289 100 % Sales growth (decline) (5 )% (1 )% (9 )% 7 % (4 )% ($ in millions) Gap Global Old Navy Global Banana Republic Global Other (3) Total Percentage of Net Sales 26 Weeks Ended August 1, 2015 U.S. (1) $ 1,530 $ 2,903 $ 1,078 $ 352 $ 5,863 78 % Canada 157 226 111 2 496 6 Europe 340 — 37 — 377 5 Asia 555 92 54 — 701 9 Other regions 94 6 18 — 118 2 Total $ 2,676 $ 3,227 $ 1,298 $ 354 $ 7,555 100 % Sales growth (decline) (8 )% 4 % (5 )% (4 )% (3 )% __________ (1) U.S. includes the United States, Puerto Rico, and Guam. (2) Includes Athleta and Intermix. (3) Includes Athleta, Intermix, and Piperlime, which was discontinued as of the first quarter of fiscal 2015. |
Basis of Presentation Subsequen
Basis of Presentation Subsequent Event (Details) | 1 Months Ended |
Aug. 31, 2016 | |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Subsequent Event, Date | Aug. 29, 2016 |
Store Closing and Other Opera31
Store Closing and Other Operating Charges Restructuring and Related Costs (Details) $ in Millions | 3 Months Ended |
Jul. 30, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | $ 150 |
Cost of Goods Sold and Occupancy Expense | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | 15 |
Operating Expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | 135 |
Accelerated Depreciation [Member] | Cost of Goods Sold and Occupancy Expense | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | 4 |
Store Asset Impairment [Member] | Operating Expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | 52 |
Employee Related Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | 41 |
Employee Related Costs [Member] | Cost of Goods Sold and Occupancy Expense | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | 11 |
Employee Related Costs [Member] | Operating Expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | 30 |
Other [Member] | Cost of Goods Sold and Occupancy Expense | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | 0 |
Other [Member] | Operating Expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | 19 |
Lease Termination Fees and Lease Losses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | 34 |
Lease Termination Fees and Lease Losses [Member] | Operating Expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | 34 |
Maximum [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost Remaining | 120 |
Restructuring and Related Cost, Expected Cost | 270 |
Maximum [Member] | Cost of Goods Sold and Occupancy Expense | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost Remaining | 20 |
Restructuring and Related Cost, Expected Cost | 35 |
Maximum [Member] | Operating Expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost Remaining | 100 |
Restructuring and Related Cost, Expected Cost | 235 |
Maximum [Member] | Accelerated Depreciation [Member] | Cost of Goods Sold and Occupancy Expense | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost Remaining | 15 |
Restructuring and Related Cost, Expected Cost | 20 |
Maximum [Member] | Store Asset Impairment [Member] | Operating Expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost Remaining | 5 |
Restructuring and Related Cost, Expected Cost | 55 |
Maximum [Member] | Employee Related Costs [Member] | Cost of Goods Sold and Occupancy Expense | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost Remaining | 5 |
Restructuring and Related Cost, Expected Cost | 15 |
Maximum [Member] | Employee Related Costs [Member] | Operating Expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost Remaining | 20 |
Restructuring and Related Cost, Expected Cost | 50 |
Maximum [Member] | Other [Member] | Cost of Goods Sold and Occupancy Expense | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost Remaining | 0 |
Restructuring and Related Cost, Expected Cost | 0 |
Maximum [Member] | Other [Member] | Operating Expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost Remaining | 10 |
Restructuring and Related Cost, Expected Cost | 30 |
Maximum [Member] | Lease Termination Fees and Lease Losses [Member] | Operating Expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost Remaining | 65 |
Restructuring and Related Cost, Expected Cost | 100 |
Minimum [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost Remaining | 80 |
Restructuring and Related Cost, Expected Cost | 230 |
Minimum [Member] | Cost of Goods Sold and Occupancy Expense | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost Remaining | 10 |
Restructuring and Related Cost, Expected Cost | 25 |
Minimum [Member] | Operating Expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost Remaining | 70 |
Restructuring and Related Cost, Expected Cost | 205 |
Minimum [Member] | Accelerated Depreciation [Member] | Cost of Goods Sold and Occupancy Expense | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost Remaining | 10 |
Restructuring and Related Cost, Expected Cost | 15 |
Minimum [Member] | Store Asset Impairment [Member] | Operating Expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost Remaining | 0 |
Restructuring and Related Cost, Expected Cost | 50 |
Minimum [Member] | Employee Related Costs [Member] | Cost of Goods Sold and Occupancy Expense | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost Remaining | 0 |
Restructuring and Related Cost, Expected Cost | 10 |
Minimum [Member] | Employee Related Costs [Member] | Operating Expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost Remaining | 15 |
Restructuring and Related Cost, Expected Cost | 45 |
Minimum [Member] | Other [Member] | Cost of Goods Sold and Occupancy Expense | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost Remaining | 0 |
Restructuring and Related Cost, Expected Cost | 0 |
Minimum [Member] | Other [Member] | Operating Expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost Remaining | 5 |
Restructuring and Related Cost, Expected Cost | 25 |
Minimum [Member] | Lease Termination Fees and Lease Losses [Member] | Operating Expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost Remaining | 50 |
Restructuring and Related Cost, Expected Cost | $ 85 |
Store Closing and Other Opera32
Store Closing and Other Operating Charges Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2016 | Apr. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | $ 81 | $ 0 |
Restructuring Charges | 150 | |
Payments for Restructuring | (6) | |
Charges that will be settled with cash payments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 87 | |
Lease Termination Fees and Lease Losses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 34 | 0 |
Restructuring Charges | 34 | |
Payments for Restructuring | 0 | |
Employee Related Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 41 | 0 |
Restructuring Charges | 41 | |
Payments for Restructuring | 0 | |
Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 6 | $ 0 |
Payments for Restructuring | (6) | |
Other [Member] | Charges that will be settled with cash payments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $ 12 |
Store Closing and Other Opera33
Store Closing and Other Operating Charges Restructuring - Additional Information (Details) $ in Millions | 3 Months Ended |
Jul. 30, 2016USD ($) | |
Restructuring [Abstract] | |
Number of Old Navy Japan Stores Expected to Close Related to Restructuring | 53 |
Number of Total Stores Expected to Close Related to Restructuring | 75 |
Restructuring Charges | $ 150 |
Debt and Credit Facilities Lo34
Debt and Credit Facilities Long Term Debt (Details) - USD ($) $ in Millions | Jul. 30, 2016 | Jan. 30, 2016 | Aug. 01, 2015 |
Debt Instrument [Line Items] | |||
Notes | $ 1,248 | $ 1,248 | $ 1,248 |
Japan Term Loan | 97 | 83 | 100 |
Total long-term debt | 1,345 | 1,331 | 1,348 |
Less: Current portion | (24) | (21) | (20) |
Total long-term debt, less current portion | $ 1,321 | $ 1,310 | $ 1,328 |
Debt and Credit Facilities - Ad
Debt and Credit Facilities - Additional Information (Details) $ in Millions, ¥ in Billions | 6 Months Ended | |||
Jul. 30, 2016JPY (¥) | Jul. 30, 2016USD ($) | Jan. 30, 2016USD ($) | Aug. 01, 2015USD ($) | |
Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Term | 2 years | |||
Maximum borrowing capacity | $ 50 | |||
Borrowings | 0 | |||
Expiration date | Sep. 30, 2016 | |||
5.95 Percent Notes Due April 2021 | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount of notes issued | $ 1,250 | |||
Notes, interest rate | 5.95% | 5.95% | ||
Estimated fair value | $ 1,340 | $ 1,290 | $ 1,400 | |
Notes, maturity date | Apr. 12, 2021 | |||
Japan Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount of notes issued | ¥ | ¥ 15 | |||
Estimated fair value | 97 | $ 83 | $ 100 | |
Debt Instrument, Term | 4 years | |||
Debt Instrument, Date of First Required Payment | Jan. 15, 2015 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Two | ¥ 7.5 | 73 | ||
Debt Instrument, Annual Principal Payment | ¥ 2.5 | 24 | ||
Notes, maturity date | Jan. 15, 2018 | |||
Foreign Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 47 | |||
Borrowings | 0 | |||
Bank guarantees related to store leases | 13 | |||
Standby Letters of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Unsecured committed letter of credit amount | 18 | |||
400 Million Dollar Term Loan with Extension [Member] | ||||
Debt Instrument [Line Items] | ||||
Short-Term Loans Payable | 400 | |||
Short-term Debt, Fair Value | 400 | |||
Notes, maturity date | Oct. 15, 2017 | |||
Five-Year Unsecured Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Term | 5 years | |||
Maximum borrowing capacity | 500 | |||
Unsecured committed letter of credit amount | 0 | |||
Borrowings | $ 0 | |||
Expiration date | May 1, 2020 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Jul. 30, 2016 | Jan. 30, 2016 | Aug. 01, 2015 |
Assets: | |||
Cash equivalents | $ 756 | $ 517 | $ 239 |
Derivative financial instruments | 52 | 93 | 141 |
Deferred compensation plan assets | 41 | 37 | 46 |
Total | 849 | 647 | 426 |
Liabilities: | |||
Derivative financial instruments | 83 | 3 | 8 |
Fair Value, Inputs, Level 1 [Member] | |||
Assets: | |||
Cash equivalents | 169 | 204 | 96 |
Derivative financial instruments | 0 | 0 | 0 |
Deferred compensation plan assets | 41 | 37 | 46 |
Total | 210 | 241 | 142 |
Liabilities: | |||
Derivative financial instruments | 0 | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | |||
Assets: | |||
Cash equivalents | 587 | 313 | 143 |
Derivative financial instruments | 52 | 93 | 141 |
Deferred compensation plan assets | 0 | 0 | 0 |
Total | 639 | 406 | 284 |
Liabilities: | |||
Derivative financial instruments | 83 | 3 | 8 |
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 - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired other long-lived assets, fair value | $ 12,000,000 | $ 6,000,000 | $ 12,000,000 | $ 6,000,000 |
Long-Lived Asset at Carrying Value | 68,000,000 | 43,000,000 | 68,000,000 | 43,000,000 |
Other indefinite-lived intangible assets impairment charges | 0 | 0 | 0 | 0 |
Goodwill impairment charges | 0 | 0 | 0 | 0 |
Transfers into or out of level 2 | 0 | 0 | 0 | 0 |
Transfers into or out of level 1 | 0 | 0 | 0 | 0 |
Purchases, sales, issuances, or settlements related to recurring level 3 measurements | 0 | 0 | $ 0 | $ 0 |
Strategic Actions Impairment [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other long-lived asset impairment charges | $ 37,000,000 | |||
Non Restructuring Impairment [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other long-lived asset impairment charges | 4,000,000 | |||
Store Asset Impairment [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other long-lived asset impairment charges | $ 52,000,000 |
Derivative Financial Instrume38
Derivative Financial Instruments - Foreign Exchange Contracts Outstanding to Sell Various Currencies (Details) - USD ($) $ in Millions | Jul. 30, 2016 | Jan. 30, 2016 | Aug. 01, 2015 |
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 2,106 | $ 1,574 | $ 1,812 |
Derivatives in cash flow hedging relationships | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 1,449 | 1,220 | 1,468 |
Derivatives in net investment hedging relationships | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 32 | 30 | 31 |
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 625 | $ 324 | $ 313 |
Derivative Financial Instrume39
Derivative Financial Instruments - Fair Values of Asset and Liability Derivative Financial Instruments (Details) - USD ($) $ in Millions | Jul. 30, 2016 | Jan. 30, 2016 | Aug. 01, 2015 |
Derivatives, Fair Value [Line Items] | |||
Derivative financial instruments, assets | $ 52 | $ 93 | $ 141 |
Derivative financial instruments, liabilities | 83 | 3 | 8 |
Foreign Exchange Forward Contract | |||
Derivatives, Fair Value [Line Items] | |||
Derivative financial instruments, assets | 52 | 93 | 141 |
Derivative financial instruments, liabilities | 83 | 3 | 8 |
Derivatives in cash flow hedging relationships | Foreign Exchange Forward Contract | Other Current Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative financial instruments, assets | 30 | 71 | 95 |
Derivatives in cash flow hedging relationships | Foreign Exchange Forward Contract | Other Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative financial instruments, assets | 8 | 8 | 29 |
Derivatives in cash flow hedging relationships | Foreign Exchange Forward Contract | Accrued Liabilities Current [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative financial instruments, liabilities | 38 | 1 | 3 |
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 | 23 | 1 | 4 |
Derivatives in net investment hedging relationships | Foreign Exchange Forward Contract | Other Current Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative financial instruments, assets | 1 | 1 | 0 |
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 |
Not Designated as Hedging Instrument | Foreign Exchange Forward Contract | Other Current Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative financial instruments, assets | 12 | 13 | 17 |
Not Designated as Hedging Instrument | Foreign Exchange Forward Contract | Other Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative financial instruments, assets | 1 | 0 | 0 |
Not Designated as Hedging Instrument | Foreign Exchange Forward Contract | Accrued Liabilities Current [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative financial instruments, liabilities | 19 | 1 | 1 |
Not Designated as Hedging Instrument | Foreign Exchange Forward Contract | Lease Incentive And Other Long Term Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative financial instruments, liabilities | $ 3 | $ 0 | $ 0 |
Derivative Financial Instrume40
Derivative Financial Instruments - Effects Of Derivative Financial Instruments On OCI And Condensed Consolidated Statements Of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
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 | $ 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 | 20 | 53 | (105) | 39 |
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 | 2 | (2) | 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 | 0 | 26 | 13 | 54 |
Foreign Exchange Forward Contract | Operating Expenses [Member] | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts of gain (loss) recognized in income on derivatives | 10 | 0 | (17) | 0 |
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 | $ (6) | $ 1 | $ (8) | $ 3 |
Derivative Financial Instrume41
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | Jan. 30, 2016 | |
Derivative [Line Items] | |||||
Derivative liabilities, net of amount subject to master netting arrangement | $ 72 | $ 3 | $ 72 | $ 3 | $ 1 |
Derivative assets, net of amount subject to master netting arrangement | 41 | 136 | 41 | 136 | 91 |
Amounts Subject to Enforceable Master Netting Arrangements | 11 | 5 | 11 | 5 | $ 2 |
Derivatives in cash flow hedging relationships | |||||
Derivative [Line Items] | |||||
Amounts recorded as a result of hedge ineffectiveness | 0 | 0 | 0 | 0 | |
Amounts reclassified in earnings as a result of discontinuance of cash flow hedges | 0 | 0 | 0 | 0 | |
Amounts recorded in net income as a result of hedge components excluded from the assessment of cash flow hedge effectiveness | 0 | 0 | 0 | 0 | |
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 hedge components excluded from the assessment of net investment hedge effectiveness | $ 0 | $ 0 | $ 0 | $ 0 |
Share Repurchase Activity (Deta
Share Repurchase Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Disclosure Share Repurchase Activity [Abstract] | ||||
Number of shares repurchased | 0 | 10 | 0 | 15.6 |
Total cost | $ 0 | $ 377 | $ 0 | $ 607 |
Average per share cost including commissions (in dollars per share) | $ 0 | $ 37.60 | $ 0 | $ 38.82 |
Share Repurchases - Additional
Share Repurchases - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | Feb. 25, 2016 | Jan. 30, 2016 | Feb. 26, 2015 | Oct. 16, 2014 | |
Disclosure Share Repurchases Additional Information [Abstract] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 1,000 | $ 1,000 | $ 500 | |||||
Share repurchases, remaining amount | $ 1,000 | $ 1,000 | $ 302 | |||||
Stock Repurchase Program Amount Not Paid | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||
Number of shares repurchased | 0 | 10 | 0 | 15.6 |
Share-Based Compensation Expens
Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 21 | $ 21 | $ 36 | $ 43 |
Less: Income tax benefit | (11) | (8) | (17) | (16) |
Share-based compensation expense, net of tax | 10 | 13 | 19 | 27 |
Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 17 | 16 | 29 | 34 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 3 | 3 | 5 | 6 |
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1 | $ 2 | $ 2 | $ 3 |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jul. 30, 2016 | Apr. 30, 2016 | Aug. 01, 2015 | May 02, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | Jan. 30, 2016 | Jan. 31, 2015 | |
Foreign currency translation | $ (22) | $ 31 | $ (13) | $ 6 | $ 9 | $ (7) | ||
Change in fair value of derivative financial instruments | (7) | (89) | 36 | (10) | (96) | 26 | ||
Amounts reclassified from accumulated other comprehensive income | 8 | (7) | (19) | (21) | 1 | (40) | ||
Other comprehensive income (loss), net | (21) | (65) | 4 | (25) | (86) | (21) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1) | 20 | 144 | 140 | (1) | 144 | $ 85 | $ 165 |
Accumulated Translation Adjustment [Member] | ||||||||
Foreign currency translation | (22) | 31 | (13) | 6 | ||||
Change in fair value of derivative financial instruments | 0 | 0 | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | ||||
Other comprehensive income (loss), net | (22) | 31 | (13) | 6 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 31 | 53 | 53 | 66 | 31 | 53 | 22 | 60 |
Derivatives in cash flow hedging relationships | ||||||||
Foreign currency translation | 0 | 0 | 0 | 0 | ||||
Change in fair value of derivative financial instruments | (7) | (89) | 36 | (10) | ||||
Amounts reclassified from accumulated other comprehensive income | 8 | (7) | (19) | (21) | ||||
Other comprehensive income (loss), net | 1 | (96) | 17 | (31) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (32) | $ (33) | $ 91 | $ 74 | $ (32) | $ 91 | $ 63 | $ 105 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Decrease In Gross Unrecognized Tax Benefits Within The Next 12 Months | $ 2 | $ 2 | |
Benefit To Income Taxes If Decrease In Gross Unrecognized Tax Benefits Within 12 Months Are Recognized | $ 0 | ||
Effective Income Tax Rate Reconciliation, Percent | 52.50% | 38.00% |
Earnings Per Share - Weighted A
Earnings Per Share - Weighted Average Number of Shares (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Earnings Per Share [Abstract] | ||||
Weighted-average number of shares - basic (in shares) | 398 | 417 | 398 | 419 |
Common stock equivalents (in shares) | 1 | 1 | 1 | 2 |
Weighted-average number of shares - diluted (in shares) | 399 | 418 | 399 | 421 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Earnings Per Share [Abstract] | ||||
Shares excluded from the computations of weighted-average number of shares - diluted | 11 | 3 | 8 | 3 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Jul. 30, 2016 | Jan. 30, 2016 | Aug. 01, 2015 |
Commitments and Contingencies Disclosure [Abstract] | |||
Loss Contingency, Estimate of Possible Loss Related to Actions | $ 0 | $ 0 | $ 0 |
Segment Information - Net Sales
Segment Information - Net Sales by Brand and Region (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | ||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | $ 3,851 | $ 3,898 | $ 7,289 | $ 7,555 | |||||
Percentage of Net Sales | 100.00% | 100.00% | 100.00% | 100.00% | |||||
Sales growth (decline) | (1.00%) | (2.00%) | (4.00%) | (3.00%) | |||||
U.S. | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | [1] | $ 2,972 | $ 3,035 | $ 5,630 | $ 5,863 | ||||
Percentage of Net Sales | [1] | 77.00% | 78.00% | 77.00% | 78.00% | ||||
Canada | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | $ 278 | $ 272 | $ 494 | $ 496 | |||||
Percentage of Net Sales | 7.00% | 7.00% | 7.00% | 6.00% | |||||
Europe | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | $ 176 | $ 196 | $ 334 | $ 377 | |||||
Percentage of Net Sales | 5.00% | 5.00% | 5.00% | 5.00% | |||||
Asia | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | $ 375 | $ 346 | $ 731 | $ 701 | |||||
Percentage of Net Sales | 10.00% | 9.00% | 10.00% | 9.00% | |||||
Other Regions | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | $ 50 | $ 49 | $ 100 | $ 118 | |||||
Percentage of Net Sales | 1.00% | 1.00% | 1.00% | 2.00% | |||||
Gap | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | $ 1,313 | $ 1,368 | $ 2,536 | $ 2,676 | |||||
Sales growth (decline) | (4.00%) | (7.00%) | (5.00%) | (8.00%) | |||||
Gap | U.S. | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | [1] | $ 749 | $ 795 | $ 1,447 | $ 1,530 | ||||
Gap | Canada | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | 92 | 88 | 162 | 157 | |||||
Gap | Europe | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | 159 | 176 | 303 | 340 | |||||
Gap | Asia | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | 280 | 270 | 560 | 555 | |||||
Gap | Other Regions | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | 33 | 39 | 64 | 94 | |||||
Old Navy | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | $ 1,705 | $ 1,675 | $ 3,191 | $ 3,227 | |||||
Sales growth (decline) | 2.00% | 3.00% | (1.00%) | 4.00% | |||||
Old Navy | U.S. | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | [1] | $ 1,500 | $ 1,500 | $ 2,828 | $ 2,903 | ||||
Old Navy | Canada | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | 129 | 124 | 227 | 226 | |||||
Old Navy | Europe | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | 0 | 0 | 0 | 0 | |||||
Old Navy | Asia | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | 66 | 49 | 116 | 92 | |||||
Old Navy | Other Regions | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | 10 | 2 | 20 | 6 | |||||
Banana Republic | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | $ 633 | $ 677 | $ 1,183 | $ 1,298 | |||||
Sales growth (decline) | (6.00%) | (4.00%) | (9.00%) | (5.00%) | |||||
Banana Republic | U.S. | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | [1] | $ 523 | $ 563 | $ 977 | $ 1,078 | ||||
Banana Republic | Canada | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | 57 | 59 | 104 | 111 | |||||
Banana Republic | Europe | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | 17 | 20 | 31 | 37 | |||||
Banana Republic | Asia | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | 29 | 27 | 55 | 54 | |||||
Banana Republic | Other Regions | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | 7 | 8 | 16 | 18 | |||||
Other | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | $ 200 | [2] | $ 178 | [2] | $ 379 | [2] | $ 354 | [3] | |
Sales growth (decline) | 12.00% | [2] | (4.00%) | [2] | 7.00% | [2] | (4.00%) | [3] | |
Other | U.S. | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | [1] | $ 200 | [2] | $ 177 | [2] | $ 378 | [2] | $ 352 | [3] |
Other | Canada | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | 0 | [2] | 1 | [2] | 1 | [2] | 2 | [3] | |
Other | Europe | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [3] | |
Other | Asia | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [3] | |
Other | Other Regions | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | $ 0 | [2] | $ 0 | [2] | $ 0 | [2] | $ 0 | [3] | |
[1] | U.S. includes the United States, Puerto Rico, and Guam. | ||||||||
[2] | Includes Athleta and Intermix. | ||||||||
[3] | Includes Athleta, Intermix, and Piperlime, which was discontinued as of the first quarter of fiscal 2015. |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 6 Months Ended |
Jul. 30, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments (in segments) | 1 |