Cover Page Document
Cover Page Document - USD ($) $ in Billions | 12 Months Ended | ||
Feb. 01, 2020 | Mar. 11, 2020 | Aug. 02, 2019 | |
Cover Page [Abstract] | |||
Document Transition Report | false | ||
Document Annual Report | true | ||
Title of 12(b) Security | Common Stock, $0.05 par value | ||
Entity Incorporation, State or Country Code | DE | ||
Document Type | 10-K | ||
Document Period End Date | Feb. 1, 2020 | ||
Entity File Number | 1-7562 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Registrant Name | GAP, INC | ||
Entity Tax Identification Number | 94-1697231 | ||
Entity Address, Address Line One | Two Folsom Street | ||
Entity Address, City or Town | San Francisco | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94105 | ||
City Area Code | 415 | ||
Local Phone Number | 427-0100 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4 | ||
Entity Common Stock, Shares Outstanding | 371,301,527 | ||
Trading Symbol | GPS | ||
Security Exchange Name | NYSE | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false |
Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Feb. 01, 2020 | Mar. 11, 2020 | Aug. 02, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Document Period End Date | Feb. 1, 2020 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | GPS | ||
Entity Registrant Name | GAP, INC | ||
Entity Central Index Key | 0000039911 | ||
Current Fiscal Year End Date | --02-01 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 371,301,527 | ||
Entity Public Float | $ 4 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,364 | $ 1,081 |
Short-term Investments | 290 | 288 |
Merchandise inventory | 2,156 | 2,131 |
Other current assets | 706 | 751 |
Total current assets | 4,516 | 4,251 |
Property and equipment, net of accumulated depreciation of $5,839 and $5,755 | 3,122 | 2,912 |
Operating Lease, Right-of-Use Asset | 5,402 | 0 |
Other long-term assets | 639 | 886 |
Total assets | 13,679 | 8,049 |
Current liabilities: | ||
Accounts payable | 1,174 | 1,126 |
Accrued expenses and other current liabilities | 1,067 | 1,024 |
Operating Lease, Liability, Current | 920 | 0 |
Income taxes payable | 48 | 24 |
Total current liabilities | 3,209 | 2,174 |
Long-term liabilities: | ||
Long-term debt | 1,249 | 1,249 |
Operating Lease, Liability, Noncurrent | 5,508 | 0 |
Lease incentives and other long-term liabilities | 397 | 1,073 |
Total long-term liabilities | 7,154 | 2,322 |
Stockholders' equity: | ||
Common stock $0.05 par value, Authorized 2,300 shares for all periods presented; Issued and Outstanding 371 and 378 shares | 19 | 19 |
Additional Paid in Capital | 0 | 0 |
Retained earnings | 3,257 | 3,481 |
Accumulated other comprehensive income | 40 | 53 |
Total stockholders' equity | 3,316 | 3,553 |
Total liabilities and stockholders' equity | $ 13,679 | $ 8,049 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Common stock, par value (in dollars per share) | $ 0.05 | $ 0.05 |
Common stock, shares authorized (in shares) | 2,300 | 2,300 |
Common stock, shares issued (in shares) | 371 | 378 |
Common stock, shares outstanding (in shares) | 371 | 378 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Revenues | $ 16,383 | $ 16,580 | $ 15,855 |
Cost of goods sold and occupancy expenses | 10,250 | 10,258 | 9,789 |
Gross profit | 6,133 | 6,322 | 6,066 |
Operating expenses | 5,559 | 4,960 | 4,587 |
Operating income | 574 | 1,362 | 1,479 |
Interest expense | 76 | 73 | 74 |
Interest income | (30) | (33) | (19) |
Income before income taxes | 528 | 1,322 | 1,424 |
Income taxes | 177 | 319 | 576 |
Net income | $ 351 | $ 1,003 | $ 848 |
Weighted-average number of shares—basic (in shares) | 376 | 385 | 393 |
Weighted-average number of shares - diluted (in shares) | 378 | 388 | 396 |
Earnings per share - basic (in dollars per share) | $ 0.93 | $ 2.61 | $ 2.16 |
Earnings per share - diluted (in dollars per share) | 0.93 | 2.59 | 2.14 |
Common Stock, Dividends, Per Share, Declared | $ 0.97 | $ 0.97 | $ 0.92 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Net income | $ 351 | $ 1,003 | $ 848 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation | (2) | (17) | 35 |
Change in fair value of derivative financial instruments, net of tax (tax benefit) of $5, $(4), and $(9) | 13 | 54 | (51) |
Reclassification adjustments on derivative financial instruments, net of (tax) tax benefit of $(5), $6, and $3 | (24) | (20) | (2) |
Other comprehensive income (loss), net of tax | (13) | 17 | (18) |
Comprehensive income | $ 338 | $ 1,020 | $ 830 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Foreign currency translation, net of tax benefit | $ 0 | $ 0 | $ 0 |
Change in fair value of derivative financial instruments, net of tax (tax benefit) | (4) | (9) | (2) |
Reclassification adjustment for realized losses on derivative financial instruments, net of (tax) tax benefit | $ 6 | $ 3 | $ (11) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Stock Options [Member]Common Stock | Stock Units [Member]Common Stock |
Balance at Jan. 28, 2017 | $ 2,904 | $ 20 | $ 81 | $ 2,749 | $ 54 | ||
Balance (in shares) at Jan. 28, 2017 | 399 | ||||||
Cumulative effect of a change in accounting principle related to share-based compensation | 848 | 848 | |||||
Other Comprehensive Income (Loss), Net of Tax | (18) | (18) | |||||
Other comprehensive loss, net of tax | $ (315) | ||||||
Number of shares repurchased (in shares) | (13) | ||||||
Stock Repurchased and Retired During Period, Value | $ (315) | $ (1) | (156) | (158) | |||
Stock Repurchased and Retired During Period, Shares | (13) | ||||||
Stock Issued During Period, Value, Other | 30 | $ 0 | 30 | ||||
Stock Issued During Period, Shares, Other | 2 | 1 | |||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (18) | 0 | (18) | ||||
Share-based compensation, net of estimated forfeitures | 76 | 76 | |||||
Common stock cash dividends | (361) | (361) | |||||
Balance at Feb. 03, 2018 | 3,144 | $ 19 | 8 | 3,081 | 36 | ||
Balance (in shares) at Feb. 03, 2018 | 389 | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 2 | 5 | (3) | ||||
Cumulative effect of a change in accounting principle related to share-based compensation | 1,003 | 1,003 | |||||
Other Comprehensive Income (Loss), Net of Tax | 17 | 17 | |||||
Other comprehensive loss, net of tax | $ (398) | ||||||
Number of shares repurchased (in shares) | (14) | ||||||
Stock Repurchased and Retired During Period, Value | $ (398) | $ 0 | (132) | (266) | |||
Stock Repurchased and Retired During Period, Shares | (14) | ||||||
Stock Issued During Period, Value, Other | 46 | $ 0 | 46 | ||||
Stock Issued During Period, Shares, Other | 2 | 1 | |||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (23) | 0 | (23) | ||||
Share-based compensation, net of estimated forfeitures | 101 | 101 | |||||
Common stock cash dividends | (373) | (373) | |||||
Balance at Feb. 02, 2019 | $ 3,553 | $ 19 | 0 | 3,481 | 53 | ||
Balance (in shares) at Feb. 02, 2019 | 378 | 378 | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 36 | 36 | |||||
Cumulative effect of a change in accounting principle related to share-based compensation | 351 | 351 | |||||
Other Comprehensive Income (Loss), Net of Tax | (13) | (13) | |||||
Other comprehensive loss, net of tax | $ (200) | ||||||
Number of shares repurchased (in shares) | (10) | ||||||
Stock Repurchased and Retired During Period, Value | $ (200) | $ 0 | (75) | (125) | |||
Stock Repurchased and Retired During Period, Shares | (10) | ||||||
Stock Issued During Period, Value, Other | 25 | $ 0 | 25 | ||||
Stock Issued During Period, Shares, Other | 1 | 2 | |||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (21) | 0 | (21) | ||||
Share-based compensation, net of estimated forfeitures | 71 | 71 | |||||
Common stock cash dividends | (364) | (364) | |||||
Balance at Feb. 01, 2020 | $ 3,316 | $ 19 | $ 0 | 3,257 | $ 40 | ||
Balance (in shares) at Feb. 01, 2020 | 371 | 371 | |||||
Lease 842 Initial Application Period Cumulative Effect | $ 86 | $ 86 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY CONSOLIDATED STATEMENTS OF STOCKHOLDERS" EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.97 | $ 0.97 | $ 0.92 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 351 | $ 1,003 | $ 848 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 557 | 578 | 559 |
Amortization Lease Incentives | 0 | (61) | (60) |
Operating Lease, Impairment Loss | 239 | 0 | 0 |
Share-based compensation | 68 | 91 | 87 |
Other Asset Impairment Charges | 98 | 14 | 28 |
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 70 | 4 | 11 |
Non-cash and other items | (10) | (10) | 8 |
Gain (Loss) on Disposition of Property Plant Equipment | (191) | 0 | 0 |
Deferred income taxes | (81) | 65 | 61 |
Changes in operating assets and liabilities: | |||
Merchandise inventory | 4 | (154) | (142) |
Other current assets and other long-term assets | 105 | (18) | 33 |
Accounts payable | 66 | (78) | (90) |
Accrued expenses and other current liabilities | 110 | (196) | 34 |
Income taxes payable, net of prepaid and other tax-related items | 86 | 113 | (52) |
Lease incentives and other long-term liabilities | 0 | 30 | 55 |
ChangeOperatingLeaseAssetAndLiabilitiesNet | (61) | 0 | 0 |
Net cash provided by operating activities | 1,411 | 1,381 | 1,380 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (702) | (705) | (731) |
Payments to Acquire Buildings | (343) | 0 | 0 |
Proceeds from Sale of Buildings | 220 | 0 | 0 |
Payments to Acquire Short-term Investments | (293) | (464) | 0 |
Sales and maturities of short-term investments | 293 | 177 | 0 |
Payments to Acquire Businesses, Net of Cash Acquired | (69) | 0 | 0 |
Insurance proceeds related to loss on property and equipment | 0 | 0 | 66 |
Other | 0 | (9) | (1) |
Net cash used for investing activities | (894) | (1,001) | (666) |
Cash flows from financing activities: | |||
Payments of debt | 0 | 0 | (67) |
Proceeds from issuances under share-based compensation plans | 25 | 46 | 30 |
Withholding tax payments related to vesting of stock units | (21) | (23) | (18) |
Repurchases of common stock | (200) | (398) | (315) |
Cash dividends paid | (364) | (373) | (361) |
Other | 0 | (1) | 0 |
Net cash used for financing activities | (560) | (749) | (731) |
Effect of Exchange Rate on Cash, Cash Equivalents, and Restricted Cash | 4 | (10) | 19 |
Net increase (decrease) in Cash, Cash Equivalents, and Restricted Cash | (39) | (379) | 2 |
Cash, Cash Equivalents, and Restricted Cash at beginning of period | 1,420 | 1,799 | 1,797 |
Cash, Cash Equivalents, and Restricted Cash end of period | 1,381 | 1,420 | 1,799 |
Non-cash investing activities: | |||
Purchases of property and equipment not yet paid at end of period | 85 | 93 | 77 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest during the period | 76 | 76 | 76 |
Cash paid for income taxes during the period, net of refunds | 176 | 143 | 570 |
Operating Lease, Payments | $ 1,244 | $ 0 | $ 0 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Organization The Gap, Inc., a Delaware corporation, is a global omni-channel retailer offering apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix, Janie and Jack, and Hill City brands. We have Company-operated stores in the United States, Canada, the United Kingdom, France, Ireland, Japan, Italy, China, Hong Kong, Taiwan, and Mexico. We also have franchise agreements with unaffiliated franchisees to operate Old Navy, Gap, and Banana Republic stores in over 30 other countries around the world. In addition, our products are available to customers online through Company-owned websites and through the use of third parties that provide logistics and fulfillment services. Principles of Consolidation The Consolidated Financial Statements include the accounts of The Gap, Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated. Fiscal Year and Presentation Our fiscal year is a 52-week or 53-week period ending on the Saturday closest to January 31. The fiscal years ended February 1, 2020 ( fiscal 2019 ), and February 2, 2019 ( fiscal 2018 ) consisted of 52 weeks. The fiscal year ended February 3, 2018 ( fiscal 2017 ) consisted of 53 weeks. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash, Cash Equivalents and Short-Term Investments Cash includes funds deposited in banks and amounts in transit from banks for customer credit card and debit card transactions that process in less than seven days. All highly liquid investments with original maturities of three months or less at the time of purchase are classified as cash equivalents. Our cash equivalents are placed primarily in time deposits and money market funds. With the exception of our available-for-sale investments noted below, we value these investments at their original purchase prices plus interest that has accrued at the stated rate. Income related to these securities is recorded in interest income on the Consolidated Statements of Income. Highly liquid investments with original maturities of greater than three months and less than two years are classified as short-term investments. These investments are classified as available-for-sale and are recorded at fair value using market prices. Changes in the fair value of available-for-sale investments impact net income only when such securities are sold or an other-than-temporary impairment is recognized. Income related to these investments is recorded in interest income on the Consolidated Statements of Income. See Note 7 of Notes to Consolidated Financial Statements for disclosures related to fair value measurements. Restricted Cash As of February 1, 2020 and February 3, 2018, restricted cash primarily includes consideration that serves as collateral for our insurance obligations. As of February 2, 2019, restricted cash primarily includes consideration held by a third party in connection with the purchase of a building, as well as consideration that serves as collateral for our insurance obligations. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in our Consolidated Balance Sheets to the total shown on our Consolidated Statements of Cash Flows: ($ in millions) February 1, February 2, February 3, Cash and cash equivalents $ 1,364 $ 1,081 $ 1,783 Restricted cash included in other current assets — 1 1 Restricted cash included in other long-term assets (1) 17 338 15 Total cash, cash equivalents, and restricted cash shown on the Consolidated Statement of Cash Flows $ 1,381 $ 1,420 $ 1,799 __________ (1) Fiscal 2018 included $320 million of consideration held by a third party in connection with the purchase of a building that was completed in fiscal 2019. Merchandise Inventory We value inventory at the lower of cost or net realizable value, with cost determined using the weighted-average cost method. We record an adjustment when future estimated selling price is less than cost. We review our inventory levels in order to identify slow-moving merchandise and broken assortments (items no longer in stock in a sufficient range of sizes or colors) and use promotions and markdowns to clear merchandise. In addition, we estimate and accrue shortage for the period between the last physical count and the balance sheet date. Derivative Financial Instruments Derivative financial instruments are recorded at fair value on the Consolidated Balance Sheets as other current assets, other long-term assets, accrued expenses and other current liabilities, or lease incentives and other long-term liabilities. For derivative financial instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative financial instruments is reported as a component of other comprehensive income (“OCI”) and is recognized in income in the period in which the underlying transaction impacts the income statement. For derivative financial instruments that are designated and qualify as net investment hedges, the effective portion of the gain or loss on the derivative financial instruments is reported as a component of OCI and is reclassified into income in the period or periods during which the hedged subsidiary is either sold or liquidated (or substantially liquidated). Gains and losses on the derivative financial instruments representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, if any, are recognized in current income. For derivative financial instruments not designated as hedging instruments, the gain or loss on the derivative financial instruments is recorded in operating expenses on the Consolidated Statements of Income. Cash flows from derivative financial instruments are classified as cash flows from operating activities on the Consolidated Statements of Cash Flows. See Note 8 of Notes to Consolidated Financial Statements for related disclosures. Property and Equipment Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Estimated useful lives are as follows: Category Term Leasehold improvements Shorter of remaining lease term or economic life, up to 15 years Furniture and equipment Up to 10 years Software 3 to 7 years Buildings and building improvements Up to 39 years When assets are sold or retired, the cost and related accumulated depreciation are removed from the accounts, with any resulting gain or loss recorded in operating expenses on the Consolidated Statements of Income. Costs of maintenance and repairs are expensed as incurred. Leases We determine if a long-term contractual obligation is a lease at inception. The majority of our operating leases relate to retail stores. We also lease some of our corporate facilities and distribution centers. These operating leases expire at various dates through fiscal 2042 . Most store leases have a five-year base period and include options that allow us to extend the lease term beyond the initial base period, subject to terms agreed upon at lease inception. Some leases also include early termination options, which can be exercised under specific conditions. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We record our lease liabilities at the present value of the lease payments not yet paid, discounted at the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. As the Company's leases do not provide an implicit interest rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We have elected the practical expedient to combine lease and nonlease components for our operating leases. We recognize operating lease cost over the estimated term of the lease, which includes options to extend lease terms that are reasonably certain of being exercised, starting when possession of the property is taken from the landlord, which normally includes a construction period prior to the store opening. When a lease contains a predetermined fixed escalation of the fixed rent, we recognize the related operating lease cost on a straight-line basis over the lease term. In addition, certain of our lease agreements include variable lease payments, such as payments based on a percentage of sales that are in excess of a predetermined level and/or increases based on a change in the consumer price index or fair market value. These variable lease payments are excluded from minimum lease payments and are included in the determination of net lease cost when it is probable that the expense has been incurred and the amount can be reasonably estimated. If an operating lease asset is impaired, the remaining operating lease asset will be amortized on a straight-line basis over the remaining lease term. See Note 12 of Notes to Consolidated Financial Statements for related disclosures. Revenue Recognition The Company’s revenues include merchandise sales at stores, online, and through franchise agreements. We also receive revenue sharing from our credit card agreement for private label and co-branded credit cards, and breakage revenue related to our gift cards, credit vouchers, and outstanding loyalty points, which are realized based upon historical redemption patterns. For online sales and catalog sales, the Company has elected to treat shipping and handling as fulfillment activities and not a separate performance obligation. Accordingly, we recognize revenue for our single performance obligation related to online sales and catalog sales at the time control of the merchandise passes to the customer, which is generally at the time of shipment. We also record an allowance for estimated merchandise returns based on our historical return patterns and various other assumptions that management believes to be reasonable, which is presented on a gross basis on our Consolidated Balance Sheets. Revenues are presented net of any taxes collected from customers and remitted to governmental authorities. We have credit card agreements with third parties to provide our customers with private label credit cards and co-branded credit cards (collectively, the “Credit Card programs"). Each private label credit card bears the logo of Old Navy, Gap, Banana Republic, or Athleta and can be used at any of our U.S. or Canadian store locations and online. The co-branded credit card is a VISA credit card bearing the logo of Old Navy, Gap, Banana Republic, or Athleta and can be used everywhere VISA credit cards are accepted. The Credit Card programs offer incentives to cardholders in the form of reward certificates upon the cumulative purchase of an established amount. Synchrony Financial ("Synchrony"), a third-party financing company, is the sole owner of the accounts and underwrites the credit issued under the Credit Card programs. Our agreement with Synchrony provides for certain payments to be made to us, including a share of revenue from the performance of the credit card portfolios and reimbursements of loyalty program discounts. We have identified separate performance obligations related to our credit card agreement that includes both providing a license and an obligation to redeem loyalty points issued under the loyalty rewards program. Our obligation to provide a license is satisfied when the subsequent sale or usage occurs and our obligation to redeem loyalty points is deferred until those loyalty points are redeemed. Prior to fiscal 2018, income received related to our Credit Card programs was recorded within operating expenses and cost of goods sold and occupancy expenses. With the adoption of new revenue recognition standard, income related to our Credit Card programs is now classified within net sales on our Consolidated Statements of Income. We defer revenue when cash payments are received in advance of performance for unsatisfied obligations related to our gift cards, credit vouchers, outstanding loyalty points, and reimbursements of loyalty program discounts associated with our credit card agreement. We also have franchise agreements with unaffiliated franchisees to operate Gap, Banana Republic, and Old Navy stores in a number of countries throughout Asia, Europe, Latin America, the Middle East, and Africa. Under these agreements, third parties operate, or will operate, stores that sell apparel and related products under our brand names. We have identified separate performance obligations related to our franchise agreements that include both providing our franchise partners with a license and an obligation to supply franchise partners with our merchandise. Our obligation to provide a license is satisfied when the subsequent sale or usage occurs and our obligation to supply franchise partners with our merchandise is satisfied when control transfers. See Note 3 of Notes to Consolidated Financial Statements for related disclosures. Classification of Expenses Cost of goods sold and occupancy expenses include the following: • the cost of merchandise; • inventory shortage and valuation adjustments; • freight charges; • online shipping and packaging costs; • cost associated with our sourcing operations, including payroll, benefits, and other administrative expenses; • lease and other occupancy related cost, depreciation, and amortization related to our store operations, distribution centers, information technology, and certain corporate functions; and • gains and losses associated with foreign currency derivative 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. Operating expenses include the following: • payroll, benefits, and other administrative expenses for our store operations, field management, and distribution centers; • payroll, benefits, and other administrative expenses for our corporate functions, including product design and development; • marketing; • information technology expenses and maintenance costs; • lease and other occupancy related cost, depreciation, and amortization for our corporate facilities; • research and development expenses; • gains and losses associated with foreign currency derivative contracts not designated as hedging instruments; • third party credit card processing fees; and • other expenses (income). Payroll, benefits, and other administrative expenses for our distribution centers recorded in operating expenses were $293 million , $316 million , and $297 million in fiscal 2019 , 2018 , and 2017 , respectively. Research and development costs described in Accounting Standards Codification ("ASC") No. 730 are expensed as incurred. These costs include expenditures for new innovative products and technological improvements for existing products and process innovation, which primarily consist of payroll and related benefits attributable to time spent on research and development activities. Research and development expenses recorded in operating expenses under ASC 730 were $41 million , $50 million , and $51 million in fiscal 2019 , 2018 , and 2017 , respectively. The classification of expenses varies across the apparel retail industry. Accordingly, our cost of goods sold and occupancy expenses and operating expenses may not be comparable to those of other companies. Impairment of Long-Lived Assets We review the carrying amount of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events that result in an impairment review include a significant decrease in the operating performance of the long-lived asset, or the decision to close a store, corporate facility, or distribution center. Long-lived assets are considered impaired if the carrying amount exceeds the estimated undiscounted future cash flows of the asset or asset group over the estimated remaining lease term. 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 at the store level. The asset group is comprised of both property and equipment and operating lease assets. For impaired assets, we recognize a loss equal to the difference between the carrying amount of the asset or asset group and its estimated fair value, which is recorded in operating expenses on the Consolidated Statements of Income. The estimated fair value of the asset or asset group is based on discounted future cash flows of the asset or asset group using a discount rate commensurate with the related risk. For operating lease assets, the Company determines the fair value of the assets by discounting the estimated market rental rates over the remaining term of the lease. These estimates can be affected by factors such as future store results, real estate demand, store closure plans, property specific discount rate and economic conditions that can be difficult to predict. See Note 7 of Notes to Consolidated Financial Statements for related disclosures. Impairment of Goodwill and Intangible Assets We review the carrying amount of goodwill and other indefinite-lived intangible assets for impairment annually in the fourth quarter of the fiscal year and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Events that result in an impairment review include significant changes in the business climate, declines in our operating results, or an expectation that the carrying amount may not be recoverable. We assess potential impairment by considering present economic conditions as well as future expectations. If goodwill is considered impaired, we recognize a loss equal to the difference between the carrying amount and the estimated fair value of the reporting unit. A trade name is considered impaired if the carrying amount exceeds its estimated fair value. If a trade name is considered impaired, we recognize a loss equal to the difference between the carrying amount and the estimated fair value of the trade name. The fair value of a trade name is determined using the relief from royalty method, which requires management to make assumptions and to apply judgment, including forecasting future sales and expenses, and selecting appropriate discount rates and royalty rates. Goodwill and other indefinite-lived intangible assets, including the trade names, are recorded in other long-term assets on the Consolidated Balance Sheets. See Note 4 of Notes to Consolidated Financial Statements for related disclosures. Advertising Costs associated with the production of advertising, such as writing, copy, printing, and other costs, are expensed as incurred. Costs associated with communicating advertising that has been produced, such as television and magazine costs, are expensed when the advertising event takes place. Advertising expense was $687 million , $650 million , and $673 million in fiscal 2019 , 2018 , and 2017 , respectively, and is recorded in operating expenses on the Consolidated Statements of Income. Share-Based Compensation Share-based compensation expense for stock options and other stock awards is determined based on the grant-date fair value. We use the Black-Scholes-Merton option-pricing model to determine the fair value of stock options, which requires the input of subjective assumptions regarding the expected term, expected volatility, dividend yield, and risk-free interest rate. For units granted whereby one share of common stock is issued for each unit as the unit vests (“Stock Units”), the fair value is determined based on the Company’s stock price on the date of grant less future expected dividends during the vesting period. For stock options and Stock Units, we recognize share-based compensation cost over the vesting period. We account for forfeitures as they occur. Share-based compensation expense is recorded primarily in operating expenses on the Consolidated Statements of Income over the period during which the employee is required to provide service in exchange for stock options and Stock Units. See Note 11 of Notes to Consolidated Financial Statements for related disclosures. Foreign Currency Our international subsidiaries primarily use local currencies as their functional currency and translate their assets and liabilities at the current rate of exchange in effect at the balance sheet date. Revenue and expenses from their operations are translated using rates that approximate those in effect during the period in which the transactions occur. The resulting gains and losses from translation are recorded on the Consolidated Statements of Comprehensive Income and in accumulated OCI on the Consolidated Statements of Stockholders’ Equity. Transaction gains and losses resulting from intercompany balances of a long-term investment nature are also classified as accumulated OCI. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are recorded in operating expenses on the Consolidated Statements of Income. The aggregate transaction gains and losses recorded in operating expenses on the Consolidated Statements of Income are as follows: Fiscal Year ($ in millions) 2019 2018 2017 Foreign currency transaction gain (loss) $ 1 $ (32 ) $ 31 Realized and unrealized gain (loss) from certain derivative financial instruments 4 34 (30 ) Net foreign exchange gain $ 5 $ 2 $ 1 Income Taxes Deferred income taxes are recorded for temporary differences between the tax basis of assets and liabilities and their reported amounts on the Consolidated Financial Statements. A valuation allowance is established against deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Our income tax expense includes changes in our estimated liability for exposures associated with our various tax filing positions. At any point in time, many tax years are subject to or in the process of being audited by various taxing authorities. To the extent our estimates of settlements change or the final tax outcome of these matters is different from the amounts recorded, such differences will impact the income tax provision in the period in which such determinations are made. The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties related to unrecognized tax benefits in operating expenses on the Consolidated Statements of Income. The Company has made an accounting policy election to treat taxes due on the global intangible low-taxed income (“GILTI”) of foreign subsidiaries as a current period expense. See Note 13 of Notes to Consolidated Financial Statements included for additional information on the impact of the U.S. Tax Cuts and Jobs Act of 2017 on income taxes. Earnings per Share Basic earnings per share is computed as net income divided by basic weighted-average number of common shares outstanding for the period. Diluted earnings per share is computed as net income divided by diluted weighted-average number of common shares outstanding for the period including common stock equivalents. Common stock equivalents consist of shares subject to share-based awards with exercise prices less than the average market price of our common stock for the period, to the extent their inclusion would be dilutive. Stock options and other stock awards that contain performance conditions are not included in the calculation of common stock equivalents until such performance conditions have been achieved. See Note 15 of Notes to Consolidated Financial Statements for related disclosures. Recent Accounting Pronouncements Except as noted below, the Company has considered all recent accounting pronouncements and has concluded that there are no recent accounting pronouncements that may have a material impact on its Consolidated Financial Statements, based on current information. Accounting Pronouncements Recently Adopted Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-02, Leases. Under the new guidance, lessees are required to recognize a lease liability and an operating lease asset at the commencement date. We adopted ASC 842 on February 3, 2019 using the optional transition method, which allows for the prospective application of the standard. As of the effective date, we recorded a decrease to opening retained earnings of $86 million , net of tax, which consisted primarily of impairment charges for certain store and operating lease assets. In addition, we elected the package of practical expedients permitted under the transition guidance within the standard, which allowed us to carry forward our historical lease classification, to not reassess prior conclusions related to initial direct costs, and to not reassess whether any expired or existing contracts are or contain leases. The adoption of ASC 842 resulted in the recording of operating lease assets and operating lease liabilities of $5.7 billion and $6.6 billion , respectively, on our Consolidated Balance Sheet as of February 3, 2019. See Note 12 of Notes to Consolidated Financial Statements for related disclosures. Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. The amendments are intended to better align an entity's risk management activities and financial reporting for hedging relationships through changes to the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. In addition, this guidance amends and expands disclosure requirements. We adopted this ASU on a prospective basis on February 3, 2019. The adoption of this standard did not have a material impact on our Consolidated Financial Statements. See Note 8 of Notes to Consolidated Financial Statements for related disclosures. Revenue from Contracts with Customers In May 2014, the FASB issued 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. On February 4, 2018, we adopted ASU No. 2014-09 and related amendments (collectively “ASC 606”) using the modified retrospective transition method and recorded an increase to opening retained earnings of $36 million , net of tax, related primarily to breakage revenue for gift cards and credit vouchers, outstanding loyalty points, and reimbursements of loyalty program discounts. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. For fiscal 2018, the impact of applying ASC 606 primarily resulted in an increase in net sales driven by a reclassification of $443 million for revenue sharing associated with our credit card programs and breakage revenue for gift cards and credit vouchers, which were previously recorded as a reduction to operating expenses on our Consolidated Statements of Income. Net sales for fiscal 2018 also increased by $176 million due to the reclassification of reimbursements of loyalty program discounts associated with our Credit Card programs, which were previously recorded as a reduction to cost of goods sold and occupancy expenses on our Consolidated Statements of Income. There were no other material impacts to the Consolidated Statements of Income resulting from the application of ASC 606 during fiscal 2018. See Note 3 of Notes to Consolidated Financial Statements for related disclosures. Accounting Pronouncements Not Yet Adopted ASU No. 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The ASU is intended to align the requirements for capitalization of implementation costs incurred in a cloud computing arrangement that is a service contract with the existing guidance for internal-use software. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2019. The guidance provides flexibility in adoption, allowing for either retrospective adjustment or prospective adjustment for all implementation costs incurred after the date of adoption. We do not expect that the adoption of this ASU will have a material impact on our Consolidated Financial Statements. ASU No. 2019-12, Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes. The ASU is intended to enhance and simplify aspects of the income tax accounting guidance in ASC 740 as part of the FASB's simplification initiative. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2020 with early adoption permitted. The Company is currently evaluating the impact this guidance may have on our Consolidated Financial Statements. |
Additional Financial Statement
Additional Financial Statement Information | 12 Months Ended |
Feb. 01, 2020 | |
Additional Financial Statement Information [Abstract] | |
Additional Financial Information Disclosure [Text Block] | Additional Financial Statement Information Cash and Cash Equivalents Cash and cash equivalents consist of the following: ($ in millions) February 1, February 2, Cash (1) $ 1,053 $ 708 Bank certificates of deposit and time deposits 286 341 Money market funds 19 26 Domestic commercial paper and other 6 6 Cash and cash equivalents $ 1,364 $ 1,081 __________ (1) Cash includes $61 million and $68 million of amounts in transit from banks for customer credit card and debit card transactions as of February 1, 2020 and February 2, 2019 , respectively. Short-Term Investments Short-term investments consist of the following: ($ in millions) February 1, February 2, U.S. agency securities $ 25 $ 22 Corporate securities 148 141 U.S. treasury securities 117 125 Short-term investments $ 290 $ 288 Other Current Assets Other current assets consist of the following: ($ in millions) February 1, February 2, Accounts receivable $ 316 $ 321 Prepaid income taxes 77 102 Prepaid minimum rent and occupancy expenses 148 157 Right of return asset 36 38 Derivative financial instruments 10 20 Other 119 113 Other current assets $ 706 $ 751 Property and Equipment Property and equipment are stated at cost less accumulated depreciation and consist of the following: ($ in millions) February 1, February 2, Leasehold improvements $ 2,923 $ 3,104 Furniture and equipment 2,802 2,732 Software 1,626 1,525 Land, buildings, and building improvements 1,408 1,123 Construction-in-progress 202 183 Property and equipment, at cost 8,961 8,667 Less: Accumulated depreciation (5,839 ) (5,755 ) Property and equipment, net of accumulated depreciation $ 3,122 $ 2,912 Depreciation expense for property and equipment was $554 million , $575 million , and $556 million for fiscal 2019 , 2018 , and 2017 , respectively. Interest of $7 million , $10 million , and $9 million related to assets under construction was capitalized in fiscal 2019 , 2018 , and 2017 , respectively. We recorded a total charge for the impairment of store assets of $98 million , $14 million , and $28 million for fiscal 2019 , 2018 , and 2017 , respectively, which is recorded in operating expenses on the Consolidated Statements of Income. See Note 7 of Notes to Consolidated Financial Statements for information regarding impairment charges. Other Long-Term Assets Other long-term assets consist of the following: ($ in millions) February 1, February 2, Long-term income tax-related assets $ 256 $ 151 Goodwill 109 109 Trade names 121 92 Restricted cash (1) 17 338 Other 136 196 Other long-term assets $ 639 $ 886 __________ (1) Fiscal 2018 included $320 million of consideration held by a third party in connection with the purchase of a building completed in fiscal 2019. No goodwill impairment or trade name impairment charges were recorded in fiscal 2019 , 2018 , or 2017 . Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: ($ in millions) February 1, February 2, Accrued compensation and benefits $ 291 $ 254 Deferred revenue 226 227 Short-term deferred rent and tenant allowances (1) — 101 Sales return allowance 74 78 Accrued advertising 57 41 Derivative financial instruments 10 11 Other 409 312 Accrued expenses and other current liabilities $ 1,067 $ 1,024 __________ (1) Beginning in fiscal 2019, short-term deferred rent and tenant allowances no longer reflects lease incentives due to the adoption of the new lease accounting standard. Prior period amounts have not been restated and continue to be reported under accounting standards in effect for those periods. Lease Incentives and Other Long-Term Liabilities Lease incentives and other long-term liabilities consist of the following: ($ in millions) February 1, February 2, Long-term deferred rent and tenant allowances (1) $ 50 $ 736 Long-term income tax-related liabilities 152 118 Long-term asset retirement obligations 56 52 Other 139 167 Lease incentives and other long-term liabilities $ 397 $ 1,073 __________ (1) Beginning in fiscal 2019, long-term deferred rent and tenant allowances no longer reflects lease incentives due to the adoption of the new lease accounting standard. Prior period amounts have not been restated and continue to be reported under accounting standards in effect for those periods. |
Revenue (Notes)
Revenue (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue The Company’s revenues include merchandise sales at stores, online, and through franchise agreements. We also receive revenue sharing from our credit card agreement for private label and co-branded credit cards, and breakage revenue related to our gift cards, credit vouchers, and outstanding loyalty points. Breakage revenue is recognized based upon historical redemption patterns. For online sales and catalog sales, the Company has elected to treat shipping and handling as fulfillment activities and not as a separate performance obligation. Accordingly, we recognize revenue for our single performance obligation related to online sales and catalog sales at the time control of the merchandise passes to the customer, which is generally at the time of shipment. We also record an allowance for estimated merchandise returns based on our historical return patterns and various other assumptions that management believes to be reasonable. Revenues are presented net of any taxes collected from customers and remitted to governmental authorities. Our credit card agreement provides for certain payments to be made to us, including a share of revenue from the performance of the credit card portfolios and reimbursements of loyalty program discounts. We have identified separate performance obligations related to our credit card agreement that include both providing a license and an obligation to redeem loyalty points issued under the loyalty rewards program. Our obligation to provide a license is satisfied when the subsequent sale or usage occurs and our obligation to redeem loyalty points is deferred until those loyalty points are redeemed. Income related to our credit card agreement is classified within net sales on our Consolidated Statements of Income. We also have franchise agreements with unaffiliated franchisees to operate Gap, Banana Republic, and Old Navy stores in a number of countries throughout Asia, Europe, Latin America, the Middle East, and Africa. Under these agreements, third parties operate, or will operate, stores that sell apparel and related products under our brand names. We have identified separate performance obligations related to our franchise agreements that include both providing our franchise partners with a license and an obligation to supply franchise partners with our merchandise. Our obligation to provide a license is satisfied when the subsequent sale or usage occurs and our obligation to supply franchise partners with our merchandise is satisfied when control of the merchandise transfers. As of February 1, 2020 and February 2, 2019 , there were no material contract liabilities related to our franchise agreements. We defer revenue when cash payments are received in advance of performance for unsatisfied obligations related to our gift cards, credit vouchers, outstanding loyalty points, and reimbursements of loyalty program discounts associated with our credit card agreement. For fiscal 2019, the opening balance of deferred revenue for these obligations was $227 million , of which $188 million was recognized as revenue during the period. The closing balance of deferred revenue related to gift cards, credit vouchers, outstanding loyalty points, and reimbursements of loyalty program discounts was $226 million as of February 1, 2020 . For fiscal 2018, the opening balance of deferred revenue for these obligations was $232 million , of which $200 million was recognized as revenue during the period. The closing balance of deferred revenue related to gift cards, credit vouchers, outstanding loyalty points, and reimbursements of loyalty program discounts was $227 million as of February 2, 2019 . We expect that the majority of our revenue deferrals as of February 1, 2020 will be recognized as revenue in the next 12 months as our performance obligations are satisfied. See Note 17 |
Goodwill and Trade Names
Goodwill and Trade Names | 12 Months Ended |
Feb. 01, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Trade Names The following goodwill and trade names are included in other long-term assets on the Consolidated Balance Sheets: ($ in millions) February 1, February 2, Goodwill (1) $ 109 $ 109 Trade names (2) $ 121 $ 92 __________ (1) Includes $99 million and $10 million related to Athleta and Intermix, respectively. (2) Includes $54 million , $38 million , and $29 million related to Athleta, Intermix, and Janie and Jack, respectively. Goodwill We assess whether events or circumstances indicate that goodwill is impaired every quarter, and evaluate goodwill impairment annually in the fourth quarter of the fiscal year. During the fourth quarter of fiscal 2019 , 2018, and 2017, we completed our annual impairment test of goodwill and did not recognize any impairment charges. Trade Names During the fourth quarter of fiscal 2019 , 2018, and 2017, we completed our annual impairment test of trade names and did not recognize any impairment charges. |
Debt
Debt | 12 Months Ended |
Feb. 01, 2020 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt As of February 1, 2020 and February 2, 2019 , the amount recorded in long-term debt on the Consolidated Balance Sheets for our $1.25 billion aggregate principal amount of 5.95 percent notes (the "Notes") due April 2021 was $1.25 billion and is equal to the aggregate principal amount of the Notes, net of the unamortized discount. As of February 1, 2020 and February 2, 2019 , the estimated fair value of the Notes was $1.29 billion and $1.30 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 year. Interest is payable semi-annually |
Credit Facilities
Credit Facilities | 12 Months Ended |
Feb. 01, 2020 | |
Line of Credit Facility [Abstract] | |
CreditFacilityDisclosure [Text Block] | Credit Facilities We have a $500 million , five -year, unsecured revolving credit facility (the "Facility"), which is scheduled to expire in May 2023 . As of February 1, 2020 , there were no borrowings and no material outstanding standby letters of credit under the Facility. 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 $56 million as of February 1, 2020 . As of February 1, 2020 , there were no borrowings under the Foreign Facilities. There were $18 million in bank guarantees issued and outstanding primarily related to store leases under the Foreign Facilities as of February 1, 2020 . We have bilateral unsecured standby letter of credit agreements that are uncommitted and do not have expiration dates. As of February 1, 2020 , we had $21 million in standby letters of credit issued under these agreements. The Facility contains financial and other covenants including, but not limited to, limitations on liens and subsidiary debt, as well as the maintenance of two financial ratios—a minimum annual fixed charge coverage ratio of 2.00 and a maximum annual leverage ratio of 2.25 . As of February 1, 2020 , we were in compliance with all such covenants. Violation of these covenants could result in a default under the Facility, which would permit the participating banks to terminate our ability to access the Facility for letters of credit and advances and require the immediate repayment of any outstanding advances. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Feb. 01, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company measures certain financial assets and liabilities at fair value on a recurring basis, including derivatives and available-for-sale debt securities. The Company categorizes financial assets and liabilities recorded at fair value based upon a three-level hierarchy that considers the related valuation techniques. There were no material purchases, sales, issuances, or settlements related to recurring level 3 measurements during fiscal 2019 or 2018 . There were no transfers of financial assets or liabilities into or out of level 1, level 2, and level 3 during fiscal 2019 or 2018 . Financial Assets and Liabilities Financial assets and liabilities measured at fair value on a recurring basis and cash equivalents held at amortized cost are as follows: Fair Value Measurements at Reporting Date Using ($ in millions) February 1, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 311 $ 19 $ 292 $ — Short-term investments 290 117 173 — Derivative financial instruments 10 — 10 — Deferred compensation plan assets 51 51 — — Other assets 2 — — 2 Total $ 664 $ 187 $ 475 $ 2 Liabilities: Derivative financial instruments $ 10 $ — $ 10 $ — Fair Value Measurements at Reporting Date Using ($ in millions) February 2, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 373 $ 26 $ 347 $ — Short-term investments 288 125 163 — Derivative financial instruments 20 — 20 — Deferred compensation plan assets 48 48 — — Other assets 2 — — 2 Total $ 731 $ 199 $ 530 $ 2 Liabilities: Derivative financial instruments $ 11 $ — $ 11 $ — We have highly liquid investments classified as cash equivalents, which are placed primarily in time deposits, money market funds, and commercial paper. With the exception of our available-for-sale investments noted below, we value these investments at their original purchase prices plus interest that has accrued at the stated rate. Our available-for-sale securities are comprised of investments in debt securities. These securities are recorded at fair value using market prices. As of February 1, 2020 and February 2, 2019 , the Company held $290 million and $288 million , respectively, of available-for-sale debt securities with maturity dates greater than three months and less than two years within short-term investments on the Consolidated Balance Sheets. In addition, as of February 1, 2020 and February 2, 2019 , the Company held $23 million and $16 million , respectively, of available-for-sale debt securities with maturities of less than three months at the time of purchase within cash and cash equivalents on the Consolidated Balance Sheets. Unrealized gains or losses on available-for-sale debt securities included in accumulated other comprehensive income were immaterial as of February 1, 2020 and February 2, 2019 . The Company regularly reviews its available-for-sale securities for other-than-temporary impairment. The Company did not consider any of its securities to be other-than-temporarily impaired and, accordingly, did not recognize any impairment loss during the fiscal years ended February 1, 2020 or February 2, 2019 . Derivative financial instruments primarily include foreign exchange forward contracts. See Note 8 of Notes to Consolidated Financial Statements for information regarding currencies hedged against the U.S. dollar. We maintain the Gap, Inc., Deferred Compensation Plan (“DCP”), which allows eligible employees to defer base compensation and bonus up to a maximum percentage, and non-employee directors to defer receipt of a portion of their Board fees. Plan investments are directed by participants and are recorded at market value and 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 on the Consolidated Balance Sheets. See Note 14 of Notes to Consolidated Financial Statements for information regarding employee benefit plans. Nonfinancial Assets Long-lived assets, which for us primarily consist of store assets and operating lease assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. 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 at the store level. For impaired assets, we recognize a loss equal to the difference between the carrying amount of the asset or asset group and its estimated fair value, which is recorded in operating expenses on the Consolidated Statements of Income. For operating lease assets, the Company determines the fair value of the assets by discounting the estimated market rental rates over the remaining term of the lease. These estimates can be affected by factors such as future store results, real estate demand, store closure plans, property specific discount rate and economic conditions that can be difficult to predict. These fair value measurements qualify as level 3 measurements in the fair value hierarchy. See Note 1 of Notes to Consolidated Financial Statements for further information regarding the impairment of long-lived assets. For our specialty flagship stores, we have historically assessed for impairment at the company-wide level. We historically treated flagships in this manner because we believed in their strategic importance to the brands and the store fleet by providing broad visibility and increased brand awareness both regionally and globally. In fiscal 2019, as a result of our work around specialty fleet rationalization, we reassessed our operating strategy for flagship stores including an evaluation of whether to exit or sublease certain flagship store locations. Due to this shift in strategy, the Company determined that, for flagship stores, the individual store represents the lowest level of independent identifiable cash flows. As a result, during fiscal 2019 we recorded an impairment charge of store assets and operating lease assets related to our flagship stores that indicated impairment of $73 million and $223 million , respectively, which was recorded in operating expenses on the Consolidated Statement of Income. The impairment change is primarily related to our New York specialty flagship store locations in Times Square for Old Navy Global and Gap Global after a formal decision was made in the fourth quarter of fiscal 2019 to pursue exiting those locations. In total and inclusive of the above, we recorded the following long-lived asset impairment charges included in operating expenses in the Consolidated Statements of Income: Fiscal Year ($ in millions) 2019 2018 2017 Operating lease assets: Flagship stores $ 223 $ — $ — Specialty fleet restructuring 2 — — Other 14 — — Total impairment charges of operating lease assets (1) $ 239 $ — $ — Store assets: Flagship stores $ 73 $ — $ — Specialty fleet restructuring 11 — — Other 14 14 28 Total impairment charges of store assets (2) $ 98 $ 14 $ 28 Other indefinite-lived intangible assets $ — $ — $ — Goodwill $ — $ — $ — Total impairment charges of long-lived assets $ 337 $ 14 $ 28 __________ (1) The impairment charge of operating lease assets reduced the then carrying amount of the applicable operating lease assets of $865 million to their fair value of $626 million during fiscal 2019 . (2) The impairment charge reduced the then carrying amount of the applicable store assets of $99 million , $15 million , and $30 million to their fair value of $1 million , $1 million , and $2 million during fiscal 2019 , 2018 , and 2017 , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Feb. 01, 2020 | |
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 Canadian dollar, Japanese yen, British pound, Mexican peso, Euro, Chinese yuan, and Taiwan dollar. 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 entity, 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. Net Investment Hedges We may 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 these subsidiaries. Other Derivatives Not Designated as Hedging Instruments We use foreign exchange forward contracts to hedge our market risk exposure associated with foreign currency exchange rate fluctuations for certain intercompany balances denominated in currencies other than the functional currency of the entity with the intercompany balance. The gain or loss on the derivative financial instruments that represent economic hedges, as well as the remeasurement of the underlying intercompany balances, is recorded in operating expenses on the Consolidated Statements of Income in the same period and generally offset each other. Outstanding Notional Amounts As of February 1, 2020 and February 2, 2019 , we had foreign exchange forward contracts outstanding in the following notional amounts: ($ in millions) February 1, February 2, Derivatives designated as cash flow hedges $ 501 $ 774 Derivatives not designated as hedging instruments 689 660 Total $ 1,190 $ 1,434 Quantitative Disclosures about Derivative Financial Instruments The fair values of foreign exchange forward contracts are as follows: ($ in millions) February 1, February 2, Derivatives designated as cash flow hedges: Other current assets $ 6 $ 15 Accrued expenses and other current liabilities 2 3 Derivatives not designated as hedging instruments: Other current assets 4 5 Accrued expenses and other current liabilities 8 8 Total derivatives in an asset position $ 10 $ 20 Total derivatives in a liability position $ 10 $ 11 All of the unrealized gains and losses from designated cash flow hedges as of February 1, 2020 will be recognized in income within the next 12 months at the then-current values, which may differ from the fair values as of February 1, 2020 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 on the Consolidated Balance Sheets and as such the fair values shown above represent gross amounts. The amounts subject to enforceable master netting arrangements are not material as of February 1, 2020 and February 2, 2019 . See Note 7 of Notes to 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 designated in a cash flow hedging relationship and net investment hedging relationships recorded in OCI, on a pre-tax basis, are as follows: Fiscal Year ($ in millions) 2019 2018 2017 Derivatives in cash flow hedging relationships: Gain (loss) recognized in other comprehensive income $ 18 $ 50 $ (60 ) Derivatives in net investment hedging relationships: Loss recognized in other comprehensive income $ — $ — $ (1 ) The pre-tax amounts recognized in income related to derivative instruments are as follows: Location and Amount of (Gain) Loss Recognized in Income Fiscal Year 2019 Fiscal Year 2018 Fiscal Year 2017 ($ in millions) Cost of goods sold and occupancy expenses Operating expenses Cost of goods sold and occupancy expenses Operating expenses Cost of goods sold and occupancy expenses Operating expenses Total amount of expense line items presented on the Consolidated Statements of Income in which the effects of derivatives are recorded $ 10,250 $ 5,559 $ 10,258 $ 4,960 $ 9,789 $ 4,587 (Gain) loss recognized in income: Derivatives designated as cash flow hedges $ (29 ) $ — $ (13 ) $ (1 ) $ — $ 1 Derivatives not designated as hedging instruments — (4 ) — (33 ) — 29 Total (gain) loss recognized in income $ (29 ) $ (4 ) $ (13 ) $ (34 ) $ — $ 30 For fiscal 2019 , 2018 , and 2017 , there were no amounts of gain or loss reclassified from accumulated OCI into income for derivative financial instruments in net investment hedging relationships, as we did not sell or liquidate (or substantially liquidate) any of our hedged subsidiaries during the periods. |
Common Stock
Common Stock | 12 Months Ended |
Feb. 01, 2020 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Common Stock Issuance and Repurchases | Common Stock Common and Preferred Stock The Company is authorized to issue 2.3 billion shares of common stock and 60 million shares of Class B common stock, which is convertible into shares of common stock on a share-for-share basis. Transfer of the Class B shares is restricted. In addition, the holders of the Class B common stock have six votes per share on most matters and are entitled to a lower cash dividend. No Class B shares have been issued as of February 1, 2020 . The Company is authorized to issue 30 million shares of one or more series of preferred stock, which has a par value of $0.05 per share, and to establish at the time of issuance the issue price, dividend rate, redemption price, liquidation value, conversion features, and such other terms and conditions of each series (including voting rights) as the Board of Directors deems appropriate, without further action on the part of the stockholders. No preferred shares have been issued as of February 1, 2020 . Share Repurchases Share repurchase activity is as follows: Fiscal Year ($ and shares in millions except average per share cost) 2019 2018 2017 Number of shares repurchased (1) 10 14 13 Total cost $ 200 $ 398 $ 315 Average per share cost including commissions $ 19.18 $ 28.93 $ 24.43 __________ (1) Excludes shares withheld to settle employee statutory tax withholding related to the vesting of stock units. In February 2016, the Board of Directors approved a $1.0 billion share repurchase authorization. The February 2016 repurchase program had $287 million remaining as of February 2, 2019 . In February 2019, the Board of Directors approved a new $1.0 billion share repurchase authorization which superseded and replaced the February 2016 repurchase program. The February 2019 repurchase program had $800 million remaining as of February 1, 2020 . All of the share repurchases were paid for as of February 1, 2020 , February 2, 2019 , and February 3, 2018 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Feb. 01, 2020 | |
Statement of Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Text Block] | Accumulated Other Comprehensive Income Changes in accumulated other comprehensive income by component, net of tax, are as follows: ($ in millions) Foreign Currency Translation Cash Flow Hedges Total Balance at February 2, 2019 $ 47 $ 6 $ 53 Foreign currency translation (2 ) — (2 ) Change in fair value of derivative financial instruments — 13 13 Amounts reclassified from accumulated OCI — (24 ) (24 ) Other comprehensive loss, net (2 ) (11 ) (13 ) Balance at February 1, 2020 $ 45 $ (5 ) $ 40 ($ in millions) Foreign Currency Translation Cash Flow Hedges Total Balance at February 3, 2018 $ 64 $ (28 ) $ 36 Foreign currency translation (20 ) — (20 ) Change in fair value of derivative financial instruments — 54 54 Amounts reclassified from accumulated OCI 3 (20 ) (17 ) Other comprehensive income (loss), net (17 ) 34 17 Balance at February 2, 2019 $ 47 $ 6 $ 53 ($ in millions) Foreign Currency Translation Cash Flow Hedges Total Balance at January 28, 2017 $ 29 $ 25 $ 54 Foreign currency translation 35 — 35 Change in fair value of derivative financial instruments — (51 ) (51 ) Amounts reclassified from accumulated OCI — (2 ) (2 ) Other comprehensive income (loss), net 35 (53 ) (18 ) Balance at February 3, 2018 $ 64 $ (28 ) $ 36 See Note 8 of Notes to Consolidated Financial Statements for additional disclosures about reclassifications out of accumulated other comprehensive income and their corresponding effects on the respective line items on the Consolidated Statements of Income. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Share-based compensation expense is as follows: Fiscal Year ($ in millions) 2019 2018 2017 Stock units $ 52 $ 71 $ 69 Stock options 12 16 14 Employee stock purchase plan 4 4 4 Share-based compensation expense 68 91 87 Less: Income tax benefit (23 ) (22 ) (35 ) Share-based compensation expense, net of tax $ 45 $ 69 $ 52 No material share-based compensation expense was capitalized in fiscal 2019 , 2018 , or 2017 . There were no material modifications made to our outstanding stock options and other stock awards in fiscal 2019 , 2018 , or 2017 . General Description of Stock Option and Other Stock Award Plans The 2016 Long-Term Incentive Plan (the "2016 Plan") was amended and restated as of February 22, 2017 and further amended and restated in May 2019. Under the 2016 Plan, nonqualified stock options and other stock awards are granted to officers, directors, eligible employees, and consultants at exercise prices or initial values equal to the fair market value of the Company’s common stock at the date of grant or as determined by the Compensation and Management Development Committee of the Board of Directors. As of February 1, 2020 , there were 251,586,781 shares that have been authorized for issuance under the 2016 Plan. Stock Units Under the 2016 Plan, Stock Units are granted to employees and members of the Board of Directors. Vesting generally occurs over a period of three to four years of continued service by the employee in equal annual installments. Vesting is immediate in the case of members of the Board of Directors. In some cases, Stock Unit vesting is also subject to the attainment of pre-determined performance metrics ("Performance Shares"). At the end of each reporting period, we evaluate the probability that the Performance Shares will vest. We record share-based compensation expense on an accelerated basis over a period of two to three years once granted, based on the grant-date fair value and the probability that the pre-determined performance metrics will be achieved. A summary of Stock Unit activity under the 2016 Plan for fiscal 2019 is as follows: Shares Weighted-Average Grant-Date Fair Value Per Share Balance as of February 2, 2019 8,085,259 $ 29.97 Granted 5,295,007 $ 21.93 Vested (2,527,515 ) $ 26.25 Forfeited (3,890,342 ) $ 25.30 Balance as of February 1, 2020 6,962,409 $ 24.33 A summary of additional information about Stock Units is as follows: Fiscal Year ($ in millions except per share amounts) 2019 2018 2017 Weighted-average fair value per share of Stock Units granted $ 21.93 $ 29.33 $ 21.81 Fair value of Stock Units vested $ 66 $ 58 $ 64 The aggregate intrinsic value of unvested Stock Units as of February 1, 2020 was $121 million . As of February 1, 2020 , there was $102 million (before any related tax benefit) of unrecognized share-based compensation expense related to unvested Stock Units, which is expected to be recognized over a weighted-average period of 2.1 years. Total unrecognized share-based compensation expense may be adjusted for future forfeitures as they occur. Stock Units Granted Based on Performance Metrics Under the 2016 Plan, some Stock Units are granted to employees only after the achievement of pre-determined performance metrics. At the end of each reporting period, we evaluate the probability that Stock Units will be granted. We record share-based compensation expense based on the probability that the performance metrics will be achieved, with an offsetting increase to current liabilities. We revalue the liability at the end of each reporting period and record an adjustment to share-based compensation expense as required based on the probability that the performance metrics will be achieved. A Stock Unit is granted upon certification of the performance metrics. At that time, the associated liability is reclassified to stockholders’ equity. Out of 5,295,007 Stock Units granted in fiscal 2019 , 1,787,189 Stock Units were granted based on satisfaction of performance metrics. There was no material liability related to potential Stock Units to be granted based on performance metrics as of February 1, 2020 . As of February 2, 2019 , there was a $2 million liability related to potential Stock Units to be granted based on performance metrics, which was recorded in accrued expenses and other current liabilities on the Consolidated Balance Sheet. Stock Options We have stock options outstanding under the 2016 Plan. Stock options generally expire the earlier of 10 years from the grant date, three months after employee termination, or one year after the date of an employee’s retirement or death. Vesting generally occurs over a period of four years of continued service by the employee, with 25 percent vesting on each of the four anniversary dates. The fair value of stock options issued during fiscal 2019 , 2018 , and 2017 was estimated on the date of grant using the following assumptions: Fiscal Year 2019 2018 2017 Expected term (in years) 4.2 3.9 3.9 Expected volatility 37.5 % 36.3 % 38.2 % Dividend yield 4.1 % 3.1 % 3.8 % Risk-free interest rate 2.2 % 2.5 % 1.7 % A summary of stock option activity under the 2016 Plan for fiscal 2019 is as follows: Shares Weighted- Average Exercise Price Per Share Balance as of February 2, 2019 10,685,422 $ 29.80 Granted 3,811,644 $ 24.09 Exercised (159,750 ) $ 23.33 Forfeited/Expired (2,901,294 ) $ 28.72 Balance as of February 1, 2020 11,436,022 $ 28.26 A summary of additional information about stock options is as follows: Fiscal Year ($ in millions except per share amounts) 2019 2018 2017 Weighted-average fair value per share of stock options granted $ 5.43 $ 7.75 $ 5.47 Aggregate intrinsic value of stock options exercised $ 1 $ 5 $ 1 Fair value of stock options vested $ 16 $ 14 $ 12 Information about stock options outstanding and exercisable as of February 1, 2020 is as follows: Intrinsic Value as of February 1, 2020 (in millions) Number of Shares as of February 1, 2020 Weighted- Average Remaining Contractual Life (in years) Weighted- Average Exercise Price Per Share Options Outstanding $ — 11,436,022 6.0 $ 28.26 Options Exercisable $ — 5,905,582 3.7 $ 30.12 Employee Stock Purchase Plan Under our Employee Stock Purchase Plan (“ESPP”), eligible U.S. and Canadian employees are able to purchase our common stock at 85 percent of the closing price on the New York Stock Exchange on the last day of the three-month purchase periods. Accordingly, compensation expense is recognized for an amount equal to the 15 percent discount. Employees pay for their stock purchases through payroll deductions at a rate equal to any whole percentage from 1 percent to 15 percent. There were 1,381,391 , 1,008,100 , and 1,113,640 shares issued under the ESPP in fiscal 2019 , 2018 , and 2017 , respectively. As of February 1, 2020 , there were 5,754,699 |
Leases
Leases | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Leases Net lease cost recognized on our Consolidated Statement of Income is summarized as follows: Fiscal Year ($ in millions) 2019 Operating lease cost $ 1,233 Variable lease cost 621 Sublease income (9 ) Net lease cost $ 1,845 As of February 1, 2020 , the maturities of lease liabilities based on the total minimum lease commitment amount including options to extend lease terms that are reasonably certain of being exercised are as follows: ($ in millions) Fiscal Year 2020 $ 1,185 2021 1,053 2022 952 2023 840 2024 747 Thereafter 3,172 Total minimum lease payments 7,949 Less: Interest (1,521 ) Present value of operating lease liabilities 6,428 Less: Current portion of operating lease liabilities (920 ) Long-term operating lease liabilities $ 5,508 During fiscal 2019 , non-cash operating lease asset additions, net of remeasurements and modifications, were $533 million . As of February 1, 2020 , the minimum lease commitment amount for operating leases signed but not yet commenced, primarily for retail stores, was $240 million . As of February 1, 2020 , the weighted-average remaining operating lease term was 8.7 years and the weighted-average discount rate was 4.7 percent for operating leases recognized on our Consolidated Financial Statements. As of February 1, 2020 , the Company's finance leases were not material to our Consolidated Financial Statements. See Note 1 of Notes to Consolidated Financial Statements for additional disclosures related to leases. In accordance with ASC 840, Leases, the aggregate minimum non-cancelable annual lease payments under operating leases in effect on February 2, 2019 were as follows: ($ in millions) Fiscal Year 2019 $ 1,156 2020 1,098 2021 892 2022 730 2023 539 Thereafter 1,520 Total minimum lease commitments $ 5,935 The total minimum lease commitment amount above does not include minimum sublease rent income of $12 million receivable in the future under non-cancelable sublease agreements. In addition, the total minimum lease commitment amount above excludes options to extend lease terms that are reasonably assured of being exercised. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For financial reporting purposes, components of income (loss) before income taxes are as follows: Fiscal Year ($ in millions) 2019 2018 2017 United States $ 550 $ 1,183 $ 1,301 Foreign (22 ) 139 123 Income before income taxes $ 528 $ 1,322 $ 1,424 The provision for income taxes consists of the following: Fiscal Year ($ in millions) 2019 2018 2017 Current: Federal $ 177 $ 164 $ 415 State 37 41 51 Foreign 44 49 49 Total current 258 254 515 Deferred: Federal (58 ) 55 55 State (20 ) 11 (5 ) Foreign (3 ) (1 ) 11 Total deferred (81 ) 65 61 Total provision $ 177 $ 319 $ 576 The difference between the effective tax rate and the U.S. federal statutory tax rate is as follows: Fiscal Year 2019 2018 2017 Federal statutory tax rate 21.0 % 21.0 % 33.7 % State and local income taxes, net of federal benefit 3.2 4.0 4.0 Tax impact of foreign operations 6.0 0.1 (1.1 ) Impact of TCJA of 2017 5.6 (3.2 ) 4.0 Excess foreign tax credits — 0.5 (0.7 ) Other (2.3 ) 1.7 0.5 Effective tax rate 33.5 % 24.1 % 40.4 % On December 22, 2017, the TCJA was enacted into law, which significantly changed existing U.S. tax law and included numerous provisions that affect our business, such as imposing a one-time transition tax on deemed repatriation of deferred foreign income, reducing the U.S. federal statutory tax rate, and adopting a territorial tax system. The TCJA includes a provision to tax GILTI of foreign subsidiaries, a base erosion anti-abuse tax (“BEAT”) measure that taxes certain payments between a U.S. corporation and its subsidiaries, and favorable tax treatment for certain foreign derived intangible income (“FDII”), effective for us beginning fiscal 2018. The Company has made an accounting policy election to treat taxes due on the GILTI inclusion as a current period expense. During fiscal 2019, we recorded a $30 million adjustment to increase our fiscal 2017 tax liability for additional guidance issued by the U.S. Treasury Department regarding the TCJA. In addition, the tax impact of foreign operations includes the effects of restructuring costs in certain foreign subsidiaries for which the Company was not permitted to recognize a tax benefit. During fiscal 2018 , we recorded a $33 million measurement period adjustment to reduce our fiscal 2017 provisional estimated net charge related to the transition tax and recorded certain other immaterial measurement period adjustments to reduce our fiscal 2017 provisional estimated impact of the remeasurement of our deferred tax assets and liabilities to reflect the TCJA rate reduction . During fiscal 2017 , we recorded a net $57 million charge related to the estimated effects of the TCJA primarily due to the impact of the one-time transition tax on the deemed repatriation of foreign income and the impact of the TCJA on deferred tax assets and liabilities. In addition, our estimate of the transition tax was also impacted by a change in the structure of certain legal entities in fiscal 2017 , which resulted in an overall net tax benefit of approximately $23 million . Deferred tax assets (liabilities) consist of the following: ($ in millions) February 1, 2020 February 2, Gross deferred tax assets: Deferred rent $ — $ 124 Operating lease liabilities 1,726 — Accrued payroll and related benefits 59 51 Accruals 132 106 Inventory capitalization and other adjustments 38 42 Deferred income 34 29 Federal, state, and foreign net operating losses 101 70 Other 37 40 Total gross deferred tax assets 2,127 462 Valuation allowance (199 ) (156 ) Total deferred tax assets, net of valuation allowance 1,928 306 Deferred tax liabilities: Depreciation and amortization (246 ) (180 ) Operating lease assets (1,448 ) — Unremitted earnings of certain foreign subsidiaries (2 ) (2 ) Unrealized net gain on cash flow hedges (2 ) (3 ) Other (9 ) (6 ) Total deferred tax liabilities (1,707 ) (191 ) Net deferred tax assets $ 221 $ 115 As of February 1, 2020 , we had approximately $54 million of state and $463 million of foreign loss carryovers in multiple taxing jurisdictions that could be utilized to reduce the tax liabilities of future years. The tax-effected loss carryovers were approximately $4 million for state and $97 million for foreign as of February 1, 2020 . We also had approximately $3 million of foreign tax credit carryovers as of February 1, 2020. We provided a valuation allowance of approximately $83 million against the deferred tax assets related to the foreign loss carryovers. We also provided a valuation allowance of approximately $108 million related to other foreign deferred tax assets and $8 million related to other federal deferred tax assets, including foreign tax credit carryovers. The state losses expire between fiscal 2022 and fiscal 2039 . Approximately $344 million of the foreign losses expire between fiscal 2020 and fiscal 2039 , and $119 million of the foreign losses do not expire. The foreign tax credits expire in fiscal 2029. The activity related to our unrecognized tax benefits is as follows: Fiscal Year ($ in millions) 2019 2018 2017 Balance at beginning of fiscal year $ 136 $ 118 $ 44 Increases related to current year tax positions 12 11 48 Prior year tax positions: Increases 11 29 28 Decreases (4 ) (6 ) (2 ) Lapse of Statute of Limitations (1 ) — (1 ) Cash settlements (1 ) (15 ) — Foreign currency translation (1 ) (1 ) 1 Balance at end of fiscal year $ 152 $ 136 $ 118 Of the $152 million , $136 million , and $118 million of total unrecognized tax benefits as of February 1, 2020 , February 2, 2019 , and February 3, 2018 , respectively, approximately $137 million , $125 million , and $106 million , respectively, represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. During fiscal 2019 , 2018, and 2017, interest expense of $6 million , $5 million , and $4 million , respectively, was recognized on the Consolidated Statements of Income relating to income tax liabilities. As of February 1, 2020 and February 2, 2019 , the Company had total accrued interest related to income tax liabilities of $16 million and $10 million , respectively. There were no accrued penalties related to income tax liabilities as of February 1, 2020 or February 2, 2019 . 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 also are 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 February 1, 2020 , it is reasonably possible that we will recognize a decrease in gross unrecognized tax benefits within the next 12 months of up to $3 million, primarily due to the closing of audits. If we do recognize such a decrease, the net impact on the Consolidated Statements of Income would not be material. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Feb. 01, 2020 | |
Retirement Benefits, Description [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Employee Benefit Plans We have two qualified defined contribution retirement plans, the GapShare 401(k) Plan and the GapShare Puerto Rico Plan (the “Plans”), which are available to employees who meet the eligibility requirements. The Plans permit eligible employees to make contributions up to the maximum limits allowable under the applicable Internal Revenue Codes. Under the Plans, we match, in cash, all or a portion of employees’ contributions under a predetermined formula. Our contributions vest immediately. Our matching contributions to the Plans were $46 million , $45 million , and $45 million in fiscal 2019 , 2018 , and 2017 , respectively. We maintain the Gap, Inc. Deferred Compensation Plan (DCP), which allows eligible employees to defer base compensation and bonus up to a maximum percentage, and non-employee directors to defer receipt of a portion of their Board fees. Plan investments are directed by participants and are recorded at market value and designated for the DCP. The fair value of the Company’s DCP assets is determined based on quoted market prices. As of February 1, 2020 and February 2, 2019 , the assets related to the DCP were $51 million and $48 million , respectively, and were recorded in other long-term assets on the Consolidated Balance Sheets. As of February 1, 2020 and February 2, 2019 , the corresponding liabilities related to the DCP were $51 million and $48 million , respectively, and were recorded in lease incentives and other long-term liabilities on the Consolidated Balance Sheets. We match all or a portion of employees’ contributions under a predetermined formula. Plan investments are elected by the participants, and investment returns are not guaranteed by the Company. Our matching contributions to the DCP in fiscal 2019 , 2018 , and 2017 were not material. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Feb. 01, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share Weighted-average number of shares used for earnings per share is as follows: Fiscal Year (shares in millions) 2019 2018 2017 Weighted-average number of shares—basic 376 385 393 Common stock equivalents 2 3 3 Weighted-average number of shares—diluted 378 388 396 The above computations of weighted-average number of shares—diluted exclude 14 million , 7 million , and 9 million shares related to stock options and other stock awards for fiscal 2019 , 2018 , and 2017 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 01, 2020 | |
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 Consolidated Financial Statements taken as a whole. As a multinational company, we are subject to various 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 February 1, 2020 , 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 February 1, 2020 and February 2, 2019 , 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 February 1, 2020 and February 2, 2019 was not material for any individual Action or in total. Subsequent to February 1, 2020 and through the filing date of March 17, 2020 , no information has become available that indicates a change is required that would be material to our 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 Consolidated Financial Statements taken as a whole. Old Navy Separation On February 28, 2019, the Company announced that its Board of Directors approved a plan to separate the Company into two independently publicly-traded companies. On January 16, 2020, the Company announced it no longer intends to separate, as the cost and complexity of splitting into two companies, combined with softer business performance, limited our ability to create appropriate value from separation. As of February 1, 2020 , there were $28 million of estimated costs related to contracts and commitments that were accrued as a result of the separation being canceled, expected to be paid in fiscal 2020. These amounts were recorded in accrued expenses and other current liabilities on the Consolidated Balance Sheet. Fire at the Fishkill Distribution Center In fiscal 2016, a fire occurred in one of the buildings at a Company-owned distribution center campus in Fishkill, New York. Total insurance proceeds for fiscal 2017 were $193 million , all of which were received by February 3, 2018 . A gain of $64 million was recognized in fiscal 2017, primarily related to property and equipment. The remaining settlement was recorded as a reduction to the insurance receivable balance in other current assets on the Consolidated Balance Sheet or cost of goods sold and occupancy expenses or operating expenses on the Consolidated Statement of Income, primarily offsetting fire-related costs incurred during fiscal 2017. During fiscal 2017, we allocated $66 million |
Segment Information
Segment Information | 12 Months Ended |
Feb. 01, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We identify our operating segments according to how our business activities are managed and evaluated. As of February 1, 2020 , our operating segments included: Old Navy Global, Gap Global, Banana Republic Global, Athleta, and Intermix. Each operating segment has a brand president who is responsible for various geographies and channels. Each of our brands serves customers through its store and online channels, allowing us to execute on our omni-channel strategy where customers can shop seamlessly across all of our brands in retail stores and online through desktop or mobile devices. We have determined that each of our operating segments share similar economic and other qualitative characteristics, and therefore the results of our operating segments are aggregated into one reportable segment as of February 1, 2020 . We continually monitor and review our segment reporting structure in accordance with authoritative guidance to determine whether any changes have occurred that would impact our reportable segments. Net sales by brand and region are as follows: ($ in millions) Old Navy Global Gap Global Banana Other (3) Total Percentage Fiscal 2019 (4) U.S. (1) $ 7,259 $ 2,723 $ 2,191 $ 1,225 $ 13,398 82 % Canada 587 349 215 2 1,153 7 Europe — 525 14 — 539 3 Asia 45 943 96 — 1,084 7 Other regions 92 94 23 — 209 1 Total $ 7,983 $ 4,634 $ 2,539 $ 1,227 $ 16,383 100 % ($ in millions) Old Navy Global Gap Global Banana Other (3) Total Percentage Fiscal 2018 (4) U.S. (1) $ 7,134 $ 2,990 $ 2,095 $ 1,121 $ 13,340 81 % Canada 584 379 227 3 1,193 7 Europe — 589 14 — 603 4 Asia 50 1,089 94 — 1,233 7 Other regions 72 113 26 — 211 1 Total $ 7,840 $ 5,160 $ 2,456 $ 1,124 $ 16,580 100 % ($ in millions) Old Navy Global Gap Global Banana Other (3) Total Percentage Fiscal 2017 (5) U.S. (1) $ 6,570 $ 3,065 $ 2,017 $ 916 $ 12,568 80 % Canada 547 398 225 3 1,173 7 Europe — 626 15 — 641 4 Asia 50 1,117 96 — 1,263 8 Other regions 71 112 27 — 210 1 Total $ 7,238 $ 5,318 $ 2,380 $ 919 $ 15,855 100 % __________ (1) U.S. includes the United States, Puerto Rico, and Guam. (2) Beginning on March 4, 2019, Banana Republic Global includes net sales for the Janie and Jack brand. (3) Primarily consists of net sales for the Athleta and Intermix brands as well as a portion of income related to our credit card agreement. Beginning in the third quarter of fiscal 2018, the Hill City brand is also included. Net sales for Athleta for fiscal 2019 , 2018 , and 2017 were $978 million , $881 million , and $737 million , respectively. (4) Net sales reflect the adoption of the new revenue recognition standard in fiscal 2018 . Prior period amounts have not been restated and continue to be reported under accounting standards in effect for those periods. (5) Net sales reflect the favorable impact of the calendar shift due to the 53rd week in fiscal 2017 . Net sales by region are allocated based on the location of the store where the customer paid for and received the merchandise or the distribution center or store from which the products were shipped. Long-lived assets, excluding long-term derivative financial instruments in an asset position and long-term deferred tax assets, by geographic location are as follows: ($ in millions) February 1, 2020 (2) February 2, U.S. (1) $ 7,169 $ 3,097 Other regions 1,773 586 Total long-lived assets $ 8,942 $ 3,683 __________ (1) U.S. includes the United States, Puerto Rico, and Guam. (2) Reflects the adoption of the new lease accounting standard. Prior period amounts have not been restated and continue to be reported under accounting standards in effect for those periods. |
Quarterly Information
Quarterly Information | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information [Text Block] | Quarterly Information (Unaudited) Selected quarterly and annual operating results are as follows: 13 Weeks Ended (2) 13 Weeks Ended (3) 13 Weeks Ended (4) 13 Weeks Ended (5) 52 Weeks Ended (6) ($ in millions except per share amounts) May 4, August 3, November 2, February 1, February 1, 2020 Net sales $ 3,706 $ 4,005 $ 3,998 $ 4,674 $ 16,383 Gross profit $ 1,344 $ 1,556 $ 1,559 $ 1,674 $ 6,133 Net income (loss) $ 227 $ 168 $ 140 $ (184 ) $ 351 Earnings (loss) per share—basic (1) $ 0.60 $ 0.44 $ 0.37 $ (0.49 ) $ 0.93 Earnings (loss) per share—diluted (1) $ 0.60 $ 0.44 $ 0.37 $ (0.49 ) $ 0.93 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended 52 Weeks Ended ($ in millions except per share amounts) May 5, August 4, November 3, February 2, February 2, 2019 Net sales $ 3,783 $ 4,085 $ 4,089 $ 4,623 $ 16,580 Gross profit $ 1,427 $ 1,627 $ 1,623 $ 1,645 $ 6,322 Net income $ 164 $ 297 $ 266 $ 276 $ 1,003 Earnings per share—basic (1) $ 0.42 $ 0.77 $ 0.69 $ 0.72 $ 2.61 Earnings per share—diluted (1) $ 0.42 $ 0.76 $ 0.69 $ 0.72 $ 2.59 __________ (1) Earnings per share ("EPS") was computed individually for each of the periods presented; therefore, the sum of the EPS for the quarters may not equal the total for the year. (2) During the first quarter of fiscal 2019 , there was a pre-tax gain of $191 million related to the sale of a building, which was recorded as a reduction to operating expenses and benefited diluted EPS by $0.37 . (3) During the second quarter of fiscal 2019 , the Company incurred $38 million of separation-related costs and $14 million for specialty fleet restructuring costs, both on a pre-tax basis, all of which was recorded in operating expenses. The impact of the separation-related and restructuring costs to diluted EPS was $0.08 and $0.03 , respectively. Additionally, during the second quarter of fiscal 2019 , there was an additional $30 million of tax expense related to an adjustment to our fiscal 2017 tax liability for additional guidance issued by the U.S. Treasury Department regarding the TCJA. The impact of the tax adjustment to diluted EPS was $0.08 . (4) During the third quarter of fiscal 2019 , the Company incurred $70 million for separation-related costs and $8 million for specialty fleet restructuring costs, both on a pre-tax basis, substantially all of which was recorded in operating expenses. The impact of the separation-related and restructuring costs to diluted EPS was $0.14 and $0.02 , respectively. (5) During the fourth quarter of fiscal 2019 , the Company incurred $296 million for impairment charges related to flagship stores, $189 million for separation-related costs including costs for the cancellation of our separation, and $38 million for specialty fleet restructuring costs, all on a pre-tax basis. Substantially all of the flagship impairment charges and separation-related costs were recorded in operating expenses and $17 million for specialty fleet restructuring costs was recorded in operating expenses. The impact of the impairment charges, separation-related costs, and restructuring costs to diluted EPS was $0.59 , $0.38 , and $0.10 , respectively. (6) In total, during fiscal year 2019 , the Company incurred $301 million of separation-related costs including costs for the cancellation of our separation, $296 million of flagship impairment charges, and $61 million of specialty fleet restructuring costs, all on a pre-tax basis. There was also a $191 million pre-tax gain on the sale of a building during fiscal 2019 . Additionally, there was a $30 million unfavorable impact to net income related to an adjustment to our fiscal 2017 tax liability for additional guidance issued by the U.S. Treasury Department regarding the TCJA. The total fiscal year 2019 net impact to diluted EPS was $1.04 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events On March 11, 2020 the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. As of the date of this filing, many of our Company-operated and franchise stores globally have been impacted by temporary closures or reduced store hours. We cannot reasonably estimate the length or severity of this pandemic, but we currently anticipate a material adverse impact on our consolidated financial position, consolidated results of operations, and consolidated cash flows in fiscal 2020. On March 5, 2020, the Company announced that Sonia Syngal, the current president and chief executive officer of Old Navy Global, will become the Company’s president and chief executive officer, effective March 23, 2020. In connection with the naming of Ms. Syngal as CEO, Robert J. Fisher will step down as the Company's interim CEO and as Chairman of the Board, effective as of Ms. Syngal's start date, and will continue in his role as a director of the Company. Bob L. Martin, a current director of the Company, will serve as Chairman of the Board, an executive role, effective March 23, 2020. On March 12, 2020, the Company announced that Katrina O’Connell will become the Company’s executive vice president and chief financial officer ("CFO"), effective March 23, 2020. The current CFO, Teri List-Stoll, will be stepping down and departing the Company after a transition period. |
Acquisition
Acquisition | 12 Months Ended |
Feb. 01, 2020 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisition On March 4, 2019, the Company acquired select assets of Gymboree Group, Inc. related to Janie and Jack, a premium children's clothing brand, through a bankruptcy auction. We purchased intellectual property and property and equipment at the Janie and Jack store locations. We assumed the leases for the majority of Janie and Jack stores and entered into a separate transaction to purchase Janie and Jack inventory. The purchase price for the net assets acquired was $69 million . The total purchase price was allocated to the net tangible and intangible assets acquired based on their estimated fair values. Such estimated fair values require management to make estimates and judgments, especially with respect to intangible assets. Amounts recorded for assets acquired and liabilities assumed on the acquisition date were as follows: ($ in millions) As of March 4, 2019 Inventory $ 34 Property and equipment 15 Operating lease assets 51 Intangible assets 37 Net assets acquired 137 Operating lease liabilities (64 ) Other liabilities (4 ) Total consideration paid $ 69 The results of operations for Janie and Jack since the date of acquisition were not material to our net income. |
Store Closing and Other Operati
Store Closing and Other Operating Costs Store Closing and Other Operating Costs (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Store Closing and Other Operating Cost On February 28, 2019, the Company announced plans to restructure the specialty fleet and revitalize the Gap brand, including closing about 230 Gap specialty stores during fiscal 2019 and fiscal 2020. The Company believes these actions will drive a healthier specialty fleet and will serve as a more appropriate foundation for brand revitalization. The Company expects that the actions will be substantially completed by the end of the Company’s 2020 fiscal year ending January 30, 2021. For the fiscal year ended February 1, 2020, we incurred $61 million of pre-tax costs related to the store closing and other operating cost. The summary of the costs incurred are as follows: (in millions) Recorded in cost of goods sold and occupancy expenses Recorded in operating expenses Costs Incurred in fiscal 2019 Operating lease cost (1) $ 15 $ 10 $ 25 Impairment of long-lived assets — 13 13 Employee related cost — 13 13 Other 7 3 10 Total store closing and other operating cost $ 22 $ 39 $ 61 __________ (1) In accordance with ASC 842, this cost includes lease termination fees and amortization expense. In addition to the total pre-tax amount incurred above, there was an unfavorable tax impact related to the restructuring costs incurred in certain foreign subsidiaries for which the Company was not able to recognize any tax benefit. As of February 1, 2020, the balance for liabilities related to restructuring is not material. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Organization | Organization The Gap, Inc., a Delaware corporation, is a global omni-channel retailer offering apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix, Janie and Jack, and Hill City brands. We have Company-operated stores in the United States, Canada, the United Kingdom, France, Ireland, Japan, Italy, China, Hong Kong, Taiwan, and Mexico. We also have franchise agreements with unaffiliated franchisees to operate Old Navy, Gap, and Banana Republic stores in over 30 other countries around the world. In addition, our products are available to customers online through Company-owned websites and through the use of third parties that provide logistics and fulfillment services. |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of The Gap, Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated. |
Fiscal Year and Presentation | Fiscal Year and Presentation Our fiscal year is a 52-week or 53-week period ending on the Saturday closest to January 31. The fiscal years ended February 1, 2020 ( fiscal 2019 ), and February 2, 2019 ( fiscal 2018 ) consisted of 52 weeks. The fiscal year ended February 3, 2018 ( fiscal 2017 ) consisted of 53 weeks. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash, Cash Equivalents and Short-Term Investments Cash includes funds deposited in banks and amounts in transit from banks for customer credit card and debit card transactions that process in less than seven days. All highly liquid investments with original maturities of three months or less at the time of purchase are classified as cash equivalents. Our cash equivalents are placed primarily in time deposits and money market funds. With the exception of our available-for-sale investments noted below, we value these investments at their original purchase prices plus interest that has accrued at the stated rate. Income related to these securities is recorded in interest income on the Consolidated Statements of Income. Highly liquid investments with original maturities of greater than three months and less than two years are classified as short-term investments. These investments are classified as available-for-sale and are recorded at fair value using market prices. Changes in the fair value of available-for-sale investments impact net income only when such securities are sold or an other-than-temporary impairment is recognized. Income related to these investments is recorded in interest income on the Consolidated Statements of Income. See Note 7 of Notes to Consolidated Financial Statements for disclosures related to fair value measurements. Restricted Cash As of February 1, 2020 and February 3, 2018, restricted cash primarily includes consideration that serves as collateral for our insurance obligations. As of February 2, 2019, restricted cash primarily includes consideration held by a third party in connection with the purchase of a building, as well as consideration that serves as collateral for our insurance obligations. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in our Consolidated Balance Sheets to the total shown on our Consolidated Statements of Cash Flows: ($ in millions) February 1, February 2, February 3, Cash and cash equivalents $ 1,364 $ 1,081 $ 1,783 Restricted cash included in other current assets — 1 1 Restricted cash included in other long-term assets (1) 17 338 15 Total cash, cash equivalents, and restricted cash shown on the Consolidated Statement of Cash Flows $ 1,381 $ 1,420 $ 1,799 __________ (1) Fiscal 2018 included $320 million of consideration held by a third party in connection with the purchase of a building that was completed in fiscal 2019. |
Merchandise Inventory | Merchandise Inventory We value inventory at the lower of cost or net realizable value, with cost determined using the weighted-average cost method. We record an adjustment when future estimated selling price is less than cost. We review our inventory levels in order to identify slow-moving merchandise and broken assortments (items no longer in stock in a sufficient range of sizes or colors) and use promotions and markdowns to clear merchandise. In addition, we estimate and accrue shortage for the period between the last physical count and the balance sheet date. |
Derivative Financial Instruments | Derivative Financial Instruments Derivative financial instruments are recorded at fair value on the Consolidated Balance Sheets as other current assets, other long-term assets, accrued expenses and other current liabilities, or lease incentives and other long-term liabilities. For derivative financial instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative financial instruments is reported as a component of other comprehensive income (“OCI”) and is recognized in income in the period in which the underlying transaction impacts the income statement. For derivative financial instruments that are designated and qualify as net investment hedges, the effective portion of the gain or loss on the derivative financial instruments is reported as a component of OCI and is reclassified into income in the period or periods during which the hedged subsidiary is either sold or liquidated (or substantially liquidated). Gains and losses on the derivative financial instruments representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, if any, are recognized in current income. For derivative financial instruments not designated as hedging instruments, the gain or loss on the derivative financial instruments is recorded in operating expenses on the Consolidated Statements of Income. Cash flows from derivative financial instruments are classified as cash flows from operating activities on the Consolidated Statements of Cash Flows. |
Property and Equipment | Property and Equipment Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Estimated useful lives are as follows: Category Term Leasehold improvements Shorter of remaining lease term or economic life, up to 15 years Furniture and equipment Up to 10 years Software 3 to 7 years Buildings and building improvements Up to 39 years When assets are sold or retired, the cost and related accumulated depreciation are removed from the accounts, with any resulting gain or loss recorded in operating expenses on the Consolidated Statements of Income. Costs of maintenance and repairs are expensed as incurred. |
Asset Retirement Obligations | |
Revenue Recognition | Revenue Recognition The Company’s revenues include merchandise sales at stores, online, and through franchise agreements. We also receive revenue sharing from our credit card agreement for private label and co-branded credit cards, and breakage revenue related to our gift cards, credit vouchers, and outstanding loyalty points, which are realized based upon historical redemption patterns. For online sales and catalog sales, the Company has elected to treat shipping and handling as fulfillment activities and not a separate performance obligation. Accordingly, we recognize revenue for our single performance obligation related to online sales and catalog sales at the time control of the merchandise passes to the customer, which is generally at the time of shipment. We also record an allowance for estimated merchandise returns based on our historical return patterns and various other assumptions that management believes to be reasonable, which is presented on a gross basis on our Consolidated Balance Sheets. Revenues are presented net of any taxes collected from customers and remitted to governmental authorities. We have credit card agreements with third parties to provide our customers with private label credit cards and co-branded credit cards (collectively, the “Credit Card programs"). Each private label credit card bears the logo of Old Navy, Gap, Banana Republic, or Athleta and can be used at any of our U.S. or Canadian store locations and online. The co-branded credit card is a VISA credit card bearing the logo of Old Navy, Gap, Banana Republic, or Athleta and can be used everywhere VISA credit cards are accepted. The Credit Card programs offer incentives to cardholders in the form of reward certificates upon the cumulative purchase of an established amount. Synchrony Financial ("Synchrony"), a third-party financing company, is the sole owner of the accounts and underwrites the credit issued under the Credit Card programs. Our agreement with Synchrony provides for certain payments to be made to us, including a share of revenue from the performance of the credit card portfolios and reimbursements of loyalty program discounts. We have identified separate performance obligations related to our credit card agreement that includes both providing a license and an obligation to redeem loyalty points issued under the loyalty rewards program. Our obligation to provide a license is satisfied when the subsequent sale or usage occurs and our obligation to redeem loyalty points is deferred until those loyalty points are redeemed. Prior to fiscal 2018, income received related to our Credit Card programs was recorded within operating expenses and cost of goods sold and occupancy expenses. With the adoption of new revenue recognition standard, income related to our Credit Card programs is now classified within net sales on our Consolidated Statements of Income. We defer revenue when cash payments are received in advance of performance for unsatisfied obligations related to our gift cards, credit vouchers, outstanding loyalty points, and reimbursements of loyalty program discounts associated with our credit card agreement. We also have franchise agreements with unaffiliated franchisees to operate Gap, Banana Republic, and Old Navy stores in a number of countries throughout Asia, Europe, Latin America, the Middle East, and Africa. Under these agreements, third parties operate, or will operate, stores that sell apparel and related products under our brand names. We have identified separate performance obligations related to our franchise agreements that include both providing our franchise partners with a license and an obligation to supply franchise partners with our merchandise. Our obligation to provide a license is satisfied when the subsequent sale or usage occurs and our obligation to supply franchise partners with our merchandise is satisfied when control transfers. |
Classification of Expenses | Classification of Expenses Cost of goods sold and occupancy expenses include the following: • the cost of merchandise; • inventory shortage and valuation adjustments; • freight charges; • online shipping and packaging costs; • cost associated with our sourcing operations, including payroll, benefits, and other administrative expenses; • lease and other occupancy related cost, depreciation, and amortization related to our store operations, distribution centers, information technology, and certain corporate functions; and • gains and losses associated with foreign currency derivative 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. Operating expenses include the following: • payroll, benefits, and other administrative expenses for our store operations, field management, and distribution centers; • payroll, benefits, and other administrative expenses for our corporate functions, including product design and development; • marketing; • information technology expenses and maintenance costs; • lease and other occupancy related cost, depreciation, and amortization for our corporate facilities; • research and development expenses; • gains and losses associated with foreign currency derivative contracts not designated as hedging instruments; • third party credit card processing fees; and • other expenses (income). Payroll, benefits, and other administrative expenses for our distribution centers recorded in operating expenses were $293 million , $316 million , and $297 million in fiscal 2019 , 2018 , and 2017 , respectively. Research and development costs described in Accounting Standards Codification ("ASC") No. 730 are expensed as incurred. These costs include expenditures for new innovative products and technological improvements for existing products and process innovation, which primarily consist of payroll and related benefits attributable to time spent on research and development activities. Research and development expenses recorded in operating expenses under ASC 730 were $41 million , $50 million , and $51 million in fiscal 2019 , 2018 , and 2017 , respectively. |
Rent Expense | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We review the carrying amount of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events that result in an impairment review include a significant decrease in the operating performance of the long-lived asset, or the decision to close a store, corporate facility, or distribution center. Long-lived assets are considered impaired if the carrying amount exceeds the estimated undiscounted future cash flows of the asset or asset group over the estimated remaining lease term. 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 at the store level. The asset group is comprised of both property and equipment and operating lease assets. For impaired assets, we recognize a loss equal to the difference between the carrying amount of the asset or asset group and its estimated fair value, which is recorded in operating expenses on the Consolidated Statements of Income. The estimated fair value of the asset or asset group is based on discounted future cash flows of the asset or asset group using a discount rate commensurate with the related risk. For operating lease assets, the Company determines the fair value of the assets by discounting the estimated market rental rates over the remaining term of the lease. These estimates can be affected by factors such as future store results, real estate demand, store closure plans, property specific discount rate and economic conditions that can be difficult to predict. |
Goodwill and Intangible Assets | Impairment of Goodwill and Intangible Assets We review the carrying amount of goodwill and other indefinite-lived intangible assets for impairment annually in the fourth quarter of the fiscal year and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Events that result in an impairment review include significant changes in the business climate, declines in our operating results, or an expectation that the carrying amount may not be recoverable. We assess potential impairment by considering present economic conditions as well as future expectations. If goodwill is considered impaired, we recognize a loss equal to the difference between the carrying amount and the estimated fair value of the reporting unit. A trade name is considered impaired if the carrying amount exceeds its estimated fair value. If a trade name is considered impaired, we recognize a loss equal to the difference between the carrying amount and the estimated fair value of the trade name. The fair value of a trade name is determined using the relief from royalty method, which requires management to make assumptions and to apply judgment, including forecasting future sales and expenses, and selecting appropriate discount rates and royalty rates. Goodwill and other indefinite-lived intangible assets, including the trade names, are recorded in other long-term assets on the Consolidated Balance Sheets. |
Pre-Opening Costs | |
Advertising | Advertising Costs associated with the production of advertising, such as writing, copy, printing, and other costs, are expensed as incurred. Costs associated with communicating advertising that has been produced, such as television and magazine costs, are expensed when the advertising event takes place. Advertising expense was $687 million , $650 million , and $673 million in fiscal 2019 , 2018 , and 2017 , respectively, and is recorded in operating expenses on the Consolidated Statements of Income. |
Share-Based Compensation | Share-Based Compensation Share-based compensation expense for stock options and other stock awards is determined based on the grant-date fair value. We use the Black-Scholes-Merton option-pricing model to determine the fair value of stock options, which requires the input of subjective assumptions regarding the expected term, expected volatility, dividend yield, and risk-free interest rate. For units granted whereby one share of common stock is issued for each unit as the unit vests (“Stock Units”), the fair value is determined based on the Company’s stock price on the date of grant less future expected dividends during the vesting period. For stock options and Stock Units, we recognize share-based compensation cost over the vesting period. We account for forfeitures as they occur. Share-based compensation expense is recorded primarily in operating expenses on the Consolidated Statements of Income over the period during which the employee is required to provide service in exchange for stock options and Stock Units. |
Unredeemed Gift Cards, Gift Certificates, and Credit Vouchers | . |
Earnings Per Share | Earnings per Share Basic earnings per share is computed as net income divided by basic weighted-average number of common shares outstanding for the period. Diluted earnings per share is computed as net income divided by diluted weighted-average number of common shares outstanding for the period including common stock equivalents. Common stock equivalents consist of shares subject to share-based awards with exercise prices less than the average market price of our common stock for the period, to the extent their inclusion would be dilutive. Stock options and other stock awards that contain performance conditions are not included in the calculation of common stock equivalents until such performance conditions have been achieved. |
Foreign Currency | Foreign Currency Our international subsidiaries primarily use local currencies as their functional currency and translate their assets and liabilities at the current rate of exchange in effect at the balance sheet date. Revenue and expenses from their operations are translated using rates that approximate those in effect during the period in which the transactions occur. The resulting gains and losses from translation are recorded on the Consolidated Statements of Comprehensive Income and in accumulated OCI on the Consolidated Statements of Stockholders’ Equity. Transaction gains and losses resulting from intercompany balances of a long-term investment nature are also classified as accumulated OCI. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are recorded in operating expenses on the Consolidated Statements of Income. The aggregate transaction gains and losses recorded in operating expenses on the Consolidated Statements of Income are as follows: Fiscal Year ($ in millions) 2019 2018 2017 Foreign currency transaction gain (loss) $ 1 $ (32 ) $ 31 Realized and unrealized gain (loss) from certain derivative financial instruments 4 34 (30 ) Net foreign exchange gain $ 5 $ 2 $ 1 |
Income Taxes | Income Taxes Deferred income taxes are recorded for temporary differences between the tax basis of assets and liabilities and their reported amounts on the Consolidated Financial Statements. A valuation allowance is established against deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Our income tax expense includes changes in our estimated liability for exposures associated with our various tax filing positions. At any point in time, many tax years are subject to or in the process of being audited by various taxing authorities. To the extent our estimates of settlements change or the final tax outcome of these matters is different from the amounts recorded, such differences will impact the income tax provision in the period in which such determinations are made. The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties related to unrecognized tax benefits in operating expenses on the Consolidated Statements of Income. The Company has made an accounting policy election to treat taxes due on the global intangible low-taxed income (“GILTI”) of foreign subsidiaries as a current period expense. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Except as noted below, the Company has considered all recent accounting pronouncements and has concluded that there are no recent accounting pronouncements that may have a material impact on its Consolidated Financial Statements, based on current information. Accounting Pronouncements Recently Adopted Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-02, Leases. Under the new guidance, lessees are required to recognize a lease liability and an operating lease asset at the commencement date. We adopted ASC 842 on February 3, 2019 using the optional transition method, which allows for the prospective application of the standard. As of the effective date, we recorded a decrease to opening retained earnings of $86 million , net of tax, which consisted primarily of impairment charges for certain store and operating lease assets. In addition, we elected the package of practical expedients permitted under the transition guidance within the standard, which allowed us to carry forward our historical lease classification, to not reassess prior conclusions related to initial direct costs, and to not reassess whether any expired or existing contracts are or contain leases. The adoption of ASC 842 resulted in the recording of operating lease assets and operating lease liabilities of $5.7 billion and $6.6 billion , respectively, on our Consolidated Balance Sheet as of February 3, 2019. See Note 12 of Notes to Consolidated Financial Statements for related disclosures. Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. The amendments are intended to better align an entity's risk management activities and financial reporting for hedging relationships through changes to the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. In addition, this guidance amends and expands disclosure requirements. We adopted this ASU on a prospective basis on February 3, 2019. The adoption of this standard did not have a material impact on our Consolidated Financial Statements. See Note 8 of Notes to Consolidated Financial Statements for related disclosures. Revenue from Contracts with Customers In May 2014, the FASB issued 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. On February 4, 2018, we adopted ASU No. 2014-09 and related amendments (collectively “ASC 606”) using the modified retrospective transition method and recorded an increase to opening retained earnings of $36 million , net of tax, related primarily to breakage revenue for gift cards and credit vouchers, outstanding loyalty points, and reimbursements of loyalty program discounts. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. For fiscal 2018, the impact of applying ASC 606 primarily resulted in an increase in net sales driven by a reclassification of $443 million for revenue sharing associated with our credit card programs and breakage revenue for gift cards and credit vouchers, which were previously recorded as a reduction to operating expenses on our Consolidated Statements of Income. Net sales for fiscal 2018 also increased by $176 million due to the reclassification of reimbursements of loyalty program discounts associated with our Credit Card programs, which were previously recorded as a reduction to cost of goods sold and occupancy expenses on our Consolidated Statements of Income. There were no other material impacts to the Consolidated Statements of Income resulting from the application of ASC 606 during fiscal 2018. See Note 3 of Notes to Consolidated Financial Statements for related disclosures. Accounting Pronouncements Not Yet Adopted ASU No. 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The ASU is intended to align the requirements for capitalization of implementation costs incurred in a cloud computing arrangement that is a service contract with the existing guidance for internal-use software. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2019. The guidance provides flexibility in adoption, allowing for either retrospective adjustment or prospective adjustment for all implementation costs incurred after the date of adoption. We do not expect that the adoption of this ASU will have a material impact on our Consolidated Financial Statements. ASU No. 2019-12, Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes. The ASU is intended to enhance and simplify aspects of the income tax accounting guidance in ASC 740 as part of the FASB's simplification initiative. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2020 with early adoption permitted. The Company is currently evaluating the impact this guidance may have on our Consolidated Financial Statements. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in our Consolidated Balance Sheets to the total shown on our Consolidated Statements of Cash Flows: ($ in millions) February 1, February 2, February 3, Cash and cash equivalents $ 1,364 $ 1,081 $ 1,783 Restricted cash included in other current assets — 1 1 Restricted cash included in other long-term assets (1) 17 338 15 Total cash, cash equivalents, and restricted cash shown on the Consolidated Statement of Cash Flows $ 1,381 $ 1,420 $ 1,799 __________ (1) Fiscal 2018 included $320 million of consideration held by a third party in connection with the purchase of a building that was completed in fiscal 2019. |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | |
Schedule of estimated property and equipment useful lives | Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Estimated useful lives are as follows: Category Term Leasehold improvements Shorter of remaining lease term or economic life, up to 15 years Furniture and equipment Up to 10 years Software 3 to 7 years Buildings and building improvements Up to 39 years |
Foreign Currency Disclosure [Text Block] | The aggregate transaction gains and losses recorded in operating expenses on the Consolidated Statements of Income are as follows: Fiscal Year ($ in millions) 2019 2018 2017 Foreign currency transaction gain (loss) $ 1 $ (32 ) $ 31 Realized and unrealized gain (loss) from certain derivative financial instruments 4 34 (30 ) Net foreign exchange gain $ 5 $ 2 $ 1 |
Additional Financial Statemen_2
Additional Financial Statement Information Additional Financial Statement Information (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Additional Financial Statement Information [Abstract] | |
Cash and Cash Equivalents [Table Text Block] | Cash and cash equivalents consist of the following: ($ in millions) February 1, February 2, Cash (1) $ 1,053 $ 708 Bank certificates of deposit and time deposits 286 341 Money market funds 19 26 Domestic commercial paper and other 6 6 Cash and cash equivalents $ 1,364 $ 1,081 __________ (1) Cash includes $61 million and $68 million of amounts in transit from banks for customer credit card and debit card transactions as of February 1, 2020 and February 2, 2019 , respectively. |
Debt Securities, Available-for-sale [Table Text Block] | Short-Term Investments Short-term investments consist of the following: ($ in millions) February 1, February 2, U.S. agency securities $ 25 $ 22 Corporate securities 148 141 U.S. treasury securities 117 125 Short-term investments $ 290 $ 288 |
Other Current Assets [Table Text Block] | Other current assets consist of the following: ($ in millions) February 1, February 2, Accounts receivable $ 316 $ 321 Prepaid income taxes 77 102 Prepaid minimum rent and occupancy expenses 148 157 Right of return asset 36 38 Derivative financial instruments 10 20 Other 119 113 Other current assets $ 706 $ 751 |
Property, Plant and Equipment [Table Text Block] | Property and equipment are stated at cost less accumulated depreciation and consist of the following: ($ in millions) February 1, February 2, Leasehold improvements $ 2,923 $ 3,104 Furniture and equipment 2,802 2,732 Software 1,626 1,525 Land, buildings, and building improvements 1,408 1,123 Construction-in-progress 202 183 Property and equipment, at cost 8,961 8,667 Less: Accumulated depreciation (5,839 ) (5,755 ) Property and equipment, net of accumulated depreciation $ 3,122 $ 2,912 |
Schedule of Other Assets, Noncurrent [Table Text Block] | Other long-term assets consist of the following: ($ in millions) February 1, February 2, Long-term income tax-related assets $ 256 $ 151 Goodwill 109 109 Trade names 121 92 Restricted cash (1) 17 338 Other 136 196 Other long-term assets $ 639 $ 886 |
Schedule of Accrued Liabilities [Table Text Block] | Accrued expenses and other current liabilities consist of the following: ($ in millions) February 1, February 2, Accrued compensation and benefits $ 291 $ 254 Deferred revenue 226 227 Short-term deferred rent and tenant allowances (1) — 101 Sales return allowance 74 78 Accrued advertising 57 41 Derivative financial instruments 10 11 Other 409 312 Accrued expenses and other current liabilities $ 1,067 $ 1,024 |
Lease Incentives and Other Long Term Liabilities [Table Text Block] | Lease incentives and other long-term liabilities consist of the following: ($ in millions) February 1, February 2, Long-term deferred rent and tenant allowances (1) $ 50 $ 736 Long-term income tax-related liabilities 152 118 Long-term asset retirement obligations 56 52 Other 139 167 Lease incentives and other long-term liabilities $ 397 $ 1,073 |
Goodwill and Trade Names (Table
Goodwill and Trade Names (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Goodwill [Line Items] | |
Goodwill and Intangible Assets | The following goodwill and trade names are included in other long-term assets on the Consolidated Balance Sheets: ($ in millions) February 1, February 2, Goodwill (1) $ 109 $ 109 Trade names (2) $ 121 $ 92 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Fair Value Disclosures [Abstract] | |
Long Lived Assets Impairment [Table Text Block] | In total and inclusive of the above, we recorded the following long-lived asset impairment charges included in operating expenses in the Consolidated Statements of Income: Fiscal Year ($ in millions) 2019 2018 2017 Operating lease assets: Flagship stores $ 223 $ — $ — Specialty fleet restructuring 2 — — Other 14 — — Total impairment charges of operating lease assets (1) $ 239 $ — $ — Store assets: Flagship stores $ 73 $ — $ — Specialty fleet restructuring 11 — — Other 14 14 28 Total impairment charges of store assets (2) $ 98 $ 14 $ 28 Other indefinite-lived intangible assets $ — $ — $ — Goodwill $ — $ — $ — Total impairment charges of long-lived assets $ 337 $ 14 $ 28 __________ (1) The impairment charge of operating lease assets reduced the then carrying amount of the applicable operating lease assets of $865 million to their fair value of $626 million during fiscal 2019 . (2) The impairment charge reduced the then carrying amount of the applicable store assets of $99 million , $15 million , and $30 million to their fair value of $1 million , $1 million , and $2 million during fiscal 2019 , 2018 , and 2017 , respectively. |
Financial Assets And Liabilities Measured At Fair Value On Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis and cash equivalents held at amortized cost are as follows: Fair Value Measurements at Reporting Date Using ($ in millions) February 1, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 311 $ 19 $ 292 $ — Short-term investments 290 117 173 — Derivative financial instruments 10 — 10 — Deferred compensation plan assets 51 51 — — Other assets 2 — — 2 Total $ 664 $ 187 $ 475 $ 2 Liabilities: Derivative financial instruments $ 10 $ — $ 10 $ — Fair Value Measurements at Reporting Date Using ($ in millions) February 2, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 373 $ 26 $ 347 $ — Short-term investments 288 125 163 — Derivative financial instruments 20 — 20 — Deferred compensation plan assets 48 48 — — Other assets 2 — — 2 Total $ 731 $ 199 $ 530 $ 2 Liabilities: Derivative financial instruments $ 11 $ — $ 11 $ — |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Foreign Exchange Forward Contracts Outstanding | As of February 1, 2020 and February 2, 2019 , we had foreign exchange forward contracts outstanding in the following notional amounts: ($ in millions) February 1, February 2, Derivatives designated as cash flow hedges $ 501 $ 774 Derivatives not designated as hedging instruments 689 660 Total $ 1,190 $ 1,434 |
Fair Values of Asset and Liability Derivative Financial Instruments | The fair values of foreign exchange forward contracts are as follows: ($ in millions) February 1, February 2, Derivatives designated as cash flow hedges: Other current assets $ 6 $ 15 Accrued expenses and other current liabilities 2 3 Derivatives not designated as hedging instruments: Other current assets 4 5 Accrued expenses and other current liabilities 8 8 Total derivatives in an asset position $ 10 $ 20 Total derivatives in a liability position $ 10 $ 11 |
Effects of Derivative Financial Instruments on OCI and Consolidated Statements of Income | The effective portion of gains and losses on foreign exchange forward contracts designated in a cash flow hedging relationship and net investment hedging relationships recorded in OCI, on a pre-tax basis, are as follows: Fiscal Year ($ in millions) 2019 2018 2017 Derivatives in cash flow hedging relationships: Gain (loss) recognized in other comprehensive income $ 18 $ 50 $ (60 ) Derivatives in net investment hedging relationships: Loss recognized in other comprehensive income $ — $ — $ (1 ) The pre-tax amounts recognized in income related to derivative instruments are as follows: Location and Amount of (Gain) Loss Recognized in Income Fiscal Year 2019 Fiscal Year 2018 Fiscal Year 2017 ($ in millions) Cost of goods sold and occupancy expenses Operating expenses Cost of goods sold and occupancy expenses Operating expenses Cost of goods sold and occupancy expenses Operating expenses Total amount of expense line items presented on the Consolidated Statements of Income in which the effects of derivatives are recorded $ 10,250 $ 5,559 $ 10,258 $ 4,960 $ 9,789 $ 4,587 (Gain) loss recognized in income: Derivatives designated as cash flow hedges $ (29 ) $ — $ (13 ) $ (1 ) $ — $ 1 Derivatives not designated as hedging instruments — (4 ) — (33 ) — 29 Total (gain) loss recognized in income $ (29 ) $ (4 ) $ (13 ) $ (34 ) $ — $ 30 |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | . |
Common Stock (Share Repurchases
Common Stock (Share Repurchases) (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Share Repurchase Activity | Share repurchase activity is as follows: Fiscal Year ($ and shares in millions except average per share cost) 2019 2018 2017 Number of shares repurchased (1) 10 14 13 Total cost $ 200 $ 398 $ 315 Average per share cost including commissions $ 19.18 $ 28.93 $ 24.43 __________ (1) Excludes shares withheld to settle employee statutory tax withholding related to the vesting of stock units. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Statement of Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in accumulated other comprehensive income by component, net of tax, are as follows: ($ in millions) Foreign Currency Translation Cash Flow Hedges Total Balance at February 2, 2019 $ 47 $ 6 $ 53 Foreign currency translation (2 ) — (2 ) Change in fair value of derivative financial instruments — 13 13 Amounts reclassified from accumulated OCI — (24 ) (24 ) Other comprehensive loss, net (2 ) (11 ) (13 ) Balance at February 1, 2020 $ 45 $ (5 ) $ 40 ($ in millions) Foreign Currency Translation Cash Flow Hedges Total Balance at February 3, 2018 $ 64 $ (28 ) $ 36 Foreign currency translation (20 ) — (20 ) Change in fair value of derivative financial instruments — 54 54 Amounts reclassified from accumulated OCI 3 (20 ) (17 ) Other comprehensive income (loss), net (17 ) 34 17 Balance at February 2, 2019 $ 47 $ 6 $ 53 ($ in millions) Foreign Currency Translation Cash Flow Hedges Total Balance at January 28, 2017 $ 29 $ 25 $ 54 Foreign currency translation 35 — 35 Change in fair value of derivative financial instruments — (51 ) (51 ) Amounts reclassified from accumulated OCI — (2 ) (2 ) Other comprehensive income (loss), net 35 (53 ) (18 ) Balance at February 3, 2018 $ 64 $ (28 ) $ 36 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-Based Compensation Expense | Share-based compensation expense is as follows: Fiscal Year ($ in millions) 2019 2018 2017 Stock units $ 52 $ 71 $ 69 Stock options 12 16 14 Employee stock purchase plan 4 4 4 Share-based compensation expense 68 91 87 Less: Income tax benefit (23 ) (22 ) (35 ) Share-based compensation expense, net of tax $ 45 $ 69 $ 52 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value of stock options issued during fiscal 2019 , 2018 , and 2017 was estimated on the date of grant using the following assumptions: Fiscal Year 2019 2018 2017 Expected term (in years) 4.2 3.9 3.9 Expected volatility 37.5 % 36.3 % 38.2 % Dividend yield 4.1 % 3.1 % 3.8 % Risk-free interest rate 2.2 % 2.5 % 1.7 % |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | Information about stock options outstanding and exercisable as of February 1, 2020 is as follows: Intrinsic Value as of February 1, 2020 (in millions) Number of Shares as of February 1, 2020 Weighted- Average Remaining Contractual Life (in years) Weighted- Average Exercise Price Per Share Options Outstanding $ — 11,436,022 6.0 $ 28.26 Options Exercisable $ — 5,905,582 3.7 $ 30.12 |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | A summary of stock option activity under the 2016 Plan for fiscal 2019 is as follows: Shares Weighted- Average Exercise Price Per Share Balance as of February 2, 2019 10,685,422 $ 29.80 Granted 3,811,644 $ 24.09 Exercised (159,750 ) $ 23.33 Forfeited/Expired (2,901,294 ) $ 28.72 Balance as of February 1, 2020 11,436,022 $ 28.26 |
Additional Information About Stock Unit Activity [Table Text Block] | A summary of additional information about stock options is as follows: Fiscal Year ($ in millions except per share amounts) 2019 2018 2017 Weighted-average fair value per share of stock options granted $ 5.43 $ 7.75 $ 5.47 Aggregate intrinsic value of stock options exercised $ 1 $ 5 $ 1 Fair value of stock options vested $ 16 $ 14 $ 12 |
Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | A summary of Stock Unit activity under the 2016 Plan for fiscal 2019 is as follows: Shares Weighted-Average Grant-Date Fair Value Per Share Balance as of February 2, 2019 8,085,259 $ 29.97 Granted 5,295,007 $ 21.93 Vested (2,527,515 ) $ 26.25 Forfeited (3,890,342 ) $ 25.30 Balance as of February 1, 2020 6,962,409 $ 24.33 |
Additional Information About Stock Unit Activity [Table Text Block] | A summary of additional information about Stock Units is as follows: Fiscal Year ($ in millions except per share amounts) 2019 2018 2017 Weighted-average fair value per share of Stock Units granted $ 21.93 $ 29.33 $ 21.81 Fair value of Stock Units vested $ 66 $ 58 $ 64 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As of February 1, 2020 , the maturities of lease liabilities based on the total minimum lease commitment amount including options to extend lease terms that are reasonably certain of being exercised are as follows: ($ in millions) Fiscal Year 2020 $ 1,185 2021 1,053 2022 952 2023 840 2024 747 Thereafter 3,172 Total minimum lease payments 7,949 Less: Interest (1,521 ) Present value of operating lease liabilities 6,428 Less: Current portion of operating lease liabilities (920 ) Long-term operating lease liabilities $ 5,508 |
Lease, Cost [Table Text Block] | Net lease cost recognized on our Consolidated Statement of Income is summarized as follows: Fiscal Year ($ in millions) 2019 Operating lease cost $ 1,233 Variable lease cost 621 Sublease income (9 ) Net lease cost $ 1,845 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | In accordance with ASC 840, Leases, the aggregate minimum non-cancelable annual lease payments under operating leases in effect on February 2, 2019 were as follows: ($ in millions) Fiscal Year 2019 $ 1,156 2020 1,098 2021 892 2022 730 2023 539 Thereafter 1,520 Total minimum lease commitments $ 5,935 The total minimum lease commitment amount above does not include minimum sublease rent income of $12 million receivable in the future under non-cancelable sublease agreements. In addition, the total minimum lease commitment amount above excludes options to extend lease terms that are reasonably assured of being exercised. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | For financial reporting purposes, components of income (loss) before income taxes are as follows: Fiscal Year ($ in millions) 2019 2018 2017 United States $ 550 $ 1,183 $ 1,301 Foreign (22 ) 139 123 Income before income taxes $ 528 $ 1,322 $ 1,424 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision for income taxes consists of the following: Fiscal Year ($ in millions) 2019 2018 2017 Current: Federal $ 177 $ 164 $ 415 State 37 41 51 Foreign 44 49 49 Total current 258 254 515 Deferred: Federal (58 ) 55 55 State (20 ) 11 (5 ) Foreign (3 ) (1 ) 11 Total deferred (81 ) 65 61 Total provision $ 177 $ 319 $ 576 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The difference between the effective tax rate and the U.S. federal statutory tax rate is as follows: Fiscal Year 2019 2018 2017 Federal statutory tax rate 21.0 % 21.0 % 33.7 % State and local income taxes, net of federal benefit 3.2 4.0 4.0 Tax impact of foreign operations 6.0 0.1 (1.1 ) Impact of TCJA of 2017 5.6 (3.2 ) 4.0 Excess foreign tax credits — 0.5 (0.7 ) Other (2.3 ) 1.7 0.5 Effective tax rate 33.5 % 24.1 % 40.4 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax assets (liabilities) consist of the following: ($ in millions) February 1, 2020 February 2, Gross deferred tax assets: Deferred rent $ — $ 124 Operating lease liabilities 1,726 — Accrued payroll and related benefits 59 51 Accruals 132 106 Inventory capitalization and other adjustments 38 42 Deferred income 34 29 Federal, state, and foreign net operating losses 101 70 Other 37 40 Total gross deferred tax assets 2,127 462 Valuation allowance (199 ) (156 ) Total deferred tax assets, net of valuation allowance 1,928 306 Deferred tax liabilities: Depreciation and amortization (246 ) (180 ) Operating lease assets (1,448 ) — Unremitted earnings of certain foreign subsidiaries (2 ) (2 ) Unrealized net gain on cash flow hedges (2 ) (3 ) Other (9 ) (6 ) Total deferred tax liabilities (1,707 ) (191 ) Net deferred tax assets $ 221 $ 115 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | The activity related to our unrecognized tax benefits is as follows: Fiscal Year ($ in millions) 2019 2018 2017 Balance at beginning of fiscal year $ 136 $ 118 $ 44 Increases related to current year tax positions 12 11 48 Prior year tax positions: Increases 11 29 28 Decreases (4 ) (6 ) (2 ) Lapse of Statute of Limitations (1 ) — (1 ) Cash settlements (1 ) (15 ) — Foreign currency translation (1 ) (1 ) 1 Balance at end of fiscal year $ 152 $ 136 $ 118 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Earnings Per Share [Abstract] | |
Weighted-Average Number of Shares | Weighted-average number of shares used for earnings per share is as follows: Fiscal Year (shares in millions) 2019 2018 2017 Weighted-average number of shares—basic 376 385 393 Common stock equivalents 2 3 3 Weighted-average number of shares—diluted 378 388 396 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Segment Reporting [Abstract] | |
Net Sales by Brand and Region | Net sales by brand and region are as follows: ($ in millions) Old Navy Global Gap Global Banana Other (3) Total Percentage Fiscal 2019 (4) U.S. (1) $ 7,259 $ 2,723 $ 2,191 $ 1,225 $ 13,398 82 % Canada 587 349 215 2 1,153 7 Europe — 525 14 — 539 3 Asia 45 943 96 — 1,084 7 Other regions 92 94 23 — 209 1 Total $ 7,983 $ 4,634 $ 2,539 $ 1,227 $ 16,383 100 % ($ in millions) Old Navy Global Gap Global Banana Other (3) Total Percentage Fiscal 2018 (4) U.S. (1) $ 7,134 $ 2,990 $ 2,095 $ 1,121 $ 13,340 81 % Canada 584 379 227 3 1,193 7 Europe — 589 14 — 603 4 Asia 50 1,089 94 — 1,233 7 Other regions 72 113 26 — 211 1 Total $ 7,840 $ 5,160 $ 2,456 $ 1,124 $ 16,580 100 % ($ in millions) Old Navy Global Gap Global Banana Other (3) Total Percentage Fiscal 2017 (5) U.S. (1) $ 6,570 $ 3,065 $ 2,017 $ 916 $ 12,568 80 % Canada 547 398 225 3 1,173 7 Europe — 626 15 — 641 4 Asia 50 1,117 96 — 1,263 8 Other regions 71 112 27 — 210 1 Total $ 7,238 $ 5,318 $ 2,380 $ 919 $ 15,855 100 % __________ (1) U.S. includes the United States, Puerto Rico, and Guam. (2) Beginning on March 4, 2019, Banana Republic Global includes net sales for the Janie and Jack brand. (3) Primarily consists of net sales for the Athleta and Intermix brands as well as a portion of income related to our credit card agreement. Beginning in the third quarter of fiscal 2018, the Hill City brand is also included. Net sales for Athleta for fiscal 2019 , 2018 , and 2017 were $978 million , $881 million , and $737 million , respectively. (4) Net sales reflect the adoption of the new revenue recognition standard in fiscal 2018 . Prior period amounts have not been restated and continue to be reported under accounting standards in effect for those periods. (5) Net sales reflect the favorable impact of the calendar shift due to the 53rd week in fiscal 2017 . |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | Long-lived assets, excluding long-term derivative financial instruments in an asset position and long-term deferred tax assets, by geographic location are as follows: ($ in millions) February 1, 2020 (2) February 2, U.S. (1) $ 7,169 $ 3,097 Other regions 1,773 586 Total long-lived assets $ 8,942 $ 3,683 __________ (1) U.S. includes the United States, Puerto Rico, and Guam. (2) Reflects the adoption of the new lease accounting standard. Prior period amounts have not been restated and continue to be reported under accounting standards in effect for those periods. |
Quarterly Financial Information
Quarterly Financial Information (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Data [Abstract] | |
Schedule Of Quarterly Data [Table] | Selected quarterly and annual operating results are as follows: 13 Weeks Ended (2) 13 Weeks Ended (3) 13 Weeks Ended (4) 13 Weeks Ended (5) 52 Weeks Ended (6) ($ in millions except per share amounts) May 4, August 3, November 2, February 1, February 1, 2020 Net sales $ 3,706 $ 4,005 $ 3,998 $ 4,674 $ 16,383 Gross profit $ 1,344 $ 1,556 $ 1,559 $ 1,674 $ 6,133 Net income (loss) $ 227 $ 168 $ 140 $ (184 ) $ 351 Earnings (loss) per share—basic (1) $ 0.60 $ 0.44 $ 0.37 $ (0.49 ) $ 0.93 Earnings (loss) per share—diluted (1) $ 0.60 $ 0.44 $ 0.37 $ (0.49 ) $ 0.93 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended 52 Weeks Ended ($ in millions except per share amounts) May 5, August 4, November 3, February 2, February 2, 2019 Net sales $ 3,783 $ 4,085 $ 4,089 $ 4,623 $ 16,580 Gross profit $ 1,427 $ 1,627 $ 1,623 $ 1,645 $ 6,322 Net income $ 164 $ 297 $ 266 $ 276 $ 1,003 Earnings per share—basic (1) $ 0.42 $ 0.77 $ 0.69 $ 0.72 $ 2.61 Earnings per share—diluted (1) $ 0.42 $ 0.76 $ 0.69 $ 0.72 $ 2.59 __________ (1) Earnings per share ("EPS") was computed individually for each of the periods presented; therefore, the sum of the EPS for the quarters may not equal the total for the year. (2) During the first quarter of fiscal 2019 , there was a pre-tax gain of $191 million related to the sale of a building, which was recorded as a reduction to operating expenses and benefited diluted EPS by $0.37 . (3) During the second quarter of fiscal 2019 , the Company incurred $38 million of separation-related costs and $14 million for specialty fleet restructuring costs, both on a pre-tax basis, all of which was recorded in operating expenses. The impact of the separation-related and restructuring costs to diluted EPS was $0.08 and $0.03 , respectively. Additionally, during the second quarter of fiscal 2019 , there was an additional $30 million of tax expense related to an adjustment to our fiscal 2017 tax liability for additional guidance issued by the U.S. Treasury Department regarding the TCJA. The impact of the tax adjustment to diluted EPS was $0.08 . (4) During the third quarter of fiscal 2019 , the Company incurred $70 million for separation-related costs and $8 million for specialty fleet restructuring costs, both on a pre-tax basis, substantially all of which was recorded in operating expenses. The impact of the separation-related and restructuring costs to diluted EPS was $0.14 and $0.02 , respectively. (5) During the fourth quarter of fiscal 2019 , the Company incurred $296 million for impairment charges related to flagship stores, $189 million for separation-related costs including costs for the cancellation of our separation, and $38 million for specialty fleet restructuring costs, all on a pre-tax basis. Substantially all of the flagship impairment charges and separation-related costs were recorded in operating expenses and $17 million for specialty fleet restructuring costs was recorded in operating expenses. The impact of the impairment charges, separation-related costs, and restructuring costs to diluted EPS was $0.59 , $0.38 , and $0.10 , respectively. (6) In total, during fiscal year 2019 , the Company incurred $301 million of separation-related costs including costs for the cancellation of our separation, $296 million of flagship impairment charges, and $61 million of specialty fleet restructuring costs, all on a pre-tax basis. There was also a $191 million pre-tax gain on the sale of a building during fiscal 2019 . Additionally, there was a $30 million unfavorable impact to net income related to an adjustment to our fiscal 2017 tax liability for additional guidance issued by the U.S. Treasury Department regarding the TCJA. The total fiscal year 2019 net impact to diluted EPS was $1.04 |
Acquisition (Tables)
Acquisition (Tables) | 1 Months Ended |
Mar. 04, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Amounts recorded for assets acquired and liabilities assumed on the acquisition date were as follows: ($ in millions) As of March 4, 2019 Inventory $ 34 Property and equipment 15 Operating lease assets 51 Intangible assets 37 Net assets acquired 137 Operating lease liabilities (64 ) Other liabilities (4 ) Total consideration paid $ 69 |
Store Closing and Other Opera_2
Store Closing and Other Operating Costs Store Closing and Other Operating Costs (Tables | 12 Months Ended |
Feb. 01, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | (in millions) Recorded in cost of goods sold and occupancy expenses Recorded in operating expenses Costs Incurred in fiscal 2019 Operating lease cost (1) $ 15 $ 10 $ 25 Impairment of long-lived assets — 13 13 Employee related cost — 13 13 Other 7 3 10 Total store closing and other operating cost $ 22 $ 39 $ 61 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | __________ (1) In accordance with ASC 842, this cost includes lease termination fees and amortization expense. In addition to the total pre-tax amount incurred above, there was an unfavorable tax impact related to the restructuring costs incurred in certain foreign subsidiaries for which the Company was not able to recognize any tax benefit. As of February 1, 2020, the balance for liabilities related to restructuring is not material. |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies Other Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Accounting Policies [Abstract] | |||
Payroll, benefits, and other administrative expenses for our distribution centers recorded in operating expenses | $ 293 | $ 316 | $ 297 |
Research and Development Expense | 41 | 50 | 51 |
Advertising expense | $ 687 | $ 650 | $ 673 |
Latest Lease Expiration Date | 2042 | ||
Leasehold Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated property and equipment useful lives | 15 years | ||
Furniture and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated property and equipment useful lives | 10 years | ||
Software [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated property and equipment useful lives | 7 years | ||
Software [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated property and equipment useful lives | 3 years | ||
Building and Building Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated property and equipment useful lives | 39 years |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies Foreign Exchange Gain/Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Accounting Policies [Abstract] | |||
Foreign currency transaction gain (loss) | $ 1 | $ (32) | $ 31 |
Realized and Unrealized gain (loss) from certain derivative financial instruments | 4 | 34 | (30) |
Net foreign exchange gain | $ 5 | $ 2 | $ 1 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies Deferred Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Feb. 01, 2020 | Feb. 02, 2019 | Nov. 02, 2019 | Feb. 03, 2018 | ||
Credit Card [Abstract] | |||||
Contract with Customer, Liability | $ 226 | [1] | $ 227 | $ 232 | |
Contract with Customer, Liability, Revenue Recognized | $ 188 | 200 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Contract with Customer Liabilities for Franchise Agreements | $ 0 | $ 0 | |||
[1] | Beginning in fiscal 2019, short-term deferred rent and tenant allowances no longer reflects lease incentives due to the adoption of the new lease accounting standard. Prior period amounts have not been restated and continue to be reported under accounting standards in effect for those periods. |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies Recent Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 03, 2019 | Feb. 02, 2019 | Feb. 03, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Revenue 606 Initial Application Period Cumulative Effect | $ 36 | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 36 | $ 2 | ||
Operating Lease, Right-of-Use Asset | 5,402 | 0 | ||
Operating Lease, Liability | 6,428 | |||
Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 36 | $ (3) | ||
Accounting Standards Update 2014-09 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (86) | |||
Revenue Sharing from Credit Card Programs and Breakage for Gift Cards and Credit Vouchers [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Credit Card Revenue | 443 | |||
Loyalty Program Discount Reimbursements [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Credit Card Revenue | $ 176 | |||
Accounting Standards Update 2016-02 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating Lease, Right-of-Use Asset | 5,700 | |||
Operating Lease, Liability | $ 6,600 |
Organization and Summary of S_8
Organization and Summary of Significant Accounting Policies Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Restricted Cash Related to Purchase of a Building | [1] | $ 320 | ||||
Cash and cash equivalents | $ 1,364 | 1,081 | $ 1,783 | |||
Restricted Cash, Current | 0 | 1 | 1 | |||
Restricted Cash, Noncurrent | 17 | [1] | 338 | 15 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 1,381 | $ 1,420 | $ 1,799 | $ 1,797 | ||
[1] | (1) Fiscal 2018 included $320 million of consideration held by a third party in connection with the purchase of a building completed in fiscal 2019. |
Additional Financial Statemen_3
Additional Financial Statement Information Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Additional Financial Statement Information [Abstract] | ||||
Cash | [1] | $ 1,053 | $ 708 | |
Bank certificates of deposit and time deposits | 286 | 341 | ||
Money market funds | 19 | 26 | ||
Domestic commercial paper | 6 | 6 | ||
Cash and cash equivalents | 1,364 | 1,081 | $ 1,783 | |
Amount in transit from banks for customer credit and debit card transactions | $ 61 | $ 68 | ||
[1] | Cash includes $61 million and $68 million of amounts in transit from banks for customer credit card and debit card transactions as of February 1, 2020 and February 2, 2019 , respectively. |
Additional Financial Statemen_4
Additional Financial Statement Information Short Term Investments (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Additional Financial Statement Information [Abstract] | ||
Financial Instruments, Owned, Mortgages, Mortgage-backed and Asset-backed Securities, at Fair Value | $ 25 | $ 22 |
Financial Instruments, Owned, Corporate Debt, at Fair Value | 148 | 141 |
Financial Instruments, Owned, US Government and Agency Obligations, at Fair Value | 117 | 125 |
Short-term Investments | $ 290 | $ 288 |
Additional Financial Statemen_5
Additional Financial Statement Information Other Current Assets (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Additional Financial Statement Information [Abstract] | ||
Accounts receivable | $ 316 | $ 321 |
Prepaid income taxes | 77 | 102 |
Prepaid minimum rent and occupancy expenses | 148 | 157 |
Right of return asset | 36 | 38 |
Derivative financial instruments | 10 | 20 |
Other | 119 | 113 |
Other current assets | $ 706 | $ 751 |
Additional Financial Statemen_6
Additional Financial Statement Information Property and Equipment (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | $ 8,961 | $ 8,667 |
Less: Accumulated depreciation | (5,839) | (5,755) |
Property and equipment, net of accumulated depreciation | 3,122 | 2,912 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 2,923 | 3,104 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 2,802 | 2,732 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 1,626 | 1,525 |
Land, Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 1,408 | 1,123 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | $ 202 | $ 183 |
Additional Financial Statemen_7
Additional Financial Statement Information Other Long-Term Assets (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Additional Financial Statement Information [Abstract] | |||||
Long-Term Tax-Related Assets | $ 256 | $ 151 | |||
Goodwill (1) | [1] | 109 | 109 | ||
Trade names | [2] | 121 | 92 | ||
Restricted Cash, Noncurrent | 17 | [3] | 338 | $ 15 | |
Other | 136 | 196 | |||
Other long-term assets | $ 639 | $ 886 | |||
[1] | Includes $99 million and $10 million related to Athleta and Intermix, respectively. | ||||
[2] | Includes $54 million , $38 million , and $29 million related to Athleta, Intermix, and Janie and Jack, respectively. | ||||
[3] | (1) Fiscal 2018 included $320 million of consideration held by a third party in connection with the purchase of a building completed in fiscal 2019. |
Additional Financial Statemen_8
Additional Financial Statement Information Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Additional Financial Statement Information [Abstract] | ||||
Accrued compensation and benefits | $ 291 | $ 254 | ||
Contract with Customer, Liability | 226 | [1] | 227 | $ 232 |
Prior period amount not restated for ASC 606 | 227 | |||
Short-term deferred rent and tenant allowances (1) | 0 | 101 | ||
Customer Refund Liability, Current | 74 | 78 | ||
Accrued Advertising, Current | 57 | 41 | ||
Derivative Liability, Current | 10 | 11 | ||
Other | 409 | 312 | ||
Accrued expenses and other current liabilities | $ 1,067 | $ 1,024 | ||
[1] | Beginning in fiscal 2019, short-term deferred rent and tenant allowances no longer reflects lease incentives due to the adoption of the new lease accounting standard. Prior period amounts have not been restated and continue to be reported under accounting standards in effect for those periods. |
Additional Financial Statemen_9
Additional Financial Statement Information Lease Incentives and Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 | |
Additional Financial Statement Information [Abstract] | |||
Long-term deferred rent and tenant allowances (1) | $ 50 | [1] | $ 736 |
Long-term income tax-related liabilities | 152 | 118 | |
Long-term asset retirement obligations | 56 | 52 | |
Other | 139 | 167 | |
Lease incentives and other long-term liabilities | $ 397 | $ 1,073 | |
[1] | Beginning in fiscal 2019, long-term deferred rent and tenant allowances no longer reflects lease incentives due to the adoption of the new lease accounting standard. Prior period amounts have not been restated and continue to be reported under accounting standards in effect for those periods. |
Additional Financial Stateme_10
Additional Financial Statement Information Sales Return Allowance (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Sales Return Allowance [Line Items] | ||
Right of return asset | $ 36 | $ 38 |
Customer Refund Liability, Current | $ 74 | $ 78 |
Additional Financial Stateme_11
Additional Financial Statement Information Additional Financial Statement Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Additional Financial Statement Information [Abstract] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | $ 0 | $ 0 |
Depreciation | 554 | 575 | 556 |
Interest Costs Capitalized | 7 | 10 | 9 |
Other Asset Impairment Charges | 98 | 14 | 28 |
Total Impairment Charges | 337 | 14 | 28 |
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Feb. 01, 2020 | Feb. 02, 2019 | Nov. 02, 2019 | Feb. 03, 2018 | ||
Revenue from Contract with Customer [Abstract] | |||||
Contract with Customer Liabilities for Franchise Agreements | $ 0 | $ 0 | |||
Contract with Customer, Liability | $ 226 | [1] | 227 | $ 232 | |
Contract with Customer, Liability, Revenue Recognized | $ 188 | $ 200 | |||
[1] | Beginning in fiscal 2019, short-term deferred rent and tenant allowances no longer reflects lease incentives due to the adoption of the new lease accounting standard. Prior period amounts have not been restated and continue to be reported under accounting standards in effect for those periods. |
Goodwill and Trade Names (Detai
Goodwill and Trade Names (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill (1) | [1] | $ 109 | $ 109 |
Trade names (2) | [2] | $ 121 | $ 92 |
[1] | Includes $99 million and $10 million related to Athleta and Intermix, respectively. | ||
[2] | Includes $54 million , $38 million , and $29 million related to Athleta, Intermix, and Janie and Jack, respectively. |
Goodwill and Trade Names - Addi
Goodwill and Trade Names - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Business Acquisition [Line Items] | ||||
Goodwill (1) | [1] | $ 109 | $ 109 | |
Trade names (2) | [2] | 121 | 92 | |
Goodwill, Impairment Loss | 0 | 0 | $ 0 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 0 | $ 0 | |
Intermix [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill (1) | 10 | 10 | ||
Trade names (2) | 38 | 38 | ||
Goodwill, Impairment Loss | 0 | 0 | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | |||
Athleta [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill (1) | 99 | 99 | ||
Trade names (2) | 54 | 54 | ||
Goodwill, Impairment Loss | 0 | 0 | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | |||
Janie and Jack [Member] | ||||
Business Acquisition [Line Items] | ||||
Trade names (2) | 29 | $ 29 | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | |||
[1] | Includes $99 million and $10 million related to Athleta and Intermix, respectively. | |||
[2] | Includes $54 million , $38 million , and $29 million related to Athleta, Intermix, and Janie and Jack, respectively. |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Debt Instrument [Line Items] | ||
Total long-term debt, less current portion | $ 1,249 | $ 1,249 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
5.95 Percent Notes Due April 2021 | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount of notes issued | $ 1,250 | |
Notes, interest rate | 5.95% | |
Estimated fair value | $ 1,290 | $ 1,300 |
Debt Instrument, Frequency of Periodic Payment | semi-annually | |
Five Year Unsecured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 |
Credit Facilities Credit Facili
Credit Facilities Credit Facilities (Details) $ in Millions | Feb. 01, 2020USD ($) |
Debt Instrument [Line Items] | |
Minimum Annual Fixed Coverage Ratio | 2 |
Maximum Annual Leverage Ratio | 2.25 |
Five Year Unsecured Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 |
Line of Credit Facility, Amount Outstanding | 0 |
Letters of Credit Outstanding, Amount | 0 |
Foreign Facilities [Member] | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 56 |
Line of Credit Facility, Amount Outstanding | 0 |
Bank Guarantees Related to Leases | 18 |
Standby Letters of Credit [Member] | |
Debt Instrument [Line Items] | |
Letters of Credit Outstanding, Amount | $ 21 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Assets: | ||
Cash equivalents | $ 311 | $ 373 |
Investments, Fair Value Disclosure | 288 | |
Available-for-sale Securities | 290 | 288 |
Derivative financial instruments | 10 | 20 |
Deferred compensation plan assets | 51 | 48 |
Debt Securities, Available-for-sale | 2 | 2 |
Assets, Fair Value Disclosure | 664 | 731 |
Liabilities: | ||
Derivative Liability, Fair Value, Gross Liability | 10 | 11 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Cash equivalents | 19 | 26 |
Investments, Fair Value Disclosure | 125 | |
Available-for-sale Securities | 117 | |
Derivative financial instruments | 0 | 0 |
Deferred compensation plan assets | 51 | 48 |
Debt Securities, Available-for-sale | 0 | 0 |
Assets, Fair Value Disclosure | 187 | 199 |
Liabilities: | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Cash equivalents | 292 | 347 |
Investments, Fair Value Disclosure | 163 | |
Available-for-sale Securities | 173 | |
Derivative financial instruments | 10 | 20 |
Deferred compensation plan assets | 0 | 0 |
Debt Securities, Available-for-sale | 0 | 0 |
Assets, Fair Value Disclosure | 475 | 530 |
Liabilities: | ||
Derivative Liability, Fair Value, Gross Liability | 10 | 11 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Investments, Fair Value Disclosure | 0 | |
Available-for-sale Securities | 0 | |
Derivative financial instruments | 0 | 0 |
Deferred compensation plan assets | 0 | 0 |
Debt Securities, Available-for-sale | 2 | 2 |
Assets, Fair Value Disclosure | 2 | 2 |
Liabilities: | ||
Derivative Liability, Fair Value, Gross Liability | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Fair Value Of Financial Instruments [Line Items] | |||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 0 | 0 |
Other Asset Impairment Charges | 98 | 14 | 28 |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | 0 | |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | |
FairValueAssetsLevel3TransfersAmount | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements | 0 | 0 | |
Available-for-sale Securities | 290 | 288 | |
Cash and Equivalents portion of Available for Sale Securities | 23 | 16 | |
Debt Securities, Available-for-sale, Unrealized Gain (Loss) | 0 | ||
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale | 0 | ||
Store Assets [Member] | |||
Fair Value Of Financial Instruments [Line Items] | |||
Flagship Impairment | 73 | 0 | 0 |
Impaired Asset at Fair Value | 1 | 1 | 2 |
Long Lived Asset at Carrying Value | 99 | 15 | 30 |
Other Asset Impairment Charges | 14 | 14 | 28 |
Operating lease Impairment [Member] | |||
Fair Value Of Financial Instruments [Line Items] | |||
Flagship Impairment | 223 | 0 | 0 |
Impaired Asset at Fair Value | 626 | ||
Long Lived Asset at Carrying Value | 865 | ||
Other Asset Impairment Charges | $ 14 | $ 0 | $ 0 |
Fair Value Measurements Long Li
Fair Value Measurements Long Lived Assets Impairment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Long Lived Assets [Line Items] | ||||
Cash and cash equivalents | $ 1,364 | $ 1,081 | $ 1,783 | |
Current Fiscal Year End Date | --02-01 | |||
Other Asset Impairment Charges | $ 98 | 14 | 28 | |
Goodwill, Impairment Loss | 0 | 0 | 0 | |
Total Impairment Charges | 337 | 14 | 28 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 0 | 0 | |
Operating lease Impairment [Member] | ||||
Long Lived Assets [Line Items] | ||||
Long Lived Asset at Carrying Value | 865 | |||
Impaired Asset at Fair Value | 626 | |||
Flagship Impairment | 223 | 0 | 0 | |
Restructuring Costs and Asset Impairment Charges | 2 | 0 | 0 | |
Other Asset Impairment Charges | 14 | 0 | 0 | |
Total Impairment Charges | [1] | 239 | 0 | 0 |
Store Assets [Member] | ||||
Long Lived Assets [Line Items] | ||||
Long Lived Asset at Carrying Value | 99 | 15 | 30 | |
Impaired Asset at Fair Value | 1 | 1 | 2 | |
Flagship Impairment | 73 | 0 | 0 | |
Restructuring Costs and Asset Impairment Charges | 11 | 0 | 0 | |
Other Asset Impairment Charges | 14 | 14 | 28 | |
Total Impairment Charges | [2] | $ 98 | $ 14 | $ 28 |
[1] | The impairment charge of operating lease assets reduced the then carrying amount of the applicable operating lease assets of $865 million to their fair value of $626 million during fiscal 2019 . | |||
[2] | The impairment charge reduced the then carrying amount of the applicable store assets of $99 million , $15 million , and $30 million to their fair value of $1 million , $1 million , and $2 million during fiscal 2019 , 2018 , and 2017 , respectively. |
Derivative Financial Instrume_3
Derivative Financial Instruments - Foreign Exchange Contracts Outstanding to Sell Various Currencies (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 1,190 | $ 1,434 |
Derivatives in cash flow hedging relationships | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 501 | 774 |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 689 | $ 660 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Values of Asset and Liability Derivative Financial Instruments (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments, assets | $ 10 | $ 20 |
Total derivative instruments, liabilities | 10 | 11 |
Foreign exchange forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments, assets | 10 | 20 |
Total derivative instruments, liabilities | 10 | 11 |
Foreign exchange forward contracts | Derivatives in cash flow hedging relationships | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments, assets | 6 | 15 |
Foreign exchange forward contracts | Derivatives in cash flow hedging relationships | Accrued Liabilities Current [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments, liabilities | 2 | 3 |
Foreign exchange forward contracts | Derivatives not designated as hedging instruments | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments, assets | 4 | 5 |
Foreign exchange forward contracts | Derivatives not designated as hedging instruments | Accrued Liabilities Current [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments, liabilities | $ 8 | $ 8 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Effects Of Derivative Financial Instruments On OCI And Consolidated Statements Of Income (Details) - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amounts Subject to Enforceable Master Netting Arrangements | $ 0 | $ 0 | |
Document Fiscal Year Focus | 2019 | ||
Operating expenses | $ 5,559,000,000 | 4,960,000,000 | $ 4,587,000,000 |
Cost of goods sold and occupancy expenses | 10,250,000,000 | 10,258,000,000 | 9,789,000,000 |
Derivatives in net investment hedging relationships | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | |
Cost of Goods Sold and Occupancy Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (29,000,000) | (13,000,000) | 0 |
Operating expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (4,000,000) | (34,000,000) | 30,000,000 |
Foreign exchange forward contracts | Derivatives in cash flow hedging relationships | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments, gain (loss) recognized in OCI, effective portion, net | 18,000,000 | 50,000,000 | (60,000,000) |
Foreign exchange forward contracts | Derivatives in net investment hedging relationships | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments, gain (loss) recognized in OCI, effective portion, net | 0 | 0 | (1,000,000) |
Foreign exchange forward contracts | Cost of Goods Sold and Occupancy Expense | Derivatives not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | 0 |
Foreign exchange forward contracts | Cost of Goods Sold and Occupancy Expense | Derivatives in cash flow hedging relationships | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (29,000,000) | (13,000,000) | 0 |
Foreign exchange forward contracts | Operating expenses | Derivatives not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (4,000,000) | (33,000,000) | 29,000,000 |
Foreign exchange forward contracts | Operating expenses | Derivatives in cash flow hedging relationships | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 0 | $ (1,000,000) | $ 1,000,000 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Feb. 01, 2020 | |
Derivative [Line Items] | |||
Amounts Subject to Enforceable Master Netting Arrangements | $ 0 | $ 0 | |
Derivatives in net investment hedging relationships | |||
Derivative [Line Items] | |||
Gain or loss reclassified from OCI into income for derivatives in net investment hedging relationships | $ 0 | $ 0 |
Common Stock (Share Repurchase
Common Stock (Share Repurchase Activity) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||
Number of shares repurchased (in shares) | 10 | 14 | 13 |
Total cost | $ 200 | $ 398 | $ 315 |
Average per share cost including commissions (in dollars per share) | $ 19.18 | $ 28.93 | $ 24.43 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) $ / shares in Units, shares in Thousands | 12 Months Ended | ||||
Feb. 01, 2020USD ($)Votes_per_share$ / sharesshares | Feb. 02, 2019USD ($)shares | Feb. 03, 2018USD ($)shares | Feb. 26, 2019USD ($) | Feb. 25, 2016USD ($) | |
Class of Stock [Line Items] | |||||
Number of shares repurchased (in shares) | (10,000) | (14,000) | (13,000) | ||
Common Stock, Shares Authorized | 2,300,000 | 2,300,000 | |||
Common stock, shares issued (in shares) | 371,000 | 378,000 | |||
Document Period End Date | Feb. 1, 2020 | ||||
Preferred stock, shares authorized (in shares) | 30,000 | ||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.05 | ||||
Preferred stock, shares issued (in shares) | 0 | ||||
Share repurchases, authorized amount | $ | $ 1,000,000,000 | $ 1,000,000,000 | |||
Share repurchases, remaining amount | $ | $ 800,000,000 | $ 287,000,000 | |||
Total share repurchases, unpaid amount | $ | $ 0 | $ 0 | $ 0 | ||
Common Class B [Member] | |||||
Class of Stock [Line Items] | |||||
Common Stock, Shares Authorized | 60,000 | ||||
Common Stock Votes Per Share | Votes_per_share | 6 | ||||
Common stock, shares issued (in shares) | 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ (2) | $ (17) | $ 35 | |
Other comprehensive income (loss), foreign currency transaction and translation adjustment, net of tax, unrealized | (20) | |||
Change in fair value of derivative financial instruments | 13 | 54 | (51) | |
Amounts reclassified from accumulated OCI | (24) | (20) | (2) | |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 24 | 17 | ||
Other comprehensive loss, net | (13) | 17 | (18) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 40 | 53 | 36 | $ 54 |
Derivatives in cash flow hedging relationships | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 0 | 0 | 0 | |
Change in fair value of derivative financial instruments | 13 | 54 | (51) | |
Amounts reclassified from accumulated OCI | (24) | (20) | (2) | |
Other comprehensive loss, net | (11) | 34 | (53) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (5) | 6 | (28) | 25 |
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (2) | (20) | 35 | |
Change in fair value of derivative financial instruments | 0 | 0 | 0 | |
Amounts reclassified from accumulated OCI | 3 | 0 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | |||
Other comprehensive loss, net | (2) | (17) | 35 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 45 | $ 47 | $ 64 | $ 29 |
Share-Based Compensation - Tota
Share-Based Compensation - Total Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 68 | $ 91 | $ 87 |
Less: Income tax benefit | (23) | (22) | (35) |
Share-based compensation expense, net of tax | 45 | 69 | 52 |
Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 52 | 71 | 69 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 12 | 16 | 14 |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 4 | $ 4 | $ 4 |
Share-Based Compensation Share-
Share-Based Compensation Share-Based Compensation - Stock Unit Activity (Details) - Stock Units [Member] - $ / shares | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Units Outstandings, Shares | 6,962,409 | 8,085,259 |
Stock Units Granted, Shares | 5,295,007 | |
Stock Units Vested, Shares | (2,527,515) | |
Stock Units Forfeited, Shares | (3,890,342) | |
Stock Units Outstanding, Weighted-Average Grant-Date Fair Value | $ 24.33 | $ 29.97 |
Granted, Weighted-Average Grant-Date Fair Value | 21.93 | |
Vested, Weighted-Average Grant-Date Fair Value | 26.25 | |
Forfeited, Weighted-Average Grant-Date Fair Value | $ 25.30 |
Share-Based Compensation Shar_2
Share-Based Compensation Share-Based Compensation - Additional Information About Stock Unit Activity (Details) - Stock Units [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Fair Value Per Share of Stock Units Granted Including Those Subject to Performance Conditions | $ 21.93 | $ 29.33 | $ 21.81 |
Fair value of Stock Units vested | $ 66 | $ 58 | $ 64 |
Share-Based Compensation Shar_3
Share-Based Compensation Share-Based Compensation - Payment Awards, Stock Options, Valuation Assumptions (Details) - Stock Options [Member] | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 4 years 2 months 12 days | 3 years 10 months 24 days | 3 years 10 months 24 days |
Expected volatility | 37.50% | 36.30% | 38.20% |
Dividend yield | 4.10% | 3.10% | 3.80% |
Risk-free interest rate | 2.20% | 2.50% | 1.70% |
Share-Based Compensation Shar_4
Share-Based Compensation Share-Based Compensation - Stock Options, Activity (Details) - $ / shares | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Outstanding, Shares | 11,436,022 | |
Options Outstanding, Weighted-Average Exercise Price | $ 28.26 | |
Options Exercised, Weighted-Average Exercise Price | $ 30.12 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Outstanding, Shares | 11,436,022 | 10,685,422 |
Options Granted, Shares | 3,811,644 | |
Options Exercised, Shares | (159,750) | |
Options Forfeited/Expired, Shares | (2,901,294) | |
Options Outstanding, Weighted-Average Exercise Price | $ 28.26 | $ 29.80 |
Options Granted, Weighted-Average Exercise Price | 24.09 | |
Options Exercised, Weighted-Average Exercise Price | 23.33 | |
Options Forfeited/Expired, Weighted Average Exercise Price | $ 28.72 |
Share-Based Compensation Shar_5
Share-Based Compensation Share-Based Compensation - Additional Information About Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value of stock options exercised | $ 0 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value per share of stock options granted | $ 5.43 | $ 7.75 | $ 5.47 |
Aggregate intrinsic value of stock options exercised | $ 1 | $ 5 | $ 1 |
Fair value of stock options vested | $ 16 | $ 14 | $ 12 |
Share-Based Compensation Shar_6
Share-Based Compensation Share-Based Compensation - Arrangement By Shares Outstanding And Exercisable (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Feb. 01, 2020USD ($)$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans [Line Items] | |
Aggregate intrinsic value of options outstanding | $ | $ 0 |
Options Outstanding, Shares | shares | 11,436,022 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 6 years |
Options Outstanding, Weighted-Average Exercise Price | $ / shares | $ 28.26 |
Aggregate intrinsic value of stock options exercised | $ | $ 0 |
Options Exercisable, Shares | shares | 5,905,582 |
Weighted-average reemaining contractual life of stock options exercisable | 3 years 8 months 12 days |
Options Exercised, Weighted-Average Exercise Price | $ / shares | $ 30.12 |
Share-Based Compensation Shar_7
Share-Based Compensation Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Millions, $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 36 | $ 2 | |
No material capitalized share-based compensation expense | $ 0 | $ 0 | $ 0 |
No material modifications made to our outstanding stock options and stock awards | 0 | 0 | 0 |
Liability related to Stock Units based on performance metrics, recorded in accrued expenses and other current liabilities | $ 2 | ||
Annual vesting percentage for stock options | 25.00% | ||
Aggregate intrinsic value of options outstanding | $ 0 | ||
Weighted-average reemaining contractual life of stock options exercisable | 3 years 8 months 12 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% | ||
Stock issued during period, Shares, Employee Stock Purchase Plans | 1,381,391 | 1,008,100 | 1,113,640 |
2016 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for issuance | 251,586,781 | ||
Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value of unvested Stock Units | $ 121 | ||
Nonvested awards, total compensation cost not yet recognized | $ 102 | ||
Nonvested awards, total compensation cost not yet recognized, period for recognition | 2 years 1 month 6 days | ||
Stock Units Granted, Shares | 5,295,007 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Units Granted, Shares | 1,787,189 | ||
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, discount from market price, purchase date | 15.00% | ||
Common stock, capital shares reserved for future issuance | 5,754,699 | ||
Employee stock purchase plan | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage deduction from payroll for Employee Stock Purchase | 15.00% | ||
Employee stock purchase plan | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage deduction from payroll for Employee Stock Purchase | 1.00% | ||
Retained Earnings | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 36 | $ (3) |
Leases Minimum lease liability
Leases Minimum lease liability ASC 840 (Details) $ in Millions | Feb. 02, 2019USD ($) |
Leases [Abstract] | |
2018 | $ 1,156 |
2019 | 1,098 |
2020 | 892 |
2021 | 730 |
2022 | 539 |
Thereafter | 1,520 |
Total minimum lease commitments | $ 5,935 |
Leases Leases Cost (Details)
Leases Leases Cost (Details) $ in Millions | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Leases [Abstract] | |
Operating Lease, Cost | $ 1,233 |
Variable Lease, Cost | 621 |
Sublease Income | (9) |
Lease, Cost | $ 1,845 |
Leases Leases Additional Inform
Leases Leases Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Leases [Abstract] | ||
Additions Of Operating Lease Assets | $ 533 | |
Operating Leases, Income Statement, Sublease Revenue | $ 12 | |
Minimum Lease Commitment Signed Not Yet Commenced | $ 240 | |
Operating Lease, Weighted Average Remaining Lease Term | 8 years 8 months 12 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 4.70% |
Leases Minimum lease liabilit_2
Leases Minimum lease liability ASC 842 (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Leases [Abstract] | ||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 1,185 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 1,053 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 952 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 840 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 747 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 3,172 | |
Lessee, Operating Lease, Liability, Payments, Due | 7,949 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (1,521) | |
Operating Lease, Liability | 6,428 | |
Operating Lease, Liability, Current | (920) | $ 0 |
Operating Lease, Liability, Noncurrent | $ 5,508 | $ 0 |
Income Taxes Income Taxes - Com
Income Taxes Income Taxes - Components Of Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 550 | $ 1,183 | $ 1,301 |
Foreign | (22) | 139 | 123 |
Income before income taxes | $ 528 | $ 1,322 | $ 1,424 |
Income Taxes Income Taxes - Tax
Income Taxes Income Taxes - Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | $ 177 | $ 164 | $ 415 |
State | 37 | 41 | 51 |
Foreign | 44 | 49 | 49 |
Total current | 258 | 254 | 515 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | (58) | 55 | 55 |
State | (20) | 11 | (5) |
Foreign | (3) | (1) | 11 |
Total deferred | (81) | 65 | 61 |
Total provision | $ 177 | $ 319 | $ 576 |
Income Taxes Income Taxes - Eff
Income Taxes Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 21.00% | 21.00% | 33.70% |
State and local income taxes, net of federal benefit | 3.20% | 4.00% | 4.00% |
Tax impact of foreign operations | 6.00% | 0.10% | (1.10%) |
Impact of Tax Cuts and Jobs Act of 2017 | 0.056 | (0.032) | 0.040 |
Excess Foreign Tax Credits | 0.00% | 0.50% | (0.70%) |
Other | (2.30%) | 1.70% | 0.50% |
Effective tax rate | 33.50% | 24.10% | 40.40% |
Income Taxes Income Taxes - Def
Income Taxes Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Gross deferred tax assets: | ||
Deferred rent | $ 0 | $ 124 |
Deferred Tax Asset Operating Lease Liability | 1,726 | 0 |
Accrued payroll and related benefits | 59 | 51 |
Accruals | 132 | 106 |
Inventory capitalization and other adjustments | 38 | 42 |
Deferred Tax Assets, Deferred Income | 34 | 29 |
Federal, state, and foreign net operating losses | 101 | 70 |
Other | 37 | 40 |
Total gross deferred tax assets | 2,127 | 462 |
Valuation allowance | (199) | (156) |
Total deferred tax assets, net of valuation allowance | 1,928 | 306 |
Deferred Tax Liabilities, Gross [Abstract] | ||
Depreciation and amortization | (246) | (180) |
Deferred Tax Liabilities Operating Lease Asset | (1,448) | 0 |
Unremitted earnings of certain foreign subsidiaries | (2) | (2) |
Unrealized net gain on cash flow hedges | (2) | (3) |
Other | (9) | (6) |
Total deferred tax liabilities | 1,707 | 191 |
Net deferred tax assets | $ 221 | $ 115 |
Income Taxes Income Taxes - Unr
Income Taxes Income Taxes - Unrecognized Tax Benefits Roll Forward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of fiscal year | $ 136 | $ 118 | $ 44 |
Increases related to current year tax positions | 12 | 11 | 48 |
Prior year tax positions: | |||
Increases | 11 | 29 | 28 |
Decreases | (4) | (6) | (2) |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (1) | 0 | (1) |
Cash settlements | (1) | (15) | 0 |
Foreign currency translation | (1) | (1) | 1 |
Balance at end of fiscal year | $ 152 | $ 136 | $ 118 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Operating Loss Carryforwards [Line Items] | ||||
Remeasurement Period Adjustment | $ 30 | $ 33 | ||
Federal, state, and foreign net operating losses | 101 | 70 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 3 | |||
Unrecognized Tax Benefits | 152 | 136 | $ 118 | $ 44 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 137 | 125 | 106 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 6 | 5 | $ 4 | |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 16 | 10 | ||
Unrecognized Tax Benefits, Income Tax Penalties Accrued | 0 | $ 0 | ||
Benefit To Income Taxes If Decrease In Gross Unrecognized Tax Benefits Within 12 Months Are Recognized | 0 | |||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 54 | |||
Federal, state, and foreign net operating losses | 4 | |||
Domestic Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation Allowance related to other federal and foreign deferred tax assets | 8 | |||
Foreign Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 463 | |||
Federal, state, and foreign net operating losses | 97 | |||
Operating Loss Carryforwards, Valuation Allowance | 83 | |||
Valuation Allowance related to other federal and foreign deferred tax assets | 108 | |||
Foreign Operating Loss Carryforward That Will Expire | 344 | |||
Foreign Operating Loss Carryforward That Will Not Expire | $ 119 |
Income Taxes Income Tax Items (
Income Taxes Income Tax Items (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 03, 2018 | Feb. 01, 2020 | |
Income Tax Items [Line Items] | ||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | $ 3 | |
Provisional tax impact of federal reform [Member] | ||
Income Tax Items [Line Items] | ||
Other Tax Expense (Benefit) | $ 57 | |
Tax benefit from legal entity structuring that was also impacted by tax reform [Member] | ||
Income Tax Items [Line Items] | ||
Other Tax Expense (Benefit) | $ (23) |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost | $ 46,000,000 | $ 45,000,000 | $ 45,000,000 |
Deferred compensation plan assets | 51,000,000 | 48,000,000 | |
Deferred Compensation Liability, Current and Noncurrent | 51,000,000 | 48,000,000 | |
Deferred Compensation Arrangement with Individual, Contributions by Employer | $ 0 | $ 0 | $ 0 |
Earnings Per Share - Weighted A
Earnings Per Share - Weighted Average Number of Shares (Details) - shares shares in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Earnings Per Share [Abstract] | |||
Weighted-average number of shares - basic (in shares) | 376 | 385 | 393 |
Common stock equivalents (in shares) | 2 | 3 | 3 |
Weighted-average number of shares - diluted (in shares) | 378 | 388 | 396 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Earnings Per Share [Abstract] | |||
Shares excluded from the computations of weighted-average number of shares - diluted | 14 | 7 | 9 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies Additional (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jul. 29, 2017 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Loss Contingency, Estimate of Possible Loss | $ 0 | $ 0 | ||
Commitments and Contingencies [Line Items] | ||||
Gain recorded on settlement | $ 64 | |||
Insurance proceeds related to loss on property and equipment | $ 0 | $ 0 | $ 66 | |
Fire [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Insurance Proceeds | $ 193 |
Commitments and Contingencies S
Commitments and Contingencies Separation Commitments (Details) $ in Millions | Feb. 01, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Separation Commitments | $ 28 |
Segment Information - Net Sales
Segment Information - Net Sales by Brand and Region (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Athleta Net Sales | $ 978 | $ 881 | $ 737 | ||||||||
Document Period End Date | Feb. 1, 2020 | ||||||||||
Revenues | $ 4,674 | $ 3,998 | $ 4,005 | $ 3,706 | $ 4,623 | $ 4,089 | $ 4,085 | $ 3,783 | $ 16,383 | $ 16,580 | $ 15,855 |
Percentage Of Net Sales | 100.00% | 100.00% | 100.00% | ||||||||
U.S. | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 13,398 | $ 13,340 | $ 12,568 | ||||||||
Percentage Of Net Sales | 82.00% | 81.00% | 80.00% | ||||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 1,153 | $ 1,193 | $ 1,173 | ||||||||
Percentage Of Net Sales | 7.00% | 7.00% | 7.00% | ||||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 539 | $ 603 | $ 641 | ||||||||
Percentage Of Net Sales | 3.00% | 4.00% | 4.00% | ||||||||
Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 1,084 | $ 1,233 | $ 1,263 | ||||||||
Percentage Of Net Sales | 7.00% | 7.00% | 8.00% | ||||||||
Other Regions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 209 | $ 211 | $ 210 | ||||||||
Percentage Of Net Sales | 1.00% | 1.00% | 1.00% | ||||||||
Old Navy [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 7,983 | $ 7,840 | $ 7,238 | ||||||||
Old Navy [Member] | U.S. | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 7,259 | 7,134 | 6,570 | ||||||||
Old Navy [Member] | Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 587 | 584 | 547 | ||||||||
Old Navy [Member] | Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Old Navy [Member] | Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 45 | 50 | 50 | ||||||||
Old Navy [Member] | Other Regions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 92 | 72 | 71 | ||||||||
Gap Global | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 4,634 | 5,160 | 5,318 | ||||||||
Gap Global | U.S. | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,723 | 2,990 | 3,065 | ||||||||
Gap Global | Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 349 | 379 | 398 | ||||||||
Gap Global | Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 525 | 589 | 626 | ||||||||
Gap Global | Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 943 | 1,089 | 1,117 | ||||||||
Gap Global | Other Regions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 94 | 113 | 112 | ||||||||
Banana Republic Global | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,539 | 2,456 | 2,380 | ||||||||
Banana Republic Global | U.S. | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,191 | 2,095 | 2,017 | ||||||||
Banana Republic Global | Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 215 | 227 | 225 | ||||||||
Banana Republic Global | Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 14 | 14 | 15 | ||||||||
Banana Republic Global | Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 96 | 94 | 96 | ||||||||
Banana Republic Global | Other Regions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 23 | 26 | 27 | ||||||||
Other entities | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,227 | 1,124 | 919 | ||||||||
Other entities | U.S. | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,225 | 1,121 | 916 | ||||||||
Other entities | Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2 | 3 | 3 | ||||||||
Other entities | Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Other entities | Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Other entities | Other Regions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 0 | $ 0 | $ 0 |
Segment Information - Net Sal_2
Segment Information - Net Sales And Long-Lived Assets By Geographic Location (Detail) - USD ($) $ in Millions | Feb. 01, 2020 | [1] | Feb. 02, 2019 | |
Segment Reporting Information [Line Items] | ||||
Long-Lived Assets | $ 8,942 | $ 3,683 | ||
U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Long-Lived Assets | [2] | 7,169 | 3,097 | |
Other Foreign | ||||
Segment Reporting Information [Line Items] | ||||
Long-Lived Assets | $ 1,773 | $ 586 | ||
[1] | Reflects the adoption of the new lease accounting standard. Prior period amounts have not been restated and continue to be reported under accounting standards in effect for those periods. | |||
[2] | U.S. includes the United States, Puerto Rico, and Guam. |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 12 Months Ended |
Feb. 01, 2020 | |
Segment Reporting [Abstract] | |
Number of reportable segments (in segments) | 1 |
Quarterly Information Quarterly
Quarterly Information Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Quarterly Financial Data [Abstract] | |||||||||||
Revenues | $ 4,674 | $ 3,998 | $ 4,005 | $ 3,706 | $ 4,623 | $ 4,089 | $ 4,085 | $ 3,783 | $ 16,383 | $ 16,580 | $ 15,855 |
Gross Profit | 1,674 | 1,559 | 1,556 | 1,344 | 1,645 | 1,623 | 1,627 | 1,427 | 6,133 | 6,322 | 6,066 |
Cumulative effect of a change in accounting principle related to share-based compensation | $ (184) | $ 140 | $ 168 | $ 227 | $ 276 | $ 266 | $ 297 | $ 164 | $ 351 | $ 1,003 | $ 848 |
Earnings per share - basic (in dollars per share) | $ (0.49) | $ 0.37 | $ 0.44 | $ 0.60 | $ 0.72 | $ 0.69 | $ 0.77 | $ 0.42 | $ 0.93 | $ 2.61 | $ 2.16 |
Earnings per share - diluted (in dollars per share) | $ (0.49) | $ 0.37 | $ 0.44 | $ 0.60 | $ 0.72 | $ 0.69 | $ 0.76 | $ 0.42 | $ 0.93 | $ 2.59 | $ 2.14 |
Quarterly Information Quarter_2
Quarterly Information Quarterly Financial Information - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Jul. 29, 2017 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Unusual or Infrequent Item, or Both [Line Items] | ||||||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 191 | $ 0 | $ 0 | |||||
Unusual or Infrequent Item, or Both, Earnings Per Share Impact, Net | $ (1.04) | |||||||
Restructuring Charges | $ 61 | |||||||
Gain recorded on settlement | $ 64 | |||||||
Goodwill, Impairment Loss | 0 | $ 0 | $ 0 | |||||
Property, Plant and Equipment [Member] | ||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 191 | 191 | ||||||
Unusual or Infrequent Item, or Both, Earnings Per Share Impact, Net | $ (0.37) | |||||||
SeparationCosts [Member] | ||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||
Unusual or Infrequent Item, or Both, Earnings Per Share Impact, Net | $ (0.38) | $ (0.14) | $ (0.08) | |||||
SeparationCosts | $ 189 | $ 70 | $ 38 | 301 | ||||
Restructuring Charges [Member] | ||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||
Unusual or Infrequent Item, or Both, Earnings Per Share Impact, Net | $ (0.10) | $ (0.02) | $ (0.03) | |||||
Restructuring Charges | $ 17 | $ 8 | $ 14 | 61 | ||||
Impairment [Member] | ||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||
Unusual or Infrequent Item, or Both, Earnings Per Share Impact, Net | $ (0.59) | |||||||
Flagship Impairment | 296 | |||||||
Tax Reform [Member] | ||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||
Unusual or Infrequent Item, or Both, Earnings Per Share Impact, Net | $ (0.08) | |||||||
Unusual or Infrequent Item, or Both, Tax Effect | $ 30 | 30 | ||||||
Cost of Goods Sold and Occupancy Expense | ||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||
Restructuring Charges | $ 22 |
Acquired assets and liabilities
Acquired assets and liabilities (Details) $ in Millions | Mar. 04, 2019USD ($) |
Business Combinations [Abstract] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | $ 34 |
Consideration Paid for Acquisition | 69 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 15 |
Business Acquisition Operating Lease ROU | 51 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 37 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 137 |
Business Acquisition Operating Liabilities | (64) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ (4) |
Store Closing and Other Opera_3
Store Closing and Other Operating Costs Store Closing and Other Operating Costs (Details) $ in Millions | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | $ 61 |
Store Closing and Other Opera_4
Store Closing and Other Operating Costs Store Closing and Other Operating Charges Restructuring and Related Cost (Details) $ in Millions | 12 Months Ended | |
Feb. 01, 2020USD ($) | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $ 61 | |
Cost Of Goods Sold And Occupancy Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 22 | |
Operating Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 39 | |
Operating lease Impairment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 25 | [1] |
Operating lease Impairment [Member] | Cost Of Goods Sold And Occupancy Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 15 | [1] |
Operating lease Impairment [Member] | Operating Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 10 | [1] |
Facility Closing [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 13 | |
Facility Closing [Member] | Cost Of Goods Sold And Occupancy Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 0 | |
Facility Closing [Member] | Operating Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 13 | |
Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 13 | |
Employee Severance [Member] | Cost Of Goods Sold And Occupancy Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 0 | |
Employee Severance [Member] | Operating Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 13 | |
Other Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 10 | |
Other Restructuring [Member] | Cost Of Goods Sold And Occupancy Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 7 | |
Other Restructuring [Member] | Operating Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $ 3 | |
[1] | In accordance with ASC 842, this cost includes lease termination fees and amortization expense. |
Store Closing and Other Opera_5
Store Closing and Other Operating Costs Store Closing and Other Operating Charges Restructuring Reserve (Details) $ in Millions | Feb. 01, 2020USD ($) |
Restructuring and Related Activities [Abstract] | |
Restructuring Reserve | $ 0 |