Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Mar. 13, 2015 | Aug. 02, 2014 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Jan-15 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | LB | ||
Entity Registrant Name | L Brands, Inc. | ||
Entity Central Index Key | 701985 | ||
Current Fiscal Year End Date | -30 | ||
Entity Common Stock, Shares Outstanding | 292,393,970 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $14,175,294,460 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Feb. 02, 2013 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||||||||||
Net Sales | $4,069 | $2,319 | $2,675 | $2,391 | $3,818 | $2,171 | $2,516 | $2,268 | $11,454 | $10,773 | $10,459 | |||||||||||
Costs of Goods Sold, Buying and Occupancy | 6,646 | 6,344 | 6,073 | |||||||||||||||||||
Gross Profit | 1,835 | 947 | 1,044 | 982 | 1,642 | 857 | 989 | 941 | 4,808 | 4,429 | 4,386 | |||||||||||
General, Administrative and Store Operating Expenses | 2,855 | 2,686 | 2,720 | |||||||||||||||||||
Impairment of Goodwill and Other Intangible Assets | 93 | 0 | 0 | 93 | ||||||||||||||||||
Operating Income | 957 | 284 | 376 | 336 | 863 | 211 | 358 | 311 | 1,953 | 1,743 | [1] | 1,573 | [1] | |||||||||
Interest Expense | 324 | 314 | 316 | |||||||||||||||||||
Other Income | 7 | 17 | 24 | |||||||||||||||||||
Income Before Income Taxes | 880 | 205 | 296 | 255 | 787 | 142 | 282 | 235 | 1,636 | 1,446 | 1,281 | |||||||||||
Provision for Income Taxes | 594 | 543 | 528 | |||||||||||||||||||
Net Income | $565 | $132 | $188 | $157 | $490 | $92 | $178 | $143 | $1,042 | $903 | $753 | |||||||||||
Net Income Per Basic Share | $1.93 | [2] | $0.45 | [2] | $0.65 | [2] | $0.54 | [2] | $1.69 | [2] | $0.32 | [2] | $0.62 | [2] | $0.49 | [2] | $3.57 | $3.12 | $2.60 | |||
Net Income Per Diluted Share | $1.89 | [2] | $0.44 | [2] | $0.63 | [2] | $0.53 | [2] | $1.65 | [2] | $0.31 | [2] | $0.61 | [2] | $0.48 | [2] | $3.50 | $3.05 | $2.54 | |||
[1] | Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. | |||||||||||||||||||||
[2] | Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. |
Consoldiated_Statements_of_Com
Consoldiated Statements of Comprehensive Income (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Net Income | $565 | $132 | $188 | $157 | $490 | $92 | $178 | $143 | $1,042 | $903 | $753 |
Other Comprehensive Income (Loss), Net of Tax | |||||||||||
Reclassification of Cash Flow Hedges to Earnings | -60 | -50 | 5 | ||||||||
Foreign Currency Translation | 21 | 40 | -2 | ||||||||
Unrealized Gain on Cash Flow Hedges | 34 | 46 | 1 | ||||||||
Total Other Comprehensive Income (Loss), Net of Tax | -5 | 36 | 4 | ||||||||
Total Comprehensive Income | $1,037 | $939 | $757 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Current Assets: | ||
Cash and Cash Equivalents | $1,681 | $1,519 |
Accounts Receivable, Net | 252 | 244 |
Inventories | 1,036 | 1,165 |
Deferred Income Taxes | 33 | 28 |
Other | 230 | 194 |
Total Current Assets | 3,232 | 3,150 |
Property and Equipment, Net | 2,277 | 2,045 |
Goodwill | 1,318 | 1,318 |
Trade Names and Other Intangible Assets, Net | 411 | 411 |
Other Assets | 306 | 274 |
Total Assets | 7,544 | 7,198 |
Current Liabilities: | ||
Accounts Payable | 613 | 599 |
Accrued Expenses and Other | 900 | 787 |
Current Portion of Long-term Debt | 0 | 215 |
Income Taxes | 166 | 225 |
Total Current Liabilities | 1,679 | 1,826 |
Deferred Income Taxes | 261 | 210 |
Long-term Debt | 4,765 | 4,761 |
Other Long-term Liabilities | 820 | 770 |
Shareholders' Equity (Deficit): | ||
Preferred Stock—$1.00 par value; 10 shares authorized; none issued | 0 | 0 |
Common Stock—$0.50 par value; 1,000 shares authorized; 310 and 307 shares issued; 292 and 291 shares outstanding, respectively | 155 | 154 |
Paid-in Capital | 427 | 302 |
Accumulated Other Comprehensive Income | 35 | 40 |
Retained Earnings (Accumulated Deficit) | 233 | -118 |
Less: Treasury Stock, at Average Cost; 18 and 16 shares, respectively | -832 | -748 |
Total L Brands, Inc. Shareholders’ Equity (Deficit) | 18 | -370 |
Noncontrolling Interest | 1 | 1 |
Total Equity (Deficit) | 19 | -369 |
Total Liabilities and Equity (Deficit) | $7,544 | $7,198 |
Consolidated_Balance_Sheets_Co
Consolidated Balance Sheets Consolidated Balance Sheets (Parenthetical) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
Preferred Stock, Par or Stated Value Per Share | $1 | $1 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $0.50 | $0.50 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Issued | 310,000,000 | 307,000,000 |
Common Stock, Shares, Outstanding | 292,000,000 | 291,000,000 |
Treasury Stock, Shares | 18,000,000 | 16,000,000 |
Consolidated_Statements_of_Tot
Consolidated Statements of Total Equity (Deficit) (USD $) | Total | Common Stock [Member] | Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) [Member] | Treasury Stock, at Average Cost [Member] | Noncontrolling Interest [Member] |
In Millions, except Share data | |||||||
Beginning Balance at Jan. 28, 2012 | $138 | $148 | $25 | $0 | $24 | ($60) | $1 |
Common Stock, Dividends, Per Share, Declared | $5 | ||||||
Net Income | 753 | 0 | 0 | 0 | 753 | 0 | 0 |
Other Comprehensive Income (Loss) | 4 | 0 | 0 | 4 | 0 | 0 | 0 |
Total Comprehensive Income (Loss) | 757 | 0 | 0 | 4 | 753 | 0 | 0 |
Dividends, Common Stock, Cash | -1,449 | 0 | 0 | 0 | -1,449 | 0 | 0 |
Treasury Stock, Shares, Acquired | 13,773,000 | 14,000,000 | |||||
Repurchase of Common Stock | -625 | 0 | 0 | 0 | 0 | -625 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 8,000,000 | ||||||
Exercise of Stock Options and Other | 165 | 4 | 161 | 0 | 0 | 0 | 0 |
Ending Balance at Feb. 02, 2013 | -1,014 | 152 | 186 | 4 | -672 | -685 | 1 |
Ending Balance (in shares) at Feb. 02, 2013 | 289,000,000 | ||||||
Common Stock, Dividends, Per Share, Declared | $1.20 | ||||||
Net Income | 903 | 0 | 0 | 0 | 903 | 0 | 0 |
Other Comprehensive Income (Loss) | 36 | 0 | 0 | 36 | 0 | 0 | 0 |
Total Comprehensive Income (Loss) | 939 | 0 | 0 | 36 | 903 | 0 | 0 |
Dividends, Common Stock, Cash | -349 | 0 | 0 | 0 | -349 | 0 | 0 |
Treasury Stock, Shares, Acquired | 1,377,000 | 1,000,000 | |||||
Repurchase of Common Stock | -63 | 0 | 0 | 0 | 0 | -63 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 3,000,000 | ||||||
Exercise of Stock Options and Other | 118 | 2 | 116 | 0 | 0 | 0 | 0 |
Ending Balance at Feb. 01, 2014 | -369 | 154 | 302 | 40 | -118 | -748 | 1 |
Ending Balance (in shares) at Feb. 01, 2014 | 291,000,000 | 291,000,000 | |||||
Common Stock, Dividends, Per Share, Declared | $2.36 | ||||||
Net Income | 1,042 | 0 | 0 | 0 | 1,042 | 0 | 0 |
Other Comprehensive Income (Loss) | -5 | 0 | 0 | -5 | 0 | 0 | 0 |
Total Comprehensive Income (Loss) | 1,037 | 0 | 0 | -5 | 1,042 | 0 | 0 |
Dividends, Common Stock, Cash | -691 | 0 | 0 | 0 | -691 | 0 | 0 |
Treasury Stock, Shares, Acquired | 1,317,000 | 1,000,000 | |||||
Repurchase of Common Stock | -84 | 0 | 0 | 0 | 0 | -84 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,462,000 | 2,000,000 | |||||
Exercise of Stock Options and Other | 126 | 1 | 125 | 0 | 0 | 0 | 0 |
Ending Balance at Jan. 31, 2015 | $19 | $155 | $427 | $35 | $233 | ($832) | $1 |
Ending Balance (in shares) at Jan. 31, 2015 | 292,000,000 | 292,000,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Operating Activities | |||
Net Income | $1,042,000,000 | $903,000,000 | $753,000,000 |
Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: | |||
Depreciation and Amortization of Long-lived Assets | 438,000,000 | 407,000,000 | 389,000,000 |
Amortization of Landlord Allowances | -40,000,000 | -39,000,000 | -35,000,000 |
Deferred Income Taxes | 50,000,000 | 18,000,000 | 11,000,000 |
Share-based Compensation Expense | 90,000,000 | 85,000,000 | 73,000,000 |
Excess Tax Benefits from Share-based Compensation | -43,000,000 | -36,000,000 | -116,000,000 |
Goodwill and Intangible Asset Impairment Charges | 0 | 0 | 93,000,000 |
Long-lived Store Asset Impairment Charges | 0 | 0 | 27,000,000 |
Gain on Distributions from Easton Investments | 0 | 0 | -13,000,000 |
Gain on Sale of Assets | 0 | 0 | -3,000,000 |
Changes in Assets and Liabilities, Net of Assets and Liabilities related to Divestitures: | |||
Accounts Receivable | -9,000,000 | -43,000,000 | 5,000,000 |
Inventories | 121,000,000 | -168,000,000 | -7,000,000 |
Accounts Payable, Accrued Expenses and Other | 90,000,000 | 1,000,000 | -43,000,000 |
Income Taxes Payable | -17,000,000 | 74,000,000 | 139,000,000 |
Other Assets and Liabilities | 64,000,000 | 46,000,000 | 78,000,000 |
Net Cash Provided by (Used for) Operating Activities | 1,786,000,000 | 1,248,000,000 | 1,351,000,000 |
Investing Activities | |||
Capital Expenditures | -715,000,000 | -691,000,000 | -588,000,000 |
Other Investing Activities | 16,000,000 | -10,000,000 | 22,000,000 |
Net Cash Used for Investing Activities | -699,000,000 | -655,000,000 | -531,000,000 |
Repayments of Long-term Debt | 213,000,000 | 0 | 57,000,000 |
Financing Activities | |||
Proceeds from Issuance of Long-term Debt | 0 | 495,000,000 | 985,000,000 |
Borrowings from Revolving Facility | 5,000,000 | 290,000,000 | 0 |
Repayments on Revolving Facility | -5,000,000 | -290,000,000 | 0 |
Financing Costs | -5,000,000 | 0 | 0 |
Repurchase of Common Stock | -87,000,000 | -60,000,000 | -629,000,000 |
Dividends Paid | -691,000,000 | -349,000,000 | -1,449,000,000 |
Excess Tax Benefits from Share-based Compensation | 43,000,000 | 36,000,000 | 116,000,000 |
Proceeds From Exercise of Stock Options and Other | 34,000,000 | 32,000,000 | 52,000,000 |
Net Cash Provided by (Used for) Financing Activities | -919,000,000 | 154,000,000 | -982,000,000 |
Effects of Exchange Rate Changes on Cash | -6,000,000 | -1,000,000 | 0 |
Net Increase (Decrease) in Cash and Cash Equivalents | 162,000,000 | 746,000,000 | -162,000,000 |
Cash and Cash Equivalents, Beginning of Year | 1,519,000,000 | 773,000,000 | 935,000,000 |
Cash and Cash Equivalents, End of Year | 1,681,000,000 | 1,519,000,000 | 773,000,000 |
Easton Investment [Member] | |||
Investing Activities | |||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 0 | 0 | 13,000,000 |
Third Party Sourcing Business [Member] | |||
Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: | |||
Proceeds from Equity Method Investment (Operating) | 18,000,000 | ||
Investing Activities | |||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 0 | 46,000,000 | 22,000,000 |
L Brands, Inc. [Member] | |||
Operating Activities | |||
Net Income | 1,042,000,000 | 903,000,000 | 753,000,000 |
Changes in Assets and Liabilities, Net of Assets and Liabilities related to Divestitures: | |||
Net Cash Provided by (Used for) Operating Activities | -333,000,000 | -302,000,000 | -361,000,000 |
Investing Activities | |||
Capital Expenditures | 0 | 0 | 0 |
Other Investing Activities | 0 | 0 | 0 |
Net Cash Used for Investing Activities | 0 | 0 | 0 |
Repayments of Long-term Debt | 213,000,000 | 57,000,000 | |
Financing Activities | |||
Proceeds from Issuance of Long-term Debt | 495,000,000 | 985,000,000 | |
Borrowings from Revolving Facility | 0 | 290,000,000 | |
Repayments on Revolving Facility | 0 | -290,000,000 | |
Financing Costs | -5,000,000 | ||
Repurchase of Common Stock | -87,000,000 | -60,000,000 | -629,000,000 |
Dividends Paid | -691,000,000 | -349,000,000 | -1,449,000,000 |
Excess Tax Benefits from Share-based Compensation | 0 | 0 | 0 |
Proceeds From Exercise of Stock Options and Other | 34,000,000 | 32,000,000 | 52,000,000 |
Net Cash Provided by (Used for) Financing Activities | 333,000,000 | 302,000,000 | 361,000,000 |
Effects of Exchange Rate Changes on Cash | 0 | 0 | 0 |
Net Increase (Decrease) in Cash and Cash Equivalents | 0 | 0 | 0 |
Cash and Cash Equivalents, Beginning of Year | 0 | 0 | 0 |
Cash and Cash Equivalents, End of Year | 0 | 0 | 0 |
L Brands, Inc. [Member] | Third Party Sourcing Business [Member] | |||
Investing Activities | |||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | $0 | $0 |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended | ||
Jan. 31, 2015 | |||
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies | ||
Description of Business | |||
L Brands, Inc. (“the Company”) operates in the highly competitive specialty retail business. The Company is a specialty retailer of women’s intimate and other apparel, beauty and personal care products and accessories. The Company sells its merchandise through company-owned specialty retail stores in the U.S., Canada and the U.K., which are primarily mall-based, and through its websites and other channels. The Company's other international operations are primarily through franchise, license and wholesale partners. The Company currently operates the following retail brands: | |||
• | Victoria’s Secret | ||
• | Victoria's Secret PINK | ||
• | Bath & Body Works | ||
• | La Senza | ||
• | Henri Bendel | ||
Fiscal Year | |||
The Company’s fiscal year ends on the Saturday nearest to January 31. As used herein, “2014” and “2013” refer to the 52-week periods ending January 31, 2015 and February 1, 2014, respectively. “2012” refers to the 53-week period ending February 2, 2013. | |||
Basis of Consolidation | |||
The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | |||
The Company accounts for investments in unconsolidated entities where it exercises significant influence, but does not have control, using the equity method. Under the equity method of accounting, the Company recognizes its share of the investee net income or loss. Losses are only recognized to the extent the Company has positive carrying value related to the investee. Carrying values are only reduced below zero if the Company has an obligation to provide funding to the investee. The Company’s share of net income or loss of unconsolidated entities from which the Company purchases merchandise or merchandise components is included in Costs of Goods Sold, Buying and Occupancy on the Consolidated Statements of Income. The Company’s share of net income or loss of all other unconsolidated entities is included in Other Income on the Consolidated Statements of Income. The Company’s equity investments are required to be reviewed for impairment when it is determined there may be an other than temporary loss in value. | |||
Third-party Apparel Sourcing Business | |||
On October 31, 2011, the Company divested a majority ownership interest in its third-party apparel sourcing business to affiliates of Sycamore Partners. The Company is accounting for its continuing investment under the equity method of accounting. For additional information, see Note 8, “Equity Investments and Other.” | |||
Cash and Cash Equivalents | |||
Cash and Cash Equivalents include cash on hand, demand deposits with financial institutions and highly liquid investments with original maturities of less than 90 days. The Company’s outstanding checks, which totaled $42 million as of January 31, 2015 and $62 million as of February 1, 2014, are included in Accounts Payable on the Consolidated Balance Sheets. | |||
Concentration of Credit Risk | |||
The Company maintains cash and cash equivalents and derivative contracts with various major financial institutions. The Company monitors the relative credit standing of financial institutions with whom the Company transacts and limits the amount of credit exposure with any one entity. Currently, the Company’s investment portfolio is comprised of U.S. government obligations, U.S. Treasury and AAA-rated money market funds, highly rated commercial paper and bank deposits. | |||
The Company also periodically reviews the relative credit standing of franchise, license and wholesale partners and other entities to which the Company grants credit terms in the normal course of business. | |||
Inventories | |||
Inventories are principally valued at the lower of cost or market, on a weighted-average cost basis. | |||
The Company records valuation adjustments to its inventories if the cost of specific inventory items on hand exceeds the amount it expects to realize from the ultimate sale or disposal of the inventory. These estimates are based on management’s judgment regarding future demand and market conditions and analysis of historical experience. | |||
The Company also records inventory loss adjustments for estimated physical inventory losses that have occurred since the date of the last physical inventory. These estimates are based on management’s analysis of historical results and operating trends. | |||
Advertising Costs | |||
Advertising and catalogue costs are expensed at the time the promotion first appears in media, in the store or when the advertising is mailed. Advertising and catalogue costs totaled $436 million for 2014, $452 million for 2013 and $460 million for 2012. | |||
Property and Equipment | |||
The Company’s property and equipment are recorded at cost and depreciation/amortization is computed on a straight-line basis using the following depreciable life ranges: | |||
Category of Property and Equipment | Depreciable Life Range | ||
Software, including software developed for internal use | 3 - 7 years | ||
Store related assets | 3 - 10 years | ||
Leasehold improvements | Shorter of lease term or 10 years | ||
Non-store related building and site improvements | 10 - 15 years | ||
Other property and equipment | 20 years | ||
Buildings | 30 years | ||
When a decision has been made to dispose of property and equipment prior to the end of the previously estimated useful life, depreciation estimates are revised to reflect the use of the asset over the shortened estimated useful life. The Company’s cost of assets sold or retired and the related accumulated depreciation are removed from the accounts with any resulting gain or loss included in net income. Maintenance and repairs are charged to expense as incurred. Major renewals and betterments that extend useful lives are capitalized. | |||
Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset. | |||
Goodwill and Intangible Assets | |||
The Company has certain intangible assets resulting from business combinations and acquisitions that are recorded at cost. Intangible assets with finite lives are amortized on a straight-line basis over their respective estimated useful lives ranging from 3 to 5 years. | |||
Intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset. | |||
Goodwill is reviewed for impairment each year in the fourth quarter and may be reviewed more frequently if certain events occur or circumstances change. First, pursuant to Accounting Standards Update ("ASU") No. 2011-08, Testing Goodwill for Impairment, the Company performs a qualitative assessment to determine whether it is more likely than not that each reporting unit's fair value is less than its carrying value, including goodwill. If the Company determines that it is more likely than not that the fair value of the reporting unit is less than its carrying value, the Company then estimates the fair value of all assets and liabilities of that reporting unit, including the implied fair value of goodwill, through either estimated discounted future cash flows or market-based methodologies. If the carrying value of goodwill exceeds the implied fair value, the Company recognizes an impairment charge equal to the difference. The Company's reporting units are determined in accordance with the provisions of Accounting Standards Codification ("ASC") Topic 350, Intangibles - Goodwill and Other. The Company's reporting units that have goodwill are Victoria's Secret Stores, Victoria's Secret Direct and Bath & Body Works. | |||
Intangible assets with indefinite lives are reviewed for impairment each year in the fourth quarter and may be reviewed more frequently if certain events occur or circumstances change. First, pursuant to ASU No. 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment, the Company performs a qualitative assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. If the Company determines that it is more likely than not that the fair value of the asset is less than its carrying amount, the Company estimates the fair value, usually determined by the estimated discounted future cash flows of the asset, compares that value with its carrying amount and records an impairment charge, if any. | |||
If future economic conditions are different than those projected by management, future impairment charges may be required. | |||
Leases and Leasehold Improvements | |||
The Company has leases that contain predetermined fixed escalations of minimum rentals and/or rent abatements subsequent to taking possession of the leased property. The Company recognizes the related rent expense on a straight-line basis commencing upon the store possession date. The Company records the difference between the recognized rental expense and amounts payable under the leases as deferred lease credits. The Company’s liability for predetermined fixed escalations of minimum rentals and/or rent abatements totaled $142 million as of January 31, 2015 and $131 million as of February 1, 2014. These liabilities are included in Other Long-term Liabilities on the Consolidated Balance Sheets. | |||
The Company receives construction allowances from landlords related to its retail stores. These allowances are generally comprised of cash amounts received by the Company from its landlords as part of the negotiated lease terms. The Company records a receivable and a landlord allowance at the lease commencement date (date of initial possession of the store). The landlord allowance is amortized on a straight-line basis as a reduction of rent expense over the term of the lease (including the pre-opening build-out period), and the receivable is reduced as amounts are received from the landlord. The Company’s unamortized portion of landlord allowances, which totaled $192 million as of January 31, 2015 and $181 million as of February 1, 2014, is included in Other Long-term Liabilities on the Consolidated Balance Sheets. | |||
The Company also has leasehold improvements which are amortized over the shorter of their estimated useful lives or the period from the date the assets are placed in service to the end of the initial lease term. Leasehold improvements made after the inception of the initial lease term are depreciated over the shorter of their estimated useful lives or the remaining lease term, including renewal periods, if reasonably assured. | |||
Foreign Currency Translation | |||
The functional currency of the Company’s foreign operations is generally the applicable local currency. Assets and liabilities are translated into U.S. dollars using the current exchange rates in effect as of the balance sheet date, while revenues and expenses are translated at the average exchange rates for the period. The Company’s resulting translation adjustments are recorded as a component of Comprehensive Income in the Consolidated Statements of Comprehensive Income and the Consolidated Statements of Total Equity (Deficit). | |||
Derivative Financial Instruments | |||
The Company uses derivative instruments designated as cash flow hedges or fair value hedges and non-designated derivative instruments to manage exposure to foreign currency exchange rates and interest rates. The Company does not use derivative financial instruments for trading purposes. All derivative financial instruments are recorded on the Consolidated Balance Sheets at fair value. | |||
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. | |||
For derivative instruments that are designated and qualify as fair value hedges, the changes in the fair value of the derivative instrument have an equal and offsetting impact to the carrying value of the liability on the balance sheet. | |||
For derivative instruments that are not designated as hedging instruments, the gain or loss on the derivative instrument is recognized in current earnings. | |||
Fair Value | |||
The authoritative guidance included in ASC Topic 820, Fair Value Measurements and Disclosure, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. This authoritative guidance further establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: | |||
• | Level 1—Quoted market prices in active markets for identical assets or liabilities. | ||
• | Level 2—Observable inputs other than quoted market prices included in Level 1, such as quoted prices of similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | ||
• | Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. | ||
The Company estimates the fair value of financial instruments, property and equipment and goodwill and intangible assets in accordance with the provisions of ASC Topic 820. | |||
Income Taxes | |||
The Company accounts for income taxes under the asset and liability method. Under this method, taxes currently payable or refundable are accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are also recognized for realizable operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted income tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in income tax rates is recognized in the Company’s Consolidated Statement of Income in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if it is more likely than not that such assets will not be realized. U.S. deferred income taxes are not provided on undistributed income of foreign subsidiaries where such earnings are considered to be permanently reinvested for the foreseeable future. | |||
In determining the Company’s provision for income taxes, the Company considers permanent differences between book and tax income and statutory income tax rates. The Company’s effective income tax rate is affected by items including changes in tax law, the tax jurisdiction of new stores or business ventures and the level of earnings. | |||
The Company follows a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. | |||
The Company’s income tax returns, like those of most companies, are periodically audited by domestic and foreign tax authorities. These audits include questions regarding the Company’s tax filing positions, including the timing and amount of deductions and the allocation of income among various tax jurisdictions. At any one time, multiple tax years are subject to audit by the various tax authorities. A number of years may elapse before a particular matter for which the Company has established an accrual is audited and fully resolved or clarified. The Company adjusts its tax contingencies accrual and income tax provision in the period in which matters are effectively settled with tax authorities at amounts different from its established accrual, when the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. The Company includes its tax contingencies accrual, including accrued penalties and interest, in Other Long-term Liabilities on the Consolidated Balance Sheets unless the liability is expected to be paid within one year. Changes to the tax contingencies accrual, including accrued penalties and interest, are included in Provision for Income Taxes on the Consolidated Statements of Income. | |||
Self Insurance | |||
The Company is self-insured for medical, workers’ compensation, property, general liability and automobile liability up to certain stop-loss limits. Such costs are accrued based on known claims and an estimate of incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information and actuarial estimates. | |||
Noncontrolling Interest | |||
Noncontrolling interest represents the portion of equity interests of consolidated affiliates not owned by the Company. | |||
Share-based Compensation | |||
The Company recognizes all share-based payments to employees and directors as compensation cost over the service period based on their estimated fair value on the date of grant. | |||
Compensation cost is recognized over the service period for the fair value of awards that actually vest. Compensation expense for awards without a performance condition is recognized, net of estimated forfeitures, using a single award approach (each award is valued as one grant, irrespective of the number of vesting tranches). Compensation expense for awards with a performance condition is recognized, net of estimated forfeitures, using a multiple award approach (each vesting tranche is valued as one grant). | |||
Revenue Recognition | |||
The Company recognizes sales upon customer receipt of the merchandise, which for direct response revenues reflects an estimate of shipments that have not yet been received by the customer based on shipping terms and estimated delivery times. The Company’s shipping and handling revenues are included in Net Sales with the related costs included in Costs of Goods Sold, Buying and Occupancy on the Consolidated Statements of Income. The Company also provides a reserve for projected merchandise returns based on prior experience. Net Sales exclude sales tax collected from customers. | |||
The Company’s brands sell gift cards with no expiration dates to customers. The Company does not charge administrative fees on unused gift cards. The Company recognizes income from gift cards when they are redeemed by the customer. In addition, the Company recognizes income on unredeemed gift cards when it can determine that the likelihood of the gift card being redeemed is remote and that there is no legal obligation to remit the unredeemed gift cards to relevant jurisdictions (gift card breakage). The Company determines the gift card breakage rate based on historical redemption patterns. Gift card breakage is included in Net Sales in the Consolidated Statements of Income. | |||
The Company also recognize revenues associated with franchise, license and wholesale arrangements. Revenue recognized under franchise and license arrangements generally consists of royalties earned and recognized upon sale of merchandise by franchise and license partners to retail customers. Revenue is generally recognized under wholesale arrangements at the time the title passes to the partner. | |||
The Company recognizes revenue associated with merchandise sourcing and production services provided to third parties. Revenue is recognized at the time the title passes to the customer. | |||
Costs of Goods Sold, Buying and Occupancy | |||
The Company’s costs of goods sold include merchandise costs, net of discounts and allowances, freight and inventory shrinkage. The Company’s buying and occupancy expenses primarily include payroll, benefit costs and operating expenses for its buying departments and distribution network, rent, common area maintenance, real estate taxes, utilities, maintenance, fulfillment expenses and depreciation for the Company’s stores, warehouse facilities and equipment. | |||
General, Administrative and Store Operating Expenses | |||
The Company’s general, administrative and store operating expenses primarily include payroll and benefit costs for its store-selling and administrative departments (including corporate functions), marketing, advertising and other operating expenses not specifically categorized elsewhere in the Consolidated Statements of Income. | |||
Use of Estimates in the Preparation of Financial Statements | |||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. Actual results may differ from those estimates, and the Company revises its estimates and assumptions as new information becomes available. |
New_Accounting_Pronouncements_
New Accounting Pronouncements (Notes) | 12 Months Ended |
Jan. 31, 2015 | |
New Accounting Pronouncements Text Block [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | New Accounting Pronouncement |
Revenue Recognition from Contracts with Customers | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, Revenue from Contracts with Customers. This guidance requires companies to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This guidance will be effective beginning in fiscal 2017, and early adoption is not permitted. The standard allows for either a full retrospective or a modified retrospective transition method. The Company is currently evaluating the impact of this standard, including the transition method, on its consolidated results of operations, financial position and cash flows. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share | Earnings Per Share | ||||||||
Earnings per basic share are computed based on the weighted-average number of outstanding common shares. Earnings per diluted share include the weighted-average effect of dilutive options and restricted stock on the weighted-average shares outstanding. | |||||||||
The following table provides shares utilized for the calculation of basic and diluted earnings per share for 2014, 2013 and 2012: | |||||||||
2014 | 2013 | 2012 | |||||||
(in millions) | |||||||||
Weighted-average Common Shares: | |||||||||
Issued Shares | 309 | 306 | 302 | ||||||
Treasury Shares | (17 | ) | (16 | ) | (12 | ) | |||
Basic Shares | 292 | 290 | 290 | ||||||
Effect of Dilutive Options and Restricted Stock | 6 | 6 | 7 | ||||||
Diluted Shares | 298 | 296 | 297 | ||||||
Anti-dilutive Options and Awards (a) | 1 | 1 | 1 | ||||||
________________ | |||||||||
(a) | These options and awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. |
Restructuring_Activities_Notes
Restructuring Activities (Notes) | 12 Months Ended |
Jan. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring Activities |
During the fourth quarter of 2011, the Company initiated a restructuring program designed to resize a portion of La Senza's store fleet and relocate its home office from Montreal, Canada to Columbus, Ohio. The Company recognized a pre-tax charge consisting of contract termination costs, severance and other costs of $24 million, including non-cash charges of $5 million, in the fourth quarter of 2011. In 2012, the Company made cash payments of $11 million and decreased the estimate of expected contract termination costs by $3 million related to this restructuring program. This $3 million change in estimate was included in Cost of Goods Sold, Buying and Occupancy on the 2012 Consolidated Statements of Income. During 2013, the Company made cash payments of $3 million and decreased the estimate of expected contract termination costs by an additional $1 million related to this restructuring program. During 2014, the Company made cash payments of $1 million, thereby completing the program. | |
During the second quarter of 2012, the Company initiated a second restructuring program designed to further resize the La Senza store fleet. In 2012, the Company recognized a pre-tax charge of $17 million, including non-cash charges of $6 million. Restructuring charges of $16 million and $1 million are included in Cost of Goods Sold, Buying and Occupancy and General, Administrative and Store Operating Expenses, respectively, in the 2012 Consolidated Statement of Income. In 2012, the Company made cash payments of $5 million related to this restructuring program. During 2013, the Company made cash payments of $3 million and decreased the estimate of expected contract termination costs by $1 million related to this restructuring program. During 2014, the Company made cash payments of $1 million. The remaining balance of $1 million is included in Other Long-term Liabilities on the January 31, 2015 Consolidated Balance Sheet. |
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment, Net | Property and Equipment, Net | |||||||
The following table provides details of property and equipment, net as of January 31, 2015 and February 1, 2014: | ||||||||
January 31, | February 1, | |||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Land | $ | 87 | $ | 58 | ||||
Buildings and Improvements | 413 | 408 | ||||||
Furniture, Fixtures, Software and Equipment | 3,169 | 2,984 | ||||||
Leasehold Improvements | 1,647 | 1,534 | ||||||
Construction in Progress | 164 | 117 | ||||||
Total | 5,480 | 5,101 | ||||||
Accumulated Depreciation and Amortization | (3,203 | ) | (3,056 | ) | ||||
Property and Equipment, Net | $ | 2,277 | $ | 2,045 | ||||
Depreciation expense was $438 million in 2014, $406 million in 2013 and $386 million in 2012. | ||||||||
In the fourth quarter of 2012, the Company concluded that the continued negative operating results of the Henri Bendel business was an indicator of potential impairment for the Henri Bendel long-lived store assets. The Company calculated the impairment by comparing the estimated discounted cash flows at each store to its respective carrying value and recognized an impairment charge of $27 million. This impairment charge is included in Cost of Goods Sold, Buying and Occupancy on the 2012 Consolidated Statement of Income. Based on the evaluation performed in the fourth quarters of 2013 and 2014, the Company concluded no additional impairment charge was necessary. The carrying value of the Henri Bendel long-lived store assets was $4 million and $5 million as of January 31, 2015 and February 1, 2014, respectively. |
Inventories
Inventories | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Inventories | Inventories | |||||||
The following table provides details of inventories as of January 31, 2015 and February 1, 2014: | ||||||||
January 31, | February 1, | |||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Finished Goods Merchandise | $ | 942 | $ | 1,073 | ||||
Raw Materials and Merchandise Components | 94 | 92 | ||||||
Total Inventories | $ | 1,036 | $ | 1,165 | ||||
Goodwill_Trade_Names_and_Other
Goodwill, Trade Names and Other Intangible Assets, Net | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Goodwill, Trade Names and Other Intangible Assets, Net [Abstract] | ||||||||
Goodwill, Trade Names and Other Intangible Assets, Net | Goodwill, Trade Names and Other Intangible Assets, Net | |||||||
Goodwill | ||||||||
The following table provides detail regarding the composition of goodwill for the fiscal years ended January 31, 2015 and February 1, 2014: | ||||||||
31-Jan-15 | 1-Feb-14 | |||||||
(in millions) | ||||||||
Victoria's Secret | $ | 690 | $ | 690 | ||||
Bath & Body Works | 628 | 628 | ||||||
Goodwill | $ | 1,318 | $ | 1,318 | ||||
The Company tests for goodwill impairment at the reporting unit level. The Company's reporting units with goodwill balances at January 31, 2015 were Victoria's Secret Stores, Victoria's Secret Direct and Bath & Body Works. Goodwill associated with the La Senza reporting unit was fully impaired at February 2, 2013. | ||||||||
Intangible Assets—Indefinite Lives | ||||||||
Intangible assets with indefinite lives represent the Victoria’s Secret and Bath & Body Works trade names which are included in Trade Names and Other Intangible Assets, Net on the Consolidated Balance Sheets. The following table provides additional detail regarding the composition of trade names as of January 31, 2015 and February 1, 2014: | ||||||||
January 31, 2015 | February 1, 2014 | |||||||
(in millions) | ||||||||
Victoria's Secret | $ | 246 | $ | 246 | ||||
Bath & Body Works | 165 | 165 | ||||||
Intangible Assets - Trade Names | $ | 411 | $ | 411 | ||||
Intangible Assets—Finite Lives | ||||||||
Intangible assets with finite lives represent certain trademarks and customer relationships. These assets were fully amortized in 2013, as such there was no amortization expense in 2014. Amortization expense was $1 million for 2013 and $3 million for 2012. | ||||||||
Impairment Charges | ||||||||
La Senza | ||||||||
In conjunction with the January 2007 acquisition of La Senza, the Company recognized goodwill, intangible assets with indefinite lives and intangible assets with finite lives. These assets were included in the La Senza reporting unit which is included in Other in the Company's segment reporting. | ||||||||
Since acquiring La Senza in January 2007, the Company completed impairment testing annually in the fourth quarter. As part of the annual impairment evaluation, the Company assessed the recoverability of goodwill. In both 2008 and 2011, La Senza’s operating results failed to meet the Company’s expectations. As a result, the Company concluded that the carrying value of the La Senza goodwill exceeded the implied fair value based on the estimated fair value of the La Senza reporting unit. Accordingly, the Company recorded goodwill impairment charges of $189 million and $119 million in 2008 and 2011, respectively. | ||||||||
Prior to completing the goodwill impairment evaluation each year, the Company performed its annual impairment analysis for its indefinite-lived trade name. Based on its evaluation using a relief from royalty and other discounted cash flow methodologies, the Company concluded that the La Senza indefinite-lived trade name was impaired. Accordingly, the Company recorded impairment charges of $25 million and $112 million in 2008 and 2011, respectively, to reduce the carrying value of the indefinite-lived trade name asset to its estimated fair value. | ||||||||
2012 | ||||||||
In the fourth quarter of 2012, the Company completed its annual impairment testing. During 2012, La Senza’s operating results again failed to meet the Company's expectations, as both comparable store sales and gross profit were below our beginning of year expectations. As part of the annual impairment evaluation, the Company concluded that the carrying value of the La Senza goodwill exceeded the implied fair value based on the estimated fair value of the La Senza reporting unit. Accordingly, the Company recorded a goodwill impairment charge of $12 million which fully impaired La Senza's remaining goodwill. The goodwill impairment charge is included in Impairment of Goodwill and Other Intangible Assets in the 2012 Consolidated Statement of Income. | ||||||||
Prior to completing the goodwill impairment evaluation, the Company performed its annual impairment analysis for its indefinite-lived trade name. Based on its evaluation using relief from royalty and other discounted cash flow methodologies, the Company concluded that the La Senza trade name asset was impaired. Accordingly, the Company recorded an impairment charge of $75 million to reduce the carrying value of the trade name asset to zero. The Company also recognized a $6 million impairment charge related to certain finite-lived customer relationship intangible assets. These impairment charges are included in Impairment of Goodwill and Other Intangible Assets in the 2012 Consolidated Statement of Income. |
Equity_Investments_and_Other
Equity Investments and Other | 12 Months Ended |
Jan. 31, 2015 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |
Equity Investments and Other | Equity Investments and Other |
Third-party Apparel Sourcing Business | |
On October 31, 2011, the Company divested a majority ownership interest in its third-party apparel sourcing business to affiliates of Sycamore Partners. The Company's remaining ownership interest is accounted for under the equity method of accounting. | |
In conjunction with the transaction, the Company entered into transition services agreements whereby the Company was providing support in various operational areas including logistics, technology and finance through the third quarter of 2014. In the fourth quarter of 2014, the Company extended the transition services agreements in the operational areas of logistics and technology. The terms of these agreements range from one to two years with the last agreement expiring in October 2016. | |
In the fourth quarter of 2012, the Company received a $28 million dividend from the third-party apparel sourcing business. This reduced the Company's carrying value in the investment. Of this dividend, $22 million is included in Return of Capital from Third-party Apparel Sourcing Business Investment within the Investing Activities section of the 2012 Consolidated Statement of Cash Flows, and $6 million is included in Other Assets and Liabilities within the Operating Activities section of the 2012 Consolidated Statement of Cash Flows. | |
In 2013, the Company received $64 million in dividends from the third-party apparel sourcing business. These dividends reduced the Company's carrying value in the investment. Of these dividends, $46 million is included in Return of Capital from Third-party Apparel Sourcing Business Investment within the Investing Activities section of the 2013 Consolidated Statement of Cash Flows, and $18 million is included in Other Assets and Liabilities within the Operating Activities section of the 2013 Consolidated Statement of Cash Flows. | |
In 2014, the Company received $2 million in dividends from the third-party apparel sourcing business. These dividends reduced the Company's carrying value in the investment and are included in Other Assets and Liabilities within the Operating Activities section of the 2014 Consolidated Statement of Cash Flows. | |
The Company's carrying value for this investment was $8 million as of January 31, 2015 and $3 million as of February 1, 2014 and is included in Other Assets on the Consolidated Balance Sheets. The Company's share of net income (loss) from this investment is included in Other Income on the Consolidated Statements of Income. | |
Subsequent to January 31, 2015, the Company divested its remaining ownership interest in the third-party apparel sourcing business to Sycamore Partners. The sale of the remaining ownership interest resulted in pre-tax cash proceeds of $85 million and a gain of approximately $78 million (after-tax gain of approximately $70 million) which will be recognized in the first quarter of 2015. | |
Easton Investment | |
The Company has land and other investments in Easton, a 1,300 acre planned community in Columbus, Ohio that integrates office, hotel, retail, residential and recreational space. These investments, at cost, totaled $101 million as of January 31, 2015 and $105 million as of February 1, 2014 and are recorded in Other Assets on the Consolidated Balance Sheets. In the third quarter of 2012, the Company received $13 million in cash distributions from certain of the Company's investments in Easton which are included in Return of Capital from Easton Investments within the Investing Activities section on the 2012 Consolidated Statement of Cash Flow. The Company recognized a pre-tax gain of $13 million which is included in Other Income on the 2012 Consolidated Statements of Income. | |
Included in the Company’s Easton investments is an equity interest in Easton Town Center, LLC (“ETC”), an entity that owns and has developed a commercial entertainment and shopping center. The Company’s investment in ETC is accounted for using the equity method of accounting. The Company has a majority financial interest in ETC, but another unaffiliated member manages ETC. Certain significant decisions regarding ETC require the consent of unaffiliated members in addition to the Company. | |
Also included in the Company's Easton investments is an equity interest in Easton Gateway, LLC ("EG"), an entity that owns and is developing a commercial shopping center in the Easton Community. The Company has a majority financial interest in EG, but another unaffiliated member manages the activities that most significantly impact the economic performance of EG including leasing, tenant relationships and maintenance of the center. Certain significant decisions regarding EG require the consent of the unaffiliated member in addition to the Company. In April 2014, EG entered into a construction loan for financing related to the development of the commercial shopping center that matures in April 2017. In conjunction with the EG loan, the Company, along with the unaffiliated member, provided a guarantee of interest, certain expenses and a completion guarantee on the construction of the commercial shopping center. | |
The Company has concluded EG is a variable interest entity; however, the Company is not the primary beneficiary as defined in ASC Topic 810, Consolidation, and, therefore, accounts for its investment in EG using the equity method of accounting. The Company’s investment in EG totaled $34 million as of January 31, 2015. The Company’s estimated maximum potential loss from its involvement with EG totaled $44 million. This includes the Company’s equity investment of $34 million and the Company’s estimated maximum potential loss from its guarantees related to EG's construction loan of $10 million. The estimated fair value of these guarantee obligations is not significant. |
Accrued_Expenses_and_Other
Accrued Expenses and Other | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Accrued Expenses and Other | Accrued Expenses and Other | |||||||
The following table provides additional information about the composition of accrued expenses and other as of January 31, 2015 and February 1, 2014: | ||||||||
January 31, | February 1, | |||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Deferred Revenue, Principally from Gift Card Sales | $ | 227 | $ | 207 | ||||
Compensation, Payroll Taxes and Benefits | 244 | 173 | ||||||
Interest | 82 | 86 | ||||||
Taxes, Other than Income | 71 | 63 | ||||||
Accrued Claims on Self-insured Activities | 37 | 37 | ||||||
Returns Reserve | 26 | 29 | ||||||
Rent | 28 | 24 | ||||||
Other | 185 | 168 | ||||||
Total Accrued Expenses and Other | $ | 900 | $ | 787 | ||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||
Income Taxes | Income Taxes | |||||||||||||||||||||||
The following table provides the components of the Company’s provision for income taxes for 2014, 2013 and 2012: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Current: | ||||||||||||||||||||||||
U.S. Federal | $ | 454 | $ | 407 | $ | 432 | ||||||||||||||||||
U.S. State | 69 | 90 | 67 | |||||||||||||||||||||
Non-U.S. | 21 | 28 | 18 | |||||||||||||||||||||
Total | 544 | 525 | 517 | |||||||||||||||||||||
Deferred: | ||||||||||||||||||||||||
U.S. Federal | 46 | 11 | 14 | |||||||||||||||||||||
U.S. State | 3 | 3 | 4 | |||||||||||||||||||||
Non-U.S. | 1 | 4 | (7 | ) | ||||||||||||||||||||
Total | 50 | 18 | 11 | |||||||||||||||||||||
Provision for Income Taxes | $ | 594 | $ | 543 | $ | 528 | ||||||||||||||||||
The non-U.S. component of pre-tax income, arising principally from overseas operations, was income of $152 million, $131 million and $1 million for 2014, 2013 and 2012, respectively. The 2012 income included the impact of the $93 million impairment of goodwill and other intangible assets at La Senza. | ||||||||||||||||||||||||
The Company's income taxes payable has been reduced by the excess tax benefits from employee stock plan awards. For stock options, the Company receives an excess income tax benefit calculated as the tax effect of the difference between the fair market value of the stock at the time of grant and exercise. For restricted stock, the Company receives an excess income tax benefit calculated as the tax effect of the difference between the fair market value of the stock at the time of grant and vesting. The Company had net excess tax benefits from equity awards of $43 million, $36 million and $116 million in 2014, 2013 and 2012, respectively, which were reflected as increases to equity. | ||||||||||||||||||||||||
The following table provides the reconciliation between the statutory federal income tax rate and the effective tax rate for 2014, 2013 and 2012: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Federal Income Tax Rate | 35 | % | 35 | % | 35 | % | ||||||||||||||||||
State Income Taxes, Net of Federal Income Tax Effect | 3.6 | % | 3.8 | % | 4 | % | ||||||||||||||||||
Impact of Non-U.S. Operations | (1.3 | )% | (1.4 | )% | 1.1 | % | ||||||||||||||||||
Non-deductible Impairment of Goodwill and Other Intangible Assets | — | % | — | % | 2.4 | % | ||||||||||||||||||
Other Items, Net | (1.0 | )% | 0.1 | % | (1.3 | )% | ||||||||||||||||||
Effective Tax Rate | 36.3 | % | 37.5 | % | 41.2 | % | ||||||||||||||||||
Deferred Taxes | ||||||||||||||||||||||||
The following table provides the effect of temporary differences that cause deferred income taxes as of January 31, 2015 and February 1, 2014. Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carryforwards at the end of the respective year. | ||||||||||||||||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||||||||||||||
Assets | Liabilities | Total | Assets | Liabilities | Total | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Leases | $ | 49 | $ | — | $ | 49 | $ | 46 | $ | — | $ | 46 | ||||||||||||
Non-qualified Retirement Plan | 97 | — | 97 | 94 | — | 94 | ||||||||||||||||||
Property and Equipment | — | (283 | ) | (283 | ) | — | (219 | ) | (219 | ) | ||||||||||||||
Goodwill | — | (15 | ) | (15 | ) | — | (15 | ) | (15 | ) | ||||||||||||||
Trade Names and Other Intangibles | — | (139 | ) | (139 | ) | — | (139 | ) | (139 | ) | ||||||||||||||
State Net Operating Loss Carryforwards | 18 | — | 18 | 21 | — | 21 | ||||||||||||||||||
Non-U.S. Operating Loss Carryforwards | 158 | — | 158 | 161 | — | 161 | ||||||||||||||||||
Valuation Allowance | (177 | ) | — | (177 | ) | (183 | ) | — | (183 | ) | ||||||||||||||
Other, Net | 79 | — | 79 | 71 | — | 71 | ||||||||||||||||||
Total Deferred Income Taxes | $ | 224 | $ | (437 | ) | $ | (213 | ) | $ | 210 | $ | (373 | ) | $ | (163 | ) | ||||||||
As of January 31, 2015, the Company had available for state income tax purposes net operating loss carryforwards which expire, if unused, in the years 2015 through 2034. The Company has analyzed the realization of the state net operating loss carryforwards on an individual state basis. For those states where the Company has determined that it is more likely than not that the state net operating loss carryforwards will not be realized, a valuation allowance has been provided for the deferred tax asset. | ||||||||||||||||||||||||
As of January 31, 2015, the Company had available for non-U.S. tax purposes net operating loss carryforwards which expire, if unused, in the years 2027 through 2034. The Company has determined that it is more likely than not that all of the net operating loss carryforwards will not be realized, and a valuation allowance has been provided for the net deferred tax assets, including the net operating loss carryforwards, of the related tax loss entities. | ||||||||||||||||||||||||
As of January 31, 2015, we have not provided deferred U.S. income taxes on approximately $216 million of undistributed earnings from non-U.S. subsidiaries. Any unrecognized deferred income tax liability resulting from these amounts is not expected to reverse in the foreseeable future; furthermore, the undistributed foreign earnings are permanently reinvested. If the Company elects to distribute these foreign earnings in the future, they could be subject to additional income taxes. Determination of the amount of any unrecognized deferred income tax liability is not practicable because such liability, if any, is dependent on circumstances existing if and when remittance occurs. | ||||||||||||||||||||||||
Income tax payments were $526 million for 2014, $468 million for 2013 and $336 million for 2012. | ||||||||||||||||||||||||
Uncertain Tax Positions | ||||||||||||||||||||||||
The following table summarizes the activity related to the Company’s unrecognized tax benefits for U.S. federal, state & non-U.S. tax jurisdictions for 2014, 2013 and 2012, without interest and penalties: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year | $ | 167 | $ | 185 | $ | 146 | ||||||||||||||||||
Increases in Unrecognized Tax Benefits for Prior Years | 16 | 39 | 13 | |||||||||||||||||||||
Decreases in Unrecognized Tax Benefits for Prior Years | (14 | ) | (54 | ) | (19 | ) | ||||||||||||||||||
Increases in Unrecognized Tax Benefits as a Result of Current Year Activity | 36 | 37 | 52 | |||||||||||||||||||||
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities | (5 | ) | (34 | ) | (1 | ) | ||||||||||||||||||
Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations | (7 | ) | (6 | ) | (6 | ) | ||||||||||||||||||
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year | $ | 193 | $ | 167 | $ | 185 | ||||||||||||||||||
Of the $193 million, $167 million and $185 million of total unrecognized tax benefits at January 31, 2015, February 1, 2014, and February 2, 2013, respectively, approximately $170 million, $143 million and $160 million, respectively, represent the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. These amounts are net of the offsetting tax effects from other tax jurisdictions. | ||||||||||||||||||||||||
Of the total unrecognized tax benefits, it is reasonably possible that $142 million could change in the next 12 months due to audit settlements, expiration of statute of limitations or other resolution of uncertainties. Due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of audits may result in amounts which could be different from this estimate. In such case, the Company will record additional tax expense or tax benefit in the period in which such matters are effectively settled. | ||||||||||||||||||||||||
The Company recognizes interest and penalties related to unrecognized tax benefits as components of income tax expense. The Company recognized interest and penalties expense of $1 million, $4 million and $1 million in 2014, 2013 and 2012, respectively. The Company has accrued approximately $31 million and $30 million for the payment of interest and penalties as of January 31, 2015 and February 1, 2014, respectively. Accrued interest and penalties are included within Other Long-term Liabilities on the Consolidated Balance Sheets. | ||||||||||||||||||||||||
The Company files U.S. federal income tax returns as well as income tax returns in various states and in non-U.S. jurisdictions. At the end of 2014, the Company was subject to examination by the IRS for 2011 through 2013. The Company is also subject to various U.S. state and local income tax examinations for the years 2009 to 2013. Finally, the Company is subject to multiple non-U.S. tax jurisdiction examinations for the years 2004 to 2013. In some situations, the Company determines that it does not have a filing requirement in a particular tax jurisdiction. Where no return has been filed, no statute of limitations applies. Accordingly, if a tax jurisdiction reaches a conclusion that a filing requirement does exist, additional years may be reviewed by the tax authority. The Company believes it has appropriately accounted for uncertainties related to this issue. |
Longterm_Debt
Long-term Debt | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||||
Long-term Debt | Long-term Debt | |||||||
The following table provides the Company’s long-term debt balance as of January 31, 2015 and February 1, 2014: | ||||||||
January 31, | February 1, | |||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Senior Unsecured Debt with Subsidiary Guarantee | ||||||||
$1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) | $ | 1,000 | $ | 1,000 | ||||
$1 billion, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”) | 1,000 | 1,000 | ||||||
$500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) | 500 | 500 | ||||||
$500 million, 8.50% Fixed Interest Rate Notes due June 2019, Less Unamortized Discount (“2019 Notes”) (a) | 501 | 494 | ||||||
$400 million, 7.00% Fixed Interest Rate Notes due May 2020 (“2020 Notes”) | 400 | 400 | ||||||
Total Senior Unsecured Debt with Subsidiary Guarantee | $ | 3,401 | $ | 3,394 | ||||
Senior Unsecured Debt | ||||||||
$700 million, 6.90% Fixed Interest Rate Notes due July 2017, Less Unamortized Discount (“2017 Notes”) (b) | $ | 715 | $ | 718 | ||||
$350 million, 6.95% Fixed Interest Rate Debentures due March 2033, Less Unamortized Discount (“2033 Notes”) | 350 | 350 | ||||||
$300 million, 7.60% Fixed Interest Rate Notes due July 2037, Less Unamortized Discount (“2037 Notes”) | 299 | 299 | ||||||
5.25% Fixed Interest Rate Notes due November 2014, Less Unamortized Discount (“2014 Notes”) (c) | — | 215 | ||||||
Total Senior Unsecured Debt | $ | 1,364 | $ | 1,582 | ||||
Total | $ | 4,765 | $ | 4,976 | ||||
Current Portion of Long-term Debt | — | (215 | ) | |||||
Total Long-term Debt, Net of Current Portion | $ | 4,765 | $ | 4,761 | ||||
_______________ | ||||||||
(a) | The balance includes a fair value interest rate hedge adjustment which increased the debt balance by $8 million as of January 31, 2015 and $2 million as of February 1, 2014. | |||||||
(b) | The balances include a fair value interest rate hedge adjustment which increased the debt balance by $15 million as of January 31, 2015 and $19 million as of February 1, 2014. | |||||||
(c) | The outstanding principal balance was $213 million as of February 1, 2014. This balance includes a fair value interest rate hedge adjustment which increased the debt balance by $2 million. | |||||||
The following table provides principal payments due on long-term debt in the next five fiscal years and the remaining years thereafter: | ||||||||
Fiscal Year (in millions) | ||||||||
2015 | $ | — | ||||||
2016 | — | |||||||
2017 | 700 | |||||||
2018 | — | |||||||
2019 | 500 | |||||||
Thereafter | 3,550 | |||||||
Cash paid for interest was $328 million in 2014, $300 million in 2013 and $276 million in 2012. | ||||||||
Issuance of Notes | ||||||||
In February 2012, the Company issued $1 billion of 5.625% notes due in February 2022 utilizing an existing shelf registration under which debt securities, common and preferred stock and other securities can be issued. The 2022 Notes are jointly and severally guaranteed on a full and unconditional basis by the Guarantors. The proceeds from the issuance were $985 million, which were net of issuance costs of $15 million. These issuance costs are being amortized through the maturity date of February 2022 and are included within Other Assets on the Consolidated Balance Sheets. | ||||||||
In October 2013, the Company issued $500 million of 5.625% notes due in October 2023 utilizing an existing shelf registration under which debt securities, common and preferred stock and other securities can be issued. The 2023 Notes are jointly and severally guaranteed on a full and unconditional basis by the Guarantors. The proceeds from the issuance were $495 million, which were net of issuance costs of $5 million. These issuance costs are being amortized through the maturity date of October 2023 and are included within Other Assets on the Consolidated Balance Sheets. | ||||||||
Repayment of Notes | ||||||||
In November 2014, the Company repaid the remaining $213 million of its 5.25% Senior Unsecured Notes due November 2014 with cash on hand. | ||||||||
Revolving Facility | ||||||||
In July 2014, the Company entered into an amendment and restatement (“Amendment”) of its secured revolving credit facility (“Revolving Facility”). The Amendment maintains the aggregate amount of the commitments of the lenders under the Revolving Facility at $1 billion and extends the termination date from July 15, 2016 to July 18, 2019. In addition, the Amendment allows certain of the Company's non-U.S. subsidiaries to issue loans and obtain letters of credit in U.S. dollars, Canadian dollars or British pounds. | ||||||||
The Amendment reduced fees payable under the Revolving Facility which are based on the Company’s long-term credit ratings. The fees related to committed and unutilized amounts per year are 0.30% per annum, and the fees related to outstanding letters of credit are 1.50% per annum. In addition, the interest rate on outstanding U.S. dollar borrowings or British pound borrowings is LIBOR plus 1.50%. The interest rate on outstanding Canadian dollar borrowings is CDOR plus 1.50%. | ||||||||
The Company incurred fees related to the Amendment of the Revolving Facility of $5 million, which were capitalized and are being amortized over the remaining term of the Revolving Facility. | ||||||||
The Revolving Facility continues to contain fixed charge coverage and debt to EBITDA financial covenants. The Company is required to maintain a fixed charge coverage ratio of not less than 1.75 to 1.00 and a consolidated debt to consolidated EBITDA ratio not exceeding 4.00 to 1.00 for the most recent four-quarter period. In addition, the Revolving Facility provides that investments and restricted payments may be made, without limitation on amount, if (a) at the time of and after giving effect to such investment or restricted payment the ratio of consolidated debt to consolidated EBITDA for the most recent four-quarter period is less than 3.00 to 1.00 and (b) no default or event of default exists. As of January 31, 2015, the Company was in compliance with both of its financial covenants, and the ratio of consolidated debt to consolidated EBITDA was less than 3.00 to 1.00. | ||||||||
During the second quarter of 2014 and the third quarter of 2013, the Company borrowed and repaid $5 million and $290 million, respectively, under the Revolving Facility. The maximum daily amount outstanding at any point in time during the second quarter of 2014 and third quarter of 2013 was $5 million and $140 million, respectively. | ||||||||
As of January 31, 2015, there were no borrowings outstanding under the Revolving Facility. | ||||||||
Letters of Credit | ||||||||
The Revolving Facility supports the Company’s letter of credit program. The Company had $19 million of outstanding letters of credit as of January 31, 2015 that reduce its remaining availability under the Revolving Facility. | ||||||||
Fair Value Interest Rate Swap Arrangements | ||||||||
For information related to the Company’s fair value interest rate swap arrangements, see Note 12, “Derivative Instruments.” |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | |||||||||
Jan. 31, 2015 | ||||||||||
Summary of Derivative Instruments [Abstract] | ||||||||||
Derivative Instruments | Derivative Instruments | |||||||||
Foreign Exchange Risk | ||||||||||
In January 2007, the Company entered into a series of cross-currency swaps related to approximately CAD$470 million of intercompany loans. These cross-currency swaps mitigate the exposure to fluctuations in the U.S. dollar-Canadian dollar exchange rate related to the Company’s Canadian operations. The cross-currency swaps require the periodic exchange of fixed rate Canadian dollar interest payments for fixed rate U.S. dollar interest payments as well as exchange of Canadian dollar and U.S. dollar principal payments upon maturity. The remaining cross-currency swaps mature in January 2016 and January 2018 at the same time as the related loans and are designated as cash flow hedges of foreign currency exchange risk. Changes in the U.S. dollar-Canadian dollar exchange rate and the related swap settlements result in reclassification of amounts from accumulated other comprehensive income to earnings to completely offset foreign currency transaction gains and losses recognized on the intercompany loans. | ||||||||||
In November 2014, the Company terminated cross-currency swaps of CAD$200 million related to the intercompany loans maturing in January 2015 and January 2017. The Company paid $4 million to settle the swaps. This $4 million expense related to the settlement of the swaps, as well as the foreign currency gains on these intercompany loans of $6 million, were recognized in earnings in the fourth quarter of 2014. | ||||||||||
The following table provides a summary of the fair value and balance sheet classification of the derivative financial instruments designated as foreign exchange cash flow hedges as of January 31, 2015 and February 1, 2014: | ||||||||||
January 31, | February 1, | |||||||||
2015 | 2014 | |||||||||
(in millions) | ||||||||||
Other Long-term Liabilities | $ | — | $ | 13 | ||||||
Other Long-term Assets | 21 | — | ||||||||
The following table provides a summary of the pre-tax financial statement effect of the gains and losses on the Company’s derivative instruments designated as foreign exchange cash flow hedges for 2014 and 2013: | ||||||||||
Location | 2014 | 2013 | ||||||||
(in millions) | ||||||||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) | $ | 34 | $ | 46 | |||||
(Gain) Loss Reclassified from Accumulated Other Comprehensive Income (Loss) into Other Income (a) | Other Income | (60 | ) | (50 | ) | |||||
________________ | ||||||||||
(a) | Represents reclassification of amounts from accumulated other comprehensive income to earnings to completely offset foreign currency transaction gains and losses recognized on the intercompany loans. No ineffectiveness was associated with these foreign exchange cash flow hedges. | |||||||||
Interest Rate Risk | ||||||||||
Interest Rate Designated Fair Value Hedges | ||||||||||
In July 2014, the Company entered into interest rate swap arrangements related to $100 million of the outstanding 2017 Notes and $100 million of the outstanding 2019 Notes. In 2013, the Company entered into interest rate swap arrangements related to $200 million of the outstanding 2017 Notes and $200 million of the outstanding 2019 Notes. The interest rate swap arrangements effectively convert the fixed interest rate on the related debt to a variable interest rate based on LIBOR plus a fixed percentage. | ||||||||||
The swap arrangements are designated as fair value hedges. The changes in the fair value of the interest rate swaps have an equal and offsetting impact to the carrying value of the debt on the balance sheet. The differential to be paid or received on the interest rate swap arrangements is accrued and recognized as an adjustment to interest expense. | ||||||||||
In prior periods, we entered into interest rate swap arrangements on the 2014 and 2017 Notes. In 2012, we terminated these interest rate designated fair value hedges. The carrying values of these notes include unamortized hedge settlements which are amortized as a reduction to interest expense through the respective maturity date of the Notes. | ||||||||||
The following table provides a summary of the fair value and balance sheet classification of the derivative financial instruments designated as interest rate fair value hedges as of January 31, 2015 and February 1, 2014: | ||||||||||
January 31, | February 1, | |||||||||
2015 | 2014 | |||||||||
(in millions) | ||||||||||
Other Assets | $ | 12 | $ | 5 | ||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Fair Value Measurements [Abstract] | ||||||||||||||||
Fair Value Disclosures | Fair Value Measurements | |||||||||||||||
The following table provides a summary of the carrying value and fair value of long-term debt as of January 31, 2015 and February 1, 2014: | ||||||||||||||||
January 31, | February 1, | |||||||||||||||
2015 | 2014 | |||||||||||||||
(in millions) | ||||||||||||||||
Carrying Value | $ | 4,765 | $ | 4,976 | ||||||||||||
Fair Value (a) | 5,305 | 5,333 | ||||||||||||||
________________ | ||||||||||||||||
(a) | The estimated fair value of the Company’s publicly traded debt is based on reported transaction prices which are considered Level 2 inputs in accordance with ASC Topic 820, Fair Value Measurements and Disclosure. The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange. | |||||||||||||||
The following table provides a summary of assets and liabilities measured in the consolidated financial statements at fair value on a recurring basis as of January 31, 2015 and February 1, 2014: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in millions) | ||||||||||||||||
As of January 31, 2015 | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and Cash Equivalents | $ | 1,681 | $ | — | $ | — | $ | 1,681 | ||||||||
Interest Rate Designated Fair Value Hedges | — | 12 | — | 12 | ||||||||||||
Cross-currency Cash Flow Hedges | — | 21 | — | 21 | ||||||||||||
Liabilities: | ||||||||||||||||
Lease Guarantees | — | — | 1 | 1 | ||||||||||||
As of February 1, 2014 | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and Cash Equivalents | $ | 1,519 | $ | — | $ | — | $ | 1,519 | ||||||||
Interest Rate Designated Fair Value Hedges | — | 5 | — | 5 | ||||||||||||
Liabilities: | ||||||||||||||||
Cross-currency Cash Flow Hedges | — | 13 | — | 13 | ||||||||||||
Lease Guarantees | — | — | 1 | 1 | ||||||||||||
The Company’s Level 2 fair value measurements are measured using market approach valuation techniques. The primary inputs to these techniques include benchmark interest rates and foreign currency exchange rates, as applicable to the underlying instruments. | ||||||||||||||||
The Company’s Level 3 fair value measurements are measured using income approach valuation techniques. The primary inputs to these techniques include the guaranteed lease payments, discount rates, as well as the Company’s assessment of the risk of default on guaranteed leases. | ||||||||||||||||
Management believes that the carrying values of accounts receivable, accounts payable and accrued expenses approximate fair value because of their short maturity. | ||||||||||||||||
The following table provides a reconciliation of the Company’s lease guarantees measured at fair value on a recurring basis using unobservable inputs (Level 3) for 2014 and 2013: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(in millions) | ||||||||||||||||
Beginning Balance | $ | 1 | $ | 2 | ||||||||||||
Change in Estimated Fair Value Reported in Earnings | — | (1 | ) | |||||||||||||
Ending Balance | $ | 1 | $ | 1 | ||||||||||||
The Company’s lease guarantees include minimum rent and additional payments covering taxes, common area costs and certain other expenses and relate to leases that commenced prior to the disposition of certain businesses. The fair value of these lease guarantees is impacted by economic conditions, probability of rent obligation payments, period of obligation as well as the discount rate utilized. For additional information, see Note 16, “Commitments and Contingencies.” |
Comprehensive_Income_Loss
Comprehensive Income (Loss) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Comprehensive Income Loss | ||||||||||||
Comprehensive Income (Loss) | Comprehensive Income | |||||||||||
Comprehensive Income consists of gains and losses on derivative instruments and foreign currency translation adjustments. The cumulative gains and losses on these items are included in Accumulated Other Comprehensive Income in the Consolidated Balance Sheets and Consolidated Statements of Shareholders' Equity (Deficit). | ||||||||||||
The following table provides the rollforward of accumulated other comprehensive income for 2014: | ||||||||||||
Foreign Currency Translation | Cash Flow Hedges | Accumulated Other Comprehensive Income | ||||||||||
(in millions) | ||||||||||||
Balance as of February 1, 2014 | $ | 30 | $ | 10 | $ | 40 | ||||||
Other Comprehensive Income (Loss) Before Reclassifications | 21 | 34 | 55 | |||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income | — | (60 | ) | (60 | ) | |||||||
Current-period Other Comprehensive Income (Loss) | 21 | (26 | ) | (5 | ) | |||||||
Balance as of January 31, 2015 | $ | 51 | $ | (16 | ) | $ | 35 | |||||
The following table provides the rollforward of accumulated other comprehensive income for 2013: | ||||||||||||
Foreign Currency Translation | Cash Flow Hedges | Accumulated Other Comprehensive Income | ||||||||||
(in millions) | ||||||||||||
Balance as of February 2, 2013 | $ | (10 | ) | $ | 14 | $ | 4 | |||||
Other Comprehensive Income (Loss) Before Reclassifications | 40 | 46 | 86 | |||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income | — | (50 | ) | (50 | ) | |||||||
Current-period Other Comprehensive Income (Loss) | 40 | (4 | ) | 36 | ||||||||
Balance as of February 1, 2014 | $ | 30 | $ | 10 | $ | 40 | ||||||
The components of accumulated other comprehensive income (loss) above are presented net of tax as applicable. | ||||||||||||
The following table provides a summary of the reclassification adjustments out of accumulated other comprehensive income for 2014: | ||||||||||||
Details About Accumulated Other Comprehensive Income Components | Amounts Reclassified from Accumulated Other Comprehensive Income | Location on Consolidated Statements of Income | ||||||||||
2014 | 2013 | |||||||||||
(in millions) | ||||||||||||
Cash Flow Hedges | $ | (60 | ) | $ | (50 | ) | Other Income | |||||
— | — | Provision for Income Taxes | ||||||||||
$ | (60 | ) | $ | (50 | ) | Net Income |
Leases
Leases | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Leases | Leases | |||||||||||
The Company is committed to noncancelable leases with remaining terms generally from one to 10 years. A substantial portion of the Company’s leases consist of store leases generally with an initial term of 10 years. Annual store rent consists of a fixed minimum amount and/or contingent rent based on a percentage of sales exceeding a stipulated amount. Store lease terms generally require additional payments covering certain operating costs such as common area maintenance, utilities, insurance and taxes. These additional payments are excluded from the table below. | ||||||||||||
The following table provides rent expense for 2014, 2013 and 2012: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in millions) | ||||||||||||
Store Rent: | ||||||||||||
Fixed Minimum | $ | 516 | $ | 482 | $ | 453 | ||||||
Contingent | 63 | 59 | 60 | |||||||||
Total Store Rent | 579 | 541 | 513 | |||||||||
Office, Equipment and Other | 68 | 72 | 67 | |||||||||
Gross Rent Expense | 647 | 613 | 580 | |||||||||
Sublease Rental Income | (2 | ) | (2 | ) | (2 | ) | ||||||
Total Rent Expense | $ | 645 | $ | 611 | $ | 578 | ||||||
The following table provides the Company’s minimum rent commitments under noncancelable operating leases in the next five fiscal years and the remaining years thereafter: | ||||||||||||
Fiscal Year (in millions) (a) | ||||||||||||
2015 | $ | 588 | ||||||||||
2016 | 556 | |||||||||||
2017 | 494 | |||||||||||
2018 | 413 | |||||||||||
2019 | 364 | |||||||||||
Thereafter | 1,455 | |||||||||||
________________ | ||||||||||||
(a) | Excludes additional payments covering taxes, common area costs and certain other expenses generally required by store lease terms. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2015 | |
Commitments And Contingencies [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
The Company is subject to various claims and contingencies related to lawsuits, taxes, insurance, regulatory and other matters arising out of the normal course of business. Actions filed against the Company from time to time include commercial, tort, intellectual property, customer, employment, data privacy, securities and other claims, including purported class action lawsuits. Management believes that the ultimate liability arising from such claims and contingencies, if any, is not likely to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. | |
In July 2009, a complaint was filed against the Company for patent infringement in the United States District Court for the Eastern District of Texas. The complaint sought monetary damages, costs, attorneys' fees and injunctive relief. In November 2011, a jury found in favor of the plaintiff and awarded damages of $9 million for infringement from 2007 through 2011, and the trial court awarded future royalty payments through 2015. In January 2013, the Company appealed the judgment in the Court of Appeals for the Federal Circuit. Shortly before the Company's appeal was filed, the Court of Appeals ruled in another proceeding involving a different company that the plaintiff's patents were invalid. On January 14, 2014, the U.S. Supreme Court denied the plaintiff's petition to overturn that ruling. | |
Subsequent to January 31, 2015, the Court of Appeals for the Federal Circuit issued an opinion on the case discussed above. The Court of Appeals’ decision reversed the United States District Court for the Eastern District of Texas finding of infringement. The District Court's award of damages of $9 million for infringement from 2007 through 2011 and future royalty payments through 2015 were overturned. On March 16, 2015, the plaintiff filed a petition for a rehearing with the Court of Appeals for the Federal Circuit. | |
Guarantees | |
In connection with the disposition of certain businesses, the Company has remaining guarantees of approximately $24 million related to lease payments of Express, Limited Stores, Dick’s Sporting Goods and New York & Company under the current terms of noncancelable leases expiring at various dates through 2018. These guarantees include minimum rent and additional payments covering taxes, common area costs and certain other expenses and relate to leases that commenced prior to the disposition of the businesses. In certain instances, the Company’s guarantee may remain in effect if the term of a lease is extended. | |
The Company’s guarantees related to Express, Limited Stores and New York & Company require fair value accounting in accordance with GAAP in effect at the time of these divestitures. The guaranteed lease payments related to Express, Limited Stores and New York & Company totaled $11 million as of January 31, 2015 and $22 million as of February 1, 2014. The estimated fair value of these guarantee obligations was $1 million as of January 31, 2015 and February 1, 2014, and is included in Other Long-term Liabilities on the Consolidated Balance Sheets. | |
The Company’s guarantees related to Dick’s Sporting Goods are not subject to fair value accounting, but require that a loss be accrued when probable and reasonably estimable based on GAAP in effect at the time of the divestiture. The Company had no liability recorded with respect to any of the guarantee obligations as it concluded that payments under these guarantees were not probable as of January 31, 2015 and February 1, 2014. | |
In connection with the Company's investment in EG, an entity that owns and is developing a commercial shopping center in the Easton community, the Company, along with an unaffiliated member, provided a guarantee of interest, certain expenses and a completion guarantee on the construction of the commercial shopping center. For additional information, see Note 8, "Equity Investments and Other." |
Retirement_Benefits
Retirement Benefits | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Retirement Benefits [Abstract] | ||||||||
Retirement Benefits | Retirement Benefits | |||||||
The Company sponsors a tax-qualified defined contribution retirement plan and a non-qualified supplemental retirement plan for substantially all of its associates within the U.S. Participation in the tax-qualified plan is available to associates who meet certain age and service requirements. Participation in the non-qualified plan is available to associates who meet certain age, service, job level and compensation requirements. | ||||||||
The qualified plan permits participating associates to elect contributions up to the maximum limits allowable under the Internal Revenue Code. The Company matches associate contributions according to a predetermined formula and contributes additional amounts based on a percentage of the associates’ eligible annual compensation and years of service. Associate contributions and Company matching contributions vest immediately. Additional Company contributions and the related investment earnings are subject to vesting based on years of service. Total expense recognized related to the qualified plan was $59 million for 2014, $56 million for 2013 and $55 million for 2012. | ||||||||
The non-qualified plan is an unfunded plan which provides benefits beyond the Internal Revenue Code limits for qualified defined contribution plans. The plan permits participating associates to elect contributions up to a maximum percentage of eligible compensation. The Company matches associate contributions according to a predetermined formula and contributes additional amounts based on a percentage of the associates’ eligible compensation and years of service. The plan also permits participating associates to defer additional compensation up to a maximum amount which the Company does not match. Associates’ accounts are credited with interest using a rate determined by the Company. Associate contributions and the related interest vest immediately. Company contributions, along with related interest, are subject to vesting based on years of service. Associates may elect in-service distributions for the unmatched additional deferred compensation component only. The remaining vested portion of associates’ accounts in the plan will be distributed upon termination of employment in either a lump sum or in annual installments over a specified period of up to 10 years. | ||||||||
The following table provides the Company’s annual activity for this plan and year-end liability, included in Other Long-term Liabilities on the Consolidated Balance Sheets, as of January 31, 2015 and February 1, 2014: | ||||||||
January 31, | February 1, | |||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Balance at Beginning of Year | $ | 243 | $ | 228 | ||||
Contributions: | ||||||||
Associate | 10 | 13 | ||||||
Company | 10 | 11 | ||||||
Interest | 14 | 11 | ||||||
Distributions | (20 | ) | (20 | ) | ||||
Balance at End of Year | $ | 257 | $ | 243 | ||||
Total expense recognized related to the non-qualified plan was $24 million for 2014, $22 million for 2013 and $24 million for 2012. |
Shareholders_Equity_Deficit
Shareholders' Equity (Deficit) | 12 Months Ended | |||||||||||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||
Shareholders' Equity | Shareholders’ Equity (Deficit) | |||||||||||||||||||||||||||||
Common Stock Repurchases | ||||||||||||||||||||||||||||||
Under the authority of the Company’s Board of Directors, the Company repurchased shares of its common stock under the following repurchase programs during the fiscal years 2014, 2013 and 2012: | ||||||||||||||||||||||||||||||
Shares Repurchased | Amount Repurchased | Average Stock | ||||||||||||||||||||||||||||
Price of | ||||||||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||||||||
Repurchased | ||||||||||||||||||||||||||||||
within | ||||||||||||||||||||||||||||||
Repurchase Program | Amount Authorized | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | Program | ||||||||||||||||||||||
(in millions) | (in thousands) | (in millions) | ||||||||||||||||||||||||||||
November 2012 (a) | $ | 250 | 1,317 | 1,377 | 245 | $ | 84 | $ | 63 | $ | 11 | $ | 54.02 | |||||||||||||||||
February 2012 (b) | 500 | NA | NA | 9,871 | NA | NA | 450 | 45.61 | ||||||||||||||||||||||
Nov-11 | 250 | NA | NA | 3,657 | NA | NA | 164 | 44.9 | ||||||||||||||||||||||
Total | 1,317 | 1,377 | 13,773 | $ | 84 | $ | 63 | $ | 625 | |||||||||||||||||||||
________________ | ||||||||||||||||||||||||||||||
(a) | The November 2012 repurchase program had $91 million remaining as of January 31, 2015. | |||||||||||||||||||||||||||||
(b) | The February 2012 repurchase program had $50 million rema | |||||||||||||||||||||||||||||
ining at the time it was cancelled in conjunction with the approval of the November 2012 repurchase program. | ||||||||||||||||||||||||||||||
NA | Not applicable | |||||||||||||||||||||||||||||
There were no share repurchases reflected in Accounts Payable on the January 31, 2015 Consolidated Balance Sheet. There were $3 million share repurchases reflected in Accounts Payable as of February 1, 2014. | ||||||||||||||||||||||||||||||
Subsequent to January 31, 2015, the Company's Board of Directors approved a new $250 million share repurchase program, which included the $91 million remaining under the November 2012 repurchase program. The Company repurchased an additional 0.2 million shares of common stock for $22 million under the February 2015 repurchase program subsequent to January 31, 2015. | ||||||||||||||||||||||||||||||
Dividends | ||||||||||||||||||||||||||||||
Under the authority and declaration of the Board of Directors, the Company paid the following dividends during the fiscal years 2014, 2013 and 2012: | ||||||||||||||||||||||||||||||
Ordinary Dividends | Special Dividends | Total Dividends | Total Paid | |||||||||||||||||||||||||||
(per share) | (in millions) | |||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||||
Fourth Quarter | $ | 0.34 | $ | — | $ | 0.34 | $ | 100 | ||||||||||||||||||||||
Third Quarter | 0.34 | — | 0.34 | 100 | ||||||||||||||||||||||||||
Second Quarter | 0.34 | — | 0.34 | 99 | ||||||||||||||||||||||||||
First Quarter | 0.34 | 1 | 1.34 | 392 | ||||||||||||||||||||||||||
2014 Total | $ | 1.36 | $ | 1 | $ | 2.36 | $ | 691 | ||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||
Fourth Quarter | $ | 0.3 | $ | — | $ | 0.3 | $ | 88 | ||||||||||||||||||||||
Third Quarter | 0.3 | — | 0.3 | 87 | ||||||||||||||||||||||||||
Second Quarter | 0.3 | — | 0.3 | 87 | ||||||||||||||||||||||||||
First Quarter | 0.3 | — | 0.3 | 87 | ||||||||||||||||||||||||||
2013 Total | $ | 1.2 | $ | — | $ | 1.2 | $ | 349 | ||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||
Fourth Quarter | $ | 0.25 | $ | 3 | $ | 3.25 | $ | 942 | ||||||||||||||||||||||
Third Quarter | 0.25 | 1 | 1.25 | 361 | ||||||||||||||||||||||||||
Second Quarter | 0.25 | — | 0.25 | 73 | ||||||||||||||||||||||||||
First Quarter | 0.25 | — | 0.25 | 73 | ||||||||||||||||||||||||||
2012 Total | $ | 1 | $ | 4 | $ | 5 | $ | 1,449 | ||||||||||||||||||||||
Subsequent to January 31, 2015, the Board of Directors declared an increase in the first quarter 2015 ordinary dividend from $0.34 to $0.50 per share and a special dividend of $2 per share. Both dividends, totaling $731 million, were paid on March 6, 2015 to shareholders of record at the close of business on February 20, 2015. |
Sharebased_Compensation
Share-based Compensation | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Share-based Compensation [Abstract] | |||||||||||||
Share-based Compensation | Share-based Compensation | ||||||||||||
Plan Summary | |||||||||||||
In 2011, the Company's shareholders approved the 2011 Stock Option and Performance Incentive Plan. The plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, performance-based restricted stock, performance units and unrestricted shares. The Company grants stock options at a price equal to the fair market value of the stock on the date of grant. Stock options have a maximum term of 10 years. Stock options generally vest ratably over 3 to 5 years. Restricted stock generally vests (the restrictions lapse) at the end of a three-year period or on a graded basis over a five-year period. | |||||||||||||
Under the Company’s plan, approximately 146 million options, restricted and unrestricted shares have been authorized to be granted to employees and directors. Approximately 12 million options and shares were available for grant as of January 31, 2015. | |||||||||||||
From time to time the Company's Board of Directors will declare special dividends. For additional information, see Note 18, "Shareholders' Equity (Deficit)." In accordance with the anti-dilutive provisions of the stock plan, in these circumstances the Company adjusts both the exercise price and the number of share-based awards outstanding as of the record date of the special dividends. The aggregate fair value, the aggregate intrinsic value and the ratio of the exercise price to the market price are approximately equal immediately before and after the adjustments. Therefore, no compensation expense is recognized. | |||||||||||||
Stock Options | |||||||||||||
The following table provides the Company’s stock option activity for the fiscal year ended January 31, 2015: | |||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||
Shares | Average | Average | Intrinsic | ||||||||||
Option | Remaining | Value | |||||||||||
Price Per | Contractual | ||||||||||||
Share | Life | ||||||||||||
(in thousands) | (in years) | (in thousands) | |||||||||||
Outstanding as of February 1, 2014 | 6,204 | $ | 29.14 | ||||||||||
Granted | 1,112 | 59.76 | |||||||||||
Exercised | (1,462 | ) | 24.84 | ||||||||||
Cancelled | (195 | ) | 47.8 | ||||||||||
Adjustment for Special Dividend | 114 | N/A | |||||||||||
Outstanding as of January 31, 2015 | 5,773 | $ | 34.93 | 6.39 | $ | 276,675 | |||||||
Vested and Expected to Vest as of January 31, 2015 (a) | 5,582 | 34.38 | 6.31 | 270,589 | |||||||||
Options Exercisable as of January 31, 2015 | 2,885 | 21.38 | 4.55 | 177,220 | |||||||||
________________ | |||||||||||||
(a) | The number of options expected to vest includes an estimate of expected forfeitures. | ||||||||||||
Intrinsic value for stock options is the difference between the current market value of the Company’s stock and the option strike price. The total intrinsic value of options exercised was $52 million for 2014, $69 million for 2013 and $133 million for 2012. | |||||||||||||
The total fair value at grant date of option awards vested was $11 million for 2014, $10 million for 2013 and 2012. | |||||||||||||
The Company’s total unrecognized compensation cost, net of estimated forfeitures, related to nonvested options was $19 million as of January 31, 2015. This cost is expected to be recognized over a weighted-average period of 2.9 years. | |||||||||||||
The weighted-average estimated fair value of stock options granted was $11.74 per share for 2014, $9.71 per share for 2013 and $13.89 per share for 2012. | |||||||||||||
Cash received from stock options exercised was $35 million for 2014, $32 million for 2013 and $53 million for 2012. Tax benefits realized from tax deductions associated with stock options exercised were $21 million for 2014, $14 million for 2013 and $42 million for 2012. | |||||||||||||
The Company uses the Black-Scholes option-pricing model for valuation of options granted to employees and directors. The Company’s determination of the fair value of options is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the Company’s expected stock price volatility over the term of the awards and projected employee stock option exercise behaviors. | |||||||||||||
The following table contains the weighted-average assumptions used during 2014, 2013 and 2012: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected Volatility | 30 | % | 35 | % | 47 | % | |||||||
Risk-free Interest Rate | 1.4 | % | 0.8 | % | 1 | % | |||||||
Dividend Yield | 3 | % | 3.4 | % | 2.7 | % | |||||||
Expected Life (in years) | 4.6 | 4.7 | 4.8 | ||||||||||
The majority of the Company’s stock-based compensation awards are granted on an annual basis in the first quarter of each year. The expected volatility assumption is based on the Company’s analysis of historical volatility. The risk-free interest rate assumption is based upon the average daily closing rates during the period for U.S. treasury notes that have a life which approximates the expected life of the option. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts in relation to the stock price at the grant date. The expected life of employee stock options represents the weighted-average period the stock options are expected to remain outstanding. | |||||||||||||
Restricted Stock | |||||||||||||
The following table provides the Company’s restricted stock activity for the fiscal year ended January 31, 2015: | |||||||||||||
Number of | Weighted | ||||||||||||
Shares | Average | ||||||||||||
Grant Date | |||||||||||||
Fair Value | |||||||||||||
(in thousands) | |||||||||||||
Unvested as of February 1, 2014 | 7,395 | $ | 34.82 | ||||||||||
Granted | 1,760 | 54.03 | |||||||||||
Vested | (2,209 | ) | 25.3 | ||||||||||
Cancelled | (309 | ) | 43.21 | ||||||||||
Adjustment for Special Dividend | 136 | N/A | |||||||||||
Unvested as of January 31, 2015 | 6,773 | 41.06 | |||||||||||
The Company’s total intrinsic value of restricted stock vested was $128 million for 2014, $106 million for 2013 and $257 million for 2012. | |||||||||||||
The Company’s total fair value at grant date of awards vested was $56 million for 2014, $40 million for 2013 and $37 million for 2012. Fair value of restricted stock awards is based on the market value of an unrestricted share on the grant date adjusted for anticipated dividend yields. | |||||||||||||
As of January 31, 2015, there was $108 million of total unrecognized compensation cost, net of estimated forfeitures, related to unvested restricted stock. That cost is expected to be recognized over a weighted-average period of 2.5 years. | |||||||||||||
Tax benefits realized from tax deductions associated with restricted stock vested were $46 million for 2014, $40 million for 2013 and $90 million for 2012. | |||||||||||||
Income Statement Impact | |||||||||||||
The following table provides share-based compensation expense included in the Consolidated Statements of Income for 2014, 2013 and 2012: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in millions) | |||||||||||||
Costs of Goods Sold, Buying and Occupancy | $ | 24 | $ | 22 | $ | 19 | |||||||
General, Administrative and Store Operating Expenses | 66 | 63 | 54 | ||||||||||
Total Share-based Compensation Expense | $ | 90 | $ | 85 | $ | 73 | |||||||
Share-based compensation expense is based on awards that are ultimately expected to vest. The Company estimates forfeitures at the time of grant and adjusts, if necessary, in subsequent periods based on historical experience and expected future termination rates. | |||||||||||||
The tax benefit associated with recognized share-based compensation expense was $30 million for 2014, $29 million for 2013 and $25 million for 2012 |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||
Segment Information [Abstract] | ||||||||||||||||||||
Segment Information | Segment Information | |||||||||||||||||||
In the first quarter of 2014, the Company announced a change in its reportable segments. Results from company-owned Victoria's Secret and Bath & Body Works stores in Canada were reclassified from Other into the corresponding Victoria's Secret and Bath & Body Works segments. Additionally, a new segment called Victoria's Secret and Bath & Body Works International was created which includes the Victoria's Secret and Bath & Body Works company-owned and partner-operated stores outside of the U.S. and Canada. Therefore, beginning in 2014, the Company has three reportable segments: Victoria’s Secret, Bath & Body Works and Victoria's Secret and Bath & Body Works International. While this reporting change did not impact the Company's consolidated results, the segment data has been recast to be consistent for all periods presented throughout the financial statements and accompanying footnotes. | ||||||||||||||||||||
The Victoria’s Secret segment sells women’s intimate and other apparel, personal care and beauty products under the Victoria’s Secret and PINK brand names. Victoria’s Secret merchandise is sold through retail stores located in the U.S. and Canada and its website, www.VictoriasSecret.com. | ||||||||||||||||||||
The Bath & Body Works segment sells personal care, soaps, sanitizers and home fragrance products under the Bath & Body Works, White Barn Candle Company, C.O. Bigelow and other brand names. Bath & Body Works merchandise is sold at retail stores located in the U.S. and Canada and through its website, www.BathandBodyWorks.com. | ||||||||||||||||||||
The Victoria's Secret and Bath & Body Works International segment includes the Victoria's Secret and Bath & Body Works company-owned and partner-operated stores located outside of the U.S. and Canada. These businesses include the following: | ||||||||||||||||||||
• | Victoria's Secret Beauty and Accessories stores operated by partners under franchise, license and wholesale arrangements, which feature Victoria's Secret branded beauty and accessories products; | |||||||||||||||||||
• | Victoria's Secret International stores, comprised of company-owned stores in the U.K., as well as stores operated by partners under franchise, license and wholesale arrangements; and | |||||||||||||||||||
• | Bath & Body Works International stores operated by partners under franchise, license and wholesale arrangements. | |||||||||||||||||||
Other consists of the following: | ||||||||||||||||||||
• | Mast Global, a merchandise sourcing and production function serving the Company and its international partners; | |||||||||||||||||||
• | La Senza, comprised of company-owned stores in Canada, as well as stores operated by partners under franchise, license and wholesale arrangements, which feature women's intimate apparel; | |||||||||||||||||||
• | Henri Bendel, operator of 29 specialty stores, which feature handbags, jewelry and other accessory products; and | |||||||||||||||||||
• | Corporate functions including non-core real estate, equity investments and other governance functions such as treasury and tax. | |||||||||||||||||||
The following table provides the Company’s segment information as of and for the fiscal years ended January 31, 2015, February 1, 2014 and February 2, 2013: | ||||||||||||||||||||
Victoria’s | Bath & Body | Victoria’s Secret | Other | Total | ||||||||||||||||
Secret | Works | and | ||||||||||||||||||
Bath & | ||||||||||||||||||||
Body Works | ||||||||||||||||||||
International | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
31-Jan-15 | ||||||||||||||||||||
Net Sales | $ | 7,207 | $ | 3,350 | $ | 336 | $ | 561 | $ | 11,454 | ||||||||||
Depreciation and Amortization | 198 | 65 | 16 | 119 | 398 | |||||||||||||||
Operating Income (Loss) | 1,271 | 737 | 78 | (133 | ) | 1,953 | ||||||||||||||
Total Assets (a) | 2,950 | 1,365 | 369 | 2,860 | 7,544 | |||||||||||||||
Capital Expenditures | 446 | 77 | 37 | 155 | 715 | |||||||||||||||
1-Feb-14 | ||||||||||||||||||||
Net Sales | $ | 6,884 | $ | 3,118 | $ | 222 | $ | 549 | $ | 10,773 | ||||||||||
Depreciation and Amortization | 175 | 65 | 9 | 119 | 368 | |||||||||||||||
Operating Income (Loss) | 1,153 | 648 | 38 | (96 | ) | 1,743 | ||||||||||||||
Total Assets (a) | 2,811 | 1,369 | 290 | 2,728 | 7,198 | |||||||||||||||
Capital Expenditures | 444 | 80 | 33 | 134 | 691 | |||||||||||||||
2-Feb-13 | ||||||||||||||||||||
Net Sales | $ | 6,740 | $ | 3,074 | $ | 132 | $ | 513 | $ | 10,459 | ||||||||||
Depreciation and Amortization | 153 | 58 | 3 | 140 | 354 | |||||||||||||||
Operating Income (Loss) (b) | 1,207 | 629 | 4 | (267 | ) | 1,573 | ||||||||||||||
Total Assets (a) | 2,521 | 1,372 | 213 | 1,913 | 6,019 | |||||||||||||||
Capital Expenditures | 290 | 74 | 44 | 180 | 588 | |||||||||||||||
________________ | ||||||||||||||||||||
(a) | Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. | |||||||||||||||||||
(b) | Operating Loss for the Other segment includes a $93 million impairment charge related to goodwill and other intangible assets for our La Senza business; a $27 million impairment charge related to long-lived store assets for our Henri Bendel business; and $14 million of expense associated with the store closure initiative at La Senza. | |||||||||||||||||||
The Company’s international sales include sales from company-owned stores, royalty revenue from franchise and license arrangements, wholesale revenues and direct sales shipped internationally. The Company's international sales across all segments totaled $1.349 billion in 2014, $1.212 billion in 2013 and $1.060 billion in 2012. The Company’s internationally based long-lived assets were $293 million as of January 31, 2015 and $280 million as of February 1, 2014. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) | |||||||||||||||
The following table provides summarized quarterly financial data for 2014: | ||||||||||||||||
Fiscal Quarter Ended | ||||||||||||||||
May 3, | August 2, | November 1, | January 31, | |||||||||||||
2014 | 2014 | 2014 | 2015 | |||||||||||||
(in millions except per share data) | ||||||||||||||||
Net Sales | $ | 2,391 | $ | 2,675 | $ | 2,319 | $ | 4,069 | ||||||||
Gross Profit | 982 | 1,044 | 947 | 1,835 | ||||||||||||
Operating Income | 336 | 376 | 284 | 957 | ||||||||||||
Income Before Income Taxes | 255 | 296 | 205 | 880 | ||||||||||||
Net Income | 157 | 188 | 132 | 565 | ||||||||||||
Net Income Per Basic Share (a) | $ | 0.54 | $ | 0.65 | $ | 0.45 | $ | 1.93 | ||||||||
Net Income Per Diluted Share (a) | $ | 0.53 | $ | 0.63 | $ | 0.44 | $ | 1.89 | ||||||||
________________ | ||||||||||||||||
(a) | Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. | |||||||||||||||
The following table provides summarized quarterly financial data for 2013: | ||||||||||||||||
Fiscal Quarter Ended | ||||||||||||||||
May 4, | August 3, | November 2, | February 1, | |||||||||||||
2013 | 2013 | 2013 | 2014 | |||||||||||||
(in millions except per share data) | ||||||||||||||||
Net Sales | $ | 2,268 | $ | 2,516 | $ | 2,171 | $ | 3,818 | ||||||||
Gross Profit | 941 | 989 | 857 | 1,642 | ||||||||||||
Operating Income | 311 | 358 | 211 | 863 | ||||||||||||
Income Before Income Taxes | 235 | 282 | 142 | 787 | ||||||||||||
Net Income | 143 | 178 | 92 | 490 | ||||||||||||
Net Income Per Basic Share (a) | $ | 0.49 | $ | 0.62 | $ | 0.32 | $ | 1.69 | ||||||||
Net Income Per Diluted Share (a) | $ | 0.48 | $ | 0.61 | $ | 0.31 | $ | 1.65 | ||||||||
________________ | ||||||||||||||||
(a) | Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Jan. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
Subsequent to January 31, 2015, the Company's Board of Directors approved a new $250 million share repurchase program, which included the $91 million remaining under the November 2012 repurchase program. The Company repurchased an additional 0.2 million shares of common stock for $22 million under the February 2015 repurchase program subsequent to January 31, 2015. Additionally, the Company declared the first quarter 2015 ordinary dividend of $0.50 per share and a special dividend of $2 per share. The dividends totaled $731 million. For additional information, see Note 18, "Shareholders' Equity (Deficit)." | |
Subsequent to January 31, 2015, the Company divested its remaining ownership interest in the third-party apparel sourcing business to Sycamore Partners. The sale of the remaining ownership interest resulted in pre-tax cash proceeds of $85 million and a gain of approximately $78 million (after-tax gain of approximately $70 million) which will be recognized in the first quarter of 2015. For additional information, see Note 8, "Equity Investments and Other." | |
Subsequent to January 31, 2015, the Court of Appeals for the Federal Circuit issued an opinion on an outstanding patent infringement case. The Court of Appeals’ decision reversed the United States District Court for the Eastern District of Texas finding of infringement. On March 16, 2015, the plaintiff filed a petition for a rehearing with the Court of Appeals for the Federal Circuit. For additional information, see Note 16, "Commitments and Contingencies." |
Supplemental_Guarantor_Financi
Supplemental Guarantor Financial Information | 12 Months Ended | |||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||
Supplemental Guarantor Financial Information [Abstract] | ||||||||||||||||||||
Schedule Of Supplemental Guarantor Financial Information [Text Block] | Supplemental Guarantor Financial Information | |||||||||||||||||||
The Company’s 2019 Notes, 2020 Notes, 2021 Notes, 2022 Notes and 2023 Notes are jointly and severally guaranteed on a full and unconditional basis by certain of the Company’s 100% owned subsidiaries. The Company is a holding company, and its most significant assets are the stock of its subsidiaries. The Guarantors represent: (a) substantially all of the sales of the Company’s domestic subsidiaries, (b) more than 90% of the assets owned by the Company’s domestic subsidiaries, other than real property, certain other assets and intercompany investments and balances, and (c) more than 95% of the accounts receivable and inventory directly owned by the Company’s domestic subsidiaries. | ||||||||||||||||||||
The following supplemental financial information sets forth for the Company and its guarantor and non-guarantor subsidiaries: the Condensed Consolidating Balance Sheets as of January 31, 2015 and February 1, 2014 and the Condensed Consolidating Statements of Income, Comprehensive Income and Cash Flows for the years ended January 31, 2015, February 1, 2014 and February 2, 2013. In the fourth quarter of 2014, the Company added a subsidiary to the Guarantors. Accordingly, the supplemental financial information has been recast for all periods presented. | ||||||||||||||||||||
L BRANDS, INC. | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
January 31, 2015 | ||||||||||||||||||||
L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | L Brands, Inc. | ||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and Cash Equivalents | $ | — | $ | 1,462 | $ | 219 | $ | — | $ | 1,681 | ||||||||||
Accounts Receivable, Net | 1 | 197 | 54 | — | 252 | |||||||||||||||
Inventories | — | 919 | 117 | — | 1,036 | |||||||||||||||
Deferred Income Taxes | — | 34 | (1 | ) | — | 33 | ||||||||||||||
Other | — | 146 | 84 | — | 230 | |||||||||||||||
Total Current Assets | 1 | 2,758 | 473 | — | 3,232 | |||||||||||||||
Property and Equipment, Net | — | 1,385 | 892 | — | 2,277 | |||||||||||||||
Goodwill | — | 1,318 | — | — | 1,318 | |||||||||||||||
Trade Names and Other Intangible Assets, Net | — | 411 | — | — | 411 | |||||||||||||||
Net Investments in and Advances to/from Consolidated Affiliates | 4,635 | 14,003 | 1,405 | (20,043 | ) | — | ||||||||||||||
Other Assets | 188 | 35 | 693 | (610 | ) | 306 | ||||||||||||||
Total Assets | $ | 4,824 | $ | 19,910 | $ | 3,463 | $ | (20,653 | ) | $ | 7,544 | |||||||||
LIABILITIES AND EQUITY (DEFICIT) | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts Payable | $ | — | $ | 300 | $ | 313 | $ | — | $ | 613 | ||||||||||
Accrued Expenses and Other | 83 | 495 | 322 | — | 900 | |||||||||||||||
Income Taxes | (4 | ) | 183 | (13 | ) | — | 166 | |||||||||||||
Total Current Liabilities | 79 | 978 | 622 | — | 1,679 | |||||||||||||||
Deferred Income Taxes | (4 | ) | (32 | ) | 297 | — | 261 | |||||||||||||
Long-term Debt | 4,765 | 597 | — | (597 | ) | 4,765 | ||||||||||||||
Other Long-term Liabilities | — | 609 | 224 | (13 | ) | 820 | ||||||||||||||
Total Equity (Deficit) | (16 | ) | 17,758 | 2,320 | (20,043 | ) | 19 | |||||||||||||
Total Liabilities and Equity (Deficit) | $ | 4,824 | $ | 19,910 | $ | 3,463 | $ | (20,653 | ) | $ | 7,544 | |||||||||
L BRANDS, INC. | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
February 1, 2014 | ||||||||||||||||||||
L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | L Brands, Inc. | ||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and Cash Equivalents | $ | — | $ | 1,353 | $ | 166 | $ | — | $ | 1,519 | ||||||||||
Accounts Receivable, Net | — | 177 | 67 | — | 244 | |||||||||||||||
Inventories | — | 978 | 187 | — | 1,165 | |||||||||||||||
Deferred Income Taxes | — | 44 | (16 | ) | — | 28 | ||||||||||||||
Other | — | 106 | 88 | — | 194 | |||||||||||||||
Total Current Assets | — | 2,658 | 492 | — | 3,150 | |||||||||||||||
Property and Equipment, Net | — | 1,197 | 848 | — | 2,045 | |||||||||||||||
Goodwill | — | 1,318 | — | — | 1,318 | |||||||||||||||
Trade Names and Other Intangible Assets, Net | — | 411 | — | — | 411 | |||||||||||||||
Net Investments in and Advances to/from Consolidated Affiliates | 4,468 | 14,058 | 1,015 | (19,541 | ) | — | ||||||||||||||
Other Assets | 186 | 19 | 680 | (611 | ) | 274 | ||||||||||||||
Total Assets | $ | 4,654 | $ | 19,661 | $ | 3,035 | $ | (20,152 | ) | $ | 7,198 | |||||||||
LIABILITIES AND EQUITY (DEFICIT) | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts Payable | $ | 3 | $ | 318 | $ | 278 | $ | — | $ | 599 | ||||||||||
Accrued Expenses and Other | 86 | 418 | 283 | — | 787 | |||||||||||||||
Current Portion of Long-term Debt | 215 | — | — | — | 215 | |||||||||||||||
Income Taxes | (1 | ) | 176 | 50 | — | 225 | ||||||||||||||
Total Current Liabilities | 303 | 912 | 611 | — | 1,826 | |||||||||||||||
Deferred Income Taxes | (4 | ) | (27 | ) | 241 | — | 210 | |||||||||||||
Long-term Debt | 4,761 | 597 | — | (597 | ) | 4,761 | ||||||||||||||
Other Long-term Liabilities | 3 | 581 | 201 | (15 | ) | 770 | ||||||||||||||
Total Equity (Deficit) | (409 | ) | 17,598 | 1,982 | (19,540 | ) | (369 | ) | ||||||||||||
Total Liabilities and Equity (Deficit) | $ | 4,654 | $ | 19,661 | $ | 3,035 | $ | (20,152 | ) | $ | 7,198 | |||||||||
L BRANDS, INC. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
2014 | ||||||||||||||||||||
L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | L Brands, Inc. | ||||||||||||||||||
Net Sales | $ | — | $ | 10,711 | $ | 3,343 | $ | (2,600 | ) | $ | 11,454 | |||||||||
Costs of Goods Sold, Buying and Occupancy | — | (6,449 | ) | (2,611 | ) | 2,414 | (6,646 | ) | ||||||||||||
Gross Profit | — | 4,262 | 732 | (186 | ) | 4,808 | ||||||||||||||
General, Administrative and Store Operating Expenses | (6 | ) | (2,538 | ) | (446 | ) | 135 | (2,855 | ) | |||||||||||
Operating Income (Loss) | (6 | ) | 1,724 | 286 | (51 | ) | 1,953 | |||||||||||||
Interest Expense | (324 | ) | (35 | ) | (9 | ) | 44 | (324 | ) | |||||||||||
Other Income (Loss) | 1 | — | 6 | — | 7 | |||||||||||||||
Income (Loss) Before Income Taxes | (329 | ) | 1,689 | 283 | (7 | ) | 1,636 | |||||||||||||
Provision (Benefit) for Income Taxes | (3 | ) | 385 | 212 | — | 594 | ||||||||||||||
Equity in Earnings, Net of Tax | 1,368 | 46 | 316 | (1,730 | ) | — | ||||||||||||||
Net Income (Loss) | $ | 1,042 | $ | 1,350 | $ | 387 | $ | (1,737 | ) | $ | 1,042 | |||||||||
L BRANDS, INC. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
2014 | ||||||||||||||||||||
L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | L Brands, Inc. | ||||||||||||||||||
Net Income (Loss) | $ | 1,042 | $ | 1,350 | $ | 387 | $ | (1,737 | ) | $ | 1,042 | |||||||||
Other Comprehensive Income (Loss), Net of Tax: | ||||||||||||||||||||
Reclassification of Cash Flow Hedges to Earnings | — | — | (60 | ) | — | (60 | ) | |||||||||||||
Foreign Currency Translation | — | — | 21 | — | 21 | |||||||||||||||
Unrealized Gain (Loss) on Cash Flow Hedges | — | — | 34 | — | 34 | |||||||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | — | — | (5 | ) | — | (5 | ) | |||||||||||||
Total Comprehensive Income | $ | 1,042 | $ | 1,350 | $ | 382 | $ | (1,737 | ) | $ | 1,037 | |||||||||
L BRANDS, INC. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
2013 | ||||||||||||||||||||
L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | L Brands, Inc. | ||||||||||||||||||
Net Sales | $ | — | $ | 10,047 | $ | 3,190 | $ | (2,464 | ) | $ | 10,773 | |||||||||
Costs of Goods Sold, Buying and Occupancy | — | (6,096 | ) | (2,598 | ) | 2,350 | (6,344 | ) | ||||||||||||
Gross Profit | — | 3,951 | 592 | (114 | ) | 4,429 | ||||||||||||||
General, Administrative and Store Operating Expenses | (5 | ) | (2,403 | ) | (394 | ) | 116 | (2,686 | ) | |||||||||||
Operating Income (Loss) | (5 | ) | 1,548 | 198 | 2 | 1,743 | ||||||||||||||
Interest Expense | (314 | ) | (28 | ) | (11 | ) | 39 | (314 | ) | |||||||||||
Other Income (Loss) | — | — | 17 | — | 17 | |||||||||||||||
Income (Loss) Before Income Taxes | (319 | ) | 1,520 | 204 | 41 | 1,446 | ||||||||||||||
Provision (Benefit) for Income Taxes | — | 305 | 238 | — | 543 | |||||||||||||||
Equity in Earnings, Net of Tax | 1,222 | 118 | 462 | (1,802 | ) | — | ||||||||||||||
Net Income (Loss) | $ | 903 | $ | 1,333 | $ | 428 | $ | (1,761 | ) | $ | 903 | |||||||||
L BRANDS, INC. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
2013 | ||||||||||||||||||||
L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | L Brands, Inc. | ||||||||||||||||||
Net Income (Loss) | $ | 903 | $ | 1,333 | $ | 428 | $ | (1,761 | ) | $ | 903 | |||||||||
Other Comprehensive Income (Loss), Net of Tax: | ||||||||||||||||||||
Reclassification of Cash Flow Hedges to Earnings | — | — | (50 | ) | — | (50 | ) | |||||||||||||
Foreign Currency Translation | — | — | 40 | — | 40 | |||||||||||||||
Unrealized Gain (Loss) on Cash Flow Hedges | — | — | 46 | — | 46 | |||||||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | — | — | 36 | — | 36 | |||||||||||||||
Total Comprehensive Income | $ | 903 | $ | 1,333 | $ | 464 | $ | (1,761 | ) | $ | 939 | |||||||||
L BRANDS, INC. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
2012 | ||||||||||||||||||||
L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | L Brands, Inc. | ||||||||||||||||||
Net Sales | $ | — | $ | 9,717 | $ | 2,738 | $ | (1,996 | ) | $ | 10,459 | |||||||||
Costs of Goods Sold, Buying and Occupancy | — | (5,649 | ) | (2,324 | ) | 1,900 | (6,073 | ) | ||||||||||||
Gross Profit | — | 4,068 | 414 | (96 | ) | 4,386 | ||||||||||||||
General, Administrative and Store Operating Expenses | (5 | ) | (2,435 | ) | (373 | ) | 93 | (2,720 | ) | |||||||||||
Impairment of Goodwill and Other Intangible Assets | — | — | (93 | ) | — | (93 | ) | |||||||||||||
Operating Income (Loss) | (5 | ) | 1,633 | (52 | ) | (3 | ) | 1,573 | ||||||||||||
Interest Expense | (316 | ) | (22 | ) | (10 | ) | 32 | (316 | ) | |||||||||||
Other Income (Loss) | — | 1 | 23 | — | 24 | |||||||||||||||
Income (Loss) Before Income Taxes | (321 | ) | 1,612 | (39 | ) | 29 | 1,281 | |||||||||||||
Provision (Benefit) for Income Taxes | — | 359 | 169 | — | 528 | |||||||||||||||
Equity in Earnings, Net of Tax | 1,074 | (171 | ) | 441 | (1,344 | ) | — | |||||||||||||
Net Income (Loss) | $ | 753 | $ | 1,082 | $ | 233 | $ | (1,315 | ) | $ | 753 | |||||||||
L BRANDS, INC. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
2012 | ||||||||||||||||||||
L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | L Brands, Inc. | ||||||||||||||||||
Net Income (Loss) | $ | 753 | $ | 1,082 | $ | 233 | $ | (1,315 | ) | $ | 753 | |||||||||
Other Comprehensive Income (Loss), Net of Tax: | ||||||||||||||||||||
Reclassification of Cash Flow Hedges to Earnings | 2 | — | 3 | — | 5 | |||||||||||||||
Foreign Currency Translation | — | — | (2 | ) | — | (2 | ) | |||||||||||||
Unrealized Gain (Loss) on Cash Flow Hedges | — | — | 1 | — | 1 | |||||||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | 2 | — | 2 | — | 4 | |||||||||||||||
Total Comprehensive Income | $ | 755 | $ | 1,082 | $ | 235 | $ | (1,315 | ) | $ | 757 | |||||||||
L BRANDS, INC. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
2014 | ||||||||||||||||||||
L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | L Brands, Inc. | ||||||||||||||||||
Net Cash Provided by (Used for) Operating Activities | $ | (333 | ) | $ | 1,677 | $ | 442 | $ | — | $ | 1,786 | |||||||||
Investing Activities: | ||||||||||||||||||||
Capital Expenditures | — | (486 | ) | (229 | ) | — | (715 | ) | ||||||||||||
Other Investing Activities | — | (1 | ) | 17 | — | 16 | ||||||||||||||
Net Cash Used for Investing Activities | — | (487 | ) | (212 | ) | — | (699 | ) | ||||||||||||
Financing Activities: | ||||||||||||||||||||
Payments of Long-term Debt | (213 | ) | — | — | — | (213 | ) | |||||||||||||
Borrowings from Revolving Facility | — | — | 5 | — | 5 | |||||||||||||||
Repayments on Revolving Facility | — | — | (5 | ) | — | (5 | ) | |||||||||||||
Financing Costs | (5 | ) | — | — | — | (5 | ) | |||||||||||||
Repurchase of Common Stock | (87 | ) | — | — | — | (87 | ) | |||||||||||||
Dividends Paid | (691 | ) | — | — | — | (691 | ) | |||||||||||||
Excess Tax Benefits from Share-based Compensation | — | 37 | 6 | — | 43 | |||||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 1,295 | (1,118 | ) | (177 | ) | — | — | |||||||||||||
Proceeds From Exercise of Stock Options and Other | 34 | — | — | — | 34 | |||||||||||||||
Net Cash Provided by (Used for) Financing Activities | 333 | (1,081 | ) | (171 | ) | — | (919 | ) | ||||||||||||
Effects of Exchange Rate Changes on Cash | — | — | (6 | ) | — | (6 | ) | |||||||||||||
Net Increase in Cash and Cash Equivalents | — | 109 | 53 | — | 162 | |||||||||||||||
Cash and Cash Equivalents, Beginning of Year | — | 1,353 | 166 | — | 1,519 | |||||||||||||||
Cash and Cash Equivalents, End of Year | $ | — | $ | 1,462 | $ | 219 | $ | — | $ | 1,681 | ||||||||||
L BRANDS, INC. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
2013 | ||||||||||||||||||||
L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | L Brands, Inc. | ||||||||||||||||||
Net Cash Provided by (Used for) Operating Activities | $ | (302 | ) | $ | 1,323 | $ | 227 | $ | — | $ | 1,248 | |||||||||
Investing Activities: | ||||||||||||||||||||
Capital Expenditures | — | (475 | ) | (216 | ) | — | (691 | ) | ||||||||||||
Return of Capital from Third-party Apparel Sourcing Business Investment | — | — | 46 | — | 46 | |||||||||||||||
Other Investing Activities | — | — | (10 | ) | — | (10 | ) | |||||||||||||
Net Cash Used for Investing Activities | — | (475 | ) | (180 | ) | — | (655 | ) | ||||||||||||
Financing Activities: | ||||||||||||||||||||
Proceeds from Long-term Debt, Net of Issuance and Discount Costs | 495 | — | — | — | 495 | |||||||||||||||
Borrowings from Revolving Facility | 290 | — | — | — | 290 | |||||||||||||||
Repayments on Revolving Facility | (290 | ) | — | — | — | (290 | ) | |||||||||||||
Repurchase of Common Stock | (60 | ) | — | — | — | (60 | ) | |||||||||||||
Dividends Paid | (349 | ) | — | — | — | (349 | ) | |||||||||||||
Excess Tax Benefits from Share-based Compensation | — | 31 | 5 | — | 36 | |||||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 184 | 57 | (241 | ) | — | — | ||||||||||||||
Proceeds From Exercise of Stock Options and Other | 32 | — | — | — | 32 | |||||||||||||||
Net Cash Provided by (Used for) Financing Activities | 302 | 88 | (236 | ) | — | 154 | ||||||||||||||
Effects of Exchange Rate Changes on Cash | — | — | (1 | ) | — | (1 | ) | |||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | — | 936 | (190 | ) | — | 746 | ||||||||||||||
Cash and Cash Equivalents, Beginning of Year | — | 417 | 356 | — | 773 | |||||||||||||||
Cash and Cash Equivalents, End of Year | $ | — | $ | 1,353 | $ | 166 | $ | — | $ | 1,519 | ||||||||||
L BRANDS, INC. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
2012 | ||||||||||||||||||||
L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | L Brands, Inc. | ||||||||||||||||||
Net Cash Provided by (Used for) Operating Activities | $ | (361 | ) | $ | 1,389 | $ | 323 | $ | — | $ | 1,351 | |||||||||
Investing Activities: | ||||||||||||||||||||
Capital Expenditures | — | (344 | ) | (244 | ) | — | (588 | ) | ||||||||||||
Return of Capital from Third-party Apparel Sourcing Business Investment | — | — | 22 | — | 22 | |||||||||||||||
Proceeds from Sale of Express Common Stock | — | — | 13 | — | 13 | |||||||||||||||
Net Investments in Consolidated Affiliates | — | 36 | — | (36 | ) | — | ||||||||||||||
Other Investing Activities | — | 17 | 5 | — | 22 | |||||||||||||||
Net Cash Used for Investing Activities | — | (291 | ) | (204 | ) | (36 | ) | (531 | ) | |||||||||||
Financing Activities: | ||||||||||||||||||||
Proceeds from Long-term Debt, Net of Issuance and Discount Costs | 985 | — | — | — | 985 | |||||||||||||||
Payments of Long-term Debt | (57 | ) | — | — | — | (57 | ) | |||||||||||||
Repurchase of Common Stock | (629 | ) | — | — | — | (629 | ) | |||||||||||||
Dividends Paid | (1,449 | ) | — | — | — | (1,449 | ) | |||||||||||||
Excess Tax Benefits from Share-based Compensation | — | 95 | 21 | — | 116 | |||||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 1,459 | (1,147 | ) | (348 | ) | 36 | — | |||||||||||||
Proceeds From Exercise of Stock Options and Other | 52 | — | — | — | 52 | |||||||||||||||
Net Cash Provided by (Used for) Financing Activities | 361 | (1,052 | ) | (327 | ) | 36 | (982 | ) | ||||||||||||
Effects of Exchange Rate Changes on Cash | — | — | — | — | — | |||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | — | 46 | (208 | ) | — | (162 | ) | |||||||||||||
Cash and Cash Equivalents, Beginning of Year | — | 371 | 564 | — | 935 | |||||||||||||||
Cash and Cash Equivalents, End of Year | $ | — | $ | 417 | $ | 356 | $ | — | $ | 773 | ||||||||||
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Jan. 31, 2015 | |||
Description of Business | Description of Business | ||
L Brands, Inc. (“the Company”) operates in the highly competitive specialty retail business. The Company is a specialty retailer of women’s intimate and other apparel, beauty and personal care products and accessories. The Company sells its merchandise through company-owned specialty retail stores in the U.S., Canada and the U.K., which are primarily mall-based, and through its websites and other channels. The Company's other international operations are primarily through franchise, license and wholesale partners. The Company currently operates the following retail brands: | |||
• | Victoria’s Secret | ||
• | Victoria's Secret PINK | ||
• | Bath & Body Works | ||
• | La Senza | ||
• | Henri Bendel | ||
Fiscal Year | Fiscal Year | ||
The Company’s fiscal year ends on the Saturday nearest to January 31. As used herein, “2014” and “2013” refer to the 52-week periods ending January 31, 2015 and February 1, 2014, respectively. “2012” refers to the 53-week period ending February 2, 2013. | |||
Basis of Consolidation | Basis of Consolidation | ||
The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | |||
The Company accounts for investments in unconsolidated entities where it exercises significant influence, but does not have control, using the equity method. Under the equity method of accounting, the Company recognizes its share of the investee net income or loss. Losses are only recognized to the extent the Company has positive carrying value related to the investee. Carrying values are only reduced below zero if the Company has an obligation to provide funding to the investee. The Company’s share of net income or loss of unconsolidated entities from which the Company purchases merchandise or merchandise components is included in Costs of Goods Sold, Buying and Occupancy on the Consolidated Statements of Income. The Company’s share of net income or loss of all other unconsolidated entities is included in Other Income on the Consolidated Statements of Income. The Company’s equity investments are required to be reviewed for impairment when it is determined there may be an other than temporary loss in value. | |||
Third-party Apparel Sourcing Business | |||
On October 31, 2011, the Company divested a majority ownership interest in its third-party apparel sourcing business to affiliates of Sycamore Partners. The Company is accounting for its continuing investment under the equity method of accounting. For additional information, see Note 8, “Equity Investments and Other.” | |||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||
Cash and Cash Equivalents include cash on hand, demand deposits with financial institutions and highly liquid investments with original maturities of less than 90 days. The Company’s outstanding checks, which totaled $42 million as of January 31, 2015 and $62 million as of February 1, 2014, are included in Accounts Payable on the Consolidated Balance Sheets. | |||
Concentration of Credit Risk | Concentration of Credit Risk | ||
The Company maintains cash and cash equivalents and derivative contracts with various major financial institutions. The Company monitors the relative credit standing of financial institutions with whom the Company transacts and limits the amount of credit exposure with any one entity. Currently, the Company’s investment portfolio is comprised of U.S. government obligations, U.S. Treasury and AAA-rated money market funds, highly rated commercial paper and bank deposits. | |||
The Company also periodically reviews the relative credit standing of franchise, license and wholesale partners and other entities to which the Company grants credit terms in the normal course of business. | |||
Inventories | Inventories | ||
Inventories are principally valued at the lower of cost or market, on a weighted-average cost basis. | |||
The Company records valuation adjustments to its inventories if the cost of specific inventory items on hand exceeds the amount it expects to realize from the ultimate sale or disposal of the inventory. These estimates are based on management’s judgment regarding future demand and market conditions and analysis of historical experience. | |||
The Company also records inventory loss adjustments for estimated physical inventory losses that have occurred since the date of the last physical inventory. These estimates are based on management’s analysis of historical results and operating trends. | |||
Catalogue and Advertising Costs | Advertising Costs | ||
Advertising and catalogue costs are expensed at the time the promotion first appears in media, in the store or when the advertising is mailed. Advertising and catalogue costs totaled $436 million for 2014, $452 million for 2013 and $460 million for 2012. | |||
Property and Equipment | Property and Equipment | ||
The Company’s property and equipment are recorded at cost and depreciation/amortization is computed on a straight-line basis using the following depreciable life ranges: | |||
Category of Property and Equipment | Depreciable Life Range | ||
Software, including software developed for internal use | 3 - 7 years | ||
Store related assets | 3 - 10 years | ||
Leasehold improvements | Shorter of lease term or 10 years | ||
Non-store related building and site improvements | 10 - 15 years | ||
Other property and equipment | 20 years | ||
Buildings | 30 years | ||
When a decision has been made to dispose of property and equipment prior to the end of the previously estimated useful life, depreciation estimates are revised to reflect the use of the asset over the shortened estimated useful life. The Company’s cost of assets sold or retired and the related accumulated depreciation are removed from the accounts with any resulting gain or loss included in net income. Maintenance and repairs are charged to expense as incurred. Major renewals and betterments that extend useful lives are capitalized. | |||
Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset. | |||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | ||
The Company has certain intangible assets resulting from business combinations and acquisitions that are recorded at cost. Intangible assets with finite lives are amortized on a straight-line basis over their respective estimated useful lives ranging from 3 to 5 years. | |||
Intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset. | |||
Goodwill is reviewed for impairment each year in the fourth quarter and may be reviewed more frequently if certain events occur or circumstances change. First, pursuant to Accounting Standards Update ("ASU") No. 2011-08, Testing Goodwill for Impairment, the Company performs a qualitative assessment to determine whether it is more likely than not that each reporting unit's fair value is less than its carrying value, including goodwill. If the Company determines that it is more likely than not that the fair value of the reporting unit is less than its carrying value, the Company then estimates the fair value of all assets and liabilities of that reporting unit, including the implied fair value of goodwill, through either estimated discounted future cash flows or market-based methodologies. If the carrying value of goodwill exceeds the implied fair value, the Company recognizes an impairment charge equal to the difference. The Company's reporting units are determined in accordance with the provisions of Accounting Standards Codification ("ASC") Topic 350, Intangibles - Goodwill and Other. The Company's reporting units that have goodwill are Victoria's Secret Stores, Victoria's Secret Direct and Bath & Body Works. | |||
Intangible assets with indefinite lives are reviewed for impairment each year in the fourth quarter and may be reviewed more frequently if certain events occur or circumstances change. First, pursuant to ASU No. 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment, the Company performs a qualitative assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. If the Company determines that it is more likely than not that the fair value of the asset is less than its carrying amount, the Company estimates the fair value, usually determined by the estimated discounted future cash flows of the asset, compares that value with its carrying amount and records an impairment charge, if any. | |||
If future economic conditions are different than those projected by management, future impairment charges may be required. | |||
Leases and Leasehold Improvements | Leases and Leasehold Improvements | ||
The Company has leases that contain predetermined fixed escalations of minimum rentals and/or rent abatements subsequent to taking possession of the leased property. The Company recognizes the related rent expense on a straight-line basis commencing upon the store possession date. The Company records the difference between the recognized rental expense and amounts payable under the leases as deferred lease credits. The Company’s liability for predetermined fixed escalations of minimum rentals and/or rent abatements totaled $142 million as of January 31, 2015 and $131 million as of February 1, 2014. These liabilities are included in Other Long-term Liabilities on the Consolidated Balance Sheets. | |||
The Company receives construction allowances from landlords related to its retail stores. These allowances are generally comprised of cash amounts received by the Company from its landlords as part of the negotiated lease terms. The Company records a receivable and a landlord allowance at the lease commencement date (date of initial possession of the store). The landlord allowance is amortized on a straight-line basis as a reduction of rent expense over the term of the lease (including the pre-opening build-out period), and the receivable is reduced as amounts are received from the landlord. The Company’s unamortized portion of landlord allowances, which totaled $192 million as of January 31, 2015 and $181 million as of February 1, 2014, is included in Other Long-term Liabilities on the Consolidated Balance Sheets. | |||
The Company also has leasehold improvements which are amortized over the shorter of their estimated useful lives or the period from the date the assets are placed in service to the end of the initial lease term. Leasehold improvements made after the inception of the initial lease term are depreciated over the shorter of their estimated useful lives or the remaining lease term, including renewal periods, if reasonably assured. | |||
Foreign Currency Translation | Foreign Currency Translation | ||
The functional currency of the Company’s foreign operations is generally the applicable local currency. Assets and liabilities are translated into U.S. dollars using the current exchange rates in effect as of the balance sheet date, while revenues and expenses are translated at the average exchange rates for the period. The Company’s resulting translation adjustments are recorded as a component of Comprehensive Income in the Consolidated Statements of Comprehensive Income and the Consolidated Statements of Total Equity (Deficit). | |||
Derivative Financial Instruments | Derivative Financial Instruments | ||
The Company uses derivative instruments designated as cash flow hedges or fair value hedges and non-designated derivative instruments to manage exposure to foreign currency exchange rates and interest rates. The Company does not use derivative financial instruments for trading purposes. All derivative financial instruments are recorded on the Consolidated Balance Sheets at fair value. | |||
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. | |||
For derivative instruments that are designated and qualify as fair value hedges, the changes in the fair value of the derivative instrument have an equal and offsetting impact to the carrying value of the liability on the balance sheet. | |||
For derivative instruments that are not designated as hedging instruments, the gain or loss on the derivative instrument is recognized in current earnings. | |||
Fair Value | Fair Value | ||
The authoritative guidance included in ASC Topic 820, Fair Value Measurements and Disclosure, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. This authoritative guidance further establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: | |||
• | Level 1—Quoted market prices in active markets for identical assets or liabilities. | ||
• | Level 2—Observable inputs other than quoted market prices included in Level 1, such as quoted prices of similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | ||
• | Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. | ||
The Company estimates the fair value of financial instruments, property and equipment and goodwill and intangible assets in accordance with the provisions of ASC Topic 820. | |||
Income Taxes | Income Taxes | ||
The Company accounts for income taxes under the asset and liability method. Under this method, taxes currently payable or refundable are accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are also recognized for realizable operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted income tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in income tax rates is recognized in the Company’s Consolidated Statement of Income in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if it is more likely than not that such assets will not be realized. U.S. deferred income taxes are not provided on undistributed income of foreign subsidiaries where such earnings are considered to be permanently reinvested for the foreseeable future. | |||
In determining the Company’s provision for income taxes, the Company considers permanent differences between book and tax income and statutory income tax rates. The Company’s effective income tax rate is affected by items including changes in tax law, the tax jurisdiction of new stores or business ventures and the level of earnings. | |||
The Company follows a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. | |||
The Company’s income tax returns, like those of most companies, are periodically audited by domestic and foreign tax authorities. These audits include questions regarding the Company’s tax filing positions, including the timing and amount of deductions and the allocation of income among various tax jurisdictions. At any one time, multiple tax years are subject to audit by the various tax authorities. A number of years may elapse before a particular matter for which the Company has established an accrual is audited and fully resolved or clarified. The Company adjusts its tax contingencies accrual and income tax provision in the period in which matters are effectively settled with tax authorities at amounts different from its established accrual, when the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. The Company includes its tax contingencies accrual, including accrued penalties and interest, in Other Long-term Liabilities on the Consolidated Balance Sheets unless the liability is expected to be paid within one year. Changes to the tax contingencies accrual, including accrued penalties and interest, are included in Provision for Income Taxes on the Consolidated Statements of Income. | |||
Self Insurance | Self Insurance | ||
The Company is self-insured for medical, workers’ compensation, property, general liability and automobile liability up to certain stop-loss limits. Such costs are accrued based on known claims and an estimate of incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information and actuarial estimates. | |||
Noncontrolling Interest [Policy Text Block] | Noncontrolling Interest | ||
Noncontrolling interest represents the portion of equity interests of consolidated affiliates not owned by the Company. | |||
Share-based Compensation | Share-based Compensation | ||
The Company recognizes all share-based payments to employees and directors as compensation cost over the service period based on their estimated fair value on the date of grant. | |||
Compensation cost is recognized over the service period for the fair value of awards that actually vest. Compensation expense for awards without a performance condition is recognized, net of estimated forfeitures, using a single award approach (each award is valued as one grant, irrespective of the number of vesting tranches). Compensation expense for awards with a performance condition is recognized, net of estimated forfeitures, using a multiple award approach (each vesting tranche is valued as one grant). | |||
Revenue Recognition | Revenue Recognition | ||
The Company recognizes sales upon customer receipt of the merchandise, which for direct response revenues reflects an estimate of shipments that have not yet been received by the customer based on shipping terms and estimated delivery times. The Company’s shipping and handling revenues are included in Net Sales with the related costs included in Costs of Goods Sold, Buying and Occupancy on the Consolidated Statements of Income. The Company also provides a reserve for projected merchandise returns based on prior experience. Net Sales exclude sales tax collected from customers. | |||
The Company’s brands sell gift cards with no expiration dates to customers. The Company does not charge administrative fees on unused gift cards. The Company recognizes income from gift cards when they are redeemed by the customer. In addition, the Company recognizes income on unredeemed gift cards when it can determine that the likelihood of the gift card being redeemed is remote and that there is no legal obligation to remit the unredeemed gift cards to relevant jurisdictions (gift card breakage). The Company determines the gift card breakage rate based on historical redemption patterns. Gift card breakage is included in Net Sales in the Consolidated Statements of Income. | |||
The Company also recognize revenues associated with franchise, license and wholesale arrangements. Revenue recognized under franchise and license arrangements generally consists of royalties earned and recognized upon sale of merchandise by franchise and license partners to retail customers. Revenue is generally recognized under wholesale arrangements at the time the title passes to the partner. | |||
The Company recognizes revenue associated with merchandise sourcing and production services provided to third parties. Revenue is recognized at the time the title passes to the customer. | |||
Costs of Goods Sold, Buying and Occupancy | Costs of Goods Sold, Buying and Occupancy | ||
The Company’s costs of goods sold include merchandise costs, net of discounts and allowances, freight and inventory shrinkage. The Company’s buying and occupancy expenses primarily include payroll, benefit costs and operating expenses for its buying departments and distribution network, rent, common area maintenance, real estate taxes, utilities, maintenance, fulfillment expenses and depreciation for the Company’s stores, warehouse facilities and equipment. | |||
General, Administrative and Store Operating Expenses | General, Administrative and Store Operating Expenses | ||
The Company’s general, administrative and store operating expenses primarily include payroll and benefit costs for its store-selling and administrative departments (including corporate functions), marketing, advertising and other operating expenses not specifically categorized elsewhere in the Consolidated Statements of Income. | |||
Use of Estimates in the Preparation of Financial Statements Policy | Use of Estimates in the Preparation of Financial Statements | ||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. Actual results may differ from those estimates, and the Company revises its estimates and assumptions as new information becomes available. | |||
Third Party Sourcing Business [Member] | |||
Policy on consolidation of sales to equity investments | The Company is accounting for its continuing investment under the equity method of accounting. |
Description_of_Business_and_Su2
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||
Jan. 31, 2015 | |||
Depreciable Life Range of Property Plant and Equipment | The Company’s property and equipment are recorded at cost and depreciation/amortization is computed on a straight-line basis using the following depreciable life ranges: | ||
Category of Property and Equipment | Depreciable Life Range | ||
Software, including software developed for internal use | 3 - 7 years | ||
Store related assets | 3 - 10 years | ||
Leasehold improvements | Shorter of lease term or 10 years | ||
Non-store related building and site improvements | 10 - 15 years | ||
Other property and equipment | 20 years | ||
Buildings | 30 years |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share Computation | The following table provides shares utilized for the calculation of basic and diluted earnings per share for 2014, 2013 and 2012: | ||||||||
2014 | 2013 | 2012 | |||||||
(in millions) | |||||||||
Weighted-average Common Shares: | |||||||||
Issued Shares | 309 | 306 | 302 | ||||||
Treasury Shares | (17 | ) | (16 | ) | (12 | ) | |||
Basic Shares | 292 | 290 | 290 | ||||||
Effect of Dilutive Options and Restricted Stock | 6 | 6 | 7 | ||||||
Diluted Shares | 298 | 296 | 297 | ||||||
Anti-dilutive Options and Awards (a) | 1 | 1 | 1 | ||||||
________________ | |||||||||
(a) | These options and awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. |
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Property, Plant and Equipment, Net | The following table provides details of property and equipment, net as of January 31, 2015 and February 1, 2014: | |||||||
January 31, | February 1, | |||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Land | $ | 87 | $ | 58 | ||||
Buildings and Improvements | 413 | 408 | ||||||
Furniture, Fixtures, Software and Equipment | 3,169 | 2,984 | ||||||
Leasehold Improvements | 1,647 | 1,534 | ||||||
Construction in Progress | 164 | 117 | ||||||
Total | 5,480 | 5,101 | ||||||
Accumulated Depreciation and Amortization | (3,203 | ) | (3,056 | ) | ||||
Property and Equipment, Net | $ | 2,277 | $ | 2,045 | ||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Summary of inventories | The following table provides details of inventories as of January 31, 2015 and February 1, 2014: | |||||||
January 31, | February 1, | |||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Finished Goods Merchandise | $ | 942 | $ | 1,073 | ||||
Raw Materials and Merchandise Components | 94 | 92 | ||||||
Total Inventories | $ | 1,036 | $ | 1,165 | ||||
Goodwill_Trade_Names_and_Other1
Goodwill, Trade Names and Other Intangible Assets, Net (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||||
Schedule of Indefinite-Lived Intangible Assets [Table Text Block] | The following table provides additional detail regarding the composition of trade names as of January 31, 2015 and February 1, 2014: | |||||||
January 31, 2015 | February 1, 2014 | |||||||
(in millions) | ||||||||
Victoria's Secret | $ | 246 | $ | 246 | ||||
Bath & Body Works | 165 | 165 | ||||||
Intangible Assets - Trade Names | $ | 411 | $ | 411 | ||||
Schedule of Goodwill | The following table provides detail regarding the composition of goodwill for the fiscal years ended January 31, 2015 and February 1, 2014: | |||||||
31-Jan-15 | 1-Feb-14 | |||||||
(in millions) | ||||||||
Victoria's Secret | $ | 690 | $ | 690 | ||||
Bath & Body Works | 628 | 628 | ||||||
Goodwill | $ | 1,318 | $ | 1,318 | ||||
Accrued_Expenses_and_Other_Tab
Accrued Expenses and Other (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Composition of Accrued Expenses and Other | The following table provides additional information about the composition of accrued expenses and other as of January 31, 2015 and February 1, 2014: | |||||||
January 31, | February 1, | |||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Deferred Revenue, Principally from Gift Card Sales | $ | 227 | $ | 207 | ||||
Compensation, Payroll Taxes and Benefits | 244 | 173 | ||||||
Interest | 82 | 86 | ||||||
Taxes, Other than Income | 71 | 63 | ||||||
Accrued Claims on Self-insured Activities | 37 | 37 | ||||||
Returns Reserve | 26 | 29 | ||||||
Rent | 28 | 24 | ||||||
Other | 185 | 168 | ||||||
Total Accrued Expenses and Other | $ | 900 | $ | 787 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||
Provision for Income Taxes | The following table provides the components of the Company’s provision for income taxes for 2014, 2013 and 2012: | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Current: | ||||||||||||||||||||||||
U.S. Federal | $ | 454 | $ | 407 | $ | 432 | ||||||||||||||||||
U.S. State | 69 | 90 | 67 | |||||||||||||||||||||
Non-U.S. | 21 | 28 | 18 | |||||||||||||||||||||
Total | 544 | 525 | 517 | |||||||||||||||||||||
Deferred: | ||||||||||||||||||||||||
U.S. Federal | 46 | 11 | 14 | |||||||||||||||||||||
U.S. State | 3 | 3 | 4 | |||||||||||||||||||||
Non-U.S. | 1 | 4 | (7 | ) | ||||||||||||||||||||
Total | 50 | 18 | 11 | |||||||||||||||||||||
Provision for Income Taxes | $ | 594 | $ | 543 | $ | 528 | ||||||||||||||||||
Reconciliation of the Statutory Federal Income Tax Rate and the Effective Tax Rate | The following table provides the reconciliation between the statutory federal income tax rate and the effective tax rate for 2014, 2013 and 2012: | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Federal Income Tax Rate | 35 | % | 35 | % | 35 | % | ||||||||||||||||||
State Income Taxes, Net of Federal Income Tax Effect | 3.6 | % | 3.8 | % | 4 | % | ||||||||||||||||||
Impact of Non-U.S. Operations | (1.3 | )% | (1.4 | )% | 1.1 | % | ||||||||||||||||||
Non-deductible Impairment of Goodwill and Other Intangible Assets | — | % | — | % | 2.4 | % | ||||||||||||||||||
Other Items, Net | (1.0 | )% | 0.1 | % | (1.3 | )% | ||||||||||||||||||
Effective Tax Rate | 36.3 | % | 37.5 | % | 41.2 | % | ||||||||||||||||||
Effect of Temporary Differences that Cause Deferred Income Taxes | The following table provides the effect of temporary differences that cause deferred income taxes as of January 31, 2015 and February 1, 2014. Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carryforwards at the end of the respective year. | |||||||||||||||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||||||||||||||
Assets | Liabilities | Total | Assets | Liabilities | Total | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Leases | $ | 49 | $ | — | $ | 49 | $ | 46 | $ | — | $ | 46 | ||||||||||||
Non-qualified Retirement Plan | 97 | — | 97 | 94 | — | 94 | ||||||||||||||||||
Property and Equipment | — | (283 | ) | (283 | ) | — | (219 | ) | (219 | ) | ||||||||||||||
Goodwill | — | (15 | ) | (15 | ) | — | (15 | ) | (15 | ) | ||||||||||||||
Trade Names and Other Intangibles | — | (139 | ) | (139 | ) | — | (139 | ) | (139 | ) | ||||||||||||||
State Net Operating Loss Carryforwards | 18 | — | 18 | 21 | — | 21 | ||||||||||||||||||
Non-U.S. Operating Loss Carryforwards | 158 | — | 158 | 161 | — | 161 | ||||||||||||||||||
Valuation Allowance | (177 | ) | — | (177 | ) | (183 | ) | — | (183 | ) | ||||||||||||||
Other, Net | 79 | — | 79 | 71 | — | 71 | ||||||||||||||||||
Total Deferred Income Taxes | $ | 224 | $ | (437 | ) | $ | (213 | ) | $ | 210 | $ | (373 | ) | $ | (163 | ) | ||||||||
Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits for U.S. federal, state & non-U.S. tax jurisdictions for 2014, 2013 and 2012, without interest and penalties: | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year | $ | 167 | $ | 185 | $ | 146 | ||||||||||||||||||
Increases in Unrecognized Tax Benefits for Prior Years | 16 | 39 | 13 | |||||||||||||||||||||
Decreases in Unrecognized Tax Benefits for Prior Years | (14 | ) | (54 | ) | (19 | ) | ||||||||||||||||||
Increases in Unrecognized Tax Benefits as a Result of Current Year Activity | 36 | 37 | 52 | |||||||||||||||||||||
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities | (5 | ) | (34 | ) | (1 | ) | ||||||||||||||||||
Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations | (7 | ) | (6 | ) | (6 | ) | ||||||||||||||||||
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year | $ | 193 | $ | 167 | $ | 185 | ||||||||||||||||||
Longterm_Debt_Tables
Long-term Debt (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | The following table provides the Company’s long-term debt balance as of January 31, 2015 and February 1, 2014: | |||||||
January 31, | February 1, | |||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Senior Unsecured Debt with Subsidiary Guarantee | ||||||||
$1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) | $ | 1,000 | $ | 1,000 | ||||
$1 billion, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”) | 1,000 | 1,000 | ||||||
$500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) | 500 | 500 | ||||||
$500 million, 8.50% Fixed Interest Rate Notes due June 2019, Less Unamortized Discount (“2019 Notes”) (a) | 501 | 494 | ||||||
$400 million, 7.00% Fixed Interest Rate Notes due May 2020 (“2020 Notes”) | 400 | 400 | ||||||
Total Senior Unsecured Debt with Subsidiary Guarantee | $ | 3,401 | $ | 3,394 | ||||
Senior Unsecured Debt | ||||||||
$700 million, 6.90% Fixed Interest Rate Notes due July 2017, Less Unamortized Discount (“2017 Notes”) (b) | $ | 715 | $ | 718 | ||||
$350 million, 6.95% Fixed Interest Rate Debentures due March 2033, Less Unamortized Discount (“2033 Notes”) | 350 | 350 | ||||||
$300 million, 7.60% Fixed Interest Rate Notes due July 2037, Less Unamortized Discount (“2037 Notes”) | 299 | 299 | ||||||
5.25% Fixed Interest Rate Notes due November 2014, Less Unamortized Discount (“2014 Notes”) (c) | — | 215 | ||||||
Total Senior Unsecured Debt | $ | 1,364 | $ | 1,582 | ||||
Total | $ | 4,765 | $ | 4,976 | ||||
Current Portion of Long-term Debt | — | (215 | ) | |||||
Total Long-term Debt, Net of Current Portion | $ | 4,765 | $ | 4,761 | ||||
_______________ | ||||||||
(a) | The balance includes a fair value interest rate hedge adjustment which increased the debt balance by $8 million as of January 31, 2015 and $2 million as of February 1, 2014. | |||||||
(b) | The balances include a fair value interest rate hedge adjustment which increased the debt balance by $15 million as of January 31, 2015 and $19 million as of February 1, 2014. | |||||||
(c) | The outstanding principal balance was $213 million as of February 1, 2014. This balance includes a fair value interest rate hedge adjustment which increased the debt balance by $2 million | |||||||
Schedule of Principal Payments due on Long-term Debt [Text Block] | The following table provides principal payments due on long-term debt in the next five fiscal years and the remaining years thereafter: | |||||||
Fiscal Year (in millions) | ||||||||
2015 | $ | — | ||||||
2016 | — | |||||||
2017 | 700 | |||||||
2018 | — | |||||||
2019 | 500 | |||||||
Thereafter | 3,550 | |||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | |||||||||
Jan. 31, 2015 | ||||||||||
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | ||||||||||
Schedule of Derivative Instruments in Statement of Financial Position | The following table provides a summary of the fair value and balance sheet classification of the derivative financial instruments designated as foreign exchange cash flow hedges as of January 31, 2015 and February 1, 2014: | |||||||||
January 31, | February 1, | |||||||||
2015 | 2014 | |||||||||
(in millions) | ||||||||||
Other Long-term Liabilities | $ | — | $ | 13 | ||||||
Other Long-term Assets | 21 | — | ||||||||
Schedule of Derivative Instruments in Statement of Financial Performance | The following table provides a summary of the pre-tax financial statement effect of the gains and losses on the Company’s derivative instruments designated as foreign exchange cash flow hedges for 2014 and 2013: | |||||||||
Location | 2014 | 2013 | ||||||||
(in millions) | ||||||||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) | $ | 34 | $ | 46 | |||||
(Gain) Loss Reclassified from Accumulated Other Comprehensive Income (Loss) into Other Income (a) | Other Income | (60 | ) | (50 | ) | |||||
________________ | ||||||||||
(a) | Represents reclassification of amounts from accumulated other comprehensive income to earnings to completely offset foreign currency transaction gains and losses recognized on the intercompany loans. No ineffectiveness was associated with these foreign exchange cash flow hedges. | |||||||||
Interest Rate Swap [Member] | Fair Value Hedging [Member] | ||||||||||
Schedule of Derivative Instruments in Statement of Financial Position | The following table provides a summary of the fair value and balance sheet classification of the derivative financial instruments designated as interest rate fair value hedges as of January 31, 2015 and February 1, 2014: | |||||||||
January 31, | February 1, | |||||||||
2015 | 2014 | |||||||||
(in millions) | ||||||||||
Other Assets | $ | 12 | $ | 5 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Carrying Value And Fair Value Of Long Term Debt, Disclosure | The following table provides a summary of the carrying value and fair value of long-term debt as of January 31, 2015 and February 1, 2014: | |||||||||||||||
January 31, | February 1, | |||||||||||||||
2015 | 2014 | |||||||||||||||
(in millions) | ||||||||||||||||
Carrying Value | $ | 4,765 | $ | 4,976 | ||||||||||||
Fair Value (a) | 5,305 | 5,333 | ||||||||||||||
________________ | ||||||||||||||||
(a) | The estimated fair value of the Company’s publicly traded debt is based on reported transaction prices which are considered Level 2 inputs in accordance with ASC Topic 820, Fair Value Measurements and Disclosure. The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange. | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table provides a summary of assets and liabilities measured in the consolidated financial statements at fair value on a recurring basis as of January 31, 2015 and February 1, 2014: | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in millions) | ||||||||||||||||
As of January 31, 2015 | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and Cash Equivalents | $ | 1,681 | $ | — | $ | — | $ | 1,681 | ||||||||
Interest Rate Designated Fair Value Hedges | — | 12 | — | 12 | ||||||||||||
Cross-currency Cash Flow Hedges | — | 21 | — | 21 | ||||||||||||
Liabilities: | ||||||||||||||||
Lease Guarantees | — | — | 1 | 1 | ||||||||||||
As of February 1, 2014 | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and Cash Equivalents | $ | 1,519 | $ | — | $ | — | $ | 1,519 | ||||||||
Interest Rate Designated Fair Value Hedges | — | 5 | — | 5 | ||||||||||||
Liabilities: | ||||||||||||||||
Cross-currency Cash Flow Hedges | — | 13 | — | 13 | ||||||||||||
Lease Guarantees | — | — | 1 | 1 | ||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides a reconciliation of the Company’s lease guarantees measured at fair value on a recurring basis using unobservable inputs (Level 3) for 2014 and 2013: | |||||||||||||||
2014 | 2013 | |||||||||||||||
(in millions) | ||||||||||||||||
Beginning Balance | $ | 1 | $ | 2 | ||||||||||||
Change in Estimated Fair Value Reported in Earnings | — | (1 | ) | |||||||||||||
Ending Balance | $ | 1 | $ | 1 | ||||||||||||
Comprehensive_Income_Loss_Tabl
Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Comprehensive Income Loss | ||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) | The following table provides the rollforward of accumulated other comprehensive income for 2014: | |||||||||||
Foreign Currency Translation | Cash Flow Hedges | Accumulated Other Comprehensive Income | ||||||||||
(in millions) | ||||||||||||
Balance as of February 1, 2014 | $ | 30 | $ | 10 | $ | 40 | ||||||
Other Comprehensive Income (Loss) Before Reclassifications | 21 | 34 | 55 | |||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income | — | (60 | ) | (60 | ) | |||||||
Current-period Other Comprehensive Income (Loss) | 21 | (26 | ) | (5 | ) | |||||||
Balance as of January 31, 2015 | $ | 51 | $ | (16 | ) | $ | 35 | |||||
The following table provides the rollforward of accumulated other comprehensive income for 2013: | ||||||||||||
Foreign Currency Translation | Cash Flow Hedges | Accumulated Other Comprehensive Income | ||||||||||
(in millions) | ||||||||||||
Balance as of February 2, 2013 | $ | (10 | ) | $ | 14 | $ | 4 | |||||
Other Comprehensive Income (Loss) Before Reclassifications | 40 | 46 | 86 | |||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income | — | (50 | ) | (50 | ) | |||||||
Current-period Other Comprehensive Income (Loss) | 40 | (4 | ) | 36 | ||||||||
Balance as of February 1, 2014 | $ | 30 | $ | 10 | $ | 40 | ||||||
The components of accumulated other comprehensive income (loss) above are presented net of tax as applicable. | ||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | The following table provides a summary of the reclassification adjustments out of accumulated other comprehensive income for 2014: | |||||||||||
Details About Accumulated Other Comprehensive Income Components | Amounts Reclassified from Accumulated Other Comprehensive Income | Location on Consolidated Statements of Income | ||||||||||
2014 | 2013 | |||||||||||
(in millions) | ||||||||||||
Cash Flow Hedges | $ | (60 | ) | $ | (50 | ) | Other Income | |||||
— | — | Provision for Income Taxes | ||||||||||
$ | (60 | ) | $ | (50 | ) | Net Income |
Leases_Tables
Leases (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Leases [Abstract] | ||||||||||||
Remaining noncancelable lease term, minimum (in years) | 1 | |||||||||||
Remaining noncancelable lease term, maximum (in years) | 10 | |||||||||||
Leases Rent Expenses | The following table provides rent expense for 2014, 2013 and 2012: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(in millions) | ||||||||||||
Store Rent: | ||||||||||||
Fixed Minimum | $ | 516 | $ | 482 | $ | 453 | ||||||
Contingent | 63 | 59 | 60 | |||||||||
Total Store Rent | 579 | 541 | 513 | |||||||||
Office, Equipment and Other | 68 | 72 | 67 | |||||||||
Gross Rent Expense | 647 | 613 | 580 | |||||||||
Sublease Rental Income | (2 | ) | (2 | ) | (2 | ) | ||||||
Total Rent Expense | $ | 645 | $ | 611 | $ | 578 | ||||||
Minimum Rent Commitments Operating Leases | The following table provides the Company’s minimum rent commitments under noncancelable operating leases in the next five fiscal years and the remaining years thereafter: | |||||||||||
Fiscal Year (in millions) (a) | ||||||||||||
2015 | $ | 588 | ||||||||||
2016 | 556 | |||||||||||
2017 | 494 | |||||||||||
2018 | 413 | |||||||||||
2019 | 364 | |||||||||||
Thereafter | 1,455 | |||||||||||
________________ | ||||||||||||
(a) | Excludes additional payments covering taxes, common area costs and certain other expenses generally required by store lease terms. |
Retirement_Benefits_Tables
Retirement Benefits (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Retirement Benefits [Abstract] | ||||||||
Annual activity for the non-qualified plan and year-end liability | The following table provides the Company’s annual activity for this plan and year-end liability, included in Other Long-term Liabilities on the Consolidated Balance Sheets, as of January 31, 2015 and February 1, 2014: | |||||||
January 31, | February 1, | |||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Balance at Beginning of Year | $ | 243 | $ | 228 | ||||
Contributions: | ||||||||
Associate | 10 | 13 | ||||||
Company | 10 | 11 | ||||||
Interest | 14 | 11 | ||||||
Distributions | (20 | ) | (20 | ) | ||||
Balance at End of Year | $ | 257 | $ | 243 | ||||
Shareholders_Equity_Deficit_Ta
Shareholders' Equity (Deficit) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||
Schedule of Company's repurchase program | Under the authority of the Company’s Board of Directors, the Company repurchased shares of its common stock under the following repurchase programs during the fiscal years 2014, 2013 and 2012: | |||||||||||||||||||||||||||||
Shares Repurchased | Amount Repurchased | Average Stock | ||||||||||||||||||||||||||||
Price of | ||||||||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||||||||
Repurchased | ||||||||||||||||||||||||||||||
within | ||||||||||||||||||||||||||||||
Repurchase Program | Amount Authorized | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | Program | ||||||||||||||||||||||
(in millions) | (in thousands) | (in millions) | ||||||||||||||||||||||||||||
November 2012 (a) | $ | 250 | 1,317 | 1,377 | 245 | $ | 84 | $ | 63 | $ | 11 | $ | 54.02 | |||||||||||||||||
February 2012 (b) | 500 | NA | NA | 9,871 | NA | NA | 450 | 45.61 | ||||||||||||||||||||||
Nov-11 | 250 | NA | NA | 3,657 | NA | NA | 164 | 44.9 | ||||||||||||||||||||||
Total | 1,317 | 1,377 | 13,773 | $ | 84 | $ | 63 | $ | 625 | |||||||||||||||||||||
________________ | ||||||||||||||||||||||||||||||
(a) | The November 2012 repurchase program had $91 million remaining as of January 31, 2015. | |||||||||||||||||||||||||||||
(b) | The February 2012 repurchase program had $50 million rema | |||||||||||||||||||||||||||||
ining at the time it was cancelled in conjunction with the approval of the November 2012 repurchase program. | ||||||||||||||||||||||||||||||
NA | Not applicable | |||||||||||||||||||||||||||||
Schedule Of Dividends Paid | Under the authority and declaration of the Board of Directors, the Company paid the following dividends during the fiscal years 2014, 2013 and 2012: | |||||||||||||||||||||||||||||
Ordinary Dividends | Special Dividends | Total Dividends | Total Paid | |||||||||||||||||||||||||||
(per share) | (in millions) | |||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||||
Fourth Quarter | $ | 0.34 | $ | — | $ | 0.34 | $ | 100 | ||||||||||||||||||||||
Third Quarter | 0.34 | — | 0.34 | 100 | ||||||||||||||||||||||||||
Second Quarter | 0.34 | — | 0.34 | 99 | ||||||||||||||||||||||||||
First Quarter | 0.34 | 1 | 1.34 | 392 | ||||||||||||||||||||||||||
2014 Total | $ | 1.36 | $ | 1 | $ | 2.36 | $ | 691 | ||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||
Fourth Quarter | $ | 0.3 | $ | — | $ | 0.3 | $ | 88 | ||||||||||||||||||||||
Third Quarter | 0.3 | — | 0.3 | 87 | ||||||||||||||||||||||||||
Second Quarter | 0.3 | — | 0.3 | 87 | ||||||||||||||||||||||||||
First Quarter | 0.3 | — | 0.3 | 87 | ||||||||||||||||||||||||||
2013 Total | $ | 1.2 | $ | — | $ | 1.2 | $ | 349 | ||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||
Fourth Quarter | $ | 0.25 | $ | 3 | $ | 3.25 | $ | 942 | ||||||||||||||||||||||
Third Quarter | 0.25 | 1 | 1.25 | 361 | ||||||||||||||||||||||||||
Second Quarter | 0.25 | — | 0.25 | 73 | ||||||||||||||||||||||||||
First Quarter | 0.25 | — | 0.25 | 73 | ||||||||||||||||||||||||||
2012 Total | $ | 1 | $ | 4 | $ | 5 | $ | 1,449 | ||||||||||||||||||||||
Sharebased_Compensation_Tables
Share-based Compensation (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Share-based Compensation [Abstract] | |||||||||||||
Stock Option Activity | The following table provides the Company’s stock option activity for the fiscal year ended January 31, 2015: | ||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||
Shares | Average | Average | Intrinsic | ||||||||||
Option | Remaining | Value | |||||||||||
Price Per | Contractual | ||||||||||||
Share | Life | ||||||||||||
(in thousands) | (in years) | (in thousands) | |||||||||||
Outstanding as of February 1, 2014 | 6,204 | $ | 29.14 | ||||||||||
Granted | 1,112 | 59.76 | |||||||||||
Exercised | (1,462 | ) | 24.84 | ||||||||||
Cancelled | (195 | ) | 47.8 | ||||||||||
Adjustment for Special Dividend | 114 | N/A | |||||||||||
Outstanding as of January 31, 2015 | 5,773 | $ | 34.93 | 6.39 | $ | 276,675 | |||||||
Vested and Expected to Vest as of January 31, 2015 (a) | 5,582 | 34.38 | 6.31 | 270,589 | |||||||||
Options Exercisable as of January 31, 2015 | 2,885 | 21.38 | 4.55 | 177,220 | |||||||||
________________ | |||||||||||||
(a) | The number of options expected to vest includes an estimate of expected forfeitures. | ||||||||||||
Weighted-Average Assumptions | The following table contains the weighted-average assumptions used during 2014, 2013 and 2012: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected Volatility | 30 | % | 35 | % | 47 | % | |||||||
Risk-free Interest Rate | 1.4 | % | 0.8 | % | 1 | % | |||||||
Dividend Yield | 3 | % | 3.4 | % | 2.7 | % | |||||||
Expected Life (in years) | 4.6 | 4.7 | 4.8 | ||||||||||
Restricted Stock Activity | The following table provides the Company’s restricted stock activity for the fiscal year ended January 31, 2015: | ||||||||||||
Number of | Weighted | ||||||||||||
Shares | Average | ||||||||||||
Grant Date | |||||||||||||
Fair Value | |||||||||||||
(in thousands) | |||||||||||||
Unvested as of February 1, 2014 | 7,395 | $ | 34.82 | ||||||||||
Granted | 1,760 | 54.03 | |||||||||||
Vested | (2,209 | ) | 25.3 | ||||||||||
Cancelled | (309 | ) | 43.21 | ||||||||||
Adjustment for Special Dividend | 136 | N/A | |||||||||||
Unvested as of January 31, 2015 | 6,773 | 41.06 | |||||||||||
Share-Based Compensation Expense | The following table provides share-based compensation expense included in the Consolidated Statements of Income for 2014, 2013 and 2012: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in millions) | |||||||||||||
Costs of Goods Sold, Buying and Occupancy | $ | 24 | $ | 22 | $ | 19 | |||||||
General, Administrative and Store Operating Expenses | 66 | 63 | 54 | ||||||||||
Total Share-based Compensation Expense | $ | 90 | $ | 85 | $ | 73 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||
Segment Information [Abstract] | ||||||||||||||||||||
Schedule of Segment Reporting Information | The following table provides the Company’s segment information as of and for the fiscal years ended January 31, 2015, February 1, 2014 and February 2, 2013: | |||||||||||||||||||
Victoria’s | Bath & Body | Victoria’s Secret | Other | Total | ||||||||||||||||
Secret | Works | and | ||||||||||||||||||
Bath & | ||||||||||||||||||||
Body Works | ||||||||||||||||||||
International | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
31-Jan-15 | ||||||||||||||||||||
Net Sales | $ | 7,207 | $ | 3,350 | $ | 336 | $ | 561 | $ | 11,454 | ||||||||||
Depreciation and Amortization | 198 | 65 | 16 | 119 | 398 | |||||||||||||||
Operating Income (Loss) | 1,271 | 737 | 78 | (133 | ) | 1,953 | ||||||||||||||
Total Assets (a) | 2,950 | 1,365 | 369 | 2,860 | 7,544 | |||||||||||||||
Capital Expenditures | 446 | 77 | 37 | 155 | 715 | |||||||||||||||
1-Feb-14 | ||||||||||||||||||||
Net Sales | $ | 6,884 | $ | 3,118 | $ | 222 | $ | 549 | $ | 10,773 | ||||||||||
Depreciation and Amortization | 175 | 65 | 9 | 119 | 368 | |||||||||||||||
Operating Income (Loss) | 1,153 | 648 | 38 | (96 | ) | 1,743 | ||||||||||||||
Total Assets (a) | 2,811 | 1,369 | 290 | 2,728 | 7,198 | |||||||||||||||
Capital Expenditures | 444 | 80 | 33 | 134 | 691 | |||||||||||||||
2-Feb-13 | ||||||||||||||||||||
Net Sales | $ | 6,740 | $ | 3,074 | $ | 132 | $ | 513 | $ | 10,459 | ||||||||||
Depreciation and Amortization | 153 | 58 | 3 | 140 | 354 | |||||||||||||||
Operating Income (Loss) (b) | 1,207 | 629 | 4 | (267 | ) | 1,573 | ||||||||||||||
Total Assets (a) | 2,521 | 1,372 | 213 | 1,913 | 6,019 | |||||||||||||||
Capital Expenditures | 290 | 74 | 44 | 180 | 588 | |||||||||||||||
________________ | ||||||||||||||||||||
(a) | Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. | |||||||||||||||||||
(b) | Operating Loss for the Other segment includes a $93 million impairment charge related to goodwill and other intangible assets for our La Senza business; a $27 million impairment charge related to long-lived store assets for our Henri Bendel business; and $14 million of expense associated with the store closure initiative at La Senza. |
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||
Summarized Quarterly Financial Data | The following table provides summarized quarterly financial data for 2014: | |||||||||||||||
Fiscal Quarter Ended | ||||||||||||||||
May 3, | August 2, | November 1, | January 31, | |||||||||||||
2014 | 2014 | 2014 | 2015 | |||||||||||||
(in millions except per share data) | ||||||||||||||||
Net Sales | $ | 2,391 | $ | 2,675 | $ | 2,319 | $ | 4,069 | ||||||||
Gross Profit | 982 | 1,044 | 947 | 1,835 | ||||||||||||
Operating Income | 336 | 376 | 284 | 957 | ||||||||||||
Income Before Income Taxes | 255 | 296 | 205 | 880 | ||||||||||||
Net Income | 157 | 188 | 132 | 565 | ||||||||||||
Net Income Per Basic Share (a) | $ | 0.54 | $ | 0.65 | $ | 0.45 | $ | 1.93 | ||||||||
Net Income Per Diluted Share (a) | $ | 0.53 | $ | 0.63 | $ | 0.44 | $ | 1.89 | ||||||||
________________ | ||||||||||||||||
(a) | Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. | |||||||||||||||
The following table provides summarized quarterly financial data for 2013: | ||||||||||||||||
Fiscal Quarter Ended | ||||||||||||||||
May 4, | August 3, | November 2, | February 1, | |||||||||||||
2013 | 2013 | 2013 | 2014 | |||||||||||||
(in millions except per share data) | ||||||||||||||||
Net Sales | $ | 2,268 | $ | 2,516 | $ | 2,171 | $ | 3,818 | ||||||||
Gross Profit | 941 | 989 | 857 | 1,642 | ||||||||||||
Operating Income | 311 | 358 | 211 | 863 | ||||||||||||
Income Before Income Taxes | 235 | 282 | 142 | 787 | ||||||||||||
Net Income | 143 | 178 | 92 | 490 | ||||||||||||
Net Income Per Basic Share (a) | $ | 0.49 | $ | 0.62 | $ | 0.32 | $ | 1.69 | ||||||||
Net Income Per Diluted Share (a) | $ | 0.48 | $ | 0.61 | $ | 0.31 | $ | 1.65 | ||||||||
________________ | ||||||||||||||||
(a) | Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. |
Supplemental_Guarantor_Financi1
Supplemental Guarantor Financial Information Supplemental Guarantor Financial Information (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Guarantor Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Balance Sheet [Table Text Block] | L BRANDS, INC. | L BRANDS, INC. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||
Subsidiaries | Subsidiaries | L Brands, Inc. | Subsidiaries | Subsidiaries | L Brands, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | ASSETS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current Assets: | Current Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | — | $ | 1,462 | $ | 219 | $ | — | $ | 1,681 | Cash and Cash Equivalents | $ | — | $ | 1,353 | $ | 166 | $ | — | $ | 1,519 | |||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Net | 1 | 197 | 54 | — | 252 | Accounts Receivable, Net | — | 177 | 67 | — | 244 | |||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | — | 919 | 117 | — | 1,036 | Inventories | — | 978 | 187 | — | 1,165 | |||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Income Taxes | — | 34 | (1 | ) | — | 33 | Deferred Income Taxes | — | 44 | (16 | ) | — | 28 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | — | 146 | 84 | — | 230 | Other | — | 106 | 88 | — | 194 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total Current Assets | 1 | 2,758 | 473 | — | 3,232 | Total Current Assets | — | 2,658 | 492 | — | 3,150 | |||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment, Net | — | 1,385 | 892 | — | 2,277 | Property and Equipment, Net | — | 1,197 | 848 | — | 2,045 | |||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | — | 1,318 | — | — | 1,318 | Goodwill | — | 1,318 | — | — | 1,318 | |||||||||||||||||||||||||||||||||||||||||||||||||
Trade Names and Other Intangible Assets, Net | — | 411 | — | — | 411 | Trade Names and Other Intangible Assets, Net | — | 411 | — | — | 411 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net Investments in and Advances to/from Consolidated Affiliates | 4,635 | 14,003 | 1,405 | (20,043 | ) | — | Net Investments in and Advances to/from Consolidated Affiliates | 4,468 | 14,058 | 1,015 | (19,541 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | 188 | 35 | 693 | (610 | ) | 306 | Other Assets | 186 | 19 | 680 | (611 | ) | 274 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 4,824 | $ | 19,910 | $ | 3,463 | $ | (20,653 | ) | $ | 7,544 | Total Assets | $ | 4,654 | $ | 19,661 | $ | 3,035 | $ | (20,152 | ) | $ | 7,198 | |||||||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY (DEFICIT) | LIABILITIES AND EQUITY (DEFICIT) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current Liabilities: | Current Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Payable | $ | — | $ | 300 | $ | 313 | $ | — | $ | 613 | Accounts Payable | $ | 3 | $ | 318 | $ | 278 | $ | — | $ | 599 | |||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other | 83 | 495 | 322 | — | 900 | Accrued Expenses and Other | 86 | 418 | 283 | — | 787 | |||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | (4 | ) | 183 | (13 | ) | — | 166 | Current Portion of Long-term Debt | 215 | — | — | — | 215 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Current Liabilities | 79 | 978 | 622 | — | 1,679 | Income Taxes | (1 | ) | 176 | 50 | — | 225 | ||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Income Taxes | (4 | ) | (32 | ) | 297 | — | 261 | Total Current Liabilities | 303 | 912 | 611 | — | 1,826 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | 4,765 | 597 | — | (597 | ) | 4,765 | Deferred Income Taxes | (4 | ) | (27 | ) | 241 | — | 210 | ||||||||||||||||||||||||||||||||||||||||||||||
Other Long-term Liabilities | — | 609 | 224 | (13 | ) | 820 | Long-term Debt | 4,761 | 597 | — | (597 | ) | 4,761 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Equity (Deficit) | (16 | ) | 17,758 | 2,320 | (20,043 | ) | 19 | Other Long-term Liabilities | 3 | 581 | 201 | (15 | ) | 770 | ||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities and Equity (Deficit) | $ | 4,824 | $ | 19,910 | $ | 3,463 | $ | (20,653 | ) | $ | 7,544 | Total Equity (Deficit) | (409 | ) | 17,598 | 1,982 | (19,540 | ) | (369 | ) | ||||||||||||||||||||||||||||||||||||||||
Total Liabilities and Equity (Deficit) | $ | 4,654 | $ | 19,661 | $ | 3,035 | $ | (20,152 | ) | $ | 7,198 | |||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Income Statement [Table Text Block] | L BRANDS, INC. | L BRANDS, INC. | L BRANDS, INC. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | CONDENSED CONSOLIDATING STATEMENT OF INCOME | CONDENSED CONSOLIDATING STATEMENT OF INCOME | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | (in millions) | (in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||
Subsidiaries | Subsidiaries | L Brands, Inc. | Subsidiaries | Subsidiaries | L Brands, Inc. | Subsidiaries | Subsidiaries | L Brands, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | $ | — | $ | 10,711 | $ | 3,343 | $ | (2,600 | ) | $ | 11,454 | Net Sales | $ | — | $ | 10,047 | $ | 3,190 | $ | (2,464 | ) | $ | 10,773 | Net Sales | $ | — | $ | 9,717 | $ | 2,738 | $ | (1,996 | ) | $ | 10,459 | |||||||||||||||||||||||||
Costs of Goods Sold, Buying and Occupancy | — | (6,449 | ) | (2,611 | ) | 2,414 | (6,646 | ) | Costs of Goods Sold, Buying and Occupancy | — | (6,096 | ) | (2,598 | ) | 2,350 | (6,344 | ) | Costs of Goods Sold, Buying and Occupancy | — | (5,649 | ) | (2,324 | ) | 1,900 | (6,073 | ) | ||||||||||||||||||||||||||||||||||
Gross Profit | — | 4,262 | 732 | (186 | ) | 4,808 | Gross Profit | — | 3,951 | 592 | (114 | ) | 4,429 | Gross Profit | — | 4,068 | 414 | (96 | ) | 4,386 | ||||||||||||||||||||||||||||||||||||||||
General, Administrative and Store Operating Expenses | (6 | ) | (2,538 | ) | (446 | ) | 135 | (2,855 | ) | General, Administrative and Store Operating Expenses | (5 | ) | (2,403 | ) | (394 | ) | 116 | (2,686 | ) | General, Administrative and Store Operating Expenses | (5 | ) | (2,435 | ) | (373 | ) | 93 | (2,720 | ) | |||||||||||||||||||||||||||||||
Operating Income (Loss) | (6 | ) | 1,724 | 286 | (51 | ) | 1,953 | Operating Income (Loss) | (5 | ) | 1,548 | 198 | 2 | 1,743 | Impairment of Goodwill and Other Intangible Assets | — | — | (93 | ) | — | (93 | ) | ||||||||||||||||||||||||||||||||||||||
Interest Expense | (324 | ) | (35 | ) | (9 | ) | 44 | (324 | ) | Interest Expense | (314 | ) | (28 | ) | (11 | ) | 39 | (314 | ) | Operating Income (Loss) | (5 | ) | 1,633 | (52 | ) | (3 | ) | 1,573 | ||||||||||||||||||||||||||||||||
Other Income (Loss) | 1 | — | 6 | — | 7 | Other Income (Loss) | — | — | 17 | — | 17 | Interest Expense | (316 | ) | (22 | ) | (10 | ) | 32 | (316 | ) | |||||||||||||||||||||||||||||||||||||||
Income (Loss) Before Income Taxes | (329 | ) | 1,689 | 283 | (7 | ) | 1,636 | Income (Loss) Before Income Taxes | (319 | ) | 1,520 | 204 | 41 | 1,446 | Other Income (Loss) | — | 1 | 23 | — | 24 | ||||||||||||||||||||||||||||||||||||||||
Provision (Benefit) for Income Taxes | (3 | ) | 385 | 212 | — | 594 | Provision (Benefit) for Income Taxes | — | 305 | 238 | — | 543 | Income (Loss) Before Income Taxes | (321 | ) | 1,612 | (39 | ) | 29 | 1,281 | ||||||||||||||||||||||||||||||||||||||||
Equity in Earnings, Net of Tax | 1,368 | 46 | 316 | (1,730 | ) | — | Equity in Earnings, Net of Tax | 1,222 | 118 | 462 | (1,802 | ) | — | Provision (Benefit) for Income Taxes | — | 359 | 169 | — | 528 | |||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) | $ | 1,042 | $ | 1,350 | $ | 387 | $ | (1,737 | ) | $ | 1,042 | Net Income (Loss) | $ | 903 | $ | 1,333 | $ | 428 | $ | (1,761 | ) | $ | 903 | Equity in Earnings, Net of Tax | 1,074 | (171 | ) | 441 | (1,344 | ) | — | |||||||||||||||||||||||||||||
Net Income (Loss) | $ | 753 | $ | 1,082 | $ | 233 | $ | (1,315 | ) | $ | 753 | |||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Comprehensive Income Statement [Table Text Block] | L BRANDS, INC. | L BRANDS, INC. | L BRANDS, INC. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | (in millions) | (in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||
Subsidiaries | Subsidiaries | L Brands, Inc. | Subsidiaries | Subsidiaries | L Brands, Inc. | Subsidiaries | Subsidiaries | L Brands, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) | $ | 1,042 | $ | 1,350 | $ | 387 | $ | (1,737 | ) | $ | 1,042 | Net Income (Loss) | $ | 903 | $ | 1,333 | $ | 428 | $ | (1,761 | ) | $ | 903 | Net Income (Loss) | $ | 753 | $ | 1,082 | $ | 233 | $ | (1,315 | ) | $ | 753 | |||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax: | Other Comprehensive Income (Loss), Net of Tax: | Other Comprehensive Income (Loss), Net of Tax: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of Cash Flow Hedges to Earnings | — | — | (60 | ) | — | (60 | ) | Reclassification of Cash Flow Hedges to Earnings | — | — | (50 | ) | — | (50 | ) | Reclassification of Cash Flow Hedges to Earnings | 2 | — | 3 | — | 5 | |||||||||||||||||||||||||||||||||||||||
Foreign Currency Translation | — | — | 21 | — | 21 | Foreign Currency Translation | — | — | 40 | — | 40 | Foreign Currency Translation | — | — | (2 | ) | — | (2 | ) | |||||||||||||||||||||||||||||||||||||||||
Unrealized Gain (Loss) on Cash Flow Hedges | — | — | 34 | — | 34 | Unrealized Gain (Loss) on Cash Flow Hedges | — | — | 46 | — | 46 | Unrealized Gain (Loss) on Cash Flow Hedges | — | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | — | — | (5 | ) | — | (5 | ) | Total Other Comprehensive Income (Loss), Net of Tax | — | — | 36 | — | 36 | Total Other Comprehensive Income (Loss), Net of Tax | 2 | — | 2 | — | 4 | |||||||||||||||||||||||||||||||||||||||||
Total Comprehensive Income | $ | 1,042 | $ | 1,350 | $ | 382 | $ | (1,737 | ) | $ | 1,037 | Total Comprehensive Income | $ | 903 | $ | 1,333 | $ | 464 | $ | (1,761 | ) | $ | 939 | Total Comprehensive Income | $ | 755 | $ | 1,082 | $ | 235 | $ | (1,315 | ) | $ | 757 | |||||||||||||||||||||||||
Condensed Cash Flow Statement [Table Text Block] | L BRANDS, INC. | L BRANDS, INC. | L BRANDS, INC. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | (in millions) | (in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | L Brands, Inc. | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||
Subsidiaries | Subsidiaries | L Brands, Inc. | Subsidiaries | Subsidiaries | L Brands, Inc. | Subsidiaries | Subsidiaries | L Brands, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Cash Provided by (Used for) Operating Activities | $ | (333 | ) | $ | 1,677 | $ | 442 | $ | — | $ | 1,786 | Net Cash Provided by (Used for) Operating Activities | $ | (302 | ) | $ | 1,323 | $ | 227 | $ | — | $ | 1,248 | Net Cash Provided by (Used for) Operating Activities | $ | (361 | ) | $ | 1,389 | $ | 323 | $ | — | $ | 1,351 | |||||||||||||||||||||||||
Investing Activities: | Investing Activities: | Investing Activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Expenditures | — | (486 | ) | (229 | ) | — | (715 | ) | Capital Expenditures | — | (475 | ) | (216 | ) | — | (691 | ) | Capital Expenditures | — | (344 | ) | (244 | ) | — | (588 | ) | ||||||||||||||||||||||||||||||||||
Other Investing Activities | — | (1 | ) | 17 | — | 16 | Return of Capital from Third-party Apparel Sourcing Business Investment | — | — | 46 | — | 46 | Return of Capital from Third-party Apparel Sourcing Business Investment | — | — | 22 | — | 22 | ||||||||||||||||||||||||||||||||||||||||||
Net Cash Used for Investing Activities | — | (487 | ) | (212 | ) | — | (699 | ) | Other Investing Activities | — | — | (10 | ) | — | (10 | ) | Proceeds from Sale of Express Common Stock | — | — | 13 | — | 13 | ||||||||||||||||||||||||||||||||||||||
Financing Activities: | Net Cash Used for Investing Activities | — | (475 | ) | (180 | ) | — | (655 | ) | Net Investments in Consolidated Affiliates | — | 36 | — | (36 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||
Payments of Long-term Debt | (213 | ) | — | — | — | (213 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Activities: | Other Investing Activities | — | 17 | 5 | — | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings from Revolving Facility | — | — | 5 | — | 5 | Proceeds from Long-term Debt, Net of Issuance and Discount Costs | 495 | — | — | — | 495 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net Cash Used for Investing Activities | — | (291 | ) | (204 | ) | (36 | ) | (531 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments on Revolving Facility | — | — | (5 | ) | — | (5 | ) | Borrowings from Revolving Facility | 290 | — | — | — | 290 | |||||||||||||||||||||||||||||||||||||||||||||||
Financing Activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Costs | (5 | ) | — | — | — | (5 | ) | Repayments on Revolving Facility | (290 | ) | — | — | — | (290 | ) | Proceeds from Long-term Debt, Net of Issuance and Discount Costs | 985 | — | — | — | 985 | |||||||||||||||||||||||||||||||||||||||
Repurchase of Common Stock | (87 | ) | — | — | — | (87 | ) | Repurchase of Common Stock | (60 | ) | — | — | — | (60 | ) | Payments of Long-term Debt | (57 | ) | — | — | — | (57 | ) | |||||||||||||||||||||||||||||||||||||
Dividends Paid | (691 | ) | — | — | — | (691 | ) | Dividends Paid | (349 | ) | — | — | — | (349 | ) | Repurchase of Common Stock | (629 | ) | — | — | — | (629 | ) | |||||||||||||||||||||||||||||||||||||
Excess Tax Benefits from Share-based Compensation | — | 37 | 6 | — | 43 | Excess Tax Benefits from Share-based Compensation | — | 31 | 5 | — | 36 | Dividends Paid | (1,449 | ) | — | — | — | (1,449 | ) | |||||||||||||||||||||||||||||||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 1,295 | (1,118 | ) | (177 | ) | — | — | Net Financing Activities and Advances to/from Consolidated Affiliates | 184 | 57 | (241 | ) | — | — | Excess Tax Benefits from Share-based Compensation | — | 95 | 21 | — | 116 | ||||||||||||||||||||||||||||||||||||||||
Proceeds From Exercise of Stock Options and Other | 34 | — | — | — | 34 | Proceeds From Exercise of Stock Options and Other | 32 | — | — | — | 32 | Net Financing Activities and Advances to/from Consolidated Affiliates | 1,459 | (1,147 | ) | (348 | ) | 36 | — | |||||||||||||||||||||||||||||||||||||||||
Net Cash Provided by (Used for) Financing Activities | 333 | (1,081 | ) | (171 | ) | — | (919 | ) | Net Cash Provided by (Used for) Financing Activities | 302 | 88 | (236 | ) | — | 154 | Proceeds From Exercise of Stock Options and Other | 52 | — | — | — | 52 | |||||||||||||||||||||||||||||||||||||||
Effects of Exchange Rate Changes on Cash | — | — | (6 | ) | — | (6 | ) | Effects of Exchange Rate Changes on Cash | — | — | (1 | ) | — | (1 | ) | Net Cash Provided by (Used for) Financing Activities | 361 | (1,052 | ) | (327 | ) | 36 | (982 | ) | ||||||||||||||||||||||||||||||||||||
Net Increase in Cash and Cash Equivalents | — | 109 | 53 | — | 162 | Net Increase (Decrease) in Cash and Cash Equivalents | — | 936 | (190 | ) | — | 746 | Effects of Exchange Rate Changes on Cash | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents, Beginning of Year | — | 1,353 | 166 | — | 1,519 | Cash and Cash Equivalents, Beginning of Year | — | 417 | 356 | — | 773 | Net Increase (Decrease) in Cash and Cash Equivalents | — | 46 | (208 | ) | — | (162 | ) | |||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents, End of Year | $ | — | $ | 1,462 | $ | 219 | $ | — | $ | 1,681 | Cash and Cash Equivalents, End of Year | $ | — | $ | 1,353 | $ | 166 | $ | — | $ | 1,519 | Cash and Cash Equivalents, Beginning of Year | — | 371 | 564 | — | 935 | |||||||||||||||||||||||||||||||||
Cash and Cash Equivalents, End of Year | $ | — | $ | 417 | $ | 356 | $ | — | $ | 773 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Description_of_Business_and_Su3
Description of Business and Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Deferred Rent Credit, Noncurrent | $142 | $131 | |
Maturity of short term investments, maximum, in days | 90 | ||
Outstanding Check Carrying Amount | 42 | 62 | |
Catalogue and advertising expense | 436 | 452 | 460 |
Unamortized portion of landlord allowances | $192 | $181 | |
Minimum [Member] | |||
Intangible assets estimated useful lives, minimum | 3 years | ||
Maximum [Member] | |||
Intangible assets estimated useful lives, minimum | 5 years |
Description_of_Business_and_Su4
Description of Business and Summary of Significant Accounting Policies (Depreciable Life Range of Property Plant and Equipment) (Details) | 12 Months Ended |
Jan. 31, 2015 | |
Software, including software developed for internal use | |
Depreciable Life Range | 3Â -Â 7Â years |
Store related assets | |
Depreciable Life Range | 3Â -Â 10Â years |
Leasehold improvements | |
Depreciable Life Range | Shorter of lease term or 10 years |
Non-store related building and site improvements | |
Depreciable Life Range | 10Â -Â 15Â years |
Other property and equipment | |
Depreciable Life Range | 20 years |
Buildings | |
Depreciable Life Range | 30 years |
Earnings_Per_Share_Shares_Util
Earnings Per Share (Shares Utilized for the Calculation of Basic and Diluted Earnings per Share) (Details) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |||
Weighted-average Common Shares: | ||||||
Issued Shares | 309 | 306 | 302 | |||
Treasury Shares | -17 | -16 | -12 | |||
Basic Shares | 292 | 290 | 290 | |||
Effect of Dilutive Options and Restricted Stock | 6 | 6 | 7 | |||
Diluted Shares | 298 | 296 | 297 | |||
Anti-dilutive Options and Awards | 1 | [1] | 1 | [1] | 1 | [1] |
[1] | These options and awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. |
Restructuring_Activities_Detai
Restructuring Activities (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 28, 2012 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
La Senza 4Q11 Restructuring Program [Member] | ||||
Restructuring Charges | $24 | |||
Restructuring Costs and Asset Impairment Charges | 5 | |||
Payments for Restructuring | 1 | 3 | 11 | |
Restructuring Reserve, Accrual Adjustment | 1 | 3 | ||
La Senza 2Q12 Restructuring Program [Member] | ||||
Restructuring Charges | 17 | |||
Restructuring Costs and Asset Impairment Charges | 6 | |||
Payments for Restructuring | 1 | 3 | 5 | |
Restructuring Reserve, Accrual Adjustment | 1 | |||
Restructuring Reserve | 1 | |||
General, Administrative and Store Operating Expenses [Member] | La Senza 4Q11 Restructuring Program [Member] | ||||
Restructuring Reserve, Accrual Adjustment | 3 | |||
General, Administrative and Store Operating Expenses [Member] | La Senza 2Q12 Restructuring Program [Member] | ||||
Restructuring Charges | 16 | |||
General, Administrative and Store Operating Expenses [Member] | La Senza 2Q12 Restructuring Program [Member] | ||||
Restructuring Charges | $1 |
Property_and_Equipment_Net_Nar
Property and Equipment, Net (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 02, 2013 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Depreciation expense | $438 | $406 | $386 | |
Long-lived Store Asset Impairment Charges | 27 | 0 | 0 | 27 |
Property, Plant and Equipment, Net | 2,277 | 2,045 | ||
Henri Bendel [Member] | ||||
Property, Plant and Equipment, Net | $4 | $5 |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details of Property and Equipment, Net) (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ||
Land | $87 | $58 |
Buildings and Improvements | 413 | 408 |
Furniture, Fixtures, Software and Equipment | 3,169 | 2,984 |
Leasehold Improvements | 1,647 | 1,534 |
Construction in Progress | 164 | 117 |
Total | 5,480 | 5,101 |
Accumulated Depreciation and Amortization | -3,203 | -3,056 |
Property and Equipment, Net | $2,277 | $2,045 |
Inventories_Details
Inventories (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Inventory, Net [Abstract] | ||
Finished Goods Merchandise | $942 | $1,073 |
Raw Materials and Merchandise Components | 94 | 92 |
Total Inventories | $1,036 | $1,165 |
Goodwill_Trade_Names_and_Other2
Goodwill, Trade Names and Other Intangible Assets, Net (Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Feb. 02, 2013 | Jan. 28, 2012 | Jan. 31, 2009 | Jan. 28, 2012 |
Goodwill | $1,318 | $1,318 | |||||
Amortization of Intangible Assets | 0 | 1 | 3 | ||||
Victoria's Secret Segment [Member] | |||||||
Goodwill | 690 | 690 | |||||
LaSenza [Member] | |||||||
Goodwill impairment charges | 12 | 189 | 119 | ||||
Impairment of indefinite-lived intangible assets (excluding goodwill) | 75 | 112 | 25 | ||||
Impairment charges of finite lived intangible assets | $6 |
Goodwill_Trade_Names_and_Other3
Goodwill, Trade Names and Other Intangible Assets, Net (Schedule of Goodwill) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Feb. 02, 2013 | Jan. 31, 2009 | Jan. 28, 2012 | Jan. 31, 2015 | Feb. 01, 2014 |
Goodwill, beginning balance | $1,318 | $1,318 | |||
Goodwill, ending balance | 1,318 | 1,318 | |||
Victoria's Secret Segment [Member] | |||||
Goodwill, beginning balance | 690 | 690 | |||
Goodwill, ending balance | 690 | 690 | |||
Bath & Body Works Segment [Member] | |||||
Goodwill, beginning balance | 628 | 628 | |||
Goodwill, ending balance | 628 | 628 | |||
LaSenza [Member] | |||||
Impairment | ($12) | ($189) | ($119) |
Goodwill_Trade_Names_and_Other4
Goodwill, Trade Names and Other Intangible Assets, Net Goodwill, Trade Names and Other Intangible Assets, Net (Intangible Assets - Indefinite Lives) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Indefinite-lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $0 | $1 | $3 |
Indefinite-Lived Trade Names | 411 | 411 | |
Victoria's Secret [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-Lived Trade Names | 246 | 246 | |
Bath & Body Works [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-Lived Trade Names | $165 | $165 |
Equity_Investments_and_Other_D
Equity Investments and Other (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Feb. 02, 2013 | Oct. 27, 2012 |
Gain (Loss) on Equity Method Investment Dividends Or Distributions | $0 | $0 | $13 | ||
Third Party Sourcing Business [Member] | |||||
Cash distribution from equity method investment | 2 | 64 | 28 | ||
Return of Capital | 0 | 46 | 22 | 22 | |
Proceeds from Equity Method Investment (Operating) | 18 | 6 | |||
Equity method investment carrying value | 8 | 3 | |||
Equity Method Investment, Net Sales Proceeds | 85 | ||||
Equity Method Investment, Realized Gain (Loss) on Disposal | 78 | ||||
Equity Method Investment, Realized Gain (Loss) on Disposal Net of Tax | 70 | ||||
Easton Investment [Member] | |||||
Return of Capital | 0 | 0 | 13 | 13 | |
Equity method investment carrying value | 101 | 105 | |||
Acres Of Land | 1,300 | ||||
Gain (Loss) on Equity Method Investment Dividends Or Distributions | 13 | ||||
Easton Gateway Investment [Domain] | |||||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 34 | ||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 44 | ||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $10 |
Accrued_Expenses_and_Other_Det
Accrued Expenses and Other (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Accrued Liabilities, Current [Abstract] | ||
Deferred Revenue, Principally from Gift Card Sales | $227 | $207 |
Compensation, Payroll Taxes and Benefits | 244 | 173 |
Taxes, Other than Income | 71 | 63 |
Interest | 82 | 86 |
Accrued Claims on Self-insured Activities | 37 | 37 |
Returns Reserve | 26 | 29 |
Rent | 28 | 24 |
Other | 185 | 168 |
Total Accrued Expenses and Other | $900 | $787 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Feb. 02, 2013 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Pre-tax income (loss),Non-US, arising principally from overseas operations | $152 | $131 | $1 | ||
Impairment of Goodwill and Other Intangible Assets | 93 | 0 | 0 | 93 | |
Deferred Non-US Income Tax Expense (Benefit) | -1 | -4 | 7 | ||
Excess Tax Benefits from Share-based Compensation | 43 | 36 | 116 | ||
Undistributed Earnings of Foreign Subsidiaries | 216 | ||||
Income tax payments | 526 | 468 | 336 | ||
Unrecognized Tax Benefits | 185 | 193 | 167 | 185 | 146 |
Unrecognized tax benefits resulting in reduction of effective income tax rate | 160 | 170 | 143 | 160 | |
Unrecognized tax benefits reasonably possible change in the next twelve months | 142 | ||||
Interest and penalties related to unrecognized tax benefits of income tax expense | 1 | 4 | 1 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $31 | $30 |
Income_Taxes_Provision_for_Inc
Income Taxes (Provision for Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Current | |||
U.S. Federal | $454 | $407 | $432 |
U.S. State | 69 | 90 | 67 |
Non-U.S. | 21 | 28 | 18 |
Total | 544 | 525 | 517 |
Deferred | |||
U.S. Federal | 46 | 11 | 14 |
U.S. State | 3 | 3 | 4 |
Non-U.S. | 1 | 4 | -7 |
Total | 50 | 18 | 11 |
Provision for Income Taxes | $594 | $543 | $528 |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of the Statutory Federal Income Tax Rate and the Effective Tax Rate) (Details) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Federal Income Tax Rate | 35.00% | 35.00% | 35.00% |
State Income Taxes, Net of Federal Income Tax Effect | 3.60% | 3.80% | 4.00% |
Non-deductible Impairment of Goodwill and Other Intangible Assets | 0.00% | 0.00% | 2.40% |
Impact of Non-U.S. Operations | -1.30% | -1.40% | 1.10% |
Other Items, Net | -1.00% | 0.10% | -1.30% |
Effective Tax Rate | 36.30% | 37.50% | 41.20% |
Income_Taxes_Effect_of_Tempora
Income Taxes (Effect of Temporary Differences that Cause Deferred Income Taxes) (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Undistributed Earnings of Foreign Subsidiaries | $216 | |
Assets | 224 | 210 |
Liabilities | -437 | -373 |
Total | -213 | -163 |
Leases [Member] | ||
Assets | 49 | 46 |
Liabilities | 0 | 0 |
Total | 49 | 46 |
Non-qualified Retirement Plan [Member] | ||
Assets | 97 | 94 |
Liabilities | 0 | 0 |
Total | 97 | 94 |
Property and Equipment [Member] | ||
Assets | 0 | 0 |
Liabilities | -283 | -219 |
Total | -283 | -219 |
Goodwill [Member] | ||
Assets | 0 | 0 |
Liabilities | -15 | -15 |
Total | -15 | -15 |
Trade Names and Other Intangibles [Member] | ||
Assets | 0 | 0 |
Liabilities | -139 | -139 |
Total | -139 | -139 |
State Net Operating Loss Carryforwards [Member] | ||
Assets | 18 | 21 |
Liabilities | 0 | 0 |
Total | 18 | 21 |
Non-U.S. Operating Loss Carryforwards [Member] | ||
Assets | 158 | 161 |
Liabilities | 0 | 0 |
Total | 158 | 161 |
Valuation Allowance [Member] | ||
Assets | -177 | -183 |
Liabilities | 0 | 0 |
Total | -177 | -183 |
Other, Net [Member] | ||
Assets | 79 | 71 |
Liabilities | 0 | 0 |
Total | $79 | $71 |
Income_Taxes_Activity_Related_
Income Taxes (Activity Related to its Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year | $167 | $185 | $146 |
Increases in Tax Benefits for Prior Years | 16 | 39 | 13 |
Decreases in Tax Benefits for Prior Years | -14 | -54 | -19 |
Increases in Unrecognized Tax Benefits as a Result of Current Year Activity | 36 | 37 | 52 |
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities | -5 | -34 | -1 |
Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations | -7 | -6 | -6 |
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year | $193 | $167 | $185 |
Longterm_Debt_Narrative_Detail
Long-term Debt (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||||||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Feb. 29, 2012 | Nov. 02, 2013 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | Oct. 10, 2013 |
Repayments on Revolving Facility | ($5) | ($290) | $0 | ||||||
Cash paid for interest | 328 | 300 | 276 | ||||||
Proceeds from Issuance of Long-term Debt | 0 | 495 | 985 | ||||||
Fixed Rate 5.625% Notes Due February 2022 [Member] | |||||||||
Debt instrument, face amount | 1,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.63% | ||||||||
Proceeds from Issuance of Long-term Debt | 985 | ||||||||
Notes issuance transaction costs | 15 | ||||||||
Fixed Rate 5.625% Notes Due October 2023 [Member] | |||||||||
Debt instrument, face amount | 500 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.63% | ||||||||
Proceeds from Issuance of Long-term Debt | 495 | ||||||||
Notes issuance transaction costs | 5 | ||||||||
Fixed Rate 5.25% Notes Due November 2014 [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% | |||||||
Repayments of Debt | 213 | ||||||||
Revolving Credit Facility [Member] | Revolving Credit Expiring July 2016 [Member] | |||||||||
Repayments on Revolving Facility | ($290) | ($5) |
Longterm_Debt_Schedule_of_Long
Long-term Debt (Schedule of Long-term Debt Instruments) (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 | ||
In Millions, unless otherwise specified | ||||
Senior unsecured debt with subsidiary guarantee | $3,401 | $3,394 | ||
Senior unsecured debt | 1,364 | 1,582 | ||
Total | 4,765 | 4,976 | ||
Current portion of long-term debt | 0 | -215 | ||
Total long-term debt, net of current portion | 4,765 | 4,761 | ||
Fixed Rate 5.625% Notes Due February 2022 [Member] | ||||
Senior unsecured debt with subsidiary guarantee | 1,000 | 1,000 | ||
Fixed Rate 6.625% Notes Due April 2021 [Member] | ||||
Senior unsecured debt with subsidiary guarantee | 1,000 | 1,000 | ||
Fixed Rate 5.625% Notes Due October 2023 [Member] | ||||
Senior unsecured debt with subsidiary guarantee | 500 | 500 | ||
Fixed Rate 8.50% Notes Due June 2019 [Member] | ||||
Senior unsecured debt with subsidiary guarantee | 501 | [1] | 494 | [1] |
Interest Rate Fair Value Hedge Derivative at Fair Value, Net | 8 | 2 | ||
Fixed Rate 7.00% Notes Due May 2020 [Member] | ||||
Senior unsecured debt with subsidiary guarantee | 400 | 400 | ||
Fixed Rate 6.90% Notes Due July 2017 [Member] | ||||
Senior unsecured debt | 715 | [2] | 718 | [2] |
Interest Rate Fair Value Hedge Derivative at Fair Value, Net | 15 | 19 | ||
Fixed Rate 6.95% Debentures Due March 2033 [Member] | ||||
Senior unsecured debt | 350 | 350 | ||
Fixed Rate 7.60% Notes Due July 2037 [Member] | ||||
Senior unsecured debt | 299 | 299 | ||
Fixed Rate 5.25% Notes Due November 2014 [Member] | ||||
Senior unsecured debt | 0 | [3] | 215 | [3] |
Principal balance outstanding | 213 | |||
Interest Rate Fair Value Hedge Derivative at Fair Value, Net | 2 | |||
L Brands, Inc. [Member] | ||||
Current portion of long-term debt | -215 | |||
Total long-term debt, net of current portion | $4,765 | $4,761 | ||
[1] | The balance includes a fair value interest rate hedge adjustment which increased the debt balance by $8 million | |||
[2] | The balances include a fair value interest rate hedge adjustment which increased the debt balance by $15 million as of January 31, 2015 and $19 million as of February 1, 2014. | |||
[3] | The outstanding principal balance was $213 million as of February 1, 2014. This balance includes a fair value interest rate hedge adjustment which increased the debt balance by $2 million |
Longterm_Debt_Schedule_of_Prin
Long-term Debt (Schedule of Principal Payments on Long-term Debt) (Details) (USD $) | Jan. 31, 2015 |
In Millions, unless otherwise specified | |
2014 | $0 |
2015 | 0 |
2016 | 700 |
2017 | 0 |
2018 | 500 |
Thereafter | $3,550 |
Longterm_Debt_Longterm_debt_Re
Long-term Debt Long-term debt (Revolving Facility and Letters of Credit (Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Nov. 01, 2014 | Aug. 02, 2014 | |
Line of Credit Facility [Line Items] | |||||
Borrowings from Revolving Facility | $5,000,000 | $290,000,000 | $0 | ||
Repayments on Revolving Facility | -5,000,000 | -290,000,000 | 0 | ||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Amount Outstanding | 0 | ||||
Revolving Credit Facility [Member] | Revolving Credit Expiring July 2016 [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000,000 | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||
Line of Credit Financial Covenant, Fixed Charge Coverage Ratio | 1.75 | ||||
Line of Credit Financial Covenant, Ratio of Consolidated Debt to Consolidated EBITDA | 4 | ||||
Debt to EBITDA ratio required for unlimited investments and restricted payments | 3 | ||||
Line of Credit Financial Covenant Ratio of Consolidated Debt to Consolidated EBITDA Maximum Current Rate | 3 | ||||
Borrowings from Revolving Facility | 290,000,000 | ||||
Repayments on Revolving Facility | -290,000,000 | -5,000,000 | |||
Line of Credit Facility, Maximum Amount Outstanding During Period | 140,000,000 | ||||
Revolving Credit Facility [Member] | Revolving Credit Expiring July 2019 [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||
Borrowings from Revolving Facility | 5,000,000 | ||||
Line of Credit Facility, Maximum Amount Outstanding During Period | 5,000,000 | ||||
Revolving Credit Facility [Member] | Amendment [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Payments of Debt Restructuring Costs | 5,000,000 | ||||
Letter of Credit [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Amount Outstanding | $19,000,000 | ||||
Letter of Credit [Member] | Revolving Credit Facility [Member] | Revolving Credit Expiring July 2016 [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Commitment Fee Percentage | 1.50% |
Derivative_Instruments_Derivat
Derivative Instruments Derivative Instruments (Foreign Exchange Contracts - Cash Flow Hedging Disclosure) (Details) | 12 Months Ended | |||||||||
Jan. 31, 2015 | Jan. 31, 2015 | Feb. 01, 2014 | Jan. 31, 2015 | Feb. 01, 2014 | Jan. 31, 2015 | Jan. 31, 2015 | Jan. 31, 2007 | |||
USD ($) | Other Comprehensive Income (Loss) [Member] | Other Comprehensive Income (Loss) [Member] | Other Income [Member] | Other Income [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | |||
USD ($) | USD ($) | USD ($) | USD ($) | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | ||||
USD ($) | CAD | CAD | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Derivative, Notional Amount | 200,000,000 | 470,000,000 | ||||||||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | 34,000,000 | 46,000,000 | ||||||||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 60,000,000 | [1] | 50,000,000 | [1] | ||||||
Gain (Loss) on Foreign Currency Cash Flow Hedge Ineffectiveness | 0 | |||||||||
Gain (loss) on foreign currency cash flow hedge discontinuance | 4,000,000 | |||||||||
Foreign Currency Gain (Loss) | $6,000,000 | |||||||||
[1] | Represents reclassification of amounts from accumulated other comprehensive income to earnings to completely offset foreign currency transaction gains and losses recognized on the intercompany loans. No ineffectiveness was associated with these foreign exchange cash flow hedges. |
Derivative_Instruments_Fair_Va
Derivative Instruments Fair Value Derivatives, Balance Sheet Location, by Derivative Contract Type (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | $21 | $13 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Fair Value Hedge Asset at Fair Value | 12 | 5 |
Other Long-term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 0 | 13 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | $21 | $0 |
Derivative_Instruments_Derivat1
Derivative Instruments Derivative Instruments (Interest Rate Contracts - Fair Value Hedging Disclosure) (Details) (Fair Value Hedging [Member], Interest Rate Swap [Member], USD $) | Aug. 02, 2014 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Fixed Rate 6.90% Notes Due July 2017 [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $100 | $200 |
Fixed Rate 8.50% Notes Due June 2019 [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $100 | $200 |
Fair_Value_Measurements_Carryi
Fair Value Measurements (Carrying Value and Fair Value of Long Term Debt) (Detail) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 | ||
In Millions, unless otherwise specified | ||||
Fair Value Measurements [Abstract] | ||||
Carrying Value | $4,765 | $4,976 | ||
Fair Value | $5,305 | [1] | $5,333 | [1] |
[1] | The estimated fair value of the Company’s publicly traded debt is based on reported transaction prices which are considered Level 2 inputs in accordance with ASC Topic 820, Fair Value Measurements and Disclosure. The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
In Millions, unless otherwise specified | |||
Assets: | |||
Cash and Cash Equivalents | $1,681 | $1,519 | |
Interest Rate Designated as Fair Value Hedges | 12 | 5 | |
Liabilities: | |||
Cross-currency Cash Flow Hedges | 21 | 13 | |
Lease Guarantees | 1 | 1 | |
Fair Value, Inputs, Level 1 | |||
Assets: | |||
Cash and Cash Equivalents | 1,681 | 1,519 | |
Interest Rate Designated as Fair Value Hedges | 0 | 0 | |
Liabilities: | |||
Cross-currency Cash Flow Hedges | 0 | 0 | |
Lease Guarantees | 0 | 0 | |
Fair Value, Inputs, Level 2 | |||
Assets: | |||
Cash and Cash Equivalents | 0 | 0 | |
Interest Rate Designated as Fair Value Hedges | 12 | 5 | |
Liabilities: | |||
Cross-currency Cash Flow Hedges | 21 | 13 | |
Lease Guarantees | 0 | 0 | |
Fair Value, Inputs, Level 3 | |||
Assets: | |||
Cash and Cash Equivalents | 0 | 0 | |
Interest Rate Designated as Fair Value Hedges | 0 | 0 | |
Liabilities: | |||
Cross-currency Cash Flow Hedges | 0 | 0 | |
Lease Guarantees | $1 | $1 | $2 |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements (Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Ending Balance | $1 | $1 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 1 | 2 |
Change in Estimated Fair Value Reported in Earnings | 0 | -1 |
Ending Balance | $1 | $1 |
Comprehensive_Income_Loss_Deta
Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Accumulated Other Comprehensive Income Beginning Balance | $40 | $4 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 55 | 86 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | -60 | -50 | |
Total Other Comprehensive Income (Loss), Net of Tax | -5 | 36 | 4 |
Accumulated Other Comprehensive Income Ending Balance | 35 | 40 | 4 |
Accumulated Translation Adjustment [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Accumulated Other Comprehensive Income Beginning Balance | 30 | -10 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 21 | 40 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | |
Total Other Comprehensive Income (Loss), Net of Tax | 21 | 40 | |
Accumulated Other Comprehensive Income Ending Balance | 51 | 30 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Accumulated Other Comprehensive Income Beginning Balance | 10 | 14 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 34 | 46 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | -60 | -50 | |
Total Other Comprehensive Income (Loss), Net of Tax | -26 | -4 | |
Accumulated Other Comprehensive Income Ending Balance | ($16) | $10 |
Comprehensive_Income_Reclassif
Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Other Income | $7 | $17 | $24 | ||||||||
Provision for Income Taxes | 594 | 543 | 528 | ||||||||
Net Income | 565 | 132 | 188 | 157 | 490 | 92 | 178 | 143 | 1,042 | 903 | 753 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Other Income | -60 | -50 | |||||||||
Provision for Income Taxes | 0 | 0 | |||||||||
Net Income | ($60) | ($50) |
Leases_Leases_Rent_Expenses_De
Leases (Leases Rent Expenses) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Leases [Abstract] | |||
Fixed minimum, store rent | $516 | $482 | $453 |
Contingent, store rent | 63 | 59 | 60 |
Total store rent | 579 | 541 | 513 |
Office, equipment and other | 68 | 72 | 67 |
Gross rent expense | 647 | 613 | 580 |
Sublease rental income | -2 | -2 | -2 |
Total rent expense | $645 | $611 | $578 |
Leases_Minimum_Rent_Commitment
Leases (Minimum Rent Commitments Operating Leases) (Details) (USD $) | Jan. 31, 2015 | |
In Millions, unless otherwise specified | ||
Leases [Abstract] | ||
2014 | $588 | [1] |
2015 | 556 | [1] |
2016 | 494 | [1] |
2017 | 413 | [1] |
2018 | 364 | [1] |
Thereafter | $1,455 | [1] |
[1] | Excludes additional payments covering taxes, common area costs and certain other expenses generally required by store lease terms. |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Feb. 02, 2013 | Jan. 31, 2015 | Feb. 01, 2014 |
Loss Contingency, Damages Awarded, Value | $9 | ||
Property Lease Guarantee [Member] | |||
Lease guarantees remaining after disposition of certain businesses | 24 | ||
Property Lease Guarantee [Member] | Express Limited Stores and New York and Company [Member] | |||
Lease guarantees remaining after disposition of certain businesses | 11 | 22 | |
Lease guarantees, estimated fair value | $1 | $1 |
Retirement_Benefits_Details
Retirement Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Retirement Benefits [Abstract] | |||
Expense Related to the Qualified Plan | $59 | $56 | $55 |
Non-Qualified Plan Table Text Block [Line Items] | |||
Non-Qualified Plan, Benefit Obligation | 257 | 243 | 228 |
Non-Qualified Plan, Contributions by Plan Participants | 10 | 13 | |
Non-Qualified Plan, Contributions by Employer | 10 | 11 | |
Non-Qualified Plan, Interest Cost | 14 | 11 | |
Non-Qualified Plan, Benefits Paid | -20 | -20 | |
Non-Qualified Plan [Member] | |||
Non-Qualified Plan Table Text Block [Line Items] | |||
Expense related to the Non-Qualified Plan | $24 | $22 | $24 |
Shareholders_Equity_Deficit_Na
Shareholders' Equity (Deficit) (Narrative) (Details) (Subsequent Event [Member], February 2015 Repurchase Program [Member] [Member], USD $) | Feb. 01, 2015 |
In Millions, unless otherwise specified | |
Subsequent Event [Member] | February 2015 Repurchase Program [Member] [Member] | |
Stock Repurchase Program, Authorized Amount | $250 |
Shareholders_Equity_Deficit_Sc
Shareholders' Equity (Deficit) (Schedule of Company's repurchase program) (Details) (USD $) | 12 Months Ended | 24 Months Ended | 1 Months Ended | ||||||
In Millions, except Share data in Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Feb. 01, 2014 | Feb. 02, 2013 | Mar. 05, 2015 | Nov. 23, 2012 | Feb. 01, 2015 | |
Treasury Stock, Shares, Acquired | 1,317 | 1,377 | 13,773 | ||||||
Repurchase of Common Stock | $84 | $63 | $625 | ||||||
November 2012 Repurchase Program [Member] | |||||||||
Stock Repurchase Program, Authorized Amount | 250 | [1] | |||||||
Treasury Stock, Shares, Acquired | 1,317 | 1,377 | 245 | ||||||
Repurchase of Common Stock | 84 | 63 | 11 | ||||||
Average Stock Price of Shares Repurchased within Program | $54.02 | ||||||||
February 2012 Repurchase Program [Member] | |||||||||
Stock Repurchase Program, Authorized Amount | 500 | [2] | |||||||
Treasury Stock, Shares, Acquired | 9,871 | ||||||||
Repurchase of Common Stock | 450 | ||||||||
Average Stock Price of Shares Repurchased within Program | $45.61 | ||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 50 | ||||||||
November 2011 Repurchase Program [Member] [Member] | |||||||||
Stock Repurchase Program, Authorized Amount | 250 | ||||||||
Treasury Stock, Shares, Acquired | 3,657 | ||||||||
Repurchase of Common Stock | 164 | ||||||||
Average Stock Price of Shares Repurchased within Program | $44.90 | ||||||||
Subsequent Event [Member] | November 2012 Repurchase Program [Member] | |||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 91 | ||||||||
Subsequent Event [Member] | February 2015 Repurchase Program [Member] [Member] | |||||||||
Stock Repurchase Program, Authorized Amount | 250 | ||||||||
Treasury Stock, Shares, Acquired | 200 | ||||||||
Repurchase of Common Stock | 22 | ||||||||
Accounts Payable [Member] | November 2012 Repurchase Program [Member] | |||||||||
Share repurchase reflected in Accounts payable | $0 | $3 | $3 | ||||||
[1] | The November 2012 repurchase program had $91 million remaining as of January 31, 2015. | ||||||||
[2] | The February 2012 repurchase program had $50 million remaining at the time it was cancelled in conjunction with the approval of the November 2012 repurchase program. |
Shareholders_Equity_Deficit_Di
Shareholders' Equity (Deficit) (Dividends Paid) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Feb. 02, 2013 | Oct. 27, 2012 | Jul. 28, 2012 | Apr. 28, 2012 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Mar. 05, 2015 |
Common Stock, Dividends, Per Share, Cash Paid | $0.34 | $0.34 | $0.34 | $0.34 | $0.30 | $0.30 | $0.30 | $0.30 | $0.25 | $0.25 | $0.25 | $0.25 | $1.36 | $1.20 | $1 | |
Special Dividend To Common Stockholders Per Share Paid | $0 | $0 | $0 | $1 | $0 | $0 | $0 | $0 | $3 | $1 | $0 | $0 | $0 | $0 | $4 | |
Total Dividends Per Share Cash Paid | $0.34 | $0.34 | $0.34 | $1.34 | $0.30 | $0.30 | $0.30 | $0.30 | $3.25 | $1.25 | $0.25 | $0.25 | $2.36 | $1.20 | $5 | |
Dividends Paid | $100 | $100 | $99 | $392 | $88 | $87 | $87 | $87 | $942 | $361 | $73 | $73 | $691 | $349 | $1,449 | |
Common Stock, Dividends, Per Share, Declared | $2.36 | $1.20 | $5 | |||||||||||||
Dividend Declared [Member] | ||||||||||||||||
Dividends Paid | $731 | |||||||||||||||
Common Stock, Dividends, Per Share, Declared | $0.34 | $0.50 | ||||||||||||||
Special Dividends Per Share Declared | $2 |
Sharebased_Compensation_Narrat
Share-based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Options, restricted and unrestricted shares authorized | 146 | ||
Options and shares available for grant | 12 | ||
Tax Benefit associated with share based compensation | $30 | $29 | $25 |
Stock Options [Member] | |||
Total intrinsic value of options exercised | 52 | 69 | 133 |
Total fair value at grant date of option awards vested | 11 | 10 | 10 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 19 | ||
Weighted average fair value of stock options granted | $11.74 | $9.71 | $13.89 |
Cash received from stock options exercised | 35 | 32 | 53 |
Total unrecognized compensation cost, weighted-average period of recognition, years | 2 years 10 months 15 days | ||
Tax benefits realized from tax deductions | 21 | 14 | 42 |
Restricted Stock [Member] | |||
Total intrinsic value of restricted stock vested | 128 | 106 | 257 |
Total fair value at grant date of awards vested | 56 | 40 | 37 |
Total unrecognized compensation cost, net of estimated forfeitures | 108 | ||
Total unrecognized compensation cost, weighted-average period of recognition, years | 2 years 6 months | ||
Tax benefits realized from tax deductions | $46 | $40 | $90 |
Sharebased_Compensation_Stock_
Share-based Compensation (Stock Option Activity) (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding as of February 2, 2013, Number of Shares | 6,204 | |
Granted, Number of Shares | 1,112 | |
Exercised, Number of Shares | -1,462 | |
Cancelled, Number of Shares | -195 | |
Outstanding as of February 1, 2014, Number of Shares | 5,773 | |
Vested and Expected to Vest as of February 1, 2014, Number of Shares | 5,582 | [1] |
Options Exercisable as of February 1, 2014, Number of Shares | 2,885 | |
Outstanding as of February 2, 2013, Weighted Average Option Price Per Share | $29.14 | |
Granted, Weighted Average Option Price Per Share | $59.76 | |
Exercised, Weighted Average Option Price Per Share | $24.84 | |
Cancelled, Weighted Average Option Price Per Share | $47.80 | |
Outstanding as of February 1, 2014, Weighted Average Option Price Per Share | $34.93 | |
Vested and Expected to Vest as of February 1, 2014, Weighted Average Option Price Per Share | $34.38 | [1] |
Options Exercisable as of February 1, 2014, Weighted Average Options Price Per Share | $21.38 | |
Outstanding as of February 1, 2014, Weighted Average Remaining Contractual Life | 6 years 4 months 20 days | |
Vested and Expected to Vest as of February 1, 2014, Weighted Average Remaining Contractual Life | 6 years 3 months 22 days | [1] |
Options Exercisable as of February 1, 2014, Weighted Average Remaining Contractual Life | 4 years 6 months 20 days | |
Outstanding as of February 1, 2014, Aggregate Intrinsic Value | $276,675 | |
Vested and Expected to Vest as of February 1, 2014, Aggregate Intrinsic Value | 270,589 | [1] |
Options Exercisable as of February 1, 2014, Aggregate Intrinsic Value | $177,220 | |
Dividends, Share-based Compensation, Cash | 114 | |
[1] | The number of options expected to vest includes an estimate of expected forfeitures. |
Sharebased_Compensation_Weight
Share-based Compensation (Weighted-Average Assumptions) (Details) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Share-based Compensation [Abstract] | |||
Expected Volatility | 30.00% | 35.00% | 47.00% |
Risk-free Interest Rate | 1.40% | 0.80% | 1.00% |
Dividend Yield | 3.00% | 3.40% | 2.70% |
Expected Life (in years) | 4 years 6 months 26 days | 4 years 8 months 12 days | 4 years 9 months 18 days |
Sharebased_Compensation_Restri
Share-based Compensation (Restricted Stock Activity) (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Unvested as of February 2, 2013, Number of Shares | 7,395 |
Granted, Number of Shares | 1,760 |
Vested, Number of Shares | -2,209 |
Cancelled, Number of Shares | -309 |
Unvested as of February 1, 2014, Number of Shares | 6,773 |
Unvested as of February 2, 2013, Weighted Average Grant Date Fair Value | $34.82 |
Granted, Weighted Average Grant Date Fair Value | $54.03 |
Vested, Weighted Average Grant Date Fair Value | $25.30 |
Cancelled, Weighted Average Grant Date Fair Value | $43.21 |
Unvested as of February 1, 2014, Weighted Average Grant Date Fair Value | $41.06 |
Share-based Compensation Arrangement RS Special Dividend Share Adj: Stock Plan Anti-dilution Provision | 136 |
Sharebased_Compensation_ShareB
Share-based Compensation (Share-Based Compensation Expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Share-based Compensation Expense | $90 | $85 | $73 |
Costs of Goods Sold, Buying and Occupancy [Member] | |||
Share-based Compensation Expense | 24 | 22 | 19 |
General, Administrative and Store Operating Expenses [Member] | |||
Share-based Compensation Expense | $66 | $63 | $54 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Feb. 02, 2013 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||
Reportable_Segments | ||||||||||||||
Number Of Reportable Segments (in reportable segments) | 3 | |||||||||||||
Net Sales | $4,069 | $2,319 | $2,675 | $2,391 | $3,818 | $2,171 | $2,516 | $2,268 | $11,454 | $10,773 | $10,459 | |||
Depreciation and Amortization | 398 | 368 | 354 | |||||||||||
Operating Income (Loss) | 957 | 284 | 376 | 336 | 863 | 211 | 358 | 311 | 1,953 | 1,743 | [1] | 1,573 | [1] | |
Total Assets | 7,544 | 7,198 | 6,019 | 7,544 | 7,198 | 6,019 | ||||||||
Capital Expenditures | 715 | 691 | 588 | |||||||||||
Impairment of Goodwill and Other Intangible Assets | 93 | 0 | 0 | 93 | ||||||||||
Long-lived Store Asset Impairment Charges | 27 | 0 | 0 | 27 | ||||||||||
LaSenza [Member] | ||||||||||||||
Restructuring Charges | 14 | |||||||||||||
Victoria's Secret Segment [Member] | ||||||||||||||
Net Sales | 7,207 | 6,884 | 6,740 | |||||||||||
Depreciation and Amortization | 198 | 175 | 153 | |||||||||||
Operating Income (Loss) | 1,271 | 1,153 | 1,207 | |||||||||||
Total Assets | 2,950 | 2,811 | 2,521 | 2,950 | 2,811 | 2,521 | ||||||||
Capital Expenditures | 446 | 444 | 290 | |||||||||||
Bath & Body Works Segment [Member] | ||||||||||||||
Net Sales | 3,350 | 3,118 | 3,074 | |||||||||||
Depreciation and Amortization | 65 | 65 | 58 | |||||||||||
Operating Income (Loss) | 737 | 648 | 629 | |||||||||||
Total Assets | 1,365 | 1,369 | 1,372 | 1,365 | 1,369 | 1,372 | ||||||||
Capital Expenditures | 77 | 80 | 74 | |||||||||||
Victoria's Secret and Bath & Body Works International [Member] | ||||||||||||||
Net Sales | 336 | 222 | 132 | |||||||||||
Depreciation and Amortization | 16 | 9 | 3 | |||||||||||
Operating Income (Loss) | 78 | 38 | 4 | |||||||||||
Total Assets | 369 | 290 | 213 | 369 | 290 | 213 | ||||||||
Capital Expenditures | 37 | 33 | 44 | |||||||||||
Other Operating Segment | ||||||||||||||
Net Sales | 561 | 549 | 513 | |||||||||||
Depreciation and Amortization | 119 | 119 | 140 | |||||||||||
Operating Income (Loss) | -133 | -96 | [1] | -267 | [1] | |||||||||
Total Assets | 2,860 | 2,728 | 1,913 | 2,860 | 2,728 | 1,913 | ||||||||
Capital Expenditures | $155 | $134 | $180 | |||||||||||
[1] | Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. |
Segment_Information_Additional
Segment Information (Additional Information) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Number Of Reportable Segments (in reportable segments) | 3 | ||
Henri Bendel [Member] | |||
Henri Bendel Specialty Stores Owned | 29 | ||
International [Member] | |||
International sales | $1,349 | $1,212 | $1,060 |
Internationally based Long-lived Assets | $293 | $280 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||||
Net Sales | $4,069 | $2,319 | $2,675 | $2,391 | $3,818 | $2,171 | $2,516 | $2,268 | $11,454 | $10,773 | $10,459 | ||||||||||
Gross Profit | 1,835 | 947 | 1,044 | 982 | 1,642 | 857 | 989 | 941 | 4,808 | 4,429 | 4,386 | ||||||||||
Operating Income | 957 | 284 | 376 | 336 | 863 | 211 | 358 | 311 | 1,953 | 1,743 | [1] | 1,573 | [1] | ||||||||
Income Before Income Taxes | 880 | 205 | 296 | 255 | 787 | 142 | 282 | 235 | 1,636 | 1,446 | 1,281 | ||||||||||
Net Income | $565 | $132 | $188 | $157 | $490 | $92 | $178 | $143 | $1,042 | $903 | $753 | ||||||||||
Net Income Per Basic Share | $1.93 | [2] | $0.45 | [2] | $0.65 | [2] | $0.54 | [2] | $1.69 | [2] | $0.32 | [2] | $0.62 | [2] | $0.49 | [2] | $3.57 | $3.12 | $2.60 | ||
Net Income Per Diluted Share | $1.89 | [2] | $0.44 | [2] | $0.63 | [2] | $0.53 | [2] | $1.65 | [2] | $0.31 | [2] | $0.61 | [2] | $0.48 | [2] | $3.50 | $3.05 | $2.54 | ||
[1] | Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. | ||||||||||||||||||||
[2] | Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. |
Quarterly_Financial_Data_Unaud3
Quarterly Financial Data (Unaudited) (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 02, 2013 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Gain (Loss) on Equity Method Investment Dividends Or Distributions | $0 | $0 | $13 | |
Impairment of Goodwill and Other Intangible Assets | 93 | 0 | 0 | 93 |
Long-lived Store Asset Impairment Charges | 27 | 0 | 0 | 27 |
LaSenza [Member] | ||||
Restructuring Charges | $14 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||
In Millions, except Share data in Thousands, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Feb. 02, 2013 | Oct. 27, 2012 | Jul. 28, 2012 | Apr. 28, 2012 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Mar. 05, 2015 | Feb. 01, 2015 | ||
Subsequent Event [Line Items] | |||||||||||||||||||
Treasury Stock, Shares, Acquired | 1,317 | 1,377 | 13,773 | ||||||||||||||||
Repurchase of Common Stock | $84 | $63 | $625 | ||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $2.36 | $1.20 | $5 | ||||||||||||||||
Payments of Ordinary Dividends, Common Stock | 100 | 100 | 99 | 392 | 88 | 87 | 87 | 87 | 942 | 361 | 73 | 73 | 691 | 349 | 1,449 | ||||
Dividend Declared [Member] | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $0.34 | $0.50 | |||||||||||||||||
Special Dividends Per Share Declared | $2 | ||||||||||||||||||
Payments of Ordinary Dividends, Common Stock | 731 | ||||||||||||||||||
November 2012 Repurchase Program [Member] | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Stock Repurchase Program, Authorized Amount | 250 | [1] | 250 | [1] | |||||||||||||||
Treasury Stock, Shares, Acquired | 1,317 | 1,377 | 245 | ||||||||||||||||
Repurchase of Common Stock | 84 | 63 | 11 | ||||||||||||||||
November 2012 Repurchase Program [Member] | Subsequent Event [Member] | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 91 | ||||||||||||||||||
February 2015 Repurchase Program [Member] [Member] | Subsequent Event [Member] | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Stock Repurchase Program, Authorized Amount | 250 | ||||||||||||||||||
Treasury Stock, Shares, Acquired | 200 | ||||||||||||||||||
Repurchase of Common Stock | 22 | ||||||||||||||||||
Third Party Sourcing Business [Member] | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Equity Method Investment, Net Sales Proceeds | 85 | ||||||||||||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $78 | ||||||||||||||||||
[1] | The November 2012 repurchase program had $91 million remaining as of January 31, 2015. |
Supplemental_Guarantor_Financi2
Supplemental Guarantor Financial Information (Narrative) (Details) | 12 Months Ended |
Jan. 31, 2015 | |
Minimum percentage of assets owned by domestic subsidiaries | 90.00% |
Minimum percentage of accounts receivable and inventory owned by domestic subsidiaries | 95.00% |
Supplemental_Guarantor_Financi3
Supplemental Guarantor Financial Information (Condensed Consolidating Balance Sheet) (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
In Millions, unless otherwise specified | ||||
Current Assets: | ||||
Cash and Cash Equivalents | $1,681 | $1,519 | $773 | $935 |
Accounts Receivable, Net | 252 | 244 | ||
Inventories | 1,036 | 1,165 | ||
Deferred Income Taxes | 33 | 28 | ||
Other | 230 | 194 | ||
Total Current Assets | 3,232 | 3,150 | ||
Property and Equipment, Net | 2,277 | 2,045 | ||
Goodwill | 1,318 | 1,318 | ||
Trade Names and Other Intangible Assets, Net | 411 | 411 | ||
Net Investments in and Advances to/from Consolidated Affiliates | 0 | 0 | ||
Other Assets | 306 | 274 | ||
Total Assets | 7,544 | 7,198 | 6,019 | |
Current Liabilities: | ||||
Accounts Payable | 613 | 599 | ||
Accrued Expenses and Other | 900 | 787 | ||
Current Portion of Long-term Debt | 0 | 215 | ||
Income Taxes | 166 | 225 | ||
Total Current Liabilities | 1,679 | 1,826 | ||
Deferred Income Taxes | 261 | 210 | ||
Long-term Debt | 4,765 | 4,761 | ||
Other Long-term Liabilities | 820 | 770 | ||
Total Equity (Deficit) | 19 | -369 | -1,014 | 138 |
Total Liabilities and Equity (Deficit) | 7,544 | 7,198 | ||
L Brands, Inc. [Member] | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 0 | 0 | 0 | 0 |
Accounts Receivable, Net | 1 | 0 | ||
Inventories | 0 | 0 | ||
Deferred Income Taxes | 0 | 0 | ||
Other | 0 | 0 | ||
Total Current Assets | 1 | 0 | ||
Property and Equipment, Net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Trade Names and Other Intangible Assets, Net | 0 | 0 | ||
Net Investments in and Advances to/from Consolidated Affiliates | 4,635 | 4,468 | ||
Other Assets | 188 | 186 | ||
Total Assets | 4,824 | 4,654 | ||
Current Liabilities: | ||||
Accounts Payable | 0 | 3 | ||
Accrued Expenses and Other | 83 | 86 | ||
Current Portion of Long-term Debt | 215 | |||
Income Taxes | -4 | -1 | ||
Total Current Liabilities | 79 | 303 | ||
Deferred Income Taxes | -4 | -4 | ||
Long-term Debt | 4,765 | 4,761 | ||
Other Long-term Liabilities | 0 | 3 | ||
Total Equity (Deficit) | -16 | -409 | ||
Total Liabilities and Equity (Deficit) | 4,824 | 4,654 | ||
Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 1,462 | 1,353 | 417 | 371 |
Accounts Receivable, Net | 197 | 177 | ||
Inventories | 919 | 978 | ||
Deferred Income Taxes | 34 | 44 | ||
Other | 146 | 106 | ||
Total Current Assets | 2,758 | 2,658 | ||
Property and Equipment, Net | 1,385 | 1,197 | ||
Goodwill | 1,318 | 1,318 | ||
Trade Names and Other Intangible Assets, Net | 411 | 411 | ||
Net Investments in and Advances to/from Consolidated Affiliates | 14,003 | 14,058 | ||
Other Assets | 35 | 19 | ||
Total Assets | 19,910 | 19,661 | ||
Current Liabilities: | ||||
Accounts Payable | 300 | 318 | ||
Accrued Expenses and Other | 495 | 418 | ||
Current Portion of Long-term Debt | 0 | |||
Income Taxes | 183 | 176 | ||
Total Current Liabilities | 978 | 912 | ||
Deferred Income Taxes | -32 | -27 | ||
Long-term Debt | 597 | 597 | ||
Other Long-term Liabilities | 609 | 581 | ||
Total Equity (Deficit) | 17,758 | 17,598 | ||
Total Liabilities and Equity (Deficit) | 19,910 | 19,661 | ||
Non-Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 219 | 166 | 356 | 564 |
Accounts Receivable, Net | 54 | 67 | ||
Inventories | 117 | 187 | ||
Deferred Income Taxes | -1 | -16 | ||
Other | 84 | 88 | ||
Total Current Assets | 473 | 492 | ||
Property and Equipment, Net | 892 | 848 | ||
Goodwill | 0 | 0 | ||
Trade Names and Other Intangible Assets, Net | 0 | 0 | ||
Net Investments in and Advances to/from Consolidated Affiliates | 1,405 | 1,015 | ||
Other Assets | 693 | 680 | ||
Total Assets | 3,463 | 3,035 | ||
Current Liabilities: | ||||
Accounts Payable | 313 | 278 | ||
Accrued Expenses and Other | 322 | 283 | ||
Current Portion of Long-term Debt | 0 | |||
Income Taxes | -13 | 50 | ||
Total Current Liabilities | 622 | 611 | ||
Deferred Income Taxes | 297 | 241 | ||
Long-term Debt | 0 | 0 | ||
Other Long-term Liabilities | 224 | 201 | ||
Total Equity (Deficit) | 2,320 | 1,982 | ||
Total Liabilities and Equity (Deficit) | 3,463 | 3,035 | ||
Eliminations | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 0 | 0 | 0 | 0 |
Accounts Receivable, Net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Deferred Income Taxes | 0 | 0 | ||
Other | 0 | 0 | ||
Total Current Assets | 0 | 0 | ||
Property and Equipment, Net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Trade Names and Other Intangible Assets, Net | 0 | 0 | ||
Net Investments in and Advances to/from Consolidated Affiliates | -20,043 | -19,541 | ||
Other Assets | -610 | -611 | ||
Total Assets | -20,653 | -20,152 | ||
Current Liabilities: | ||||
Accounts Payable | 0 | 0 | ||
Accrued Expenses and Other | 0 | 0 | ||
Current Portion of Long-term Debt | 0 | |||
Income Taxes | 0 | 0 | ||
Total Current Liabilities | 0 | 0 | ||
Deferred Income Taxes | 0 | 0 | ||
Long-term Debt | -597 | -597 | ||
Other Long-term Liabilities | -13 | -15 | ||
Total Equity (Deficit) | -20,043 | -19,540 | ||
Total Liabilities and Equity (Deficit) | ($20,653) | ($20,152) |
Supplemental_Guarantor_Financi4
Supplemental Guarantor Financial Information (Condensed Consolidating Statements of Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Feb. 02, 2013 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||
Net Sales | $4,069 | $2,319 | $2,675 | $2,391 | $3,818 | $2,171 | $2,516 | $2,268 | $11,454 | $10,773 | $10,459 | |||
Costs of Goods Sold, Buying and Occupancy | -6,646 | -6,344 | -6,073 | |||||||||||
Gross Profit | 1,835 | 947 | 1,044 | 982 | 1,642 | 857 | 989 | 941 | 4,808 | 4,429 | 4,386 | |||
General, Administrative and Store Operating Expenses | -2,855 | -2,686 | -2,720 | |||||||||||
Impairment of Goodwill and Other Intangible Assets | -93 | 0 | 0 | -93 | ||||||||||
Operating Income (Loss) | 957 | 284 | 376 | 336 | 863 | 211 | 358 | 311 | 1,953 | 1,743 | [1] | 1,573 | [1] | |
Interest Expense | -324 | -314 | -316 | |||||||||||
Other Income (Loss) | 7 | 17 | 24 | |||||||||||
Income Before Income Taxes | 880 | 205 | 296 | 255 | 787 | 142 | 282 | 235 | 1,636 | 1,446 | 1,281 | |||
Provision (Benefit) for Income Taxes | 594 | 543 | 528 | |||||||||||
Equity in Earnings, Net of Tax | 0 | 0 | 0 | |||||||||||
Net Income (Loss) | 1,042 | 903 | 753 | |||||||||||
Reclassification of Cash Flow Hedges to Earnings | -60 | -50 | 5 | |||||||||||
Foreign Currency Translation | 21 | 40 | -2 | |||||||||||
Unrealized Gain on Cash Flow Hedges | 34 | 46 | 1 | |||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | -5 | 36 | 4 | |||||||||||
Total Comprehensive Income | 1,037 | 939 | 757 | |||||||||||
L Brands, Inc. [Member] | ||||||||||||||
Net Sales | 0 | 0 | 0 | |||||||||||
Costs of Goods Sold, Buying and Occupancy | 0 | 0 | 0 | |||||||||||
Gross Profit | 0 | 0 | 0 | |||||||||||
General, Administrative and Store Operating Expenses | -6 | -5 | -5 | |||||||||||
Impairment of Goodwill and Other Intangible Assets | 0 | |||||||||||||
Operating Income (Loss) | -6 | -5 | -5 | |||||||||||
Interest Expense | -324 | -314 | -316 | |||||||||||
Other Income (Loss) | 1 | 0 | 0 | |||||||||||
Income Before Income Taxes | -329 | -319 | -321 | |||||||||||
Provision (Benefit) for Income Taxes | -3 | 0 | 0 | |||||||||||
Equity in Earnings, Net of Tax | 1,368 | 1,222 | 1,074 | |||||||||||
Net Income (Loss) | 1,042 | 903 | 753 | |||||||||||
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 | 2 | |||||||||||
Foreign Currency Translation | 0 | 0 | 0 | |||||||||||
Unrealized Gain on Cash Flow Hedges | 0 | 0 | 0 | |||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 2 | |||||||||||
Total Comprehensive Income | 1,042 | 903 | 755 | |||||||||||
Guarantor Subsidiaries | ||||||||||||||
Net Sales | 10,711 | 10,047 | 9,717 | |||||||||||
Costs of Goods Sold, Buying and Occupancy | -6,449 | -6,096 | -5,649 | |||||||||||
Gross Profit | 4,262 | 3,951 | 4,068 | |||||||||||
General, Administrative and Store Operating Expenses | -2,538 | -2,403 | -2,435 | |||||||||||
Impairment of Goodwill and Other Intangible Assets | 0 | |||||||||||||
Operating Income (Loss) | 1,724 | 1,548 | 1,633 | |||||||||||
Interest Expense | -35 | -28 | -22 | |||||||||||
Other Income (Loss) | 0 | 0 | 1 | |||||||||||
Income Before Income Taxes | 1,689 | 1,520 | 1,612 | |||||||||||
Provision (Benefit) for Income Taxes | 385 | 305 | 359 | |||||||||||
Equity in Earnings, Net of Tax | 46 | 118 | -171 | |||||||||||
Net Income (Loss) | 1,350 | 1,333 | 1,082 | |||||||||||
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 | 0 | |||||||||||
Foreign Currency Translation | 0 | 0 | 0 | |||||||||||
Unrealized Gain on Cash Flow Hedges | 0 | 0 | 0 | |||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | |||||||||||
Total Comprehensive Income | 1,350 | 1,333 | 1,082 | |||||||||||
Non-Guarantor Subsidiaries | ||||||||||||||
Net Sales | 3,343 | 3,190 | 2,738 | |||||||||||
Costs of Goods Sold, Buying and Occupancy | -2,611 | -2,598 | -2,324 | |||||||||||
Gross Profit | 732 | 592 | 414 | |||||||||||
General, Administrative and Store Operating Expenses | -446 | -394 | -373 | |||||||||||
Impairment of Goodwill and Other Intangible Assets | -93 | |||||||||||||
Operating Income (Loss) | 286 | 198 | -52 | |||||||||||
Interest Expense | -9 | -11 | -10 | |||||||||||
Other Income (Loss) | 6 | 17 | 23 | |||||||||||
Income Before Income Taxes | 283 | 204 | -39 | |||||||||||
Provision (Benefit) for Income Taxes | 212 | 238 | 169 | |||||||||||
Equity in Earnings, Net of Tax | 316 | 462 | 441 | |||||||||||
Net Income (Loss) | 387 | 428 | 233 | |||||||||||
Reclassification of Cash Flow Hedges to Earnings | -60 | -50 | 3 | |||||||||||
Foreign Currency Translation | 21 | 40 | -2 | |||||||||||
Unrealized Gain on Cash Flow Hedges | 34 | 46 | 1 | |||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | -5 | 36 | 2 | |||||||||||
Total Comprehensive Income | 382 | 464 | 235 | |||||||||||
Eliminations | ||||||||||||||
Net Sales | -2,600 | -2,464 | -1,996 | |||||||||||
Costs of Goods Sold, Buying and Occupancy | 2,414 | 2,350 | 1,900 | |||||||||||
Gross Profit | -186 | -114 | -96 | |||||||||||
General, Administrative and Store Operating Expenses | 135 | 116 | 93 | |||||||||||
Impairment of Goodwill and Other Intangible Assets | 0 | |||||||||||||
Operating Income (Loss) | -51 | 2 | -3 | |||||||||||
Interest Expense | 44 | 39 | 32 | |||||||||||
Other Income (Loss) | 0 | 0 | 0 | |||||||||||
Income Before Income Taxes | -7 | 41 | 29 | |||||||||||
Provision (Benefit) for Income Taxes | 0 | 0 | 0 | |||||||||||
Equity in Earnings, Net of Tax | -1,730 | -1,802 | -1,344 | |||||||||||
Net Income (Loss) | -1,737 | -1,761 | -1,315 | |||||||||||
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 | 0 | |||||||||||
Foreign Currency Translation | 0 | 0 | 0 | |||||||||||
Unrealized Gain on Cash Flow Hedges | 0 | 0 | 0 | |||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | |||||||||||
Total Comprehensive Income | ($1,737) | ($1,761) | ($1,315) | |||||||||||
[1] | Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. |
Supplemental_Guarantor_Financi5
Supplemental Guarantor Financial Information (Condensed Consolidating Statement of Cash Flows) (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Net Cash Provided by (Used for) Operating Activities | $1,786,000,000 | $1,248,000,000 | $1,351,000,000 |
Investing Activities | |||
Capital Expenditures | -715,000,000 | -691,000,000 | -588,000,000 |
Proceeds from Sales of Express Common Stock | 13,000,000 | ||
Net Investments in Consolidated Affiliates | 0 | ||
Other Investing Activities | 16,000,000 | -10,000,000 | 22,000,000 |
Net Cash Provided by (Used for) Investing Activities | -699,000,000 | -655,000,000 | -531,000,000 |
Financing Activities | |||
Proceeds from Long-term Debt, Net of Issuance Costs | 0 | 495,000,000 | 985,000,000 |
Borrowings from Revolving Facility | 5,000,000 | 290,000,000 | 0 |
Repayments on Revolving Facility | -5,000,000 | -290,000,000 | 0 |
Payments of Financing Costs | -5,000,000 | 0 | 0 |
Payments of Long-term Debt | -213,000,000 | 0 | -57,000,000 |
Repurchase of Common Stock | -87,000,000 | -60,000,000 | -629,000,000 |
Dividends Paid | -691,000,000 | -349,000,000 | -1,449,000,000 |
Excess Tax Benefits from Share-based Compensation | 43,000,000 | 36,000,000 | 116,000,000 |
Net Financing Activities and Advances to/from Consolidated Affiliates | 0 | 0 | 0 |
Proceeds From Exercise of Stock Options and Other | 34,000,000 | 32,000,000 | 52,000,000 |
Net Cash Provided by (Used for) Financing Activities | -919,000,000 | 154,000,000 | -982,000,000 |
Effects of Exchange Rate Changes on Cash | -6,000,000 | -1,000,000 | 0 |
Net Increase (Decrease) in Cash and Cash Equivalents | 162,000,000 | 746,000,000 | -162,000,000 |
Cash and Cash Equivalents, Beginning of Year | 1,519,000,000 | 773,000,000 | 935,000,000 |
Cash and Cash Equivalents, End of Year | 1,681,000,000 | 1,519,000,000 | 773,000,000 |
Third Party Sourcing Business [Member] | |||
Investing Activities | |||
Return of Capital | 0 | 46,000,000 | 22,000,000 |
Easton Investment [Member] | |||
Investing Activities | |||
Return of Capital | 0 | 0 | 13,000,000 |
L Brands, Inc. [Member] | |||
Net Cash Provided by (Used for) Operating Activities | -333,000,000 | -302,000,000 | -361,000,000 |
Investing Activities | |||
Capital Expenditures | 0 | 0 | 0 |
Proceeds from Sales of Express Common Stock | 0 | ||
Net Investments in Consolidated Affiliates | 0 | ||
Other Investing Activities | 0 | 0 | 0 |
Net Cash Provided by (Used for) Investing Activities | 0 | 0 | 0 |
Financing Activities | |||
Proceeds from Long-term Debt, Net of Issuance Costs | 495,000,000 | 985,000,000 | |
Borrowings from Revolving Facility | 0 | 290,000,000 | |
Repayments on Revolving Facility | 0 | -290,000,000 | |
Payments of Financing Costs | -5,000,000 | ||
Payments of Long-term Debt | -213,000,000 | -57,000,000 | |
Repurchase of Common Stock | -87,000,000 | -60,000,000 | -629,000,000 |
Dividends Paid | -691,000,000 | -349,000,000 | -1,449,000,000 |
Excess Tax Benefits from Share-based Compensation | 0 | 0 | 0 |
Net Financing Activities and Advances to/from Consolidated Affiliates | 1,295,000,000 | 184,000,000 | 1,459,000,000 |
Proceeds From Exercise of Stock Options and Other | 34,000,000 | 32,000,000 | 52,000,000 |
Net Cash Provided by (Used for) Financing Activities | 333,000,000 | 302,000,000 | 361,000,000 |
Effects of Exchange Rate Changes on Cash | 0 | 0 | 0 |
Net Increase (Decrease) in Cash and Cash Equivalents | 0 | 0 | 0 |
Cash and Cash Equivalents, Beginning of Year | 0 | 0 | 0 |
Cash and Cash Equivalents, End of Year | 0 | 0 | 0 |
L Brands, Inc. [Member] | Third Party Sourcing Business [Member] | |||
Investing Activities | |||
Return of Capital | 0 | 0 | |
Guarantor Subsidiaries | |||
Net Cash Provided by (Used for) Operating Activities | 1,677,000,000 | 1,323,000,000 | 1,389,000,000 |
Investing Activities | |||
Capital Expenditures | -486,000,000 | -475,000,000 | -344,000,000 |
Proceeds from Sales of Express Common Stock | 0 | ||
Net Investments in Consolidated Affiliates | 36,000,000 | ||
Other Investing Activities | -1,000,000 | 0 | 17,000,000 |
Net Cash Provided by (Used for) Investing Activities | -487,000,000 | -475,000,000 | -291,000,000 |
Financing Activities | |||
Proceeds from Long-term Debt, Net of Issuance Costs | 0 | 0 | |
Borrowings from Revolving Facility | 0 | 0 | |
Repayments on Revolving Facility | 0 | 0 | |
Payments of Long-term Debt | 0 | 0 | |
Financing Costs | 0 | ||
Repurchase of Common Stock | 0 | 0 | 0 |
Dividends Paid | 0 | 0 | 0 |
Excess Tax Benefits from Share-based Compensation | 37,000,000 | 31,000,000 | 95,000,000 |
Net Financing Activities and Advances to/from Consolidated Affiliates | -1,118,000,000 | 57,000,000 | -1,147,000,000 |
Proceeds From Exercise of Stock Options and Other | 0 | 0 | 0 |
Net Cash Provided by (Used for) Financing Activities | -1,081,000,000 | 88,000,000 | -1,052,000,000 |
Effects of Exchange Rate Changes on Cash | 0 | 0 | 0 |
Net Increase (Decrease) in Cash and Cash Equivalents | 109,000,000 | 936,000,000 | 46,000,000 |
Cash and Cash Equivalents, Beginning of Year | 1,353,000,000 | 417,000,000 | 371,000,000 |
Cash and Cash Equivalents, End of Year | 1,462,000,000 | 1,353,000,000 | 417,000,000 |
Guarantor Subsidiaries | Third Party Sourcing Business [Member] | |||
Investing Activities | |||
Return of Capital | 0 | 0 | |
Non-Guarantor Subsidiaries | |||
Net Cash Provided by (Used for) Operating Activities | 442,000,000 | 227,000,000 | 323,000,000 |
Investing Activities | |||
Capital Expenditures | -229,000,000 | -216,000,000 | -244,000,000 |
Proceeds from Sales of Express Common Stock | 13,000,000 | ||
Net Investments in Consolidated Affiliates | 0 | ||
Other Investing Activities | 17,000,000 | -10,000,000 | 5,000,000 |
Net Cash Provided by (Used for) Investing Activities | -212,000,000 | -180,000,000 | -204,000,000 |
Financing Activities | |||
Proceeds from Long-term Debt, Net of Issuance Costs | 0 | 0 | |
Borrowings from Revolving Facility | 5,000,000 | 0 | |
Repayments on Revolving Facility | -5,000,000 | 0 | |
Payments of Long-term Debt | 0 | 0 | |
Financing Costs | 0 | ||
Repurchase of Common Stock | 0 | 0 | 0 |
Dividends Paid | 0 | 0 | 0 |
Excess Tax Benefits from Share-based Compensation | 6,000,000 | 5,000,000 | 21,000,000 |
Net Financing Activities and Advances to/from Consolidated Affiliates | -177,000,000 | -241,000,000 | -348,000,000 |
Proceeds From Exercise of Stock Options and Other | 0 | 0 | 0 |
Net Cash Provided by (Used for) Financing Activities | -171,000,000 | -236,000,000 | -327,000,000 |
Effects of Exchange Rate Changes on Cash | -6,000,000 | -1,000,000 | 0 |
Net Increase (Decrease) in Cash and Cash Equivalents | 53,000,000 | -190,000,000 | -208,000,000 |
Cash and Cash Equivalents, Beginning of Year | 166,000,000 | 356,000,000 | 564,000,000 |
Cash and Cash Equivalents, End of Year | 219,000,000 | 166,000,000 | 356,000,000 |
Non-Guarantor Subsidiaries | Third Party Sourcing Business [Member] | |||
Investing Activities | |||
Return of Capital | 46,000,000 | 22,000,000 | |
Eliminations | |||
Net Cash Provided by (Used for) Operating Activities | 0 | 0 | 0 |
Investing Activities | |||
Capital Expenditures | 0 | 0 | 0 |
Proceeds from Sales of Express Common Stock | 0 | ||
Net Investments in Consolidated Affiliates | -36,000,000 | ||
Other Investing Activities | 0 | 0 | 0 |
Net Cash Provided by (Used for) Investing Activities | 0 | 0 | -36,000,000 |
Financing Activities | |||
Proceeds from Long-term Debt, Net of Issuance Costs | 0 | 0 | |
Borrowings from Revolving Facility | 0 | 0 | |
Repayments on Revolving Facility | 0 | 0 | |
Payments of Long-term Debt | 0 | 0 | |
Financing Costs | 0 | ||
Repurchase of Common Stock | 0 | 0 | 0 |
Dividends Paid | 0 | 0 | 0 |
Excess Tax Benefits from Share-based Compensation | 0 | 0 | 0 |
Net Financing Activities and Advances to/from Consolidated Affiliates | 0 | 0 | 36,000,000 |
Proceeds From Exercise of Stock Options and Other | 0 | 0 | 0 |
Net Cash Provided by (Used for) Financing Activities | 0 | 0 | 36,000,000 |
Effects of Exchange Rate Changes on Cash | 0 | 0 | 0 |
Net Increase (Decrease) in Cash and Cash Equivalents | 0 | 0 | 0 |
Cash and Cash Equivalents, Beginning of Year | 0 | 0 | 0 |
Cash and Cash Equivalents, End of Year | 0 | 0 | 0 |
Eliminations | Third Party Sourcing Business [Member] | |||
Investing Activities | |||
Return of Capital | $0 | $0 |
Uncategorized_Items
Uncategorized Items | |
[us-gaap_CommonStockSharesOutstanding] | 295,000,000 |