Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Aug. 01, 2015 | Aug. 28, 2015 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Aug. 1, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | LB | |
Entity Registrant Name | L Brands, Inc. | |
Entity Central Index Key | 701,985 | |
Current Fiscal Year End Date | --01-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 290,378,683 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Income Statement [Abstract] | ||||
Net Sales | $ 2,765 | $ 2,675 | $ 5,277 | $ 5,066 |
Costs of Goods Sold, Buying and Occupancy | (1,651) | (1,631) | (3,107) | (3,040) |
Gross Profit | 1,114 | 1,044 | 2,170 | 2,026 |
General, Administrative and Store Operating Expenses | (711) | (668) | (1,395) | (1,314) |
Operating Income | 403 | 376 | 775 | 712 |
Interest Expense | (78) | (82) | (158) | (166) |
Other Income (Loss) | (2) | 2 | 76 | 5 |
Income Before Income Taxes | 323 | 296 | 693 | 551 |
Provision for Income Taxes | 121 | 108 | 240 | 206 |
Net Income | $ 202 | $ 188 | $ 453 | $ 345 |
Net Income Per Basic Share | $ 0.69 | $ 0.65 | $ 1.55 | $ 1.18 |
Net Income Per Diluted Share | 0.68 | 0.63 | 1.52 | 1.16 |
Dividends Per Share | $ 0.50 | $ 0.34 | $ 3 | $ 1.68 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Net Income | $ 202 | $ 188 | $ 453 | $ 345 |
Other Comprehensive Income (Loss), Net of Tax: | ||||
Reclassification of Cash Flow Hedges to Earnings | (27) | 2 | (10) | 8 |
Foreign Currency Translation | 22 | (1) | 12 | (3) |
Unrealized Gain (Loss) on Cash Flow Hedges | 14 | (5) | 4 | (13) |
Total Other Comprehensive Income (Loss), Net of Tax | 9 | (4) | 6 | (8) |
Total Comprehensive Income | $ 211 | $ 184 | $ 459 | $ 337 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 |
Current Assets: | |||
Cash and Cash Equivalents | $ 780 | $ 1,681 | $ 1,147 |
Marketable Securities, Current | 50 | 0 | 0 |
Accounts Receivable, Net | 257 | 252 | 233 |
Inventories | 1,106 | 1,036 | 1,075 |
Deferred Income Taxes | 35 | 33 | 27 |
Other | 270 | 230 | 217 |
Total Current Assets | 2,498 | 3,232 | 2,699 |
Property and Equipment, Net | 2,275 | 2,277 | 2,164 |
Goodwill | 1,318 | 1,318 | 1,318 |
Trade Names and Other Intangible Assets, Net | 411 | 411 | 411 |
Other Assets | 302 | 306 | 278 |
Total Assets | 6,804 | 7,544 | 6,870 |
Current Liabilities: | |||
Accounts Payable | 725 | 613 | 622 |
Accrued Expenses and Other | 840 | 900 | 743 |
Current Portion of Long-term Debt | 0 | 0 | 214 |
Accrued Income Taxes, Current | 5 | 166 | 1 |
Total Current Liabilities | 1,570 | 1,679 | 1,580 |
Deferred Income Taxes | 273 | 261 | 229 |
Long-term Debt | 4,759 | 4,765 | 4,758 |
Other Long-term Liabilities | 849 | 820 | 806 |
Shareholders’ Equity (Deficit): | |||
Preferred Stock - $1.00 par value; 10 shares authorized; none issued | 0 | 0 | 0 |
Common Stock - $0.50 par value; 1,000 shares authorized; 312, 310 and 309 shares issued; 291, 292 and 292 shares outstanding, respectively | 156 | 155 | 155 |
Paid-in Capital | 483 | 427 | 365 |
Accumulated Other Comprehensive Income | 41 | 35 | 32 |
Retained Earnings (Accumulated Deficit) | (194) | 233 | (263) |
Less: Treasury Stock, at Average Cost; 21, 18 and 17 shares, respectively | (1,134) | (832) | (793) |
Total L Brands, Inc. Shareholders’ Equity (Deficit) | (648) | 18 | (504) |
Noncontrolling Interest | 1 | 1 | 1 |
Total Equity (Deficit) | (647) | 19 | (503) |
Total Liabilities and Equity (Deficit) | $ 6,804 | $ 7,544 | $ 6,870 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 |
Preferred Stock, Par Value | $ 1 | $ 1 | $ 1 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 | 0 |
Common Stock, Par Value | $ 0.50 | $ 0.50 | $ 0.50 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Issued | 312,000,000 | 310,000,000 | 309,000,000 |
Common Stock, Shares, Outstanding | 291,000,000 | 292,000,000 | 292,000,000 |
Treasury Stock, Shares | 21,000,000 | 18,000,000 | 17,000,000 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Aug. 01, 2015 | Aug. 02, 2014 | |
Operating Activities: | ||
Net Income | $ 453 | $ 345 |
Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: | ||
Depreciation and Amortization of Long-lived Assets | 224 | 219 |
Amortization of Landlord Allowances | (20) | (20) |
Deferred Income Taxes | 7 | 19 |
Share-based Compensation Expense | 50 | 45 |
Excess Tax Benefits from Share-based Compensation | (61) | (37) |
Equity Method Investment, Realized Gain (Loss) on Disposal | (78) | 0 |
Gain (Loss) on Sale of Assets and Asset Impairment Charges | (3) | 0 |
Changes in Assets and Liabilities: | ||
Accounts Receivable | (6) | 11 |
Inventories | (71) | 91 |
Accounts Payable, Accrued Expenses and Other | (36) | (62) |
Income Taxes Payable | (151) | (187) |
Other Assets and Liabilities | 61 | 22 |
Net Cash Provided by Operating Activities | 375 | 446 |
Investing Activities: | ||
Capital Expenditures | (358) | (349) |
Proceeds from Sale of Other Assets, Investing Activities | 135 | 0 |
Proceeds from Sale of Equity Method Investments | 85 | 0 |
Payments to Acquire Marketable Securities | (50) | 0 |
Other Investing Activities | 1 | 15 |
Net Cash Provided by (Used for) Investing Activities | (187) | (334) |
Proceeds from Long-term Lines of Credit | 0 | 5 |
Repayments of Long-term Lines of Credit | 0 | (5) |
Financing Activities: | ||
Repurchase of Common Stock | (295) | (48) |
Dividends Paid | (880) | (491) |
Excess Tax Benefits from Share-based Compensation | 61 | 37 |
Proceeds from Exercise of Stock Options and Other | 23 | 22 |
Payments of Financing Costs | 0 | (5) |
Net Cash Provided by (Used for) Financing Activities | (1,091) | (485) |
Effects of Exchange Rate Changes on Cash and Cash Equivalents | 2 | 1 |
Net Increase (Decrease) in Cash and Cash Equivalents | (901) | (372) |
Cash and Cash Equivalents, Beginning of Period | 1,681 | 1,519 |
Cash and Cash Equivalents, End of Period | $ 780 | $ 1,147 |
Description Of Business And Bas
Description Of Business And Basis Of Presentation | 6 Months Ended |
Aug. 01, 2015 | |
Description Of Business And Basis Of Presentation [Abstract] | |
Description Of Business And Basis Of Presentation | Description of Business and Basis of Presentation 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 United States (“U.S.”), Canada and the United Kingdom ("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, “ second quarter of 2015 ” and “ second quarter of 2014 ” refer to the thirteen week periods ending August 1, 2015 and August 2, 2014 , respectively. " Year-to-date 2015 " and " year-to-date 2014 " refer to the twenty-six week periods ending August 1, 2015 and August 2, 2014 . 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 (Loss) on the Consolidated Statements of Income. The Company’s equity investments are required to be tested for impairment when it is determined there may be an other-than-temporary loss in value. Interim Financial Statements The Consolidated Financial Statements as of and for the periods ended August 1, 2015 and August 2, 2014 are unaudited and are presented pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained in the Company’s 2014 Annual Report on Form 10-K. In the opinion of management, the accompanying Consolidated Financial Statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods. Seasonality of Business Due to seasonal variations in the retail industry, the results of operations for any interim period are not necessarily indicative of the results expected for the full fiscal year. 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. 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 Pronouncement (N
New Accounting Pronouncement (Notes) | 6 Months Ended |
Aug. 01, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | New Accounting Pronouncements Revenue Recognition from Contracts with Customers In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 2018, with early adoption as of fiscal 2017 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 Statements of Income and Comprehensive Income, Balance Sheets and Statements of Cash Flows. Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. This guidance requires companies to recognize debt issuance costs related to recognized debt liabilities in the balance sheet as a direct deduction from the carrying amount of those debt liabilities, consistent with debt discounts. This guidance will be effective beginning in fiscal 2016, and early adoption is permitted. This standard requires retrospective adoption. The Company is finalizing its evaluation of this ASU, including timing of adoption, but expects to record a decrease to Other Assets and Long-term Debt of approximately $35 million upon adoption. |
Earnings Per Share And Sharehol
Earnings Per Share And Shareholders' Equity | 6 Months Ended |
Aug. 01, 2015 | |
Earnings Per Share And Shareholders' Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Earnings Per Share and Shareholders’ Equity (Deficit) 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 the second quarter and year-to-date 2015 and 2014 : Second Quarter Year-to-Date 2015 2014 2015 2014 (in millions) Weighted-average Common Shares: Issued Shares 312 309 312 309 Treasury Shares (21 ) (17 ) (20 ) (17 ) Basic Shares 291 292 292 292 Effect of Dilutive Options and Restricted Stock 6 5 6 5 Diluted Shares 297 297 298 297 Anti-dilutive Options and Awards (a) 1 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. 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 year-to-date 2015 and 2014 : Amount Authorized Shares Repurchased Amount Repurchased Average Stock Price of Shares Repurchased within Program Repurchase Program 2015 2014 2015 2014 (in millions) (in thousands) (in millions) June 2015 $ 250 624 NA $ 52 NA $ 83.75 February 2015 $ 250 2,788 NA $ 250 NA $ 89.45 November 2012 $ 250 NA 826 NA $ 45 $ 48.52 In June 2015 , the Company's Board of Directors approved a new $250 million share repurchase program, which included the $0.6 million remaining under the February 2015 repurchase program. In February 2015 , the Company's Board of Directors approved a $250 million share repurchase program, which included the $91 million remaining under the November 2012 repurchase program. The June 2015 repurchase program had $198 million remaining as of August 1, 2015 . Subsequent to August 1, 2015 , the Company repurchased an additional 0.7 million shares of common stock for $61 million under this program. There were $7 million of share repurchases reflected in Accounts Payable on the August 1, 2015 Consolidated Balance Sheet. There were no share repurchases reflected in Accounts Payable as of January 31, 2015 and August 2, 2014 . Dividends Under the authority and declaration of the Board of Directors, the Company paid the following dividends during year-to-date 2015 and 2014 : Ordinary Dividends Special Dividends Total Dividends Total Paid (per share) (in millions) 2015 Second Quarter $ 0.50 $ — $ 0.50 $ 146 First Quarter 0.50 2.00 2.50 734 2015 Total $ 1.00 $ 2.00 $ 3.00 $ 880 2014 Second Quarter $ 0.34 $ — $ 0.34 $ 99 First Quarter 0.34 1.00 1.34 392 2014 Total $ 0.68 $ 1.00 $ 1.68 $ 491 |
Inventories
Inventories | 6 Months Ended |
Aug. 01, 2015 | |
Inventory, Net [Abstract] | |
Inventories | Inventories The following table provides details of inventories as of August 1, 2015 , January 31, 2015 and August 2, 2014 : August 1, January 31, 2015 August 2, (in millions) Finished Goods Merchandise $ 963 $ 942 $ 967 Raw Materials and Merchandise Components 143 94 108 Total Inventories $ 1,106 $ 1,036 $ 1,075 Inventories are principally valued at the lower of cost, as determined by the weighted-average cost method, or market. |
Property And Equipment, Net
Property And Equipment, Net | 6 Months Ended |
Aug. 01, 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 August 1, 2015 , January 31, 2015 and August 2, 2014 : August 1, January 31, August 2, (in millions) Property and Equipment, at Cost $ 5,565 $ 5,480 $ 5,304 Accumulated Depreciation and Amortization (3,290 ) (3,203 ) (3,140 ) Property and Equipment, Net $ 2,275 $ 2,277 $ 2,164 Depreciation expense was $113 million and $109 million for the second quarter of 2015 and 2014 , respectively. Depreciation expense was $224 million and $219 million for year-to-date 2015 and 2014 , respectively. In July 2015 , the Company completed sale and leaseback transactions under noncancellable operating leases of certain assets with a carrying value of $118 million . The proceeds of $118 million from the sale of these assets are included in Proceeds from Sale of Assets within the Investing Activities section of the 2015 Consolidated Statement of Cash Flows. For additional information, see Note 12 , "Commitments and Contingencies." Subsequent to August 1, 2015, the Company completed a sale and leaseback transaction under a noncancellable operating lease of an additional asset with a carrying value of $41 million . The proceeds from the sale of $42 million will be recognized in the third quarter of 2015. For additional information, see Note 12 , "Commitments and Contingencies." |
Equity Investments And Other
Equity Investments And Other | 6 Months Ended |
Aug. 01, 2015 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |
Equity Investments And Other | Equity Investments and Other Third-party Apparel Sourcing Business In the first quarter of 2015, the Company divested its remaining ownership interest in its third-party apparel sourcing business to Sycamore Partners. The Company received cash proceeds of $85 million and recognized a pre-tax gain of $78 million (after-tax gain of $69 million ). The gain is included in Other Income (Loss) in the year-to-date 2015 Consolidated Statement of Income and the cash proceeds are included in Proceeds from Divestiture of the Third-party Apparel Sourcing Business within the Investing Activities section of the 2015 Consolidated Statement of Cash Flows. The Company's carrying value for this equity method investment, $8 million as of January 31, 2015 and $5 million as of August 2, 2014 , is included in Other Assets on the January 31, 2015 and August 2, 2014 Consolidated Balance Sheets. The Company's share of net income (loss) from this investment was included in Other Income (Loss) on the second quarter and year-to-date 2014 Consolidated Statements of Income. Easton Investments 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 totaled $94 million as of August 1, 2015 , $101 million as of January 31, 2015 and $100 million as of August 2, 2014 and are recorded in Other Assets on the Consolidated Balance Sheets. 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. In July 2015, ETC entered into an interest rate swap with cash settlement due in February 2017. The Company provided a guarantee of payment to the counterparty for amounts owed by ETC, if any, upon settlement if ETC is unable to pay. The Company’s estimated maximum potential loss from this guarantee is $63 million , which was determined primarily based upon estimated fluctuations in future interest rates. The estimated fair value of this guarantee obligation is primarily impacted by the Company's assessment of ETC's ability to pay in addition to estimated fluctuations in future interest rates. The estimated fair value of this guarantee obligation is not significant as of August 1, 2015 . 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 Accounting Standards Codification ("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 $32 million as of August 1, 2015 , $34 million as of January 31, 2015 and $35 million as of August 2, 2014 . The Company’s estimated maximum potential loss from its involvement with EG totaled $42 million as of August 1, 2015 . This includes the Company’s equity investment of $32 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 as of August 1, 2015 . |
Income Taxes
Income Taxes | 6 Months Ended |
Aug. 01, 2015 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes is based on the current estimate of the annual effective tax rate and is adjusted as necessary for quarterly events. The Company’s quarterly effective tax rate does not reflect a benefit associated with losses related to certain foreign subsidiaries. For the second quarter of 2015 , the Company’s effective tax rate was 37.4% compared to 36.4% in the second quarter of 2014 . The second quarter 2015 rate was lower than the Company's combined estimated federal and state statutory rate primarily due to foreign earnings taxed at a rate lower than our combined estimated federal and state rate. The second quarter 2014 rate was lower than the Company’s combined estimated federal and state statutory rate primarily due to the resolution of certain tax matters. For year-to-date 2015 , the Company’s effective tax rate was 34.6% compared to 37.4% year-to-date of 2014 . The year-to-date 2015 rate was lower than the Company's combined estimated federal and state statutory rate primarily due to the foreign portion of the divestiture of our third-party apparel sourcing business. The year-to-date 2014 rate was lower than the Company’s combined estimated federal and state statutory rate primarily due to the resolution of certain tax matters. As of August 1, 2015 , any unrecognized deferred income tax liability resulting from the Company's undistributed foreign earnings from non-U.S. subsidiaries 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 on these undistributed foreign earnings is not practicable because such liability, if any, is dependent on circumstances existing if and when remittance occurs. Income taxes paid were approximately $182 million and $172 million for the second quarter of 2015 and 2014 , respectively. Income taxes paid were approximately $370 million and $369 million for year-to-date 2015 and 2014 , respectively. |
Long-term Debt
Long-term Debt | 6 Months Ended |
Aug. 01, 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 August 1, 2015 , January 31, 2015 and August 2, 2014 : August 1, January 31, 2015 August 2, (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 $ 1,000 $1 billion, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”) 1,000 1,000 1,000 $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) 500 500 500 $500 million, 8.50% Fixed Interest Rate Notes due June 2019, Less Unamortized Discount (“2019 Notes”)(a) 499 501 494 $400 million, 7.00% Fixed Interest Rate Notes due May 2020 (“2020 Notes”) 400 400 400 Total Senior Unsecured Debt with Subsidiary Guarantee $ 3,399 $ 3,401 $ 3,394 Senior Unsecured Debt $700 million, 6.90% Fixed Interest Rate Notes due July 2017, Less Unamortized Discount (“2017 Notes”)(b) $ 711 $ 715 $ 715 $350 million, 6.95% Fixed Interest Rate Debentures due March 2033, Less Unamortized Discount (“2033 Notes”) 350 350 350 $300 million, 7.60% Fixed Interest Rate Notes due July 2037, Less Unamortized Discount (“2037 Notes”) 299 299 299 5.25% Fixed Interest Rate Notes due November 2014, Less Unamortized Discount (“2014 Notes”)(c) — — 214 Total Senior Unsecured Debt $ 1,360 $ 1,364 $ 1,578 Total $ 4,759 $ 4,765 $ 4,972 Current Portion of Long-term Debt — — (214 ) Total Long-term Debt, Net of Current Portion $ 4,759 $ 4,765 $ 4,758 ________________ (a) The balances include a fair value interest rate hedge adjustment which increased the debt balance by $5 million as of August 1, 2015 , $8 million as of January 31, 2015 and $2 million as of August 2, 2014 . (b) The balances include a fair value interest rate hedge adjustment which increased the debt balance by $11 million as of August 1, 2015 , $15 million as of January 31, 2015 and $16 million as of August 2, 2014 . (c) The outstanding principal balance was $213 million as of August 2, 2014 . The total balance includes a fair value interest rate hedge adjustment which increased the debt balance by $1 million as of August 2, 2014 . 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 The Company maintains a secured revolving credit facility (“Revolving Facility”). The Revolving Facility has aggregate availability of $1 billion and expires July 18, 2019. The fees related to committed and unutilized amounts 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 London Interbank Offered Rate (“LIBOR”) plus 1.50% per annum. The interest rate on outstanding Canadian dollar borrowings is Canadian Dollar Offered Rate ("CDOR") plus 1.50% per annum. The Revolving Facility contains 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 August 1, 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 . As of August 1, 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 August 1, 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 9 , “Derivative Instruments.” |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Aug. 01, 2015 | |
Summary of Derivative Instruments [Abstract] | |
Derivative Instruments | Derivative Instruments Foreign Exchange Risk The Company has entered into cross-currency swaps related to approximately CAD $270 million of intercompany loans. These 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. The swaps mitigate the exposure to fluctuations in the U.S. dollar-Canadian dollar exchange rate related to the Company's Canadian operations. The 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. 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. 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 August 1, 2015 , January 31, 2015 and August 2, 2014 : August 1, January 31, 2015 August 2, (in millions) Other Long-term Assets $ 25 $ 21 $ — Other Long-term Liabilities — — 26 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 the second quarter and year-to-date 2015 and 2014 : Second Quarter Year-to-Date Location 2015 2014 2015 2014 (in millions) Gain (Loss) Recognized in Other Comprehensive Income Other Comprehensive Income (Loss) $ 14 $ (5 ) $ 4 $ (13 ) (Gain) Loss Reclassified from Accumulated Other Comprehensive Income (Loss) into Other Income (Loss) (a) Other Income (Loss) (27 ) 2 (10 ) 8 ________________ (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 the past, the Company had entered into interest rate swap arrangements on the 2014 and 2017 Notes. In 2012, the Company 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 August 1, 2015 , January 31, 2015 and August 2, 2014 : August 1, January 31, August 2, (in millions) Other Assets $ 7 $ 12 $ 3 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Aug. 01, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table provides a summary of the carrying value and estimated fair value of long-term debt as of August 1, 2015 , January 31, 2015 and August 2, 2014 : August 1, January 31, August 2, (in millions) Carrying Value $ 4,759 $ 4,765 $ 4,972 Estimated Fair Value (a) 5,233 5,305 5,443 _______________ (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 authoritative guidance included in ASC Topic 820 , 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 following table provides a summary of assets and liabilities measured in the consolidated financial statements at fair value on a recurring basis as of August 1, 2015 , January 31, 2015 and August 2, 2014 : Level 1 Level 2 Level 3 Total (in millions) As of August 1, 2015 Assets: Cash and Cash Equivalents $ 780 $ — $ — $ 780 Marketable Securities 50 — — 50 Interest Rate Designated Fair Value Hedges — 7 — 7 Cross-currency Cash Flow Hedges — 25 — 25 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 August 2, 2014 Assets: Cash and Cash Equivalents $ 1,147 $ — $ — $ 1,147 Interest Rate Designated Fair Value Hedges — 3 — 3 Liabilities: Cross-currency Cash Flow Hedges — 26 — 26 Lease Guarantees — — 1 1 The Company's Level 1 fair value measurements use unadjusted quoted prices in active markets for identical assets. In March 2015, the Company invested in marketable securities which consist of U.S. Treasury Bills. These securities are classified as Level 1 fair value measurements as they are traded with sufficient frequency and volume to enable the Company to obtain pricing information on an ongoing basis. The marketable securities have an original maturity greater than 90 days but less than one year and are classified as available-for-sale. Available-for-sale securities are recorded at fair value, and unrealized holding gains and losses are recorded, net of tax, as a component of accumulated other comprehensive income. Unrealized holding gains were not significant as of August 1, 2015 . The Company’s Level 2 fair value measurements use 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 use income approach valuation techniques. The primary inputs to these techniques include the guaranteed lease payments, residual values, discount rates, as well as the Company’s assessment of the risk of default on guaranteed leases and the assessment of the risk of decline in residual value on the residual value guarantees. 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 the second quarter and year-to-date 2015 and 2014 : Second Quarter Year-to-Date 2015 2014 2015 2014 (in millions) Beginning Balance $ — $ 1 $ 1 $ 1 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 and the discount rate utilized. For additional information, see Note 12 , “Commitments and Contingencies.” |
Comprehensive Income
Comprehensive Income | 6 Months Ended |
Aug. 01, 2015 | |
Comprehensive Income | |
Comprehensive Income | Comprehensive Income The following table provides the rollforward of accumulated other comprehensive income for year-to-date 2015 : Foreign Currency Translation Cash Flow Hedges Accumulated Other Comprehensive Income (in millions) Balance as of January 31, 2015 $ 51 $ (16 ) $ 35 Other Comprehensive Income Before Reclassifications 12 4 16 Amounts Reclassified from Accumulated Other Comprehensive Income — (10 ) (10 ) Current-period Other Comprehensive Income (Loss) 12 (6 ) 6 Balance as of August 1, 2015 $ 63 $ (22 ) $ 41 The following table provides the rollforward of accumulated other comprehensive income for year-to-date 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 Before Reclassifications (3 ) (13 ) (16 ) Amounts Reclassified from Accumulated Other Comprehensive Income — 8 8 Current-period Other Comprehensive Loss (3 ) (5 ) (8 ) Balance as of August 2, 2014 $ 27 $ 5 $ 32 The components of accumulated other comprehensive income 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 the second quarter and year-to-date 2015 and 2014 : Details About Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Location on Consolidated Statement of Income Second Quarter Year-to-Date 2015 2014 2015 2014 (in millions) Cash Flow Hedges (Gain) Loss $ (27 ) $ 2 $ (10 ) $ 8 Other Income (Loss) — — — — Provision for Income Taxes $ (27 ) $ 2 $ (10 ) $ 8 Net Income |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Aug. 01, 2015 | |
Commitments and Contingencies Disclosure [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. Guarantees In connection with the disposition of certain businesses, the Company has remaining guarantees of approximately $18 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 accounting principles generally accepted in the United States of America ("GAAP") in effect at the time of these divestitures. The guaranteed lease payments related to Express, Limited Stores and New York & Company totaled $7 million as of August 1, 2015 , $11 million as of January 31, 2015 and $16 million as of August 2, 2014 . The estimated fair value of these guarantee obligations was $300 thousand as of August 1, 2015 and $1 million as of January 31, 2015 and August 2, 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 these divestitures. 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 August 1, 2015 , January 31, 2015 and August 2, 2014 . In connection with the Company's investment in ETC, the Company provided a guarantee of payment to an interest rate swap counterparty for amounts owed by ETC, if any, upon settlement in February 2017. The estimated fair value of this guarantee obligation is not significant as of August 1, 2015 . For additional information, see Note 6 , "Equity Investments and Other." 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. The estimated fair value of these guarantee obligations is not significant as of August 1, 2015 . For additional information, see Note 6 , "Equity Investments and Other." In 2015 , in connection with the sale and leaseback under noncancellable operating leases of certain assets, the Company provided residual value guarantees to the lessor if the leased assets cannot be sold for an amount in excess of a specified minimum value at the conclusion of the lease term. The leases expire in 2020, and the total amount of the guarantees is approximately $66 million . The estimated fair value of these guarantee obligations is not significant as of August 1, 2015 . Subsequent to August 1, 2015, the Company completed a sale and leaseback transaction of an additional asset under a non-cancellable operating lease. The Company provided a residual value guarantee of $29 million to the lessor if the leased asset cannot be sold for an amount in excess of a specified minimum value at the conclusion of the lease term. The fair value, if any, of the guarantee will be recognized in the third quarter of 2015. |
Retirement Benefits
Retirement Benefits | 6 Months Ended |
Aug. 01, 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 $14 million for the second quarter of 2015 and 2014 . Total expense recognized related to the qualified plan was $31 million for year-to-date 2015 and $30 million for year-to-date 2014 . 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. Total expense recognized related to the non-qualified plan was $6 million for the second quarter of 2015 and 2014 . Total expense recognized related to the non-qualified plan was $13 million for year-to-date 2015 and $12 million for year-to-date 2014 . |
Segment Information
Segment Information | 6 Months Ended |
Aug. 01, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has three reportable segments: Victoria’s Secret, Bath & Body Works and Victoria's Secret and Bath & Body Works International. The Victoria’s Secret segment sells women’s intimate and other apparel and 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 for the second quarter and year-to-date 2015 and 2014 : Victoria’s Secret Bath & Body Works Victoria’s Secret and Bath & Body Works International Other Total (in millions) 2015 Second Quarter: Net Sales $ 1,806 $ 748 $ 89 $ 122 $ 2,765 Operating Income (Loss) 298 138 20 (53 ) 403 Year-to-Date: Net Sales $ 3,490 $ 1,361 $ 181 $ 245 $ 5,277 Operating Income (Loss) 587 235 41 (88 ) 775 2014 Second Quarter: Net Sales $ 1,745 $ 704 $ 80 $ 146 $ 2,675 Operating Income (Loss) 293 115 17 (49 ) 376 Year-to-Date: Net Sales $ 3,349 $ 1,286 $ 151 $ 280 $ 5,066 Operating Income (Loss) 571 195 32 (86 ) 712 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. Certain of these sales are subject to the impact of fluctuations in foreign currency. The Company’s international sales across all segments totaled $313 million and $339 million for the second quarter of 2015 and 2014 , respectively. The Company’s international sales across all segments totaled $606 million and $634 million for year-to-date 2015 and 2014 , respectively. |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information Supplemental Guarantor Financial Information (Notes) | 6 Months Ended |
Aug. 01, 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 ("Guarantors"). 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 August 1, 2015 , January 31, 2015 and August 2, 2014 and the Condensed Consolidating Statements of Income, Comprehensive Income and Cash Flows for the periods ended August 1, 2015 and August 2, 2014 . In the fourth quarter 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 SHEETS (in millions) (Unaudited) August 1, 2015 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 453 $ 327 $ — $ 780 Marketable Securities — 50 — — 50 Accounts Receivable, Net 1 201 55 — 257 Inventories — 980 126 — 1,106 Deferred Income Taxes — 37 (2 ) — 35 Other 1 141 128 — 270 Total Current Assets 2 1,862 634 — 2,498 Property and Equipment, Net — 1,485 790 — 2,275 Goodwill — 1,318 — — 1,318 Trade Names and Other Intangible Assets, Net — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 3,979 15,589 1,642 (21,210 ) — Other Assets 179 40 695 (612 ) 302 Total Assets $ 4,160 $ 20,705 $ 3,761 $ (21,822 ) $ 6,804 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ 7 $ 385 $ 333 $ — $ 725 Accrued Expenses and Other 85 500 255 — 840 Income Taxes — — 5 — 5 Total Current Liabilities 92 885 593 — 1,570 Deferred Income Taxes (3 ) (26 ) 302 — 273 Long-term Debt 4,759 597 — (597 ) 4,759 Other Long-term Liabilities — 619 243 (13 ) 849 Total Equity (Deficit) (688 ) 18,630 2,623 (21,212 ) (647 ) Total Liabilities and Equity (Deficit) $ 4,160 $ 20,705 $ 3,761 $ (21,822 ) $ 6,804 L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEETS (in millions) January 31, 2015 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated 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 SHEETS (in millions) (Unaudited) August 2, 2014 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 920 $ 227 $ — $ 1,147 Accounts Receivable, Net 1 175 57 — 233 Inventories — 947 128 — 1,075 Deferred Income Taxes — 43 (16 ) — 27 Other — 131 86 — 217 Total Current Assets 1 2,216 482 — 2,699 Property and Equipment, Net — 1,295 869 — 2,164 Goodwill — 1,318 — — 1,318 Trade Names and Other Intangible Assets, Net — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 4,337 15,123 1,158 (20,618 ) — Other Assets 184 21 685 (612 ) 278 Total Assets $ 4,522 $ 20,384 $ 3,194 $ (21,230 ) $ 6,870 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ — $ 361 $ 261 $ — $ 622 Accrued Expenses and Other 88 413 242 — 743 Current Portion of Long-term Debt 214 — — — 214 Income Taxes — (12 ) 13 — 1 Total Current Liabilities 302 762 516 — 1,580 Deferred Income Taxes (4 ) (18 ) 251 — 229 Long-term Debt 4,758 597 — (597 ) 4,758 Other Long-term Liabilities 1 586 233 (14 ) 806 Total Equity (Deficit) (535 ) 18,457 2,194 (20,619 ) (503 ) Total Liabilities and Equity (Deficit) $ 4,522 $ 20,384 $ 3,194 $ (21,230 ) $ 6,870 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENTS OF INCOME (in millions) (Unaudited) Second Quarter 2015 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 2,588 $ 814 $ (637 ) $ 2,765 Costs of Goods Sold, Buying and Occupancy — (1,607 ) (705 ) 661 (1,651 ) Gross Profit — 981 109 24 1,114 General, Administrative and Store Operating Expenses (2 ) (629 ) (106 ) 26 (711 ) Operating Income (Loss) (2 ) 352 3 50 403 Interest Expense (78 ) (4 ) (3 ) 7 (78 ) Other Income — — (2 ) — (2 ) Income (Loss) Before Income Taxes (80 ) 348 (2 ) 57 323 Provision for Income Taxes — 90 31 — 121 Equity in Earnings (Loss), Net of Tax 282 154 130 (566 ) — Net Income (Loss) $ 202 $ 412 $ 97 $ (509 ) $ 202 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (in millions) (Unaudited) Second Quarter 2015 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Income (Loss) $ 202 $ 412 $ 97 $ (509 ) $ 202 Other Comprehensive Income (Loss), Net of Tax: Reclassification of Cash Flow Hedges to Earnings — — (27 ) — (27 ) Foreign Currency Translation — — 22 — 22 Unrealized Loss on Cash Flow Hedges — — 14 — 14 Total Other Comprehensive Income (Loss), Net of Tax — — 9 — 9 Total Comprehensive Income (Loss) $ 202 $ 412 $ 106 $ (509 ) $ 211 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENTS OF INCOME (in millions) (Unaudited) Second Quarter 2014 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 2,479 $ 773 $ (577 ) $ 2,675 Costs of Goods Sold, Buying and Occupancy — (1,549 ) (630 ) 548 (1,631 ) Gross Profit — 930 143 (29 ) 1,044 General, Administrative and Store Operating Expenses (1 ) (593 ) (104 ) 30 (668 ) Operating Income (Loss) (1 ) 337 39 1 376 Interest Expense (82 ) (8 ) (2 ) 10 (82 ) Other Income — — 2 — 2 Income (Loss) Before Income Taxes (83 ) 329 39 11 296 Provision for Income Taxes — 56 52 — 108 Equity in Earnings (Loss), Net of Tax 271 79 81 (431 ) — Net Income (Loss) $ 188 $ 352 $ 68 $ (420 ) $ 188 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (in millions) (Unaudited) Second Quarter 2014 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Income (Loss) $ 188 $ 352 $ 68 $ (420 ) $ 188 Other Comprehensive Income (Loss), Net of Tax: Reclassification of Cash Flow Hedges to Earnings — — 2 — 2 Foreign Currency Translation — — (1 ) — (1 ) Unrealized Loss on Cash Flow Hedges — — (5 ) — (5 ) Total Other Comprehensive Income (Loss), Net of Tax — — (4 ) — (4 ) Total Comprehensive Income (Loss) $ 188 $ 352 $ 64 $ (420 ) $ 184 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENTS OF INCOME (in millions) (Unaudited) Year-to-Date 2015 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 4,957 $ 1,630 $ (1,310 ) $ 5,277 Costs of Goods Sold, Buying and Occupancy — (3,031 ) (1,321 ) 1,245 (3,107 ) Gross Profit — 1,926 309 (65 ) 2,170 General, Administrative and Store Operating Expenses (6 ) (1,245 ) (202 ) 58 (1,395 ) Operating Income (Loss) (6 ) 681 107 (7 ) 775 Interest Expense (158 ) (12 ) (5 ) 17 (158 ) Other Income — 4 72 — 76 Income (Loss) Before Income Taxes (164 ) 673 174 10 693 Provision for Income Taxes — 168 72 — 240 Equity in Earnings (Loss), Net of Tax 617 379 253 (1,249 ) — Net Income (Loss) $ 453 $ 884 $ 355 $ (1,239 ) $ 453 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (in millions) (Unaudited) Year-to-Date 2015 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Income (Loss) $ 453 $ 884 $ 355 $ (1,239 ) $ 453 Other Comprehensive Income (Loss), Net of Tax: Reclassification of Cash Flow Hedges to Earnings — — (10 ) — (10 ) Foreign Currency Translation — — 12 — 12 Unrealized Loss on Cash Flow Hedges — — 4 — 4 Total Other Comprehensive Income (Loss), Net of Tax — — 6 — 6 Total Comprehensive Income (Loss) $ 453 $ 884 $ 361 $ (1,239 ) $ 459 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENTS OF INCOME (in millions) (Unaudited) Year-to-Date 2014 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 4,710 $ 1,557 $ (1,201 ) $ 5,066 Costs of Goods Sold, Buying and Occupancy — (2,908 ) (1,277 ) 1,145 (3,040 ) Gross Profit — 1,802 280 (56 ) 2,026 General, Administrative and Store Operating Expenses (4 ) (1,161 ) (207 ) 58 (1,314 ) Operating Income (Loss) (4 ) 641 73 2 712 Interest Expense (166 ) (15 ) (4 ) 19 (166 ) Other Income — — 5 — 5 Income (Loss) Before Income Taxes (170 ) 626 74 21 551 Provision for Income Taxes (1 ) 118 89 — 206 Equity in Earnings (Loss), Net of Tax 514 258 250 (1,022 ) — Net Income (Loss) $ 345 $ 766 $ 235 $ (1,001 ) $ 345 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (in millions) (Unaudited) Year-to-Date 2014 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Income (Loss) $ 345 $ 766 $ 235 $ (1,001 ) $ 345 Other Comprehensive Income (Loss), Net of Tax: Reclassification of Cash Flow Hedges to Earnings — — 8 — 8 Foreign Currency Translation — — (3 ) — (3 ) Unrealized Loss on Cash Flow Hedges — — (13 ) — (13 ) Total Other Comprehensive Income (Loss), Net of Tax — — (8 ) — (8 ) Total Comprehensive Income (Loss) 345 766 227 (1,001 ) 337 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in millions) (Unaudited) Year-to-Date 2015 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Cash Provided by (Used for) Operating Activities $ (147 ) $ 481 $ 41 $ — $ 375 Investing Activities: Capital Expenditures — (254 ) (104 ) — (358 ) Proceeds from the Sale of Assets — — 135 — 135 Proceeds from Divestiture of Third-party Apparel Sourcing Business — 1 84 — 85 Purchase of Marketable Securities — (50 ) — — (50 ) Other Investing Activities — — 1 — 1 Net Cash Provided by (Used for) Investing Activities — (303 ) 116 — (187 ) Financing Activities: Repurchase of Common Stock (295 ) — — — (295 ) Dividends Paid (880 ) — — — (880 ) Excess Tax Benefits from Share-based Compensation — 53 8 — 61 Net Financing Activities and Advances to/from Consolidated Affiliates 1,299 (1,240 ) (59 ) — — Proceeds from Exercise of Stock Options and Other 23 — — — 23 Net Cash Provided by (Used for) Financing Activities 147 (1,187 ) (51 ) — (1,091 ) Effects of Exchange Rate Changes on Cash and Cash Equivalents — — 2 — 2 Net Increase (Decrease) in Cash and Cash Equivalents — (1,009 ) 108 — (901 ) Cash and Cash Equivalents, Beginning of Period — 1,462 219 — 1,681 Cash and Cash Equivalents, End of Period $ — $ 453 $ 327 $ — $ 780 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in millions) (Unaudited) Year-to-Date 2014 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Cash Provided by (Used for) Operating Activities $ (172 ) $ 514 $ 104 $ — $ 446 Investing Activities: Capital Expenditures — (248 ) (101 ) — (349 ) Other Investing Activities — — 15 — 15 Net Cash Used for Investing Activities — (248 ) (86 ) — (334 ) Financing Activities: Borrowings from Revolving Facility — — 5 — 5 Repayments on Revolving Facility — — (5 ) — (5 ) Repurchase of Common Stock (48 ) — — — (48 ) Dividends Paid (491 ) — — — (491 ) Excess Tax Benefits from Share-based Compensation — 31 6 — 37 Net Financing Activities and Advances to/from Consolidated Affiliates 694 (730 ) 36 — — Proceeds from Exercise of Stock Options and Other 22 — — — 22 Financing Costs (5 ) — — — (5 ) Net Cash Provided by (Used for) Financing Activities 172 (699 ) 42 — (485 ) Effects of Exchange Rate Changes on Cash and Cash Equivalents — — 1 — 1 Net Increase (Decrease) in Cash and Cash Equivalents — (433 ) 61 — (372 ) Cash and Cash Equivalents, Beginning of Period — 1,353 166 — 1,519 Cash and Cash Equivalents, End of Period $ — $ 920 $ 227 $ — $ 1,147 |
Subsequent Event (Notes)
Subsequent Event (Notes) | 6 Months Ended |
Aug. 01, 2015 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | Subsequent Events Subsequent to August 1, 2015 , the Company repurchased an additional 0.7 million shares of common stock for $61 million under the June 2015 repurchase program. For additional information, see Note 3 , "Earnings Per Share and Shareholders' Equity (Deficit)." Subsequent to August 1, 2015, the Company completed a sale and leaseback transaction of a certain asset under a non-cancellable operating lease. For additional information, see Note 5 , "Property and Equipment, Net" and Note 12 , "Commitments and Contingencies." |
Description Of Business And B23
Description Of Business And Basis Of Presentation (Policy) | 6 Months Ended |
Aug. 01, 2015 | |
Description Of Business And Basis Of Presentation [Abstract] | |
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 United States (“U.S.”), Canada and the United Kingdom ("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, “ second quarter of 2015 ” and “ second quarter of 2014 ” refer to the thirteen week periods ending August 1, 2015 and August 2, 2014 , respectively. |
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 (Loss) on the Consolidated Statements of Income. The Company’s equity investments are required to be tested for impairment when it is determined there may be an other-than-temporary loss in value. |
Interim Financial Statements | Interim Financial Statements The Consolidated Financial Statements as of and for the periods ended August 1, 2015 and August 2, 2014 are unaudited and are presented pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained in the Company’s 2014 Annual Report on Form 10-K. In the opinion of management, the accompanying Consolidated Financial Statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods. |
Seasonality Of Business | Seasonality of Business Due to seasonal variations in the retail industry, the results of operations for any interim period are not necessarily indicative of the results expected for the full fiscal year. |
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 are principally valued at the lower of cost, as determined by the weighted-average cost method, or market. |
Use of Estimates, Policy [Policy Text Block] | 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. |
Earnings Per Share And Shareh24
Earnings Per Share And Shareholders' Equity (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Earnings Per Share And Shareholders' Equity [Abstract] | |
Shares Utilized For The Calculation Of Basic And Diluted Earnings Per Share | The following table provides shares utilized for the calculation of basic and diluted earnings per share for the second quarter and year-to-date 2015 and 2014 : Second Quarter Year-to-Date 2015 2014 2015 2014 (in millions) Weighted-average Common Shares: Issued Shares 312 309 312 309 Treasury Shares (21 ) (17 ) (20 ) (17 ) Basic Shares 291 292 292 292 Effect of Dilutive Options and Restricted Stock 6 5 6 5 Diluted Shares 297 297 298 297 Anti-dilutive Options and Awards (a) 1 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. |
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 year-to-date 2015 and 2014 : Amount Authorized Shares Repurchased Amount Repurchased Average Stock Price of Shares Repurchased within Program Repurchase Program 2015 2014 2015 2014 (in millions) (in thousands) (in millions) June 2015 $ 250 624 NA $ 52 NA $ 83.75 February 2015 $ 250 2,788 NA $ 250 NA $ 89.45 November 2012 $ 250 NA 826 NA $ 45 $ 48.52 |
Schedule Of Dividends Paid | Under the authority and declaration of the Board of Directors, the Company paid the following dividends during year-to-date 2015 and 2014 : Ordinary Dividends Special Dividends Total Dividends Total Paid (per share) (in millions) 2015 Second Quarter $ 0.50 $ — $ 0.50 $ 146 First Quarter 0.50 2.00 2.50 734 2015 Total $ 1.00 $ 2.00 $ 3.00 $ 880 2014 Second Quarter $ 0.34 $ — $ 0.34 $ 99 First Quarter 0.34 1.00 1.34 392 2014 Total $ 0.68 $ 1.00 $ 1.68 $ 491 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Inventory, Net [Abstract] | |
Summary Of Inventories | The following table provides details of inventories as of August 1, 2015 , January 31, 2015 and August 2, 2014 : August 1, January 31, 2015 August 2, (in millions) Finished Goods Merchandise $ 963 $ 942 $ 967 Raw Materials and Merchandise Components 143 94 108 Total Inventories $ 1,106 $ 1,036 $ 1,075 |
Property And Equipment, Net (Ta
Property And Equipment, Net (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary Of Property And Equipment, Net | The following table provides details of property and equipment, net as of August 1, 2015 , January 31, 2015 and August 2, 2014 : August 1, January 31, August 2, (in millions) Property and Equipment, at Cost $ 5,565 $ 5,480 $ 5,304 Accumulated Depreciation and Amortization (3,290 ) (3,203 ) (3,140 ) Property and Equipment, Net $ 2,275 $ 2,277 $ 2,164 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Schedule Of Long-term Debt Instruments | The following table provides the Company’s long-term debt balance as of August 1, 2015 , January 31, 2015 and August 2, 2014 : August 1, January 31, 2015 August 2, (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 $ 1,000 $1 billion, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”) 1,000 1,000 1,000 $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) 500 500 500 $500 million, 8.50% Fixed Interest Rate Notes due June 2019, Less Unamortized Discount (“2019 Notes”)(a) 499 501 494 $400 million, 7.00% Fixed Interest Rate Notes due May 2020 (“2020 Notes”) 400 400 400 Total Senior Unsecured Debt with Subsidiary Guarantee $ 3,399 $ 3,401 $ 3,394 Senior Unsecured Debt $700 million, 6.90% Fixed Interest Rate Notes due July 2017, Less Unamortized Discount (“2017 Notes”)(b) $ 711 $ 715 $ 715 $350 million, 6.95% Fixed Interest Rate Debentures due March 2033, Less Unamortized Discount (“2033 Notes”) 350 350 350 $300 million, 7.60% Fixed Interest Rate Notes due July 2037, Less Unamortized Discount (“2037 Notes”) 299 299 299 5.25% Fixed Interest Rate Notes due November 2014, Less Unamortized Discount (“2014 Notes”)(c) — — 214 Total Senior Unsecured Debt $ 1,360 $ 1,364 $ 1,578 Total $ 4,759 $ 4,765 $ 4,972 Current Portion of Long-term Debt — — (214 ) Total Long-term Debt, Net of Current Portion $ 4,759 $ 4,765 $ 4,758 ________________ (a) The balances include a fair value interest rate hedge adjustment which increased the debt balance by $5 million as of August 1, 2015 , $8 million as of January 31, 2015 and $2 million as of August 2, 2014 . (b) The balances include a fair value interest rate hedge adjustment which increased the debt balance by $11 million as of August 1, 2015 , $15 million as of January 31, 2015 and $16 million as of August 2, 2014 . (c) The outstanding principal balance was $213 million as of August 2, 2014 . The total balance includes a fair value interest rate hedge adjustment which increased the debt balance by $1 million as of August 2, 2014 . |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | |
Derivatives, Fair Value [Line Items] | |
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 August 1, 2015 , January 31, 2015 and August 2, 2014 : August 1, January 31, 2015 August 2, (in millions) Other Long-term Assets $ 25 $ 21 $ — Other Long-term Liabilities — — 26 |
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 the second quarter and year-to-date 2015 and 2014 : Second Quarter Year-to-Date Location 2015 2014 2015 2014 (in millions) Gain (Loss) Recognized in Other Comprehensive Income Other Comprehensive Income (Loss) $ 14 $ (5 ) $ 4 $ (13 ) (Gain) Loss Reclassified from Accumulated Other Comprehensive Income (Loss) into Other Income (Loss) (a) Other Income (Loss) (27 ) 2 (10 ) 8 ________________ (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 |
Fair Value Hedging [Member] | Interest Rate Swap [Member] | |
Derivatives, Fair Value [Line Items] | |
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 August 1, 2015 , January 31, 2015 and August 2, 2014 : August 1, January 31, August 2, (in millions) Other Assets $ 7 $ 12 $ 3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Fair Value Measurements [Abstract] | |
Carrying Value And Fair Value Of Long-Term Debt, Disclosure | The following table provides a summary of the carrying value and estimated fair value of long-term debt as of August 1, 2015 , January 31, 2015 and August 2, 2014 : August 1, January 31, August 2, (in millions) Carrying Value $ 4,759 $ 4,765 $ 4,972 Estimated Fair Value (a) 5,233 5,305 5,443 _______________ (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 August 1, 2015 , January 31, 2015 and August 2, 2014 : Level 1 Level 2 Level 3 Total (in millions) As of August 1, 2015 Assets: Cash and Cash Equivalents $ 780 $ — $ — $ 780 Marketable Securities 50 — — 50 Interest Rate Designated Fair Value Hedges — 7 — 7 Cross-currency Cash Flow Hedges — 25 — 25 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 August 2, 2014 Assets: Cash and Cash Equivalents $ 1,147 $ — $ — $ 1,147 Interest Rate Designated Fair Value Hedges — 3 — 3 Liabilities: Cross-currency Cash Flow Hedges — 26 — 26 Lease Guarantees — — 1 1 |
Fair Value, Lease Guarantees On Recurring Basis, Unobservable Input | 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 the second quarter and year-to-date 2015 and 2014 : Second Quarter Year-to-Date 2015 2014 2015 2014 (in millions) Beginning Balance $ — $ 1 $ 1 $ 1 Change in Estimated Fair Value Reported in Earnings — — (1 ) — Ending Balance $ — $ 1 $ — $ 1 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 6 Months Ended | |
Aug. 01, 2015 | Aug. 02, 2014 | |
Comprehensive Income | ||
Components Of Accumulated Other Comprehensive Income (Loss) | The following table provides the rollforward of accumulated other comprehensive income for year-to-date 2015 : Foreign Currency Translation Cash Flow Hedges Accumulated Other Comprehensive Income (in millions) Balance as of January 31, 2015 $ 51 $ (16 ) $ 35 Other Comprehensive Income Before Reclassifications 12 4 16 Amounts Reclassified from Accumulated Other Comprehensive Income — (10 ) (10 ) Current-period Other Comprehensive Income (Loss) 12 (6 ) 6 Balance as of August 1, 2015 $ 63 $ (22 ) $ 41 | The following table provides the rollforward of accumulated other comprehensive income for year-to-date 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 Before Reclassifications (3 ) (13 ) (16 ) Amounts Reclassified from Accumulated Other Comprehensive Income — 8 8 Current-period Other Comprehensive Loss (3 ) (5 ) (8 ) Balance as of August 2, 2014 $ 27 $ 5 $ 32 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table provides a summary of the reclassification adjustments out of accumulated other comprehensive income for the second quarter and year-to-date 2015 and 2014 : Details About Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Location on Consolidated Statement of Income Second Quarter Year-to-Date 2015 2014 2015 2014 (in millions) Cash Flow Hedges (Gain) Loss $ (27 ) $ 2 $ (10 ) $ 8 Other Income (Loss) — — — — Provision for Income Taxes $ (27 ) $ 2 $ (10 ) $ 8 Net Income |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information | The following table provides the Company’s segment information for the second quarter and year-to-date 2015 and 2014 : Victoria’s Secret Bath & Body Works Victoria’s Secret and Bath & Body Works International Other Total (in millions) 2015 Second Quarter: Net Sales $ 1,806 $ 748 $ 89 $ 122 $ 2,765 Operating Income (Loss) 298 138 20 (53 ) 403 Year-to-Date: Net Sales $ 3,490 $ 1,361 $ 181 $ 245 $ 5,277 Operating Income (Loss) 587 235 41 (88 ) 775 2014 Second Quarter: Net Sales $ 1,745 $ 704 $ 80 $ 146 $ 2,675 Operating Income (Loss) 293 115 17 (49 ) 376 Year-to-Date: Net Sales $ 3,349 $ 1,286 $ 151 $ 280 $ 5,066 Operating Income (Loss) 571 195 32 (86 ) 712 |
Supplemental Guarantor Financ32
Supplemental Guarantor Financial Information (Tables) | 6 Months Ended | |
Aug. 01, 2015 | Aug. 02, 2014 | |
Condensed Consolidating Balance Sheet [Abstract] | ||
Condensed Balance Sheet [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEETS (in millions) (Unaudited) August 1, 2015 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 453 $ 327 $ — $ 780 Marketable Securities — 50 — — 50 Accounts Receivable, Net 1 201 55 — 257 Inventories — 980 126 — 1,106 Deferred Income Taxes — 37 (2 ) — 35 Other 1 141 128 — 270 Total Current Assets 2 1,862 634 — 2,498 Property and Equipment, Net — 1,485 790 — 2,275 Goodwill — 1,318 — — 1,318 Trade Names and Other Intangible Assets, Net — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 3,979 15,589 1,642 (21,210 ) — Other Assets 179 40 695 (612 ) 302 Total Assets $ 4,160 $ 20,705 $ 3,761 $ (21,822 ) $ 6,804 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ 7 $ 385 $ 333 $ — $ 725 Accrued Expenses and Other 85 500 255 — 840 Income Taxes — — 5 — 5 Total Current Liabilities 92 885 593 — 1,570 Deferred Income Taxes (3 ) (26 ) 302 — 273 Long-term Debt 4,759 597 — (597 ) 4,759 Other Long-term Liabilities — 619 243 (13 ) 849 Total Equity (Deficit) (688 ) 18,630 2,623 (21,212 ) (647 ) Total Liabilities and Equity (Deficit) $ 4,160 $ 20,705 $ 3,761 $ (21,822 ) $ 6,804 L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEETS (in millions) January 31, 2015 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated 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 SHEETS (in millions) (Unaudited) August 2, 2014 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 920 $ 227 $ — $ 1,147 Accounts Receivable, Net 1 175 57 — 233 Inventories — 947 128 — 1,075 Deferred Income Taxes — 43 (16 ) — 27 Other — 131 86 — 217 Total Current Assets 1 2,216 482 — 2,699 Property and Equipment, Net — 1,295 869 — 2,164 Goodwill — 1,318 — — 1,318 Trade Names and Other Intangible Assets, Net — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 4,337 15,123 1,158 (20,618 ) — Other Assets 184 21 685 (612 ) 278 Total Assets $ 4,522 $ 20,384 $ 3,194 $ (21,230 ) $ 6,870 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ — $ 361 $ 261 $ — $ 622 Accrued Expenses and Other 88 413 242 — 743 Current Portion of Long-term Debt 214 — — — 214 Income Taxes — (12 ) 13 — 1 Total Current Liabilities 302 762 516 — 1,580 Deferred Income Taxes (4 ) (18 ) 251 — 229 Long-term Debt 4,758 597 — (597 ) 4,758 Other Long-term Liabilities 1 586 233 (14 ) 806 Total Equity (Deficit) (535 ) 18,457 2,194 (20,619 ) (503 ) Total Liabilities and Equity (Deficit) $ 4,522 $ 20,384 $ 3,194 $ (21,230 ) $ 6,870 |
Condensed Income Statement [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENTS OF INCOME (in millions) (Unaudited) Second Quarter 2015 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 2,588 $ 814 $ (637 ) $ 2,765 Costs of Goods Sold, Buying and Occupancy — (1,607 ) (705 ) 661 (1,651 ) Gross Profit — 981 109 24 1,114 General, Administrative and Store Operating Expenses (2 ) (629 ) (106 ) 26 (711 ) Operating Income (Loss) (2 ) 352 3 50 403 Interest Expense (78 ) (4 ) (3 ) 7 (78 ) Other Income — — (2 ) — (2 ) Income (Loss) Before Income Taxes (80 ) 348 (2 ) 57 323 Provision for Income Taxes — 90 31 — 121 Equity in Earnings (Loss), Net of Tax 282 154 130 (566 ) — Net Income (Loss) $ 202 $ 412 $ 97 $ (509 ) $ 202 Year-to-Date 2015 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 4,957 $ 1,630 $ (1,310 ) $ 5,277 Costs of Goods Sold, Buying and Occupancy — (3,031 ) (1,321 ) 1,245 (3,107 ) Gross Profit — 1,926 309 (65 ) 2,170 General, Administrative and Store Operating Expenses (6 ) (1,245 ) (202 ) 58 (1,395 ) Operating Income (Loss) (6 ) 681 107 (7 ) 775 Interest Expense (158 ) (12 ) (5 ) 17 (158 ) Other Income — 4 72 — 76 Income (Loss) Before Income Taxes (164 ) 673 174 10 693 Provision for Income Taxes — 168 72 — 240 Equity in Earnings (Loss), Net of Tax 617 379 253 (1,249 ) — Net Income (Loss) $ 453 $ 884 $ 355 $ (1,239 ) $ 453 | Year-to-Date 2014 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 4,710 $ 1,557 $ (1,201 ) $ 5,066 Costs of Goods Sold, Buying and Occupancy — (2,908 ) (1,277 ) 1,145 (3,040 ) Gross Profit — 1,802 280 (56 ) 2,026 General, Administrative and Store Operating Expenses (4 ) (1,161 ) (207 ) 58 (1,314 ) Operating Income (Loss) (4 ) 641 73 2 712 Interest Expense (166 ) (15 ) (4 ) 19 (166 ) Other Income — — 5 — 5 Income (Loss) Before Income Taxes (170 ) 626 74 21 551 Provision for Income Taxes (1 ) 118 89 — 206 Equity in Earnings (Loss), Net of Tax 514 258 250 (1,022 ) — Net Income (Loss) $ 345 $ 766 $ 235 $ (1,001 ) $ 345 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENTS OF INCOME (in millions) (Unaudited) Second Quarter 2014 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 2,479 $ 773 $ (577 ) $ 2,675 Costs of Goods Sold, Buying and Occupancy — (1,549 ) (630 ) 548 (1,631 ) Gross Profit — 930 143 (29 ) 1,044 General, Administrative and Store Operating Expenses (1 ) (593 ) (104 ) 30 (668 ) Operating Income (Loss) (1 ) 337 39 1 376 Interest Expense (82 ) (8 ) (2 ) 10 (82 ) Other Income — — 2 — 2 Income (Loss) Before Income Taxes (83 ) 329 39 11 296 Provision for Income Taxes — 56 52 — 108 Equity in Earnings (Loss), Net of Tax 271 79 81 (431 ) — Net Income (Loss) $ 188 $ 352 $ 68 $ (420 ) $ 188 |
Condensed Statement of Comprehensive Income [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (in millions) (Unaudited) Second Quarter 2015 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Income (Loss) $ 202 $ 412 $ 97 $ (509 ) $ 202 Other Comprehensive Income (Loss), Net of Tax: Reclassification of Cash Flow Hedges to Earnings — — (27 ) — (27 ) Foreign Currency Translation — — 22 — 22 Unrealized Loss on Cash Flow Hedges — — 14 — 14 Total Other Comprehensive Income (Loss), Net of Tax — — 9 — 9 Total Comprehensive Income (Loss) $ 202 $ 412 $ 106 $ (509 ) $ 211 Year-to-Date 2015 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Income (Loss) $ 453 $ 884 $ 355 $ (1,239 ) $ 453 Other Comprehensive Income (Loss), Net of Tax: Reclassification of Cash Flow Hedges to Earnings — — (10 ) — (10 ) Foreign Currency Translation — — 12 — 12 Unrealized Loss on Cash Flow Hedges — — 4 — 4 Total Other Comprehensive Income (Loss), Net of Tax — — 6 — 6 Total Comprehensive Income (Loss) $ 453 $ 884 $ 361 $ (1,239 ) $ 459 | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (in millions) (Unaudited) Second Quarter 2014 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Income (Loss) $ 188 $ 352 $ 68 $ (420 ) $ 188 Other Comprehensive Income (Loss), Net of Tax: Reclassification of Cash Flow Hedges to Earnings — — 2 — 2 Foreign Currency Translation — — (1 ) — (1 ) Unrealized Loss on Cash Flow Hedges — — (5 ) — (5 ) Total Other Comprehensive Income (Loss), Net of Tax — — (4 ) — (4 ) Total Comprehensive Income (Loss) $ 188 $ 352 $ 64 $ (420 ) $ 184 Year-to-Date 2014 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Income (Loss) $ 345 $ 766 $ 235 $ (1,001 ) $ 345 Other Comprehensive Income (Loss), Net of Tax: Reclassification of Cash Flow Hedges to Earnings — — 8 — 8 Foreign Currency Translation — — (3 ) — (3 ) Unrealized Loss on Cash Flow Hedges — — (13 ) — (13 ) Total Other Comprehensive Income (Loss), Net of Tax — — (8 ) — (8 ) Total Comprehensive Income (Loss) 345 766 227 (1,001 ) 337 |
Condensed Cash Flow Statement [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in millions) (Unaudited) Year-to-Date 2015 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Cash Provided by (Used for) Operating Activities $ (147 ) $ 481 $ 41 $ — $ 375 Investing Activities: Capital Expenditures — (254 ) (104 ) — (358 ) Proceeds from the Sale of Assets — — 135 — 135 Proceeds from Divestiture of Third-party Apparel Sourcing Business — 1 84 — 85 Purchase of Marketable Securities — (50 ) — — (50 ) Other Investing Activities — — 1 — 1 Net Cash Provided by (Used for) Investing Activities — (303 ) 116 — (187 ) Financing Activities: Repurchase of Common Stock (295 ) — — — (295 ) Dividends Paid (880 ) — — — (880 ) Excess Tax Benefits from Share-based Compensation — 53 8 — 61 Net Financing Activities and Advances to/from Consolidated Affiliates 1,299 (1,240 ) (59 ) — — Proceeds from Exercise of Stock Options and Other 23 — — — 23 Net Cash Provided by (Used for) Financing Activities 147 (1,187 ) (51 ) — (1,091 ) Effects of Exchange Rate Changes on Cash and Cash Equivalents — — 2 — 2 Net Increase (Decrease) in Cash and Cash Equivalents — (1,009 ) 108 — (901 ) Cash and Cash Equivalents, Beginning of Period — 1,462 219 — 1,681 Cash and Cash Equivalents, End of Period $ — $ 453 $ 327 $ — $ 780 | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in millions) (Unaudited) Year-to-Date 2014 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Cash Provided by (Used for) Operating Activities $ (172 ) $ 514 $ 104 $ — $ 446 Investing Activities: Capital Expenditures — (248 ) (101 ) — (349 ) Other Investing Activities — — 15 — 15 Net Cash Used for Investing Activities — (248 ) (86 ) — (334 ) Financing Activities: Borrowings from Revolving Facility — — 5 — 5 Repayments on Revolving Facility — — (5 ) — (5 ) Repurchase of Common Stock (48 ) — — — (48 ) Dividends Paid (491 ) — — — (491 ) Excess Tax Benefits from Share-based Compensation — 31 6 — 37 Net Financing Activities and Advances to/from Consolidated Affiliates 694 (730 ) 36 — — Proceeds from Exercise of Stock Options and Other 22 — — — 22 Financing Costs (5 ) — — — (5 ) Net Cash Provided by (Used for) Financing Activities 172 (699 ) 42 — (485 ) Effects of Exchange Rate Changes on Cash and Cash Equivalents — — 1 — 1 Net Increase (Decrease) in Cash and Cash Equivalents — (433 ) 61 — (372 ) Cash and Cash Equivalents, Beginning of Period — 1,353 166 — 1,519 Cash and Cash Equivalents, End of Period $ — $ 920 $ 227 $ — $ 1,147 |
New Accounting Pronouncement De
New Accounting Pronouncement Debt Issuance Costs (Details) $ in Millions | Aug. 01, 2015USD ($) |
Debt Issuance Cost Accounting Standard Adoption [Abstract] | |
Unamortized Debt Issuance Expense | $ 35 |
Earnings Per Share And Shareh34
Earnings Per Share And Shareholders' Equity (Shares Utilized for the Calculation of Basic and Diluted Earnings per Share) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |||
Weighted-average Common Shares: | ||||||
Issued Shares | 312 | 309 | 312 | 309 | ||
Treasury Shares | (21) | (17) | (20) | (17) | ||
Basic Shares | 291 | 292 | 292 | 292 | ||
Effect of Dilutive Options and Restricted Stock | 6 | 5 | 6 | 5 | ||
Diluted Shares | 297 | 297 | 298 | 297 | ||
Anti-dilutive Options and Awards (a) | 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. |
Earnings Per Share And Shareh35
Earnings Per Share And Shareholders' Equity (Schedule of Company's Repurchase Program) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended | 6 Months Ended | ||||
Sep. 02, 2015 | Aug. 01, 2015 | Aug. 02, 2014 | May. 02, 2015 | Jan. 31, 2015 | Feb. 02, 2013 | |
June 2015 Repurchase Program [Member] | ||||||
Amount Authorized | $ 250 | |||||
Shares Repurchased | 624 | |||||
Amount Repurchased | $ 52 | |||||
Average Stock Price of Shares Repurchased within Program | $ 83.75 | |||||
Remaining authorized repurchase amount | $ 198 | |||||
February 2015 Repurchase Program [Member] [Member] | ||||||
Amount Authorized | $ 250 | |||||
Shares Repurchased | 2,788 | |||||
Amount Repurchased | $ 250 | |||||
Average Stock Price of Shares Repurchased within Program | $ 89.45 | |||||
Remaining authorized repurchase amount | $ 0.6 | |||||
November 2012 Repurchase Program [Member] | ||||||
Amount Authorized | $ 250 | |||||
Shares Repurchased | 826 | |||||
Amount Repurchased | $ 45 | |||||
Average Stock Price of Shares Repurchased within Program | $ 48.52 | |||||
Remaining authorized repurchase amount | $ 91 | |||||
Accounts Payable [Member] | June 2015 Repurchase Program [Member] | ||||||
Share repurchase reflected in Accounts payable | $ 7 | |||||
Accounts Payable [Member] | November 2012 Repurchase Program [Member] | ||||||
Share repurchase reflected in Accounts payable | $ 0 | $ 0 | ||||
Subsequent Event [Member] | June 2015 Repurchase Program [Member] | ||||||
Shares Repurchased | 700 | |||||
Amount Repurchased | $ 61 |
Earnings Per Share And Shareh36
Earnings Per Share And Shareholders' Equity (Dividends) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Aug. 01, 2015 | May. 02, 2015 | Aug. 02, 2014 | May. 03, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Earnings Per Share And Shareholders' Equity [Abstract] | ||||||
Ordinary Dividends | $ 0.50 | $ 0.5 | $ 0.34 | $ 0.34 | $ 1 | $ 0.68 |
Special Dividends | 0 | 2 | 0 | 1 | 2 | 1 |
Total Dividends | $ 0.5 | $ 2.50 | $ 0.34 | $ 1.34 | $ 3 | $ 1.68 |
Total Paid | $ 146 | $ 734 | $ 99 | $ 392 | $ 880 | $ 491 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 |
Inventory, Net [Abstract] | |||
Finished Goods Merchandise | $ 963 | $ 942 | $ 967 |
Raw Materials and Merchandise Components | 143 | 94 | 108 |
Total Inventories | $ 1,106 | $ 1,036 | $ 1,075 |
Property And Equipment, Net (De
Property And Equipment, Net (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Sep. 02, 2015 | Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | Aug. 02, 2015 | Jan. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||||||
Property and Equipment, at Cost | $ 5,565 | $ 5,304 | $ 5,565 | $ 5,304 | $ 5,480 | ||
Accumulated Depreciation and Amortization | (3,290) | (3,140) | (3,290) | (3,140) | (3,203) | ||
Property and Equipment, Net | 2,275 | 2,164 | 2,275 | 2,164 | $ 2,277 | ||
Depreciation | 113 | $ 109 | 224 | $ 219 | |||
Sale Leaseback Transaction, Net Book Value | 118 | $ 118 | |||||
Sale Leaseback Transaction, Gross Proceeds, Investing Activities | $ 118 | ||||||
Subsequent Event [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Sale Leaseback Transaction, Net Book Value | $ 41 | ||||||
Sale Leaseback Transaction, Gross Proceeds, Investing Activities | $ 42 |
Equity Investments and Other (D
Equity Investments and Other (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May. 02, 2015USD ($) | Aug. 01, 2015USD ($)a | Aug. 02, 2014USD ($) | Jan. 31, 2015USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 78 | $ 0 | ||
Easton Investment [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Acres Of Land | a | 1,300 | |||
Easton Investment Carrying Value included in Other Assets | $ 94 | 100 | $ 101 | |
Easton Town Center Investment [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Guarantor Obligations, Maximum Exposure, Undiscounted | 63 | |||
Third Party Sourcing Business [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment Carrying Value included in Other Assets | 5 | 8 | ||
Equity Method Investment, Net Sales Proceeds | $ 85 | |||
Equity Method Investment, Realized Gain (Loss) on Disposal | 78 | |||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 69 | |||
Easton Gateway Investment [Domain] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 32 | $ 35 | $ 34 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 42 | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 10 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Effective Income Tax Rate, Continuing Operations | 37.40% | 36.40% | 34.60% | 37.40% |
Income Taxes Paid | $ 182 | $ 172 | $ 370 | $ 369 |
Long-term Debt (Schedule Of Lon
Long-term Debt (Schedule Of Long-term Debt Instruments) (Details) - USD ($) $ in Millions | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 | |
Senior Unsecured Debt with Subsidiary Guarantee | $ 3,399 | $ 3,401 | $ 3,394 | |
Senior Unsecured Debt | 1,360 | 1,364 | 1,578 | |
Long-term Debt | 4,759 | 4,765 | 4,972 | |
Current Portion of Long-term Debt | 0 | 0 | (214) | |
Total Long-term Debt, Net of Current Portion | 4,759 | 4,765 | 4,758 | |
Fixed Rate 5.625% Notes Due February 2022 [Member] | ||||
Senior Unsecured Debt with Subsidiary Guarantee | 1,000 | 1,000 | 1,000 | |
Fixed Rate 6.625% Notes Due April 2021 [Member] | ||||
Senior Unsecured Debt with Subsidiary Guarantee | 1,000 | 1,000 | 1,000 | |
Fixed Rate 5.625% Notes Due October 2023 [Member] | ||||
Senior Unsecured Debt with Subsidiary Guarantee | 500 | 500 | 500 | |
Fixed Rate 8.50% Notes Due June 2019 [Member] | ||||
Senior Unsecured Debt with Subsidiary Guarantee | [1] | 499 | 501 | 494 |
Fixed Rate 7.00% Notes Due May 2020 [Member] | ||||
Senior Unsecured Debt with Subsidiary Guarantee | 400 | 400 | 400 | |
Fixed Rate 6.90% Notes Due July 2017 [Member] | ||||
Senior Unsecured Debt | [2] | 711 | 715 | 715 |
Fixed Rate 6.95% Debentures Due March 2033 [Member] | ||||
Senior Unsecured Debt | 350 | 350 | 350 | |
Fixed Rate 7.60% Notes Due July 2037 [Member] | ||||
Senior Unsecured Debt | 299 | 299 | 299 | |
Fixed Rate 5.25% Notes Due November 2014 [Member] | ||||
Senior Unsecured Debt | [3] | 0 | 0 | 214 |
Long-term Debt, Gross | 213 | |||
L Brands, Inc. | ||||
Current Portion of Long-term Debt | (214) | |||
Total Long-term Debt, Net of Current Portion | $ 4,759 | $ 4,765 | $ 4,758 | |
[1] | The balances include a fair value interest rate hedge adjustment which increased the debt balance by $5 million as of August 1, 2015, $8 million as of January 31, 2015 and $2 million as of August 2, 2014. | |||
[2] | The balances include a fair value interest rate hedge adjustment which increased the debt balance by $11 million as of August 1, 2015, $15 million as of January 31, 2015 and $16 million as of August 2, 2014. | |||
[3] | The outstanding principal balance was $213 million as of August 2, 2014. The total balance includes a fair value interest rate hedge adjustment which increased the debt balance by $1 million as of August 2, 2014. |
Long-term Debt (Issuance And Re
Long-term Debt (Issuance And Repurchase Of Notes) (Narrative) (Details) - Jan. 31, 2015 - Fixed Rate 5.25% Notes Due November 2014 [Member] - USD ($) $ in Millions | Total | |
Debt instrument, stated rate | 5.25% | |
Repayments of Debt | [1] | $ 213 |
[1] | The outstanding principal balance was $213 million as of August 2, 2014. The total balance includes a fair value interest rate hedge adjustment which increased the debt balance by $1 million as of August 2, 2014. |
Long-term Debt (Revolving Facil
Long-term Debt (Revolving Facility And Letters Of Credit) (Narrative) (Details) - Aug. 01, 2015 $ in Millions | USD ($) |
Letter of Credit [Member] | |
Outstanding letters of credit | $ 19 |
Revolving Credit Facility [Member] | Revolving Credit Expiring July 2019 [Member] | |
Revolving facility, borrowing capacity | $ 1,000 |
Revolving Facility Commitment fee percentage, unused capacity | 0.30% |
Revolving Facility Current credit fees percentage rate, letters of credit | 1.50% |
Revolving Facility Percentage spread over variable base rate | 1.50% |
Revolving Facility Covenant Fixed charge coverage ratio | 1.75 |
Revolving Facility Covenant Ratio of consolidated debt to consolidated EBITDA | 4 |
Revolving Facility Covenant Debt to EBITDA ratio required for unlimited investments and restricted payments | 3 |
Revolving Facility Covenant Line of Credit Financial Covenant Ratio of Consolidated Debt to Consolidated EBITDA Maximum Current Rate | 3 |
Outstanding letters of credit | $ 0 |
Derivative Instruments (Foreign
Derivative Instruments (Foreign Exchange Contracts - Cash Flow Hedging Disclosure) (Details) CAD in Millions | 3 Months Ended | 6 Months Ended | ||||||
Aug. 01, 2015USD ($) | Aug. 02, 2014USD ($) | Aug. 01, 2015USD ($) | Aug. 02, 2014USD ($) | Jan. 31, 2015USD ($) | Jan. 31, 2007CAD | |||
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ 26,000,000 | $ 26,000,000 | ||||||
Gain (Loss) on Foreign Currency Cash Flow Hedge Ineffectiveness | $ 0 | |||||||
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 25,000,000 | 25,000,000 | $ 21,000,000 | |||||
Other Comprehensive Income (Loss) [Member] | ||||||||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | 14,000,000 | (5,000,000) | 4,000,000 | (13,000,000) | ||||
Other Income (Loss) [Member] | ||||||||
(Gain) Loss Reclassified from Accumulated Other Comprehensive Income (Loss) into Other Income (Loss) | $ (27,000,000) | [1] | $ 2,000,000 | [1] | $ 10,000,000 | $ (8,000,000) | ||
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||||||||
Derivative, Notional Amount | CAD | CAD 270 | |||||||
[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 Val
Derivative Instruments Fair Values Derivatives, Balance Sheet Location, by Derivative Contract Type (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | Jan. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |||||
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ 26 | $ 26 | |||
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 25 | $ 25 | $ 21 | ||
Other Assets [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Interest Rate Fair Value Hedge Asset at Fair Value | 7 | 3 | 7 | 3 | 12 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 25 | 0 | 25 | 0 | 21 |
Other Long-term Liabilities [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 0 | 26 | 0 | 26 | $ 0 |
Other Comprehensive Income (Loss) [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | $ 14 | $ (5) | $ 4 | $ (13) |
Derivative Instruments Derivati
Derivative Instruments Derivative Instruments (Interest Rate Contracts - Fair Value Hedging Disclosures) (Details) - Fair Value Hedging [Member] - Interest Rate Swap [Member] - USD ($) $ in Millions | Aug. 02, 2014 | Feb. 01, 2014 |
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, Disclosure) (Detail) - USD ($) $ in Millions | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 | |
Fair Value Measurements | ||||
Carrying Value | $ 4,759 | $ 4,765 | $ 4,972 | |
Estimated Fair Value (a) | [1] | $ 5,233 | $ 5,305 | $ 5,443 |
[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 ($) $ in Millions | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Aug. 02, 2014 | May. 03, 2014 | Feb. 01, 2014 |
Assets: | ||||||
Cash and Cash Equivalents | $ 780 | $ 1,681 | $ 1,147 | |||
Marketable Securities, Current | 50 | 0 | 0 | |||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 25 | 21 | ||||
Interest Rate Designated Fair Value Hedges | 7 | 12 | 3 | |||
Liabilities: | ||||||
Guarantees, Fair Value Disclosure | 0 | $ 0 | 1 | 1 | $ 1 | $ 1 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 26 | |||||
Fair Value, Inputs, Level 1 [Member] | ||||||
Assets: | ||||||
Cash and Cash Equivalents | 780 | 1,681 | 1,147 | |||
Marketable Securities, Current | 50 | |||||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0 | 0 | ||||
Interest Rate Designated Fair Value Hedges | 0 | 0 | 0 | |||
Liabilities: | ||||||
Guarantees, Fair Value Disclosure | 0 | 0 | ||||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 0 | |||||
Fair Value, Inputs, Level 2 [Member] | ||||||
Assets: | ||||||
Cash and Cash Equivalents | 0 | 0 | 0 | |||
Marketable Securities, Current | 0 | |||||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 25 | 21 | ||||
Interest Rate Designated Fair Value Hedges | 7 | 12 | 3 | |||
Liabilities: | ||||||
Guarantees, Fair Value Disclosure | 0 | 0 | ||||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 26 | |||||
Fair Value, Inputs, Level 3 [Member] | ||||||
Assets: | ||||||
Cash and Cash Equivalents | 0 | 0 | 0 | |||
Marketable Securities, Current | 0 | |||||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0 | 0 | ||||
Interest Rate Designated Fair Value Hedges | $ 0 | 0 | 0 | |||
Liabilities: | ||||||
Guarantees, Fair Value Disclosure | $ 1 | 1 | ||||
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ 0 |
Fair Value Measurements (Fair49
Fair Value Measurements (Fair Value, Lease Guarantees On Recurring Basis, Unobservable Input) (Details) - Fair Value, Measurements, Fair Value Hierarchy [Domain] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Fair Value Measurements [Abstract] | ||||
Beginning Balance | $ 0 | $ 1 | $ 1 | $ 1 |
Change in Estimated Fair Value Reported in Earnings | 0 | 0 | (1) | 0 |
Ending Balance | $ 0 | $ 1 | $ 0 | $ 1 |
Comprehensive Income (Component
Comprehensive Income (Components Of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Accumulated Other Comprehensive Income (Loss), Beginning Balance | $ 35 | $ 40 | ||
Other Comprehensive Income Before Reclassifications | 16 | (16) | ||
Amounts Reclassified from Accumulated Other Comprehensive Income | (10) | 8 | ||
Current-period Other Comprehensive Income (Loss) | $ 9 | $ (4) | 6 | (8) |
Accumulated Other Comprehensive Income (Loss), Ending Balance | 41 | 32 | 41 | 32 |
Other Income (Loss) | (2) | 2 | 76 | 5 |
Provision for Income Taxes | 121 | 108 | 240 | 206 |
Net Income | 202 | 188 | 453 | 345 |
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | 51 | 30 | ||
Other Comprehensive Income Before Reclassifications | 12 | (3) | ||
Amounts Reclassified from Accumulated Other Comprehensive Income | 0 | 0 | ||
Current-period Other Comprehensive Income (Loss) | 12 | (3) | ||
Accumulated Other Comprehensive Income (Loss), Ending Balance | 63 | 27 | 63 | 27 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | (16) | 10 | ||
Other Comprehensive Income Before Reclassifications | 4 | (13) | ||
Amounts Reclassified from Accumulated Other Comprehensive Income | (10) | 8 | ||
Current-period Other Comprehensive Income (Loss) | (6) | (5) | ||
Accumulated Other Comprehensive Income (Loss), Ending Balance | (22) | 5 | (22) | 5 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Other Income (Loss) | (27) | 2 | (10) | 8 |
Provision for Income Taxes | 0 | 0 | 0 | 0 |
Net Income | $ (27) | $ 2 | $ (10) | $ 8 |
Commitments And Contingencies (
Commitments And Contingencies (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Sep. 02, 2015 | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 | |
Sale Leaseback Transaction, Other Information | 66 | |||
Property Lease Guarantee [Member] | ||||
Lease guarantees remaining after disposition of certain businesses | $ 18 | |||
Property Lease Guarantee [Member] | Express Limited Stores And New York And Company [Member] | ||||
Lease guarantees remaining after disposition of certain businesses | 7 | $ 11 | $ 16 | |
Lease guarantees, estimated fair value | $ 0 | $ 1 | $ 1 | |
Subsequent Event [Member] | ||||
Sale Leaseback Transaction, Other Information | 29 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Retirement Benefits Disclosure [Line Items] | ||||
Expense related to the qualified plan | $ 14 | $ 14 | $ 31 | $ 30 |
Other Pension Plans, Postretirement or Supplemental Plans, Defined Benefit [Member] | ||||
Retirement Benefits Disclosure [Line Items] | ||||
Expense related to non-qualified plan | $ 6 | $ 6 | $ 13 | $ 12 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015USD ($) | Aug. 02, 2014USD ($) | Aug. 01, 2015USD ($)Reportable_Segments | Aug. 02, 2014USD ($) | |
Number of Reportable Segments | Reportable_Segments | 3 | |||
Net Sales | $ 2,765 | $ 2,675 | $ 5,277 | $ 5,066 |
Operating Income (Loss) | $ 403 | 376 | $ 775 | 712 |
Number of Stores | 29 | 29 | ||
Victoria's Secret [Member] | ||||
Net Sales | $ 1,806 | 1,745 | $ 3,490 | 3,349 |
Operating Income (Loss) | 298 | 293 | 587 | 571 |
Bath & Body Works [Member] | ||||
Net Sales | 748 | 704 | 1,361 | 1,286 |
Operating Income (Loss) | 138 | 115 | 235 | 195 |
Victoria's Secret and Bath & Body Works International [Member] | ||||
Net Sales | 89 | 80 | 181 | 151 |
Operating Income (Loss) | 20 | 17 | 41 | 32 |
Other [Member] | ||||
Net Sales | 122 | 146 | 245 | 280 |
Operating Income (Loss) | (53) | (49) | (88) | (86) |
International [Member] | ||||
International sales | $ 313 | $ 339 | $ 606 | $ 634 |
Supplemental Guarantor Financ54
Supplemental Guarantor Financial Information (Narrative) (Details) | 6 Months Ended |
Aug. 01, 2015 | |
Supplemental Guarantor Financial Information [Abstract] | |
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 Financ55
Supplemental Guarantor Financial Information (Consolidated Balance Sheets) (Details) - USD ($) $ in Millions | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 | Feb. 01, 2014 |
Current Assets: | ||||
Cash and Cash Equivalents | $ 780 | $ 1,681 | $ 1,147 | $ 1,519 |
Marketable Securities, Current | 50 | 0 | 0 | |
Accounts Receivable, Net | 257 | 252 | 233 | |
Inventories | 1,106 | 1,036 | 1,075 | |
Deferred Income Taxes | 35 | 33 | 27 | |
Other | 270 | 230 | 217 | |
Total Current Assets | 2,498 | 3,232 | 2,699 | |
Property and Equipment, Net | 2,275 | 2,277 | 2,164 | |
Goodwill | 1,318 | 1,318 | 1,318 | |
Trade Names and Other Intangible Assets, Net | 411 | 411 | 411 | |
Net Investments in and Advances to/from Consolidated Affiliates | 0 | 0 | 0 | |
Other Assets | 302 | 306 | 278 | |
Total Assets | 6,804 | 7,544 | 6,870 | |
Current Liabilities: | ||||
Accounts Payable | 725 | 613 | 622 | |
Accrued Expenses and Other | 840 | 900 | 743 | |
Current Portion of Long-term Debt | 0 | 0 | 214 | |
Income Taxes | 5 | 166 | 1 | |
Total Current Liabilities | 1,570 | 1,679 | 1,580 | |
Deferred Income Taxes | 273 | 261 | 229 | |
Long-term Debt | 4,759 | 4,765 | 4,758 | |
Other Long-term Liabilities | 849 | 820 | 806 | |
Total Equity (Deficit) | (647) | 19 | (503) | |
Total Liabilities and Equity (Deficit) | 6,804 | 7,544 | 6,870 | |
L Brands, Inc. | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 0 | 0 | 0 | 0 |
Marketable Securities, Current | 0 | |||
Accounts Receivable, Net | 1 | 1 | 1 | |
Inventories | 0 | 0 | 0 | |
Deferred Income Taxes | 0 | 0 | 0 | |
Other | 1 | 0 | 0 | |
Total Current Assets | 2 | 1 | 1 | |
Property and Equipment, Net | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Trade Names and Other Intangible Assets, Net | 0 | 0 | 0 | |
Net Investments in and Advances to/from Consolidated Affiliates | 3,979 | 4,635 | 4,337 | |
Other Assets | 179 | 188 | 184 | |
Total Assets | 4,160 | 4,824 | 4,522 | |
Current Liabilities: | ||||
Accounts Payable | 7 | 0 | 0 | |
Accrued Expenses and Other | 85 | 83 | 88 | |
Current Portion of Long-term Debt | 214 | |||
Income Taxes | 0 | (4) | 0 | |
Total Current Liabilities | 92 | 79 | 302 | |
Deferred Income Taxes | (3) | (4) | (4) | |
Long-term Debt | 4,759 | 4,765 | 4,758 | |
Other Long-term Liabilities | 0 | 0 | 1 | |
Total Equity (Deficit) | (688) | (16) | (535) | |
Total Liabilities and Equity (Deficit) | 4,160 | 4,824 | 4,522 | |
Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 453 | 1,462 | 920 | 1,353 |
Marketable Securities, Current | 50 | |||
Accounts Receivable, Net | 201 | 197 | 175 | |
Inventories | 980 | 919 | 947 | |
Deferred Income Taxes | 37 | 34 | 43 | |
Other | 141 | 146 | 131 | |
Total Current Assets | 1,862 | 2,758 | 2,216 | |
Property and Equipment, Net | 1,485 | 1,385 | 1,295 | |
Goodwill | 1,318 | 1,318 | 1,318 | |
Trade Names and Other Intangible Assets, Net | 411 | 411 | 411 | |
Net Investments in and Advances to/from Consolidated Affiliates | 15,589 | 14,003 | 15,123 | |
Other Assets | 40 | 35 | 21 | |
Total Assets | 20,705 | 19,910 | 20,384 | |
Current Liabilities: | ||||
Accounts Payable | 385 | 300 | 361 | |
Accrued Expenses and Other | 500 | 495 | 413 | |
Current Portion of Long-term Debt | 0 | |||
Income Taxes | 0 | 183 | (12) | |
Total Current Liabilities | 885 | 978 | 762 | |
Deferred Income Taxes | (26) | (32) | (18) | |
Long-term Debt | 597 | 597 | 597 | |
Other Long-term Liabilities | 619 | 609 | 586 | |
Total Equity (Deficit) | 18,630 | 17,758 | 18,457 | |
Total Liabilities and Equity (Deficit) | 20,705 | 19,910 | 20,384 | |
Non- guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 327 | 219 | 227 | 166 |
Marketable Securities, Current | 0 | |||
Accounts Receivable, Net | 55 | 54 | 57 | |
Inventories | 126 | 117 | 128 | |
Deferred Income Taxes | (2) | (1) | (16) | |
Other | 128 | 84 | 86 | |
Total Current Assets | 634 | 473 | 482 | |
Property and Equipment, Net | 790 | 892 | 869 | |
Goodwill | 0 | 0 | 0 | |
Trade Names and Other Intangible Assets, Net | 0 | 0 | 0 | |
Net Investments in and Advances to/from Consolidated Affiliates | 1,642 | 1,405 | 1,158 | |
Other Assets | 695 | 693 | 685 | |
Total Assets | 3,761 | 3,463 | 3,194 | |
Current Liabilities: | ||||
Accounts Payable | 333 | 313 | 261 | |
Accrued Expenses and Other | 255 | 322 | 242 | |
Current Portion of Long-term Debt | 0 | |||
Income Taxes | 5 | (13) | 13 | |
Total Current Liabilities | 593 | 622 | 516 | |
Deferred Income Taxes | 302 | 297 | 251 | |
Long-term Debt | 0 | 0 | 0 | |
Other Long-term Liabilities | 243 | 224 | 233 | |
Total Equity (Deficit) | 2,623 | 2,320 | 2,194 | |
Total Liabilities and Equity (Deficit) | 3,761 | 3,463 | 3,194 | |
Eliminations | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 0 | 0 | 0 | $ 0 |
Marketable Securities, Current | 0 | |||
Accounts Receivable, Net | 0 | 0 | 0 | |
Inventories | 0 | 0 | 0 | |
Deferred Income Taxes | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | |
Total Current Assets | 0 | 0 | 0 | |
Property and Equipment, Net | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Trade Names and Other Intangible Assets, Net | 0 | 0 | 0 | |
Net Investments in and Advances to/from Consolidated Affiliates | (21,210) | (20,043) | (20,618) | |
Other Assets | (612) | (610) | (612) | |
Total Assets | (21,822) | (20,653) | (21,230) | |
Current Liabilities: | ||||
Accounts Payable | 0 | 0 | 0 | |
Accrued Expenses and Other | 0 | 0 | 0 | |
Current Portion of Long-term Debt | 0 | |||
Income Taxes | 0 | 0 | 0 | |
Total Current Liabilities | 0 | 0 | 0 | |
Deferred Income Taxes | 0 | 0 | 0 | |
Long-term Debt | (597) | (597) | (597) | |
Other Long-term Liabilities | (13) | (13) | (14) | |
Total Equity (Deficit) | (21,212) | (20,043) | (20,619) | |
Total Liabilities and Equity (Deficit) | $ (21,822) | $ (20,653) | $ (21,230) |
Supplemental Guarantor Financ56
Supplemental Guarantor Financial Information (Consolidated Statements Of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Net Sales | $ 2,765 | $ 2,675 | $ 5,277 | $ 5,066 |
Cost of Goods and Services Sold | (1,651) | (1,631) | (3,107) | (3,040) |
Gross Profit | 1,114 | 1,044 | 2,170 | 2,026 |
Selling, General and Administrative Expense | (711) | (668) | (1,395) | (1,314) |
Operating Income (Loss) | 403 | 376 | 775 | 712 |
Interest Expense | (78) | (82) | (158) | (166) |
Other Nonoperating Income (Expense) | (2) | 2 | 76 | 5 |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | 323 | 296 | 693 | 551 |
Provision for Income Taxes | 121 | 108 | 240 | 206 |
Equity in Earnings (Loss), Net of Tax | 0 | 0 | 0 | 0 |
Net Income (Loss) | 202 | 188 | 453 | 345 |
Reclassification of Cash Flow Hedges to Earnings | (27) | 2 | (10) | 8 |
Foreign Currency Translation | 22 | (1) | 12 | (3) |
Unrealized Gain (Loss) on Cash Flow Hedges | 14 | (5) | 4 | (13) |
Current-period Other Comprehensive Income (Loss) | 9 | (4) | 6 | (8) |
Total Comprehensive Income | 211 | 184 | 459 | 337 |
L Brands, Inc. | ||||
Net Sales | 0 | 0 | 0 | 0 |
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 |
Gross Profit | 0 | 0 | 0 | 0 |
Selling, General and Administrative Expense | (2) | (1) | (6) | (4) |
Operating Income (Loss) | (2) | (1) | (6) | (4) |
Interest Expense | (78) | (82) | (158) | (166) |
Other Nonoperating Income (Expense) | 0 | 0 | 0 | 0 |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | (80) | (83) | (164) | (170) |
Provision for Income Taxes | 0 | 0 | 0 | (1) |
Equity in Earnings (Loss), Net of Tax | 282 | 271 | 617 | 514 |
Net Income (Loss) | 202 | 188 | 453 | 345 |
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 | 0 | 0 |
Foreign Currency Translation | 0 | 0 | 0 | 0 |
Unrealized Gain (Loss) on Cash Flow Hedges | 0 | 0 | 0 | 0 |
Current-period Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Total Comprehensive Income | 202 | 188 | 453 | 345 |
Guarantor Subsidiaries | ||||
Net Sales | 2,588 | 2,479 | 4,957 | 4,710 |
Cost of Goods and Services Sold | (1,607) | (1,549) | (3,031) | (2,908) |
Gross Profit | 981 | 930 | 1,926 | 1,802 |
Selling, General and Administrative Expense | (629) | (593) | (1,245) | (1,161) |
Operating Income (Loss) | 352 | 337 | 681 | 641 |
Interest Expense | (4) | (8) | (12) | (15) |
Other Nonoperating Income (Expense) | 0 | 0 | 4 | 0 |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | 348 | 329 | 673 | 626 |
Provision for Income Taxes | 90 | 56 | 168 | 118 |
Equity in Earnings (Loss), Net of Tax | 154 | 79 | 379 | 258 |
Net Income (Loss) | 412 | 352 | 884 | 766 |
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 | 0 | 0 |
Foreign Currency Translation | 0 | 0 | 0 | 0 |
Unrealized Gain (Loss) on Cash Flow Hedges | 0 | 0 | 0 | 0 |
Current-period Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Total Comprehensive Income | 412 | 352 | 884 | 766 |
Non- guarantor Subsidiaries | ||||
Net Sales | 814 | 773 | 1,630 | 1,557 |
Cost of Goods and Services Sold | (705) | (630) | (1,321) | (1,277) |
Gross Profit | 109 | 143 | 309 | 280 |
Selling, General and Administrative Expense | (106) | (104) | (202) | (207) |
Operating Income (Loss) | 3 | 39 | 107 | 73 |
Interest Expense | (3) | (2) | (5) | (4) |
Other Nonoperating Income (Expense) | (2) | 2 | 72 | 5 |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | (2) | 39 | 174 | 74 |
Provision for Income Taxes | 31 | 52 | 72 | 89 |
Equity in Earnings (Loss), Net of Tax | 130 | 81 | 253 | 250 |
Net Income (Loss) | 97 | 68 | 355 | 235 |
Reclassification of Cash Flow Hedges to Earnings | (27) | 2 | (10) | 8 |
Foreign Currency Translation | 22 | (1) | 12 | (3) |
Unrealized Gain (Loss) on Cash Flow Hedges | 14 | (5) | 4 | (13) |
Current-period Other Comprehensive Income (Loss) | 9 | (4) | 6 | (8) |
Total Comprehensive Income | 106 | 64 | 361 | 227 |
Eliminations | ||||
Net Sales | (637) | (577) | (1,310) | (1,201) |
Cost of Goods and Services Sold | 661 | 548 | 1,245 | 1,145 |
Gross Profit | 24 | (29) | (65) | (56) |
Selling, General and Administrative Expense | 26 | 30 | 58 | 58 |
Operating Income (Loss) | 50 | 1 | (7) | 2 |
Interest Expense | 7 | 10 | 17 | 19 |
Other Nonoperating Income (Expense) | 0 | 0 | 0 | 0 |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | 57 | 11 | 10 | 21 |
Provision for Income Taxes | 0 | 0 | 0 | 0 |
Equity in Earnings (Loss), Net of Tax | (566) | (431) | (1,249) | (1,022) |
Net Income (Loss) | (509) | (420) | (1,239) | (1,001) |
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 | 0 | 0 |
Foreign Currency Translation | 0 | 0 | 0 | 0 |
Unrealized Gain (Loss) on Cash Flow Hedges | 0 | 0 | 0 | 0 |
Current-period Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Total Comprehensive Income | $ (509) | $ (420) | $ (1,239) | $ (1,001) |
Supplemental Guarantor Financ57
Supplemental Guarantor Financial Information (Consolidated Statements Of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Aug. 01, 2015 | May. 02, 2015 | Aug. 02, 2014 | May. 03, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Net Cash Provided by Operating Activities | $ 375 | $ 446 | ||||
Investing Activities: | ||||||
Capital Expenditures | (358) | (349) | ||||
Proceeds from Sale of Other Assets | 135 | |||||
Proceeds from Sale of Equity Method Investments | 85 | 0 | ||||
Payments to Acquire Marketable Securities | (50) | 0 | ||||
Other Investing Activities | 1 | 15 | ||||
Net Cash Provided by (Used for) Investing Activities | (187) | (334) | ||||
Financing Activities: | ||||||
Proceeds from Long-term Lines of Credit | 0 | 5 | ||||
Repayments of Long-term Lines of Credit | 0 | (5) | ||||
Repurchase of Common Stock | (295) | (48) | ||||
Dividends Paid | $ (146) | $ (734) | $ (99) | $ (392) | (880) | (491) |
Excess Tax Benefits from Share-based Compensation | 61 | 37 | ||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 0 | 0 | ||||
Proceeds from Exercise of Stock Options and Other | 23 | 22 | ||||
Payments of Financing Costs | 0 | (5) | ||||
Net Cash Provided by (Used for) Financing Activities | (1,091) | (485) | ||||
Effects of Exchange Rate Changes on Cash and Cash Equivalents | 2 | 1 | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | (901) | (372) | ||||
Cash and Cash Equivalents, Beginning of Period | 1,681 | 1,519 | 1,681 | 1,519 | ||
Cash and Cash Equivalents, End of Period | 780 | 1,147 | 780 | 1,147 | ||
L Brands, Inc. | ||||||
Net Cash Provided by Operating Activities | (147) | (172) | ||||
Investing Activities: | ||||||
Capital Expenditures | 0 | 0 | ||||
Proceeds from Sale of Other Assets | 0 | |||||
Proceeds from Sale of Equity Method Investments | 0 | |||||
Payments to Acquire Marketable Securities | 0 | |||||
Other Investing Activities | 0 | 0 | ||||
Net Cash Provided by (Used for) Investing Activities | 0 | 0 | ||||
Financing Activities: | ||||||
Proceeds from Long-term Lines of Credit | 0 | |||||
Repayments of Long-term Lines of Credit | 0 | |||||
Repurchase of Common Stock | (295) | (48) | ||||
Dividends Paid | (880) | (491) | ||||
Excess Tax Benefits from Share-based Compensation | 0 | 0 | ||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 1,299 | 694 | ||||
Proceeds from Exercise of Stock Options and Other | 23 | 22 | ||||
Payments of Financing Costs | 5 | |||||
Net Cash Provided by (Used for) Financing Activities | 147 | 172 | ||||
Effects of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | 0 | 0 | ||||
Cash and Cash Equivalents, Beginning of Period | 0 | 0 | 0 | 0 | ||
Cash and Cash Equivalents, End of Period | 0 | 0 | 0 | 0 | ||
Guarantor Subsidiaries | ||||||
Net Cash Provided by Operating Activities | 481 | 514 | ||||
Investing Activities: | ||||||
Capital Expenditures | (254) | (248) | ||||
Proceeds from Sale of Other Assets | 0 | |||||
Proceeds from Sale of Equity Method Investments | 1 | |||||
Payments to Acquire Marketable Securities | 50 | |||||
Other Investing Activities | 0 | 0 | ||||
Net Cash Provided by (Used for) Investing Activities | (303) | (248) | ||||
Financing Activities: | ||||||
Proceeds from Long-term Lines of Credit | 0 | |||||
Repayments of Long-term Lines of Credit | 0 | |||||
Repurchase of Common Stock | 0 | 0 | ||||
Dividends Paid | 0 | 0 | ||||
Excess Tax Benefits from Share-based Compensation | 53 | 31 | ||||
Net Financing Activities and Advances to/from Consolidated Affiliates | (1,240) | (730) | ||||
Proceeds from Exercise of Stock Options and Other | 0 | 0 | ||||
Payments of Financing Costs | 0 | |||||
Net Cash Provided by (Used for) Financing Activities | (1,187) | (699) | ||||
Effects of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | (1,009) | (433) | ||||
Cash and Cash Equivalents, Beginning of Period | 1,462 | 1,353 | 1,462 | 1,353 | ||
Cash and Cash Equivalents, End of Period | 453 | 920 | 453 | 920 | ||
Non- guarantor Subsidiaries | ||||||
Net Cash Provided by Operating Activities | 41 | 104 | ||||
Investing Activities: | ||||||
Capital Expenditures | (104) | (101) | ||||
Proceeds from Sale of Other Assets | 135 | |||||
Proceeds from Sale of Equity Method Investments | 84 | |||||
Payments to Acquire Marketable Securities | 0 | |||||
Other Investing Activities | 1 | 15 | ||||
Net Cash Provided by (Used for) Investing Activities | 116 | (86) | ||||
Financing Activities: | ||||||
Proceeds from Long-term Lines of Credit | 5 | |||||
Repayments of Long-term Lines of Credit | 5 | |||||
Repurchase of Common Stock | 0 | 0 | ||||
Dividends Paid | 0 | 0 | ||||
Excess Tax Benefits from Share-based Compensation | 8 | 6 | ||||
Net Financing Activities and Advances to/from Consolidated Affiliates | (59) | 36 | ||||
Proceeds from Exercise of Stock Options and Other | 0 | 0 | ||||
Payments of Financing Costs | 0 | |||||
Net Cash Provided by (Used for) Financing Activities | (51) | 42 | ||||
Effects of Exchange Rate Changes on Cash and Cash Equivalents | 2 | 1 | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | 108 | 61 | ||||
Cash and Cash Equivalents, Beginning of Period | 219 | 166 | 219 | 166 | ||
Cash and Cash Equivalents, End of Period | 327 | 227 | 327 | 227 | ||
Eliminations | ||||||
Net Cash Provided by Operating Activities | 0 | 0 | ||||
Investing Activities: | ||||||
Capital Expenditures | 0 | 0 | ||||
Proceeds from Sale of Other Assets | 0 | |||||
Proceeds from Sale of Equity Method Investments | 0 | |||||
Payments to Acquire Marketable Securities | 0 | |||||
Other Investing Activities | 0 | 0 | ||||
Net Cash Provided by (Used for) Investing Activities | 0 | 0 | ||||
Financing Activities: | ||||||
Proceeds from Long-term Lines of Credit | 0 | |||||
Repayments of Long-term Lines of Credit | 0 | |||||
Repurchase of Common Stock | 0 | 0 | ||||
Dividends Paid | 0 | 0 | ||||
Excess Tax Benefits from Share-based Compensation | 0 | 0 | ||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 0 | 0 | ||||
Proceeds from Exercise of Stock Options and Other | 0 | 0 | ||||
Payments of Financing Costs | 0 | |||||
Net Cash Provided by (Used for) Financing Activities | 0 | 0 | ||||
Effects of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | 0 | 0 | ||||
Cash and Cash Equivalents, Beginning of Period | $ 0 | $ 0 | 0 | 0 | ||
Cash and Cash Equivalents, End of Period | $ 0 | $ 0 | $ 0 | $ 0 |
Subsequent Event (Details)
Subsequent Event (Details) - June 2015 Repurchase Program [Member] - USD ($) shares in Thousands, $ in Millions | 1 Months Ended | 6 Months Ended |
Sep. 02, 2015 | Aug. 01, 2015 | |
Subsequent Event [Line Items] | ||
Shares Repurchased | 624 | |
Amount Repurchased | $ 52 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Shares Repurchased | 700 | |
Amount Repurchased | $ 61 |
Uncategorized Items - lb-201508
Label | Element | Value |
Fixed Rate 5.25% Notes Due November 2014 [Member] | ||
Interest Rate Fair Value Hedge Derivative at Fair Value, Net | us-gaap_InterestRateFairValueHedgeDerivativeAtFairValueNet | $ 1 |
Fixed Rate 6.90% Notes Due July 2017 [Member] | ||
Interest Rate Fair Value Hedge Derivative at Fair Value, Net | us-gaap_InterestRateFairValueHedgeDerivativeAtFairValueNet | 11 |
Interest Rate Fair Value Hedge Derivative at Fair Value, Net | us-gaap_InterestRateFairValueHedgeDerivativeAtFairValueNet | 15 |
Interest Rate Fair Value Hedge Derivative at Fair Value, Net | us-gaap_InterestRateFairValueHedgeDerivativeAtFairValueNet | 16 |
Fixed Rate 8.50% Notes Due June 2019 [Member] | ||
Interest Rate Fair Value Hedge Derivative at Fair Value, Net | us-gaap_InterestRateFairValueHedgeDerivativeAtFairValueNet | 2 |
Interest Rate Fair Value Hedge Derivative at Fair Value, Net | us-gaap_InterestRateFairValueHedgeDerivativeAtFairValueNet | 5 |
Interest Rate Fair Value Hedge Derivative at Fair Value, Net | us-gaap_InterestRateFairValueHedgeDerivativeAtFairValueNet | $ 8 |