Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Jan. 28, 2017 | Mar. 10, 2017 | Jul. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 28, 2017 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | LB | ||
Entity Registrant Name | L Brands, Inc. | ||
Entity Central Index Key | 701,985 | ||
Current Fiscal Year End Date | --01-28 | ||
Entity Common Stock, Shares Outstanding | 285,048,417 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 17,899,799,054 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May 02, 2015 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |||
Net Sales | $ 4,489 | $ 2,581 | $ 2,890 | $ 2,614 | $ 4,395 | $ 2,482 | $ 2,765 | $ 2,512 | $ 12,574 | $ 12,154 | $ 11,454 | ||
Costs of Goods Sold, Buying and Occupancy | 7,449 | 6,950 | 6,646 | ||||||||||
Gross Profit | 1,944 | 1,025 | 1,113 | 1,043 | 2,002 | 1,031 | 1,114 | 1,056 | 5,125 | 5,204 | 4,808 | ||
General, Administrative and Store Operating Expenses | 3,122 | 3,012 | 2,855 | ||||||||||
Operating Income | 988 | 284 | 408 | 323 | 1,078 | 339 | 403 | 372 | 2,003 | 2,192 | [1] | 1,953 | [1] |
Interest Expense | 394 | 334 | 324 | ||||||||||
Other Income | 87 | 76 | 7 | ||||||||||
Income Before Income Taxes | 893 | 190 | 380 | 233 | 982 | 260 | 323 | 369 | 1,696 | 1,934 | 1,636 | ||
Provision for Income Taxes | 538 | 681 | 594 | ||||||||||
Net Income | $ 632 | $ 122 | $ 252 | $ 152 | $ 636 | $ 164 | $ 202 | $ 250 | $ 1,158 | $ 1,253 | $ 1,042 | ||
Net Income Per Basic Share | $ 2.21 | $ 0.43 | $ 0.88 | $ 0.53 | $ 2.19 | $ 0.56 | $ 0.69 | $ 0.86 | $ 4.04 | $ 4.30 | $ 3.57 | ||
Net Income Per Diluted Share | $ 2.18 | $ 0.42 | $ 0.87 | $ 0.52 | $ 2.15 | $ 0.55 | $ 0.68 | $ 0.84 | $ 3.98 | $ 4.22 | $ 3.50 | ||
[1] | Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. |
Consoldiated Statements of Comp
Consoldiated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May 02, 2015 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Net Income | $ 632 | $ 122 | $ 252 | $ 152 | $ 636 | $ 164 | $ 202 | $ 250 | $ 1,158 | $ 1,253 | $ 1,042 |
Other Comprehensive Income (Loss), Net of Tax | |||||||||||
Foreign Currency Translation | (19) | (23) | 21 | ||||||||
Unrealized Gain (Loss) on Cash Flow Hedges | (8) | 6 | 34 | ||||||||
Reclassification of Cash Flow Hedges to Earnings | 7 | 14 | (60) | ||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (5) | 8 | 0 | ||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (3) | 0 | 0 | ||||||||
Total Other Comprehensive Income (Loss), Net of Tax | (28) | 5 | (5) | ||||||||
Total Comprehensive Income | $ 1,130 | $ 1,258 | $ 1,037 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jan. 28, 2017 | Jan. 30, 2016 |
Current Assets: | ||
Cash and Cash Equivalents | $ 1,934 | $ 2,548 |
Accounts Receivable, Net | 294 | 261 |
Inventories | 1,096 | 1,122 |
Other | 141 | 225 |
Total Current Assets | 3,465 | 4,156 |
Property and Equipment, Net | 2,741 | 2,330 |
Goodwill | 1,348 | 1,318 |
Trade Names and Other Intangible Assets, Net | 411 | 411 |
Deferred Tax Assets, Net, Noncurrent | 19 | 30 |
Other Assets | 186 | 248 |
Total Assets | 8,170 | 8,493 |
Current Liabilities: | ||
Accounts Payable | 683 | 668 |
Accrued Expenses and Other | 997 | 977 |
Debt, Current | 36 | 6 |
Income Taxes | 298 | 224 |
Total Current Liabilities | 2,014 | 1,875 |
Deferred Income Taxes | 352 | 257 |
Long-term Debt | 5,700 | 5,715 |
Other Long-term Liabilities | 831 | 904 |
Shareholders' Equity (Deficit): | ||
Preferred Stock—$1.00 par value; 10 shares authorized; none issued | 0 | 0 |
Common Stock—$0.50 par value; 1,000 shares authorized; 315 and 313 shares issued; 286 and 290 shares outstanding, respectively | 157 | 156 |
Paid-in Capital | 650 | 545 |
Accumulated Other Comprehensive Income | 12 | 40 |
Retained Earnings | 205 | 315 |
Less: Treasury Stock, at Average Cost; 29 and 23 shares, respectively | (1,753) | (1,315) |
Total L Brands, Inc. Shareholders’ Equity (Deficit) | (729) | (259) |
Noncontrolling Interest | 2 | 1 |
Total Equity (Deficit) | (727) | (258) |
Total Liabilities and Equity (Deficit) | $ 8,170 | $ 8,493 |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 28, 2017 | Jan. 30, 2016 |
Preferred Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.5 | $ 0.5 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Issued | 315,000,000 | 313,000,000 |
Common Stock, Shares, Outstanding | 286,000,000 | 290,000,000 |
Treasury Stock, Shares | 29,000,000 | 23,000,000 |
Consolidated Statements of Tota
Consolidated Statements of Total Equity (Deficit) - USD ($) shares in Thousands, $ in Millions | Total | Common Stock [Member] | Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) [Member] | Treasury Stock, at Average Cost [Member] | Noncontrolling Interest [Member] |
Ending Balance (in shares) | 291,000 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 2.36 | ||||||
Beginning Balance at Feb. 01, 2014 | $ (369) | $ 154 | $ 302 | $ 40 | $ (118) | $ (748) | $ 1 |
Net Income | 1,042 | 0 | 0 | 0 | 1,042 | 0 | 0 |
Other Comprehensive Income (Loss) | (5) | 0 | 0 | (5) | 0 | 0 | 0 |
Total Comprehensive Income (Loss) | 1,037 | 0 | 0 | (5) | 1,042 | 0 | 0 |
Dividends, Common Stock, Cash | $ (691) | $ 0 | 0 | 0 | (691) | 0 | 0 |
Treasury Stock, Shares, Acquired | 1,317 | 1,000 | |||||
Repurchase of Common Stock | $ (84) | $ 0 | 0 | 0 | 0 | (84) | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 2,000 | ||||||
Exercise of Stock Options and Other | 126 | $ 1 | 125 | 0 | 0 | 0 | 0 |
Ending Balance at Jan. 31, 2015 | $ 19 | $ 155 | 427 | 35 | 233 | (832) | 1 |
Ending Balance (in shares) | 292,000 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 4 | ||||||
Net Income | $ 1,253 | $ 0 | 0 | 0 | 1,253 | 0 | 0 |
Other Comprehensive Income (Loss) | 5 | 0 | 0 | 5 | 0 | 0 | 0 |
Total Comprehensive Income (Loss) | 1,258 | 0 | 0 | 5 | 1,253 | 0 | 0 |
Dividends, Common Stock, Cash | $ (1,171) | $ 0 | 0 | 0 | (1,171) | 0 | 0 |
Treasury Stock, Shares, Acquired | 5,468 | 5,000 | |||||
Repurchase of Common Stock | $ (483) | $ 0 | 0 | 0 | 0 | (483) | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 3,000 | ||||||
Exercise of Stock Options and Other | 119 | $ 1 | 118 | 0 | 0 | 0 | 0 |
Ending Balance at Jan. 30, 2016 | $ (258) | $ 156 | 545 | 40 | 315 | (1,315) | 1 |
Ending Balance (in shares) | 290,000 | 290,000 | |||||
Common Stock, Dividends, Per Share, Declared | $ 4.40 | ||||||
Net Income | $ 1,158 | $ 0 | 0 | 0 | 1,158 | 0 | 0 |
Other Comprehensive Income (Loss) | (28) | 0 | 0 | (28) | 0 | 0 | 0 |
Total Comprehensive Income (Loss) | 1,130 | 0 | 0 | (28) | 1,158 | 0 | 0 |
Dividends, Common Stock, Cash | $ (1,268) | $ 0 | 0 | 0 | (1,268) | 0 | 0 |
Treasury Stock, Shares, Acquired | 5,719 | 6,000 | |||||
Repurchase of Common Stock | $ (438) | $ 0 | 0 | 0 | 0 | (438) | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 639 | 2,000 | |||||
Exercise of Stock Options and Other | $ 107 | $ 1 | 105 | 0 | 0 | 0 | |
Net Income (Loss) Attributable to Noncontrolling Interest | 1 | ||||||
Ending Balance at Jan. 28, 2017 | $ (727) | $ 157 | $ 650 | $ 12 | $ 205 | $ (1,753) | $ 2 |
Ending Balance (in shares) | 286,000 | 286,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Net Income (Loss) Attributable to Parent | $ 1,158 | $ 1,253 | $ 1,042 |
Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: | |||
Depreciation and Amortization of Long-lived Assets | 518 | 457 | 438 |
Amortization of Landlord Allowances | (46) | (42) | (40) |
Deferred Income Taxes | 110 | 11 | 50 |
Share-based Compensation Expense | 96 | 97 | 90 |
Excess Tax Benefits from Share-based Compensation | (42) | (70) | (43) |
Gain (Loss) on Equity Method Investment Dividends Or Distributions | 108 | 0 | 0 |
Gains (Losses) on Extinguishment of Debt | (36) | 0 | 0 |
Gain (Loss) on Cost Method Investment Dividends or Distributions | 4 | 0 | 0 |
Available-for-sale Securities, Gross Realized Gains | 4 | 0 | 0 |
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | 78 | 0 |
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 0 | (2) | 0 |
Changes in Assets and Liabilities, Net of Assets and Liabilities related to Divestitures: | |||
Accounts Receivable | (44) | (10) | (9) |
Inventories | 30 | (92) | 121 |
Accounts Payable, Accrued Expenses and Other | (27) | 49 | 90 |
Income Taxes Payable | 117 | 131 | (17) |
Other Assets and Liabilities | 100 | 161 | 64 |
Net Cash Provided by (Used for) Operating Activities | 1,890 | 1,869 | 1,786 |
Investing Activities | |||
Capital Expenditures | (990) | (727) | (715) |
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 108 | 0 | 0 |
Payments to Acquire Businesses, Net of Cash Acquired | (33) | 0 | 0 |
Proceeds from Sale of Other Assets, Investing Activities | 53 | 196 | 0 |
Proceeds from Sale and Maturity of Marketable Securities | 10 | 50 | 0 |
Proceeds from Sale of Equity Method Investments | 0 | 85 | 0 |
Payments to Acquire Marketable Securities | 0 | (60) | 0 |
Other Investing Activities | 19 | 13 | 16 |
Net Cash Used for Investing Activities | (833) | (443) | (699) |
Financing Activities | |||
Proceeds from Debt, Net of Issuance Costs | 692 | 988 | 0 |
Repayments of Long-term Debt | (742) | 0 | (213) |
Borrowings from Debt Facilities | 35 | 7 | 5 |
Repayments of Lines of Credit | (6) | 0 | (5) |
Payments of Dividends | (1,268) | (1,171) | (691) |
Repurchases of Common Stock | (435) | (483) | (87) |
Excess Tax Benefits from Share-based Compensation | 42 | 70 | 43 |
Proceeds from Stock Options Exercised | 20 | 33 | 35 |
Proceeds from (Payments for) Other Financing Activities | (3) | (2) | (6) |
Net Cash Provided by (Used for) Financing Activities | (1,665) | (558) | (919) |
Effects of Exchange Rate Changes on Cash | (6) | (1) | (6) |
Net Increase (Decrease) in Cash and Cash Equivalents | (614) | 867 | 162 |
Cash and Cash Equivalents, Beginning of Year | 2,548 | 1,681 | 1,519 |
Cash and Cash Equivalents, End of Year | $ 1,934 | $ 2,548 | $ 1,681 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 28, 2017 | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business L Brands, Inc. (“the Company”) operates in the highly competitive specialty retail business. The Company is a specialty retailer of women’s intimate and other apparel, personal care, beauty and home fragrance categories. The Company sells its merchandise through company-owned specialty retail stores in the U.S., Canada, U.K. and Greater China, 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 • 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, “ 2016 ”, “ 2015 ” and “ 2014 ” refer to the 52 -week periods ending January 28, 2017 , January 30, 2016 and January 31, 2015 , respectively. 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's net income or loss. Losses are only recognized to the extent the Company has positive carrying value related to the investee. Carrying values are only reduced below zero if the Company has an obligation to provide funding to the investee. The Company’s share of net income or loss of unconsolidated entities from which the Company purchases merchandise or merchandise components is included in Costs of Goods Sold, Buying and Occupancy on the Consolidated Statements of Income. The Company’s share of net income or loss of all other unconsolidated entities is included in Other Income on the Consolidated Statements of Income. The Company’s equity investments are required to be reviewed for impairment when it is determined there may be an other than temporary loss in value. Cash and Cash Equivalents Cash and Cash Equivalents include cash on hand, demand deposits with financial institutions and highly liquid investments with original maturities of less than 90 days. The Company’s outstanding checks, which totaled $5 million as of January 28, 2017 and $30 million as of January 30, 2016 , are included in Accounts Payable on the Consolidated Balance Sheets. Concentration of Credit Risk The Company maintains cash and cash equivalents and derivative contracts with various major financial institutions. The Company monitors the relative credit standing of financial institutions with whom the Company transacts and limits the amount of credit exposure with any one entity. Typically, the Company’s investment portfolio is primarily comprised of U.S. government obligations, U.S. Treasury and AAA-rated money market funds, 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. The Company records an allowance for uncollectable accounts when it becomes probable that the counterparty will be unable to pay. Marketable Equity Securities The Company has marketable equity securities which are classified as available-for-sale. The Company determines the appropriate classification of investments in equity securities at the acquisition date and re-evaluates the classification at each balance sheet date. This investment is recorded at fair value in other current assets on the Consolidated Balance Sheets, and unrealized holding gains and losses are recorded, net of tax, as a component of accumulated other comprehensive income. Inventories Inventories are principally valued at the lower of cost or market, on a weighted-average cost basis. The Company records valuation adjustments to its inventories if the cost of inventory on hand exceeds the amount it expects to realize from the ultimate sale or disposal of the inventory. These estimates are based on management’s judgment regarding future demand and market conditions and analysis of historical experience. The Company also records inventory loss adjustments for estimated physical inventory losses that have occurred since the date of the last physical inventory. These estimates are based on management’s analysis of historical results and operating trends. Advertising Costs Advertising and catalogue costs are expensed at the time the promotion first appears in media, in the store or when the advertising is mailed. Advertising and catalogue costs totaled $325 million for 2016 , $414 million for 2015 and $436 million for 2014 . Property and Equipment The Company’s property and equipment are recorded at cost and depreciation/amortization is computed on a straight-line basis using the following depreciable life ranges: Category of Property and Equipment Depreciable Life Range Software, including software developed for internal use 3 - 7 years Store related assets 3 - 10 years Leasehold improvements Shorter of lease term or 10 years Non-store related building and site improvements 10 - 15 years Other property and equipment 20 years Buildings 30 years When a decision has been made to dispose of property and equipment prior to the end of the previously estimated useful life, depreciation estimates are revised to reflect the use of the asset over the shortened estimated useful life. The Company’s cost of assets sold or retired and the related accumulated depreciation are removed from the accounts with any resulting gain or loss included in net income. Maintenance and repairs are charged to expense as incurred. Major renewals and betterments that extend useful lives are capitalized. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset. Goodwill and Intangible Assets The Company has certain intangible assets resulting from business combinations and acquisitions that are recorded at cost. Intangible assets with finite lives are amortized on a straight-line basis over their respective estimated useful lives. Intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset. Goodwill is reviewed for impairment each year in the fourth quarter and may be reviewed more frequently if certain events occur or circumstances change. First, the Company performs a qualitative assessment to determine whether it is more likely than not that each reporting unit's fair value is less than its carrying value, including goodwill. If the Company determines that it is more likely than not that the fair value of the reporting unit is less than its carrying value, the Company then estimates the fair value of all assets and liabilities of that reporting unit, including the implied fair value of goodwill, through either estimated discounted future cash flows or market-based methodologies. If the carrying value of goodwill exceeds the implied fair value, the Company recognizes an impairment charge equal to the difference. The Company's reporting units are determined in accordance with the provisions of Accounting Standards Codification ("ASC") Topic 350, Intangibles - Goodwill and Other . The Company's reporting units that have goodwill are Victoria's Secret Stores, Victoria's Secret Direct, Bath & Body Works Stores and Greater China. Intangible assets with indefinite lives are reviewed for impairment each year in the fourth quarter and may be reviewed more frequently if certain events occur or circumstances change. The Company first performs a qualitative assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. If the Company determines that it is more likely than not that the fair value of the asset is less than its carrying amount, the Company estimates the fair value, usually determined by the estimated discounted future cash flows of the asset, compare that value with its carrying amount and record an impairment charge, if any. If future economic conditions are different than those projected by management, future impairment charges may be required. Leases and Leasehold Improvements The Company has leases that contain predetermined fixed escalations of minimum rentals and/or rent abatements subsequent to taking possession of the leased property. The Company recognizes the related rent expense on a straight-line basis commencing upon the store possession date. The Company records the difference between the recognized rental expense and amounts payable under the leases as deferred lease credits. The Company’s liability for predetermined fixed escalations of minimum rentals and/or rent abatements totaled $191 million as of January 28, 2017 and $150 million as of January 30, 2016 . These liabilities are included in Other Long-term Liabilities on the Consolidated Balance Sheets. The Company receives construction allowances from landlords related to its retail stores. These allowances are generally comprised of cash amounts received by the Company from its landlords as part of the negotiated lease terms. The Company records a receivable and a landlord allowance at the lease commencement date (date of initial possession of the store). The landlord allowance is amortized on a straight-line basis as a reduction of rent expense over the term of the lease (including the pre-opening build-out period), and the receivable is reduced as amounts are received from the landlord. The Company’s unamortized portion of landlord allowances, which totaled $279 million as of January 28, 2017 and $212 million as of January 30, 2016 , is included in Other Long-term Liabilities on the Consolidated Balance Sheets. The Company also has leasehold improvements which are amortized over the shorter of their estimated useful lives or the period from the date the assets are placed in service to the end of the initial lease term. Leasehold improvements made after the inception of the initial lease term are depreciated over the shorter of their estimated useful lives or the remaining lease term, including renewal periods, if reasonably assured. Foreign Currency Translation The functional currency of the Company’s foreign operations is generally the applicable local currency. Assets and liabilities are translated into U.S. dollars using the current exchange rates in effect as of the balance sheet date, while revenues and expenses are translated at the average exchange rates for the period. The Company’s resulting translation adjustments are recorded as a component of Comprehensive Income in the Consolidated Statements of Comprehensive Income and the Consolidated Statements of Total Equity (Deficit). Derivative Financial Instruments The Company uses derivative financial instruments to manage exposure to foreign currency exchange rates and interest rates. The Company does not use derivative instruments for trading purposes. All derivative instruments are recorded on the Consolidated Balance Sheets at fair value. For derivative financial instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (loss) in shareholders’ equity and reclassified into earnings in the same period during which the hedged item affects earnings. Gains and losses that are reclassified into earnings are recognized in the same line item on the Consolidated Statement of Income as the underlying hedged item. Gains and losses on the derivative representing hedge ineffectiveness, if any, are recognized in current earnings. For derivative financial instruments that are designated and qualify as fair value hedges, the change in the fair value of the derivative instrument has an equal and offsetting impact to the carrying value of the liability on the balance sheet. For derivative financial instruments that are not designated as hedging instruments, the gain or loss on the derivative instrument is recognized in current earnings in Other Income in the Consolidated Statements of Income. Fair Value The authoritative guidance included in ASC Topic 820, Fair Value Measurement, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. This authoritative guidance further establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1—Quoted market prices in active markets for identical assets or liabilities. • Level 2—Observable inputs other than quoted market prices included in Level 1, such as quoted prices of similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company estimates the fair value of financial instruments, property and equipment and goodwill and intangible assets in accordance with the provisions of ASC Topic 820 . Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, taxes currently payable or refundable are accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are also recognized for realizable operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted income tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in income tax rates is recognized in the Company’s Consolidated Statement of Income in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if it is more likely than not that such assets will not be realized. U.S. deferred income taxes are not provided on undistributed income of foreign subsidiaries where such earnings are considered to be permanently reinvested for the foreseeable future. In determining the Company’s provision for income taxes, the Company considers permanent differences between book and tax income and statutory income tax rates. The Company’s effective income tax rate is affected by items including changes in tax law, the tax jurisdiction of new stores or business ventures and the level of earnings. The Company follows a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. The Company’s income tax returns, like those of most companies, are periodically audited by domestic and foreign tax authorities. These audits include questions regarding the Company’s tax filing positions, including the timing and amount of deductions and the allocation of income among various tax jurisdictions. At any one time, multiple tax years are subject to audit by the various tax authorities. A number of years may elapse before a particular matter for which the Company has established an accrual is audited and fully resolved or clarified. The Company adjusts its tax contingencies accrual and income tax provision in the period in which matters are effectively settled with tax authorities at amounts different from its established accrual, when the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. The Company includes its tax contingencies accrual, including accrued penalties and interest, in Other Long-term Liabilities on the Consolidated Balance Sheets unless the liability is expected to be paid within one year. Changes to the tax contingencies accrual, including accrued penalties and interest, are included in Provision for Income Taxes on the Consolidated Statements of Income. Self-Insurance The Company is self-insured for medical, workers’ compensation, property, general liability and automobile liability up to certain stop-loss limits. Such costs are accrued based on known claims and an estimate of incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information and actuarial estimates. Noncontrolling Interest Noncontrolling interest represents the portion of equity interests of consolidated affiliates not owned by the Company. Share-based Compensation The Company recognizes all share-based payments to employees and directors as compensation cost over the service period based on their estimated fair value on the date of grant. Compensation cost is recognized over the service period for the fair value of awards that actually vest. Compensation expense for awards without a performance condition is recognized, net of estimated forfeitures, using a single award approach (each award is valued as one grant, irrespective of the number of vesting tranches). Compensation expense for awards with a performance condition is recognized, net of estimated forfeitures, using a multiple award approach (each vesting tranche is valued as one grant). Revenue Recognition The Company recognizes sales upon customer receipt of the merchandise, which for direct channel revenues reflects an estimate of shipments that have not yet been received by the customer based on shipping terms and historical delivery times. The Company’s shipping and handling revenues are included in Net Sales with the related costs included in Costs of Goods Sold, Buying and Occupancy on the Consolidated Statements of Income. The Company also provides a reserve for projected merchandise returns based on prior experience. Net Sales exclude sales tax collected from customers. The Company’s brands sell gift cards with no expiration dates to customers. The Company does not charge administrative fees on unused gift cards. The Company recognizes revenue from gift cards when they are redeemed by the customer. In addition, the Company recognizes revenue on unredeemed gift cards when it can determine that the likelihood of the gift card being redeemed is remote and that there is no legal obligation to remit the unredeemed gift cards to relevant jurisdictions (gift card breakage). The Company determines the gift card breakage rate based on historical redemption patterns. Gift card breakage is included in Net Sales in the Consolidated Statements of Income. The Company also recognizes revenues associated with franchise, license and wholesale arrangements. Revenue recognized under franchise and license arrangements generally consists of royalties earned and recognized upon sale of merchandise by franchise and license partners to retail customers. Revenue is generally recognized under wholesale and sourcing arrangements at the time the title passes to the partner. Costs of Goods Sold, Buying and Occupancy The Company’s costs of goods sold include merchandise costs, net of discounts and allowances, freight and inventory shrinkage. The Company’s buying and occupancy expenses primarily include payroll, benefit costs and operating expenses for its buying departments and distribution network, rent, common area maintenance, real estate taxes, utilities, maintenance, fulfillment expenses and depreciation for the Company’s stores, warehouse facilities and equipment. General, Administrative and Store Operating Expenses The Company’s general, administrative and store operating expenses primarily include payroll and benefit costs for its store-selling and administrative departments (including corporate functions), marketing, advertising and other operating expenses not specifically categorized elsewhere in the Consolidated Statements of Income. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. Actual results may differ from those estimates, and the Company revises its estimates and assumptions as new information becomes available. |
New Accounting Pronouncements (
New Accounting Pronouncements (Notes) | 12 Months Ended |
Jan. 28, 2017 | |
New Accounting Pronouncements Text Block [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | New Accounting Pronouncements Revenue 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 , which has been further clarified and amended in 2015 and 2016. 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 continues to evaluate the impacts of this standard. The most significant changes to current accounting relate to the points earned under the Victoria's Secret customer loyalty program and the accounting for sales returns. The new standard will require a deferral of revenue associated with loyalty points using a relative fair value approach, and also requires sales returns to be presented on a gross basis with the sales refund liability presented separately from the return asset. The Company is continuing to evaluate the further impacts the standard will have on the Consolidated Statements of Income and Comprehensive Income, Balance Sheets and Statements of Cash Flows. The Company will adopt the standard in the first quarter of fiscal 2018, and is currently evaluating the transition method. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases . This guidance requires companies classified as lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to today’s accounting. The new standard also will result in enhanced quantitative and qualitative disclosures, including significant judgments made by management, to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing leases. The standard requires modified retrospective adoption and will be effective beginning in fiscal 2019, with early adoption permitted. The Company is currently evaluating the impacts that this standard will have on its Consolidated Statements of Income and Comprehensive Income, Balance Sheets and Statements of Cash Flows, including period of adoption. The Company currently expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption. Thus, the Company expects adoption will result in a material increase to the assets and liabilities on the Consolidated Balance Sheet. Simplifying the Presentation of Share-Based Compensation In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting . This guidance requires companies to recognize income tax effects of awards in the income statement when the awards vest or are settled. It also will allow an employer to repurchase more of an employee’s shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. The standard also will require all tax-related cash flows resulting from share-based payments to be reported as operating activities on the statements of cash flows, and any cash payments made to taxing authorities on an employee's behalf as financing activities. The standard is effective beginning in fiscal 2017. This standard is expected to result in increased volatility to the income tax expense in future periods dependent upon, among other variables, the price of the Company's common stock and the timing and volume of share-based payment award activity, such as employee exercises of stock options and vesting of restricted stock awards. Further, the standard is expected to impact the operating and financing cash flows on the Consolidated Statements of Cash Flows. The Company does not expect any further material impacts on its Consolidated Statements of Income and Comprehensive Income, Balance Sheets and Statements of Cash Flows. The Company will adopt ASU 2016-09 in the first quarter of 2017. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 28, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Earnings per basic share is 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 2016 , 2015 and 2014 : 2016 2015 2014 (in millions) Weighted-average Common Shares: Issued Shares 314 312 309 Treasury Shares (27 ) (21 ) (17 ) Basic Shares 287 291 292 Effect of Dilutive Options and Restricted Stock 4 6 6 Diluted Shares 291 297 298 Anti-dilutive Options and Awards (a) 2 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. |
Acquisition Acquisition
Acquisition Acquisition | 12 Months Ended |
Jan. 28, 2017 | |
Acquisition [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisition On April 18, 2016, the Company completed the acquisition of 100% of the shares of American Beauty Limited for a total purchase price of $44 million . This agreement included the reacquisition of the franchise rights from one of our partners to operate Victoria's Secret Beauty and Accessories stores in Greater China, including 26 stores already open at the time of acquisition. The purchase price included $10 million in forgiveness of liabilities owed to the Company from the pre-existing relationship. As a result of this acquisition, the Company's financial statements now include the financial results of American Beauty Limited, which are reported as part of the Victoria's Secret and Bath & Body Works International segment. The total purchase price was allocated to the net tangible and intangible assets acquired based on their estimated fair value. Such estimated fair values require management to make estimates and judgments, especially with respect to intangible assets. The allocation of the purchase price to goodwill was complete as of the second quarter of 2016. Goodwill related to the acquisition is not deductible for tax purposes. The allocation of the purchase price to the fair value of assets acquired and liabilities assumed is as follows: (in millions) Cash and Cash Equivalents $ 1 Inventories 3 Property and Equipment 10 Goodwill 30 Other Assets 3 Current Liabilities (3 ) Net Assets Acquired $ 44 Forgiveness of Liabilities Owed to the Company (10 ) Consideration Paid $ 34 |
Restructuring Activities (Notes
Restructuring Activities (Notes) | 12 Months Ended |
Jan. 28, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring Activities During the first quarter of 2016, the Company announced strategic actions within the Victoria’s Secret segment designed to focus the brand on its core merchandise categories and streamline operations. The Company announced it will place more focus on brand building and loyalty-enhancing marketing and advertising rather than using traditional catalogues and offers. As a result of these actions, the Company recorded charges related to cancellations of fabric commitments for non-go forward merchandise and a reserve against paper that was previously intended for future catalogues. These costs, totaling $11 million , including non-cash charges of $10 million , are included in Cost of Goods Sold, Buying and Occupancy on the 2016 Consolidated Statement of Income. These actions also resulted in the elimination of approximately 200 positions primarily in the Company's Ohio and New York home offices. Severance and related costs associated with these eliminations, totaling $24 million , are included in General, Administrative and Store Operating Expenses on the 2016 Consolidated Statement of Income. The Company recognized a total pre-tax charge of $35 million for these items in the first quarter of 2016. Through the fourth quarter of 2016, the Company made cash payments of $16 million and decreased the estimate of expected severance and related costs by $4 million . The remaining balance of $5 million is included in Accrued Expenses and Other on the January 28, 2017 Consolidated Balance Sheet. |
Inventories
Inventories | 12 Months Ended |
Jan. 28, 2017 | |
Inventories | Inventories The following table provides details of inventories as of January 28, 2017 and January 30, 2016 : January 28, January 30, (in millions) Finished Goods Merchandise $ 982 $ 1,014 Raw Materials and Merchandise Components 114 108 Total Inventories $ 1,096 $ 1,122 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 28, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net The following table provides details of property and equipment, net as of January 28, 2017 and January 30, 2016 : January 28, January 30, (in millions) Land and Improvements $ 113 $ 108 Buildings and Improvements 476 460 Furniture, Fixtures, Software and Equipment 3,560 3,181 Leasehold Improvements 2,044 1,809 Construction in Progress 89 81 Total 6,282 5,639 Accumulated Depreciation and Amortization (3,541 ) (3,309 ) Property and Equipment, Net $ 2,741 $ 2,330 Depreciation expense was $518 million in 2016 , $457 million in 2015 and $438 million in 2014 . In 2016 and 2015, the Company completed sale and leaseback transactions under noncancellable operating leases of certain assets. The carrying value of assets sold under these arrangements was $51 million and $177 million for 2016 and 2015 , respectively. Proceeds of $51 million and $178 million are included in Proceeds from Sale of Assets within the Investing Activities section of the Consolidated Statements of Cash Flows. For additional information, see Note 17 , "Commitments and Contingencies." |
Goodwill, Trade Names and Other
Goodwill, Trade Names and Other Intangible Assets, Net | 12 Months Ended |
Jan. 28, 2017 | |
Goodwill, Trade Names and Other Intangible Assets, Net [Abstract] | |
Goodwill, Trade Names and Other Intangible Assets, Net | Goodwill, Trade Names and Other Intangible Assets, Net Goodwill The following table provides detail regarding the composition of goodwill for the fiscal years ended January 28, 2017 and January 30, 2016 : January 28, 2017 January 30, 2016 (in millions) Victoria's Secret $ 690 $ 690 Bath & Body Works 628 628 Victoria's Secret and Bath & Body Works International 30 — Goodwill $ 1,348 $ 1,318 In 2016, the Company reacquired from one of its partners the franchise rights to operate Victoria's Secret Beauty and Accessories stores in Greater China, including 26 stores already open at the time of acquisition. As a result of the acquisition, the Company recognized $30 million of goodwill within the Victoria's Secret and Bath & Body Works International reportable segment. For additional information, see Note 4 , "Acquisition." The Company tests for goodwill impairment at the reporting unit level. The Company's reporting units with goodwill balances at January 28, 2017 were Victoria's Secret Stores, Victoria's Secret Direct, Bath & Body Works Stores and Greater China. Intangible Assets—Indefinite Lives Intangible assets with indefinite lives represent the Victoria’s Secret and Bath & Body Works trade names which are included in Trade Names and Other Intangible Assets, Net on the Consolidated Balance Sheets. The following table provides additional detail regarding the composition of trade names as of January 28, 2017 and January 30, 2016 : January 28, 2017 January 30, 2016 (in millions) Victoria's Secret $ 246 $ 246 Bath & Body Works 165 165 Trade Names $ 411 $ 411 Intangible Assets—Finite Lives Intangible assets with finite lives represent certain trademarks and customer relationships. These assets were fully amortized in 2013. |
Equity Investments and Other
Equity Investments and Other | 12 Months Ended |
Jan. 28, 2017 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |
Equity Investments and Other | Equity Investments and Other Third-party Apparel Sourcing Business In 2015, the Company divested its remaining ownership interest in its third-party apparel sourcing business. 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 in the 2015 Consolidated Statement of Income and the cash proceeds are included in Proceeds from Divestiture of Third-party Apparel Sourcing Business within the Investing Activities section of the 2015 Consolidated Statement of Cash Flows. Easton Investments The Company has land and other investments in Easton, an approximately 1,300 acre planned community in Columbus, Ohio that integrates office, hotel, retail, residential and recreational space. These investments, totaling $79 million as of January 28, 2017 and $86 million as of January 30, 2016 , 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 2016, ETC refinanced its bank loan. In conjunction with the loan refinancing, the Company received a cash distribution from ETC of $124 million and recognized a pre-tax gain of $108 million (after-tax gain of $70 million ). The gain is included in Other Income in the 2016 Consolidated Statement of Income and the return of capital is included within the Investing Activities section of the 2016 Consolidated Statement of Cash Flows. Also included in the Company's Easton investments is an equity interest in Easton Gateway, LLC ("EG"), an entity that owns and has developed a commercial shopping center in the Easton community. The Company's investment in EG is accounted for using the equity method of accounting. The Company has a majority financial interest in EG, but another unaffiliated member manages EG. Certain significant decisions regarding EG require the consent of the unaffiliated member in addition to the Company. |
Accrued Expenses and Other
Accrued Expenses and Other | 12 Months Ended |
Jan. 28, 2017 | |
Accrued Expenses and Other | Accrued Expenses and Other The following table provides additional information about the composition of accrued expenses and other as of January 28, 2017 and January 30, 2016 : January 28, January 30, (in millions) Deferred Revenue, Principally from Gift Card Sales $ 259 $ 243 Compensation, Payroll Taxes and Benefits 191 238 Interest 99 100 Taxes, Other than Income 82 76 Rent 48 48 Accrued Claims on Self-insured Activities 35 35 Returns Reserve 21 27 Other 262 210 Total Accrued Expenses and Other $ 997 $ 977 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 28, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table provides the components of the Company’s provision for income taxes for 2016 , 2015 and 2014 : 2016 2015 2014 (in millions) Current: U.S. Federal $ 345 $ 553 $ 454 U.S. State 62 96 69 Non-U.S. 21 21 21 Total 428 670 544 Deferred: U.S. Federal 99 17 46 U.S. State 8 6 3 Non-U.S. 3 (12 ) 1 Total 110 11 50 Provision for Income Taxes $ 538 $ 681 $ 594 The non-U.S. component of pre-tax income, arising principally from overseas operations, was income of $134 million , $267 million and $152 million for 2016 , 2015 and 2014 , respectively. The Company's income taxes payable has been reduced by the excess tax benefits from employee stock plan awards. For stock options, the Company receives an excess income tax benefit calculated as the tax effect of the difference between the fair market value of the stock at the time of grant and exercise. For restricted stock, the Company receives an excess income tax benefit calculated as the tax effect of the difference between the fair market value of the stock at the time of grant and vesting. The Company had net excess tax benefits from equity awards of $42 million , $70 million and $43 million in 2016 , 2015 and 2014 , respectively, which were reflected as increases to equity. The following table provides the reconciliation between the statutory federal income tax rate and the effective tax rate for 2016 , 2015 and 2014 : 2016 2015 2014 Federal Income Tax Rate 35.0 % 35.0 % 35.0 % State Income Taxes, Net of Federal Income Tax Effect 3.4 % 3.4 % 3.6 % Impact of Non-U.S. Operations (1.2 )% (1.7 )% (1.3 )% Foreign Portion of the Divestiture of Third-party Apparel Sourcing Business — % (0.9 )% — % Resolution of Certain Tax Matters (4.0 )% — % (0.3 )% Other Items, Net (1.5 )% (0.6 )% (0.7 )% Effective Tax Rate 31.7 % 35.2 % 36.3 % Deferred Taxes The following table provides the effect of temporary differences that cause deferred income taxes as of January 28, 2017 and January 30, 2016 . Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carryforwards at the end of the respective year. January 28, 2017 January 30, 2016 Assets Liabilities Total Assets Liabilities Total (in millions) Leases $ 68 $ — $ 68 $ 54 $ — $ 54 Non-qualified Retirement Plan 96 — 96 103 — 103 Property and Equipment — (413 ) (413 ) — (330 ) (330 ) Goodwill — (15 ) (15 ) — (15 ) (15 ) Trade Names and Other Intangibles — (141 ) (141 ) — (141 ) (141 ) State Net Operating Loss Carryforwards 15 — 15 17 — 17 Non-U.S. Operating Loss Carryforwards 155 — 155 157 — 157 Valuation Allowance (174 ) — (174 ) (164 ) — (164 ) Other, Net 76 — 76 92 — 92 Total Deferred Income Taxes $ 236 $ (569 ) $ (333 ) $ 259 $ (486 ) $ (227 ) As of January 28, 2017 , the Company had available for state income tax purposes net operating loss carryforwards which expire, if unused, in the years 2017 through 2036 . For those states where the Company has determined that it is more likely than not that the state net operating loss carryforwards will not be realized, a valuation allowance has been provided. As of January 28, 2017 , the Company had available for non-U.S. tax purposes net operating loss carryforwards which expire, if unused, in the years 2027 through 2036 . For certain jurisdictions where the Company has determined that it is more likely than not that the net operating loss carryforwards will not be realized, a valuation allowance has been provided on those net operating loss carryforwards as well as other net deferred tax assets. As of January 28, 2017 , we have not provided deferred U.S. income taxes on approximately $571 million of undistributed earnings from non-U.S. subsidiaries. Any unrecognized deferred income tax liability resulting from these amounts is not expected to reverse in the foreseeable future; furthermore, the undistributed foreign earnings are permanently reinvested. If the Company elects to distribute these foreign earnings in the future, they could be subject to additional income taxes. Determination of the amount of any unrecognized deferred income tax liability is not practicable because such liability, if any, is dependent on circumstances existing if and when remittance occurs. Income tax payments were $469 million for 2016 , $507 million for 2015 and $526 million for 2014 . Uncertain Tax Positions The following table summarizes the activity related to the Company’s unrecognized tax benefits for U.S. federal, state & non-U.S. tax jurisdictions for 2016 , 2015 and 2014 , without interest and penalties: 2016 2015 2014 (in millions) Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year $ 248 $ 193 $ 167 Increases in Unrecognized Tax Benefits for Prior Years 3 8 16 Decreases in Unrecognized Tax Benefits for Prior Years (73 ) (3 ) (14 ) Increases in Unrecognized Tax Benefits as a Result of Current Year Activity 18 54 36 Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities (98 ) — (5 ) Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations (8 ) (4 ) (7 ) Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year $ 90 $ 248 $ 193 Of the $90 million , $248 million and $193 million of total unrecognized tax benefits at January 28, 2017 , January 30, 2016 , and January 31, 2015 , respectively, approximately $62 million , $217 million and $170 million , respectively, represent the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. These amounts are net of the offsetting tax effects from other tax jurisdictions. Of the total unrecognized tax benefits, it is reasonably possible that $17 million could change in the next 12 months due to audit settlements, expiration of statute of limitations or other resolution of uncertainties. Due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of audits may result in amounts which could be different from this estimate. In such case, the Company will record additional tax expense or tax benefit in the period in which such matters are effectively settled. The Company recognizes interest and penalties related to unrecognized tax benefits as components of income tax expense. The Company recognized interest and penalties expense (benefit) of $(3) million , $7 million and $1 million in 2016 , 2015 and 2014 , respectively. The Company has accrued approximately $20 million and $38 million for the payment of interest and penalties as of January 28, 2017 and January 30, 2016 , respectively. Accrued interest and penalties are included within Other Long-term Liabilities on the Consolidated Balance Sheets. The Company files U.S. federal income tax returns as well as income tax returns in various states and in non-U.S. jurisdictions. At the end of 2016 , the Company was subject to examination by the IRS for 2013 through 2015 . The Company is also subject to various U.S. state and local income tax examinations for the years 2009 to 2015 . Finally, the Company is subject to multiple non-U.S. tax jurisdiction examinations for the years 2007 to 2015 . In some situations, the Company determines that it does not have a filing requirement in a particular tax jurisdiction. Where no return has been filed, no statute of limitations applies. Accordingly, if a tax jurisdiction reaches a conclusion that a filing requirement does exist, additional years may be reviewed by the tax authority. The Company believes it has appropriately accounted for uncertainties related to this issue. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Jan. 28, 2017 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Long-term Debt | Long-term Debt The following table provides the Company’s debt balance, net of debt issuance costs and unamortized discounts, as of January 28, 2017 and January 30, 2016 : January 28, January 30, (in millions) Senior Unsecured Debt with Subsidiary Guarantee $1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) $ 989 $ 988 $1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) 992 991 $1 billion, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”) 992 990 $700 million, 6.75% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) 692 — $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) 497 496 $500 million, 8.50% Fixed Interest Rate Notes due June 2019 (“2019 Notes”) (a) 496 499 $400 million, 7.00% Fixed Interest Rate Notes due May 2020 (“2020 Notes”) 397 396 Total Senior Unsecured Debt with Subsidiary Guarantee $ 5,055 $ 4,360 Senior Unsecured Debt $350 million, 6.95% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) $ 348 $ 348 $300 million, 7.60% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) 297 297 $700 million, 6.90% Fixed Interest Rate Notes due July 2017 (“2017 Notes”) (b) — 709 Foreign Facilities 36 7 Total Senior Unsecured Debt $ 681 $ 1,361 Total $ 5,736 $ 5,721 Current Portion of Long-term Debt (36 ) (6 ) Total Long-term Debt, Net of Current Portion $ 5,700 $ 5,715 _______________ (a) The balances include a fair value interest rate hedge adjustment which increased the debt balance by $2 million as of January 28, 2017 and $8 million as of January 30, 2016 . (b) The balance includes a fair value interest rate hedge adjustment which increased the debt balance by $10 million as of January 30, 2016 . The following table provides principal payments due on outstanding debt in the next five fiscal years and the remaining years thereafter: Fiscal Year (in millions) 2017 $ 36 2018 — 2019 500 2020 400 2021 1,000 Thereafter $ 3,850 Cash paid for interest was $387 million in 2016 , $317 million in 2015 and $328 million in 2014 . Issuance of Notes In June 2016, the Company issued $700 million of 6.75% notes due in July 2036. The obligation to pay principal and interest on these notes is jointly and severally guaranteed on a full and unconditional basis by the Guarantors. The proceeds from the issuance were $692 million , which were net of issuance costs of $8 million . These issuance costs are being amortized through the maturity date of July 2036 and are included within Long-term Debt on the January 28, 2017 Consolidated Balance Sheet. In October 2015, the Company issued $1 billion of 6.875% notes due in November 2035. The obligation to pay principal and interest on these notes is jointly and severally guaranteed on a full and unconditional basis by the Guarantors. The proceeds from the issuance were $988 million , which were net of issuance costs of $12 million . These issuance costs are being amortized through the maturity date of November 2035 and are included within Long-term Debt on the Consolidated Balance Sheets. Repurchase of Notes In July 2016, the Company used the proceeds from the 2036 Notes to repurchase the $700 million 2017 Notes for $742 million . The pre-tax loss on extinguishment of this debt was $36 million (after-tax net loss of $22 million ), which is net of gains of $7 million related to terminated interest rate swaps associated with the 2017 Notes. This loss is included in Other Income in the 2016 Consolidated Statement of Income. Debt Facilities 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 LIBOR plus 1.50% per annum. The interest rate on outstanding Canadian dollar borrowings is 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 January 28, 2017 , 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 January 28, 2017 , there were no borrowings outstanding under the Revolving Facility. The Revolving Facility supports the Company’s letter of credit program. The Company had $8 million of outstanding letters of credit as of January 28, 2017 that reduce its remaining availability under the Revolving Facility. In addition to the Revolving Facility, the Company maintains various revolving and term loan bank facilities with availability totaling $100 million to support its foreign operations. Current borrowings on these Foreign Facilities mature between February 8, 2017 and January 24, 2018. The interest rates on outstanding borrowings are based upon the applicable benchmark rate for the currency of each borrowing. During 2016 , the Company borrowed $35 million and made payments of $6 million under the Foreign Facilities. The maximum daily amount outstanding at any point in time during 2016 was $36 million . Interest Rate Swap Arrangements For information related to the Company’s fair value interest rate swap arrangements, see Note 13 , “Derivative Financial Instruments.” |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Jan. 28, 2017 | |
Summary of Derivative Instruments [Abstract] | |
Derivative Instruments | Derivative Financial Instruments Foreign Exchange Risk The Company's Canadian dollar and British pound denominated earnings are subject to exchange rate risk as substantially all of its merchandise sold in Canada and the U.K. is sourced through U.S. dollar transactions. As a result, the Company uses foreign currency forward contracts designated as cash flow hedges to mitigate the foreign currency exposure associated with forecasted U.S. dollar-denominated merchandise purchases. These forward contracts currently have a maximum term of 18 months. Amounts are reclassified from accumulated other comprehensive income (loss) upon sale of the hedged merchandise to the customer. These gains and losses are recognized in Cost of Goods Sold, Buying and Occupancy on the Consolidated Statements of Income. The Company has a cross-currency swap related to an intercompany loan of approximately CAD $170 million maturing in January 2018 which is designated as a cash flow hedge of foreign currency exchange risk. This cross-currency swap mitigates the exposure to fluctuations in the U.S. dollar-Canadian dollar exchange rate related to the Company's Canadian operations. The cross-currency swap requires 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 (loss) to earnings to completely offset foreign currency transaction gains and losses recognized on the intercompany loan. The Company uses foreign currency forward contracts not designated as cash flow hedges to manage the impact of fluctuations in foreign currency exchange rates relative to recognized payable balances denominated in non-functional currencies. The fair value of these non-designated foreign currency forward contracts is not significant as of January 28, 2017 . The following table provides the U.S. dollar notional amount of outstanding foreign currency derivative financial instruments as of January 28, 2017 and January 30, 2016 : January 28, January 30, (in millions) Notional Amount $ 360 $ 147 The following table provides a summary of the fair value and balance sheet classification of outstanding derivative financial instruments designated as foreign currency cash flow hedges as of January 28, 2017 and January 30, 2016 : January 28, January 30, (in millions) Other Current Assets $ 18 $ — Accrued Expenses and Other 1 — Other Long-term Assets — 27 The following table provides a summary of the pre-tax financial statement effect of the gains and losses on derivative financial instruments designated as foreign currency cash flow hedges for 2016 and 2015 : 2016 2015 (in millions) Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) $ (8 ) $ 6 (Gain) Loss Reclassified from Accumulated Other Comprehensive Income into Cost of Goods Sold, Buying and Occupancy Expense (a) (1 ) — (Gain) Loss Reclassified from Accumulated Other Comprehensive Income into Other Income (b) 8 14 ________________ (a) Represents reclassification of amounts from accumulated other comprehensive income (loss) to earnings when the hedged merchandise is sold to the customer. No ineffectiveness was associated with these foreign currency cash flow hedges. (b) Represents reclassification of amounts from accumulated other comprehensive income (loss) to earnings to completely offset foreign currency transaction gains and losses recognized on the intercompany loan. No ineffectiveness was associated with this foreign currency cash flow hedge. The Company estimates that $2 million of gains included in accumulated other comprehensive income (loss) as of January 28, 2017 related to foreign currency forward contracts designated as cash flow hedges will be reclassified into earnings within the following 12 months. Actual amounts ultimately reclassified depend on the exchange rates in effect when derivative contracts that are currently outstanding mature. Interest Rate Risk The Company has interest rate swap arrangements related to $300 million of the outstanding 2019 Notes that are designated as interest rate fair value hedges as of January 28, 2017 . 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 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 2017 Notes. In 2016, the Company terminated its interest rate designated fair value hedges in conjunction with the repurchase of the 2017 Notes. The following table provides a summary of the fair value and balance sheet classification of the derivative financial instruments designated as interest rate fair value hedges as of January 28, 2017 and January 30, 2016 : January 28, January 30, (in millions) Other Long-term Assets $ 2 $ 11 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 28, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Disclosures | Fair Value Measurements The following table provides a summary of the principal value and estimated fair value of long-term debt as of January 28, 2017 and January 30, 2016 : January 28, January 30, (in millions) Principal Value $ 5,750 $ 5,750 Fair Value (a) 6,030 6,209 ________________ (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 Measurement . The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The following table provides a summary of assets and liabilities measured in the consolidated financial statements at fair value on a recurring basis as of January 28, 2017 and January 30, 2016 : Level 1 Level 2 Level 3 Total (in millions) As of January 28, 2017 Assets: Cash and Cash Equivalents $ 1,934 $ — $ — $ 1,934 Marketable Securities 5 — — 5 Interest Rate Fair Value Hedges — 2 — 2 Foreign Currency Cash Flow Hedges — 18 — 18 Liabilities: Foreign Currency Cash Flow Hedges — 1 — 1 As of January 30, 2016 Assets: Cash and Cash Equivalents $ 2,548 $ — $ — $ 2,548 Marketable Securities 22 — — 22 Interest Rate Fair Value Hedges — 11 — 11 Foreign Currency Cash Flow Hedges — 27 — 27 The Company's Level 1 fair value measurements use unadjusted quoted prices in active markets for identical assets. In 2015, the Company purchased $10 million of marketable equity securities which were classified as available-for-sale as of the end of 2015. In the first quarter of 2016, the Company sold a portion of this investment and received cash proceeds of $10 million and recognized a pre-tax gain of $4 million (after-tax gain of $3 million ). The gain is included in Other Income in the 2016 Consolidated Statement of Income, and the cash proceeds are included in Proceeds from Sale of Marketable Securities in the Investing Activities section of the 2016 Consolidated Statement of Cash Flows. The Company's marketable 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 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. Management believes that the carrying values of accounts receivable, accounts payable, accrued expenses and current debt approximate fair value because of their short maturity. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 12 Months Ended |
Jan. 28, 2017 | |
Comprehensive Income Loss | |
Comprehensive Income (Loss) | Comprehensive Income Comprehensive Income includes gains and losses on derivative instruments, unrealized holding gains and losses on marketable securities classified as available-for-sale and foreign currency translation adjustments. The cumulative gains and losses on these items are included in Accumulated Other Comprehensive Income in the Consolidated Balance Sheets and Consolidated Statements of Shareholders' Equity (Deficit). The following table provides the rollforward of accumulated other comprehensive income (loss) for 2016 : Foreign Currency Translation Cash Flow Hedges Marketable Securities Accumulated Other Comprehensive Income (Loss) (in millions) Balance as of January 30, 2016 $ 28 $ 4 $ 8 $ 40 Other Comprehensive Income (Loss) Before Reclassifications (19 ) (8 ) (8 ) (35 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 7 (4 ) 3 Tax Effect — — 4 4 Current-period Other Comprehensive Income (Loss) (19 ) (1 ) (8 ) (28 ) Balance as of January 28, 2017 $ 9 $ 3 $ — $ 12 The following table provides the rollforward of accumulated other comprehensive income (loss) for 2015 : Foreign Currency Translation Cash Flow Hedges Marketable Securities Accumulated Other Comprehensive Income (Loss) (in millions) Balance as of January 31, 2015 $ 51 $ (16 ) $ — $ 35 Other Comprehensive Income (Loss) Before Reclassifications (23 ) 6 12 (5 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 14 — 14 Tax Effect — — (4 ) (4 ) Current-period Other Comprehensive Income (Loss) (23 ) 20 8 5 Balance as of January 30, 2016 $ 28 $ 4 $ 8 $ 40 The following table provides a summary of the reclassification adjustments out of accumulated other comprehensive income for 2016 : Details About Accumulated Other Comprehensive Income (Loss) Components Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Location on Consolidated Statements of Income 2016 2015 (in millions) (Gain) Loss on Cash Flow Hedges $ (1 ) $ — Cost of Goods Sold, Buying and Occupancy 8 14 Other Income — — Provision for Income Taxes $ 7 $ 14 Net Income Sale of Available-for-Sale Securities $ (4 ) $ — Other Income 1 — Provision for Income Taxes $ (3 ) $ — Net Income |
Leases
Leases | 12 Months Ended |
Jan. 28, 2017 | |
Leases | Leases The Company is committed to noncancellable leases with remaining terms generally from one to 10 years. A substantial portion of the Company’s leases consist of store leases generally with an initial term of 10 years. Annual store rent consists of a fixed minimum amount and/or contingent rent based on a percentage of sales exceeding a stipulated amount. Store lease terms generally require additional payments covering certain operating costs such as common area maintenance, utilities, insurance and taxes. These additional payments are excluded from the table below. The following table provides rent expense for 2016 , 2015 and 2014 : 2016 2015 2014 (in millions) Store Rent: Fixed Minimum $ 607 $ 535 $ 516 Contingent 71 73 63 Total Store Rent 678 608 579 Office, Equipment and Other 87 77 68 Gross Rent Expense 765 685 647 Sublease Rental Income (2 ) (2 ) (2 ) Total Rent Expense $ 763 $ 683 $ 645 The following table provides the Company’s minimum rent commitments under noncancellable operating leases in the next five fiscal years and the remaining years thereafter: Fiscal Year (in millions) (a) 2017 $ 707 2018 651 2019 605 2020 571 2021 531 Thereafter $ 2,112 ________________ (a) Excludes additional payments covering taxes, common area costs and certain other expenses generally required by store lease terms. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 28, 2017 | |
Commitments And Contingencies [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to various claims and contingencies related to lawsuits, taxes, insurance, regulatory and other matters arising out of the normal course of business. Actions filed against the Company from time to time include commercial, tort, intellectual property, customer, employment, data privacy, securities and other claims, including purported class action lawsuits. Management believes that the ultimate liability arising from such claims and contingencies, if any, is not likely to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. Guarantees In connection with the disposition of certain businesses, the Company has remaining guarantees of approximately $14 million related to lease payments under the current terms of noncancellable leases expiring at various dates through 2021 . 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 has not recorded a liability with respect to any of these guarantee obligations as of January 28, 2017 or January 30, 2016 as it concluded that payments under these guarantees were not probable. In connection with the sale and leaseback under noncancellable operating leases of certain assets, the Company provides 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 2021, and the total amount of the guarantees is approximately $133 million . The Company recorded a liability of $1 million and $3 million related to these guarantee obligations as of January 28, 2017 and January 30, 2016 , respectively, included in Other Long-term Liabilities on the Consolidated Balance Sheets. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Jan. 28, 2017 | |
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 $67 million for 2016 , $64 million for 2015 and $59 million for 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 fixed rate determined by the Company and reviewed by the Compensation Committee of the Board of Directors, prior to the beginning of each year. Associate contributions and the related interest vest immediately. Company contributions, along with related interest, are subject to vesting based on years of service. Associates may elect in-service distributions for the unmatched additional deferred compensation component only. The remaining vested portion of associates’ accounts in the plan will be distributed upon termination of employment in either a lump sum or in annual installments over a specified period of up to 10 years. The following table provides the Company’s annual activity for this plan and year-end liability, included in Other Long-term Liabilities on the Consolidated Balance Sheets, as of January 28, 2017 and January 30, 2016 : January 28, January 30, (in millions) Balance at Beginning of Year $ 274 $ 257 Contributions: Associate 14 15 Company 14 17 Interest 12 13 Distributions (56 ) (28 ) Balance at End of Year $ 258 $ 274 Total expense recognized related to the non-qualified plan was $26 million for 2016 , $30 million for 2015 and $24 million for 2014 . |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) | 12 Months Ended |
Jan. 28, 2017 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity (Deficit) Common Stock Share Repurchases Under the authority of the Company’s Board of Directors, the Company repurchased shares of its common stock under the following repurchase programs for the fiscal years 2016 , 2015 and 2014 : Shares Repurchased Amount Repurchased Average Stock Price of Shares Repurchased within Program Repurchase Program Amount Authorized 2016 2015 2014 2016 2015 2014 (in millions) (in thousands) (in millions) February 2016 $ 500 5,719 NA NA $ 438 NA NA $ 76.63 June 2015 250 NA 2,680 NA NA $ 233 NA $ 87.06 February 2015 250 NA 2,788 NA NA 250 NA $ 89.45 November 2012 250 NA NA 1,317 NA NA $ 84 $ 54.02 Total 5,719 5,468 1,317 $ 438 $ 483 $ 84 In February 2016, the Company's Board of Directors approved a $500 million share repurchase program, which included the $17 million remaining under the June 2015 repurchase program. In June 2015, the Company's Board of Directors approved a $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. There were $3 million of share repurchases reflected in Accounts Payable on the January 28, 2017 Consolidated Balance Sheet. There were no share repurchases reflected in Accounts Payable on the January 30, 2016 Consolidated Balance Sheet. Subsequent to January 28, 2017 , the Company's Board of Directors approved a new $250 million share repurchase program, which included the $59 million remaining under the February 2016 repurchase program. The Company repurchased an additional 0.9 million shares of common stock for $49 million subsequent to January 28, 2017 . Dividends Under the authority and declaration of the Board of Directors, the Company paid the following dividends during the fiscal years 2016 , 2015 and 2014 : Ordinary Dividends Special Dividends Total Dividends Total Paid (per share) (in millions) 2016 Fourth Quarter $ 0.60 $ — $ 0.60 $ 172 Third Quarter 0.60 — 0.60 173 Second Quarter 0.60 — 0.60 173 First Quarter 0.60 2.00 2.60 750 2016 Total $ 2.40 $ 2.00 $ 4.40 $ 1,268 2015 Fourth Quarter $ 0.50 $ — $ 0.50 $ 145 Third Quarter 0.50 — 0.50 146 Second Quarter 0.50 — 0.50 146 First Quarter 0.50 2.00 2.50 734 2015 Total $ 2.00 $ 2.00 $ 4.00 $ 1,171 2014 Fourth Quarter $ 0.34 $ — $ 0.34 $ 100 Third Quarter 0.34 — 0.34 100 Second Quarter 0.34 — 0.34 99 First Quarter 0.34 1.00 1.34 392 2014 Total $ 1.36 $ 1.00 $ 2.36 $ 691 Subsequent to January 28, 2017 , the Company declared the first quarter of 2017 ordinary dividend of $0.60 per share. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Jan. 28, 2017 | |
Share-based Compensation [Abstract] | |
Share-based Compensation | Share-based Compensation Plan Summary In 2015, the Company's shareholders approved the 2015 Stock Option and Performance Incentive Plan ("2015 Plan"). The 2015 plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, performance-based restricted stock, performance units and unrestricted shares. The Company grants stock options at a price equal to the fair market value of the stock on the date of grant. Stock options have a maximum term of 10 years. Stock options generally vest ratably over 3 to 5 years. Restricted stock generally vests (the restrictions lapse) at the end of a three -year period or on a graded basis over a five -year period. Under the Company’s plans, approximately 160 million options, restricted and unrestricted shares have been authorized to be granted to employees and directors. Approximately 16 million options and shares were available for grant as of January 28, 2017 . From time to time the Company's Board of Directors will declare special dividends. For additional information, see Note 19 , "Shareholders' Equity (Deficit)." In accordance with the anti-dilutive provisions of the stock plan, in these circumstances the Company adjusts both the exercise price and the number of share-based awards outstanding as of the record date of the special dividends. The aggregate fair value, the aggregate intrinsic value and the ratio of the exercise price to the market price are approximately equal immediately before and after the adjustments. Therefore, no compensation expense is recognized. Stock Options The following table provides the Company’s stock option activity for the fiscal year ended January 28, 2017 : Number of Shares Weighted Average Option Price Per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding as of January 30, 2016 5,491 $ 42.40 Granted 851 84.92 Exercised (639 ) 32.58 Cancelled (399 ) 69.44 Adjustment for Special Dividend 135 Outstanding as of January 28, 2017 5,439 $ 47.17 5.66 $ 108,075 Vested and Expected to Vest as of January 28, 2017 (a) 5,329 46.41 5.60 107,961 Options Exercisable as of January 28, 2017 3,292 29.90 4.09 100,470 ________________ (a) The number of options expected to vest includes an estimate of expected forfeitures. Intrinsic value for stock options is the difference between the current market value of the Company’s stock and the option strike price. The total intrinsic value of options exercised was $30 million for 2016 , $63 million for 2015 and $52 million for 2014 . The total fair value at grant date of option awards vested was $10 million for 2016 and $11 million for 2015 and 2014 . The Company’s total unrecognized compensation cost, net of estimated forfeitures, related to nonvested options was $17 million as of January 28, 2017 . This cost is expected to be recognized over a weighted-average period of 2.9 years. The weighted-average estimated fair value of stock options granted was $11.72 per share for 2016 , $15.27 per share for 2015 and $11.74 per share for 2014 . Cash received from stock options exercised was $20 million for 2016 , $33 million for 2015 and $35 million for 2014 . Tax benefits realized from tax deductions associated with stock options exercised were $9 million for 2016 , $20 million for 2015 and $21 million for 2014 . The Company uses the Black-Scholes option-pricing model for valuation of options granted to employees and directors. The Company’s determination of the fair value of options is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the Company’s expected stock price volatility over the term of the awards and projected employee stock option exercise behaviors. The following table contains the weighted-average assumptions used during 2016 , 2015 and 2014 : 2016 2015 2014 Expected Volatility 25 % 26 % 30 % Risk-free Interest Rate 1.1 % 1.1 % 1.4 % Dividend Yield 3.3 % 2.7 % 3.0 % Expected Life (in years) 4.1 4.5 4.6 The majority of the Company’s stock-based compensation awards are granted on an annual basis in the first quarter of each year. The expected volatility assumption is based on the Company’s analysis of historical volatility. The risk-free interest rate assumption is based upon the average daily closing rates during the period for U.S. treasury notes that have a life which approximates the expected life of the option. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts in relation to the stock price at the grant date. The expected life of employee stock options represents the weighted-average period the stock options are expected to remain outstanding. Restricted Stock The following table provides the Company’s restricted stock activity for the fiscal year ended January 28, 2017 : Number of Shares Weighted Average Grant Date Fair Value (in thousands) Unvested as of January 30, 2016 5,791 $ 54.41 Granted 1,758 75.09 Vested (1,754 ) 38.93 Cancelled (646 ) 63.11 Adjustment for Special Dividend 143 N/A Unvested as of January 28, 2017 5,292 64.14 The Company’s total intrinsic value of restricted stock vested was $140 million for 2016 , $217 million for 2015 and $128 million for 2014 . The Company’s total fair value at grant date of awards vested was $68 million for 2016 , $80 million for 2015 and $56 million for 2014 . Fair value of restricted stock awards is based on the market value of an unrestricted share on the grant date adjusted for anticipated dividend yields. As of January 28, 2017 , there was $141 million of total unrecognized compensation cost, net of estimated forfeitures, related to unvested restricted stock. That cost is expected to be recognized over a weighted-average period of 2.7 years. The weighted-average estimated fair value of restricted stock granted was $75.09 per share for 2016 , $85.61 per share for 2015 and $54.03 per share for 2014 . Tax benefits realized from tax deductions associated with restricted stock vested were $61 million for 2016 , $82 million for 2015 and $46 million for 2014 . Income Statement Impact The following table provides share-based compensation expense included in the Consolidated Statements of Income for 2016 , 2015 and 2014 : 2016 2015 2014 (in millions) Costs of Goods Sold, Buying and Occupancy $ 31 $ 27 $ 24 General, Administrative and Store Operating Expenses 65 70 66 Total Share-based Compensation Expense $ 96 $ 97 $ 90 Share-based compensation expense is based on awards that are ultimately expected to vest. The Company estimates forfeitures at the time of grant and adjusts, if necessary, in subsequent periods based on historical experience and expected future termination rates. The tax benefit associated with recognized share-based compensation expense was $32 million for 2016 , $33 million for 2015 and $30 million for 2014 . |
Segment Information
Segment Information | 12 Months Ended |
Jan. 28, 2017 | |
Segment Information [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, 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, home fragrance products, soaps and sanitizers under the Bath & Body Works, White Barn, 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, comprised of company-owned stores in Greater China, as well as stores operated by partners under franchise, license and wholesale arrangements, which feature Victoria's Secret branded beauty and accessories products; • Victoria's Secret International, comprised of company-owned stores in the U.K., as well as stores operated by partners under franchise and 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 the U.S. and Canada, as well as stores operated by partners under franchise and license arrangements, which feature women's intimate apparel; • Henri Bendel, operator of 29 specialty stores, which feature handbags, jewelry and other accessory products; and • Corporate functions including non-core real estate, equity investments and other governance functions such as treasury and tax. The following table provides the Company’s segment information as of and for the fiscal years ended January 28, 2017 , January 30, 2016 and January 31, 2015 : Victoria’s Secret Bath & Body Works Victoria’s Secret and Bath & Body Works International Other Total (in millions) January 28, 2017 Net Sales $ 7,781 $ 3,852 $ 423 $ 518 $ 12,574 Depreciation and Amortization 252 91 17 112 472 Operating Income (Loss) 1,173 907 40 (117 ) 2,003 Total Assets (a) 3,285 1,632 593 2,660 8,170 Capital Expenditures 460 250 68 212 990 January 30, 2016 Net Sales $ 7,672 $ 3,587 $ 385 $ 510 $ 12,154 Depreciation and Amortization 218 70 16 111 415 Operating Income (Loss) 1,391 858 88 (145 ) 2,192 Total Assets (a) 3,163 1,556 436 3,338 8,493 Capital Expenditures 411 166 33 117 727 January 31, 2015 Net Sales $ 7,207 $ 3,350 $ 336 $ 561 $ 11,454 Depreciation and Amortization 198 65 16 119 398 Operating Income (Loss) 1,271 737 78 (133 ) 1,953 Total Assets (a) 2,950 1,365 369 2,792 7,476 Capital Expenditures 446 77 37 155 715 ________________ (a) Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. 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 $1.408 billion in 2016 , $1.314 billion in 2015 and $1.349 billion in 2014 . The Company’s internationally based long-lived assets were $357 million as of January 28, 2017 and $319 million as of January 30, 2016 . |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jan. 28, 2017 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following table provides summarized quarterly financial data for 2016 : Fiscal Quarter Ended April 30, 2016 (a) July 30, 2016 (b) October 29, 2016 January 28, 2017 (c) (in millions except per share data) Net Sales $ 2,614 $ 2,890 $ 2,581 $ 4,489 Gross Profit 1,043 1,113 1,025 1,944 Operating Income 323 408 284 988 Income Before Income Taxes 233 380 190 893 Net Income 152 252 122 632 Net Income Per Basic Share (d) $ 0.53 $ 0.88 $ 0.43 $ 2.21 Net Income Per Diluted Share (d) $ 0.52 $ 0.87 $ 0.42 $ 2.18 ________________ (a) Includes the effect of a pre-tax gain of $35 million ( $21 million net of tax) included in operating income, related to actions at Victoria's Secret, including severance charges, fabric cancellations and the write-off of catalogue paper. (b) Includes the effect of a pre-tax gain of $108 million ( $70 million net of tax) related to a cash distribution from Easton Town Center, offset by a pre-tax loss of $36 million ( $22 million net of tax) associated with the early extinguishment of the 2017 Notes, included in other income. (c) Includes the effect of a $42 million tax benefit related to the favorable resolution of a discrete income tax matter. (d) Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. The following table provides summarized quarterly financial data for 2015 : Fiscal Quarter Ended May 2, 2015 (a) August 1, 2015 October 31, 2015 January 30, 2016 (in millions except per share data) Net Sales $ 2,512 $ 2,765 $ 2,482 $ 4,395 Gross Profit 1,056 1,114 1,031 2,002 Operating Income 372 403 339 1,078 Income Before Income Taxes 369 323 260 982 Net Income 250 202 164 636 Net Income Per Basic Share (b) $ 0.86 $ 0.69 $ 0.56 $ 2.19 Net Income Per Diluted Share (b) $ 0.84 $ 0.68 $ 0.55 $ 2.15 ________________ (a) Includes the effect of a pre-tax gain of $78 million ( $69 million net of tax) included in other income, related to the sale of our remaining interest in the third-party apparel sourcing business. (b) Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 28, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to January 28, 2017 , the Company's Board of Directors approved a new $250 million share repurchase program, which included the $59 million remaining under the February 2016 repurchase program. The Company repurchased an additional 0.9 million shares of common stock for $49 million subsequent to January 28, 2017 . The Company declared the first quarter of 2017 ordinary dividend of $0.60 per share. For additional information, see Note 19 , "Shareholders' Equity (Deficit)." |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information | 12 Months Ended |
Jan. 28, 2017 | |
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, 2023 Notes, 2035 Notes and 2036 Notes are jointly and severally guaranteed on a full and unconditional basis by the 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 January 28, 2017 and January 30, 2016 and the Condensed Consolidating Statements of Income, Comprehensive Income and Cash Flows for the years ended January 28, 2017 , January 30, 2016 and January 31, 2015 . L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) January 28, 2017 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 1,562 $ 372 $ — $ 1,934 Accounts Receivable, Net — 228 66 — 294 Inventories — 976 120 — 1,096 Other — 53 88 — 141 Total Current Assets — 2,819 646 — 3,465 Property and Equipment, Net — 1,897 844 — 2,741 Goodwill — 1,318 30 — 1,348 Trade Names and Other Intangible Assets, Net — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 4,923 15,824 1,350 (22,097 ) — Deferred Income Taxes — 10 9 — 19 Other Assets 130 28 639 (611 ) 186 Total Assets $ 5,053 $ 22,307 $ 3,518 $ (22,708 ) $ 8,170 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ 3 $ 326 $ 354 $ — $ 683 Accrued Expenses and Other 100 526 371 — 997 Current Portion of Long-term Debt — — 36 — 36 Income Taxes (11 ) 221 88 — 298 Total Current Liabilities 92 1,073 849 — 2,014 Deferred Income Taxes (3 ) (93 ) 448 — 352 Long-term Debt 5,700 597 — (597 ) 5,700 Other Long-term Liabilities 3 761 81 (14 ) 831 Total Equity (Deficit) (739 ) 19,969 2,140 (22,097 ) (727 ) Total Liabilities and Equity (Deficit) $ 5,053 $ 22,307 $ 3,518 $ (22,708 ) $ 8,170 L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) January 30, 2016 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 2,190 $ 358 $ — $ 2,548 Accounts Receivable, Net 1 202 58 — 261 Inventories — 978 144 — 1,122 Other — 115 110 — 225 Total Current Assets 1 3,485 670 — 4,156 Property and Equipment, Net — 1,574 756 — 2,330 Goodwill — 1,318 — — 1,318 Trade Names and Other Intangible Assets, Net — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 5,368 13,649 1,242 (20,259 ) — Deferred Income Taxes — 11 19 — 30 Other Assets 141 40 679 (612 ) 248 Total Assets $ 5,510 $ 20,488 $ 3,366 $ (20,871 ) $ 8,493 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ — $ 333 $ 335 $ — $ 668 Accrued Expenses and Other 100 519 358 — 977 Current Portion of Long-term Debt — — 6 — 6 Income Taxes (3 ) 237 (10 ) — 224 Total Current Liabilities 97 1,089 689 — 1,875 Deferred Income Taxes (3 ) (86 ) 346 — 257 Long-term Debt 5,714 597 1 (597 ) 5,715 Other Long-term Liabilities — 670 248 (14 ) 904 Total Equity (Deficit) (298 ) 18,218 2,082 (20,260 ) (258 ) Total Liabilities and Equity (Deficit) $ 5,510 $ 20,488 $ 3,366 $ (20,871 ) $ 8,493 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) 2016 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 11,959 $ 3,533 $ (2,918 ) $ 12,574 Costs of Goods Sold, Buying and Occupancy — (7,277 ) (2,854 ) 2,682 (7,449 ) Gross Profit — 4,682 679 (236 ) 5,125 General, Administrative and Store Operating Expenses (8 ) (2,843 ) (457 ) 186 (3,122 ) Operating Income (Loss) (8 ) 1,839 222 (50 ) 2,003 Interest Expense (394 ) (60 ) (11 ) 71 (394 ) Other Income (35 ) 3 119 — 87 Income (Loss) Before Income Taxes (437 ) 1,782 330 21 1,696 Provision (Benefit) for Income Taxes (10 ) 432 116 — 538 Equity in Earnings, Net of Tax 1,585 39 376 (2,000 ) — Net Income (Loss) $ 1,158 $ 1,389 $ 590 $ (1,979 ) $ 1,158 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) 2016 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Income (Loss) $ 1,158 $ 1,389 $ 590 $ (1,979 ) $ 1,158 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — (19 ) — (19 ) Unrealized Loss on Cash Flow Hedges — — (8 ) — (8 ) Reclassification of Cash Flow Hedges to Earnings — — 7 — 7 Unrealized Loss on Marketable Securities — — (5 ) — (5 ) Reclassification of Gain on Marketable Securities to Earnings — — (3 ) — (3 ) Total Other Comprehensive Income (Loss), Net of Tax — — (28 ) — (28 ) Total Comprehensive Income $ 1,158 $ 1,389 $ 562 $ (1,979 ) $ 1,130 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) 2015 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Sales $ — $ 11,475 $ 3,570 $ (2,891 ) $ 12,154 Costs of Goods Sold, Buying and Occupancy — (6,843 ) (2,858 ) 2,751 (6,950 ) Gross Profit — 4,632 712 (140 ) 5,204 General, Administrative and Store Operating Expenses (12 ) (2,688 ) (440 ) 128 (3,012 ) Operating Income (Loss) (12 ) 1,944 272 (12 ) 2,192 Interest Expense (334 ) (38 ) (9 ) 47 (334 ) Other Income — 5 71 — 76 Income (Loss) Before Income Taxes (346 ) 1,911 334 35 1,934 Provision (Benefit) for Income Taxes (2 ) 478 205 — 681 Equity in Earnings, Net of Tax 1,597 94 348 (2,039 ) — Net Income (Loss) $ 1,253 $ 1,527 $ 477 $ (2,004 ) $ 1,253 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) 2015 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Income (Loss) $ 1,253 $ 1,527 $ 477 $ (2,004 ) $ 1,253 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — (23 ) — (23 ) Unrealized Gain on Cash Flow Hedges — — 6 — 6 Reclassification of Cash Flow Hedges to Earnings — — 14 — 14 Unrealized Gain on Marketable Securities — — 8 — 8 Total Other Comprehensive Income, Net of Tax — — 5 — 5 Total Comprehensive Income $ 1,253 $ 1,527 $ 482 $ (2,004 ) $ 1,258 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) 2014 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Sales $ — $ 10,711 $ 3,343 $ (2,600 ) $ 11,454 Costs of Goods Sold, Buying and Occupancy — (6,449 ) (2,611 ) 2,414 (6,646 ) Gross Profit — 4,262 732 (186 ) 4,808 General, Administrative and Store Operating Expenses (6 ) (2,538 ) (446 ) 135 (2,855 ) Operating Income (Loss) (6 ) 1,724 286 (51 ) 1,953 Interest Expense (324 ) (35 ) (9 ) 44 (324 ) Other Income 1 — 6 — 7 Income (Loss) Before Income Taxes (329 ) 1,689 283 (7 ) 1,636 Provision (Benefit) for Income Taxes (3 ) 385 212 — 594 Equity in Earnings, Net of Tax 1,368 46 316 (1,730 ) — Net Income (Loss) $ 1,042 $ 1,350 $ 387 $ (1,737 ) $ 1,042 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) 2014 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Income (Loss) $ 1,042 $ 1,350 $ 387 $ (1,737 ) $ 1,042 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — 21 — 21 Unrealized Gain on Cash Flow Hedges — — 34 — 34 Reclassification of Cash Flow Hedges to Earnings — — (60 ) — (60 ) Total Other Comprehensive Income (Loss), Net of Tax — — (5 ) — (5 ) Total Comprehensive Income $ 1,042 $ 1,350 $ 382 $ (1,737 ) $ 1,037 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) 2016 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ (462 ) $ 1,848 $ 504 $ — $ 1,890 Investing Activities: Capital Expenditures — (705 ) (285 ) — (990 ) Return of Capital from Easton Town Center, LLC — — 108 — 108 Acquisition, Net of Cash Acquired of $1 — — (33 ) — (33 ) Proceeds from Sale of Assets — — 53 — 53 Proceeds from Sale of Marketable Securities — — 10 — 10 Other Investing Activities — (2 ) 21 — 19 Net Cash Used for Investing Activities — (707 ) (126 ) — (833 ) Financing Activities: Proceeds from Issuance of Long-term Debt, Net of Issuance Costs 692 — — — 692 Payments of Long-term Debt (742 ) — — — (742 ) Borrowings from Debt Facilities — — 35 — 35 Repayments on Debt Facilities — — (6 ) — (6 ) Dividends Paid (1,268 ) — — — (1,268 ) Repurchases of Common Stock (435 ) — — — (435 ) Excess Tax Benefits from Share-based Compensation — 37 5 — 42 Net Financing Activities and Advances to/from Consolidated Affiliates 2,195 (1,803 ) (392 ) — — Proceeds From Exercise of Stock Options 20 — — — 20 Financing Costs and Other — (3 ) — — (3 ) Net Cash Provided by (Used for) Financing Activities 462 (1,769 ) (358 ) — (1,665 ) Effects of Exchange Rate Changes on Cash — — (6 ) — (6 ) Net Increase in Cash and Cash Equivalents — (628 ) 14 — (614 ) Cash and Cash Equivalents, Beginning of Year — 2,190 358 — 2,548 Cash and Cash Equivalents, End of Year $ — $ 1,562 $ 372 $ — $ 1,934 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) 2015 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ (322 ) $ 1,835 $ 356 $ — $ 1,869 Investing Activities: Capital Expenditures — (506 ) (221 ) — (727 ) Proceeds from Sale of Assets — — 196 — 196 Proceeds from Sale of Marketable Securities — 50 — — 50 Proceeds from Divestiture of Third-party Apparel Sourcing Business — 1 84 — 85 Purchases of Marketable Securities — (50 ) (10 ) — (60 ) Other Investing Activities — — 13 — 13 Net Cash Used for Investing Activities — (505 ) 62 — (443 ) Financing Activities: Proceeds from Issuance of Long-term Debt, Net of Issuance Costs 988 — — — 988 Borrowings from Debt Facilities — — 7 — 7 Dividends Paid (1,171 ) — — — (1,171 ) Repurchases of Common Stock (483 ) — — — (483 ) Excess Tax Benefits from Share-based Compensation — 62 8 — 70 Net Financing Activities and Advances to/from Consolidated Affiliates 955 (662 ) (293 ) — — Proceeds From Exercise of Stock Options 33 — — — 33 Financing Costs and Other — (2 ) — — (2 ) Net Cash Provided by (Used for) Financing Activities 322 (602 ) (278 ) — (558 ) Effects of Exchange Rate Changes on Cash — — (1 ) — (1 ) Net Increase in Cash and Cash Equivalents — 728 139 — 867 Cash and Cash Equivalents, Beginning of Year — 1,462 219 — 1,681 Cash and Cash Equivalents, End of Year $ — $ 2,190 $ 358 $ — $ 2,548 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) 2014 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ (333 ) $ 1,677 $ 442 $ — $ 1,786 Investing Activities: Capital Expenditures — (486 ) (229 ) — (715 ) Other Investing Activities — (1 ) 17 — 16 Net Cash Used for Investing Activities — (487 ) (212 ) — (699 ) Financing Activities: Payments of Long-term Debt (213 ) — — — (213 ) Borrowings from Debt Facilities — — 5 — 5 Repayments on Debt Facilities — — (5 ) — (5 ) Dividends Paid (691 ) — — — (691 ) Repurchases of Common Stock (87 ) — — — (87 ) Excess Tax Benefits from Share-based Compensation — 37 6 — 43 Net Financing Activities and Advances to/from Consolidated Affiliates 1,295 (1,118 ) (177 ) — — Proceeds From Exercise of Stock Options 35 — — — 35 Financing Costs and Other (6 ) — — — (6 ) Net Cash Provided by (Used for) Financing Activities 333 (1,081 ) (171 ) — (919 ) Effects of Exchange Rate Changes on Cash — — (6 ) — (6 ) Net Increase (Decrease) in Cash and Cash Equivalents — 109 53 — 162 Cash and Cash Equivalents, Beginning of Year — 1,353 166 — 1,519 Cash and Cash Equivalents, End of Year $ — $ 1,462 $ 219 $ — $ 1,681 |
Description of Business and S32
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 28, 2017 | |
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, personal care, beauty and home fragrance categories. The Company sells its merchandise through company-owned specialty retail stores in the U.S., Canada, U.K. and Greater China, 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 • 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, “ 2016 ”, “ 2015 ” and “ 2014 ” refer to the 52 -week periods ending January 28, 2017 , January 30, 2016 and January 31, 2015 |
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's net income or loss. Losses are only recognized to the extent the Company has positive carrying value related to the investee. Carrying values are only reduced below zero if the Company has an obligation to provide funding to the investee. The Company’s share of net income or loss of unconsolidated entities from which the Company purchases merchandise or merchandise components is included in Costs of Goods Sold, Buying and Occupancy on the Consolidated Statements of Income. The Company’s share of net income or loss of all other unconsolidated entities is included in Other Income on the Consolidated Statements of Income. The Company’s equity investments are required to be reviewed for impairment when it is determined there may be an other than temporary loss in value. |
Policy on consolidation of sales to equity investments | 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's net income or loss. Losses are only recognized to the extent the Company has positive carrying value related to the investee. Carrying values are only reduced below zero if the Company has an obligation to provide funding to the investee. The Company’s share of net income or loss of unconsolidated entities from which the Company purchases merchandise or merchandise components is included in Costs of Goods Sold, Buying and Occupancy on the Consolidated Statements of Income. The Company’s share of net income or loss of all other unconsolidated entities is included in Other Income on the Consolidated Statements of Income. The Company’s equity investments are required to be reviewed for impairment when it is determined there may be an other than temporary loss in value. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and Cash Equivalents include cash on hand, demand deposits with financial institutions and highly liquid investments with original maturities of less than 90 days. The Company’s outstanding checks, which totaled $5 million as of January 28, 2017 and $30 million as of January 30, 2016 , are included in Accounts Payable on the Consolidated Balance Sheets. |
Concentration of Credit Risk | Concentration of Credit Risk The Company maintains cash and cash equivalents and derivative contracts with various major financial institutions. The Company monitors the relative credit standing of financial institutions with whom the Company transacts and limits the amount of credit exposure with any one entity. Typically, the Company’s investment portfolio is primarily comprised of U.S. government obligations, U.S. Treasury and AAA-rated money market funds, 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. The Company records an allowance for uncollectable accounts when it becomes probable that the counterparty will be unable to pay. |
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block] | Marketable Equity Securities The Company has marketable equity securities which are classified as available-for-sale. The Company determines the appropriate classification of investments in equity securities at the acquisition date and re-evaluates the classification at each balance sheet date. This investment is recorded at fair value in other current assets on the Consolidated Balance Sheets, and unrealized holding gains and losses are recorded, net of tax, as a component of accumulated other comprehensive income. |
Inventories | Inventories Inventories are principally valued at the lower of cost or market, on a weighted-average cost basis. The Company records valuation adjustments to its inventories if the cost of inventory on hand exceeds the amount it expects to realize from the ultimate sale or disposal of the inventory. These estimates are based on management’s judgment regarding future demand and market conditions and analysis of historical experience. The Company also records inventory loss adjustments for estimated physical inventory losses that have occurred since the date of the last physical inventory. These estimates are based on management’s analysis of historical results and operating trends. |
Catalogue and Advertising Costs | Advertising Costs Advertising and catalogue costs are expensed at the time the promotion first appears in media, in the store or when the advertising is mailed. Advertising and catalogue costs totaled $325 million for 2016 , $414 million for 2015 and $436 million for 2014 . |
Property and Equipment | Property and Equipment The Company’s property and equipment are recorded at cost and depreciation/amortization is computed on a straight-line basis using the following depreciable life ranges: Category of Property and Equipment Depreciable Life Range Software, including software developed for internal use 3 - 7 years Store related assets 3 - 10 years Leasehold improvements Shorter of lease term or 10 years Non-store related building and site improvements 10 - 15 years Other property and equipment 20 years Buildings 30 years When a decision has been made to dispose of property and equipment prior to the end of the previously estimated useful life, depreciation estimates are revised to reflect the use of the asset over the shortened estimated useful life. The Company’s cost of assets sold or retired and the related accumulated depreciation are removed from the accounts with any resulting gain or loss included in net income. Maintenance and repairs are charged to expense as incurred. Major renewals and betterments that extend useful lives are capitalized. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company has certain intangible assets resulting from business combinations and acquisitions that are recorded at cost. Intangible assets with finite lives are amortized on a straight-line basis over their respective estimated useful lives. Intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset. Goodwill is reviewed for impairment each year in the fourth quarter and may be reviewed more frequently if certain events occur or circumstances change. First, the Company performs a qualitative assessment to determine whether it is more likely than not that each reporting unit's fair value is less than its carrying value, including goodwill. If the Company determines that it is more likely than not that the fair value of the reporting unit is less than its carrying value, the Company then estimates the fair value of all assets and liabilities of that reporting unit, including the implied fair value of goodwill, through either estimated discounted future cash flows or market-based methodologies. If the carrying value of goodwill exceeds the implied fair value, the Company recognizes an impairment charge equal to the difference. The Company's reporting units are determined in accordance with the provisions of Accounting Standards Codification ("ASC") Topic 350, Intangibles - Goodwill and Other . The Company's reporting units that have goodwill are Victoria's Secret Stores, Victoria's Secret Direct, Bath & Body Works Stores and Greater China. Intangible assets with indefinite lives are reviewed for impairment each year in the fourth quarter and may be reviewed more frequently if certain events occur or circumstances change. The Company first performs a qualitative assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. If the Company determines that it is more likely than not that the fair value of the asset is less than its carrying amount, the Company estimates the fair value, usually determined by the estimated discounted future cash flows of the asset, compare that value with its carrying amount and record an impairment charge, if any. If future economic conditions are different than those projected by management, future impairment charges may be required. |
Leases and Leasehold Improvements | Leases and Leasehold Improvements The Company has leases that contain predetermined fixed escalations of minimum rentals and/or rent abatements subsequent to taking possession of the leased property. The Company recognizes the related rent expense on a straight-line basis commencing upon the store possession date. The Company records the difference between the recognized rental expense and amounts payable under the leases as deferred lease credits. The Company’s liability for predetermined fixed escalations of minimum rentals and/or rent abatements totaled $191 million as of January 28, 2017 and $150 million as of January 30, 2016 . These liabilities are included in Other Long-term Liabilities on the Consolidated Balance Sheets. The Company receives construction allowances from landlords related to its retail stores. These allowances are generally comprised of cash amounts received by the Company from its landlords as part of the negotiated lease terms. The Company records a receivable and a landlord allowance at the lease commencement date (date of initial possession of the store). The landlord allowance is amortized on a straight-line basis as a reduction of rent expense over the term of the lease (including the pre-opening build-out period), and the receivable is reduced as amounts are received from the landlord. The Company’s unamortized portion of landlord allowances, which totaled $279 million as of January 28, 2017 and $212 million as of January 30, 2016 , is included in Other Long-term Liabilities on the Consolidated Balance Sheets. The Company also has leasehold improvements which are amortized over the shorter of their estimated useful lives or the period from the date the assets are placed in service to the end of the initial lease term. Leasehold improvements made after the inception of the initial lease term are depreciated over the shorter of their estimated useful lives or the remaining lease term, including renewal periods, if reasonably assured. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of the Company’s foreign operations is generally the applicable local currency. Assets and liabilities are translated into U.S. dollars using the current exchange rates in effect as of the balance sheet date, while revenues and expenses are translated at the average exchange rates for the period. The Company’s resulting translation adjustments are recorded as a component of Comprehensive Income in the Consolidated Statements of Comprehensive Income and the Consolidated Statements of Total Equity (Deficit). |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative financial instruments to manage exposure to foreign currency exchange rates and interest rates. The Company does not use derivative instruments for trading purposes. All derivative instruments are recorded on the Consolidated Balance Sheets at fair value. For derivative financial instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (loss) in shareholders’ equity and reclassified into earnings in the same period during which the hedged item affects earnings. Gains and losses that are reclassified into earnings are recognized in the same line item on the Consolidated Statement of Income as the underlying hedged item. Gains and losses on the derivative representing hedge ineffectiveness, if any, are recognized in current earnings. For derivative financial instruments that are designated and qualify as fair value hedges, the change in the fair value of the derivative instrument has an equal and offsetting impact to the carrying value of the liability on the balance sheet. For derivative financial instruments that are not designated as hedging instruments, the gain or loss on the derivative instrument is recognized in current earnings in Other Income in the Consolidated Statements of Income. |
Fair Value | Fair Value The authoritative guidance included in ASC Topic 820, Fair Value Measurement, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. This authoritative guidance further establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1—Quoted market prices in active markets for identical assets or liabilities. • Level 2—Observable inputs other than quoted market prices included in Level 1, such as quoted prices of similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company estimates the fair value of financial instruments, property and equipment and goodwill and intangible assets in accordance with the provisions of ASC Topic 820 . |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, taxes currently payable or refundable are accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are also recognized for realizable operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted income tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in income tax rates is recognized in the Company’s Consolidated Statement of Income in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if it is more likely than not that such assets will not be realized. U.S. deferred income taxes are not provided on undistributed income of foreign subsidiaries where such earnings are considered to be permanently reinvested for the foreseeable future. In determining the Company’s provision for income taxes, the Company considers permanent differences between book and tax income and statutory income tax rates. The Company’s effective income tax rate is affected by items including changes in tax law, the tax jurisdiction of new stores or business ventures and the level of earnings. The Company follows a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. The Company’s income tax returns, like those of most companies, are periodically audited by domestic and foreign tax authorities. These audits include questions regarding the Company’s tax filing positions, including the timing and amount of deductions and the allocation of income among various tax jurisdictions. At any one time, multiple tax years are subject to audit by the various tax authorities. A number of years may elapse before a particular matter for which the Company has established an accrual is audited and fully resolved or clarified. The Company adjusts its tax contingencies accrual and income tax provision in the period in which matters are effectively settled with tax authorities at amounts different from its established accrual, when the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. The Company includes its tax contingencies accrual, including accrued penalties and interest, in Other Long-term Liabilities on the Consolidated Balance Sheets unless the liability is expected to be paid within one year. Changes to the tax contingencies accrual, including accrued penalties and interest, are included in Provision for Income Taxes on the Consolidated Statements of Income. |
Self Insurance | Self-Insurance The Company is self-insured for medical, workers’ compensation, property, general liability and automobile liability up to certain stop-loss limits. Such costs are accrued based on known claims and an estimate of incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information and actuarial estimates. |
Noncontrolling Interest [Policy Text Block] | Noncontrolling Interest Noncontrolling interest represents the portion of equity interests of consolidated affiliates not owned by the Company. |
Share-based Compensation | Share-based Compensation The Company recognizes all share-based payments to employees and directors as compensation cost over the service period based on their estimated fair value on the date of grant. Compensation cost is recognized over the service period for the fair value of awards that actually vest. Compensation expense for awards without a performance condition is recognized, net of estimated forfeitures, using a single award approach (each award is valued as one grant, irrespective of the number of vesting tranches). Compensation expense for awards with a performance condition is recognized, net of estimated forfeitures, using a multiple award approach (each vesting tranche is valued as one grant). |
Revenue Recognition | Revenue Recognition The Company recognizes sales upon customer receipt of the merchandise, which for direct channel revenues reflects an estimate of shipments that have not yet been received by the customer based on shipping terms and historical delivery times. The Company’s shipping and handling revenues are included in Net Sales with the related costs included in Costs of Goods Sold, Buying and Occupancy on the Consolidated Statements of Income. The Company also provides a reserve for projected merchandise returns based on prior experience. Net Sales exclude sales tax collected from customers. The Company’s brands sell gift cards with no expiration dates to customers. The Company does not charge administrative fees on unused gift cards. The Company recognizes revenue from gift cards when they are redeemed by the customer. In addition, the Company recognizes revenue on unredeemed gift cards when it can determine that the likelihood of the gift card being redeemed is remote and that there is no legal obligation to remit the unredeemed gift cards to relevant jurisdictions (gift card breakage). The Company determines the gift card breakage rate based on historical redemption patterns. Gift card breakage is included in Net Sales in the Consolidated Statements of Income. The Company also recognizes revenues associated with franchise, license and wholesale arrangements. Revenue recognized under franchise and license arrangements generally consists of royalties earned and recognized upon sale of merchandise by franchise and license partners to retail customers. Revenue is generally recognized under wholesale and sourcing arrangements at the time the title passes to the partner. |
Costs of Goods Sold, Buying and Occupancy | Costs of Goods Sold, Buying and Occupancy The Company’s costs of goods sold include merchandise costs, net of discounts and allowances, freight and inventory shrinkage. The Company’s buying and occupancy expenses primarily include payroll, benefit costs and operating expenses for its buying departments and distribution network, rent, common area maintenance, real estate taxes, utilities, maintenance, fulfillment expenses and depreciation for the Company’s stores, warehouse facilities and equipment. |
General, Administrative and Store Operating Expenses | General, Administrative and Store Operating Expenses The Company’s general, administrative and store operating expenses primarily include payroll and benefit costs for its store-selling and administrative departments (including corporate functions), marketing, advertising and other operating expenses not specifically categorized elsewhere in the Consolidated Statements of Income. |
Use of Estimates in the Preparation of Financial Statements Policy | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. 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. |
Description of Business and S33
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Depreciable Life Range of Property Plant and Equipment | The Company’s property and equipment are recorded at cost and depreciation/amortization is computed on a straight-line basis using the following depreciable life ranges: Category of Property and Equipment Depreciable Life Range Software, including software developed for internal use 3 - 7 years Store related assets 3 - 10 years Leasehold improvements Shorter of lease term or 10 years Non-store related building and site improvements 10 - 15 years Other property and equipment 20 years Buildings 30 years |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Computation | The following table provides shares utilized for the calculation of basic and diluted earnings per share for 2016 , 2015 and 2014 : 2016 2015 2014 (in millions) Weighted-average Common Shares: Issued Shares 314 312 309 Treasury Shares (27 ) (21 ) (17 ) Basic Shares 287 291 292 Effect of Dilutive Options and Restricted Stock 4 6 6 Diluted Shares 291 297 298 Anti-dilutive Options and Awards (a) 2 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. |
Acquisition Acquisition (Tables
Acquisition Acquisition (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The allocation of the purchase price to the fair value of assets acquired and liabilities assumed is as follows: (in millions) Cash and Cash Equivalents $ 1 Inventories 3 Property and Equipment 10 Goodwill 30 Other Assets 3 Current Liabilities (3 ) Net Assets Acquired $ 44 Forgiveness of Liabilities Owed to the Company (10 ) Consideration Paid $ 34 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Summary of inventories | The following table provides details of inventories as of January 28, 2017 and January 30, 2016 : January 28, January 30, (in millions) Finished Goods Merchandise $ 982 $ 1,014 Raw Materials and Merchandise Components 114 108 Total Inventories $ 1,096 $ 1,122 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Property, Plant and Equipment, Net | The following table provides details of property and equipment, net as of January 28, 2017 and January 30, 2016 : January 28, January 30, (in millions) Land and Improvements $ 113 $ 108 Buildings and Improvements 476 460 Furniture, Fixtures, Software and Equipment 3,560 3,181 Leasehold Improvements 2,044 1,809 Construction in Progress 89 81 Total 6,282 5,639 Accumulated Depreciation and Amortization (3,541 ) (3,309 ) Property and Equipment, Net $ 2,741 $ 2,330 |
Goodwill, Trade Names and Oth38
Goodwill, Trade Names and Other Intangible Assets, Net (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Schedule of Indefinite-Lived Intangible Assets [Table Text Block] | The following table provides additional detail regarding the composition of trade names as of January 28, 2017 and January 30, 2016 : January 28, 2017 January 30, 2016 (in millions) Victoria's Secret $ 246 $ 246 Bath & Body Works 165 165 Trade Names $ 411 $ 411 |
Schedule of Goodwill | The following table provides detail regarding the composition of goodwill for the fiscal years ended January 28, 2017 and January 30, 2016 : January 28, 2017 January 30, 2016 (in millions) Victoria's Secret $ 690 $ 690 Bath & Body Works 628 628 Victoria's Secret and Bath & Body Works International 30 — Goodwill $ 1,348 $ 1,318 |
Accrued Expenses and Other (Tab
Accrued Expenses and Other (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Composition of Accrued Expenses and Other | The following table provides additional information about the composition of accrued expenses and other as of January 28, 2017 and January 30, 2016 : January 28, January 30, (in millions) Deferred Revenue, Principally from Gift Card Sales $ 259 $ 243 Compensation, Payroll Taxes and Benefits 191 238 Interest 99 100 Taxes, Other than Income 82 76 Rent 48 48 Accrued Claims on Self-insured Activities 35 35 Returns Reserve 21 27 Other 262 210 Total Accrued Expenses and Other $ 997 $ 977 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The following table provides the components of the Company’s provision for income taxes for 2016 , 2015 and 2014 : 2016 2015 2014 (in millions) Current: U.S. Federal $ 345 $ 553 $ 454 U.S. State 62 96 69 Non-U.S. 21 21 21 Total 428 670 544 Deferred: U.S. Federal 99 17 46 U.S. State 8 6 3 Non-U.S. 3 (12 ) 1 Total 110 11 50 Provision for Income Taxes $ 538 $ 681 $ 594 |
Reconciliation of the Statutory Federal Income Tax Rate and the Effective Tax Rate | The following table provides the reconciliation between the statutory federal income tax rate and the effective tax rate for 2016 , 2015 and 2014 : 2016 2015 2014 Federal Income Tax Rate 35.0 % 35.0 % 35.0 % State Income Taxes, Net of Federal Income Tax Effect 3.4 % 3.4 % 3.6 % Impact of Non-U.S. Operations (1.2 )% (1.7 )% (1.3 )% Foreign Portion of the Divestiture of Third-party Apparel Sourcing Business — % (0.9 )% — % Resolution of Certain Tax Matters (4.0 )% — % (0.3 )% Other Items, Net (1.5 )% (0.6 )% (0.7 )% Effective Tax Rate 31.7 % 35.2 % 36.3 % |
Effect of Temporary Differences that Cause Deferred Income Taxes | The following table provides the effect of temporary differences that cause deferred income taxes as of January 28, 2017 and January 30, 2016 . Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carryforwards at the end of the respective year. January 28, 2017 January 30, 2016 Assets Liabilities Total Assets Liabilities Total (in millions) Leases $ 68 $ — $ 68 $ 54 $ — $ 54 Non-qualified Retirement Plan 96 — 96 103 — 103 Property and Equipment — (413 ) (413 ) — (330 ) (330 ) Goodwill — (15 ) (15 ) — (15 ) (15 ) Trade Names and Other Intangibles — (141 ) (141 ) — (141 ) (141 ) State Net Operating Loss Carryforwards 15 — 15 17 — 17 Non-U.S. Operating Loss Carryforwards 155 — 155 157 — 157 Valuation Allowance (174 ) — (174 ) (164 ) — (164 ) Other, Net 76 — 76 92 — 92 Total Deferred Income Taxes $ 236 $ (569 ) $ (333 ) $ 259 $ (486 ) $ (227 ) |
Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits for U.S. federal, state & non-U.S. tax jurisdictions for 2016 , 2015 and 2014 , without interest and penalties: 2016 2015 2014 (in millions) Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year $ 248 $ 193 $ 167 Increases in Unrecognized Tax Benefits for Prior Years 3 8 16 Decreases in Unrecognized Tax Benefits for Prior Years (73 ) (3 ) (14 ) Increases in Unrecognized Tax Benefits as a Result of Current Year Activity 18 54 36 Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities (98 ) — (5 ) Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations (8 ) (4 ) (7 ) Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year $ 90 $ 248 $ 193 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The following table provides the Company’s debt balance, net of debt issuance costs and unamortized discounts, as of January 28, 2017 and January 30, 2016 : January 28, January 30, (in millions) Senior Unsecured Debt with Subsidiary Guarantee $1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) $ 989 $ 988 $1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) 992 991 $1 billion, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”) 992 990 $700 million, 6.75% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) 692 — $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) 497 496 $500 million, 8.50% Fixed Interest Rate Notes due June 2019 (“2019 Notes”) (a) 496 499 $400 million, 7.00% Fixed Interest Rate Notes due May 2020 (“2020 Notes”) 397 396 Total Senior Unsecured Debt with Subsidiary Guarantee $ 5,055 $ 4,360 Senior Unsecured Debt $350 million, 6.95% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) $ 348 $ 348 $300 million, 7.60% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) 297 297 $700 million, 6.90% Fixed Interest Rate Notes due July 2017 (“2017 Notes”) (b) — 709 Foreign Facilities 36 7 Total Senior Unsecured Debt $ 681 $ 1,361 Total $ 5,736 $ 5,721 Current Portion of Long-term Debt (36 ) (6 ) Total Long-term Debt, Net of Current Portion $ 5,700 $ 5,715 _______________ (a) The balances include a fair value interest rate hedge adjustment which increased the debt balance by $2 million as of January 28, 2017 and $8 million as of January 30, 2016 . (b) The balance includes a fair value interest rate hedge adjustment which increased the debt balance by $10 million as of January 30, 2016 . |
Schedule of Principal Payments due on Long-term Debt [Text Block] | The following table provides principal payments due on outstanding debt in the next five fiscal years and the remaining years thereafter: Fiscal Year (in millions) 2017 $ 36 2018 — 2019 500 2020 400 2021 1,000 Thereafter $ 3,850 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Foreign Exchange Contract [Member] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table provides the U.S. dollar notional amount of outstanding foreign currency derivative financial instruments as of January 28, 2017 and January 30, 2016 : January 28, January 30, (in millions) Notional Amount $ 360 $ 147 |
Fair Value Hedging [Member] | Interest Rate Swap [Member] | |
Schedule of Derivative Instruments in Statement of Financial Position | The following table provides a summary of the fair value and balance sheet classification of the derivative financial instruments designated as interest rate fair value hedges as of January 28, 2017 and January 30, 2016 : January 28, January 30, (in millions) Other Long-term Assets $ 2 $ 11 |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | |
Schedule of Derivative Instruments in Statement of Financial Position | The following table provides a summary of the fair value and balance sheet classification of outstanding derivative financial instruments designated as foreign currency cash flow hedges as of January 28, 2017 and January 30, 2016 : January 28, January 30, (in millions) Other Current Assets $ 18 $ — Accrued Expenses and Other 1 — Other Long-term Assets — 27 |
Schedule of Derivative Instruments in Statement of Financial Performance | 2016 and 2015 : 2016 2015 (in millions) Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) $ (8 ) $ 6 (Gain) Loss Reclassified from Accumulated Other Comprehensive Income into Cost of Goods Sold, Buying and Occupancy Expense (a) (1 ) — (Gain) Loss Reclassified from Accumulated Other Comprehensive Income into Other Income (b) 8 14 ________________ (a) Represents reclassification of amounts from accumulated other comprehensive income (loss) to earnings when the hedged merchandise is sold to the customer. No ineffectiveness was associated with these foreign currency cash flow hedges. (b) Represents reclassification of amounts from accumulated other comprehensive income (loss) to earnings to completely offset foreign currency transaction gains and losses recognized on the intercompany loan. No ineffectiveness was associated with this foreign currency cash flow hedge. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Carrying Value And Fair Value Of Long Term Debt, Disclosure | The following table provides a summary of the principal value and estimated fair value of long-term debt as of January 28, 2017 and January 30, 2016 : January 28, January 30, (in millions) Principal Value $ 5,750 $ 5,750 Fair Value (a) 6,030 6,209 ________________ (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 Measurement . The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange. |
Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table provides a summary of assets and liabilities measured in the consolidated financial statements at fair value on a recurring basis as of January 28, 2017 and January 30, 2016 : Level 1 Level 2 Level 3 Total (in millions) As of January 28, 2017 Assets: Cash and Cash Equivalents $ 1,934 $ — $ — $ 1,934 Marketable Securities 5 — — 5 Interest Rate Fair Value Hedges — 2 — 2 Foreign Currency Cash Flow Hedges — 18 — 18 Liabilities: Foreign Currency Cash Flow Hedges — 1 — 1 As of January 30, 2016 Assets: Cash and Cash Equivalents $ 2,548 $ — $ — $ 2,548 Marketable Securities 22 — — 22 Interest Rate Fair Value Hedges — 11 — 11 Foreign Currency Cash Flow Hedges — 27 — 27 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 12 Months Ended | |
Jan. 28, 2017 | Jan. 30, 2016 | |
Comprehensive Income Loss | ||
Components of Accumulated Other Comprehensive Income (Loss) | The following table provides the rollforward of accumulated other comprehensive income (loss) for 2016 : Foreign Currency Translation Cash Flow Hedges Marketable Securities Accumulated Other Comprehensive Income (Loss) (in millions) Balance as of January 30, 2016 $ 28 $ 4 $ 8 $ 40 Other Comprehensive Income (Loss) Before Reclassifications (19 ) (8 ) (8 ) (35 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 7 (4 ) 3 Tax Effect — — 4 4 Current-period Other Comprehensive Income (Loss) (19 ) (1 ) (8 ) (28 ) Balance as of January 28, 2017 $ 9 $ 3 $ — $ 12 | The following table provides the rollforward of accumulated other comprehensive income (loss) for 2015 : Foreign Currency Translation Cash Flow Hedges Marketable Securities Accumulated Other Comprehensive Income (Loss) (in millions) Balance as of January 31, 2015 $ 51 $ (16 ) $ — $ 35 Other Comprehensive Income (Loss) Before Reclassifications (23 ) 6 12 (5 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 14 — 14 Tax Effect — — (4 ) (4 ) Current-period Other Comprehensive Income (Loss) (23 ) 20 8 5 Balance as of January 30, 2016 $ 28 $ 4 $ 8 $ 40 |
Reclassification out of Accumulated Other Comprehensive Income | The following table provides a summary of the reclassification adjustments out of accumulated other comprehensive income for 2016 : Details About Accumulated Other Comprehensive Income (Loss) Components Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Location on Consolidated Statements of Income 2016 2015 (in millions) (Gain) Loss on Cash Flow Hedges $ (1 ) $ — Cost of Goods Sold, Buying and Occupancy 8 14 Other Income — — Provision for Income Taxes $ 7 $ 14 Net Income Sale of Available-for-Sale Securities $ (4 ) $ — Other Income 1 — Provision for Income Taxes $ (3 ) $ — Net Income |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Leases [Abstract] | |
Remaining noncancelable lease term, minimum (in years) | 1 |
Remaining noncancelable lease term, maximum (in years) | 10 |
Leases Rent Expenses | The following table provides rent expense for 2016 , 2015 and 2014 : 2016 2015 2014 (in millions) Store Rent: Fixed Minimum $ 607 $ 535 $ 516 Contingent 71 73 63 Total Store Rent 678 608 579 Office, Equipment and Other 87 77 68 Gross Rent Expense 765 685 647 Sublease Rental Income (2 ) (2 ) (2 ) Total Rent Expense $ 763 $ 683 $ 645 |
Minimum Rent Commitments Operating Leases | The following table provides the Company’s minimum rent commitments under noncancellable operating leases in the next five fiscal years and the remaining years thereafter: Fiscal Year (in millions) (a) 2017 $ 707 2018 651 2019 605 2020 571 2021 531 Thereafter $ 2,112 ________________ (a) Excludes additional payments covering taxes, common area costs and certain other expenses generally required by store lease terms. |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Retirement Benefits [Abstract] | |
Annual activity for the non-qualified plan and year-end liability | The following table provides the Company’s annual activity for this plan and year-end liability, included in Other Long-term Liabilities on the Consolidated Balance Sheets, as of January 28, 2017 and January 30, 2016 : January 28, January 30, (in millions) Balance at Beginning of Year $ 274 $ 257 Contributions: Associate 14 15 Company 14 17 Interest 12 13 Distributions (56 ) (28 ) Balance at End of Year $ 258 $ 274 |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Company's repurchase program | Under the authority of the Company’s Board of Directors, the Company repurchased shares of its common stock under the following repurchase programs for the fiscal years 2016 , 2015 and 2014 : Shares Repurchased Amount Repurchased Average Stock Price of Shares Repurchased within Program Repurchase Program Amount Authorized 2016 2015 2014 2016 2015 2014 (in millions) (in thousands) (in millions) February 2016 $ 500 5,719 NA NA $ 438 NA NA $ 76.63 June 2015 250 NA 2,680 NA NA $ 233 NA $ 87.06 February 2015 250 NA 2,788 NA NA 250 NA $ 89.45 November 2012 250 NA NA 1,317 NA NA $ 84 $ 54.02 Total 5,719 5,468 1,317 $ 438 $ 483 $ 84 |
Schedule Of Dividends Paid | Under the authority and declaration of the Board of Directors, the Company paid the following dividends during the fiscal years 2016 , 2015 and 2014 : Ordinary Dividends Special Dividends Total Dividends Total Paid (per share) (in millions) 2016 Fourth Quarter $ 0.60 $ — $ 0.60 $ 172 Third Quarter 0.60 — 0.60 173 Second Quarter 0.60 — 0.60 173 First Quarter 0.60 2.00 2.60 750 2016 Total $ 2.40 $ 2.00 $ 4.40 $ 1,268 2015 Fourth Quarter $ 0.50 $ — $ 0.50 $ 145 Third Quarter 0.50 — 0.50 146 Second Quarter 0.50 — 0.50 146 First Quarter 0.50 2.00 2.50 734 2015 Total $ 2.00 $ 2.00 $ 4.00 $ 1,171 2014 Fourth Quarter $ 0.34 $ — $ 0.34 $ 100 Third Quarter 0.34 — 0.34 100 Second Quarter 0.34 — 0.34 99 First Quarter 0.34 1.00 1.34 392 2014 Total $ 1.36 $ 1.00 $ 2.36 $ 691 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Share-based Compensation [Abstract] | |
Stock Option Activity | The following table provides the Company’s stock option activity for the fiscal year ended January 28, 2017 : Number of Shares Weighted Average Option Price Per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding as of January 30, 2016 5,491 $ 42.40 Granted 851 84.92 Exercised (639 ) 32.58 Cancelled (399 ) 69.44 Adjustment for Special Dividend 135 Outstanding as of January 28, 2017 5,439 $ 47.17 5.66 $ 108,075 Vested and Expected to Vest as of January 28, 2017 (a) 5,329 46.41 5.60 107,961 Options Exercisable as of January 28, 2017 3,292 29.90 4.09 100,470 ________________ (a) The number of options expected to vest includes an estimate of expected forfeitures. |
Weighted-Average Assumptions | The following table contains the weighted-average assumptions used during 2016 , 2015 and 2014 : 2016 2015 2014 Expected Volatility 25 % 26 % 30 % Risk-free Interest Rate 1.1 % 1.1 % 1.4 % Dividend Yield 3.3 % 2.7 % 3.0 % Expected Life (in years) 4.1 4.5 4.6 |
Restricted Stock Activity | The following table provides the Company’s restricted stock activity for the fiscal year ended January 28, 2017 : Number of Shares Weighted Average Grant Date Fair Value (in thousands) Unvested as of January 30, 2016 5,791 $ 54.41 Granted 1,758 75.09 Vested (1,754 ) 38.93 Cancelled (646 ) 63.11 Adjustment for Special Dividend 143 N/A Unvested as of January 28, 2017 5,292 64.14 |
Share-Based Compensation Expense | The following table provides share-based compensation expense included in the Consolidated Statements of Income for 2016 , 2015 and 2014 : 2016 2015 2014 (in millions) Costs of Goods Sold, Buying and Occupancy $ 31 $ 27 $ 24 General, Administrative and Store Operating Expenses 65 70 66 Total Share-based Compensation Expense $ 96 $ 97 $ 90 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jan. 28, 2017 | |
Segment Information [Abstract] | |
Schedule of Segment Reporting Information | The following table provides the Company’s segment information as of and for the fiscal years ended January 28, 2017 , January 30, 2016 and January 31, 2015 : Victoria’s Secret Bath & Body Works Victoria’s Secret and Bath & Body Works International Other Total (in millions) January 28, 2017 Net Sales $ 7,781 $ 3,852 $ 423 $ 518 $ 12,574 Depreciation and Amortization 252 91 17 112 472 Operating Income (Loss) 1,173 907 40 (117 ) 2,003 Total Assets (a) 3,285 1,632 593 2,660 8,170 Capital Expenditures 460 250 68 212 990 January 30, 2016 Net Sales $ 7,672 $ 3,587 $ 385 $ 510 $ 12,154 Depreciation and Amortization 218 70 16 111 415 Operating Income (Loss) 1,391 858 88 (145 ) 2,192 Total Assets (a) 3,163 1,556 436 3,338 8,493 Capital Expenditures 411 166 33 117 727 January 31, 2015 Net Sales $ 7,207 $ 3,350 $ 336 $ 561 $ 11,454 Depreciation and Amortization 198 65 16 119 398 Operating Income (Loss) 1,271 737 78 (133 ) 1,953 Total Assets (a) 2,950 1,365 369 2,792 7,476 Capital Expenditures 446 77 37 155 715 ________________ (a) Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. |
Quarterly Financial Data (Una50
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |
Jan. 28, 2017 | Jan. 30, 2016 | |
Quarterly Financial Data [Abstract] | ||
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following table provides summarized quarterly financial data for 2016 : Fiscal Quarter Ended April 30, 2016 (a) July 30, 2016 (b) October 29, 2016 January 28, 2017 (c) (in millions except per share data) Net Sales $ 2,614 $ 2,890 $ 2,581 $ 4,489 Gross Profit 1,043 1,113 1,025 1,944 Operating Income 323 408 284 988 Income Before Income Taxes 233 380 190 893 Net Income 152 252 122 632 Net Income Per Basic Share (d) $ 0.53 $ 0.88 $ 0.43 $ 2.21 Net Income Per Diluted Share (d) $ 0.52 $ 0.87 $ 0.42 $ 2.18 ________________ (a) Includes the effect of a pre-tax gain of $35 million ( $21 million net of tax) included in operating income, related to actions at Victoria's Secret, including severance charges, fabric cancellations and the write-off of catalogue paper. (b) Includes the effect of a pre-tax gain of $108 million ( $70 million net of tax) related to a cash distribution from Easton Town Center, offset by a pre-tax loss of $36 million ( $22 million net of tax) associated with the early extinguishment of the 2017 Notes, included in other income. (c) Includes the effect of a $42 million tax benefit related to the favorable resolution of a discrete income tax matter. (d) Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. The following table provides summarized quarterly financial data for 2015 : Fiscal Quarter Ended May 2, 2015 (a) August 1, 2015 October 31, 2015 January 30, 2016 (in millions except per share data) Net Sales $ 2,512 $ 2,765 $ 2,482 $ 4,395 Gross Profit 1,056 1,114 1,031 2,002 Operating Income 372 403 339 1,078 Income Before Income Taxes 369 323 260 982 Net Income 250 202 164 636 Net Income Per Basic Share (b) $ 0.86 $ 0.69 $ 0.56 $ 2.19 Net Income Per Diluted Share (b) $ 0.84 $ 0.68 $ 0.55 $ 2.15 ________________ (a) Includes the effect of a pre-tax gain of $78 million ( $69 million net of tax) included in other income, related to the sale of our remaining interest in the third-party apparel sourcing business. (b) Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. | |
Summarized Quarterly Financial Data | The following table provides summarized quarterly financial data for 2016 : Fiscal Quarter Ended April 30, 2016 (a) July 30, 2016 (b) October 29, 2016 January 28, 2017 (c) (in millions except per share data) Net Sales $ 2,614 $ 2,890 $ 2,581 $ 4,489 Gross Profit 1,043 1,113 1,025 1,944 Operating Income 323 408 284 988 Income Before Income Taxes 233 380 190 893 Net Income 152 252 122 632 Net Income Per Basic Share (d) $ 0.53 $ 0.88 $ 0.43 $ 2.21 Net Income Per Diluted Share (d) $ 0.52 $ 0.87 $ 0.42 $ 2.18 ________________ (a) Includes the effect of a pre-tax gain of $35 million ( $21 million net of tax) included in operating income, related to actions at Victoria's Secret, including severance charges, fabric cancellations and the write-off of catalogue paper. (b) Includes the effect of a pre-tax gain of $108 million ( $70 million net of tax) related to a cash distribution from Easton Town Center, offset by a pre-tax loss of $36 million ( $22 million net of tax) associated with the early extinguishment of the 2017 Notes, included in other income. (c) Includes the effect of a $42 million tax benefit related to the favorable resolution of a discrete income tax matter. (d) Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. | The following table provides summarized quarterly financial data for 2015 : Fiscal Quarter Ended May 2, 2015 (a) August 1, 2015 October 31, 2015 January 30, 2016 (in millions except per share data) Net Sales $ 2,512 $ 2,765 $ 2,482 $ 4,395 Gross Profit 1,056 1,114 1,031 2,002 Operating Income 372 403 339 1,078 Income Before Income Taxes 369 323 260 982 Net Income 250 202 164 636 Net Income Per Basic Share (b) $ 0.86 $ 0.69 $ 0.56 $ 2.19 Net Income Per Diluted Share (b) $ 0.84 $ 0.68 $ 0.55 $ 2.15 ________________ (a) Includes the effect of a pre-tax gain of $78 million ( $69 million net of tax) included in other income, related to the sale of our remaining interest in the third-party apparel sourcing business. (b) Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income per share amounts may not equal the net income per share for the year. |
Supplemental Guarantor Financ51
Supplemental Guarantor Financial Information Supplemental Guarantor Financial Information (Tables) | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Supplemental Guarantor Financial Statements [Abstract] | |||
Condensed Balance Sheet [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) January 28, 2017 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 1,562 $ 372 $ — $ 1,934 Accounts Receivable, Net — 228 66 — 294 Inventories — 976 120 — 1,096 Other — 53 88 — 141 Total Current Assets — 2,819 646 — 3,465 Property and Equipment, Net — 1,897 844 — 2,741 Goodwill — 1,318 30 — 1,348 Trade Names and Other Intangible Assets, Net — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 4,923 15,824 1,350 (22,097 ) — Deferred Income Taxes — 10 9 — 19 Other Assets 130 28 639 (611 ) 186 Total Assets $ 5,053 $ 22,307 $ 3,518 $ (22,708 ) $ 8,170 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ 3 $ 326 $ 354 $ — $ 683 Accrued Expenses and Other 100 526 371 — 997 Current Portion of Long-term Debt — — 36 — 36 Income Taxes (11 ) 221 88 — 298 Total Current Liabilities 92 1,073 849 — 2,014 Deferred Income Taxes (3 ) (93 ) 448 — 352 Long-term Debt 5,700 597 — (597 ) 5,700 Other Long-term Liabilities 3 761 81 (14 ) 831 Total Equity (Deficit) (739 ) 19,969 2,140 (22,097 ) (727 ) Total Liabilities and Equity (Deficit) $ 5,053 $ 22,307 $ 3,518 $ (22,708 ) $ 8,170 | L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) January 30, 2016 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 2,190 $ 358 $ — $ 2,548 Accounts Receivable, Net 1 202 58 — 261 Inventories — 978 144 — 1,122 Other — 115 110 — 225 Total Current Assets 1 3,485 670 — 4,156 Property and Equipment, Net — 1,574 756 — 2,330 Goodwill — 1,318 — — 1,318 Trade Names and Other Intangible Assets, Net — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 5,368 13,649 1,242 (20,259 ) — Deferred Income Taxes — 11 19 — 30 Other Assets 141 40 679 (612 ) 248 Total Assets $ 5,510 $ 20,488 $ 3,366 $ (20,871 ) $ 8,493 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ — $ 333 $ 335 $ — $ 668 Accrued Expenses and Other 100 519 358 — 977 Current Portion of Long-term Debt — — 6 — 6 Income Taxes (3 ) 237 (10 ) — 224 Total Current Liabilities 97 1,089 689 — 1,875 Deferred Income Taxes (3 ) (86 ) 346 — 257 Long-term Debt 5,714 597 1 (597 ) 5,715 Other Long-term Liabilities — 670 248 (14 ) 904 Total Equity (Deficit) (298 ) 18,218 2,082 (20,260 ) (258 ) Total Liabilities and Equity (Deficit) $ 5,510 $ 20,488 $ 3,366 $ (20,871 ) $ 8,493 | |
Condensed Income Statement [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) 2016 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 11,959 $ 3,533 $ (2,918 ) $ 12,574 Costs of Goods Sold, Buying and Occupancy — (7,277 ) (2,854 ) 2,682 (7,449 ) Gross Profit — 4,682 679 (236 ) 5,125 General, Administrative and Store Operating Expenses (8 ) (2,843 ) (457 ) 186 (3,122 ) Operating Income (Loss) (8 ) 1,839 222 (50 ) 2,003 Interest Expense (394 ) (60 ) (11 ) 71 (394 ) Other Income (35 ) 3 119 — 87 Income (Loss) Before Income Taxes (437 ) 1,782 330 21 1,696 Provision (Benefit) for Income Taxes (10 ) 432 116 — 538 Equity in Earnings, Net of Tax 1,585 39 376 (2,000 ) — Net Income (Loss) $ 1,158 $ 1,389 $ 590 $ (1,979 ) $ 1,158 | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) 2015 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Sales $ — $ 11,475 $ 3,570 $ (2,891 ) $ 12,154 Costs of Goods Sold, Buying and Occupancy — (6,843 ) (2,858 ) 2,751 (6,950 ) Gross Profit — 4,632 712 (140 ) 5,204 General, Administrative and Store Operating Expenses (12 ) (2,688 ) (440 ) 128 (3,012 ) Operating Income (Loss) (12 ) 1,944 272 (12 ) 2,192 Interest Expense (334 ) (38 ) (9 ) 47 (334 ) Other Income — 5 71 — 76 Income (Loss) Before Income Taxes (346 ) 1,911 334 35 1,934 Provision (Benefit) for Income Taxes (2 ) 478 205 — 681 Equity in Earnings, Net of Tax 1,597 94 348 (2,039 ) — Net Income (Loss) $ 1,253 $ 1,527 $ 477 $ (2,004 ) $ 1,253 | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) 2014 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Sales $ — $ 10,711 $ 3,343 $ (2,600 ) $ 11,454 Costs of Goods Sold, Buying and Occupancy — (6,449 ) (2,611 ) 2,414 (6,646 ) Gross Profit — 4,262 732 (186 ) 4,808 General, Administrative and Store Operating Expenses (6 ) (2,538 ) (446 ) 135 (2,855 ) Operating Income (Loss) (6 ) 1,724 286 (51 ) 1,953 Interest Expense (324 ) (35 ) (9 ) 44 (324 ) Other Income 1 — 6 — 7 Income (Loss) Before Income Taxes (329 ) 1,689 283 (7 ) 1,636 Provision (Benefit) for Income Taxes (3 ) 385 212 — 594 Equity in Earnings, Net of Tax 1,368 46 316 (1,730 ) — Net Income (Loss) $ 1,042 $ 1,350 $ 387 $ (1,737 ) $ 1,042 |
Condensed Comprehensive Income Statement [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) 2016 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Income (Loss) $ 1,158 $ 1,389 $ 590 $ (1,979 ) $ 1,158 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — (19 ) — (19 ) Unrealized Loss on Cash Flow Hedges — — (8 ) — (8 ) Reclassification of Cash Flow Hedges to Earnings — — 7 — 7 Unrealized Loss on Marketable Securities — — (5 ) — (5 ) Reclassification of Gain on Marketable Securities to Earnings — — (3 ) — (3 ) Total Other Comprehensive Income (Loss), Net of Tax — — (28 ) — (28 ) Total Comprehensive Income $ 1,158 $ 1,389 $ 562 $ (1,979 ) $ 1,130 | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) 2015 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Income (Loss) $ 1,253 $ 1,527 $ 477 $ (2,004 ) $ 1,253 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — (23 ) — (23 ) Unrealized Gain on Cash Flow Hedges — — 6 — 6 Reclassification of Cash Flow Hedges to Earnings — — 14 — 14 Unrealized Gain on Marketable Securities — — 8 — 8 Total Other Comprehensive Income, Net of Tax — — 5 — 5 Total Comprehensive Income $ 1,253 $ 1,527 $ 482 $ (2,004 ) $ 1,258 | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) 2014 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Income (Loss) $ 1,042 $ 1,350 $ 387 $ (1,737 ) $ 1,042 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — 21 — 21 Unrealized Gain on Cash Flow Hedges — — 34 — 34 Reclassification of Cash Flow Hedges to Earnings — — (60 ) — (60 ) Total Other Comprehensive Income (Loss), Net of Tax — — (5 ) — (5 ) Total Comprehensive Income $ 1,042 $ 1,350 $ 382 $ (1,737 ) $ 1,037 |
Condensed Cash Flow Statement [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) 2016 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ (462 ) $ 1,848 $ 504 $ — $ 1,890 Investing Activities: Capital Expenditures — (705 ) (285 ) — (990 ) Return of Capital from Easton Town Center, LLC — — 108 — 108 Acquisition, Net of Cash Acquired of $1 — — (33 ) — (33 ) Proceeds from Sale of Assets — — 53 — 53 Proceeds from Sale of Marketable Securities — — 10 — 10 Other Investing Activities — (2 ) 21 — 19 Net Cash Used for Investing Activities — (707 ) (126 ) — (833 ) Financing Activities: Proceeds from Issuance of Long-term Debt, Net of Issuance Costs 692 — — — 692 Payments of Long-term Debt (742 ) — — — (742 ) Borrowings from Debt Facilities — — 35 — 35 Repayments on Debt Facilities — — (6 ) — (6 ) Dividends Paid (1,268 ) — — — (1,268 ) Repurchases of Common Stock (435 ) — — — (435 ) Excess Tax Benefits from Share-based Compensation — 37 5 — 42 Net Financing Activities and Advances to/from Consolidated Affiliates 2,195 (1,803 ) (392 ) — — Proceeds From Exercise of Stock Options 20 — — — 20 Financing Costs and Other — (3 ) — — (3 ) Net Cash Provided by (Used for) Financing Activities 462 (1,769 ) (358 ) — (1,665 ) Effects of Exchange Rate Changes on Cash — — (6 ) — (6 ) Net Increase in Cash and Cash Equivalents — (628 ) 14 — (614 ) Cash and Cash Equivalents, Beginning of Year — 2,190 358 — 2,548 Cash and Cash Equivalents, End of Year $ — $ 1,562 $ 372 $ — $ 1,934 | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) 2015 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ (322 ) $ 1,835 $ 356 $ — $ 1,869 Investing Activities: Capital Expenditures — (506 ) (221 ) — (727 ) Proceeds from Sale of Assets — — 196 — 196 Proceeds from Sale of Marketable Securities — 50 — — 50 Proceeds from Divestiture of Third-party Apparel Sourcing Business — 1 84 — 85 Purchases of Marketable Securities — (50 ) (10 ) — (60 ) Other Investing Activities — — 13 — 13 Net Cash Used for Investing Activities — (505 ) 62 — (443 ) Financing Activities: Proceeds from Issuance of Long-term Debt, Net of Issuance Costs 988 — — — 988 Borrowings from Debt Facilities — — 7 — 7 Dividends Paid (1,171 ) — — — (1,171 ) Repurchases of Common Stock (483 ) — — — (483 ) Excess Tax Benefits from Share-based Compensation — 62 8 — 70 Net Financing Activities and Advances to/from Consolidated Affiliates 955 (662 ) (293 ) — — Proceeds From Exercise of Stock Options 33 — — — 33 Financing Costs and Other — (2 ) — — (2 ) Net Cash Provided by (Used for) Financing Activities 322 (602 ) (278 ) — (558 ) Effects of Exchange Rate Changes on Cash — — (1 ) — (1 ) Net Increase in Cash and Cash Equivalents — 728 139 — 867 Cash and Cash Equivalents, Beginning of Year — 1,462 219 — 1,681 Cash and Cash Equivalents, End of Year $ — $ 2,190 $ 358 $ — $ 2,548 | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) 2014 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ (333 ) $ 1,677 $ 442 $ — $ 1,786 Investing Activities: Capital Expenditures — (486 ) (229 ) — (715 ) Other Investing Activities — (1 ) 17 — 16 Net Cash Used for Investing Activities — (487 ) (212 ) — (699 ) Financing Activities: Payments of Long-term Debt (213 ) — — — (213 ) Borrowings from Debt Facilities — — 5 — 5 Repayments on Debt Facilities — — (5 ) — (5 ) Dividends Paid (691 ) — — — (691 ) Repurchases of Common Stock (87 ) — — — (87 ) Excess Tax Benefits from Share-based Compensation — 37 6 — 43 Net Financing Activities and Advances to/from Consolidated Affiliates 1,295 (1,118 ) (177 ) — — Proceeds From Exercise of Stock Options 35 — — — 35 Financing Costs and Other (6 ) — — — (6 ) Net Cash Provided by (Used for) Financing Activities 333 (1,081 ) (171 ) — (919 ) Effects of Exchange Rate Changes on Cash — — (6 ) — (6 ) Net Increase (Decrease) in Cash and Cash Equivalents — 109 53 — 162 Cash and Cash Equivalents, Beginning of Year — 1,353 166 — 1,519 Cash and Cash Equivalents, End of Year $ — $ 1,462 $ 219 $ — $ 1,681 |
Description of Business and S52
Description of Business and Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Jan. 28, 2017USD ($) | Jan. 30, 2016USD ($) | Jan. 31, 2015USD ($) | |
Marketable Securities, Equity Securities, Current | $ 10 | ||
Deferred Rent Credit, Noncurrent | $ 191 | 150 | |
Maturity of short term investments, maximum, in days | 90 | ||
Outstanding Check Carrying Amount | $ 5 | 30 | |
Catalogue and advertising expense | 325 | 414 | $ 436 |
Unamortized portion of landlord allowances | $ 279 | $ 212 |
Description of Business and S53
Description of Business and Summary of Significant Accounting Policies (Depreciable Life Range of Property Plant and Equipment) (Details) | 12 Months Ended |
Jan. 28, 2017 | |
Software, including software developed for internal use | |
Depreciable Life Range | 3Â -Â 7Â years |
Store related assets | |
Depreciable Life Range | 3Â -Â 10Â years |
Leasehold improvements | |
Depreciable Life Range | Shorter of lease term or 10 years |
Non-store related building and site improvements | |
Depreciable Life Range | 10Â -Â 15Â years |
Other property and equipment | |
Depreciable Life Range | 20 years |
Buildings | |
Depreciable Life Range | 30 years |
Earnings Per Share (Shares Util
Earnings Per Share (Shares Utilized for the Calculation of Basic and Diluted Earnings per Share) (Details) - shares shares in Millions | 12 Months Ended | |||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | ||
Weighted-average Common Shares: | ||||
Issued Shares | 314 | 312 | 309 | |
Treasury Shares | (27) | (21) | (17) | |
Basic Shares | 287 | 291 | 292 | |
Effect of Dilutive Options and Restricted Stock | 4 | 6 | 6 | |
Diluted Shares | 291 | 297 | 298 | |
Anti-dilutive Options and Awards | [1] | 2 | 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. |
Acquisition Acquisition (Detail
Acquisition Acquisition (Details) $ in Millions | Apr. 18, 2016USD ($) | Jan. 28, 2017 |
Business Acquisition [Line Items] | ||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The allocation of the purchase price to the fair value of assets acquired and liabilities assumed is as follows: (in millions) Cash and Cash Equivalents $ 1 Inventories 3 Property and Equipment 10 Goodwill 30 Other Assets 3 Current Liabilities (3 ) Net Assets Acquired $ 44 Forgiveness of Liabilities Owed to the Company (10 ) Consideration Paid $ 34 | |
American Beauty Limited [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 1 | |
Business Combination, Consideration Transferred | $ 44 | |
Number of Stores | 26 | |
Debt Instrument, Decrease, Forgiveness | $ 10 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 3 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 10 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Including Goodwill | 30 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 3 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | 3 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 44 | |
Payments to Acquire Businesses, Gross | $ 34 |
Restructuring Activities (Detai
Restructuring Activities (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Apr. 30, 2016USD ($)position | Jan. 28, 2017USD ($) | |
Restructuring Charges | $ 35 | |
Payments for Restructuring | $ 16 | |
Restructuring Reserve, Accrual Adjustment | 4 | |
Restructuring Reserve | $ 5 | |
Home Office Employees [Member] | ||
Restructuring and Related Cost, Number of Positions Eliminated | position | 200 | |
Cost of Goods Sold, Buying and Occupancy [Member] | ||
Restructuring Charges | $ 11 | |
Selling, General and Administrative Expenses [Member] | ||
Severance Costs | 24 | |
Non-cash Charge [Member] | ||
Restructuring Charges | $ 10 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jan. 28, 2017 | Jan. 30, 2016 |
Inventory, Net [Abstract] | ||
Finished Goods Merchandise | $ 982 | $ 1,014 |
Raw Materials and Merchandise Components | 114 | 108 |
Total Inventories | $ 1,096 | $ 1,122 |
Property and Equipment, Net (Na
Property and Equipment, Net (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Depreciation expense | $ 518 | $ 457 | $ 438 |
Property, Plant and Equipment, Net | 2,741 | 2,330 | |
Sale Leaseback Transaction, Net Book Value | 51 | 177 | |
Sale Leaseback Transaction, Gross Proceeds, Investing Activities | $ 51 | $ 178 |
Property and Equipment, Net (De
Property and Equipment, Net (Details of Property and Equipment, Net) (Details) - USD ($) $ in Millions | Jan. 28, 2017 | Jan. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Land and Land Improvements | $ 113 | $ 108 |
Buildings and Improvements | 476 | 460 |
Furniture, Fixtures, Software and Equipment | 3,560 | 3,181 |
Leasehold Improvements | 2,044 | 1,809 |
Construction in Progress | 89 | 81 |
Total | 6,282 | 5,639 |
Accumulated Depreciation and Amortization | (3,541) | (3,309) |
Property and Equipment, Net | $ 2,741 | $ 2,330 |
Goodwill, Trade Names and Oth60
Goodwill, Trade Names and Other Intangible Assets, Net (Narrative) (Details) $ in Millions | Jan. 28, 2017USD ($) | Apr. 18, 2016 | Jan. 30, 2016USD ($) |
Goodwill | $ 1,348 | $ 1,318 | |
Victoria's Secret and Bath & Body Works International [Member] | |||
Goodwill | 30 | 0 | |
Victoria's Secret Segment [Member] | |||
Goodwill | $ 690 | $ 690 | |
American Beauty Limited [Member] | |||
Number of Stores | 26 |
Goodwill, Trade Names and Oth61
Goodwill, Trade Names and Other Intangible Assets, Net (Schedule of Goodwill) (Details) $ in Millions | Jan. 28, 2017USD ($) |
Goodwill, beginning balance | $ 1,318 |
Goodwill, ending balance | 1,348 |
Victoria's Secret Segment [Member] | |
Goodwill, beginning balance | 690 |
Goodwill, ending balance | 690 |
Bath & Body Works Segment [Member] | |
Goodwill, beginning balance | 628 |
Goodwill, ending balance | 628 |
Victoria's Secret and Bath & Body Works International [Member] | |
Goodwill, beginning balance | 0 |
Goodwill, ending balance | $ 30 |
Goodwill, Trade Names and Oth62
Goodwill, Trade Names and Other Intangible Assets, Net Goodwill, Trade Names and Other Intangible Assets, Net (Intangible Assets - Indefinite Lives) (Details) - USD ($) $ in Millions | Jan. 28, 2017 | Jan. 30, 2016 |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-Lived Trade Names | $ 411 | $ 411 |
Victoria's Secret [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-Lived Trade Names | 246 | 246 |
Bath & Body Works [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-Lived Trade Names | $ 165 | $ 165 |
Equity Investments and Other (D
Equity Investments and Other (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jul. 30, 2016USD ($) | May 02, 2015USD ($) | Jan. 28, 2017USD ($)a | Jan. 30, 2016USD ($) | Jan. 31, 2015USD ($) | |
Return of Capital | $ 108 | $ 0 | $ 0 | ||
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | 78 | 0 | ||
Proceeds from Equity Method Investments, Return of Capital and Other | $ 124 | ||||
Gain (Loss) on Equity Method Investment Dividends Or Distributions | (108) | 108 | 0 | $ 0 | |
Gain (Loss) on Equity Method Investment Dividends or Distributions, Net of Tax | $ 70 | ||||
Third Party Sourcing Business [Member] | |||||
Equity Method Investment, Net Sales Proceeds | $ 85 | ||||
Equity Method Investment, Realized Gain (Loss) on Disposal | 78 | ||||
Equity Method Investment, Realized Gain (Loss) on Disposal Net of Tax | $ 69 | ||||
Easton Investment [Member] | |||||
Equity method investment carrying value | $ 79 | $ 86 | |||
Acres Of Land | a | 1,300 |
Accrued Expenses and Other (Det
Accrued Expenses and Other (Details) - USD ($) $ in Millions | Jan. 28, 2017 | Jan. 30, 2016 |
Accrued Liabilities, Current [Abstract] | ||
Deferred Revenue, Principally from Gift Card Sales | $ 259 | $ 243 |
Compensation, Payroll Taxes and Benefits | 191 | 238 |
Interest | 99 | 100 |
Taxes, Other than Income | 82 | 76 |
Accrued Rent, Current | 48 | 48 |
Accrued Claims on Self-insured Activities | 35 | 35 |
Returns Reserve | 21 | 27 |
Other | 262 | 210 |
Total Accrued Expenses and Other | $ 997 | $ 977 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Pre-tax income (loss),Non-US, arising principally from overseas operations | $ 134 | $ 267 | $ 152 | |
Deferred Non-US Income Tax Expense (Benefit) | (3) | 12 | (1) | |
Excess Tax Benefits from Share-based Compensation | 42 | 70 | 43 | |
Undistributed Earnings of Foreign Subsidiaries | 571 | |||
Income tax payments | 469 | 507 | 526 | |
Unrecognized Tax Benefits | 90 | 248 | 193 | $ 167 |
Unrecognized tax benefits resulting in reduction of effective income tax rate | 62 | 217 | 170 | |
Unrecognized tax benefits reasonably possible change in the next twelve months | 17 | |||
Interest and penalties related to unrecognized tax benefits of income tax expense | (3) | 7 | $ 1 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 20 | $ 38 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Current | |||
U.S. Federal | $ 345 | $ 553 | $ 454 |
U.S. State | 62 | 96 | 69 |
Non-U.S. | 21 | 21 | 21 |
Total | 428 | 670 | 544 |
Deferred | |||
U.S. Federal | 99 | 17 | 46 |
U.S. State | 8 | 6 | 3 |
Non-U.S. | 3 | (12) | 1 |
Total | 110 | 11 | 50 |
Provision for Income Taxes | $ 538 | $ 681 | $ 594 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the Statutory Federal Income Tax Rate and the Effective Tax Rate) (Details) | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Federal Income Tax Rate | 35.00% | 35.00% | 35.00% |
State Income Taxes, Net of Federal Income Tax Effect | 3.40% | 3.40% | 3.60% |
Effective Income Tax Rate Reconciliation Foreign Portion Of Divestiture Of Business | 0.00% | (0.90%) | 0.00% |
Effective Income Tax Rate Reconciliation, Tax Settlement, Percent | (4.00%) | 0.00% | (0.30%) |
Impact of Non-U.S. Operations | (1.20%) | (1.70%) | (1.30%) |
Other Items, Net | (1.50%) | (0.60%) | (0.70%) |
Effective Tax Rate | 31.70% | 35.20% | 36.30% |
Income Taxes (Effect of Tempora
Income Taxes (Effect of Temporary Differences that Cause Deferred Income Taxes) (Details) - USD ($) $ in Millions | Jan. 28, 2017 | Jan. 30, 2016 |
Undistributed Earnings of Foreign Subsidiaries | $ 571 | |
Assets | 236 | $ 259 |
Deferred Tax Liabilities, Gross, Noncurrent | 569 | 486 |
Liabilities | (333) | (227) |
Leases [Member] | ||
Assets | 68 | 54 |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Liabilities | (68) | (54) |
Non-qualified Retirement Plan [Member] | ||
Assets | 96 | 103 |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Liabilities | (96) | (103) |
Property and Equipment [Member] | ||
Assets | 0 | 0 |
Deferred Tax Liabilities, Gross, Noncurrent | 413 | 330 |
Liabilities | (413) | (330) |
Goodwill [Member] | ||
Assets | 0 | 0 |
Deferred Tax Liabilities, Gross, Noncurrent | 15 | 15 |
Liabilities | (15) | (15) |
Trade Names and Other Intangibles [Member] | ||
Assets | 0 | 0 |
Deferred Tax Liabilities, Gross, Noncurrent | 141 | 141 |
Liabilities | (141) | (141) |
State Net Operating Loss Carryforwards [Member] | ||
Assets | 15 | 17 |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Liabilities | (15) | (17) |
Non-U.S. Operating Loss Carryforwards [Member] | ||
Assets | 155 | 157 |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Liabilities | (155) | (157) |
Valuation Allowance [Member] | ||
Assets | (174) | (164) |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Liabilities | (174) | (164) |
Other, Net [Member] | ||
Assets | 76 | 92 |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Liabilities | $ (76) | $ (92) |
Income Taxes (Activity Related
Income Taxes (Activity Related to its Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year | $ 248 | $ 193 | $ 167 |
Increases in Tax Benefits for Prior Years | 3 | 8 | 16 |
Decreases in Tax Benefits for Prior Years | (73) | (3) | (14) |
Increases in Unrecognized Tax Benefits as a Result of Current Year Activity | 18 | 54 | 36 |
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities | (98) | 0 | (5) |
Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations | (8) | (4) | (7) |
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year | $ 90 | $ 248 | $ 193 |
Long-term Debt (Narrative) (Det
Long-term Debt (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jul. 30, 2016 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Interest Paid | $ 387 | $ 317 | $ 328 | |
Proceeds from Debt, Net of Issuance Costs | 692 | 988 | 0 | |
Repayments of Long-term Debt | 742 | 0 | 213 | |
Gains (Losses) on Extinguishment of Debt | (36) | $ 0 | $ 0 | |
Fixed Rate 6.90% Notes Due July 2017 [Member] | ||||
Extinguishment of Debt, Amount | 700 | |||
Repayments of Long-term Debt | 742 | |||
Gains (Losses) on Extinguishment of Debt | $ (36) | |||
Extinguishment of Debt, Gain (Loss), Net of Tax | (22) | |||
Gain (Loss) recognized on discontinuation of Fair Value Hedges | $ 7 | |||
Fixed Rate 6.75% Notes Due July 2036 [Member] | ||||
Debt instrument, face amount | $ 700 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | |||
Proceeds from Debt, Net of Issuance Costs | $ 692 | |||
Debt Issuance Cost | $ 8 |
Long-term Debt (Schedule of Lon
Long-term Debt (Schedule of Long-term Debt Instruments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | ||
Senior unsecured debt with subsidiary guarantee | $ 5,055 | $ 4,360 | |
Other Borrowings | 36 | 7 | |
Unsecured Debt | 681 | 1,361 | |
Debt, Long-term and Short-term, Combined Amount | 5,736 | 5,721 | |
Debt, Current | 36 | 6 | |
Total long-term debt, net of current portion | 5,700 | 5,715 | |
Fixed Rate 6.875% Notes Due November 2035 [Member] | |||
Senior unsecured debt with subsidiary guarantee | 989 | 988 | |
Principal balance outstanding | $ 1,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.875% | ||
Proceeds from Issuance of Long-term Debt | $ 988 | ||
Debt Issuance Cost | 12 | ||
Fixed Rate 5.625% Notes Due February 2022 [Member] | |||
Senior unsecured debt with subsidiary guarantee | 992 | 991 | |
Fixed Rate 6.625% Notes Due April 2021 [Member] | |||
Senior unsecured debt with subsidiary guarantee | 992 | 990 | |
Fixed Rate 6.75% Notes Due July 2036 [Member] | |||
Senior unsecured debt with subsidiary guarantee | 692 | 0 | |
Principal balance outstanding | $ 700 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | ||
Debt Issuance Cost | $ 8 | ||
Fixed Rate 5.625% Notes Due October 2023 [Member] | |||
Senior unsecured debt with subsidiary guarantee | 497 | 496 | |
Fixed Rate 8.50% Notes Due June 2019 [Member] | |||
Senior unsecured debt with subsidiary guarantee | [1] | 496 | 499 |
Interest Rate Fair Value Hedge Derivative at Fair Value, Net | 2 | 8 | |
Fixed Rate 7.00% Notes Due May 2020 [Member] | |||
Senior unsecured debt with subsidiary guarantee | 397 | 396 | |
Fixed Rate 6.90% Notes Due July 2017 [Member] | |||
Senior unsecured debt | 0 | 709 | |
Interest Rate Fair Value Hedge Derivative at Fair Value, Net | 10 | ||
Fixed Rate 6.95% Debentures Due March 2033 [Member] | |||
Senior unsecured debt | 348 | 348 | |
Fixed Rate 7.60% Notes Due July 2037 [Member] | |||
Senior unsecured debt | 297 | 297 | |
L Brands, Inc. [Member] | |||
Debt, Current | 0 | 0 | |
Total long-term debt, net of current portion | $ 5,700 | $ 5,714 | |
[1] | (a)The balances include a fair value interest rate hedge adjustment which increased the debt balance by $2 million as of January 28, 2017 and $8 million as of January 30, 2016. |
Long-term Debt (Schedule of Pri
Long-term Debt (Schedule of Principal Payments on Long-term Debt) (Details) $ in Millions | Jan. 28, 2017USD ($) |
2,017 | $ 36 |
2,018 | 0 |
2,019 | 500 |
2,020 | 400 |
2,021 | 1,000 |
Thereafter | $ 3,850 |
Long-term Debt Long-term debt (
Long-term Debt Long-term debt (Revolving Facility and Letters of Credit (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Jan. 28, 2017USD ($) | Jan. 30, 2016USD ($) | Jan. 31, 2015USD ($) | |
Line of Credit Facility [Line Items] | |||
Repayments of Lines of Credit | $ 6 | $ 0 | $ 5 |
Foreign Facilities [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 100 | ||
Borrowings from Revolving Facilities | 35 | ||
Line of Credit Facility, Maximum Amount Outstanding During Period | 36 | ||
Revolving Credit Facility [Member] | Revolving Credit Expiring July 2019 [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000 | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||
Line of Credit Financial Covenant, Fixed Charge Coverage Ratio | 1.75 | ||
Line of Credit Financial Covenant, Ratio of Consolidated Debt to Consolidated EBITDA | 4 | ||
Debt to EBITDA ratio required for unlimited investments and restricted payments | 3 | ||
Line of Credit Financial Covenant Ratio of Consolidated Debt to Consolidated EBITDA Maximum Current Rate | 3 | ||
Line of Credit Facility, Amount Outstanding | $ 0 | ||
Letter of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Amount Outstanding | $ 8 | ||
Letter of Credit [Member] | Revolving Credit Facility [Member] | Revolving Credit Expiring July 2019 [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Commitment Fee Percentage | 1.50% |
Derivative Financial Instrument
Derivative Financial Instruments Derivative Instruments (Foreign Exchange Contracts - Cash Flow Hedging Disclosure) (Details) CAD in Millions, $ in Millions | 12 Months Ended | ||
Jan. 28, 2017USD ($) | Jan. 30, 2016USD ($) | Jan. 28, 2017CAD | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | $ (8) | $ 6 | |
Cost of Goods Sold, Buying and Occupancy [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | (1) | 0 | |
Other Income [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 8 | 14 | |
Foreign Exchange Contract [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Notional Amount | $ 360 | $ 147 | |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Maximum Remaining Maturity of Foreign Currency Derivatives | 18 months | ||
Gain (Loss) on Foreign Currency Cash Flow Hedge Ineffectiveness | $ 0 | ||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | 2 | ||
Cash Flow Hedging [Member] | Currency Swap [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Notional Amount | CAD | CAD 170 | ||
Gain (Loss) on Foreign Currency Cash Flow Hedge Ineffectiveness | $ 0 |
Derivative Financial Instrume75
Derivative Financial Instruments Fair Value Derivatives, Balance Sheet Location, by Derivative Contract Type (Details) - USD ($) $ in Millions | Jan. 28, 2017 | Jan. 30, 2016 |
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ 1 | $ 0 |
Interest Rate Fair Value Hedge Asset at Fair Value | 2 | 11 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 18 | 27 |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 18 | 0 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Fair Value Hedge Asset at Fair Value | 2 | 11 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 0 | $ 27 |
Derivative Financial Instrume76
Derivative Financial Instruments Derivative Instruments (Interest Rate Contracts - Fair Value Hedging Disclosure) (Details) $ in Millions | Jan. 28, 2017USD ($) |
Fair Value Hedging [Member] | Interest Rate Swap [Member] | Fixed Rate 8.50% Notes Due June 2019 [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 300 |
Derivative Financial Instrume77
Derivative Financial Instruments Foreign Currency Derivatives Notional Amount Outstanding (Details) - USD ($) $ in Millions | Jan. 28, 2017 | Jan. 30, 2016 |
Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 360 | $ 147 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Value and Fair Value of Long Term Debt) (Detail) - USD ($) $ in Millions | Jan. 28, 2017 | Jan. 30, 2016 | |
Fair Value Measurements [Abstract] | |||
Long-term Debt Principal Value | $ 5,750 | $ 5,750 | |
Fair Value | [1] | $ 6,030 | $ 6,209 |
[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 Measurement. 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 | 12 Months Ended | |
Jan. 28, 2017 | Jan. 30, 2016 | |
Proceeds from Sale of Available-for-sale Securities, Equity | $ 10 | |
Assets: | ||
Cash and Cash Equivalents | 1,934 | $ 2,548 |
Investments, Fair Value Disclosure | 5 | 22 |
Interest Rate Fair Value Hedge Asset at Fair Value | 2 | 11 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 18 | 27 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 1 | 0 |
Fair Value, Inputs, Level 1 | ||
Assets: | ||
Cash and Cash Equivalents | 1,934 | 2,548 |
Investments, Fair Value Disclosure | 5 | 22 |
Interest Rate Fair Value Hedge Asset at Fair Value | 0 | 0 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0 | 0 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 0 | |
Fair Value, Inputs, Level 2 | ||
Assets: | ||
Cash and Cash Equivalents | 0 | 0 |
Investments, Fair Value Disclosure | 0 | 0 |
Interest Rate Fair Value Hedge Asset at Fair Value | 2 | 11 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 18 | 27 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 1 | |
Fair Value, Inputs, Level 3 | ||
Assets: | ||
Cash and Cash Equivalents | 0 | 0 |
Investments, Fair Value Disclosure | 0 | 0 |
Interest Rate Fair Value Hedge Asset at Fair Value | 0 | 0 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0 | $ 0 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ 0 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Securities Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable Securities, Equity Securities, Current | $ 10 | ||
Proceeds from Sale of Available-for-sale Securities, Equity | $ 10 | ||
Available-for-sale Securities, Gross Realized Gains | 4 | 0 | $ 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 3 | 0 | $ 0 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Gross Realized Gains | 4 | 0 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | $ 3 | $ 0 |
Comprehensive Income (Loss) (De
Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | $ (35) | $ (5) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 3 | 14 | |
Other Comprehensive Income (Loss), Tax | 4 | (4) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Accumulated Other Comprehensive Income Beginning Balance | 40 | 35 | |
Total Other Comprehensive Income (Loss), Net of Tax | (28) | 5 | $ (5) |
Accumulated Other Comprehensive Income Ending Balance | 12 | 40 | 35 |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (19) | (23) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | |
Other Comprehensive Income (Loss), Tax | 0 | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Accumulated Other Comprehensive Income Beginning Balance | 28 | 51 | |
Total Other Comprehensive Income (Loss), Net of Tax | (19) | (23) | |
Accumulated Other Comprehensive Income Ending Balance | 9 | 28 | 51 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (8) | 6 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 7 | 14 | |
Other Comprehensive Income (Loss), Tax | 0 | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Accumulated Other Comprehensive Income Beginning Balance | 4 | (16) | |
Total Other Comprehensive Income (Loss), Net of Tax | (1) | 20 | |
Accumulated Other Comprehensive Income Ending Balance | 3 | 4 | (16) |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (8) | 12 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (4) | 0 | |
Other Comprehensive Income (Loss), Tax | 4 | (4) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Accumulated Other Comprehensive Income Beginning Balance | 8 | 0 | |
Total Other Comprehensive Income (Loss), Net of Tax | (8) | 8 | |
Accumulated Other Comprehensive Income Ending Balance | $ 0 | $ 8 | $ 0 |
Comprehensive Income Reclassifi
Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net Income | $ (7) | $ (14) | $ 60 |
Available-for-sale Securities, Gross Realized Gains | (4) | 0 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (3) | 0 | $ 0 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Provision for Income Taxes | 0 | 0 | |
Net Income | 7 | 14 | |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Available-for-sale Securities, Gross Realized Gains | (4) | 0 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | 1 | 0 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (3) | 0 | |
Other Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | (8) | (14) | |
Cost of Goods Sold, Buying and Occupancy [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 1 | $ 0 |
Leases (Leases Rent Expenses) (
Leases (Leases Rent Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Leases [Abstract] | |||
Fixed minimum, store rent | $ 607 | $ 535 | $ 516 |
Contingent, store rent | 71 | 73 | 63 |
Total store rent | 678 | 608 | 579 |
Office, equipment and other | 87 | 77 | 68 |
Gross rent expense | 765 | 685 | 647 |
Sublease rental income | (2) | (2) | (2) |
Total rent expense | $ 763 | $ 683 | $ 645 |
Leases (Minimum Rent Commitment
Leases (Minimum Rent Commitments Operating Leases) (Details) $ in Millions | Jan. 28, 2017USD ($) | [1] |
Leases [Abstract] | ||
2,017 | $ 707 | |
2,018 | 651 | |
2,019 | 605 | |
2,020 | 571 | |
2,021 | 531 | |
Thereafter | $ 2,112 | |
[1] | Excludes additional payments covering taxes, common area costs and certain other expenses generally required by store lease terms. |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Jan. 28, 2017 | Jan. 30, 2016 |
Sale Leaseback Transaction, Other Information | $ 133 | |
Lease guarantees, estimated fair value | 1 | $ 3 |
Property Lease Guarantee [Member] | ||
Lease guarantees remaining after disposition of certain businesses | $ 14 |
Retirement Benefits (Details)
Retirement Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Expense Related to the Qualified Plan | $ 67 | $ 64 | $ 59 |
Non-Qualified Plan Table Text Block [Line Items] | |||
Non-Qualified Plan, Benefit Obligation | 258 | 274 | 257 |
Non-Qualified Plan, Contributions by Plan Participants | 14 | 15 | |
Non-Qualified Plan, Contributions by Employer | 14 | 17 | |
Non-Qualified Plan, Interest Cost | 12 | 13 | |
Non-Qualified Plan, Benefits Paid | (56) | (28) | |
Non-Qualified Plan [Member] | |||
Non-Qualified Plan Table Text Block [Line Items] | |||
Expense related to the Non-Qualified Plan | $ 26 | $ 30 | $ 24 |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) (Narrative) (Details) - USD ($) $ in Millions | Apr. 30, 2016 | Aug. 01, 2015 | May 02, 2015 |
June 2015 Repurchase Program [Member] | |||
Stock Repurchase Program, Authorized Amount | $ 250 | ||
February 2016 Repurchase Program [Member] | |||
Stock Repurchase Program, Authorized Amount | $ 500 | ||
February 2015 Repurchase Program [Member] [Member] | |||
Stock Repurchase Program, Authorized Amount | $ 250 |
Shareholders' Equity (Deficit88
Shareholders' Equity (Deficit) (Schedule of Company's repurchase program) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 2 Months Ended | 12 Months Ended | |||||||
Mar. 16, 2017 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 02, 2017 | Apr. 30, 2016 | Aug. 01, 2015 | May 02, 2015 | Feb. 02, 2013 | |
Treasury Stock, Shares, Acquired | 5,719 | 5,468 | 1,317 | ||||||
Repurchase of Common Stock | $ 438 | $ 483 | $ 84 | ||||||
June 2015 Repurchase Program [Member] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 250 | ||||||||
Treasury Stock, Shares, Acquired | 2,680 | ||||||||
Repurchase of Common Stock | $ 233 | ||||||||
Average Stock Price of Shares Repurchased within Program | $ 87.06 | ||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 17 | ||||||||
Share repurchase reflected in Accounts payable | $ 0 | ||||||||
February 2016 Repurchase Program [Member] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 500 | ||||||||
Treasury Stock, Shares, Acquired | 5,719 | ||||||||
Repurchase of Common Stock | $ 438 | ||||||||
Average Stock Price of Shares Repurchased within Program | $ 76.63 | ||||||||
Share repurchase reflected in Accounts payable | $ 3 | ||||||||
November 2012 Repurchase Program [Member] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 250 | ||||||||
Treasury Stock, Shares, Acquired | 1,317 | ||||||||
Repurchase of Common Stock | $ 84 | ||||||||
Average Stock Price of Shares Repurchased within Program | $ 54.02 | ||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 91 | ||||||||
February 2015 Repurchase Program [Member] [Member] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 250 | ||||||||
Treasury Stock, Shares, Acquired | 2,788 | ||||||||
Repurchase of Common Stock | $ 250 | ||||||||
Average Stock Price of Shares Repurchased within Program | $ 89.45 | ||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 0.6 | ||||||||
Subsequent Event [Member] | |||||||||
Treasury Stock, Shares, Acquired | 900 | ||||||||
Repurchase of Common Stock | $ 49 | ||||||||
Subsequent Event [Member] | February 2017 Repurchase Program [Member] [Member] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 250 | ||||||||
Subsequent Event [Member] | February 2016 Repurchase Program [Member] | |||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 59 |
Shareholders' Equity (Deficit89
Shareholders' Equity (Deficit) (Dividends Paid) (Details) - USD ($) $ / shares in Units, $ in Millions | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Mar. 16, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May 03, 2014 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.34 | $ 0.34 | $ 0.34 | $ 0.34 | $ 2.40 | $ 2 | $ 1.36 | |
Special Dividend To Common Stockholders Per Share Paid | 0 | 0 | 0 | 2 | 0 | 0 | 0 | 2 | 0 | 0 | 0 | 1 | 2 | 2 | 1 | |
Total Dividends Per Share Cash Paid | $ 0.60 | $ 0.60 | $ 0.60 | $ 2.60 | $ 0.50 | $ 0.50 | $ 0.50 | $ 2.50 | $ 0.34 | $ 0.34 | $ 0.34 | $ 1.34 | $ 4.40 | $ 4 | $ 2.36 | |
Payments of Dividends | $ 172 | $ 173 | $ 173 | $ 750 | $ 145 | $ 146 | $ 146 | $ 734 | $ 100 | $ 100 | $ 99 | $ 392 | $ 1,268 | $ 1,171 | $ 691 | |
Common Stock, Dividends, Per Share, Declared | $ 4.40 | $ 4 | $ 2.36 | |||||||||||||
Scenario, Forecast [Member] | Dividend Declared [Member] | ||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.60 |
Share-based Compensation (Narra
Share-based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Options, restricted and unrestricted shares authorized | 160 | ||
Options and shares available for grant | 16 | ||
Cash received from stock options exercised | $ 20 | $ 33 | $ 35 |
Tax Benefit associated with share based compensation | 32 | 33 | 30 |
Stock Options [Member] | |||
Total intrinsic value of options exercised | 30 | 63 | 52 |
Total fair value at grant date of option awards vested | 10 | $ 11 | $ 11 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 17 | ||
Weighted average fair value of stock options granted | $ 11.72 | $ 15.27 | $ 11.74 |
Cash received from stock options exercised | $ 20 | $ 33 | $ 35 |
Total unrecognized compensation cost, weighted-average period of recognition, years | 2 years 340 days | ||
Tax benefits realized from tax deductions | $ 9 | 20 | 21 |
Restricted Stock [Member] | |||
Total intrinsic value of restricted stock vested | 140 | 217 | 128 |
Total fair value at grant date of awards vested | 68 | 80 | 56 |
Total unrecognized compensation cost, net of estimated forfeitures | $ 141 | ||
Total unrecognized compensation cost, weighted-average period of recognition, years | 2 years 8 months 15 days | ||
Tax benefits realized from tax deductions | $ 61 | $ 82 | $ 46 |
Share-based Compensation (Stock
Share-based Compensation (Stock Option Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jan. 28, 2017USD ($)$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding as of Beginning of Period, Number of Shares | 5,491 | |
Granted, Number of Shares | 851 | |
Exercised, Number of Shares | (639) | |
Cancelled, Number of Shares | (399) | |
Outstanding as of End of Period, Number of Shares | 5,439 | |
Vested and Expected to Vest as of End of Period, Number of Shares | 5,329 | [1] |
Options Exercisable as of End of Period, Number of Shares | 3,292 | |
Outstanding as of Beginning of Period, Weighted Average Option Price Per Share | $ / shares | $ 42.40 | |
Granted, Weighted Average Option Price Per Share | $ / shares | 84.92 | |
Exercised, Weighted Average Option Price Per Share | $ / shares | 32.58 | |
Cancelled, Weighted Average Option Price Per Share | $ / shares | 69.44 | |
Outstanding as of End of Period, Weighted Average Option Price Per Share | $ / shares | 47.17 | |
Vested and Expected to Vest as of End of Period, Weighted Average Option Price Per Share | $ / shares | 46.41 | [1] |
Options Exercisable as of End of Period, Weighted Average Options Price Per Share | $ / shares | $ 29.90 | |
Outstanding as of End of Period, Weighted Average Remaining Contractual Life | 5 years 240 days | |
Vested and Expected to Vest as of End of Period, Weighted Average Remaining Contractual Life | 5 years 7 months 5 days | [1] |
Options Exercisable as of End of Period, Weighted Average Remaining Contractual Life | 4 years 34 days | |
Outstanding as of End of Support, Aggregate Intrinsic Value | $ | $ 108,075 | |
Vested and Expected to Vest as of End of Period, Aggregate Intrinsic Value | $ | 107,961 | [1] |
Options Exercisable as of End of Period, Aggregate Intrinsic Value | $ | $ 100,470 | |
Dividends, Share-based Compensation, Cash | 135 | |
[1] | The number of options expected to vest includes an estimate of expected forfeitures. |
Share-based Compensation (Weigh
Share-based Compensation (Weighted-Average Assumptions) (Details) | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Share-based Compensation [Abstract] | |||
Expected Volatility | 25.00% | 26.00% | 30.00% |
Risk-free Interest Rate | 1.10% | 1.10% | 1.40% |
Dividend Yield | 3.30% | 2.70% | 3.00% |
Expected Life (in years) | 4 years 1 month 16 days | 4 years 5 months 24 days | 4 years 6 months 26 days |
Share-based Compensation (Restr
Share-based Compensation (Restricted Stock Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Unvested as of Beginning of Period, Number of Shares | 5,791 | ||
Granted, Number of Shares | 1,758 | ||
Vested, Number of Shares | (1,754) | ||
Cancelled, Number of Shares | (646) | ||
Unvested as of End of Period, Number of Shares | 5,292 | 5,791 | |
Unvested as of Beginning of Period, Weighted Average Grant Date Fair Value | $ 54.41 | ||
Granted, Weighted Average Grant Date Fair Value | 75.09 | $ 85.61 | $ 54.03 |
Vested, Weighted Average Grant Date Fair Value | 38.93 | ||
Cancelled, Weighted Average Grant Date Fair Value | 63.11 | ||
Unvested as of End of Period, Weighted Average Grant Date Fair Value | $ 64.14 | $ 54.41 | |
Share-based Compensation Arrangement RS Special Dividend Share Adj: Stock Plan Anti-dilution Provision | 143 |
Share-based Compensation (Share
Share-based Compensation (Share-Based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Share-based Compensation Expense | $ 96 | $ 97 | $ 90 |
Costs of Goods Sold, Buying and Occupancy [Member] | |||
Share-based Compensation Expense | 31 | 27 | 24 |
General, Administrative and Store Operating Expenses [Member] | |||
Share-based Compensation Expense | $ 65 | $ 70 | $ 66 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 28, 2017USD ($) | Oct. 29, 2016USD ($) | Jul. 30, 2016USD ($) | Apr. 30, 2016USD ($) | Jan. 30, 2016USD ($) | Oct. 31, 2015USD ($) | Aug. 01, 2015USD ($) | May 02, 2015USD ($) | Jan. 28, 2017USD ($)Reportable_Segments | Jan. 30, 2016USD ($) | Jan. 31, 2015USD ($) | |||
Number Of Reportable Segments (in reportable segments) | Reportable_Segments | 3 | ||||||||||||
Net Sales | $ 4,489 | $ 2,581 | $ 2,890 | $ 2,614 | $ 4,395 | $ 2,482 | $ 2,765 | $ 2,512 | $ 12,574 | $ 12,154 | $ 11,454 | ||
Depreciation and Amortization | 472 | 415 | 398 | ||||||||||
Operating Income (Loss) | 988 | $ 284 | $ 408 | $ 323 | 1,078 | $ 339 | $ 403 | $ 372 | 2,003 | 2,192 | [1] | 1,953 | [1] |
Total Assets | 8,170 | 8,493 | 8,170 | 8,493 | 7,476 | ||||||||
Capital Expenditures | 990 | 727 | 715 | ||||||||||
Victoria's Secret Segment [Member] | |||||||||||||
Net Sales | 7,781 | 7,672 | 7,207 | ||||||||||
Depreciation and Amortization | 252 | 218 | 198 | ||||||||||
Operating Income (Loss) | 1,173 | 1,391 | 1,271 | ||||||||||
Total Assets | 3,285 | 3,163 | 3,285 | 3,163 | 2,950 | ||||||||
Capital Expenditures | 460 | 411 | 446 | ||||||||||
Bath & Body Works Segment [Member] | |||||||||||||
Net Sales | 3,852 | 3,587 | 3,350 | ||||||||||
Depreciation and Amortization | 91 | 70 | 65 | ||||||||||
Operating Income (Loss) | 907 | 858 | 737 | ||||||||||
Total Assets | 1,632 | 1,556 | 1,632 | 1,556 | 1,365 | ||||||||
Capital Expenditures | 250 | 166 | 77 | ||||||||||
Victoria's Secret and Bath & Body Works International [Member] | |||||||||||||
Net Sales | 423 | 385 | 336 | ||||||||||
Depreciation and Amortization | 17 | 16 | 16 | ||||||||||
Operating Income (Loss) | 40 | 88 | 78 | ||||||||||
Total Assets | 593 | 436 | 593 | 436 | 369 | ||||||||
Capital Expenditures | 68 | 33 | 37 | ||||||||||
Other Operating Segment | |||||||||||||
Net Sales | 518 | 510 | 561 | ||||||||||
Depreciation and Amortization | 112 | 111 | 119 | ||||||||||
Operating Income (Loss) | (117) | (145) | [1] | (133) | [1] | ||||||||
Total Assets | $ 2,660 | $ 3,338 | 2,660 | 3,338 | 2,792 | ||||||||
Capital Expenditures | $ 212 | $ 117 | $ 155 | ||||||||||
[1] | Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. |
Segment Information (Additional
Segment Information (Additional Information) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 28, 2017USD ($)specialtystores | Oct. 29, 2016USD ($) | Jul. 30, 2016USD ($) | Apr. 30, 2016USD ($) | Jan. 30, 2016USD ($) | Oct. 31, 2015USD ($) | Aug. 01, 2015USD ($) | May 02, 2015USD ($) | Jan. 28, 2017USD ($)Reportable_Segmentsspecialtystores | Jan. 30, 2016USD ($) | Jan. 31, 2015USD ($) | |
Revenue, Net | $ 4,489 | $ 2,581 | $ 2,890 | $ 2,614 | $ 4,395 | $ 2,482 | $ 2,765 | $ 2,512 | $ 12,574 | $ 12,154 | $ 11,454 |
Number Of Reportable Segments (in reportable segments) | Reportable_Segments | 3 | ||||||||||
Henri Bendel [Member] | |||||||||||
Henri Bendel Specialty Stores Owned | specialtystores | 29 | 29 | |||||||||
International [Member] | |||||||||||
Revenue, Net | $ 1,408 | 1,314 | $ 1,349 | ||||||||
Internationally based Long-lived Assets | $ 357 | $ 319 | $ 357 | $ 319 |
Quarterly Financial Data (Una97
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May 02, 2015 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |||
Quarterly Financial Data [Abstract] | |||||||||||||
Net Sales | $ 4,489 | $ 2,581 | $ 2,890 | $ 2,614 | $ 4,395 | $ 2,482 | $ 2,765 | $ 2,512 | $ 12,574 | $ 12,154 | $ 11,454 | ||
Gross Profit | 1,944 | 1,025 | 1,113 | 1,043 | 2,002 | 1,031 | 1,114 | 1,056 | 5,125 | 5,204 | 4,808 | ||
Operating Income | 988 | 284 | 408 | 323 | 1,078 | 339 | 403 | 372 | 2,003 | 2,192 | [1] | 1,953 | [1] |
Income Before Income Taxes | 893 | 190 | 380 | 233 | 982 | 260 | 323 | 369 | 1,696 | 1,934 | 1,636 | ||
Net Income (Loss) Attributable to Parent | $ 632 | $ 122 | $ 252 | $ 152 | $ 636 | $ 164 | $ 202 | $ 250 | $ 1,158 | $ 1,253 | $ 1,042 | ||
Net Income Per Basic Share | $ 2.21 | $ 0.43 | $ 0.88 | $ 0.53 | $ 2.19 | $ 0.56 | $ 0.69 | $ 0.86 | $ 4.04 | $ 4.30 | $ 3.57 | ||
Net Income Per Diluted Share | $ 2.18 | $ 0.42 | $ 0.87 | $ 0.52 | $ 2.15 | $ 0.55 | $ 0.68 | $ 0.84 | $ 3.98 | $ 4.22 | $ 3.50 | ||
[1] | Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. |
Quarterly Financial Data (Una98
Quarterly Financial Data (Unaudited) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Jan. 28, 2017 | Jul. 30, 2016 | Apr. 30, 2016 | May 02, 2015 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Restructuring Charges | $ 35 | ||||||
Restructuring Charges, Net of Tax | $ 21 | ||||||
Gain (Loss) on Equity Method Investment Dividends Or Distributions | $ (108) | $ 108 | $ 0 | $ 0 | |||
Gain (Loss) on Equity Method Investment Dividends or Distributions, Net of Tax | 70 | ||||||
Gains (Losses) on Extinguishment of Debt | (36) | 0 | 0 | ||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 42 | ||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 0 | $ 78 | $ 0 | ||||
Third Party Sourcing Business [Member] | |||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 78 | ||||||
Equity Method Investment, Realized Gain (Loss) on Disposal Net of Tax | $ 69 | ||||||
Fixed Rate 6.90% Notes Due July 2017 [Member] | |||||||
Gains (Losses) on Extinguishment of Debt | (36) | ||||||
Extinguishment of Debt, Gain (Loss), Net of Tax | $ (22) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Mar. 16, 2017 | May 02, 2015 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 02, 2017 | Apr. 30, 2016 | Aug. 01, 2015 | Feb. 02, 2013 | |
Subsequent Event [Line Items] | |||||||||
Treasury Stock, Shares, Acquired | 5,719 | 5,468 | 1,317 | ||||||
Repurchase of Common Stock | $ 438 | $ 483 | $ 84 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 4.40 | $ 4 | $ 2.36 | ||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 0 | $ 78 | $ 0 | ||||||
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Treasury Stock, Shares, Acquired | 900 | ||||||||
Repurchase of Common Stock | $ 49 | ||||||||
February 2016 Repurchase Program [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 500 | ||||||||
Treasury Stock, Shares, Acquired | 5,719 | ||||||||
Repurchase of Common Stock | $ 438 | ||||||||
February 2016 Repurchase Program [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 59 | ||||||||
June 2015 Repurchase Program [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 250 | ||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 17 | ||||||||
Treasury Stock, Shares, Acquired | 2,680 | ||||||||
Repurchase of Common Stock | $ 233 | ||||||||
November 2012 Repurchase Program [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 250 | ||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 91 | ||||||||
Treasury Stock, Shares, Acquired | 1,317 | ||||||||
Repurchase of Common Stock | $ 84 | ||||||||
February 2015 Repurchase Program [Member] [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Stock Repurchase Program, Authorized Amount | 250 | ||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 0.6 | ||||||||
Treasury Stock, Shares, Acquired | 2,788 | ||||||||
Repurchase of Common Stock | $ 250 | ||||||||
Third Party Sourcing Business [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Equity Method Investment, Net Sales Proceeds | 85 | ||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 78 | ||||||||
Scenario, Forecast [Member] | Dividend Declared [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.60 |
Supplemental Guarantor Finan100
Supplemental Guarantor Financial Information (Narrative) (Details) | 12 Months Ended |
Jan. 28, 2017 | |
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 Finan101
Supplemental Guarantor Financial Information (Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Millions | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 |
Current Assets: | ||||
Cash and Cash Equivalents | $ 1,934 | $ 2,548 | $ 1,681 | $ 1,519 |
Accounts Receivable, Net | 294 | 261 | ||
Inventories | 1,096 | 1,122 | ||
Other | 141 | 225 | ||
Total Current Assets | 3,465 | 4,156 | ||
Property and Equipment, Net | 2,741 | 2,330 | ||
Goodwill | 1,348 | 1,318 | ||
Trade Names and Other Intangible Assets, Net | 411 | 411 | ||
Net Investments in and Advances to/from Consolidated Affiliates | 0 | 0 | ||
Deferred Tax Assets, Net, Noncurrent | 19 | 30 | ||
Other Assets | 186 | 248 | ||
Total Assets | 8,170 | 8,493 | 7,476 | |
Current Liabilities: | ||||
Accounts Payable | 683 | 668 | ||
Accrued Expenses and Other | 997 | 977 | ||
Debt, Current | 36 | 6 | ||
Income Taxes | 298 | 224 | ||
Total Current Liabilities | 2,014 | 1,875 | ||
Deferred Income Taxes | 352 | 257 | ||
Long-term Debt | 5,700 | 5,715 | ||
Other Long-term Liabilities | 831 | 904 | ||
Total Equity (Deficit) | (727) | (258) | 19 | (369) |
Total Liabilities and Equity (Deficit) | 8,170 | 8,493 | ||
Eliminations | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 0 | 0 | 0 | 0 |
Accounts Receivable, Net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other | 0 | 0 | ||
Total Current Assets | 0 | 0 | ||
Property and Equipment, Net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Trade Names and Other Intangible Assets, Net | 0 | 0 | ||
Net Investments in and Advances to/from Consolidated Affiliates | (22,097) | (20,259) | ||
Deferred Tax Assets, Net, Noncurrent | 0 | 0 | ||
Other Assets | (611) | (612) | ||
Total Assets | (22,708) | (20,871) | ||
Current Liabilities: | ||||
Accounts Payable | 0 | 0 | ||
Accrued Expenses and Other | 0 | 0 | ||
Debt, Current | 0 | 0 | ||
Income Taxes | 0 | 0 | ||
Total Current Liabilities | 0 | 0 | ||
Deferred Income Taxes | 0 | 0 | ||
Long-term Debt | (597) | (597) | ||
Other Long-term Liabilities | (14) | (14) | ||
Total Equity (Deficit) | (22,097) | (20,260) | ||
Total Liabilities and Equity (Deficit) | (22,708) | (20,871) | ||
L Brands, Inc. [Member] | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 0 | 0 | 0 | 0 |
Accounts Receivable, Net | 0 | 1 | ||
Inventories | 0 | 0 | ||
Other | 0 | 0 | ||
Total Current Assets | 0 | 1 | ||
Property and Equipment, Net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Trade Names and Other Intangible Assets, Net | 0 | 0 | ||
Net Investments in and Advances to/from Consolidated Affiliates | 4,923 | 5,368 | ||
Deferred Tax Assets, Net, Noncurrent | 0 | 0 | ||
Other Assets | 130 | 141 | ||
Total Assets | 5,053 | 5,510 | ||
Current Liabilities: | ||||
Accounts Payable | 3 | 0 | ||
Accrued Expenses and Other | 100 | 100 | ||
Debt, Current | 0 | 0 | ||
Income Taxes | (11) | (3) | ||
Total Current Liabilities | 92 | 97 | ||
Deferred Income Taxes | (3) | (3) | ||
Long-term Debt | 5,700 | 5,714 | ||
Other Long-term Liabilities | 3 | 0 | ||
Total Equity (Deficit) | (739) | (298) | ||
Total Liabilities and Equity (Deficit) | 5,053 | 5,510 | ||
Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 1,562 | 2,190 | 1,462 | 1,353 |
Accounts Receivable, Net | 228 | 202 | ||
Inventories | 976 | 978 | ||
Other | 53 | 115 | ||
Total Current Assets | 2,819 | 3,485 | ||
Property and Equipment, Net | 1,897 | 1,574 | ||
Goodwill | 1,318 | 1,318 | ||
Trade Names and Other Intangible Assets, Net | 411 | 411 | ||
Net Investments in and Advances to/from Consolidated Affiliates | 15,824 | 13,649 | ||
Deferred Tax Assets, Net, Noncurrent | 10 | 11 | ||
Other Assets | 28 | 40 | ||
Total Assets | 22,307 | 20,488 | ||
Current Liabilities: | ||||
Accounts Payable | 326 | 333 | ||
Accrued Expenses and Other | 526 | 519 | ||
Debt, Current | 0 | 0 | ||
Income Taxes | 221 | 237 | ||
Total Current Liabilities | 1,073 | 1,089 | ||
Deferred Income Taxes | (93) | (86) | ||
Long-term Debt | 597 | 597 | ||
Other Long-term Liabilities | 761 | 670 | ||
Total Equity (Deficit) | 19,969 | 18,218 | ||
Total Liabilities and Equity (Deficit) | 22,307 | 20,488 | ||
Non-Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 372 | 358 | $ 219 | $ 166 |
Accounts Receivable, Net | 66 | 58 | ||
Inventories | 120 | 144 | ||
Other | 88 | 110 | ||
Total Current Assets | 646 | 670 | ||
Property and Equipment, Net | 844 | 756 | ||
Goodwill | 30 | 0 | ||
Trade Names and Other Intangible Assets, Net | 0 | 0 | ||
Net Investments in and Advances to/from Consolidated Affiliates | 1,350 | 1,242 | ||
Deferred Tax Assets, Net, Noncurrent | 9 | 19 | ||
Other Assets | 639 | 679 | ||
Total Assets | 3,518 | 3,366 | ||
Current Liabilities: | ||||
Accounts Payable | 354 | 335 | ||
Accrued Expenses and Other | 371 | 358 | ||
Debt, Current | 36 | 6 | ||
Income Taxes | 88 | (10) | ||
Total Current Liabilities | 849 | 689 | ||
Deferred Income Taxes | 448 | 346 | ||
Long-term Debt | 0 | 1 | ||
Other Long-term Liabilities | 81 | 248 | ||
Total Equity (Deficit) | 2,140 | 2,082 | ||
Total Liabilities and Equity (Deficit) | $ 3,518 | $ 3,366 |
Supplemental Guarantor Finan102
Supplemental Guarantor Financial Information (Condensed Consolidating Statements of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May 02, 2015 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |||
Net Sales | $ 4,489 | $ 2,581 | $ 2,890 | $ 2,614 | $ 4,395 | $ 2,482 | $ 2,765 | $ 2,512 | $ 12,574 | $ 12,154 | $ 11,454 | ||
Costs of Goods Sold, Buying and Occupancy | (7,449) | (6,950) | (6,646) | ||||||||||
Gross Profit | 1,944 | 1,025 | 1,113 | 1,043 | 2,002 | 1,031 | 1,114 | 1,056 | 5,125 | 5,204 | 4,808 | ||
General, Administrative and Store Operating Expenses | (3,122) | (3,012) | (2,855) | ||||||||||
Operating Income (Loss) | 988 | 284 | 408 | 323 | 1,078 | 339 | 403 | 372 | 2,003 | 2,192 | [1] | 1,953 | [1] |
Interest Expense | (394) | (334) | (324) | ||||||||||
Other Income | 87 | 76 | 7 | ||||||||||
Income Before Income Taxes | 893 | 190 | 380 | 233 | 982 | 260 | 323 | 369 | 1,696 | 1,934 | 1,636 | ||
Provision (Benefit) for Income Taxes | 538 | 681 | 594 | ||||||||||
Equity In Earnings Of Consolidated Affiliates | 0 | 0 | 0 | ||||||||||
Net Income (Loss) Attributable to Parent | $ 632 | $ 122 | $ 252 | $ 152 | $ 636 | $ 164 | $ 202 | $ 250 | 1,158 | 1,253 | 1,042 | ||
Reclassification of Cash Flow Hedges to Earnings | 7 | 14 | (60) | ||||||||||
Foreign Currency Translation | (19) | (23) | 21 | ||||||||||
Unrealized Gain (Loss) on Cash Flow Hedges | (8) | 6 | 34 | ||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (5) | 8 | 0 | ||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (3) | 0 | 0 | ||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | (28) | 5 | (5) | ||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 1,130 | 1,258 | 1,037 | ||||||||||
Eliminations | |||||||||||||
Net Sales | (2,918) | (2,891) | (2,600) | ||||||||||
Costs of Goods Sold, Buying and Occupancy | 2,682 | 2,751 | 2,414 | ||||||||||
Gross Profit | (236) | (140) | (186) | ||||||||||
General, Administrative and Store Operating Expenses | 186 | 128 | 135 | ||||||||||
Operating Income (Loss) | (50) | (12) | (51) | ||||||||||
Interest Expense | 71 | 47 | 44 | ||||||||||
Other Income | 0 | 0 | 0 | ||||||||||
Income Before Income Taxes | 21 | 35 | (7) | ||||||||||
Provision (Benefit) for Income Taxes | 0 | 0 | 0 | ||||||||||
Equity In Earnings Of Consolidated Affiliates | (2,000) | (2,039) | (1,730) | ||||||||||
Net Income (Loss) Attributable to Parent | (1,979) | (2,004) | (1,737) | ||||||||||
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 | 0 | ||||||||||
Foreign Currency Translation | 0 | 0 | 0 | ||||||||||
Unrealized Gain (Loss) on Cash Flow Hedges | 0 | 0 | 0 | ||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 0 | 0 | |||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | ||||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | ||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (1,979) | (2,004) | (1,737) | ||||||||||
L Brands, Inc. [Member] | |||||||||||||
Net Sales | 0 | 0 | 0 | ||||||||||
Costs of Goods Sold, Buying and Occupancy | 0 | 0 | 0 | ||||||||||
Gross Profit | 0 | 0 | 0 | ||||||||||
General, Administrative and Store Operating Expenses | (8) | (12) | (6) | ||||||||||
Operating Income (Loss) | (8) | (12) | (6) | ||||||||||
Interest Expense | (394) | (334) | (324) | ||||||||||
Other Income | (35) | 0 | 1 | ||||||||||
Income Before Income Taxes | (437) | (346) | (329) | ||||||||||
Provision (Benefit) for Income Taxes | (10) | (2) | (3) | ||||||||||
Equity In Earnings Of Consolidated Affiliates | 1,585 | 1,597 | 1,368 | ||||||||||
Net Income (Loss) Attributable to Parent | 1,158 | 1,253 | 1,042 | ||||||||||
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 | 0 | ||||||||||
Foreign Currency Translation | 0 | 0 | 0 | ||||||||||
Unrealized Gain (Loss) on Cash Flow Hedges | 0 | 0 | 0 | ||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 0 | 0 | |||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | ||||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | ||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 1,158 | 1,253 | 1,042 | ||||||||||
Guarantor Subsidiaries | |||||||||||||
Net Sales | 11,959 | 11,475 | 10,711 | ||||||||||
Costs of Goods Sold, Buying and Occupancy | (7,277) | (6,843) | (6,449) | ||||||||||
Gross Profit | 4,682 | 4,632 | 4,262 | ||||||||||
General, Administrative and Store Operating Expenses | (2,843) | (2,688) | (2,538) | ||||||||||
Operating Income (Loss) | 1,839 | 1,944 | 1,724 | ||||||||||
Interest Expense | (60) | (38) | (35) | ||||||||||
Other Income | 3 | 5 | 0 | ||||||||||
Income Before Income Taxes | 1,782 | 1,911 | 1,689 | ||||||||||
Provision (Benefit) for Income Taxes | 432 | 478 | 385 | ||||||||||
Equity In Earnings Of Consolidated Affiliates | 39 | 94 | 46 | ||||||||||
Net Income (Loss) Attributable to Parent | 1,389 | 1,527 | 1,350 | ||||||||||
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 | 0 | ||||||||||
Foreign Currency Translation | 0 | 0 | 0 | ||||||||||
Unrealized Gain (Loss) on Cash Flow Hedges | 0 | 0 | 0 | ||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 0 | 0 | |||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | ||||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | ||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 1,389 | 1,527 | 1,350 | ||||||||||
Non-Guarantor Subsidiaries | |||||||||||||
Net Sales | 3,533 | 3,570 | 3,343 | ||||||||||
Costs of Goods Sold, Buying and Occupancy | (2,854) | (2,858) | (2,611) | ||||||||||
Gross Profit | 679 | 712 | 732 | ||||||||||
General, Administrative and Store Operating Expenses | (457) | (440) | (446) | ||||||||||
Operating Income (Loss) | 222 | 272 | 286 | ||||||||||
Interest Expense | (11) | (9) | (9) | ||||||||||
Other Income | 119 | 71 | 6 | ||||||||||
Income Before Income Taxes | 330 | 334 | 283 | ||||||||||
Provision (Benefit) for Income Taxes | 116 | 205 | 212 | ||||||||||
Equity In Earnings Of Consolidated Affiliates | 376 | 348 | 316 | ||||||||||
Net Income (Loss) Attributable to Parent | 590 | 477 | 387 | ||||||||||
Reclassification of Cash Flow Hedges to Earnings | 7 | 14 | (60) | ||||||||||
Foreign Currency Translation | (19) | (23) | 21 | ||||||||||
Unrealized Gain (Loss) on Cash Flow Hedges | (8) | 6 | 34 | ||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (5) | 8 | |||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (3) | ||||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | (28) | 5 | (5) | ||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 562 | $ 482 | $ 382 | ||||||||||
[1] | Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. |
Supplemental Guarantor Finan103
Supplemental Guarantor Financial Information (Condensed Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May 03, 2014 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Net Cash Provided by (Used for) Operating Activities | $ 1,890 | $ 1,869 | $ 1,786 | ||||||||||||
Investing Activities | |||||||||||||||
Capital Expenditures | (990) | (727) | (715) | ||||||||||||
Proceeds from Sale of Other Assets, Investing Activities | 53 | 196 | 0 | ||||||||||||
Return of Capital | 108 | 0 | 0 | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | (33) | 0 | 0 | ||||||||||||
Proceeds from Sale of Equity Method Investments | 0 | 85 | 0 | ||||||||||||
Payments to Acquire Marketable Securities | 0 | (60) | 0 | ||||||||||||
Proceeds from Sale and Maturity of Marketable Securities | 10 | 50 | 0 | ||||||||||||
Other Investing Activities | 19 | 13 | 16 | ||||||||||||
Net Cash Provided by (Used for) Investing Activities | (833) | (443) | (699) | ||||||||||||
Proceeds from Debt, Net of Issuance Costs | 692 | 988 | 0 | ||||||||||||
Financing Activities | |||||||||||||||
Borrowings from Debt Facilities | 35 | 7 | 5 | ||||||||||||
Repayments of Lines of Credit | (6) | 0 | (5) | ||||||||||||
Payments of Dividends | $ (172) | $ (173) | $ (173) | $ (750) | $ (145) | $ (146) | $ (146) | $ (734) | $ (100) | $ (100) | $ (99) | $ (392) | (1,268) | (1,171) | (691) |
Repurchases of Common Stock | (435) | (483) | (87) | ||||||||||||
Excess Tax Benefits from Share-based Compensation | 42 | 70 | 43 | ||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 0 | 0 | 0 | ||||||||||||
Proceeds from Stock Options Exercised | 20 | 33 | 35 | ||||||||||||
Proceeds from (Payments for) Other Financing Activities | (3) | (2) | (6) | ||||||||||||
Net Cash Provided by (Used for) Financing Activities | (1,665) | (558) | (919) | ||||||||||||
Effects of Exchange Rate Changes on Cash | (6) | (1) | (6) | ||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (614) | 867 | 162 | ||||||||||||
Cash and Cash Equivalents, Beginning of Year | 2,548 | 1,681 | 1,519 | 2,548 | 1,681 | 1,519 | |||||||||
Cash and Cash Equivalents, End of Year | 1,934 | 2,548 | 1,681 | 1,934 | 2,548 | 1,681 | |||||||||
Repayments of Long-term Debt | (742) | 0 | (213) | ||||||||||||
Eliminations | |||||||||||||||
Net Cash Provided by (Used for) Operating Activities | 0 | 0 | 0 | ||||||||||||
Investing Activities | |||||||||||||||
Capital Expenditures | 0 | 0 | 0 | ||||||||||||
Proceeds from Sale of Other Assets, Investing Activities | 0 | 0 | |||||||||||||
Return of Capital | 0 | ||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | ||||||||||||||
Proceeds from Sale of Equity Method Investments | 0 | ||||||||||||||
Payments to Acquire Marketable Securities | 0 | ||||||||||||||
Proceeds from Sale and Maturity of Marketable Securities | 0 | 0 | |||||||||||||
Other Investing Activities | 0 | 0 | 0 | ||||||||||||
Net Cash Provided by (Used for) Investing Activities | 0 | 0 | 0 | ||||||||||||
Proceeds from Debt, Net of Issuance Costs | 0 | 0 | |||||||||||||
Financing Activities | |||||||||||||||
Borrowings from Debt Facilities | 0 | 0 | 0 | ||||||||||||
Repayments of Lines of Credit | 0 | 0 | |||||||||||||
Payments of Dividends | 0 | 0 | 0 | ||||||||||||
Repurchases of Common Stock | 0 | 0 | 0 | ||||||||||||
Excess Tax Benefits from Share-based Compensation | 0 | 0 | 0 | ||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 0 | 0 | 0 | ||||||||||||
Proceeds from Stock Options Exercised | 0 | 0 | 0 | ||||||||||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | 0 | ||||||||||||
Net Cash Provided by (Used for) Financing Activities | 0 | 0 | 0 | ||||||||||||
Effects of Exchange Rate Changes on Cash | 0 | 0 | 0 | ||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 0 | 0 | 0 | ||||||||||||
Cash and Cash Equivalents, Beginning of Year | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Cash and Cash Equivalents, End of Year | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Repayments of Long-term Debt | 0 | 0 | |||||||||||||
L Brands, Inc. [Member] | |||||||||||||||
Net Cash Provided by (Used for) Operating Activities | (462) | (322) | (333) | ||||||||||||
Investing Activities | |||||||||||||||
Capital Expenditures | 0 | 0 | 0 | ||||||||||||
Proceeds from Sale of Other Assets, Investing Activities | 0 | 0 | |||||||||||||
Return of Capital | 0 | ||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | ||||||||||||||
Proceeds from Sale of Equity Method Investments | 0 | ||||||||||||||
Payments to Acquire Marketable Securities | 0 | ||||||||||||||
Proceeds from Sale and Maturity of Marketable Securities | 0 | 0 | |||||||||||||
Other Investing Activities | 0 | 0 | 0 | ||||||||||||
Net Cash Provided by (Used for) Investing Activities | 0 | 0 | 0 | ||||||||||||
Proceeds from Debt, Net of Issuance Costs | 692 | 988 | |||||||||||||
Financing Activities | |||||||||||||||
Borrowings from Debt Facilities | 0 | 0 | 0 | ||||||||||||
Repayments of Lines of Credit | 0 | 0 | |||||||||||||
Payments of Dividends | (1,268) | (1,171) | (691) | ||||||||||||
Repurchases of Common Stock | (435) | (483) | (87) | ||||||||||||
Excess Tax Benefits from Share-based Compensation | 0 | 0 | 0 | ||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 2,195 | 955 | 1,295 | ||||||||||||
Proceeds from Stock Options Exercised | 20 | 33 | 35 | ||||||||||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | (6) | ||||||||||||
Net Cash Provided by (Used for) Financing Activities | 462 | 322 | 333 | ||||||||||||
Effects of Exchange Rate Changes on Cash | 0 | 0 | 0 | ||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 0 | 0 | 0 | ||||||||||||
Cash and Cash Equivalents, Beginning of Year | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Cash and Cash Equivalents, End of Year | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Repayments of Long-term Debt | (742) | (213) | |||||||||||||
Guarantor Subsidiaries | |||||||||||||||
Net Cash Provided by (Used for) Operating Activities | 1,848 | 1,835 | 1,677 | ||||||||||||
Investing Activities | |||||||||||||||
Capital Expenditures | (705) | (506) | (486) | ||||||||||||
Proceeds from Sale of Other Assets, Investing Activities | 0 | 0 | |||||||||||||
Return of Capital | 0 | ||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | ||||||||||||||
Proceeds from Sale of Equity Method Investments | 1 | ||||||||||||||
Payments to Acquire Marketable Securities | (50) | ||||||||||||||
Proceeds from Sale and Maturity of Marketable Securities | 0 | 50 | |||||||||||||
Other Investing Activities | (2) | 0 | (1) | ||||||||||||
Net Cash Provided by (Used for) Investing Activities | (707) | (505) | (487) | ||||||||||||
Proceeds from Debt, Net of Issuance Costs | 0 | 0 | |||||||||||||
Financing Activities | |||||||||||||||
Borrowings from Debt Facilities | 0 | 0 | 0 | ||||||||||||
Repayments of Lines of Credit | 0 | 0 | |||||||||||||
Payments of Dividends | 0 | 0 | 0 | ||||||||||||
Repurchases of Common Stock | 0 | 0 | 0 | ||||||||||||
Excess Tax Benefits from Share-based Compensation | 37 | 62 | 37 | ||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | (1,803) | (662) | (1,118) | ||||||||||||
Proceeds from Stock Options Exercised | 0 | 0 | 0 | ||||||||||||
Proceeds from (Payments for) Other Financing Activities | (3) | (2) | 0 | ||||||||||||
Net Cash Provided by (Used for) Financing Activities | (1,769) | (602) | (1,081) | ||||||||||||
Effects of Exchange Rate Changes on Cash | 0 | 0 | 0 | ||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (628) | 728 | 109 | ||||||||||||
Cash and Cash Equivalents, Beginning of Year | 2,190 | 1,462 | 1,353 | 2,190 | 1,462 | 1,353 | |||||||||
Cash and Cash Equivalents, End of Year | 1,562 | 2,190 | 1,462 | 1,562 | 2,190 | 1,462 | |||||||||
Repayments of Long-term Debt | 0 | 0 | |||||||||||||
Non-Guarantor Subsidiaries | |||||||||||||||
Net Cash Provided by (Used for) Operating Activities | 504 | 356 | 442 | ||||||||||||
Investing Activities | |||||||||||||||
Capital Expenditures | (285) | (221) | (229) | ||||||||||||
Proceeds from Sale of Other Assets, Investing Activities | 53 | 196 | |||||||||||||
Return of Capital | 108 | ||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | (33) | ||||||||||||||
Proceeds from Sale of Equity Method Investments | 84 | ||||||||||||||
Payments to Acquire Marketable Securities | (10) | ||||||||||||||
Proceeds from Sale and Maturity of Marketable Securities | 10 | 0 | |||||||||||||
Other Investing Activities | 21 | 13 | 17 | ||||||||||||
Net Cash Provided by (Used for) Investing Activities | (126) | 62 | (212) | ||||||||||||
Proceeds from Debt, Net of Issuance Costs | 0 | 0 | |||||||||||||
Financing Activities | |||||||||||||||
Borrowings from Debt Facilities | 35 | 7 | 5 | ||||||||||||
Repayments of Lines of Credit | (6) | (5) | |||||||||||||
Payments of Dividends | 0 | 0 | 0 | ||||||||||||
Repurchases of Common Stock | 0 | 0 | 0 | ||||||||||||
Excess Tax Benefits from Share-based Compensation | 5 | 8 | 6 | ||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | (392) | (293) | (177) | ||||||||||||
Proceeds from Stock Options Exercised | 0 | 0 | 0 | ||||||||||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | 0 | ||||||||||||
Net Cash Provided by (Used for) Financing Activities | (358) | (278) | (171) | ||||||||||||
Effects of Exchange Rate Changes on Cash | (6) | (1) | (6) | ||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 14 | 139 | 53 | ||||||||||||
Cash and Cash Equivalents, Beginning of Year | $ 358 | $ 219 | $ 166 | 358 | 219 | 166 | |||||||||
Cash and Cash Equivalents, End of Year | $ 372 | $ 358 | $ 219 | 372 | $ 358 | 219 | |||||||||
Repayments of Long-term Debt | $ 0 | $ 0 |