Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Feb. 03, 2018 | Mar. 16, 2018 | Jul. 29, 2017 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Feb. 3, 2018 | ||
Document Fiscal Year Focus | 2,017 | ||
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 | --02-03 | ||
Entity Common Stock, Shares Outstanding | 278,858,024 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 10,967,734,685 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |||
Net Sales | $ 4,823 | $ 2,618 | $ 2,755 | $ 2,437 | $ 4,489 | $ 2,581 | $ 2,890 | $ 2,614 | $ 12,632 | $ 12,574 | $ 12,154 | ||
Costs of Goods Sold, Buying and Occupancy | 7,673 | 7,449 | 6,950 | ||||||||||
Gross Profit | 2,040 | 989 | 1,028 | 903 | 1,944 | 1,025 | 1,113 | 1,043 | 4,959 | 5,125 | 5,204 | ||
General, Administrative and Store Operating Expenses | 3,231 | 3,122 | 3,012 | ||||||||||
Operating Income | 987 | 232 | 301 | 209 | 988 | 284 | 408 | 323 | 1,728 | 2,003 | [1] | 2,192 | [1] |
Interest Expense | 406 | 394 | 334 | ||||||||||
Other Income (Loss) | (10) | 87 | 76 | ||||||||||
Income Before Income Taxes | 842 | 135 | 217 | 118 | 893 | 190 | 380 | 233 | 1,312 | 1,696 | 1,934 | ||
Provision for Income Taxes | 329 | 538 | 681 | ||||||||||
Net Income | $ 664 | $ 86 | $ 139 | $ 94 | $ 632 | $ 122 | $ 252 | $ 152 | $ 983 | $ 1,158 | $ 1,253 | ||
Net Income Per Basic Share | $ 2.36 | $ 0.30 | $ 0.48 | $ 0.33 | $ 2.21 | $ 0.43 | $ 0.88 | $ 0.53 | $ 3.46 | $ 4.04 | $ 4.30 | ||
Net Income Per Diluted Share | $ 2.33 | $ 0.30 | $ 0.48 | $ 0.33 | $ 2.18 | $ 0.42 | $ 0.87 | $ 0.52 | $ 3.42 | $ 3.98 | $ 4.22 | ||
[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 | |||||||||
Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Net Income | $ 664 | $ 86 | $ 139 | $ 94 | $ 632 | $ 122 | $ 252 | $ 152 | $ 983 | $ 1,158 | $ 1,253 |
Other Comprehensive Income (Loss), Net of Tax | |||||||||||
Foreign Currency Translation | 23 | (19) | (23) | ||||||||
Unrealized Gain (Loss) on Cash Flow Hedges | (20) | (8) | 6 | ||||||||
Reclassification of Cash Flow Hedges to Earnings | 7 | 7 | 14 | ||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 2 | (5) | 8 | ||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | $ (3) | 0 | (3) | 0 | |||||||
Total Other Comprehensive Income (Loss), Net of Tax | 12 | (28) | 5 | ||||||||
Total Comprehensive Income | $ 995 | $ 1,130 | $ 1,258 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Feb. 03, 2018 | Jan. 28, 2017 |
Current Assets: | ||
Cash and Cash Equivalents | $ 1,515 | $ 1,934 |
Accounts Receivable, Net | 310 | 294 |
Inventories | 1,240 | 1,096 |
Other | 228 | 141 |
Total Current Assets | 3,293 | 3,465 |
Property and Equipment, Net | 2,893 | 2,741 |
Goodwill | 1,348 | 1,348 |
Trade Names | 411 | 411 |
Deferred Tax Assets, Net, Noncurrent | 14 | 19 |
Other Assets | 190 | 186 |
Total Assets | 8,149 | 8,170 |
Current Liabilities: | ||
Accounts Payable | 717 | 683 |
Accrued Expenses and Other | 1,029 | 997 |
Debt, Current | 87 | 36 |
Income Taxes | 198 | 298 |
Total Current Liabilities | 2,031 | 2,014 |
Deferred Income Taxes | 238 | 352 |
Long-term Debt | 5,707 | 5,700 |
Other Long-term Liabilities | 924 | 831 |
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; 283 and 315 shares issued; 280 and 286 shares outstanding, respectively | 141 | 157 |
Paid-in Capital | 678 | 650 |
Accumulated Other Comprehensive Income | 24 | 12 |
Retained Earnings (Deficit) | (1,434) | 205 |
Less: Treasury Stock, at Average Cost; 3 and 29 shares, respectively | (162) | (1,753) |
Total L Brands, Inc. Shareholders’ Equity (Deficit) | (753) | (729) |
Noncontrolling Interest | 2 | 2 |
Total Equity (Deficit) | (751) | (727) |
Total Liabilities and Equity (Deficit) | $ 8,149 | $ 8,170 |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 03, 2018 | Jan. 28, 2017 |
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 | 283,000,000 | 315,000,000 |
Common Stock, Shares, Outstanding | 280,000,000 | 286,000,000 |
Treasury Stock, Shares | 3,000,000 | 29,000,000 |
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) | 292,000 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 4 | ||||||
Beginning Balance at Jan. 31, 2015 | $ 19 | $ 155 | $ 427 | $ 35 | $ 233 | $ (832) | $ 1 |
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 | ||||||
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 | 2,000 | ||||||
Exercise of Stock Options and Other | 107 | $ 1 | 105 | 0 | 0 | 0 | 1 |
Ending Balance at Jan. 28, 2017 | $ (727) | $ 157 | 650 | 12 | 205 | (1,753) | 2 |
Ending Balance (in shares) | 286,000 | 286,000 | |||||
Common Stock, Dividends, Per Share, Declared | $ 2.40 | ||||||
Net Income | $ 983 | $ 0 | 0 | 0 | 983 | 0 | 0 |
Other Comprehensive Income (Loss) | 12 | 0 | 0 | 12 | 0 | 0 | 0 |
Total Comprehensive Income (Loss) | 995 | 0 | 0 | 12 | 983 | 0 | 0 |
Dividends, Common Stock, Cash | $ (686) | $ 0 | 0 | 0 | (686) | 0 | 0 |
Treasury Stock, Shares, Acquired | 9,409 | 9,000 | |||||
Repurchase of Common Stock | $ (445) | $ 0 | 0 | 0 | 0 | (445) | 0 |
Treasury Stock, Retired, Cost Method, Amount | $ 0 | $ (18) | (82) | 0 | (1,936) | 2,036 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,845 | 3,000 | |||||
Exercise of Stock Options and Other | $ 112 | $ 2 | 110 | 0 | 0 | 0 | 0 |
Ending Balance at Feb. 03, 2018 | $ (751) | $ 141 | $ 678 | $ 24 | $ (1,434) | $ (162) | $ 2 |
Ending Balance (in shares) | 280,000 | 280,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Net Income (Loss) Attributable to Parent | $ 983 | $ 1,158 | $ 1,253 |
Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: | |||
Depreciation and Amortization of Long-lived Assets | 571 | 518 | 457 |
Amortization of Landlord Allowances | (47) | (46) | (42) |
Deferred Income Taxes | (108) | 110 | 11 |
Share-based Compensation Expense | 102 | 96 | 97 |
Gain (Loss) on Equity Method Investment Dividends Or Distributions | 20 | 112 | 0 |
Gain (Loss) on Extinguishment of Debt | (45) | (36) | 0 |
Available-for-sale Securities, Gross Realized Gains | 0 | 4 | 0 |
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | 0 | 78 |
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 0 | 0 | (2) |
Changes in Assets and Liabilities, Net of Assets and Liabilities related to Divestitures: | |||
Accounts Receivable | (13) | (44) | (10) |
Inventories | (137) | 30 | (92) |
Accounts Payable, Accrued Expenses and Other | 50 | 31 | 137 |
Income Taxes Payable | (40) | 117 | 131 |
Other Assets and Liabilities | 20 | 100 | 161 |
Net Cash Provided by (Used for) Operating Activities | 1,406 | 1,990 | 2,027 |
Investing Activities | |||
Capital Expenditures | (707) | (990) | (727) |
Proceeds from Equity Method Investment, Distribution, Return of Capital | 29 | 119 | 9 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | (33) | 0 |
Proceeds from Sale of Other Assets, Investing Activities | 0 | 53 | 196 |
Proceeds from Sale and Maturity of Marketable Securities | 0 | 10 | 50 |
Proceeds from Sale of Equity Method Investments | 0 | 0 | 85 |
Payments to Acquire Marketable Securities | (10) | 0 | (60) |
Other Investing Activities | (10) | 8 | 4 |
Net Cash Used for Investing Activities | (698) | (833) | (443) |
Financing Activities | |||
Proceeds from Debt, Net of Issuance Costs | 495 | 692 | 988 |
Repayments of Long-term Debt | (540) | (742) | 0 |
Proceeds from Lines of Credit | 96 | 35 | 7 |
Repayments of Lines of Credit | (44) | (6) | 0 |
Payments of Dividends | (686) | (1,268) | (1,171) |
Repurchases of Common Stock | (446) | (435) | (483) |
Payments Related to Tax Withholding for Share-based Compensation | (32) | (58) | (88) |
Proceeds From Exercise of Stock Options | 38 | 20 | 33 |
Payments of Financing Costs | (5) | 0 | 0 |
Proceeds from (Payments for) Other Financing Activities | (3) | (3) | (2) |
Net Cash Provided by (Used for) Financing Activities | (1,127) | (1,765) | (716) |
Effects of Exchange Rate Changes on Cash | 0 | (6) | (1) |
Net Increase (Decrease) in Cash and Cash Equivalents | (419) | (614) | 867 |
Cash and Cash Equivalents, Beginning of Year | 1,934 | 2,548 | 1,681 |
Cash and Cash Equivalents, End of Year | $ 1,515 | $ 1,934 | $ 2,548 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 03, 2018 | |
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 products. The Company sells its merchandise through company-owned specialty retail stores in the U.S., Canada, U.K., Ireland 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, “ 2017 ” refers to the 53-week period ended February 3, 2018 . “ 2016 ” and “ 2015 ” refer to the 52-week periods ended January 28, 2017 and January 30, 2016 , 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 (Loss) 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 $14 million as of February 3, 2018 and $5 million as of January 28, 2017 , 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. These investments are 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 net realizable value, 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 $383 million for 2017 , $325 million for 2016 and $414 million for 2015 . 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. Assets are grouped at the lowest level for which they are largely independent of other assets or asset groups. If the estimated undiscounted future cash flows related to the asset or asset group 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 or asset group. 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 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 will estimate 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 $210 million as of February 3, 2018 and $191 million as of January 28, 2017 . 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 $293 million as of February 3, 2018 and $279 million as of January 28, 2017 , 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 (Loss) on 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 for which actual outcomes may differ from forecasted 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. The Company estimates award forfeitures at the time awards are granted and adjusts, if necessary, in subsequent periods based on historical experience and expected future forfeitures. 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 revenue 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 historical experience. Net Sales exclude sales tax collected from customers. All of the Company's brands sell gift cards with no expiration dates to customers in retail stores, through direct channels and through third parties. 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 where the likelihood of the gift card being redeemed is remote and there is no legal obligation to remit the unredeemed gift cards to relevant jurisdictions (gift card breakage). Gift card breakage revenue is recognized in proportion, and over the same time period, as actual gift card redemptions. The Company determines the gift card breakage rate based on historical redemption patterns. Gift card breakage is included in Net Sales on 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. For additional information regarding future impacts as a result of the Company's adoption of ASC 606 in the first quarter of fiscal 2018, refer to Note 2, "New Accounting Pronouncements." 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 |
Feb. 03, 2018 | |
New Accounting Pronouncements Text Block [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | New Accounting Pronouncements Share-Based Compensation In the first quarter of 2017, the Company adopted ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting . On a prospective basis, this standard requires recognition of the income tax effects of share-based awards in the income statement when the awards vest or are exercised. These effects were historically recorded in equity on the balance sheet. As a result, the Company recognized $13 million of excess tax benefits related to share-based awards in Provision for Income Taxes in the 2017 Consolidated Statement of Income. The standard also requires all tax-related cash flows from share-based awards 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 from withheld shares as financing activities. The retrospective application of these changes resulted in a $100 million increase in operating cash flows and a corresponding decrease to financing cash flows on the 2016 Consolidated Statement of Cash Flows and a $158 million increase in operating cash flows and a corresponding decrease to financing cash flows on the 2015 Consolidated Statement of Cash Flows. Further, as allowed by the standard, the Company will continue to estimate award forfeitures at the time awards are granted and adjust, if necessary, in subsequent periods based on historical experience and expected future forfeiture rates. Revenue from Contracts with Customers In May 2014, the FASB issued ASC 606, Revenue from Contracts with Customers , which was 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. The standard allows for either a full retrospective or a modified retrospective transition method. The Company will adopt the standard in the first quarter of fiscal 2018 under the modified retrospective approach. Under the new standard, income from the Victoria's Secret private label credit card arrangement, which has historically been presented as a reduction to General, Administrative and Store Operating Expenses, will be presented as revenue. Further, current accounting related to loyalty points earned under the Victoria's Secret customer loyalty program will change as the Company will begin to defer revenue associated with customer loyalty points until the points are redeemed using a relative stand-alone selling price method. The new standard will also change accounting for sales returns which requires balance sheet presentation on a gross basis. In the first quarter of fiscal 2018, the Company will record a cumulative catch-up adjustment resulting in a reduction to opening retained earnings, net of tax, of approximately $28 million primarily relating to the deferral of revenue related to outstanding points, net of estimated forfeitures, under the Victoria's Secret customer loyalty program. Fair Value of Financial Instruments In January 2016, the FASB issued ASU 2016-01, Financial Instruments — Overall: Recognition and Measurement of Financial Assets and Financial Liabilities , which addresses certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. The standard requires the recognition of changes in the fair value of marketable equity securities in net income as compared to today's treatment in accumulated other comprehensive income on the balance sheet. The Company will adopt the standard in the first quarter of fiscal 2018 and record an increase to opening retained earnings, net of tax, of $2 million . Leases In February 2016, the FASB issued ASC 842, Leases , which 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 currently requires a modified retrospective transition approach. In January 2018, the FASB issued an exposure draft that would provide companies an option that would not require earlier periods to be restated upon adoption. The standard is 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. The Company currently expects that most of its operating lease commitments will be recognized as operating lease liabilities and right-of-use assets upon adoption of the standard. Thus, the Company expects adoption will result in a material increase to the assets and liabilities on the Consolidated Balance Sheet. The Company will adopt the standard in the first quarter of fiscal 2019. Hedging Activities In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities, which is intended to better align risk management activities and financial reporting for hedging relationships. The new standard eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. It also eases certain documentation and assessment requirements. This guidance will be effective beginning in fiscal 2019, with early adoption permitted. The Company is currently evaluating the impact of this standard on its Consolidated Statements of Income and Comprehensive Income, Balance Sheets and Statements of Cash Flows. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Feb. 03, 2018 | |
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 2017 , 2016 and 2015 : 2017 2016 2015 (in millions) Weighted-average Common Shares: Issued Shares (a) 308 314 312 Treasury Shares (a) (24 ) (27 ) (21 ) Basic Shares 284 287 291 Effect of Dilutive Options and Restricted Stock 3 4 6 Diluted Shares 287 291 297 Anti-dilutive Options and Awards (b) 4 2 1 ________________ (a) In November 2017, the Company retired 36 million shares of its Treasury Stock. (b) 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 |
Feb. 03, 2018 | |
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 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 |
Feb. 03, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring Activities During the first quarter of 2016, the Company made strategic changes within the Victoria’s Secret segment designed to focus the brand on its core merchandise categories, streamline operations and emphasize 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 Costs 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. The remaining liability for unpaid severance and related costs was not significant as of February 3, 2018 . |
Inventories
Inventories | 12 Months Ended |
Feb. 03, 2018 | |
Inventories | Inventories The following table provides details of inventories as of February 3, 2018 and January 28, 2017 : February 3, January 28, (in millions) Finished Goods Merchandise $ 1,121 $ 982 Raw Materials and Merchandise Components 119 114 Total Inventories $ 1,240 $ 1,096 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Feb. 03, 2018 | |
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 February 3, 2018 and January 28, 2017 : February 3, January 28, (in millions) Land and Improvements $ 116 $ 113 Buildings and Improvements 484 476 Furniture, Fixtures, Software and Equipment 3,757 3,560 Leasehold Improvements 2,251 2,044 Construction in Progress 79 89 Total 6,687 6,282 Accumulated Depreciation and Amortization (3,794 ) (3,541 ) Property and Equipment, Net $ 2,893 $ 2,741 Depreciation expense was $571 million in 2017 , $518 million in 2016 and $457 million in 2015 . 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 |
Feb. 03, 2018 | |
Goodwill, Trade Names and Other Intangible Assets, Net [Abstract] | |
Goodwill, Trade Names and Other Intangible Assets, Net | Goodwill and Trade Names Goodwill The following table provides detail regarding the composition of goodwill for the fiscal years ended February 3, 2018 and January 28, 2017 : February 3, 2018 January 28, 2017 (in millions) Victoria's Secret $ 690 $ 690 Bath & Body Works 628 628 Victoria's Secret and Bath & Body Works International 30 30 Goodwill $ 1,348 $ 1,348 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 February 3, 2018 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. The following table provides additional detail regarding the composition of trade names as of February 3, 2018 and January 28, 2017 : February 3, 2018 January 28, 2017 (in millions) Victoria's Secret $ 246 $ 246 Bath & Body Works 165 165 Trade Names $ 411 $ 411 |
Equity Investments and Other
Equity Investments and Other | 12 Months Ended |
Feb. 03, 2018 | |
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 (Loss) 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, a planned community in Columbus, Ohio, that integrates office, hotel, retail, residential and recreational space. These investments, totaling $81 million as of February 3, 2018 and $79 million as of January 28, 2017 , are recorded in Other Assets on the Consolidated Balance Sheets. Included in the Company’s Easton investments are equity interests in Easton Town Center, LLC (“ETC”) and Easton Gateway, LLC (“EG”), entities that own and develop commercial entertainment and shopping centers. The Company’s investments in ETC and EG are accounted for using the equity method of accounting. The Company has a majority financial interest in ETC and EG, but another unaffiliated member manages them, and certain significant decisions regarding ETC and EG require the consent of unaffiliated members in addition to the Company. During 2017, the Company received cash distributions of $29 million from certain of its Easton investments. As a result, the Company recognized pre-tax gains totaling $20 million which are included in Other Income (Loss) on the 2017 Consolidated Statement of Income, and the return of capital is included within the Investing Activities section of the 2017 Consolidated Statement of Cash Flows. In July 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 (Loss) on 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. |
Accrued Expenses and Other
Accrued Expenses and Other | 12 Months Ended |
Feb. 03, 2018 | |
Accrued Expenses and Other | Accrued Expenses and Other The following table provides additional information about the composition of accrued expenses and other as of February 3, 2018 and January 28, 2017 : February 3, January 28, (in millions) Deferred Revenue, Principally from Gift Card Sales $ 267 $ 259 Compensation, Payroll Taxes and Benefits 196 191 Taxes, Other than Income 102 82 Interest 101 99 Rent 43 48 Accrued Claims on Self-insured Activities 37 35 Returns Reserve 20 21 Other 263 262 Total Accrued Expenses and Other $ 1,029 $ 997 |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Current income tax expense represents the amounts expected to be reported on the Company’s income tax returns, and deferred tax expense or benefit represents the change in net deferred tax assets and liabilities. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Valuation allowances are recorded as appropriate to reduce deferred tax assets to the amount considered likely to be realized. On December 22, 2017, the Tax Cuts and Jobs Act (the "TCJA") was enacted into law. The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. The TCJA reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. This results in an effective statutory tax rate of 33.7% for the Company for the year ended February 3, 2018. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the TCJA. The ultimate impact may differ from provisional amounts, due to changes in interpretations and assumptions the Company has made regarding application of the TCJA as well as additional regulatory guidance that may be issued. The Company has recognized the following provisional tax impacts and included these amounts in its consolidated financial statements for the year ended February 3, 2018. As a result of the reduction in the U.S. corporate income tax rate from 35% to 21% under the TCJA, the Company revalued its ending net deferred tax liabilities at February 3, 2018 and recognized a provisional $159 million tax benefit in the Company’s Consolidated Statement of Income for the year ended February 3, 2018. The TCJA provided for a one-time deemed mandatory repatriation of post-1986 undistributed foreign subsidiary earnings and profits (“E&P”) determined as of December 31, 2017. The Company had an estimated $704 million of undistributed foreign E&P subject to the deemed mandatory repatriation and recognized a provisional $67 million of income tax expense in the Company’s Consolidated Statement of Income for the year ended February 3, 2018, which is payable over eight years. The amount payable in excess of one year, totaling $61 million , is included within Other Long-term Liabilities on the February 3, 2018 Consolidated Balance Sheet. Beginning in 2018, the TCJA includes a new global intangible low-taxed income (“GILTI”) provision that requires the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary's tangible assets. The Company has elected to account for GILTI tax in the period in which it is incurred, and therefore has not provided any deferred tax impacts of GILTI in its consolidated financial statements for the year ended February 3, 2018. The following table provides the components of the Company’s provision for income taxes for fiscal 2017 , 2016 and 2015 : 2017 2016 2015 (in millions) Current: U.S. Federal $ 366 $ 345 $ 553 U.S. State 49 62 96 Non-U.S. 22 21 21 Total 437 428 670 Deferred: U.S. Federal (114 ) 99 17 U.S. State 6 8 6 Non-U.S. — 3 (12 ) Total (108 ) 110 11 Provision for Income Taxes $ 329 $ 538 $ 681 The non-U.S. component of pre-tax income, arising principally from overseas operations, was income of $99 million , $134 million and $267 million for 2017 , 2016 and 2015 , respectively. The Company's income taxes payable reflects the tax effects from employee stock plan awards. For stock options, the taxes payable includes 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 taxes payable includes the tax effect of the difference between the fair market value of the stock at the time of grant and vesting. In the first quarter of 2017, the Company adopted the new share-based compensation standard that requires prospective recognition of excess tax effects in the income statement when awards vest or are exercised. As a result, a tax benefit of $13 million was recognized in the income tax provision for the year ended February 3, 2018. The Company had net excess tax benefits from equity awards of $42 million and $70 million in 2016 and 2015 , 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 fiscal 2017 , 2016 and 2015 : 2017 2016 2015 Federal Income Tax Rate 33.7 % 35.0 % 35.0 % State Income Taxes, Net of Federal Income Tax Effect 3.6 % 3.4 % 3.4 % Impact of Non-U.S. Operations (1.5 )% (1.2 )% (1.7 )% U.S. Net Deferred Tax Liability Remeasurement (12.1 )% — % — % Deemed Mandatory Repatriation 5.1 % — % — % Share-Based Compensation (1.0 )% — % — % Foreign Portion of the Divestiture of Third-party Apparel Sourcing Business — % — % (0.9 )% Resolution of Certain Tax Matters (0.9 )% (4.0 )% — % Other Items, Net (1.8 )% (1.5 )% (0.6 )% Effective Tax Rate 25.1 % 31.7 % 35.2 % Deferred Taxes The following table provides the effect of temporary differences that cause deferred income taxes as of February 3, 2018 and January 28, 2017 . 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. February 3, 2018 January 28, 2017 Assets Liabilities Total Assets Liabilities Total (in millions) Leases $ 47 $ — $ 47 $ 68 $ — $ 68 Non-qualified Retirement Plan 62 — 62 96 — 96 Property and Equipment — (266 ) (266 ) — (413 ) (413 ) Goodwill — (10 ) (10 ) — (15 ) (15 ) Trade Names and Other Intangibles — (91 ) (91 ) — (141 ) (141 ) State Net Operating Loss Carryforwards 14 — 14 15 — 15 Non-U.S. Operating Loss Carryforwards 188 — 188 155 — 155 Valuation Allowance (212 ) — (212 ) (174 ) — (174 ) Other, Net 44 — 44 76 — 76 Total Deferred Income Taxes $ 143 $ (367 ) $ (224 ) $ 236 $ (569 ) $ (333 ) As of February 3, 2018 , the Company had available for state income tax purposes net operating loss carryforwards which expire, if unused, in the years 2018 through 2037 . 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 February 3, 2018 , the Company had available for non-U.S. tax purposes net operating loss carryforwards which expire, if unused, in the years 2028 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. Income tax payments were $494 million for 2017 , $469 million for 2016 and $507 million for 2015 . 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 2017 , 2016 and 2015 , without interest and penalties: 2017 2016 2015 (in millions) Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year $ 90 $ 248 $ 193 Increases in Unrecognized Tax Benefits for Prior Years 3 3 8 Decreases in Unrecognized Tax Benefits for Prior Years (22 ) (73 ) (3 ) Increases in Unrecognized Tax Benefits as a Result of Current Year Activity 7 18 54 Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities (2 ) (98 ) — Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations (9 ) (8 ) (4 ) Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year $ 67 $ 90 $ 248 Of the $67 million , $90 million and $248 million of total unrecognized tax benefits at February 3, 2018 , January 28, 2017 , and January 30, 2016 , respectively, approximately $46 million , $62 million and $217 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 $12 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 $(2) million , $(3) million and $7 million in 2017 , 2016 and 2015 , respectively. The Company has accrued $17 million and $20 million for the payment of interest and penalties as of February 3, 2018 and January 28, 2017 , 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. The Company is a participant in the Compliance Assurance Process ("CAP"), which is a program made available by the Internal Revenue Service ("IRS") to certain qualifying large taxpayers, under which participants work collaboratively with the IRS to identify and resolve potential tax issues through open, cooperative and transparent interaction prior to the annual filing of their federal income tax return. The IRS is currently examining the Company's 2016 consolidated U.S. federal income tax return. The Company is also subject to various U.S. state and local income tax examinations for the years 2010 to 2016 . Finally, the Company is subject to multiple non-U.S. tax jurisdiction examinations for the years 2007 to 2016 . 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 |
Feb. 03, 2018 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Long-term Debt | Long-term Debt and Borrowing Facilities The following table provides the Company’s debt balance, net of unamortized debt issuance costs and discounts, as of February 3, 2018 and January 28, 2017 : February 3, January 28, (in millions) Senior Unsecured Debt with Subsidiary Guarantee $1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) $ 990 $ 989 $1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) 994 992 $1 billion, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”) 994 992 $700 million, 6.75% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) 693 692 $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) 497 497 $500 million, 5.25% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) 495 — $500 million, 8.50% Fixed Interest Rate Notes due June 2019 (“2019 Notes”) (a) — 496 $400 million, 7.00% Fixed Interest Rate Notes due May 2020 (“2020 Notes”) 398 397 Foreign Facilities with Subsidiary Guarantee 1 — Total Senior Unsecured Debt with Subsidiary Guarantee $ 5,062 $ 5,055 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 Foreign Facilities without Subsidiary Guarantee 87 36 Total Senior Unsecured Debt $ 732 $ 681 Total $ 5,794 $ 5,736 Current Debt (87 ) (36 ) Total Long-term Debt, Net of Current Portion $ 5,707 $ 5,700 _______________ (a) The balance includes a fair value interest rate hedge adjustment which increased the debt balance by $2 million as of January 28, 2017 . 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) 2018 $ 87 2019 — 2020 400 2021 1,000 2022 1,001 Thereafter $ 3,350 Cash paid for interest was $391 million in 2017 , $387 million in 2016 and $317 million in 2015 . Issuance of Notes In January 2018, the Company issued $500 million of 5.25% notes due in February 2028. The obligation to pay principal and interest on these notes is jointly and severally guaranteed on a full and unconditional basis by certain of the Company's 100% owned subsidiaries (the “Guarantors”). The proceeds from the issuance were $495 million , which were net of issuance costs of $5 million . These issuance costs are being amortized through the maturity date of February 2028 and are included within Long-term Debt on the February 3, 2018 Consolidated Balance Sheet. 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 Consolidated Balance Sheets. Redemption of Notes In January 2018, the Company used the proceeds from the 2028 Notes to redeem the $500 million 2019 Notes for $540 million . The pre-tax loss on extinguishment of this debt was $45 million (after-tax loss of $29 million ), which includes write-offs of unamortized issuance costs and discounts and losses related to terminated interest rate swaps associated with the 2019 Notes. This loss is included in Other Income (Loss) in the 2017 Consolidated Statement of Income. In July 2016, the Company used the proceeds from the 2036 Notes to redeem 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 (Loss) in the 2016 Consolidated Statement of Income. Revolving Facility In May 2017, the Company entered into an Amendment of its secured revolving credit facility. The Amendment maintains the aggregate amount of the commitments of the lenders under the Revolving Facility at $1 billion and extends the termination date from July 18, 2019 to May 11, 2022. The Amendment allows certain of the Company's non-U.S. subsidiaries to borrow and obtain letters of credit in U.S. dollars, Canadian dollars, Euros, Hong Kong dollars or British pounds. In addition, the Amendment reduced the commitment fees payable under the Revolving Facility, which are based on the Company's long-term credit rating, to 0.25% per annum. The Amendment did not modify the Company's quantitative covenant requirements, but did provide an increased limit on restricted payments in the event the Company does not meet the criteria to make these payments without limitation and provides greater flexibility with respect to the Company’s ability to grant liens on assets. The Company incurred fees related to the Amendment of the Revolving Facility of $5 million , which were capitalized and recorded in Other Assets on the February 3, 2018 Consolidated Balance Sheet and are being amortized over the remaining term of the Revolving Facility. The Revolving Facility fees related to committed and unutilized amounts are 0.25% 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 is LIBOR plus 1.50% per annum. The interest rate on outstanding foreign denominated borrowings is the applicable benchmark rate 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 February 3, 2018 , 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 February 3, 2018 , there were no borrowings outstanding under the Revolving Facility. The Revolving Facility supports the Company’s letter of credit program. The Company had $9 million of outstanding letters of credit as of February 3, 2018 that reduced its remaining availability under the Revolving Facility. Foreign Facilities In addition to the Revolving Facility, the Company maintains various revolving and term loan bank facilities to support operations in Greater China. These facilities allow certain of the Company's Greater China subsidiaries to borrow and obtain letters of credit in U.S. dollars and Chinese yuan. During the fourth quarter of 2017, the Company entered into a new revolving facility with availability totaling $100 million . The obligation to pay principal and interest is jointly and severally guaranteed on a full and unconditional basis by L Brands, Inc. and the Guarantors. The interest rates on outstanding borrowings are based upon the applicable benchmark rate for the currency of each borrowing. During 2017 , the Company borrowed $1 million under this facility. This borrowing, which matures on May 11, 2022, is included within Long-term Debt on the February 3, 2018 Consolidated Balance Sheet. The Company also maintains various revolving and term loan bank facilities that are guaranteed by L Brands, Inc. with availability totaling $100 million . The interest rates on outstanding borrowings are based upon the applicable benchmark rate for the currency of each borrowing. During 2017 , the Company borrowed $95 million and made payments of $44 million under these facilities. The maximum daily amount outstanding at any point in time during 2017 was $97 million . Current borrowings on these facilities mature between February 6, 2018 and December 18, 2018 and are included within Current Debt on the February 3, 2018 Consolidated Balance Sheet. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Feb. 03, 2018 | |
Summary of Derivative Instruments [Abstract] | |
Derivative Instruments | Derivative Financial Instruments Foreign Exchange Derivative Instruments The earnings of the Company's wholly owned foreign businesses are subject to exchange rate risk as substantially all of their merchandise is sourced through U.S. dollar transactions. The Company uses foreign currency forward contracts designated as cash flow hedges to mitigate this foreign currency exposure for its Canadian and U.K. businesses. 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 Costs of Goods Sold, Buying and Occupancy on the Consolidated Statements of Income. The Company had a cross-currency swap related to an intercompany loan of approximately CAD $170 million that matured in January 2018 which was designated as a cash flow hedge of foreign currency exchange risk. This cross-currency swap mitigated the exposures to fluctuations in the U.S. dollar-Canadian dollar exchange rate related to the Company's Canadian operations. Changes in the U.S. dollar-Canadian dollar exchange rate and the related swap settlements resulted 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 to mitigate 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 February 3, 2018 . The following table provides the U.S. dollar notional amount of outstanding foreign currency derivative financial instruments as of February 3, 2018 and January 28, 2017 : February 3, January 28, (in millions) Notional Amount $ 217 $ 360 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 February 3, 2018 and January 28, 2017 : February 3, January 28, (in millions) Other Current Assets $ — $ 18 Accrued Expenses and Other 8 1 Other Long-term Liabilities 1 — 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 2017 and 2016 : 2017 2016 (in millions) Gain (Loss) Recognized in Accumulated Other Comprehensive Income $ (21 ) $ (8 ) (Gain) Loss Reclassified from Accumulated Other Comprehensive Income into Cost of Goods Sold, Buying and Occupancy Expense (a) (1 ) (1 ) (Gain) Loss Reclassified from Accumulated Other Comprehensive Income into Other Income (Loss) (b) 8 8 ________________ (a) Represents reclassification of amounts from accumulated other comprehensive income 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 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 $8 million of losses included in accumulated other comprehensive income as of February 3, 2018 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. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Feb. 03, 2018 | |
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, excluding Foreign Facility borrowings, as of February 3, 2018 and January 28, 2017 : February 3, January 28, (in millions) Principal Value $ 5,750 $ 5,750 Fair Value (a) 5,943 6,030 ________________ (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 February 3, 2018 and January 28, 2017 : Level 1 Level 2 Level 3 Total (in millions) As of February 3, 2018 Assets: Cash and Cash Equivalents $ 1,515 $ — $ — $ 1,515 Marketable Securities 17 — — 17 Liabilities: Foreign Currency Cash Flow Hedges — 9 — 9 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 The Company's Level 1 fair value measurements use unadjusted quoted prices in active markets for identical assets. 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. In the fourth quarter of 2017, the Company purchased $10 million of marketable equity securities which are classified as available-for-sale as of the end of 2017. The cash payment is included in Purchases of Marketable Securities in the Investing Activities section of the 2017 Consolidated Statement of Cash Flows. In 2015, the Company purchased $10 million in marketable equity securities which are classified as available-for-sale. In the first quarter of 2016, the Company sold a portion of this investment for $10 million and recognized a pre-tax gain of $4 million (after-tax gain of $3 million ). The gain is included in Other Income (Loss) 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 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 |
Feb. 03, 2018 | |
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 on the Consolidated Balance Sheets and Consolidated Statements of Shareholders' Equity (Deficit). The following table provides the rollforward of accumulated other comprehensive income for 2017 : Foreign Currency Translation Cash Flow Hedges Marketable Securities Accumulated Other Comprehensive Income (in millions) Balance as of January 28, 2017 $ 9 $ 3 $ — $ 12 Other Comprehensive Income (Loss) Before Reclassifications 23 (21 ) 2 4 Amounts Reclassified from Accumulated Other Comprehensive Income — 7 — 7 Tax Effect — 1 — 1 Current-period Other Comprehensive Income (Loss) 23 (13 ) 2 12 Balance as of February 3, 2018 $ 32 $ (10 ) $ 2 $ 24 The following table provides the rollforward of accumulated other comprehensive income for 2016 : Foreign Currency Translation Cash Flow Hedges Marketable Securities Accumulated Other Comprehensive Income (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 — 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 a summary of the reclassification adjustments out of accumulated other comprehensive income for 2017 and 2016 : Details About Accumulated Other Comprehensive Income Components Amounts Reclassified from Accumulated Other Comprehensive Income Location on Consolidated Statements of Income 2017 2016 (in millions) (Gain) Loss on Cash Flow Hedges $ (1 ) $ (1 ) Costs of Goods Sold, Buying and Occupancy 8 8 Other Income (Loss) — — Provision for Income Taxes $ 7 $ 7 Net Income Sale of Available-for-Sale Securities $ — $ (4 ) Other Income (Loss) — 1 Provision for Income Taxes $ — $ (3 ) Net Income |
Leases
Leases | 12 Months Ended |
Feb. 03, 2018 | |
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 2017 , 2016 and 2015 : 2017 2016 2015 (in millions) Store Rent: Fixed Minimum $ 642 $ 607 $ 535 Contingent 67 71 73 Total Store Rent 709 678 608 Office, Equipment and Other 94 87 77 Gross Rent Expense 803 765 685 Sublease Rental Income (2 ) (2 ) (2 ) Total Rent Expense $ 801 $ 763 $ 683 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) 2018 $ 730 2019 695 2020 663 2021 617 2022 543 Thereafter $ 2,080 ________________ (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 |
Feb. 03, 2018 | |
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 a certain business, the Company has remaining guarantees of $10 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 business. 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 these guarantee obligations as of February 3, 2018 or January 28, 2017 as it concluded that payments under these guarantees were not probable. In connection with noncancellable operating leases of certain assets, the Company provided residual value guarantees to the lessor if the leased assets cannot be sold for an amount in excess of a specified minimum value at the conclusion of the lease term. The leases expire at various dates through 2021, and the total amount of the guarantees is $104 million . The Company recorded a liability of $3 million and $1 million related to these guarantee obligations as of February 3, 2018 and January 28, 2017 , respectively, which are included in Other Long-term Liabilities on the Consolidated Balance Sheets. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Feb. 03, 2018 | |
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 $68 million for 2017 , $67 million for 2016 and $64 million for 2015 . 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 February 3, 2018 and January 28, 2017 : February 3, January 28, (in millions) Balance at Beginning of Year $ 258 $ 274 Contributions: Associate 9 14 Company 9 14 Interest 11 12 Distributions (18 ) (56 ) Balance at End of Year $ 269 $ 258 Total expense recognized related to the non-qualified plan was $20 million for 2017 , $26 million for 2016 and $30 million for 2015 . |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) | 12 Months Ended |
Feb. 03, 2018 | |
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 fiscal 2017 , 2016 and 2015 : Shares Repurchased Amount Repurchased Average Stock Price of Shares Repurchased within Program Repurchase Program Amount Authorized 2017 2016 2015 2017 2016 2015 (in millions) (in thousands) (in millions) September 2017 $ 250 3,858 NA NA $ 202 NA NA $ 52.37 February 2017 250 5,500 NA NA 240 NA NA $ 43.57 February 2016 500 51 5,719 NA 3 $ 438 NA $ 76.47 June 2015 250 NA NA 2,680 NA NA $ 233 $ 87.06 February 2015 250 NA NA 2,788 NA NA 250 $ 89.45 Total 9,409 5,719 5,468 $ 445 $ 438 $ 483 In September 2017, the Company's Board of Directors approved a $250 million share repurchase program, which included the $10 million remaining under the February 2017 repurchase program. In February 2017, the Company's Board of Directors approved a $250 million share repurchase program, which included the $59 million remaining under the February 2016 repurchase program. 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 $2 million and $3 million of share repurchases reflected in Accounts Payable on the February 3, 2018 and January 28, 2017 Consolidated Balance Sheets, respectively. Subsequent to February 3, 2018 , the Company's Board of Directors approved a new $250 million share repurchase program, which included the $23 million remaining under the September 2017 repurchase program. The Company repurchased an additional 0.8 million shares of common stock for $35 million subsequent to February 3, 2018 . Treasury Stock Retirement In November 2017, the Company retired 36 million shares of its treasury stock. The retirement resulted in a reduction of $2.036 billion in Treasury Stock, $18 million in the par value of Common Stock, $82 million in Paid-in Capital and $1.936 billion in Retained Earnings. Dividends Under the authority and declaration of the Board of Directors, the Company paid the following dividends during fiscal 2017 , 2016 and 2015 : Ordinary Dividends Special Dividends Total Dividends Total Paid (per share) (in millions) 2017 Fourth Quarter $ 0.60 $ — $ 0.60 $ 170 Third Quarter 0.60 — 0.60 172 Second Quarter 0.60 — 0.60 172 First Quarter 0.60 — 0.60 172 2017 Total $ 2.40 $ — $ 2.40 $ 686 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 Subsequent to February 3, 2018 , the Company's Board of Directors declared the first quarter of 2018 ordinary dividend of $0.60 per share. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Feb. 03, 2018 | |
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 12 million options and shares were available for grant as of February 3, 2018 . 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 February 3, 2018 : 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 28, 2017 5,439 $ 47.17 Granted 1,163 47.12 Exercised (1,845 ) 20.70 Cancelled (285 ) 63.62 Outstanding as of February 3, 2018 4,472 $ 57.03 6.53 $ 18,313 Vested and Expected to Vest as of February 3, 2018 (a) 4,316 57.03 6.44 18,265 Options Exercisable as of February 3, 2018 2,202 50.05 4.72 17,489 ________________ (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 $44 million for 2017 , $30 million for 2016 and $63 million for 2015 . The total fair value at grant date of option awards vested was $10 million for 2017 and 2016 , and $11 million for 2015 . The Company’s total unrecognized compensation cost, net of estimated forfeitures, related to nonvested options was $14 million as of February 3, 2018 . This cost is expected to be recognized over a weighted-average period of 2.6 years. The weighted-average estimated fair value of stock options granted was $5.96 per share for 2017 , $11.72 per share for 2016 and $15.27 per share for 2015 . Cash received from stock options exercised was $38 million for 2017 , $20 million for 2016 and $33 million for 2015 . Tax benefits realized from tax deductions associated with stock options exercised were $16 million for 2017 , $9 million for 2016 and $20 million for 2015 . 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 2017 , 2016 and 2015 : 2017 2016 2015 Expected Volatility 28 % 25 % 26 % Risk-free Interest Rate 1.5 % 1.1 % 1.1 % Dividend Yield 5.1 % 3.3 % 2.7 % Expected Life (in years) 3.0 4.1 4.5 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 February 3, 2018 : Number of Shares Weighted Average Grant Date Fair Value (in thousands) Unvested as of January 28, 2017 5,292 $ 64.14 Granted 2,571 39.21 Vested (1,800 ) 48.48 Cancelled (364 ) 62.09 Unvested as of February 3, 2018 5,699 57.97 The Company’s total intrinsic value of restricted stock vested was $86 million for 2017 , $140 million for 2016 and $217 million for 2015 . The Company’s total fair value at grant date of awards vested was $87 million for 2017 , $68 million for 2016 and $80 million for 2015 . 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 February 3, 2018 , there was $134 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 2.6 years. The weighted-average estimated fair value of restricted stock granted was $39.21 per share for 2017 , $75.09 per share for 2016 and $85.61 per share for 2015 . Tax benefits realized from tax deductions associated with restricted stock vested were $32 million for 2017 , $61 million for 2016 and $82 million for 2015 . Income Statement Impact The following table provides share-based compensation expense included in the Consolidated Statements of Income for 2017 , 2016 and 2015 : 2017 2016 2015 (in millions) Costs of Goods Sold, Buying and Occupancy $ 32 $ 31 $ 27 General, Administrative and Store Operating Expenses 70 65 70 Total Share-based Compensation Expense $ 102 $ 96 $ 97 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 $23 million for 2017 , $32 million for 2016 and $33 million for 2015 . |
Segment Information
Segment Information | 12 Months Ended |
Feb. 03, 2018 | |
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 online and through retail stores located in the U.S. and Canada. The Bath & Body Works segment sells body 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 online and at retail stores located in the U.S. and Canada. 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, as well as its online business in Greater China on the Tmall domestic platform. This segment includes the following: • Victoria's Secret International, comprised of company-owned stores in the U.K., Ireland and Greater China, as well as stores operated by partners under franchise and license arrangements; • 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 in travel retail and other locations; and • Bath & Body Works International stores in travel retail and other locations 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, which sells women's intimate apparel online and through company-owned stores located in Canada and the U.S., as well as stores operated by partners under franchise and license arrangements; • Henri Bendel, which sells handbags, jewelry and other accessory products online and through company-owned stores; 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 February 3, 2018 , January 28, 2017 and January 30, 2016 : Victoria’s Secret Bath & Body Works Victoria’s Secret and Bath & Body Works International Other Total (in millions) February 3, 2018 Net Sales $ 7,387 $ 4,148 $ 502 $ 595 $ 12,632 Depreciation and Amortization 279 101 30 114 524 Operating Income (Loss) 932 953 5 (162 ) 1,728 Total Assets (a) 3,369 1,753 800 2,227 8,149 Capital Expenditures 270 232 111 94 707 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 ________________ (a) Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. The Company’s international net 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 net sales across all segments totaled $1.553 billion in 2017 , $1.408 billion in 2016 and $1.314 billion in 2015 . The Company’s internationally based long-lived assets were $451 million as of February 3, 2018 and $357 million as of January 28, 2017 . |
Subsequent Events
Subsequent Events | 12 Months Ended |
Feb. 03, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to February 3, 2018 , the Company's Board of Directors approved a new $250 million share repurchase program, which included the $23 million remaining under the September 2017 repurchase program. The Company repurchased an additional 0.8 million shares of common stock for $35 million subsequent to February 3, 2018 . The Company's Board of Directors declared the first quarter of 2018 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 |
Feb. 03, 2018 | |
Supplemental Guarantor Financial Information [Abstract] | |
Schedule Of Supplemental Guarantor Financial Information [Text Block] | Supplemental Guarantor Financial Information The Company’s 2020 Notes, 2021 Notes, 2022 Notes, 2023 Notes, 2028 Notes, 2035 Notes, 2036 Notes and certain of its Foreign Facilities 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 February 3, 2018 and January 28, 2017 and the Condensed Consolidating Statements of Income, Comprehensive Income and Cash Flows for the years ended February 3, 2018 , January 28, 2017 and January 30, 2016 . L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) February 3, 2018 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 1,164 $ 351 $ — $ 1,515 Accounts Receivable, Net — 186 124 — 310 Inventories — 1,095 145 — 1,240 Other — 132 96 — 228 Total Current Assets — 2,577 716 — 3,293 Property and Equipment, Net — 1,984 909 — 2,893 Goodwill — 1,318 30 — 1,348 Trade Names — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 4,912 18,359 2,106 (25,377 ) — Deferred Income Taxes — 10 4 — 14 Other Assets 129 18 654 (611 ) 190 Total Assets $ 5,041 $ 24,677 $ 4,419 $ (25,988 ) $ 8,149 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ 2 $ 349 $ 366 $ — $ 717 Accrued Expenses and Other 101 529 399 — 1,029 Current Debt — — 87 — 87 Income Taxes 6 174 18 — 198 Total Current Liabilities 109 1,052 870 — 2,031 Deferred Income Taxes (2 ) (46 ) 286 — 238 Long-term Debt 5,706 597 1 (597 ) 5,707 Other Long-term Liabilities 3 835 100 (14 ) 924 Total Equity (Deficit) (775 ) 22,239 3,162 (25,377 ) (751 ) Total Liabilities and Equity (Deficit) $ 5,041 $ 24,677 $ 4,419 $ (25,988 ) $ 8,149 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 — 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 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 STATEMENT OF INCOME (in millions) 2017 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 11,931 $ 3,728 $ (3,027 ) $ 12,632 Costs of Goods Sold, Buying and Occupancy — (7,463 ) (2,868 ) 2,658 (7,673 ) Gross Profit — 4,468 860 (369 ) 4,959 General, Administrative and Store Operating Expenses (10 ) (3,063 ) (426 ) 268 (3,231 ) Operating Income (Loss) (10 ) 1,405 434 (101 ) 1,728 Interest Expense (403 ) (99 ) (13 ) 109 (406 ) Other Income (Loss) (46 ) 11 25 — (10 ) Income (Loss) Before Income Taxes (459 ) 1,317 446 8 1,312 Provision (Benefit) for Income Taxes 65 316 (52 ) — 329 Equity in Earnings, Net of Tax 1,507 522 412 (2,441 ) — Net Income (Loss) $ 983 $ 1,523 $ 910 $ (2,433 ) $ 983 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) 2017 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Income (Loss) $ 983 $ 1,523 $ 910 $ (2,433 ) $ 983 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — 23 — 23 Unrealized Gain (Loss) on Cash Flow Hedges — — (20 ) — (20 ) Reclassification of Cash Flow Hedges to Earnings — — 7 — 7 Unrealized Gain (Loss) on Marketable Securities — — 2 — 2 Total Other Comprehensive Income (Loss), Net of Tax — — 12 — 12 Total Comprehensive Income (Loss) $ 983 $ 1,523 $ 922 $ (2,433 ) $ 995 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) 2016 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated 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 (Loss) (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 Gain (Loss) on Cash Flow Hedges — — (8 ) — (8 ) Reclassification of Cash Flow Hedges to Earnings — — 7 — 7 Unrealized Gain (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 (Loss) $ 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 (Loss) — 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 (Loss) on Cash Flow Hedges — — 6 — 6 Reclassification of Cash Flow Hedges to Earnings — — 14 — 14 Unrealized Gain (Loss) on Marketable Securities — — 8 — 8 Total Other Comprehensive Income (Loss), Net of Tax — — 5 — 5 Total Comprehensive Income (Loss) $ 1,253 $ 1,527 $ 482 $ (2,004 ) $ 1,258 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) 2017 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ (462 ) $ 1,414 $ 454 $ — $ 1,406 Investing Activities: Capital Expenditures — (495 ) (212 ) — (707 ) Return of Capital from Easton Investments — — 29 — 29 Purchase of Marketable Securities — — (10 ) — (10 ) Other Investing Activities — (1 ) (9 ) — (10 ) Net Cash Provided by (Used for) Investing Activities — (496 ) (202 ) — (698 ) Financing Activities: Proceeds from Issuance of Long-term Debt, Net of Issuance Costs 495 — — — 495 Payment of Long-term Debt (540 ) — — — (540 ) Borrowings from Foreign Facilities — — 96 — 96 Repayments of Foreign Facilities — — (44 ) — (44 ) Dividends Paid (686 ) — — — (686 ) Repurchases of Common Stock (446 ) — — — (446 ) Tax Payments related to Share-based Awards (32 ) — — — (32 ) Net Financing Activities and Advances to/from Consolidated Affiliates 1,638 (1,313 ) (325 ) — — Proceeds From Exercise of Stock Options 38 — — — 38 Financing Costs (5 ) — — — (5 ) Other Financing Activities — (3 ) — — (3 ) Net Cash Provided by (Used for) Financing Activities 462 (1,316 ) (273 ) — (1,127 ) Effects of Exchange Rate Changes on Cash — — — — — Net Increase (Decrease) in Cash and Cash Equivalents — (398 ) (21 ) — (419 ) Cash and Cash Equivalents, Beginning of Year — 1,562 372 — 1,934 Cash and Cash Equivalents, End of Year $ — $ 1,164 $ 351 $ — $ 1,515 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 $ (404 ) $ 1,885 $ 509 $ — $ 1,990 Investing Activities: Capital Expenditures — (705 ) (285 ) — (990 ) Return of Capital from Easton Investments — — 119 — 119 Proceeds from Sale of Assets — — 53 — 53 Proceeds from Sale of Marketable Securities — — 10 — 10 Acquisition, Net of Cash Acquired of $1 — — (33 ) — (33 ) Other Investing Activities — (2 ) 10 — 8 Net Cash Provided by (Used for) Investing Activities — (707 ) (126 ) — (833 ) Financing Activities: Proceeds from Issuance of Long-term Debt, Net of Issuance Costs 692 — — — 692 Payment of Long-term Debt (742 ) — — — (742 ) Borrowings from Foreign Facilities — — 35 — 35 Repayments of Foreign Facilities — — (6 ) — (6 ) Dividends Paid (1,268 ) — — — (1,268 ) Repurchases of Common Stock (435 ) — — — (435 ) Tax Payments related to Share-based Awards (58 ) — — — (58 ) Net Financing Activities and Advances to/from Consolidated Affiliates 2,195 (1,803 ) (392 ) — — Proceeds From Exercise of Stock Options 20 — — — 20 Other Financing Activities — (3 ) — — (3 ) Net Cash Provided by (Used for) Financing Activities 404 (1,806 ) (363 ) — (1,765 ) Effects of Exchange Rate Changes on Cash — — (6 ) — (6 ) Net Increase (Decrease) 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 $ (234 ) $ 1,897 $ 364 $ — $ 2,027 Investing Activities: Capital Expenditures — (506 ) (221 ) — (727 ) Return of Capital from Easton Investments — — 9 — 9 Purchases of Marketable Securities — (50 ) (10 ) — (60 ) 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 Other Investing Activities — — 4 — 4 Net Cash Provided by (Used for) Investing Activities — (505 ) 62 — (443 ) Financing Activities: Proceeds from Issuance of Long-term Debt, Net of Issuance Costs 988 — — — 988 Borrowings from Foreign Facilities — — 7 — 7 Dividends Paid (1,171 ) — — — (1,171 ) Repurchases of Common Stock (483 ) — — — (483 ) Tax Payments related to Share-based Awards (88 ) — — — (88 ) Net Financing Activities and Advances to/from Consolidated Affiliates 955 (662 ) (293 ) — — Proceeds From Exercise of Stock Options 33 — — — 33 Other Financing Activities — (2 ) — — (2 ) Net Cash Provided by (Used for) Financing Activities 234 (664 ) (286 ) — (716 ) Effects of Exchange Rate Changes on Cash — — (1 ) — (1 ) Net Increase (Decrease) 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 |
Description of Business and S31
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 03, 2018 | |
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 products. The Company sells its merchandise through company-owned specialty retail stores in the U.S., Canada, U.K., Ireland 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, “ 2017 ” refers to the 53-week period ended February 3, 2018 . “ 2016 ” and “ 2015 ” refer to the 52-week periods ended January 28, 2017 and January 30, 2016 , respectively. |
Basis of Consolidation | Basis of Consolidation The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company accounts for investments in unconsolidated entities where it exercises significant influence, but does not have control, using the equity method. Under the equity method of accounting, the Company recognizes its share of the investee'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 (Loss) 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 (Loss) 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 $14 million as of February 3, 2018 and $5 million as of January 28, 2017 , 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. These investments are 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 net realizable value, 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 $383 million for 2017 , $325 million for 2016 and $414 million for 2015 . |
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. Assets are grouped at the lowest level for which they are largely independent of other assets or asset groups. If the estimated undiscounted future cash flows related to the asset or asset group 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 or asset group. |
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 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 will estimate 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 $210 million as of February 3, 2018 and $191 million as of January 28, 2017 . 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 $293 million as of February 3, 2018 and $279 million as of January 28, 2017 , 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 (Loss) on 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 for which actual outcomes may differ from forecasted 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. The Company estimates award forfeitures at the time awards are granted and adjusts, if necessary, in subsequent periods based on historical experience and expected future forfeitures. 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 revenue 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 historical experience. Net Sales exclude sales tax collected from customers. All of the Company's brands sell gift cards with no expiration dates to customers in retail stores, through direct channels and through third parties. 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 where the likelihood of the gift card being redeemed is remote and there is no legal obligation to remit the unredeemed gift cards to relevant jurisdictions (gift card breakage). Gift card breakage revenue is recognized in proportion, and over the same time period, as actual gift card redemptions. The Company determines the gift card breakage rate based on historical redemption patterns. Gift card breakage is included in Net Sales on 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. For additional information regarding future impacts as a result of the Company's adoption of ASC 606 in the first quarter of fiscal 2018, refer to Note 2, "New Accounting Pronouncements." |
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 S32
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
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 |
Feb. 03, 2018 | |
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 2017 , 2016 and 2015 : 2017 2016 2015 (in millions) Weighted-average Common Shares: Issued Shares (a) 308 314 312 Treasury Shares (a) (24 ) (27 ) (21 ) Basic Shares 284 287 291 Effect of Dilutive Options and Restricted Stock 3 4 6 Diluted Shares 287 291 297 Anti-dilutive Options and Awards (b) 4 2 1 ________________ (a) In November 2017, the Company retired 36 million shares of its Treasury Stock. (b) 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 |
Feb. 03, 2018 | |
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 |
Feb. 03, 2018 | |
Summary of inventories | The following table provides details of inventories as of February 3, 2018 and January 28, 2017 : February 3, January 28, (in millions) Finished Goods Merchandise $ 1,121 $ 982 Raw Materials and Merchandise Components 119 114 Total Inventories $ 1,240 $ 1,096 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Property, Plant and Equipment, Net | The following table provides details of property and equipment, net as of February 3, 2018 and January 28, 2017 : February 3, January 28, (in millions) Land and Improvements $ 116 $ 113 Buildings and Improvements 484 476 Furniture, Fixtures, Software and Equipment 3,757 3,560 Leasehold Improvements 2,251 2,044 Construction in Progress 79 89 Total 6,687 6,282 Accumulated Depreciation and Amortization (3,794 ) (3,541 ) Property and Equipment, Net $ 2,893 $ 2,741 |
Goodwill, Trade Names and Oth37
Goodwill, Trade Names and Other Intangible Assets, Net (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
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 February 3, 2018 and January 28, 2017 : February 3, 2018 January 28, 2017 (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 February 3, 2018 and January 28, 2017 : February 3, 2018 January 28, 2017 (in millions) Victoria's Secret $ 690 $ 690 Bath & Body Works 628 628 Victoria's Secret and Bath & Body Works International 30 30 Goodwill $ 1,348 $ 1,348 |
Accrued Expenses and Other (Tab
Accrued Expenses and Other (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Composition of Accrued Expenses and Other | The following table provides additional information about the composition of accrued expenses and other as of February 3, 2018 and January 28, 2017 : February 3, January 28, (in millions) Deferred Revenue, Principally from Gift Card Sales $ 267 $ 259 Compensation, Payroll Taxes and Benefits 196 191 Taxes, Other than Income 102 82 Interest 101 99 Rent 43 48 Accrued Claims on Self-insured Activities 37 35 Returns Reserve 20 21 Other 263 262 Total Accrued Expenses and Other $ 1,029 $ 997 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The following table provides the components of the Company’s provision for income taxes for fiscal 2017 , 2016 and 2015 : 2017 2016 2015 (in millions) Current: U.S. Federal $ 366 $ 345 $ 553 U.S. State 49 62 96 Non-U.S. 22 21 21 Total 437 428 670 Deferred: U.S. Federal (114 ) 99 17 U.S. State 6 8 6 Non-U.S. — 3 (12 ) Total (108 ) 110 11 Provision for Income Taxes $ 329 $ 538 $ 681 |
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 fiscal 2017 , 2016 and 2015 : 2017 2016 2015 Federal Income Tax Rate 33.7 % 35.0 % 35.0 % State Income Taxes, Net of Federal Income Tax Effect 3.6 % 3.4 % 3.4 % Impact of Non-U.S. Operations (1.5 )% (1.2 )% (1.7 )% U.S. Net Deferred Tax Liability Remeasurement (12.1 )% — % — % Deemed Mandatory Repatriation 5.1 % — % — % Share-Based Compensation (1.0 )% — % — % Foreign Portion of the Divestiture of Third-party Apparel Sourcing Business — % — % (0.9 )% Resolution of Certain Tax Matters (0.9 )% (4.0 )% — % Other Items, Net (1.8 )% (1.5 )% (0.6 )% Effective Tax Rate 25.1 % 31.7 % 35.2 % |
Effect of Temporary Differences that Cause Deferred Income Taxes | The following table provides the effect of temporary differences that cause deferred income taxes as of February 3, 2018 and January 28, 2017 . 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. February 3, 2018 January 28, 2017 Assets Liabilities Total Assets Liabilities Total (in millions) Leases $ 47 $ — $ 47 $ 68 $ — $ 68 Non-qualified Retirement Plan 62 — 62 96 — 96 Property and Equipment — (266 ) (266 ) — (413 ) (413 ) Goodwill — (10 ) (10 ) — (15 ) (15 ) Trade Names and Other Intangibles — (91 ) (91 ) — (141 ) (141 ) State Net Operating Loss Carryforwards 14 — 14 15 — 15 Non-U.S. Operating Loss Carryforwards 188 — 188 155 — 155 Valuation Allowance (212 ) — (212 ) (174 ) — (174 ) Other, Net 44 — 44 76 — 76 Total Deferred Income Taxes $ 143 $ (367 ) $ (224 ) $ 236 $ (569 ) $ (333 ) |
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 2017 , 2016 and 2015 , without interest and penalties: 2017 2016 2015 (in millions) Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year $ 90 $ 248 $ 193 Increases in Unrecognized Tax Benefits for Prior Years 3 3 8 Decreases in Unrecognized Tax Benefits for Prior Years (22 ) (73 ) (3 ) Increases in Unrecognized Tax Benefits as a Result of Current Year Activity 7 18 54 Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities (2 ) (98 ) — Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations (9 ) (8 ) (4 ) Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year $ 67 $ 90 $ 248 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
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 unamortized debt issuance costs and discounts, as of February 3, 2018 and January 28, 2017 : February 3, January 28, (in millions) Senior Unsecured Debt with Subsidiary Guarantee $1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) $ 990 $ 989 $1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) 994 992 $1 billion, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”) 994 992 $700 million, 6.75% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) 693 692 $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) 497 497 $500 million, 5.25% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) 495 — $500 million, 8.50% Fixed Interest Rate Notes due June 2019 (“2019 Notes”) (a) — 496 $400 million, 7.00% Fixed Interest Rate Notes due May 2020 (“2020 Notes”) 398 397 Foreign Facilities with Subsidiary Guarantee 1 — Total Senior Unsecured Debt with Subsidiary Guarantee $ 5,062 $ 5,055 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 Foreign Facilities without Subsidiary Guarantee 87 36 Total Senior Unsecured Debt $ 732 $ 681 Total $ 5,794 $ 5,736 Current Debt (87 ) (36 ) Total Long-term Debt, Net of Current Portion $ 5,707 $ 5,700 _______________ (a) The balance includes a fair value interest rate hedge adjustment which increased the debt balance by $2 million as of January 28, 2017 . |
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) 2018 $ 87 2019 — 2020 400 2021 1,000 2022 1,001 Thereafter $ 3,350 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) - Foreign Exchange Contract [Member] | 12 Months Ended |
Feb. 03, 2018 | |
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 February 3, 2018 and January 28, 2017 : February 3, January 28, (in millions) Notional Amount $ 217 $ 360 |
Cash Flow Hedging [Member] | |
Schedule of Derivative Instruments in Statement of Financial Position | The following table provides a summary of the fair value and balance sheet classification of outstanding derivative financial instruments designated as foreign currency cash flow hedges as of February 3, 2018 and January 28, 2017 : February 3, January 28, (in millions) Other Current Assets $ — $ 18 Accrued Expenses and Other 8 1 Other Long-term Liabilities 1 — |
Schedule of Derivative Instruments in Statement of Financial Performance | The following table provides a summary of the pre-tax financial statement effect of the gains and losses on derivative financial instruments designated as foreign currency cash flow hedges for 2017 and 2016 : 2017 2016 (in millions) Gain (Loss) Recognized in Accumulated Other Comprehensive Income $ (21 ) $ (8 ) (Gain) Loss Reclassified from Accumulated Other Comprehensive Income into Cost of Goods Sold, Buying and Occupancy Expense (a) (1 ) (1 ) (Gain) Loss Reclassified from Accumulated Other Comprehensive Income into Other Income (Loss) (b) 8 8 ________________ (a) Represents reclassification of amounts from accumulated other comprehensive income 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 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 |
Feb. 03, 2018 | |
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, excluding Foreign Facility borrowings, as of February 3, 2018 and January 28, 2017 : February 3, January 28, (in millions) Principal Value $ 5,750 $ 5,750 Fair Value (a) 5,943 6,030 ________________ (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 February 3, 2018 and January 28, 2017 : Level 1 Level 2 Level 3 Total (in millions) As of February 3, 2018 Assets: Cash and Cash Equivalents $ 1,515 $ — $ — $ 1,515 Marketable Securities 17 — — 17 Liabilities: Foreign Currency Cash Flow Hedges — 9 — 9 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 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 12 Months Ended | |
Feb. 03, 2018 | Jan. 28, 2017 | |
Comprehensive Income Loss | ||
Components of Accumulated Other Comprehensive Income (Loss) | The following table provides the rollforward of accumulated other comprehensive income for 2017 : Foreign Currency Translation Cash Flow Hedges Marketable Securities Accumulated Other Comprehensive Income (in millions) Balance as of January 28, 2017 $ 9 $ 3 $ — $ 12 Other Comprehensive Income (Loss) Before Reclassifications 23 (21 ) 2 4 Amounts Reclassified from Accumulated Other Comprehensive Income — 7 — 7 Tax Effect — 1 — 1 Current-period Other Comprehensive Income (Loss) 23 (13 ) 2 12 Balance as of February 3, 2018 $ 32 $ (10 ) $ 2 $ 24 | The following table provides the rollforward of accumulated other comprehensive income for 2016 : Foreign Currency Translation Cash Flow Hedges Marketable Securities Accumulated Other Comprehensive Income (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 — 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 |
Reclassification out of Accumulated Other Comprehensive Income | The following table provides a summary of the reclassification adjustments out of accumulated other comprehensive income for 2017 and 2016 : Details About Accumulated Other Comprehensive Income Components Amounts Reclassified from Accumulated Other Comprehensive Income Location on Consolidated Statements of Income 2017 2016 (in millions) (Gain) Loss on Cash Flow Hedges $ (1 ) $ (1 ) Costs of Goods Sold, Buying and Occupancy 8 8 Other Income (Loss) — — Provision for Income Taxes $ 7 $ 7 Net Income Sale of Available-for-Sale Securities $ — $ (4 ) Other Income (Loss) — 1 Provision for Income Taxes $ — $ (3 ) Net Income |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
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 2017 , 2016 and 2015 : 2017 2016 2015 (in millions) Store Rent: Fixed Minimum $ 642 $ 607 $ 535 Contingent 67 71 73 Total Store Rent 709 678 608 Office, Equipment and Other 94 87 77 Gross Rent Expense 803 765 685 Sublease Rental Income (2 ) (2 ) (2 ) Total Rent Expense $ 801 $ 763 $ 683 |
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) 2018 $ 730 2019 695 2020 663 2021 617 2022 543 Thereafter $ 2,080 ________________ (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 |
Feb. 03, 2018 | |
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 February 3, 2018 and January 28, 2017 : February 3, January 28, (in millions) Balance at Beginning of Year $ 258 $ 274 Contributions: Associate 9 14 Company 9 14 Interest 11 12 Distributions (18 ) (56 ) Balance at End of Year $ 269 $ 258 |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
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 fiscal 2017 , 2016 and 2015 : Shares Repurchased Amount Repurchased Average Stock Price of Shares Repurchased within Program Repurchase Program Amount Authorized 2017 2016 2015 2017 2016 2015 (in millions) (in thousands) (in millions) September 2017 $ 250 3,858 NA NA $ 202 NA NA $ 52.37 February 2017 250 5,500 NA NA 240 NA NA $ 43.57 February 2016 500 51 5,719 NA 3 $ 438 NA $ 76.47 June 2015 250 NA NA 2,680 NA NA $ 233 $ 87.06 February 2015 250 NA NA 2,788 NA NA 250 $ 89.45 Total 9,409 5,719 5,468 $ 445 $ 438 $ 483 |
Schedule Of Dividends Paid | Under the authority and declaration of the Board of Directors, the Company paid the following dividends during fiscal 2017 , 2016 and 2015 : Ordinary Dividends Special Dividends Total Dividends Total Paid (per share) (in millions) 2017 Fourth Quarter $ 0.60 $ — $ 0.60 $ 170 Third Quarter 0.60 — 0.60 172 Second Quarter 0.60 — 0.60 172 First Quarter 0.60 — 0.60 172 2017 Total $ 2.40 $ — $ 2.40 $ 686 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 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Share-based Compensation [Abstract] | |
Stock Option Activity | The following table provides the Company’s stock option activity for the fiscal year ended February 3, 2018 : 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 28, 2017 5,439 $ 47.17 Granted 1,163 47.12 Exercised (1,845 ) 20.70 Cancelled (285 ) 63.62 Outstanding as of February 3, 2018 4,472 $ 57.03 6.53 $ 18,313 Vested and Expected to Vest as of February 3, 2018 (a) 4,316 57.03 6.44 18,265 Options Exercisable as of February 3, 2018 2,202 50.05 4.72 17,489 ________________ (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 2017 , 2016 and 2015 : 2017 2016 2015 Expected Volatility 28 % 25 % 26 % Risk-free Interest Rate 1.5 % 1.1 % 1.1 % Dividend Yield 5.1 % 3.3 % 2.7 % Expected Life (in years) 3.0 4.1 4.5 |
Restricted Stock Activity | The following table provides the Company’s restricted stock activity for the fiscal year ended February 3, 2018 : Number of Shares Weighted Average Grant Date Fair Value (in thousands) Unvested as of January 28, 2017 5,292 $ 64.14 Granted 2,571 39.21 Vested (1,800 ) 48.48 Cancelled (364 ) 62.09 Unvested as of February 3, 2018 5,699 57.97 |
Share-Based Compensation Expense | The following table provides share-based compensation expense included in the Consolidated Statements of Income for 2017 , 2016 and 2015 : 2017 2016 2015 (in millions) Costs of Goods Sold, Buying and Occupancy $ 32 $ 31 $ 27 General, Administrative and Store Operating Expenses 70 65 70 Total Share-based Compensation Expense $ 102 $ 96 $ 97 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
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 February 3, 2018 , January 28, 2017 and January 30, 2016 : Victoria’s Secret Bath & Body Works Victoria’s Secret and Bath & Body Works International Other Total (in millions) February 3, 2018 Net Sales $ 7,387 $ 4,148 $ 502 $ 595 $ 12,632 Depreciation and Amortization 279 101 30 114 524 Operating Income (Loss) 932 953 5 (162 ) 1,728 Total Assets (a) 3,369 1,753 800 2,227 8,149 Capital Expenditures 270 232 111 94 707 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 ________________ (a) Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |
Feb. 03, 2018 | Jan. 28, 2017 | |
Quarterly Financial Data [Abstract] | ||
Summarized Quarterly Financial Data | The following table provides summarized quarterly financial data for 2017 : Fiscal Quarter Ended April 29, 2017 July 29, 2017 October 28, 2017 February 3, 2018 (a)(b)(c) (in millions except per share data) Net Sales $ 2,437 $ 2,755 $ 2,618 $ 4,823 Gross Profit 903 1,028 989 2,040 Operating Income 209 301 232 987 Income Before Income Taxes 118 217 135 842 Net Income 94 139 86 664 Net Income Per Basic Share (d) $ 0.33 $ 0.48 $ 0.30 $ 2.36 Net Income Per Diluted Share (d) $ 0.33 $ 0.48 $ 0.30 $ 2.33 ________________ (a) Includes the effect of a pre-tax loss of $45 million ( $29 million net of tax) associated with the early extinguishment of the 2019 Notes, included in other income (loss). (b) Includes the effect of a $92 million tax benefit related to changes in U.S. tax legislation. (c) The Company utilizes the retail calendar for reporting. As such, the results for fiscal 2017 represent the 53-week period ended February 3, 2018 and the fourth quarter consists of a 14-week period. (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 2016 : Fiscal Quarter Ended April 30, July 30, October 29, January 28, (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 (loss). (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. |
Supplemental Guarantor Financ50
Supplemental Guarantor Financial Information Supplemental Guarantor Financial Information (Tables) | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Supplemental Guarantor Financial Statements [Abstract] | |||
Condensed Balance Sheet [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) February 3, 2018 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 1,164 $ 351 $ — $ 1,515 Accounts Receivable, Net — 186 124 — 310 Inventories — 1,095 145 — 1,240 Other — 132 96 — 228 Total Current Assets — 2,577 716 — 3,293 Property and Equipment, Net — 1,984 909 — 2,893 Goodwill — 1,318 30 — 1,348 Trade Names — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 4,912 18,359 2,106 (25,377 ) — Deferred Income Taxes — 10 4 — 14 Other Assets 129 18 654 (611 ) 190 Total Assets $ 5,041 $ 24,677 $ 4,419 $ (25,988 ) $ 8,149 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ 2 $ 349 $ 366 $ — $ 717 Accrued Expenses and Other 101 529 399 — 1,029 Current Debt — — 87 — 87 Income Taxes 6 174 18 — 198 Total Current Liabilities 109 1,052 870 — 2,031 Deferred Income Taxes (2 ) (46 ) 286 — 238 Long-term Debt 5,706 597 1 (597 ) 5,707 Other Long-term Liabilities 3 835 100 (14 ) 924 Total Equity (Deficit) (775 ) 22,239 3,162 (25,377 ) (751 ) Total Liabilities and Equity (Deficit) $ 5,041 $ 24,677 $ 4,419 $ (25,988 ) $ 8,149 | 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 — 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 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 | |
Condensed Income Statement [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) 2017 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 11,931 $ 3,728 $ (3,027 ) $ 12,632 Costs of Goods Sold, Buying and Occupancy — (7,463 ) (2,868 ) 2,658 (7,673 ) Gross Profit — 4,468 860 (369 ) 4,959 General, Administrative and Store Operating Expenses (10 ) (3,063 ) (426 ) 268 (3,231 ) Operating Income (Loss) (10 ) 1,405 434 (101 ) 1,728 Interest Expense (403 ) (99 ) (13 ) 109 (406 ) Other Income (Loss) (46 ) 11 25 — (10 ) Income (Loss) Before Income Taxes (459 ) 1,317 446 8 1,312 Provision (Benefit) for Income Taxes 65 316 (52 ) — 329 Equity in Earnings, Net of Tax 1,507 522 412 (2,441 ) — Net Income (Loss) $ 983 $ 1,523 $ 910 $ (2,433 ) $ 983 | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) 2016 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated 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 (Loss) (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 (Loss) — 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 |
Condensed Comprehensive Income Statement [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) 2017 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Income (Loss) $ 983 $ 1,523 $ 910 $ (2,433 ) $ 983 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — 23 — 23 Unrealized Gain (Loss) on Cash Flow Hedges — — (20 ) — (20 ) Reclassification of Cash Flow Hedges to Earnings — — 7 — 7 Unrealized Gain (Loss) on Marketable Securities — — 2 — 2 Total Other Comprehensive Income (Loss), Net of Tax — — 12 — 12 Total Comprehensive Income (Loss) $ 983 $ 1,523 $ 922 $ (2,433 ) $ 995 | 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 Gain (Loss) on Cash Flow Hedges — — (8 ) — (8 ) Reclassification of Cash Flow Hedges to Earnings — — 7 — 7 Unrealized Gain (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 (Loss) $ 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 (Loss) on Cash Flow Hedges — — 6 — 6 Reclassification of Cash Flow Hedges to Earnings — — 14 — 14 Unrealized Gain (Loss) on Marketable Securities — — 8 — 8 Total Other Comprehensive Income (Loss), Net of Tax — — 5 — 5 Total Comprehensive Income (Loss) $ 1,253 $ 1,527 $ 482 $ (2,004 ) $ 1,258 |
Condensed Cash Flow Statement [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) 2017 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ (462 ) $ 1,414 $ 454 $ — $ 1,406 Investing Activities: Capital Expenditures — (495 ) (212 ) — (707 ) Return of Capital from Easton Investments — — 29 — 29 Purchase of Marketable Securities — — (10 ) — (10 ) Other Investing Activities — (1 ) (9 ) — (10 ) Net Cash Provided by (Used for) Investing Activities — (496 ) (202 ) — (698 ) Financing Activities: Proceeds from Issuance of Long-term Debt, Net of Issuance Costs 495 — — — 495 Payment of Long-term Debt (540 ) — — — (540 ) Borrowings from Foreign Facilities — — 96 — 96 Repayments of Foreign Facilities — — (44 ) — (44 ) Dividends Paid (686 ) — — — (686 ) Repurchases of Common Stock (446 ) — — — (446 ) Tax Payments related to Share-based Awards (32 ) — — — (32 ) Net Financing Activities and Advances to/from Consolidated Affiliates 1,638 (1,313 ) (325 ) — — Proceeds From Exercise of Stock Options 38 — — — 38 Financing Costs (5 ) — — — (5 ) Other Financing Activities — (3 ) — — (3 ) Net Cash Provided by (Used for) Financing Activities 462 (1,316 ) (273 ) — (1,127 ) Effects of Exchange Rate Changes on Cash — — — — — Net Increase (Decrease) in Cash and Cash Equivalents — (398 ) (21 ) — (419 ) Cash and Cash Equivalents, Beginning of Year — 1,562 372 — 1,934 Cash and Cash Equivalents, End of Year $ — $ 1,164 $ 351 $ — $ 1,515 | 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 $ (404 ) $ 1,885 $ 509 $ — $ 1,990 Investing Activities: Capital Expenditures — (705 ) (285 ) — (990 ) Return of Capital from Easton Investments — — 119 — 119 Proceeds from Sale of Assets — — 53 — 53 Proceeds from Sale of Marketable Securities — — 10 — 10 Acquisition, Net of Cash Acquired of $1 — — (33 ) — (33 ) Other Investing Activities — (2 ) 10 — 8 Net Cash Provided by (Used for) Investing Activities — (707 ) (126 ) — (833 ) Financing Activities: Proceeds from Issuance of Long-term Debt, Net of Issuance Costs 692 — — — 692 Payment of Long-term Debt (742 ) — — — (742 ) Borrowings from Foreign Facilities — — 35 — 35 Repayments of Foreign Facilities — — (6 ) — (6 ) Dividends Paid (1,268 ) — — — (1,268 ) Repurchases of Common Stock (435 ) — — — (435 ) Tax Payments related to Share-based Awards (58 ) — — — (58 ) Net Financing Activities and Advances to/from Consolidated Affiliates 2,195 (1,803 ) (392 ) — — Proceeds From Exercise of Stock Options 20 — — — 20 Other Financing Activities — (3 ) — — (3 ) Net Cash Provided by (Used for) Financing Activities 404 (1,806 ) (363 ) — (1,765 ) Effects of Exchange Rate Changes on Cash — — (6 ) — (6 ) Net Increase (Decrease) 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 $ (234 ) $ 1,897 $ 364 $ — $ 2,027 Investing Activities: Capital Expenditures — (506 ) (221 ) — (727 ) Return of Capital from Easton Investments — — 9 — 9 Purchases of Marketable Securities — (50 ) (10 ) — (60 ) 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 Other Investing Activities — — 4 — 4 Net Cash Provided by (Used for) Investing Activities — (505 ) 62 — (443 ) Financing Activities: Proceeds from Issuance of Long-term Debt, Net of Issuance Costs 988 — — — 988 Borrowings from Foreign Facilities — — 7 — 7 Dividends Paid (1,171 ) — — — (1,171 ) Repurchases of Common Stock (483 ) — — — (483 ) Tax Payments related to Share-based Awards (88 ) — — — (88 ) Net Financing Activities and Advances to/from Consolidated Affiliates 955 (662 ) (293 ) — — Proceeds From Exercise of Stock Options 33 — — — 33 Other Financing Activities — (2 ) — — (2 ) Net Cash Provided by (Used for) Financing Activities 234 (664 ) (286 ) — (716 ) Effects of Exchange Rate Changes on Cash — — (1 ) — (1 ) Net Increase (Decrease) 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 |
Description of Business and S51
Description of Business and Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Feb. 03, 2018USD ($) | Jan. 28, 2017USD ($) | Jan. 30, 2016USD ($) | |
Deferred Rent Credit, Noncurrent | $ 210 | $ 191 | |
Maturity of short term investments, maximum, in days | 90 | ||
Outstanding Check Carrying Amount | $ 14 | 5 | |
Catalogue and advertising expense | 383 | 325 | $ 414 |
Unamortized portion of landlord allowances | $ 293 | $ 279 |
Description of Business and S52
Description of Business and Summary of Significant Accounting Policies (Depreciable Life Range of Property Plant and Equipment) (Details) | 12 Months Ended |
Feb. 03, 2018 | |
Software, including software developed for internal use | |
Depreciable Life Range | 3 - 7 years |
Store related assets | |
Depreciable Life Range | 3 - 10 years |
Leasehold improvements | |
Depreciable Life Range | Shorter of lease term or 10 years |
Non-store related building and site improvements | |
Depreciable Life Range | 10 - 15 years |
Other property and equipment | |
Depreciable Life Range | 20 years |
Buildings | |
Depreciable Life Range | 30 years |
New Accounting Pronouncements R
New Accounting Pronouncements Revenue Recognition (Details) $ in Millions | 12 Months Ended |
Feb. 03, 2018USD ($) | |
Adjustments for New Accounting Pronouncement [Member] | Accounting Standards Update 2014-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative Effect on Retained Earnings, Net of Tax | $ 28 |
New Accounting Pronouncements F
New Accounting Pronouncements Financial Instruments (Details) $ in Millions | 12 Months Ended |
Feb. 03, 2018USD ($) | |
Accounting Standards Update 2016-01 [Member] | Adjustments for New Accounting Pronouncement [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative Effect on Retained Earnings, Net of Tax | $ 2 |
New Accounting Pronouncements S
New Accounting Pronouncements Share-based Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Provision for Income Taxes | $ 329 | $ 538 | $ 681 |
Net Cash Provided by (Used in) Operating Activities | 1,406 | 1,990 | 2,027 |
Adjustments for New Accounting Pronouncement [Member] | Accounting Standards Update 2016-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Provision for Income Taxes | $ 13 | ||
Net Cash Provided by (Used in) Operating Activities | $ 100 | $ 158 |
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 | 3 Months Ended | 12 Months Ended | |||
Feb. 03, 2018 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | ||
Treasury Stock, Shares, Retired | 36 | ||||
Weighted-average Common Shares: | |||||
Issued Shares | 308 | 314 | 312 | ||
Treasury Shares | (24) | (27) | (21) | ||
Basic Shares | 284 | 287 | 291 | ||
Effect of Dilutive Options and Restricted Stock | 3 | 4 | 6 | ||
Diluted Shares | 287 | 291 | 297 | ||
Anti-dilutive Options and Awards | [1] | 4 | 2 | 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 ($) | Feb. 03, 2018 |
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 |
Apr. 30, 2016USD ($)position | |
Restructuring Charges | $ 35 |
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 | Feb. 03, 2018 | Jan. 28, 2017 |
Inventory, Net [Abstract] | ||
Finished Goods Merchandise | $ 1,121 | $ 982 |
Raw Materials and Merchandise Components | 119 | 114 |
Total Inventories | $ 1,240 | $ 1,096 |
Property and Equipment, Net (Na
Property and Equipment, Net (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Depreciation expense | $ 571 | $ 518 | $ 457 |
Property, Plant and Equipment, Net | $ 2,893 | 2,741 | |
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 | Feb. 03, 2018 | Jan. 28, 2017 |
Property, Plant and Equipment [Line Items] | ||
Land and Land Improvements | $ 116 | $ 113 |
Buildings and Improvements | 484 | 476 |
Furniture, Fixtures, Software and Equipment | 3,757 | 3,560 |
Leasehold Improvements | 2,251 | 2,044 |
Construction in Progress | 79 | 89 |
Total | 6,687 | 6,282 |
Accumulated Depreciation and Amortization | (3,794) | (3,541) |
Property and Equipment, Net | $ 2,893 | $ 2,741 |
Goodwill, Trade Names and Oth62
Goodwill, Trade Names and Other Intangible Assets, Net (Narrative) (Details) $ in Millions | Feb. 03, 2018USD ($) | Jan. 28, 2017USD ($) | Apr. 18, 2016 |
Goodwill | $ 1,348 | $ 1,348 | |
Victoria's Secret and Bath & Body Works International [Member] | |||
Goodwill | 30 | 30 | |
Victoria's Secret Segment [Member] | |||
Goodwill | $ 690 | $ 690 | |
American Beauty Limited [Member] | |||
Number of Stores | 26 |
Goodwill, Trade Names and Oth63
Goodwill, Trade Names and Other Intangible Assets, Net (Schedule of Goodwill) (Details) $ in Millions | Feb. 03, 2018USD ($) |
Goodwill, beginning balance | $ 1,348 |
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 | 30 |
Goodwill, ending balance | $ 30 |
Goodwill, Trade Names and Oth64
Goodwill, Trade Names and Other Intangible Assets, Net Goodwill, Trade Names and Other Intangible Assets, Net (Intangible Assets - Indefinite Lives) (Details) - USD ($) $ in Millions | Feb. 03, 2018 | Jan. 28, 2017 |
Indefinite-lived Intangible Assets [Line Items] | ||
Trade Names | $ 411 | $ 411 |
Victoria's Secret [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trade Names | 246 | 246 |
Bath & Body Works [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trade Names | $ 165 | $ 165 |
Equity Investments and Other (D
Equity Investments and Other (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jul. 30, 2016 | May 02, 2015 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Return of Capital | $ 29 | $ 119 | $ 9 | ||
Proceeds from Sale of Equity Method Investments | 0 | 0 | 85 | ||
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | 0 | 78 | ||
Gain (Loss) on Equity Method Investment Dividends Or Distributions | 20 | 112 | $ 0 | ||
Third Party Sourcing Business [Member] | |||||
Proceeds from Sale of Equity Method Investments | $ 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] | |||||
Return of Capital | 29 | ||||
Equity method investment carrying value | 81 | $ 79 | |||
Gain (Loss) on Equity Method Investment Dividends Or Distributions | $ 20 | ||||
Easton Town Center Investment [Member] | |||||
Proceeds from Equity Method Investments, Return of Capital and Other | $ 124 | ||||
Gain (Loss) on Equity Method Investment Dividends Or Distributions | 108 | ||||
Gain (Loss) on Equity Method Investment Dividends or Distributions, Net of Tax | $ 70 |
Accrued Expenses and Other (Det
Accrued Expenses and Other (Details) - USD ($) $ in Millions | Feb. 03, 2018 | Jan. 28, 2017 |
Accrued Liabilities, Current [Abstract] | ||
Deferred Revenue, Principally from Gift Card Sales | $ 267 | $ 259 |
Compensation, Payroll Taxes and Benefits | 196 | 191 |
Interest | 101 | 99 |
Taxes, Other than Income | 102 | 82 |
Accrued Rent, Current | 43 | 48 |
Accrued Claims on Self-insured Activities | 37 | 35 |
Returns Reserve | 20 | 21 |
Other | 263 | 262 |
Total Accrued Expenses and Other | $ 1,029 | $ 997 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Provisional Benefit related to the impact of TCJA on deferred remeasurement | $ 159 | |||
U.S. federal statutory tax rate | 35.00% | |||
Pre-tax income (loss),Non-US, arising principally from overseas operations | $ 99 | $ 134 | $ 267 | |
Provision for Income Taxes | 329 | 538 | 681 | |
Deferred Non-US Income Tax Expense (Benefit) | 0 | (3) | 12 | |
Tax Payments related to Share-based Awards | 42 | 70 | ||
Income tax payments | 494 | 469 | 507 | |
Unrecognized Tax Benefits | 67 | 90 | 248 | $ 193 |
Unrecognized tax benefits resulting in reduction of effective income tax rate | 46 | 62 | 217 | |
Unrecognized tax benefits reasonably possible change in the next twelve months | 12 | |||
Interest and penalties related to unrecognized tax benefits of income tax expense | (2) | (3) | $ 7 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 17 | $ 20 | ||
U.S. Federal Statutory Tax Rate after Tax Cuts and Jobs Act | 21.00% | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 33.70% | 35.00% | 35.00% | |
Undistributed foreign earnings and profit subject to TCJA deemed mandatory repatriation | $ 704 | |||
Provisional Charge related to the impact of TCJA on undistributed foreign earnings and profits | 67 | |||
Long Term accrual for Provisional Charge related to the impact of TCJA on undistributed foreign earnings and profits | 61 | |||
Accounting Standards Update 2016-09 [Member] | Adjustments for New Accounting Pronouncement [Member] | ||||
Provision for Income Taxes | $ 13 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Current | |||
U.S. Federal | $ 366 | $ 345 | $ 553 |
U.S. State | 49 | 62 | 96 |
Non-U.S. | 22 | 21 | 21 |
Total | 437 | 428 | 670 |
Deferred | |||
U.S. Federal | (114) | 99 | 17 |
U.S. State | 6 | 8 | 6 |
Non-U.S. | 0 | 3 | (12) |
Total | (108) | 110 | 11 |
Provision for Income Taxes | $ 329 | $ 538 | $ 681 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the Statutory Federal Income Tax Rate and the Effective Tax Rate) (Details) | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Federal Income Tax Rate | 33.70% | 35.00% | 35.00% |
State Income Taxes, Net of Federal Income Tax Effect | 3.60% | 3.40% | 3.40% |
Effective Income Tax Rate Reconciliation Foreign Portion Of Divestiture Of Business | 0.00% | 0.00% | (0.90%) |
Effective Income Tax Rate Reconciliation, Tax Settlement, Percent | (0.90%) | (4.00%) | 0.00% |
Impact of Non-U.S. Operations | (1.50%) | (1.20%) | (1.70%) |
Effective Income Tax Rate Reconciliation, TCJA Deferred Liability Remeasurement, Percent | (12.10%) | 0.00% | 0.00% |
Effective Income Tax Rate Reconciliation, TCJA Deemed Mandatory Repatriation, Percent | 5.10% | 0.00% | 0.00% |
Effective Income Tax Rate Reconciliation, Excess Tax benefit Due to Share-based Compensation Cost, Percent | (1.00%) | 0.00% | 0.00% |
Other Items, Net | (1.80%) | (1.50%) | (0.60%) |
Effective Tax Rate | 25.10% | 31.70% | 35.20% |
Income Taxes (Effect of Tempora
Income Taxes (Effect of Temporary Differences that Cause Deferred Income Taxes) (Details) - USD ($) $ in Millions | Feb. 03, 2018 | Jan. 28, 2017 |
Assets | $ 143 | $ 236 |
Deferred Tax Liabilities, Gross, Noncurrent | (367) | (569) |
Liabilities | 224 | 333 |
Leases [Member] | ||
Assets | 47 | 68 |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Liabilities | (47) | (68) |
Non-qualified Retirement Plan [Member] | ||
Assets | 62 | 96 |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Liabilities | (62) | (96) |
Property and Equipment [Member] | ||
Assets | 0 | 0 |
Deferred Tax Liabilities, Gross, Noncurrent | (266) | (413) |
Liabilities | (266) | (413) |
Goodwill [Member] | ||
Assets | 0 | 0 |
Deferred Tax Liabilities, Gross, Noncurrent | (10) | (15) |
Liabilities | (10) | (15) |
Trade Names and Other Intangibles [Member] | ||
Assets | 0 | 0 |
Deferred Tax Liabilities, Gross, Noncurrent | (91) | (141) |
Liabilities | (91) | (141) |
State Net Operating Loss Carryforwards [Member] | ||
Assets | 14 | 15 |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Liabilities | (14) | (15) |
Non-U.S. Operating Loss Carryforwards [Member] | ||
Assets | 188 | 155 |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Liabilities | (188) | (155) |
Valuation Allowance [Member] | ||
Assets | (212) | 174 |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Liabilities | 212 | 174 |
Other, Net [Member] | ||
Assets | 44 | 76 |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Liabilities | $ (44) | $ (76) |
Income Taxes (Activity Related
Income Taxes (Activity Related to its Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
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 | $ 90 | $ 248 | $ 193 |
Increases in Tax Benefits for Prior Years | 3 | 3 | 8 |
Decreases in Tax Benefits for Prior Years | (22) | (73) | (3) |
Increases in Unrecognized Tax Benefits as a Result of Current Year Activity | 7 | 18 | 54 |
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities | (2) | (98) | 0 |
Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations | (9) | (8) | (4) |
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year | $ 67 | $ 90 | $ 248 |
Long-term Debt (Narrative) (Det
Long-term Debt (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Feb. 03, 2018 | Jul. 30, 2016 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Interest Paid | $ 391 | $ 387 | $ 317 | ||
Proceeds from Debt, Net of Issuance Costs | 495 | 692 | 988 | ||
Repayments of Long-term Debt | 540 | 742 | 0 | ||
Gain (Loss) on Extinguishment of Debt | (45) | $ (36) | $ 0 | ||
Fixed Rate 6.90% Notes Due July 2017 [Member] | |||||
Extinguishment of Debt, Amount | $ 700 | ||||
Repayments of Long-term Debt | 742 | ||||
Gain (Loss) 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 Costs, Gross | $ 8 | ||||
Fixed Rate 8.50% Notes Due June 2019 [Member] | |||||
Extinguishment of Debt, Amount | $ 500 | ||||
Repayments of Long-term Debt | 540 | ||||
Gain (Loss) on Extinguishment of Debt | (45) | ||||
Extinguishment of Debt, Gain (Loss), Net of Tax | (29) | ||||
Fixed Rate 5.25% Notes Due February 2028 [Member] | |||||
Debt Instrument, Face Amount | $ 500 | $ 500 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% | |||
Proceeds from Debt, Net of Issuance Costs | $ 495 | ||||
Debt Issuance Costs, Gross | $ 5 | $ 5 |
Long-term Debt (Schedule of Lon
Long-term Debt (Schedule of Long-term Debt Instruments) (Details) - USD ($) $ in Millions | Feb. 03, 2018 | Jan. 28, 2017 | Jul. 30, 2016 | |
Debt, Long-term and Short-term, Combined Amount | $ 5,794 | $ 5,736 | ||
Debt, Current | 87 | 36 | ||
Total long-term debt, net of current portion | 5,707 | 5,700 | ||
Fixed Rate 6.75% Notes Due July 2036 [Member] | ||||
Principal balance outstanding | $ 700 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | |||
Fixed Rate 5.25% Notes Due February 2028 [Member] | ||||
Principal balance outstanding | $ 500 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | |||
Fixed Rate 8.50% Notes Due June 2019 [Member] | ||||
Interest Rate Fair Value Hedge Derivative at Fair Value, Net | 2 | |||
L Brands, Inc. [Member] | ||||
Debt, Current | $ 0 | 0 | ||
Total long-term debt, net of current portion | 5,706 | 5,700 | ||
With Subsidiary Guarantee [Member] | ||||
Senior unsecured debt with subsidiary guarantee | 5,062 | 5,055 | ||
With Subsidiary Guarantee [Member] | Fixed Rate 6.875% Notes Due November 2035 [Member] | ||||
Notes Payable, Noncurrent | 990 | 989 | ||
With Subsidiary Guarantee [Member] | Fixed Rate 5.625% Notes Due February 2022 [Member] | ||||
Notes Payable, Noncurrent | 994 | 992 | ||
With Subsidiary Guarantee [Member] | Fixed Rate 6.625% Notes Due April 2021 [Member] | ||||
Notes Payable, Noncurrent | 994 | 992 | ||
With Subsidiary Guarantee [Member] | Fixed Rate 6.75% Notes Due July 2036 [Member] | ||||
Notes Payable, Noncurrent | 693 | 692 | ||
With Subsidiary Guarantee [Member] | Fixed Rate 5.625% Notes Due October 2023 [Member] | ||||
Notes Payable, Noncurrent | 497 | 497 | ||
With Subsidiary Guarantee [Member] | Fixed Rate 5.25% Notes Due February 2028 [Member] | ||||
Notes Payable, Noncurrent | 495 | 0 | ||
With Subsidiary Guarantee [Member] | Fixed Rate 8.50% Notes Due June 2019 [Member] | ||||
Notes Payable, Noncurrent | [1] | 0 | 496 | |
With Subsidiary Guarantee [Member] | Fixed Rate 7.00% Notes Due May 2020 [Member] | ||||
Notes Payable, Noncurrent | 398 | 397 | ||
With Subsidiary Guarantee [Member] | Foreign Facilities with Parent Guarantee [Member] | ||||
Long-term Line of Credit, Noncurrent | 1 | 0 | ||
Without Subsidiary Guarantee [Member] | ||||
Debt, Long-term and Short-term, Combined Amount | 732 | 681 | ||
Without Subsidiary Guarantee [Member] | Foreign Facilities with Parent Guarantee [Member] | ||||
Other Borrowings | 87 | 36 | ||
Without Subsidiary Guarantee [Member] | Fixed Rate 6.95% Debentures Due March 2033 [Member] | ||||
Notes Payable, Noncurrent | 348 | 348 | ||
Without Subsidiary Guarantee [Member] | Fixed Rate 7.60% Notes Due July 2037 [Member] | ||||
Notes Payable, Noncurrent | $ 297 | $ 297 | ||
[1] | (a)The balance includes a fair value interest rate hedge adjustment which increased the debt balance by $2 million as of January 28, 2017. |
Long-term Debt (Schedule of Pri
Long-term Debt (Schedule of Principal Payments on Long-term Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Feb. 03, 2018 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
2,017 | $ 87 | $ 87 | ||
2,018 | 0 | 0 | ||
2,019 | 400 | 400 | ||
2,020 | 1,000 | 1,000 | ||
2,021 | 1,001 | 1,001 | ||
Thereafter | 3,350 | 3,350 | ||
Proceeds from Debt, Net of Issuance Costs | 495 | $ 692 | $ 988 | |
Repayments of Long-term Debt | 540 | 742 | 0 | |
L Brands, Inc. [Member] | ||||
Proceeds from Debt, Net of Issuance Costs | 495 | 692 | $ 988 | |
Repayments of Long-term Debt | 540 | $ 742 | ||
Fixed Rate 5.25% Notes Due February 2028 [Member] | ||||
Debt Instrument, Face Amount | 500 | 500 | ||
Debt Issuance Costs, Gross | $ 5 | $ 5 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% | ||
Proceeds from Debt, Net of Issuance Costs | $ 495 | |||
Fixed Rate 8.50% Notes Due June 2019 [Member] | ||||
Extinguishment of Debt, Amount | 500 | |||
Repayments of Long-term Debt | $ 540 |
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 | ||
Feb. 03, 2018USD ($) | Jan. 28, 2017USD ($) | Jan. 30, 2016USD ($) | |
Line of Credit Facility [Line Items] | |||
Borrowings from Revolving Facilities | $ 96 | $ 35 | $ 7 |
Repayments of Lines of Credit | (44) | $ (6) | $ 0 |
Revolving Credit Facility [Member] | Revolving Credit Expiring May 2022 [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 | 0.25% | ||
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 5 | ||
Line of Credit Facility, Commitment Fee Percentage | 1.50% | ||
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] | |||
Letters of Credit Outstanding, Amount | 9 | ||
With Subsidiary Guarantee [Member] | Foreign Facilities with Parent Guarantee [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 100 | ||
Borrowings from Revolving Facilities | 1 | ||
Without Subsidiary Guarantee [Member] | Foreign Facilities with Parent Guarantee [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 100 | ||
Borrowings from Revolving Facilities | 95 | ||
Repayments of Lines of Credit | (44) | ||
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 97 |
Derivative Financial Instrument
Derivative Financial Instruments Derivative Instruments (Foreign Exchange Contracts - Cash Flow Hedging Disclosure) (Details) $ in Millions, $ in Millions | 12 Months Ended | ||
Feb. 03, 2018USD ($) | Jan. 28, 2017USD ($) | Feb. 03, 2018CAD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | $ (21) | $ (8) | |
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) | (1) | |
Other Income [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 8 | 8 | |
Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Notional Amount | $ 217 | $ 360 | |
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 | 8 | ||
Cash Flow Hedging [Member] | Currency Swap [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Notional Amount | $ 170 | ||
Gain (Loss) on Foreign Currency Cash Flow Hedge Ineffectiveness | $ 0 |
Derivative Financial Instrume77
Derivative Financial Instruments Fair Value Derivatives, Balance Sheet Location, by Derivative Contract Type (Details) - USD ($) $ in Millions | Feb. 03, 2018 | Jan. 28, 2017 |
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ 9 | $ 1 |
Interest Rate Fair Value Hedge Asset at Fair Value | 2 | |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 18 | |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0 | 18 |
Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 8 | 1 |
Other Long-term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ 1 | $ 0 |
Derivative Financial Instrume78
Derivative Financial Instruments Foreign Currency Derivatives Notional Amount Outstanding (Details) - USD ($) $ in Millions | Feb. 03, 2018 | Jan. 28, 2017 |
Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 217 | $ 360 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Value and Fair Value of Long Term Debt) (Detail) - USD ($) $ in Millions | Feb. 03, 2018 | Jan. 28, 2017 | |
Fair Value Measurements [Abstract] | |||
Long-term Debt Principal Value | $ 5,750 | $ 5,750 | |
Fair Value | [1] | $ 5,943 | $ 6,030 |
[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 | 3 Months Ended | ||
Apr. 30, 2016 | Feb. 03, 2018 | Jan. 28, 2017 | |
Proceeds from Sale of Available-for-sale Securities, Equity | $ 10 | ||
Assets: | |||
Cash and Cash Equivalents | $ 1,515 | $ 1,934 | |
Investments, Fair Value Disclosure | 17 | 5 | |
Interest Rate Fair Value Hedge Asset at Fair Value | 2 | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 18 | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 9 | 1 | |
Fair Value, Inputs, Level 1 | |||
Assets: | |||
Cash and Cash Equivalents | 1,515 | 1,934 | |
Investments, Fair Value Disclosure | 17 | 5 | |
Interest Rate Fair Value Hedge Asset at Fair Value | 0 | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0 | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 0 | 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 | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 18 | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 9 | 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 | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0 | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ 0 | $ 0 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Securities Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Feb. 03, 2018 | Apr. 30, 2016 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Marketable Securities, Equity Securities, Current | $ 10 | $ 10 | $ 0 | $ 60 | |
Proceeds from Sale of Available-for-sale Securities, Equity | $ 10 | ||||
Available-for-sale Securities, Gross Realized Gains | 0 | 4 | 0 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 3 | 0 | 3 | $ 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 | 4 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | $ 0 | $ 3 |
Comprehensive Income (Loss) (De
Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | $ 4 | $ (35) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 7 | 3 | |
Other Comprehensive Income (Loss), Tax | 1 | 4 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Accumulated Other Comprehensive Income Beginning Balance | 12 | 40 | |
Total Other Comprehensive Income (Loss), Net of Tax | 12 | (28) | $ 5 |
Accumulated Other Comprehensive Income Ending Balance | 24 | 12 | 40 |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 23 | (19) | |
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 | 9 | 28 | |
Total Other Comprehensive Income (Loss), Net of Tax | 23 | (19) | |
Accumulated Other Comprehensive Income Ending Balance | 32 | 9 | 28 |
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 | (21) | (8) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 7 | 7 | |
Other Comprehensive Income (Loss), Tax | 1 | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Accumulated Other Comprehensive Income Beginning Balance | 3 | 4 | |
Total Other Comprehensive Income (Loss), Net of Tax | (13) | (1) | |
Accumulated Other Comprehensive Income Ending Balance | (10) | 3 | 4 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 2 | (8) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | (4) | |
Other Comprehensive Income (Loss), Tax | 0 | 4 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Accumulated Other Comprehensive Income Beginning Balance | 0 | 8 | |
Total Other Comprehensive Income (Loss), Net of Tax | 2 | (8) | |
Accumulated Other Comprehensive Income Ending Balance | $ 2 | $ 0 | $ 8 |
Comprehensive Income Reclassifi
Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2016 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Reclassification of Cash Flow Hedges to Earnings | $ 7 | $ 7 | $ 14 | |
Available-for-sale Securities, Gross Realized Gains | 0 | (4) | 0 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | $ (3) | 0 | (3) | $ 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 | ||
Reclassification of Cash Flow Hedges to Earnings | 7 | 7 | ||
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 | (4) | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | 0 | 1 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | (3) | ||
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 | 8 | ||
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) | $ (1) |
Leases (Leases Rent Expenses) (
Leases (Leases Rent Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Leases [Abstract] | |||
Fixed minimum, store rent | $ 642 | $ 607 | $ 535 |
Contingent, store rent | 67 | 71 | 73 |
Total store rent | 709 | 678 | 608 |
Office, equipment and other | 94 | 87 | 77 |
Gross rent expense | 803 | 765 | 685 |
Sublease rental income | (2) | (2) | (2) |
Total rent expense | $ 801 | $ 763 | $ 683 |
Leases (Minimum Rent Commitment
Leases (Minimum Rent Commitments Operating Leases) (Details) $ in Millions | Feb. 03, 2018USD ($) | [1] |
Leases [Abstract] | ||
2,017 | $ 730 | |
2,018 | 695 | |
2,019 | 663 | |
2,020 | 617 | |
2,021 | 543 | |
Thereafter | $ 2,080 | |
[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 | Feb. 03, 2018 | Jan. 28, 2017 |
Residual Value Guarantee of Leased Assets | $ 104 | |
Lease guarantees, estimated fair value | 3 | $ 1 |
Property Lease Guarantee [Member] | ||
Lease guarantees remaining after disposition of certain businesses | $ 10 |
Retirement Benefits (Details)
Retirement Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost | $ 68 | $ 67 | $ 64 |
Nonqualified Retirement Plan Benefit Obligation, Balance Beginning of Year | 258 | 274 | |
Non-Qualified Plan, Contributions by Plan Participants | 9 | 14 | |
Non-Qualified Plan, Contributions by Employer | 9 | 14 | |
Non-Qualified Plan, Interest Cost | 11 | 12 | |
Non-Qualified Plan, Benefits Paid | (18) | (56) | |
Nonqualified Retirement Plan Benefit Obligation, Balance End of Year | 269 | 258 | 274 |
Non-Qualified Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Expense related to the Non-Qualified Plan | $ 20 | $ 26 | $ 30 |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Feb. 03, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Apr. 30, 2016 | Aug. 01, 2015 | May 02, 2015 | |
Treasury Stock, Shares, Retired | 36 | |||||
Treasury Stock, Retired, Cost Method, Amount | $ 0 | |||||
September 2017 Repurchase Program [Member] | ||||||
Stock Repurchase Program, Authorized Amount | $ 250 | |||||
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 | |||||
Retained Earnings (Accumulated Deficit) [Member] | ||||||
Treasury Stock, Retired, Cost Method, Amount | (1,936) | |||||
Paid-in Capital [Member] | ||||||
Treasury Stock, Retired, Cost Method, Amount | (82) | |||||
Common Stock [Member] | ||||||
Treasury Stock, Retired, Cost Method, Amount | (18) | |||||
Treasury Stock, at Average Cost [Member] | ||||||
Treasury Stock, Retired, Cost Method, Amount | $ 2,036 |
Shareholders' Equity (Deficit89
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. 22, 2018 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | Mar. 08, 2018 | Oct. 28, 2017 | Apr. 29, 2017 | Apr. 30, 2016 | Aug. 01, 2015 | May 02, 2015 | |
Treasury Stock, Shares, Acquired | 9,409 | 5,719 | 5,468 | |||||||
Repurchase of Common Stock | $ 445 | $ 438 | $ 483 | |||||||
September 2017 Repurchase Program [Member] | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 250 | |||||||||
Treasury Stock, Shares, Acquired | 3,858 | |||||||||
Repurchase of Common Stock | $ 202 | |||||||||
Average Stock Price of Shares Repurchased within Program | $ 52.37 | |||||||||
Share repurchase reflected in Accounts payable | $ 2 | |||||||||
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 | |||||||||
February 2017 Repurchase Program [Member] [Member] | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 250 | |||||||||
Treasury Stock, Shares, Acquired | 5,500 | |||||||||
Repurchase of Common Stock | $ 240 | |||||||||
Average Stock Price of Shares Repurchased within Program | $ 43.57 | |||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 10 | |||||||||
February 2016 Repurchase Program [Member] | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 500 | |||||||||
Treasury Stock, Shares, Acquired | 51 | 5,719 | ||||||||
Repurchase of Common Stock | $ 3 | $ 438 | ||||||||
Average Stock Price of Shares Repurchased within Program | $ 76.47 | |||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 59 | |||||||||
Share repurchase reflected in Accounts payable | $ 3 | |||||||||
November 2012 Repurchase Program [Member] | ||||||||||
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 | 800 | |||||||||
Repurchase of Common Stock | $ 35 | |||||||||
Subsequent Event [Member] | September 2017 Repurchase Program [Member] | ||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 23 | |||||||||
Subsequent Event [Member] | March 2018 Repurchase Program [Member] | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 250 |
Shareholders' Equity (Deficit90
Shareholders' Equity (Deficit) (Dividends Paid) (Details) - USD ($) $ / shares in Units, $ in Millions | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Mar. 22, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 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 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 2.40 | $ 2.40 | $ 2 | |
Special Dividend To Common Stockholders Per Share Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2 | 0 | 0 | 0 | 2 | 0 | 2 | 2 | |
Total Dividends Per Share Cash Paid | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 2.60 | $ 0.50 | $ 0.50 | $ 0.50 | $ 2.50 | $ 2.40 | $ 4.40 | $ 4 | |
Payments of Dividends | $ 170 | $ 172 | $ 172 | $ 172 | $ 172 | $ 173 | $ 173 | $ 750 | $ 145 | $ 146 | $ 146 | $ 734 | $ 686 | $ 1,268 | $ 1,171 | |
Common Stock, Dividends, Per Share, Declared | $ 2.40 | $ 4.40 | $ 4 | |||||||||||||
Subsequent Event [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 | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Options, restricted and unrestricted shares authorized | 160 | ||
Options and shares available for grant | 12 | ||
Cash received from stock options exercised | $ 38 | $ 20 | $ 33 |
Tax Benefit associated with share based compensation | 23 | 32 | 33 |
Stock Options [Member] | |||
Total intrinsic value of options exercised | 44 | 30 | 63 |
Total fair value at grant date of option awards vested | 10 | $ 10 | $ 11 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 14 | ||
Weighted average fair value of stock options granted | $ 5.96 | $ 11.72 | $ 15.27 |
Cash received from stock options exercised | $ 38 | $ 20 | $ 33 |
Total unrecognized compensation cost, weighted-average period of recognition, years | 2 years 201 days | ||
Tax benefits realized from tax deductions | $ 16 | 9 | 20 |
Restricted Stock [Member] | |||
Total intrinsic value of restricted stock vested | 86 | 140 | 217 |
Total fair value at grant date of awards vested | 87 | 68 | 80 |
Total unrecognized compensation cost, net of estimated forfeitures | $ 134 | ||
Total unrecognized compensation cost, weighted-average period of recognition, years | 2 years 6 months 19 days | ||
Tax benefits realized from tax deductions | $ 32 | $ 61 | $ 82 |
Share-based Compensation (Stock
Share-based Compensation (Stock Option Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Feb. 03, 2018USD ($)$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding as of Beginning of Period, Number of Shares | shares | 5,439 | |
Granted, Number of Shares | shares | 1,163 | |
Exercised, Number of Shares | shares | (1,845) | |
Cancelled, Number of Shares | shares | (285) | |
Outstanding as of End of Period, Number of Shares | shares | 4,472 | |
Vested and Expected to Vest as of End of Period, Number of Shares | shares | 4,316 | [1] |
Options Exercisable as of End of Period, Number of Shares | shares | 2,202 | |
Outstanding as of Beginning of Period, Weighted Average Option Price Per Share | $ / shares | $ 47.17 | |
Granted, Weighted Average Option Price Per Share | $ / shares | 47.12 | |
Exercised, Weighted Average Option Price Per Share | $ / shares | 20.70 | |
Cancelled, Weighted Average Option Price Per Share | $ / shares | 63.62 | |
Outstanding as of End of Period, Weighted Average Option Price Per Share | $ / shares | 57.03 | |
Vested and Expected to Vest as of End of Period, Weighted Average Option Price Per Share | $ / shares | 57.03 | [1] |
Options Exercisable as of End of Period, Weighted Average Options Price Per Share | $ / shares | $ 50.05 | |
Outstanding as of End of Period, Weighted Average Remaining Contractual Life | 6 years 193 days | |
Vested and Expected to Vest as of End of Period, Weighted Average Remaining Contractual Life | 6 years 161 days | [1] |
Options Exercisable as of End of Period, Weighted Average Remaining Contractual Life | 4 years 263 days | |
Outstanding as of End of Support, Aggregate Intrinsic Value | $ | $ 18,313 | |
Vested and Expected to Vest as of End of Period, Aggregate Intrinsic Value | $ | 18,265 | [1] |
Options Exercisable as of End of Period, Aggregate Intrinsic Value | $ | $ 17,489 | |
[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 | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Share-based Compensation [Abstract] | |||
Expected Volatility | 28.00% | 25.00% | 26.00% |
Risk-free Interest Rate | 1.50% | 1.10% | 1.10% |
Dividend Yield | 5.10% | 3.30% | 2.70% |
Expected Life (in years) | 2 years 361 days | 4 years 1 month 16 days | 4 years 5 months 24 days |
Share-based Compensation (Restr
Share-based Compensation (Restricted Stock Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
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 | 5,292 | ||
Granted, Number of Shares | 2,571 | ||
Vested, Number of Shares | (1,800) | ||
Cancelled, Number of Shares | (364) | ||
Unvested as of End of Period, Number of Shares | 5,699 | 5,292 | |
Unvested as of Beginning of Period, Weighted Average Grant Date Fair Value | $ 64.14 | ||
Vested, Weighted Average Grant Date Fair Value | 48.48 | ||
Cancelled, Weighted Average Grant Date Fair Value | 62.09 | ||
Unvested as of End of Period, Weighted Average Grant Date Fair Value | 57.97 | $ 64.14 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Granted, Weighted Average Grant Date Fair Value | $ 39.21 | $ 75.09 | $ 85.61 |
Share-based Compensation (Share
Share-based Compensation (Share-Based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Share-based Compensation Expense | $ 102 | $ 96 | $ 97 |
Costs of Goods Sold, Buying and Occupancy [Member] | |||
Share-based Compensation Expense | 32 | 31 | 27 |
General, Administrative and Store Operating Expenses [Member] | |||
Share-based Compensation Expense | $ 70 | $ 65 | $ 70 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Feb. 03, 2018USD ($) | Oct. 28, 2017USD ($) | Jul. 29, 2017USD ($) | Apr. 29, 2017USD ($) | Jan. 28, 2017USD ($) | Oct. 29, 2016USD ($) | Jul. 30, 2016USD ($) | Apr. 30, 2016USD ($) | Feb. 03, 2018USD ($)Reportable_Segments | Jan. 28, 2017USD ($) | Jan. 30, 2016USD ($) | |||
Number Of Reportable Segments (in reportable segments) | Reportable_Segments | 3 | ||||||||||||
Net Sales | $ 4,823 | $ 2,618 | $ 2,755 | $ 2,437 | $ 4,489 | $ 2,581 | $ 2,890 | $ 2,614 | $ 12,632 | $ 12,574 | $ 12,154 | ||
Depreciation and Amortization | 524 | 472 | 415 | ||||||||||
Operating Income (Loss) | 987 | $ 232 | $ 301 | $ 209 | 988 | $ 284 | $ 408 | $ 323 | 1,728 | 2,003 | [1] | 2,192 | [1] |
Total Assets | 8,149 | 8,170 | 8,149 | 8,170 | 8,493 | ||||||||
Capital Expenditures | 707 | 990 | 727 | ||||||||||
Victoria's Secret Segment [Member] | |||||||||||||
Net Sales | 7,387 | 7,781 | 7,672 | ||||||||||
Depreciation and Amortization | 279 | 252 | 218 | ||||||||||
Operating Income (Loss) | 932 | 1,173 | 1,391 | ||||||||||
Total Assets | 3,369 | 3,285 | 3,369 | 3,285 | 3,163 | ||||||||
Capital Expenditures | 270 | 460 | 411 | ||||||||||
Bath & Body Works Segment [Member] | |||||||||||||
Net Sales | 4,148 | 3,852 | 3,587 | ||||||||||
Depreciation and Amortization | 101 | 91 | 70 | ||||||||||
Operating Income (Loss) | 953 | 907 | 858 | ||||||||||
Total Assets | 1,753 | 1,632 | 1,753 | 1,632 | 1,556 | ||||||||
Capital Expenditures | 232 | 250 | 166 | ||||||||||
Victoria's Secret and Bath & Body Works International [Member] | |||||||||||||
Net Sales | 502 | 423 | 385 | ||||||||||
Depreciation and Amortization | 30 | 17 | 16 | ||||||||||
Operating Income (Loss) | 5 | 40 | 88 | ||||||||||
Total Assets | 800 | 593 | 800 | 593 | 436 | ||||||||
Capital Expenditures | 111 | 68 | 33 | ||||||||||
Other Operating Segment | |||||||||||||
Net Sales | 595 | 518 | 510 | ||||||||||
Depreciation and Amortization | 114 | 112 | 111 | ||||||||||
Operating Income (Loss) | (162) | (117) | [1] | (145) | [1] | ||||||||
Total Assets | $ 2,227 | $ 2,660 | 2,227 | 2,660 | 3,338 | ||||||||
Capital Expenditures | $ 94 | $ 212 | $ 117 | ||||||||||
[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 | |||||||||
Feb. 03, 2018USD ($) | Oct. 28, 2017USD ($) | Jul. 29, 2017USD ($) | Apr. 29, 2017USD ($) | Jan. 28, 2017USD ($) | Oct. 29, 2016USD ($) | Jul. 30, 2016USD ($) | Apr. 30, 2016USD ($) | Feb. 03, 2018USD ($)Reportable_Segments | Jan. 28, 2017USD ($) | Jan. 30, 2016USD ($) | |
Revenue, Net | $ 4,823 | $ 2,618 | $ 2,755 | $ 2,437 | $ 4,489 | $ 2,581 | $ 2,890 | $ 2,614 | $ 12,632 | $ 12,574 | $ 12,154 |
Number Of Reportable Segments (in reportable segments) | Reportable_Segments | 3 | ||||||||||
International [Member] | |||||||||||
Revenue, Net | $ 1,553 | 1,408 | $ 1,314 | ||||||||
Internationally based Long-lived Assets | $ 451 | $ 357 | $ 451 | $ 357 |
Quarterly Financial Data (Una98
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |||
Quarterly Financial Data [Abstract] | |||||||||||||
Net Sales | $ 4,823 | $ 2,618 | $ 2,755 | $ 2,437 | $ 4,489 | $ 2,581 | $ 2,890 | $ 2,614 | $ 12,632 | $ 12,574 | $ 12,154 | ||
Gross Profit | 2,040 | 989 | 1,028 | 903 | 1,944 | 1,025 | 1,113 | 1,043 | 4,959 | 5,125 | 5,204 | ||
Operating Income | 987 | 232 | 301 | 209 | 988 | 284 | 408 | 323 | 1,728 | 2,003 | [1] | 2,192 | [1] |
Income Before Income Taxes | 842 | 135 | 217 | 118 | 893 | 190 | 380 | 233 | 1,312 | 1,696 | 1,934 | ||
Net Income (Loss) Attributable to Parent | $ 664 | $ 86 | $ 139 | $ 94 | $ 632 | $ 122 | $ 252 | $ 152 | $ 983 | $ 1,158 | $ 1,253 | ||
Net Income Per Basic Share | $ 2.36 | $ 0.30 | $ 0.48 | $ 0.33 | $ 2.21 | $ 0.43 | $ 0.88 | $ 0.53 | $ 3.46 | $ 4.04 | $ 4.30 | ||
Net Income Per Diluted Share | $ 2.33 | $ 0.30 | $ 0.48 | $ 0.33 | $ 2.18 | $ 0.42 | $ 0.87 | $ 0.52 | $ 3.42 | $ 3.98 | $ 4.22 | ||
[1] | Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. |
Quarterly Financial Data (Una99
Quarterly Financial Data (Unaudited) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Feb. 03, 2018 | Jan. 28, 2017 | Jul. 30, 2016 | Apr. 30, 2016 | May 02, 2015 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Restructuring Charges | $ 35 | |||||||
Restructuring Charges, Net of Tax | $ 21 | |||||||
Gain (Loss) on Equity Method Investment Dividends Or Distributions | $ 20 | $ 112 | $ 0 | |||||
Gain (Loss) on Extinguishment of Debt | (45) | (36) | 0 | |||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 42 | |||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 0 | $ 0 | $ 78 | |||||
Unusual or Infrequent Item, or Both, Tax Effect | $ 92 | |||||||
Easton Town Center Investment [Member] | ||||||||
Gain (Loss) on Equity Method Investment Dividends Or Distributions | $ 108 | |||||||
Gain (Loss) on Equity Method Investment Dividends or Distributions, Net of Tax | 70 | |||||||
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 8.50% Notes Due June 2019 [Member] | ||||||||
Gain (Loss) on Extinguishment of Debt | (45) | |||||||
Extinguishment of Debt, Gain (Loss), Net of Tax | $ (29) | |||||||
Fixed Rate 6.90% Notes Due July 2017 [Member] | ||||||||
Gain (Loss) 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. 22, 2018 | May 02, 2015 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | Mar. 08, 2018 | Oct. 28, 2017 | Apr. 29, 2017 | Apr. 30, 2016 | Aug. 01, 2015 | |
Subsequent Event [Line Items] | ||||||||||
Treasury Stock, Shares, Acquired | 9,409 | 5,719 | 5,468 | |||||||
Repurchase of Common Stock | $ 445 | $ 438 | $ 483 | |||||||
Common Stock, Dividends, Per Share, Declared | $ 2.40 | $ 4.40 | $ 4 | |||||||
Proceeds from Sale of Equity Method Investments | $ 0 | $ 0 | $ 85 | |||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 0 | $ 0 | $ 78 | |||||||
Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Treasury Stock, Shares, Acquired | 800 | |||||||||
Repurchase of Common Stock | $ 35 | |||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.60 | |||||||||
March 2018 Repurchase Program [Member] | Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 250 | |||||||||
February 2016 Repurchase Program [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 500 | |||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 59 | |||||||||
Treasury Stock, Shares, Acquired | 51 | 5,719 | ||||||||
Repurchase of Common Stock | $ 3 | $ 438 | ||||||||
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, Remaining Authorized Repurchase Amount | $ 91 | |||||||||
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 | |||||||||
September 2017 Repurchase Program [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 250 | |||||||||
Treasury Stock, Shares, Acquired | 3,858 | |||||||||
Repurchase of Common Stock | $ 202 | |||||||||
September 2017 Repurchase Program [Member] | Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 23 | |||||||||
Third Party Sourcing Business [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Proceeds from Sale of Equity Method Investments | 85 | |||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 78 |
Supplemental Guarantor Finan101
Supplemental Guarantor Financial Information (Narrative) (Details) | 12 Months Ended |
Feb. 03, 2018 | |
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 Finan102
Supplemental Guarantor Financial Information (Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Millions | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 |
Current Assets: | |||||
Cash and Cash Equivalents | $ 1,515 | $ 1,934 | $ 2,548 | $ 1,681 | $ 1,681 |
Accounts Receivable, Net | 310 | 294 | |||
Inventories | 1,240 | 1,096 | |||
Other | 228 | 141 | |||
Total Current Assets | 3,293 | 3,465 | |||
Property and Equipment, Net | 2,893 | 2,741 | |||
Goodwill | 1,348 | 1,348 | |||
Trade Names | 411 | 411 | |||
Net Investments in and Advances to/from Consolidated Affiliates | 0 | 0 | |||
Deferred Tax Assets, Net, Noncurrent | 14 | 19 | |||
Other Assets | 190 | 186 | |||
Total Assets | 8,149 | 8,170 | 8,493 | ||
Current Liabilities: | |||||
Accounts Payable | 717 | 683 | |||
Accrued Expenses and Other | 1,029 | 997 | |||
Debt, Current | 87 | 36 | |||
Income Taxes | 198 | 298 | |||
Total Current Liabilities | 2,031 | 2,014 | |||
Deferred Income Taxes | 238 | 352 | |||
Long-term Debt | 5,707 | 5,700 | |||
Other Long-term Liabilities | 924 | 831 | |||
Total Equity (Deficit) | (751) | (727) | (258) | $ 19 | |
Total Liabilities and Equity (Deficit) | 8,149 | 8,170 | |||
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 | 0 | 0 | |||
Net Investments in and Advances to/from Consolidated Affiliates | (25,377) | (22,097) | |||
Deferred Tax Assets, Net, Noncurrent | 0 | 0 | |||
Other Assets | (611) | (611) | |||
Total Assets | (25,988) | (22,708) | |||
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) | (25,377) | (22,097) | |||
Total Liabilities and Equity (Deficit) | (25,988) | (22,708) | |||
L Brands, Inc. [Member] | |||||
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 | 0 | 0 | |||
Net Investments in and Advances to/from Consolidated Affiliates | 4,912 | 4,923 | |||
Deferred Tax Assets, Net, Noncurrent | 0 | 0 | |||
Other Assets | 129 | 130 | |||
Total Assets | 5,041 | 5,053 | |||
Current Liabilities: | |||||
Accounts Payable | 2 | 3 | |||
Accrued Expenses and Other | 101 | 100 | |||
Debt, Current | 0 | 0 | |||
Income Taxes | 6 | (11) | |||
Total Current Liabilities | 109 | 92 | |||
Deferred Income Taxes | (2) | (3) | |||
Long-term Debt | 5,706 | 5,700 | |||
Other Long-term Liabilities | 3 | 3 | |||
Total Equity (Deficit) | (775) | (739) | |||
Total Liabilities and Equity (Deficit) | 5,041 | 5,053 | |||
Guarantor Subsidiaries | |||||
Current Assets: | |||||
Cash and Cash Equivalents | 1,164 | 1,562 | 2,190 | 1,462 | |
Accounts Receivable, Net | 186 | 228 | |||
Inventories | 1,095 | 976 | |||
Other | 132 | 53 | |||
Total Current Assets | 2,577 | 2,819 | |||
Property and Equipment, Net | 1,984 | 1,897 | |||
Goodwill | 1,318 | 1,318 | |||
Trade Names | 411 | 411 | |||
Net Investments in and Advances to/from Consolidated Affiliates | 18,359 | 15,824 | |||
Deferred Tax Assets, Net, Noncurrent | 10 | 10 | |||
Other Assets | 18 | 28 | |||
Total Assets | 24,677 | 22,307 | |||
Current Liabilities: | |||||
Accounts Payable | 349 | 326 | |||
Accrued Expenses and Other | 529 | 526 | |||
Debt, Current | 0 | 0 | |||
Income Taxes | 174 | 221 | |||
Total Current Liabilities | 1,052 | 1,073 | |||
Deferred Income Taxes | (46) | (93) | |||
Long-term Debt | 597 | 597 | |||
Other Long-term Liabilities | 835 | 761 | |||
Total Equity (Deficit) | 22,239 | 19,969 | |||
Total Liabilities and Equity (Deficit) | 24,677 | 22,307 | |||
Non-Guarantor Subsidiaries | |||||
Current Assets: | |||||
Cash and Cash Equivalents | 351 | 372 | $ 358 | $ 219 | |
Accounts Receivable, Net | 124 | 66 | |||
Inventories | 145 | 120 | |||
Other | 96 | 88 | |||
Total Current Assets | 716 | 646 | |||
Property and Equipment, Net | 909 | 844 | |||
Goodwill | 30 | 30 | |||
Trade Names | 0 | 0 | |||
Net Investments in and Advances to/from Consolidated Affiliates | 2,106 | 1,350 | |||
Deferred Tax Assets, Net, Noncurrent | 4 | 9 | |||
Other Assets | 654 | 639 | |||
Total Assets | 4,419 | 3,518 | |||
Current Liabilities: | |||||
Accounts Payable | 366 | 354 | |||
Accrued Expenses and Other | 399 | 371 | |||
Debt, Current | 87 | 36 | |||
Income Taxes | 18 | 88 | |||
Total Current Liabilities | 870 | 849 | |||
Deferred Income Taxes | 286 | 448 | |||
Long-term Debt | 1 | 0 | |||
Other Long-term Liabilities | 100 | 81 | |||
Total Equity (Deficit) | 3,162 | 2,140 | |||
Total Liabilities and Equity (Deficit) | $ 4,419 | $ 3,518 |
Supplemental Guarantor Finan103
Supplemental Guarantor Financial Information (Condensed Consolidating Statements of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |||
Net Sales | $ 4,823 | $ 2,618 | $ 2,755 | $ 2,437 | $ 4,489 | $ 2,581 | $ 2,890 | $ 2,614 | $ 12,632 | $ 12,574 | $ 12,154 | ||
Costs of Goods Sold, Buying and Occupancy | (7,673) | (7,449) | (6,950) | ||||||||||
Gross Profit | 2,040 | 989 | 1,028 | 903 | 1,944 | 1,025 | 1,113 | 1,043 | 4,959 | 5,125 | 5,204 | ||
General, Administrative and Store Operating Expenses | (3,231) | (3,122) | (3,012) | ||||||||||
Operating Income (Loss) | 987 | 232 | 301 | 209 | 988 | 284 | 408 | 323 | 1,728 | 2,003 | [1] | 2,192 | [1] |
Interest Expense | (406) | (394) | (334) | ||||||||||
Other Income (Loss) | (10) | 87 | 76 | ||||||||||
Income Before Income Taxes | 842 | 135 | 217 | 118 | 893 | 190 | 380 | 233 | 1,312 | 1,696 | 1,934 | ||
Provision (Benefit) for Income Taxes | 329 | 538 | 681 | ||||||||||
Equity In Earnings Of Consolidated Affiliates | 0 | 0 | 0 | ||||||||||
Net Income (Loss) Attributable to Parent | $ 664 | $ 86 | $ 139 | $ 94 | $ 632 | $ 122 | $ 252 | 152 | 983 | 1,158 | 1,253 | ||
Reclassification of Cash Flow Hedges to Earnings | 7 | 7 | 14 | ||||||||||
Foreign Currency Translation | 23 | (19) | (23) | ||||||||||
Unrealized Gain (Loss) on Cash Flow Hedges | (20) | (8) | 6 | ||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 2 | (5) | 8 | ||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | $ (3) | 0 | (3) | 0 | |||||||||
Total Other Comprehensive Income (Loss), Net of Tax | 12 | (28) | 5 | ||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 995 | 1,130 | 1,258 | ||||||||||
Eliminations | |||||||||||||
Net Sales | (3,027) | (2,918) | (2,891) | ||||||||||
Costs of Goods Sold, Buying and Occupancy | 2,658 | 2,682 | 2,751 | ||||||||||
Gross Profit | (369) | (236) | (140) | ||||||||||
General, Administrative and Store Operating Expenses | 268 | 186 | 128 | ||||||||||
Operating Income (Loss) | (101) | (50) | (12) | ||||||||||
Interest Expense | 109 | 71 | 47 | ||||||||||
Other Income (Loss) | 0 | 0 | 0 | ||||||||||
Income Before Income Taxes | 8 | 21 | 35 | ||||||||||
Provision (Benefit) for Income Taxes | 0 | 0 | 0 | ||||||||||
Equity In Earnings Of Consolidated Affiliates | (2,441) | (2,000) | (2,039) | ||||||||||
Net Income (Loss) Attributable to Parent | (2,433) | (1,979) | (2,004) | ||||||||||
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 | 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 | (2,433) | (1,979) | (2,004) | ||||||||||
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 | (10) | (8) | (12) | ||||||||||
Operating Income (Loss) | (10) | (8) | (12) | ||||||||||
Interest Expense | (403) | (394) | (334) | ||||||||||
Other Income (Loss) | (46) | (35) | 0 | ||||||||||
Income Before Income Taxes | (459) | (437) | (346) | ||||||||||
Provision (Benefit) for Income Taxes | 65 | (10) | (2) | ||||||||||
Equity In Earnings Of Consolidated Affiliates | 1,507 | 1,585 | 1,597 | ||||||||||
Net Income (Loss) Attributable to Parent | 983 | 1,158 | 1,253 | ||||||||||
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 | 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 | 983 | 1,158 | 1,253 | ||||||||||
Guarantor Subsidiaries | |||||||||||||
Net Sales | 11,931 | 11,959 | 11,475 | ||||||||||
Costs of Goods Sold, Buying and Occupancy | (7,463) | (7,277) | (6,843) | ||||||||||
Gross Profit | 4,468 | 4,682 | 4,632 | ||||||||||
General, Administrative and Store Operating Expenses | (3,063) | (2,843) | (2,688) | ||||||||||
Operating Income (Loss) | 1,405 | 1,839 | 1,944 | ||||||||||
Interest Expense | (99) | (60) | (38) | ||||||||||
Other Income (Loss) | 11 | 3 | 5 | ||||||||||
Income Before Income Taxes | 1,317 | 1,782 | 1,911 | ||||||||||
Provision (Benefit) for Income Taxes | 316 | 432 | 478 | ||||||||||
Equity In Earnings Of Consolidated Affiliates | 522 | 39 | 94 | ||||||||||
Net Income (Loss) Attributable to Parent | 1,523 | 1,389 | 1,527 | ||||||||||
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 | 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 | 1,523 | 1,389 | 1,527 | ||||||||||
Non-Guarantor Subsidiaries | |||||||||||||
Net Sales | 3,728 | 3,533 | 3,570 | ||||||||||
Costs of Goods Sold, Buying and Occupancy | (2,868) | (2,854) | (2,858) | ||||||||||
Gross Profit | 860 | 679 | 712 | ||||||||||
General, Administrative and Store Operating Expenses | (426) | (457) | (440) | ||||||||||
Operating Income (Loss) | 434 | 222 | 272 | ||||||||||
Interest Expense | (13) | (11) | (9) | ||||||||||
Other Income (Loss) | 25 | 119 | 71 | ||||||||||
Income Before Income Taxes | 446 | 330 | 334 | ||||||||||
Provision (Benefit) for Income Taxes | (52) | 116 | 205 | ||||||||||
Equity In Earnings Of Consolidated Affiliates | 412 | 376 | 348 | ||||||||||
Net Income (Loss) Attributable to Parent | 910 | 590 | 477 | ||||||||||
Reclassification of Cash Flow Hedges to Earnings | 7 | 7 | 14 | ||||||||||
Foreign Currency Translation | 23 | (19) | (23) | ||||||||||
Unrealized Gain (Loss) on Cash Flow Hedges | (20) | (8) | 6 | ||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 2 | (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 | 12 | (28) | 5 | ||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 922 | $ 562 | $ 482 | ||||||||||
[1] | Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. |
Supplemental Guarantor Finan104
Supplemental Guarantor Financial Information (Condensed Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 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 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Net Cash Provided by (Used for) Operating Activities | $ 1,406 | $ 1,990 | $ 2,027 | ||||||||||||
Investing Activities | |||||||||||||||
Capital Expenditures | (707) | (990) | (727) | ||||||||||||
Proceeds from Sale of Other Assets, Investing Activities | 0 | 53 | 196 | ||||||||||||
Return of Capital | 29 | 119 | 9 | ||||||||||||
Payments to Acquire Marketable Securities | $ (10) | (10) | 0 | (60) | |||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | (33) | 0 | ||||||||||||
Proceeds from Sale and Maturity of Marketable Securities | 0 | 10 | 50 | ||||||||||||
Proceeds from Sale of Equity Method Investments | 0 | 0 | 85 | ||||||||||||
Other Investing Activities | (10) | 8 | 4 | ||||||||||||
Net Cash Provided by (Used for) Investing Activities | (698) | (833) | (443) | ||||||||||||
Proceeds from Debt, Net of Issuance Costs | 495 | 692 | 988 | ||||||||||||
Financing Activities | |||||||||||||||
Repayments of Lines of Credit | (44) | (6) | 0 | ||||||||||||
Payments of Dividends | (170) | $ (172) | $ (172) | $ (172) | $ (172) | $ (173) | $ (173) | $ (750) | $ (145) | $ (146) | $ (146) | $ (734) | (686) | (1,268) | (1,171) |
Repurchases of Common Stock | (446) | (435) | (483) | ||||||||||||
Payments Related to Tax Withholding for Share-based Compensation | (32) | (58) | (88) | ||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 0 | 0 | 0 | ||||||||||||
Proceeds From Exercise of Stock Options | 38 | 20 | 33 | ||||||||||||
Proceeds from (Payments for) Other Financing Activities | (3) | (3) | (2) | ||||||||||||
Payments of Financing Costs | (5) | 0 | 0 | ||||||||||||
Net Cash Provided by (Used for) Financing Activities | (1,127) | (1,765) | (716) | ||||||||||||
Effects of Exchange Rate Changes on Cash | 0 | (6) | (1) | ||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (419) | (614) | 867 | ||||||||||||
Cash and Cash Equivalents, Beginning of Year | 1,934 | 2,548 | $ 1,681 | 1,934 | 2,548 | 1,681 | |||||||||
Cash and Cash Equivalents, End of Year | 1,515 | 1,934 | 2,548 | 1,515 | 1,934 | 2,548 | |||||||||
Repayments of Long-term Debt | (540) | (742) | 0 | ||||||||||||
Proceeds from Lines of Credit | 96 | 35 | 7 | ||||||||||||
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 | 0 | 0 | ||||||||||||
Payments to Acquire Marketable Securities | 0 | 0 | |||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | ||||||||||||||
Proceeds from Sale and Maturity of Marketable Securities | 0 | 0 | |||||||||||||
Proceeds from Sale of Equity Method Investments | 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 | 0 | ||||||||||||
Financing Activities | |||||||||||||||
Repayments of Lines of Credit | 0 | 0 | |||||||||||||
Payments of Dividends | 0 | 0 | 0 | ||||||||||||
Repurchases of Common Stock | 0 | 0 | 0 | ||||||||||||
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 | 0 | ||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 0 | 0 | 0 | ||||||||||||
Proceeds From Exercise of Stock Options | 0 | 0 | 0 | ||||||||||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | 0 | ||||||||||||
Payments of Financing Costs | 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 | |||||||||||
Cash and Cash Equivalents, End of Year | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Repayments of Long-term Debt | 0 | 0 | |||||||||||||
Proceeds from Lines of Credit | 0 | 0 | 0 | ||||||||||||
L Brands, Inc. [Member] | |||||||||||||||
Net Cash Provided by (Used for) Operating Activities | (462) | (404) | (234) | ||||||||||||
Investing Activities | |||||||||||||||
Capital Expenditures | 0 | 0 | 0 | ||||||||||||
Proceeds from Sale of Other Assets, Investing Activities | 0 | 0 | |||||||||||||
Return of Capital | 0 | 0 | 0 | ||||||||||||
Payments to Acquire Marketable Securities | 0 | 0 | |||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | ||||||||||||||
Proceeds from Sale and Maturity of Marketable Securities | 0 | 0 | |||||||||||||
Proceeds from Sale of Equity Method Investments | 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 | 495 | 692 | 988 | ||||||||||||
Financing Activities | |||||||||||||||
Repayments of Lines of Credit | 0 | 0 | |||||||||||||
Payments of Dividends | (686) | (1,268) | (1,171) | ||||||||||||
Repurchases of Common Stock | (446) | 435 | (483) | ||||||||||||
Payments Related to Tax Withholding for Share-based Compensation | (32) | (58) | (88) | ||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 1,638 | 2,195 | 955 | ||||||||||||
Proceeds From Exercise of Stock Options | 38 | 20 | 33 | ||||||||||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | 0 | ||||||||||||
Payments of Financing Costs | (5) | ||||||||||||||
Net Cash Provided by (Used for) Financing Activities | 462 | 404 | 234 | ||||||||||||
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 | |||||||||||
Cash and Cash Equivalents, End of Year | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Repayments of Long-term Debt | (540) | (742) | |||||||||||||
Proceeds from Lines of Credit | 0 | 0 | 0 | ||||||||||||
Guarantor Subsidiaries | |||||||||||||||
Net Cash Provided by (Used for) Operating Activities | 1,414 | 1,885 | 1,897 | ||||||||||||
Investing Activities | |||||||||||||||
Capital Expenditures | (495) | (705) | (506) | ||||||||||||
Proceeds from Sale of Other Assets, Investing Activities | 0 | 0 | |||||||||||||
Return of Capital | 0 | 0 | 0 | ||||||||||||
Payments to Acquire Marketable Securities | 0 | (50) | |||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | ||||||||||||||
Proceeds from Sale and Maturity of Marketable Securities | 0 | 50 | |||||||||||||
Proceeds from Sale of Equity Method Investments | 1 | ||||||||||||||
Other Investing Activities | (1) | (2) | 0 | ||||||||||||
Net Cash Provided by (Used for) Investing Activities | (496) | (707) | (505) | ||||||||||||
Proceeds from Debt, Net of Issuance Costs | 0 | 0 | 0 | ||||||||||||
Financing Activities | |||||||||||||||
Repayments of Lines of Credit | 0 | 0 | |||||||||||||
Payments of Dividends | 0 | 0 | 0 | ||||||||||||
Repurchases of Common Stock | 0 | 0 | 0 | ||||||||||||
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 | 0 | ||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | (1,313) | (1,803) | (662) | ||||||||||||
Proceeds From Exercise of Stock Options | 0 | 0 | 0 | ||||||||||||
Proceeds from (Payments for) Other Financing Activities | (3) | (3) | (2) | ||||||||||||
Payments of Financing Costs | 0 | ||||||||||||||
Net Cash Provided by (Used for) Financing Activities | (1,316) | (1,806) | (664) | ||||||||||||
Effects of Exchange Rate Changes on Cash | 0 | 0 | 0 | ||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (398) | (628) | 728 | ||||||||||||
Cash and Cash Equivalents, Beginning of Year | 1,562 | 2,190 | 1,562 | 2,190 | |||||||||||
Cash and Cash Equivalents, End of Year | 1,164 | 1,562 | 2,190 | 1,164 | 1,562 | 2,190 | |||||||||
Repayments of Long-term Debt | 0 | 0 | |||||||||||||
Proceeds from Lines of Credit | 0 | 0 | 0 | ||||||||||||
Non-Guarantor Subsidiaries | |||||||||||||||
Net Cash Provided by (Used for) Operating Activities | 454 | 509 | 364 | ||||||||||||
Investing Activities | |||||||||||||||
Capital Expenditures | (212) | (285) | (221) | ||||||||||||
Proceeds from Sale of Other Assets, Investing Activities | 53 | 196 | |||||||||||||
Return of Capital | 29 | 119 | 9 | ||||||||||||
Payments to Acquire Marketable Securities | 10 | (10) | |||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | (33) | ||||||||||||||
Proceeds from Sale and Maturity of Marketable Securities | 10 | 0 | |||||||||||||
Proceeds from Sale of Equity Method Investments | 84 | ||||||||||||||
Other Investing Activities | (9) | 10 | 4 | ||||||||||||
Net Cash Provided by (Used for) Investing Activities | (202) | (126) | 62 | ||||||||||||
Proceeds from Debt, Net of Issuance Costs | 0 | 0 | 0 | ||||||||||||
Financing Activities | |||||||||||||||
Repayments of Lines of Credit | (44) | (6) | |||||||||||||
Payments of Dividends | 0 | 0 | 0 | ||||||||||||
Repurchases of Common Stock | 0 | 0 | 0 | ||||||||||||
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 | 0 | ||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | (325) | (392) | (293) | ||||||||||||
Proceeds From Exercise of Stock Options | 0 | 0 | 0 | ||||||||||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | 0 | ||||||||||||
Payments of Financing Costs | 0 | ||||||||||||||
Net Cash Provided by (Used for) Financing Activities | (273) | (363) | (286) | ||||||||||||
Effects of Exchange Rate Changes on Cash | 0 | (6) | (1) | ||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (21) | 14 | 139 | ||||||||||||
Cash and Cash Equivalents, Beginning of Year | $ 372 | $ 358 | 372 | 358 | |||||||||||
Cash and Cash Equivalents, End of Year | $ 351 | $ 372 | $ 358 | 351 | 372 | 358 | |||||||||
Repayments of Long-term Debt | 0 | 0 | |||||||||||||
Proceeds from Lines of Credit | $ 96 | $ 35 | $ 7 |