Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
May 05, 2018 | Jun. 01, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | May 5, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | LB | |
Entity Registrant Name | L Brands, Inc. | |
Entity Central Index Key | 701,985 | |
Current Fiscal Year End Date | --02-02 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 277,204,090 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Income Statement [Abstract] | ||
Net Sales | $ 2,626 | $ 2,437 |
Costs of Goods Sold, Buying and Occupancy | (1,682) | (1,534) |
Gross Profit | 944 | 903 |
General, Administrative and Store Operating Expenses | (789) | (694) |
Operating Income | 155 | 209 |
Interest Expense | (98) | (101) |
Other Income | 2 | 10 |
Income Before Income Taxes | 59 | 118 |
Provision for Income Taxes | 11 | 24 |
Net Income | $ 48 | $ 94 |
Net Income Per Basic Share | $ 0.17 | $ 0.33 |
Net Income Per Diluted Share | 0.17 | 0.33 |
Dividends Per Share | $ 0.60 | $ 0.60 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Net Income | $ 48 | $ 94 |
Other Comprehensive Income (Loss), Net of Tax: | ||
Reclassification of Cash Flow Hedges to Earnings | 2 | (6) |
Foreign Currency Translation | (13) | 3 |
Unrealized Gain on Cash Flow Hedges | 6 | 9 |
Total Other Comprehensive Income (Loss), Net of Tax | (5) | 6 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 43 | $ 100 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | May 05, 2018 | Feb. 03, 2018 | Apr. 29, 2017 |
Current Assets: | |||
Cash and Cash Equivalents | $ 1,032 | $ 1,515 | $ 1,555 |
Accounts Receivable, Net | 274 | 310 | 213 |
Inventories | 1,350 | 1,240 | 1,147 |
Other | 234 | 228 | 237 |
Total Current Assets | 2,890 | 3,293 | 3,152 |
Property and Equipment, Net | 2,894 | 2,893 | 2,761 |
Goodwill | 1,348 | 1,348 | 1,348 |
Indefinite-Lived Trade Names | 411 | 411 | 411 |
Deferred Tax Assets, Net, Noncurrent | 22 | 14 | 23 |
Other Assets | 184 | 190 | 187 |
Total Assets | 7,749 | 8,149 | 7,882 |
Current Liabilities: | |||
Accounts Payable | 717 | 717 | 664 |
Accrued Expenses and Other | 848 | 1,029 | 813 |
Debt, Current | 89 | 87 | 44 |
Accrued Income Taxes, Current | 204 | 198 | 310 |
Total Current Liabilities | 1,858 | 2,031 | 1,831 |
Deferred Income Taxes | 234 | 238 | 360 |
Long-term Debt | 5,719 | 5,707 | 5,702 |
Other Long-term Liabilities | 907 | 924 | 824 |
Shareholders’ Equity (Deficit): | |||
Preferred Stock - $1.00 par value; 10 shares authorized; none issued | 0 | 0 | 0 |
Common Stock - $0.50 par value; 1,000 shares authorized; 283, 283 and 317 shares issued; 278, 280 and 286 shares outstanding, respectively | 141 | 141 | 159 |
Paid-in Capital | 696 | 678 | 695 |
Accumulated Other Comprehensive Income | 17 | 24 | 18 |
Retained Earnings (Deficit) | (1,580) | (1,434) | 128 |
Less: Treasury Stock, at Average Cost; 5, 3 and 31 shares, respectively | (245) | (162) | (1,836) |
Total L Brands, Inc. Shareholders’ Equity (Deficit) | (971) | (753) | (836) |
Noncontrolling Interest | 2 | 2 | 1 |
Total Equity (Deficit) | (969) | (751) | (835) |
Total Liabilities and Equity (Deficit) | $ 7,749 | $ 8,149 | $ 7,882 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | May 05, 2018 | Feb. 03, 2018 | Apr. 29, 2017 |
Preferred Stock, Par Value | $ 1 | $ 1 | $ 1 |
Preferred Stock, Shares Authorized | 10 | 10 | 10 |
Preferred Stock, Shares Issued | 0 | 0 | 0 |
Common Stock, Par Value | $ 0.50 | $ 0.50 | $ 0.50 |
Common Stock, Shares Authorized | 1,000 | 1,000 | 1,000 |
Common Stock, Shares, Issued | 283 | 283 | 317 |
Common Stock, Shares, Outstanding | 278 | 280 | 286 |
Treasury Stock, Shares | 5 | 3 | 31 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Operating Activities: | ||
Net Income | $ 48 | $ 94 |
Depreciation, Amortization and Accretion, Net | 148 | 142 |
Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: | ||
Amortization of Landlord Allowances | (11) | (12) |
Deferred Income Taxes | (13) | 5 |
Share-based Compensation Expense | 25 | 25 |
Gain (Loss) on Equity Method Investment Dividends Or Distributions | 0 | (9) |
Changes in Assets and Liabilities: | ||
Accounts Receivable | 41 | 80 |
Inventories | (114) | (52) |
Accounts Payable, Accrued Expenses and Other | (219) | (200) |
Income Taxes Payable | 7 | 11 |
Other Assets and Liabilities | 9 | (77) |
Net Cash Provided by (Used for) Operating Activities | (79) | 7 |
Investing Activities: | ||
Capital Expenditures | (160) | (165) |
Proceeds from Equity Method Investment, Distribution, Return of Capital | 1 | 10 |
Net Cash Provided by (Used for) Investing Activities | (159) | (155) |
Financing Activities: | ||
Proceeds from Long-term Lines of Credit | 21 | 9 |
Repayments of Lines of Credit | (8) | (1) |
Payments of Dividends | (168) | (172) |
Repurchases of Common Stock | (81) | (85) |
Tax Payments related to Share-based Awards | (8) | (17) |
Proceeds from Exercise of Stock Options | 1 | 36 |
Net Cash Provided by (Used for) Financing Activities | (243) | (230) |
Effects of Exchange Rate Changes on Cash and Cash Equivalents | (2) | (1) |
Net Increase (Decrease) in Cash and Cash Equivalents | (483) | (379) |
Cash and Cash Equivalents, Beginning of Period | 1,515 | 1,934 |
Cash and Cash Equivalents, End of Period | 1,032 | $ 1,555 |
Foreign Facilities with Parent Guarantee [Member] | Without Subsidiary Guarantee [Member] | ||
Financing Activities: | ||
Proceeds from Long-term Lines of Credit | 10 | |
Repayments of Lines of Credit | $ (8) |
Description Of Business And Bas
Description Of Business And Basis Of Presentation | 3 Months Ended |
May 05, 2018 | |
Description Of Business And Basis Of Presentation [Abstract] | |
Description Of Business And Basis Of Presentation | Description of Business and Basis of Presentation Description of Business L Brands, Inc. (“the Company”) operates in the highly competitive specialty retail business. The Company is a specialty retailer of women’s intimate and other apparel, personal care, beauty and home fragrance products. The Company sells its merchandise through company-owned specialty retail stores in the United States (“U.S.”), Canada, United Kingdom (“U.K.”), Ireland and Greater China (China and Hong Kong), 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, “ first quarter of 2018 ” and “ first quarter of 2017 ” refer to the thirteen -week periods ended May 5, 2018 and April 29, 2017 , respectively. Basis of Consolidation The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company accounts for investments in unconsolidated entities where it exercises significant influence, but does not have control, using the equity method. Under the equity method of accounting, the Company recognizes its share of the investee's net income or loss. Losses are only recognized to the extent the Company has positive carrying value related to the investee. Carrying values are only reduced below zero if the Company has an obligation to provide funding to the investee. The Company’s share of net income or loss of unconsolidated entities from which the Company purchases merchandise or merchandise components is included in Costs of Goods Sold, Buying and Occupancy on the Consolidated Statements of Income. The Company’s share of net income or loss of all other unconsolidated entities is included in Other Income on the Consolidated Statements of Income. The Company’s equity method investments are required to be tested for impairment when it is determined there may be an other-than-temporary loss in value. Interim Financial Statements The Consolidated Financial Statements as of and for the periods ended May 5, 2018 and April 29, 2017 are unaudited and are presented pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained in the Company’s 2017 Annual Report on Form 10-K. In the opinion of management, the accompanying Consolidated Financial Statements reflect all adjustments which are of a normal recurring nature and necessary for a fair presentation of the results for the interim periods. Seasonality of Business Due to seasonal variations in the retail industry, the results of operations for any interim period are not necessarily indicative of the results expected for the full fiscal year. Concentration of Credit Risk The Company maintains cash and cash equivalents and derivative contracts with various major financial institutions. The Company monitors the relative credit standing of financial institutions with whom the Company transacts and limits the amount of credit exposure with any one entity. 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. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. Actual results may differ from those estimates, and the Company revises its estimates and assumptions as new information becomes available. |
New Accounting Pronouncement (N
New Accounting Pronouncement (Notes) | 3 Months Ended |
May 05, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | New Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“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 results in enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This guidance is effective beginning in fiscal 2018. The standard allows for either a full retrospective or a modified retrospective transition method. The Company adopted the standard in the first quarter of fiscal 2018 under the modified retrospective approach. Under the 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, is presented as revenue. Further, historical accounting related to loyalty points earned under the Victoria's Secret customer loyalty program changed as the Company now defers revenue associated with customer loyalty points until the points are redeemed using a relative stand-alone selling price method. The standard also changed accounting for sales returns which requires balance sheet presentation on a gross basis. In the first quarter of fiscal 2018, the Company recorded a cumulative catch-up adjustment resulting in a reduction to opening retained earnings, net of tax, of $28 million . The cumulative adjustment primarily related to the deferral of revenue related to outstanding points, net of estimated forfeitures, under the Victoria's Secret customer loyalty program. In addition, Net Sales and General, Administrative and Store Operating Expenses both increased $25 million in the first quarter of 2018 due to the change in presentation for the Victoria's Secret private label credit card arrangement. Further, gross presentation of the Company's sales return reserve resulted in a $4 million increase in Other Current Assets and Accrued Expenses and Other on the May 5, 2018 Consolidated Balance Sheet. Fair Value of Financial Instruments In January 2016, the FASB issued ASC 321, Investments - Equity Securities , 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 historical treatment in accumulated other comprehensive income on the balance sheet. The Company adopted the standard in the first quarter of fiscal 2018 and recorded 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 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 March 2018, the FASB tentatively approved an amendment to the standard that provides 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 Accounting Standards Update ("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 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. |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 3 Months Ended |
May 05, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Recognition In the first quarter of 2018, the Company adopted ASC 606, Revenue from Contracts with Customers, using the modified retrospective approach. Results for the first quarter of 2018 are presented under ASC 606, while prior period consolidated financial statements have not been adjusted and continue to be presented under the accounting standards in effect for those periods. The Company recognizes revenue based on the amount it expects to receive when control of the goods or services is transferred to the customer. The Company recognizes sales upon customer receipt of 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 and other similar taxes collected from customers. The Company’s brands have certain loyalty programs that allow customers to earn points based on purchasing activity. As customers accumulate points and reach point thresholds, they are able to use the points to purchase merchandise in stores or online. The Company allocates revenue to points earned on qualifying purchases and defers recognition until the points are redeemed. The amount of revenue deferred is based on the relative stand-alone selling price method, which includes an estimate for points not expected to be redeemed based on historical experience. The Company’s brands sell gift cards with no expiration dates to customers. The Company does not charge administrative fees on unused gift cards. The Company recognizes revenue from gift cards when they are redeemed by the customer. In addition, the Company recognizes revenue on unredeemed gift cards 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 in the Consolidated Statements of Income. Revenue earned in connection with Victoria’s Secret's private label credit card arrangement is recognized over the term of the license arrangement and is included in Net Sales in the first quarter 2018 Consolidated Statement 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. Accounts receivable, net from revenue-generating activities were $147 million as of May 5, 2018 and $144 million as of the beginning of the period upon adoption of the new standard. Accounts receivable primarily relate to amounts due from the Company's franchise, license and wholesale partners. Under these arrangements, payment terms are typically 60 to 75 days. The Company records deferred revenue when cash payments are received in advance of transfer of control of goods or services. Deferred revenue primarily relates to gift cards, loyalty programs and direct channel shipments, which are all impacted by seasonal and holiday-related sales patterns. The balance of deferred revenue was $269 million as of May 5, 2018 and $320 million as of the beginning of the period upon adoption of the new standard. The Company recognized $90 million as revenue in the first quarter of 2018 from amounts recorded as deferred revenue at the beginning of the period. The Company's deferred revenue balance would have been $229 million as of May 5, 2018 under accounting standards in effect prior to the adoption of the new standard. Deferred revenues are included within Accrued Expenses and Other on the Consolidated Balance Sheets. The following table provides a disaggregation of Net Sales for the first quarter of 2018 in comparison to the first quarter of 2017 : First Quarter 2018 2017 (a) (in millions) Victoria’s Secret Stores (b) $ 1,236 $ 1,247 Victoria’s Secret Direct 353 286 Victoria’s Secret North America 1,589 1,533 Bath & Body Works Stores (b) 649 588 Bath & Body Works Direct 112 90 Bath & Body Works North America 761 678 Victoria's Secret and Bath & Body Works International (c) 135 104 Other (d) 141 122 Total Net Sales $ 2,626 $ 2,437 _______________ (a) 2017 amounts have not been adjusted under the modified retrospective approach. (b) Includes company-owned stores in the U.S. and Canada. (c) Includes company-owned stores in the U.K., Ireland and Greater China, direct sales in Greater China and wholesale sales, royalties and other fees associated with non-company owned stores. (d) Includes wholesale revenues from the Company's sourcing function, and La Senza and Henri Bendel store and direct sales. |
Earnings Per Share And Sharehol
Earnings Per Share And Shareholders' Equity | 3 Months Ended |
May 05, 2018 | |
Earnings Per Share And Shareholders' Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Earnings Per Share and Shareholders’ Equity (Deficit) Earnings Per Share Earnings per basic share 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 during the first quarter of 2018 and 2017 : First Quarter 2018 2017 (in millions) Weighted-average Common Shares: Issued Shares 283 316 Treasury Shares (4 ) (30 ) Basic Shares 279 286 Effect of Dilutive Options and Restricted Stock 3 3 Diluted Shares 282 289 Anti-dilutive Options and Awards (a) 5 5 _______________ (a) These options and awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. Shareholders’ Equity (Deficit) Common Stock 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 during the first quarter of 2018 and 2017 : Amount Authorized Shares Repurchased Amount Repurchased Average Stock Price of Shares Repurchased within Program Repurchase Program 2018 2017 2018 2017 2018 2017 (in millions) (in thousands) (in millions) March 2018 $ 250 1,563 NA $ 58 NA $ 36.93 NA September 2017 250 527 NA 25 NA $ 46.98 NA February 2017 250 NA 1,570 NA $ 80 NA $ 50.92 February 2016 500 NA 51 NA 3 NA $ 58.95 Total 2,090 1,621 $ 83 $ 83 In March 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. 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. The March 2018 repurchase program had $192 million remaining as of May 5, 2018 . Subsequent to May 5, 2018 , the Company repurchased an additional 1.2 million shares of common stock for $42 million under this program. There were $4 million , $2 million and $1 million of share repurchases reflected in Accounts Payable on the May 5, 2018 , February 3, 2018 and April 29, 2017 Consolidated Balance Sheets, respectively. Dividends Under the authority and declaration of the Board of Directors, the Company paid the following dividends during the first quarter of 2018 and 2017 : Ordinary Dividends Total Paid (per share) (in millions) 2018 First Quarter $ 0.60 $ 168 2017 First Quarter $ 0.60 $ 172 |
Inventories
Inventories | 3 Months Ended |
May 05, 2018 | |
Inventory, Net [Abstract] | |
Inventories | Inventories The following table provides details of inventories as of May 5, 2018 , February 3, 2018 and April 29, 2017 : May 5, February 3, April 29, (in millions) Finished Goods Merchandise $ 1,225 $ 1,121 $ 1,049 Raw Materials and Merchandise Components 125 119 98 Total Inventories $ 1,350 $ 1,240 $ 1,147 Inventories are principally valued at the lower of cost, on a weighted-average cost basis, or net realizable value. |
Property And Equipment, Net
Property And Equipment, Net | 3 Months Ended |
May 05, 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 May 5, 2018 , February 3, 2018 and April 29, 2017 : May 5, February 3, April 29, (in millions) Property and Equipment, at Cost $ 6,760 $ 6,687 $ 6,354 Accumulated Depreciation and Amortization (3,866 ) (3,794 ) (3,593 ) Property and Equipment, Net $ 2,894 $ 2,893 $ 2,761 Depreciation expense was $148 million and $142 million for the first quarter of 2018 and 2017 , respectively. |
Equity Investments And Other
Equity Investments And Other | 3 Months Ended |
May 05, 2018 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |
Equity Investments And Other | Equity Investments 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 $82 million as of May 5, 2018 , $81 million as of February 3, 2018 , and $79 million as of April 29, 2017 , and 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. |
Income Taxes
Income Taxes | 3 Months Ended |
May 05, 2018 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes is based on the current estimate of the annual effective tax rate and is adjusted as necessary for quarterly events. The Company’s quarterly effective tax rate does not reflect a benefit associated with losses related to certain foreign subsidiaries. For the first quarter of 2018 , the Company’s effective tax rate was 18.5% compared to 20.6% in the first quarter of 2017 . The first quarter 2018 rate was lower than the Company's combined federal and state statutory rate primarily due to the release of a valuation allowance against certain deferred tax assets that are more likely than not to be realized. The first quarter 2017 rate was lower than the Company's combined federal and state statutory rate primarily due to the recognition of excess tax benefits recorded through the income statement on stock options exercised in the quarter. 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. 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. Any adjustments made to the provisional amounts under SAB 118 should be recorded as discrete adjustments in the period identified (not to extend beyond the one-year measurement provided in SAB 118). During the first quarter of 2018, the Company did not make any adjustments to its provisional amounts included in its consolidated financial statements for the year ended February 3, 2018. The accounting is expected to be completed in the fourth quarter of 2018. Income taxes paid were $11 million and $15 million for the first quarter of 2018 and 2017 , respectively. |
Long-term Debt
Long-term Debt | 3 Months Ended |
May 05, 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 May 5, 2018 , February 3, 2018 and April 29, 2017 : May 5, February 3, April 29, (in millions) Senior Unsecured Debt with Subsidiary Guarantee $1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) $ 990 $ 990 $ 989 $1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) 994 994 993 $1 billion, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”) 995 994 993 $700 million, 6.75% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) 693 693 692 $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) 497 497 497 $500 million, 5.25% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) 495 495 — $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”) 398 398 397 Foreign Facilities with Subsidiary Guarantee 12 1 — Total Senior Unsecured Debt with Subsidiary Guarantee $ 5,074 $ 5,062 $ 5,057 Senior Unsecured Debt $350 million, 6.95% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) $ 348 $ 348 $ 348 $300 million, 7.60% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) 297 297 297 Foreign Facilities without Subsidiary Guarantee 89 87 44 Total Senior Unsecured Debt $ 734 $ 732 $ 689 Total $ 5,808 $ 5,794 $ 5,746 Current Debt (89 ) (87 ) (44 ) Total Long-term Debt, Net of Current Portion $ 5,719 $ 5,707 $ 5,702 ________________ (a) The balance includes a fair value interest rate hedge adjustment which increased the debt balance by $2 million as of April 29, 2017 . 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 May 5, 2018 and February 3, 2018 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 . In the fourth quarter of 2017, the Company recognized a pre-tax loss on extinguishment of this debt of $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. Exchange Offer Subsequent to May 5, 2018 , the Company announced the commencement of separate private offers to eligible holders to exchange certain of its outstanding 2020 Notes, 2021 Notes and 2022 Notes (collectively, the "offers") for a series of its newly issued debt securities due 2027 and cash. The offers will expire on June 27, 2018 with a potential early settlement date of June 18, 2018, subject to certain terms and conditions. Revolving Facility The Company maintains a secured revolving credit facility (“Revolving Facility”). The Revolving Facility has aggregate availability of $1 billion and expires May 11, 2022. The Revolving Facility 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. 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 London Interbank Offered Rate (“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 May 5, 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 May 5, 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 May 5, 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 ("Foreign Facilities"). 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. The Company 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 the first quarter of 2018 , the Company borrowed $10 million and made payments of $8 million under these facilities. The maximum daily amount outstanding at any point in time during the first quarter of 2018 was $90 million . Borrowings on these facilities mature between May 7, 2018 and December 18, 2018 and are included within Current Debt on the May 5, 2018 Consolidated Balance Sheet. The Company also maintains a revolving facility that is guaranteed by L Brands, Inc. and the Guarantors 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 the first quarter of 2018 , the Company borrowed $11 million under this facility. These borrowings, which mature on May 11, 2022 , are included within Long-term Debt on the May 5, 2018 Consolidated Balance Sheet. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
May 05, 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 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 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 May 5, 2018 . The following table provides the U.S. dollar notional amount of outstanding foreign currency derivative financial instruments as of May 5, 2018 , February 3, 2018 and April 29, 2017 : May 5, February 3, April 29, (in millions) Notional Amount $ 208 $ 217 $ 362 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 May 5, 2018 , February 3, 2018 and April 29, 2017 : May 5, February 3, April 29, (in millions) Other Current Assets $ 1 $ — $ 27 Accrued Expenses and Other 2 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 the first quarter 2018 and 2017 : First Quarter 2018 2017 (in millions) Gain (Loss) Recognized in Accumulated Other Comprehensive Income $ 6 $ 10 (Gain) Loss Reclassified from Accumulated Other Comprehensive Income into Costs of Goods Sold, Buying and Occupancy Expense (a) 2 (2 ) (Gain) Loss Reclassified from Accumulated Other Comprehensive Income into Other Income (b) — (5 ) ________________ (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. The Company estimates that $2 million of net losses included in accumulated other comprehensive income as of May 5, 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 | 3 Months Ended |
May 05, 2018 | |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | |
Fair Value Measurements | 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 May 5, 2018 , February 3, 2018 and April 29, 2017 : May 5, February 3, April 29, (in millions) Principal Value $ 5,750 $ 5,750 $ 5,750 Fair Value (a) 5,735 5,943 5,992 _______________ (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 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 authoritative guidance included in ASC 820 establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 – Quoted market prices in active markets for identical assets or liabilities. • Level 2 – Observable inputs other than quoted market prices included in Level 1, such as quoted prices of similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The following table provides a summary of assets and liabilities measured in the consolidated financial statements at fair value on a recurring basis as of May 5, 2018 , February 3, 2018 and April 29, 2017 : Level 1 Level 2 Level 3 Total (in millions) As of May 5, 2018 Assets: Cash and Cash Equivalents $ 1,032 $ — $ — $ 1,032 Marketable Securities 17 — — 17 Foreign Currency Cash Flow Hedges — 1 — 1 Liabilities: Foreign Currency Cash Flow Hedges — 2 — 2 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 April 29, 2017 Assets: Cash and Cash Equivalents $ 1,555 $ — $ — $ 1,555 Marketable Securities 5 — — 5 Interest Rate Fair Value Hedges — 2 — 2 Foreign Currency Cash Flow Hedges — 27 — 27 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 January 2016, the FASB issued ASC 321, Investments - Equity Securities. The standard requires the recognition of changes in the fair value of the Company's marketable securities in net income as compared to historical treatment in accumulated other comprehensive income. The Company adopted the standard in the first quarter of 2018 . The Company recognized an unrealized holding loss of less than $1 million related to its marketable equity securities in Other Income in the first quarter of 2018 Consolidated Statement of Income. 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
Comprehensive Income | 3 Months Ended |
May 05, 2018 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income | Comprehensive Income The following table provides the rollforward of accumulated other comprehensive income for the first quarter of 2018 : Foreign Currency Translation Cash Flow Hedges Marketable Securities Accumulated Other Comprehensive Income (in millions) Balance as of February 3, 2018 $ 32 $ (10 ) $ 2 $ 24 Amount reclassified to Retained Earnings upon adoption of ASC 321 — — (2 ) (2 ) Balance as of February 4, 2018 32 (10 ) — 22 Other Comprehensive Income (Loss) Before Reclassifications (13 ) 6 — (7 ) Amounts Reclassified from Accumulated Other Comprehensive Income — 2 — 2 Tax Effect — — — — Current-period Other Comprehensive Income (Loss) (13 ) 8 — (5 ) Balance as of May 5, 2018 $ 19 $ (2 ) $ — $ 17 The following table provides the rollforward of accumulated other comprehensive income for the first quarter of 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 3 10 — 13 Amounts Reclassified from Accumulated Other Comprehensive Income — (7 ) — (7 ) Tax Effect — — — — Current-period Other Comprehensive Income (Loss) 3 3 — 6 Balance as of April 29, 2017 $ 12 $ 6 $ — $ 18 The following table provides a summary of the reclassification adjustments out of accumulated other comprehensive income for the first quarter of 2018 and 2017 : Details About Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Location on Consolidated Statements of Income First Quarter 2018 2017 (in millions) (Gain) Loss on Cash Flow Hedges $ 2 $ (2 ) Costs of Goods Sold, Buying and Occupancy — (5 ) Other Income — 1 Provision for Income Taxes $ 2 $ (6 ) Net Income |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
May 05, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies The Company is subject to various claims and contingencies related to lawsuits, taxes, insurance, regulatory and other matters arising out of the normal course of business. Actions filed against the Company from time to time include commercial, tort, intellectual property, customer, employment, data privacy, securities and other claims, including purported class action lawsuits. Management believes that the ultimate liability arising from such claims and contingencies, if any, is not likely to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. Guarantees In connection with the disposition of a certain business, the Company has remaining guarantees of $9 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 May 5, 2018 , February 3, 2018 or April 29, 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 as of May 5, 2018 and February 3, 2018 , and a liability of less than $1 million as of April 29, 2017 related to these guarantee obligations, which are included in Other Long-term Liabilities on the Consolidated Balance Sheets. |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
May 05, 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 $18 million for the first quarter of 2018 and $16 million for the first quarter of 2017 . 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. Total expense recognized related to the non-qualified plan was $6 million for the first quarter of 2018 and $4 million for the first quarter of 2017 . |
Segment Information
Segment Information | 3 Months Ended |
May 05, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has three reportable segments: Victoria’s Secret, Bath & Body Works and Victoria's Secret and Bath & Body Works International. The Victoria’s Secret segment sells women’s intimate and other apparel, 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 the 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 for the first quarter of 2018 and 2017 : Victoria’s Secret Bath & Body Works Victoria’s Secret and Bath & Body Works International Other Total (in millions) 2018 First Quarter: Net Sales $ 1,589 $ 761 $ 135 $ 141 $ 2,626 Operating Income (Loss) 83 124 (5 ) (47 ) 155 2017 First Quarter: Net Sales $ 1,533 $ 678 $ 104 $ 122 $ 2,437 Operating Income (Loss) 159 102 (1 ) (51 ) 209 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 $359 million and $299 million for the first quarter of 2018 and 2017 , respectively. |
Subsequent Event (Notes)
Subsequent Event (Notes) | 3 Months Ended |
May 05, 2018 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | Subsequent Events On May 31, 2018, the Company announced the commencement of separate private offers to eligible holders to exchange certain of its outstanding 2020 Notes, 2021 Notes and 2022 Notes (collectively, the "offers") for a series of its newly issued debt securities due 2027 and cash. The offers will expire on June 27, 2018 with a potential early settlement date of June 18, 2018, subject to certain terms and conditions. Subsequent to May 5, 2018 , the Company repurchased an additional 1.2 million shares of common stock for $42 million under the March 2018 repurchase program. |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information Supplemental Guarantor Financial Information (Notes) | 3 Months Ended |
May 05, 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 May 5, 2018 , February 3, 2018 and April 29, 2017 and the Condensed Consolidating Statements of Income, Comprehensive Income and Cash Flows for the periods ended May 5, 2018 and April 29, 2017 . L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) (Unaudited) May 5, 2018 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 677 $ 355 $ — $ 1,032 Accounts Receivable, Net — 152 122 — 274 Inventories — 1,199 151 — 1,350 Other 1 136 97 — 234 Total Current Assets 1 2,164 725 — 2,890 Property and Equipment, Net — 1,970 924 — 2,894 Goodwill — 1,318 30 — 1,348 Trade Names — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 4,690 18,969 2,025 (25,684 ) — Deferred Income Taxes — 9 13 — 22 Other Assets 129 16 651 (612 ) 184 Total Assets $ 4,820 $ 24,857 $ 4,368 $ (26,296 ) $ 7,749 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ 5 $ 350 $ 362 $ — $ 717 Accrued Expenses and Other 59 461 328 — 848 Current Debt — — 89 — 89 Income Taxes 6 176 22 — 204 Total Current Liabilities 70 987 801 — 1,858 Deferred Income Taxes (2 ) (41 ) 277 — 234 Long-term Debt 5,707 597 12 (597 ) 5,719 Other Long-term Liabilities 1 823 98 (15 ) 907 Total Equity (Deficit) (956 ) 22,491 3,180 (25,684 ) (969 ) Total Liabilities and Equity (Deficit) $ 4,820 $ 24,857 $ 4,368 $ (26,296 ) $ 7,749 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) (Unaudited) April 29, 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 1,207 $ 348 $ — $ 1,555 Accounts Receivable, Net 1 130 82 — 213 Inventories — 1,000 147 — 1,147 Other — 130 107 — 237 Total Current Assets 1 2,467 684 — 3,152 Property and Equipment, Net — 1,935 826 — 2,761 Goodwill — 1,318 30 — 1,348 Trade Names — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 4,819 16,358 1,449 (22,626 ) — Deferred Income Taxes — 10 13 — 23 Other Assets 129 34 636 (612 ) 187 Total Assets $ 4,949 $ 22,533 $ 3,638 $ (23,238 ) $ 7,882 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ 2 $ 371 $ 291 $ — $ 664 Accrued Expenses and Other 109 394 310 — 813 Current Debt — — 44 — 44 Income Taxes (11 ) 226 95 — 310 Total Current Liabilities 100 991 740 — 1,831 Deferred Income Taxes (3 ) (86 ) 449 — 360 Long-term Debt 5,702 597 — (597 ) 5,702 Other Long-term Liabilities 3 752 84 (15 ) 824 Total Equity (Deficit) (853 ) 20,279 2,365 (22,626 ) (835 ) Total Liabilities and Equity (Deficit) $ 4,949 $ 22,533 $ 3,638 $ (23,238 ) $ 7,882 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) (Unaudited) First Quarter 2018 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 2,466 $ 839 $ (679 ) $ 2,626 Costs of Goods Sold, Buying and Occupancy — (1,622 ) (669 ) 609 (1,682 ) Gross Profit — 844 170 (70 ) 944 General, Administrative and Store Operating Expenses (4 ) (726 ) (109 ) 50 (789 ) Operating Income (Loss) (4 ) 118 61 (20 ) 155 Interest Expense (97 ) (20 ) (3 ) 22 (98 ) Other Income (Loss) — 4 (2 ) — 2 Income (Loss) Before Income Taxes (101 ) 102 56 2 59 Provision (Benefit) for Income Taxes (2 ) 13 — — 11 Equity in Earnings (Loss), Net of Tax 147 215 152 (514 ) — Net Income (Loss) $ 48 $ 304 $ 208 $ (512 ) $ 48 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) (Unaudited) First Quarter 2018 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Income (Loss) $ 48 $ 304 $ 208 $ (512 ) $ 48 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — (13 ) — (13 ) Unrealized Gain on Cash Flow Hedges — — 6 — 6 Reclassification of Cash Flow Hedges to Earnings — — 2 — 2 Total Other Comprehensive Income (Loss), Net of Tax — — (5 ) — (5 ) Total Comprehensive Income (Loss) $ 48 $ 304 $ 203 $ (512 ) $ 43 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) (Unaudited) First Quarter 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 2,310 $ 696 $ (569 ) $ 2,437 Costs of Goods Sold, Buying and Occupancy — (1,486 ) (571 ) 523 (1,534 ) Gross Profit — 824 125 (46 ) 903 General, Administrative and Store Operating Expenses (4 ) (635 ) (90 ) 35 (694 ) Operating Income (Loss) (4 ) 189 35 (11 ) 209 Interest Expense (100 ) (11 ) (3 ) 13 (101 ) Other Income — 3 7 — 10 Income (Loss) Before Income Taxes (104 ) 181 39 2 118 Provision for Income Taxes — 20 4 — 24 Equity in Earnings (Loss), Net of Tax 198 179 150 (527 ) — Net Income (Loss) $ 94 $ 340 $ 185 $ (525 ) $ 94 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) (Unaudited) First Quarter 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Income (Loss) $ 94 $ 340 $ 185 $ (525 ) $ 94 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — 3 — 3 Unrealized Gain on Cash Flow Hedges — — 9 — 9 Reclassification of Cash Flow Hedges to Earnings — — (6 ) — (6 ) Total Other Comprehensive Income (Loss), Net of Tax — — 6 — 6 Total Comprehensive Income (Loss) $ 94 $ 340 $ 191 $ (525 ) $ 100 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) (Unaudited) Year-to-Date 2018 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Cash Provided by (Used for) Operating Activities $ (141 ) $ 65 $ (3 ) $ — $ (79 ) Investing Activities: Capital Expenditures — (91 ) (69 ) — (160 ) Return of Capital from Easton Investments — — 1 — 1 Net Investments in Consolidated Affiliates — — (11 ) 11 — Net Cash Provided by (Used for) Investing Activities — (91 ) (79 ) 11 (159 ) Financing Activities: Borrowings from Foreign Facilities — — 21 — 21 Repayments of Foreign Facilities — — (8 ) — (8 ) Dividends Paid (168 ) — — — (168 ) Repurchases of Common Stock (81 ) — — — (81 ) Tax Payments related to Share-based Awards (8 ) — — — (8 ) Proceeds from Exercise of Stock Options 1 — — — 1 Net Financing Activities and Advances to/from Consolidated Affiliates 397 (461 ) 75 (11 ) — Net Cash Provided by (Used for) Financing Activities 141 (461 ) 88 (11 ) (243 ) Effects of Exchange Rate Changes on Cash and Cash Equivalents — — (2 ) — (2 ) Net Increase (Decrease) in Cash and Cash Equivalents — (487 ) 4 — (483 ) Cash and Cash Equivalents, Beginning of Period — 1,164 351 — 1,515 Cash and Cash Equivalents, End of Period $ — $ 677 $ 355 $ — $ 1,032 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) (Unaudited) Year-to-Date 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Cash Provided by (Used for) Operating Activities $ (96 ) $ 181 $ (78 ) $ — $ 7 Investing Activities: Capital Expenditures — (135 ) (30 ) — (165 ) Return of Capital from Easton Investments — — 10 — 10 Net Cash Used for Investing Activities — (135 ) (20 ) — (155 ) Financing Activities: Borrowings from Foreign Facilities — — 9 — 9 Repayments of Foreign Facilities — — (1 ) — (1 ) Dividends Paid (172 ) — — — (172 ) Repurchases of Common Stock (85 ) — — — (85 ) Tax Payments related to Share-based Awards (17 ) — — — (17 ) Proceeds from Exercise of Stock Options 36 — — — 36 Net Financing Activities and Advances to/from Consolidated Affiliates 334 (401 ) 67 — — Net Cash Provided by (Used for) Financing Activities 96 (401 ) 75 — (230 ) Effects of Exchange Rate Changes on Cash and Cash Equivalents — — (1 ) — (1 ) Net Decrease in Cash and Cash Equivalents — (355 ) (24 ) — (379 ) Cash and Cash Equivalents, Beginning of Period — 1,562 372 — 1,934 Cash and Cash Equivalents, End of Period $ — $ 1,207 $ 348 $ — $ 1,555 |
Description Of Business And B24
Description Of Business And Basis Of Presentation (Policy) | 3 Months Ended |
May 05, 2018 | |
Description Of Business And Basis Of Presentation [Abstract] | |
Inventory, Policy [Policy Text Block] | Inventories are principally valued at the lower of cost, on a weighted-average cost basis, or net realizable value. |
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 United States (“U.S.”), Canada, United Kingdom (“U.K.”), Ireland and Greater China (China and Hong Kong), 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, “ first quarter of 2018 ” and “ first quarter of 2017 ” refer to the thirteen -week periods ended May 5, 2018 and April 29, 2017 , 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 on the Consolidated Statements of Income. The Company’s equity method investments are required to be tested for impairment when it is determined there may be an other-than-temporary loss in value. |
Interim Financial Statements | Interim Financial Statements The Consolidated Financial Statements as of and for the periods ended May 5, 2018 and April 29, 2017 are unaudited and are presented pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained in the Company’s 2017 Annual Report on Form 10-K. In the opinion of management, the accompanying Consolidated Financial Statements reflect all adjustments which are of a normal recurring nature and necessary for a fair presentation of the results for the interim periods. |
Seasonality Of Business | Seasonality of Business Due to seasonal variations in the retail industry, the results of operations for any interim period are not necessarily indicative of the results expected for the full fiscal year. |
Concentration Of Credit Risk | Concentration of Credit Risk The Company maintains cash and cash equivalents and derivative contracts with various major financial institutions. The Company monitors the relative credit standing of financial institutions with whom the Company transacts and limits the amount of credit exposure with any one entity. 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. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) 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 Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“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 results in enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This guidance is effective beginning in fiscal 2018. The standard allows for either a full retrospective or a modified retrospective transition method. The Company adopted the standard in the first quarter of fiscal 2018 under the modified retrospective approach. Under the 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, is presented as revenue. Further, historical accounting related to loyalty points earned under the Victoria's Secret customer loyalty program changed as the Company now defers revenue associated with customer loyalty points until the points are redeemed using a relative stand-alone selling price method. The standard also changed accounting for sales returns which requires balance sheet presentation on a gross basis. In the first quarter of fiscal 2018, the Company recorded a cumulative catch-up adjustment resulting in a reduction to opening retained earnings, net of tax, of $28 million . The cumulative adjustment primarily related to the deferral of revenue related to outstanding points, net of estimated forfeitures, under the Victoria's Secret customer loyalty program. In addition, Net Sales and General, Administrative and Store Operating Expenses both increased $25 million in the first quarter of 2018 due to the change in presentation for the Victoria's Secret private label credit card arrangement. Further, gross presentation of the Company's sales return reserve resulted in a $4 million increase in Other Current Assets and Accrued Expenses and Other on the May 5, 2018 Consolidated Balance Sheet. Fair Value of Financial Instruments In January 2016, the FASB issued ASC 321, Investments - Equity Securities , 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 historical treatment in accumulated other comprehensive income on the balance sheet. The Company adopted the standard in the first quarter of fiscal 2018 and recorded 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 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 March 2018, the FASB tentatively approved an amendment to the standard that provides 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 Accounting Standards Update ("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 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. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
May 05, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table provides a disaggregation of Net Sales for the first quarter of 2018 in comparison to the first quarter of 2017 : First Quarter 2018 2017 (a) (in millions) Victoria’s Secret Stores (b) $ 1,236 $ 1,247 Victoria’s Secret Direct 353 286 Victoria’s Secret North America 1,589 1,533 Bath & Body Works Stores (b) 649 588 Bath & Body Works Direct 112 90 Bath & Body Works North America 761 678 Victoria's Secret and Bath & Body Works International (c) 135 104 Other (d) 141 122 Total Net Sales $ 2,626 $ 2,437 _______________ (a) 2017 amounts have not been adjusted under the modified retrospective approach. (b) Includes company-owned stores in the U.S. and Canada. (c) Includes company-owned stores in the U.K., Ireland and Greater China, direct sales in Greater China and wholesale sales, royalties and other fees associated with non-company owned stores. (d) Includes wholesale revenues from the Company's sourcing function, and La Senza and Henri Bendel store and direct sales. |
Earnings Per Share And Shareh26
Earnings Per Share And Shareholders' Equity (Tables) | 3 Months Ended |
May 05, 2018 | |
Earnings Per Share And Shareholders' Equity [Abstract] | |
Shares Utilized For The Calculation Of Basic And Diluted Earnings Per Share | The following table provides shares utilized for the calculation of basic and diluted earnings per share during the first quarter of 2018 and 2017 : First Quarter 2018 2017 (in millions) Weighted-average Common Shares: Issued Shares 283 316 Treasury Shares (4 ) (30 ) Basic Shares 279 286 Effect of Dilutive Options and Restricted Stock 3 3 Diluted Shares 282 289 Anti-dilutive Options and Awards (a) 5 5 _______________ (a) These options and awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. |
Schedule Of Company's Repurchase Program | Under the authority of the Company’s Board of Directors, the Company repurchased shares of its common stock under the following repurchase programs during the first quarter of 2018 and 2017 : Amount Authorized Shares Repurchased Amount Repurchased Average Stock Price of Shares Repurchased within Program Repurchase Program 2018 2017 2018 2017 2018 2017 (in millions) (in thousands) (in millions) March 2018 $ 250 1,563 NA $ 58 NA $ 36.93 NA September 2017 250 527 NA 25 NA $ 46.98 NA February 2017 250 NA 1,570 NA $ 80 NA $ 50.92 February 2016 500 NA 51 NA 3 NA $ 58.95 Total 2,090 1,621 $ 83 $ 83 |
Schedule Of Dividends Paid | Under the authority and declaration of the Board of Directors, the Company paid the following dividends during the first quarter of 2018 and 2017 : Ordinary Dividends Total Paid (per share) (in millions) 2018 First Quarter $ 0.60 $ 168 2017 First Quarter $ 0.60 $ 172 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
May 05, 2018 | |
Inventory, Net [Abstract] | |
Summary Of Inventories | The following table provides details of inventories as of May 5, 2018 , February 3, 2018 and April 29, 2017 : May 5, February 3, April 29, (in millions) Finished Goods Merchandise $ 1,225 $ 1,121 $ 1,049 Raw Materials and Merchandise Components 125 119 98 Total Inventories $ 1,350 $ 1,240 $ 1,147 |
Property And Equipment, Net (Ta
Property And Equipment, Net (Tables) | 3 Months Ended |
May 05, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary Of Property And Equipment, Net | The following table provides details of property and equipment, net as of May 5, 2018 , February 3, 2018 and April 29, 2017 : May 5, February 3, April 29, (in millions) Property and Equipment, at Cost $ 6,760 $ 6,687 $ 6,354 Accumulated Depreciation and Amortization (3,866 ) (3,794 ) (3,593 ) Property and Equipment, Net $ 2,894 $ 2,893 $ 2,761 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
May 05, 2018 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Schedule Of Long-term Debt Instruments | The following table provides the Company’s debt balance, net of unamortized debt issuance costs and discounts, as of May 5, 2018 , February 3, 2018 and April 29, 2017 : May 5, February 3, April 29, (in millions) Senior Unsecured Debt with Subsidiary Guarantee $1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) $ 990 $ 990 $ 989 $1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) 994 994 993 $1 billion, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”) 995 994 993 $700 million, 6.75% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) 693 693 692 $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) 497 497 497 $500 million, 5.25% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) 495 495 — $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”) 398 398 397 Foreign Facilities with Subsidiary Guarantee 12 1 — Total Senior Unsecured Debt with Subsidiary Guarantee $ 5,074 $ 5,062 $ 5,057 Senior Unsecured Debt $350 million, 6.95% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) $ 348 $ 348 $ 348 $300 million, 7.60% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) 297 297 297 Foreign Facilities without Subsidiary Guarantee 89 87 44 Total Senior Unsecured Debt $ 734 $ 732 $ 689 Total $ 5,808 $ 5,794 $ 5,746 Current Debt (89 ) (87 ) (44 ) Total Long-term Debt, Net of Current Portion $ 5,719 $ 5,707 $ 5,702 ________________ (a) The balance includes a fair value interest rate hedge adjustment which increased the debt balance by $2 million as of April 29, 2017 . |
Derivative Instruments (Tables)
Derivative Instruments (Tables) - Foreign Exchange Contract [Member] | 3 Months Ended |
May 05, 2018 | |
Derivatives, Fair Value [Line Items] | |
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 May 5, 2018 , February 3, 2018 and April 29, 2017 : May 5, February 3, April 29, (in millions) Notional Amount $ 208 $ 217 $ 362 |
Cash Flow Hedging [Member] | |
Derivatives, Fair Value [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position | The following table provides a summary of the fair value and balance sheet classification of outstanding derivative financial instruments designated as foreign currency cash flow hedges as of May 5, 2018 , February 3, 2018 and April 29, 2017 : May 5, February 3, April 29, (in millions) Other Current Assets $ 1 $ — $ 27 Accrued Expenses and Other 2 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 the first quarter 2018 and 2017 : First Quarter 2018 2017 (in millions) Gain (Loss) Recognized in Accumulated Other Comprehensive Income $ 6 $ 10 (Gain) Loss Reclassified from Accumulated Other Comprehensive Income into Costs of Goods Sold, Buying and Occupancy Expense (a) 2 (2 ) (Gain) Loss Reclassified from Accumulated Other Comprehensive Income into Other Income (b) — (5 ) ________________ (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. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
May 05, 2018 | |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | |
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 May 5, 2018 , February 3, 2018 and April 29, 2017 : May 5, February 3, April 29, (in millions) Principal Value $ 5,750 $ 5,750 $ 5,750 Fair Value (a) 5,735 5,943 5,992 _______________ (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 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 May 5, 2018 , February 3, 2018 and April 29, 2017 : Level 1 Level 2 Level 3 Total (in millions) As of May 5, 2018 Assets: Cash and Cash Equivalents $ 1,032 $ — $ — $ 1,032 Marketable Securities 17 — — 17 Foreign Currency Cash Flow Hedges — 1 — 1 Liabilities: Foreign Currency Cash Flow Hedges — 2 — 2 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 April 29, 2017 Assets: Cash and Cash Equivalents $ 1,555 $ — $ — $ 1,555 Marketable Securities 5 — — 5 Interest Rate Fair Value Hedges — 2 — 2 Foreign Currency Cash Flow Hedges — 27 — 27 Liabilities: Foreign Currency Cash Flow Hedges — 1 — 1 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 3 Months Ended |
May 05, 2018 | |
Statement of Comprehensive Income [Abstract] | |
Components Of Accumulated Other Comprehensive Income (Loss) | The following table provides the rollforward of accumulated other comprehensive income for the first quarter of 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 3 10 — 13 Amounts Reclassified from Accumulated Other Comprehensive Income — (7 ) — (7 ) Tax Effect — — — — Current-period Other Comprehensive Income (Loss) 3 3 — 6 Balance as of April 29, 2017 $ 12 $ 6 $ — $ 18 The following table provides the rollforward of accumulated other comprehensive income for the first quarter of 2018 : Foreign Currency Translation Cash Flow Hedges Marketable Securities Accumulated Other Comprehensive Income (in millions) Balance as of February 3, 2018 $ 32 $ (10 ) $ 2 $ 24 Amount reclassified to Retained Earnings upon adoption of ASC 321 — — (2 ) (2 ) Balance as of February 4, 2018 32 (10 ) — 22 Other Comprehensive Income (Loss) Before Reclassifications (13 ) 6 — (7 ) Amounts Reclassified from Accumulated Other Comprehensive Income — 2 — 2 Tax Effect — — — — Current-period Other Comprehensive Income (Loss) (13 ) 8 — (5 ) Balance as of May 5, 2018 $ 19 $ (2 ) $ — $ 17 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table provides a summary of the reclassification adjustments out of accumulated other comprehensive income for the first quarter of 2018 and 2017 : Details About Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Location on Consolidated Statements of Income First Quarter 2018 2017 (in millions) (Gain) Loss on Cash Flow Hedges $ 2 $ (2 ) Costs of Goods Sold, Buying and Occupancy — (5 ) Other Income — 1 Provision for Income Taxes $ 2 $ (6 ) Net Income |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
May 05, 2018 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information | The following table provides the Company’s segment information for the first quarter of 2018 and 2017 : Victoria’s Secret Bath & Body Works Victoria’s Secret and Bath & Body Works International Other Total (in millions) 2018 First Quarter: Net Sales $ 1,589 $ 761 $ 135 $ 141 $ 2,626 Operating Income (Loss) 83 124 (5 ) (47 ) 155 2017 First Quarter: Net Sales $ 1,533 $ 678 $ 104 $ 122 $ 2,437 Operating Income (Loss) 159 102 (1 ) (51 ) 209 |
Supplemental Guarantor Financ34
Supplemental Guarantor Financial Information (Tables) | 3 Months Ended |
May 05, 2018 | |
Condensed Consolidating Balance Sheet [Abstract] | |
Condensed Balance Sheet [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) (Unaudited) May 5, 2018 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 677 $ 355 $ — $ 1,032 Accounts Receivable, Net — 152 122 — 274 Inventories — 1,199 151 — 1,350 Other 1 136 97 — 234 Total Current Assets 1 2,164 725 — 2,890 Property and Equipment, Net — 1,970 924 — 2,894 Goodwill — 1,318 30 — 1,348 Trade Names — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 4,690 18,969 2,025 (25,684 ) — Deferred Income Taxes — 9 13 — 22 Other Assets 129 16 651 (612 ) 184 Total Assets $ 4,820 $ 24,857 $ 4,368 $ (26,296 ) $ 7,749 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ 5 $ 350 $ 362 $ — $ 717 Accrued Expenses and Other 59 461 328 — 848 Current Debt — — 89 — 89 Income Taxes 6 176 22 — 204 Total Current Liabilities 70 987 801 — 1,858 Deferred Income Taxes (2 ) (41 ) 277 — 234 Long-term Debt 5,707 597 12 (597 ) 5,719 Other Long-term Liabilities 1 823 98 (15 ) 907 Total Equity (Deficit) (956 ) 22,491 3,180 (25,684 ) (969 ) Total Liabilities and Equity (Deficit) $ 4,820 $ 24,857 $ 4,368 $ (26,296 ) $ 7,749 L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) (Unaudited) April 29, 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 1,207 $ 348 $ — $ 1,555 Accounts Receivable, Net 1 130 82 — 213 Inventories — 1,000 147 — 1,147 Other — 130 107 — 237 Total Current Assets 1 2,467 684 — 3,152 Property and Equipment, Net — 1,935 826 — 2,761 Goodwill — 1,318 30 — 1,348 Trade Names — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 4,819 16,358 1,449 (22,626 ) — Deferred Income Taxes — 10 13 — 23 Other Assets 129 34 636 (612 ) 187 Total Assets $ 4,949 $ 22,533 $ 3,638 $ (23,238 ) $ 7,882 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ 2 $ 371 $ 291 $ — $ 664 Accrued Expenses and Other 109 394 310 — 813 Current Debt — — 44 — 44 Income Taxes (11 ) 226 95 — 310 Total Current Liabilities 100 991 740 — 1,831 Deferred Income Taxes (3 ) (86 ) 449 — 360 Long-term Debt 5,702 597 — (597 ) 5,702 Other Long-term Liabilities 3 752 84 (15 ) 824 Total Equity (Deficit) (853 ) 20,279 2,365 (22,626 ) (835 ) Total Liabilities and Equity (Deficit) $ 4,949 $ 22,533 $ 3,638 $ (23,238 ) $ 7,882 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 |
Condensed Income Statement [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) (Unaudited) First Quarter 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 2,310 $ 696 $ (569 ) $ 2,437 Costs of Goods Sold, Buying and Occupancy — (1,486 ) (571 ) 523 (1,534 ) Gross Profit — 824 125 (46 ) 903 General, Administrative and Store Operating Expenses (4 ) (635 ) (90 ) 35 (694 ) Operating Income (Loss) (4 ) 189 35 (11 ) 209 Interest Expense (100 ) (11 ) (3 ) 13 (101 ) Other Income — 3 7 — 10 Income (Loss) Before Income Taxes (104 ) 181 39 2 118 Provision for Income Taxes — 20 4 — 24 Equity in Earnings (Loss), Net of Tax 198 179 150 (527 ) — Net Income (Loss) $ 94 $ 340 $ 185 $ (525 ) $ 94 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) (Unaudited) First Quarter 2018 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 2,466 $ 839 $ (679 ) $ 2,626 Costs of Goods Sold, Buying and Occupancy — (1,622 ) (669 ) 609 (1,682 ) Gross Profit — 844 170 (70 ) 944 General, Administrative and Store Operating Expenses (4 ) (726 ) (109 ) 50 (789 ) Operating Income (Loss) (4 ) 118 61 (20 ) 155 Interest Expense (97 ) (20 ) (3 ) 22 (98 ) Other Income (Loss) — 4 (2 ) — 2 Income (Loss) Before Income Taxes (101 ) 102 56 2 59 Provision (Benefit) for Income Taxes (2 ) 13 — — 11 Equity in Earnings (Loss), Net of Tax 147 215 152 (514 ) — Net Income (Loss) $ 48 $ 304 $ 208 $ (512 ) $ 48 |
Condensed Statement of Comprehensive Income [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) (Unaudited) First Quarter 2018 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Income (Loss) $ 48 $ 304 $ 208 $ (512 ) $ 48 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — (13 ) — (13 ) Unrealized Gain on Cash Flow Hedges — — 6 — 6 Reclassification of Cash Flow Hedges to Earnings — — 2 — 2 Total Other Comprehensive Income (Loss), Net of Tax — — (5 ) — (5 ) Total Comprehensive Income (Loss) $ 48 $ 304 $ 203 $ (512 ) $ 43 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) (Unaudited) First Quarter 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Income (Loss) $ 94 $ 340 $ 185 $ (525 ) $ 94 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — 3 — 3 Unrealized Gain on Cash Flow Hedges — — 9 — 9 Reclassification of Cash Flow Hedges to Earnings — — (6 ) — (6 ) Total Other Comprehensive Income (Loss), Net of Tax — — 6 — 6 Total Comprehensive Income (Loss) $ 94 $ 340 $ 191 $ (525 ) $ 100 |
Condensed Cash Flow Statement [Table Text Block] | BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) (Unaudited) Year-to-Date 2018 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Cash Provided by (Used for) Operating Activities $ (141 ) $ 65 $ (3 ) $ — $ (79 ) Investing Activities: Capital Expenditures — (91 ) (69 ) — (160 ) Return of Capital from Easton Investments — — 1 — 1 Net Investments in Consolidated Affiliates — — (11 ) 11 — Net Cash Provided by (Used for) Investing Activities — (91 ) (79 ) 11 (159 ) Financing Activities: Borrowings from Foreign Facilities — — 21 — 21 Repayments of Foreign Facilities — — (8 ) — (8 ) Dividends Paid (168 ) — — — (168 ) Repurchases of Common Stock (81 ) — — — (81 ) Tax Payments related to Share-based Awards (8 ) — — — (8 ) Proceeds from Exercise of Stock Options 1 — — — 1 Net Financing Activities and Advances to/from Consolidated Affiliates 397 (461 ) 75 (11 ) — Net Cash Provided by (Used for) Financing Activities 141 (461 ) 88 (11 ) (243 ) Effects of Exchange Rate Changes on Cash and Cash Equivalents — — (2 ) — (2 ) Net Increase (Decrease) in Cash and Cash Equivalents — (487 ) 4 — (483 ) Cash and Cash Equivalents, Beginning of Period — 1,164 351 — 1,515 Cash and Cash Equivalents, End of Period $ — $ 677 $ 355 $ — $ 1,032 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) (Unaudited) Year-to-Date 2017 L Brands, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Cash Provided by (Used for) Operating Activities $ (96 ) $ 181 $ (78 ) $ — $ 7 Investing Activities: Capital Expenditures — (135 ) (30 ) — (165 ) Return of Capital from Easton Investments — — 10 — 10 Net Cash Used for Investing Activities — (135 ) (20 ) — (155 ) Financing Activities: Borrowings from Foreign Facilities — — 9 — 9 Repayments of Foreign Facilities — — (1 ) — (1 ) Dividends Paid (172 ) — — — (172 ) Repurchases of Common Stock (85 ) — — — (85 ) Tax Payments related to Share-based Awards (17 ) — — — (17 ) Proceeds from Exercise of Stock Options 36 — — — 36 Net Financing Activities and Advances to/from Consolidated Affiliates 334 (401 ) 67 — — Net Cash Provided by (Used for) Financing Activities 96 (401 ) 75 — (230 ) Effects of Exchange Rate Changes on Cash and Cash Equivalents — — (1 ) — (1 ) Net Decrease in Cash and Cash Equivalents — (355 ) (24 ) — (379 ) Cash and Cash Equivalents, Beginning of Period — 1,562 372 — 1,934 Cash and Cash Equivalents, End of Period $ — $ 1,207 $ 348 $ — $ 1,555 |
New Accounting Pronouncement Re
New Accounting Pronouncement Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | Feb. 03, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net Sales | $ 2,626 | $ 2,437 | |
Accounting Standards Update 2014-09 [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 | $ 28 | ||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net Sales | 25 | ||
Accrued Returns Reserve Current | $ 4 |
New Accounting Pronouncement Fi
New Accounting Pronouncement Financial Instruments (Details) $ in Millions | 12 Months Ended |
Feb. 03, 2018USD ($) | |
Adjustments for New Accounting Pronouncement [Member] | Accounting Standards Update 2016-01 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative Effect on Retained Earnings, Net of Tax | $ 2 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | $ 2,626 | $ 2,437 |
Victoria's Secret [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 1,589 | 1,533 |
Bath & Body Works [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 761 | 678 |
Victoria's Secret and Bath & Body Works International [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 135 | 104 |
Other Operating Segments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 141 | 122 |
Victoria's Secret Stores [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 1,236 | 1,247 |
Victoria's Secret Direct [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 353 | 286 |
Bath & Body Works Stores [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 649 | 588 |
Bath & Body Works Direct [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | $ 112 | $ 90 |
Revenue Recognition Narrative (
Revenue Recognition Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Feb. 04, 2018 | |
Contract with Customer, Liability, Revenue Recognized | $ 90 | |
Accounts Receivable [Member] | ||
Contract with Customer, Asset, Net | 147 | $ 144 |
Accrued Liabilities [Member] | ||
Contract with Customer, Liability | 269 | $ 320 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Contract with Customer, Liability | $ 229 |
Earnings Per Share And Shareh39
Earnings Per Share And Shareholders' Equity (Shares Utilized for the Calculation of Basic and Diluted Earnings per Share) (Details) - shares shares in Millions | 3 Months Ended | ||
May 05, 2018 | Apr. 29, 2017 | ||
Weighted-average Common Shares: | |||
Issued Shares | 283 | 316 | |
Treasury Shares | (4) | (30) | |
Basic Shares | 279 | 286 | |
Effect of Dilutive Options and Restricted Stock | 3 | 3 | |
Diluted Shares | 282 | 289 | |
Anti-dilutive Options and Awards (a) | [1] | 5 | 5 |
[1] | These options and awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. |
Earnings Per Share And Shareh40
Earnings Per Share And Shareholders' Equity (Schedule of Company's Repurchase Program) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | ||||
Jun. 06, 2018 | May 05, 2018 | Apr. 29, 2017 | Feb. 03, 2018 | Oct. 28, 2017 | Apr. 30, 2016 | |
Shares Repurchased | 2,090 | 1,621 | ||||
Amount Repurchased | $ 83 | $ 83 | ||||
March 2018 Repurchase Program [Member] | ||||||
Amount Authorized | $ 250 | |||||
Shares Repurchased | 1,563 | |||||
Amount Repurchased | $ 58 | |||||
Average Stock Price of Shares Repurchased within Program | $ 36.93 | |||||
Remaining authorized repurchase amount | $ 192 | |||||
September 2017 Repurchase Program [Member] | ||||||
Amount Authorized | $ 250 | |||||
Shares Repurchased | 527 | |||||
Amount Repurchased | $ 25 | |||||
Average Stock Price of Shares Repurchased within Program | $ 46.98 | |||||
Remaining authorized repurchase amount | $ 23 | |||||
February 2017 Repurchase Program [Member] | ||||||
Amount Authorized | $ 250 | |||||
Shares Repurchased | 1,570 | |||||
Amount Repurchased | $ 80 | |||||
Average Stock Price of Shares Repurchased within Program | $ 50.92 | |||||
Remaining authorized repurchase amount | $ 10 | |||||
February 2016 Repurchase Program [Member] | ||||||
Amount Authorized | $ 500 | |||||
Shares Repurchased | 51 | |||||
Amount Repurchased | $ 3 | |||||
Average Stock Price of Shares Repurchased within Program | $ 58.95 | |||||
Remaining authorized repurchase amount | $ 59 | |||||
June 2015 Repurchase Program [Member] | ||||||
Remaining authorized repurchase amount | $ 17 | |||||
Accounts Payable [Member] | March 2018 Repurchase Program [Member] | ||||||
Share repurchase reflected in Accounts payable | $ 4 | |||||
Accounts Payable [Member] | September 2017 Repurchase Program [Member] | ||||||
Share repurchase reflected in Accounts payable | $ 2 | |||||
Accounts Payable [Member] | February 2017 Repurchase Program [Member] | ||||||
Share repurchase reflected in Accounts payable | $ 1 | |||||
Subsequent Event [Member] | March 2018 Repurchase Program [Member] | ||||||
Shares Repurchased | 1,200 | |||||
Amount Repurchased | $ 42 |
Earnings Per Share And Shareh41
Earnings Per Share And Shareholders' Equity (Dividends) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Earnings Per Share And Shareholders' Equity [Abstract] | ||
Ordinary Dividends | $ 0.60 | $ 0.60 |
Payments of Dividends | $ 168 | $ 172 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | May 05, 2018 | Feb. 03, 2018 | Apr. 29, 2017 |
Inventory [Line Items] | |||
Inventory, Finished Goods, Net of Reserves | $ 1,225 | $ 1,121 | $ 1,049 |
Raw Materials and Merchandise Components | 125 | 119 | 98 |
Total Inventories | $ 1,350 | $ 1,240 | $ 1,147 |
Property And Equipment, Net (De
Property And Equipment, Net (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 05, 2018 | Apr. 29, 2017 | Feb. 03, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, at Cost | $ 6,760 | $ 6,354 | $ 6,687 |
Accumulated Depreciation and Amortization | (3,866) | (3,593) | (3,794) |
Property and Equipment, Net | 2,894 | 2,761 | $ 2,893 |
Depreciation | $ 148 | $ 142 |
Equity Investments and Other (D
Equity Investments and Other (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 05, 2018 | Apr. 29, 2017 | Feb. 03, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Proceeds from Equity Method Investment, Distribution, Return of Capital | $ 1 | $ 10 | |
Gain (Loss) on Equity Method Investment Dividends Or Distributions | 0 | 9 | |
Easton Investment [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | $ 82 | $ 79 | $ 81 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | Feb. 03, 2018 | |
Effective Income Tax Rate, Continuing Operations | 18.50% | 20.60% | |
U.S. Federal Statutory Rate before Tax Cuts and Jobs Act | 35.00% | ||
U.S. Federal Statutory Tax Rate after Tax Cuts and Jobs Act | 21.00% | ||
Income Taxes Paid | $ 11 | $ 15 |
Long-term Debt (Schedule Of Lon
Long-term Debt (Schedule Of Long-term Debt Instruments) (Details) - USD ($) $ in Millions | May 05, 2018 | Feb. 03, 2018 | Apr. 29, 2017 |
Debt, Current | $ (89) | $ (87) | $ (44) |
Debt, Long-term and Short-term, Combined Amount | 5,808 | 5,794 | 5,746 |
Total Long-term Debt, Net of Current Portion | 5,719 | 5,707 | 5,702 |
Fixed Rate 8.50% Notes Due June 2019 [Member] | |||
Fair Value Interest Rate Hedge Adjustment | 2 | ||
With Subsidiary Guarantee [Member] | |||
Senior Unsecured Debt with Subsidiary Guarantee | 5,074 | 5,062 | 5,057 |
With Subsidiary Guarantee [Member] | Fixed Rate 6.875% Notes Due November 2035 [Member] | |||
Notes Payable, Noncurrent | 990 | 990 | 989 |
With Subsidiary Guarantee [Member] | Fixed Rate 5.625 Percent Notes Due February 2022 [Member] | |||
Notes Payable, Noncurrent | 994 | 994 | 993 |
With Subsidiary Guarantee [Member] | Fixed Rate 6.625 Percent Notes Due April 2021 [Member] | |||
Notes Payable, Noncurrent | 995 | 994 | 993 |
With Subsidiary Guarantee [Member] | Fixed Rate 5.625% Notes Due October 2023 [Member] | |||
Notes Payable, Noncurrent | 497 | 497 | 497 |
With Subsidiary Guarantee [Member] | Fixed Rate 5.25% Notes Due February 2028 [Member] | |||
Notes Payable, Noncurrent | 495 | 495 | 0 |
With Subsidiary Guarantee [Member] | Fixed Rate 8.50% Notes Due June 2019 [Member] | |||
Notes Payable, Noncurrent | 0 | 0 | 496 |
With Subsidiary Guarantee [Member] | Fixed Rate 7.00% Notes Due May 2020 [Member] | |||
Notes Payable, Noncurrent | 398 | 398 | 397 |
With Subsidiary Guarantee [Member] | Foreign Facilities with Parent Guarantee [Member] | |||
Long-term Line of Credit, Noncurrent | 12 | 1 | 0 |
With Subsidiary Guarantee [Member] | Fixed Rate 6.75% Notes Due July 2036 [Member] | |||
Notes Payable, Noncurrent | 693 | 693 | 692 |
Without Subsidiary Guarantee [Member] | |||
Debt, Long-term and Short-term, Combined Amount | 734 | 732 | 689 |
Without Subsidiary Guarantee [Member] | Foreign Facilities with Parent Guarantee [Member] | |||
Other Short-term Borrowings | 89 | 87 | 44 |
Without Subsidiary Guarantee [Member] | Fixed Rate 6.95% Debentures Due March 2033 [Member] | |||
Notes Payable, Noncurrent | 348 | 348 | 348 |
Without Subsidiary Guarantee [Member] | Fixed Rate 7.60% Notes Due July 2037 [Member] | |||
Notes Payable, Noncurrent | $ 297 | $ 297 | $ 297 |
Long-term Debt (Issuance And Re
Long-term Debt (Issuance And Repurchase Of Notes) (Narrative) (Details) $ in Millions | 3 Months Ended |
Feb. 03, 2018USD ($) | |
Fixed Rate 8.50% Notes Due June 2019 [Member] | |
Extinguishment of Debt, Amount | $ 500 |
Debt Instrument, Repurchase Amount | 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 |
Debt instrument, stated rate | 5.25% |
Proceeds from Debt, Net of Issuance Costs | $ 495 |
Payments of Debt Issuance Costs | $ 5 |
Long-term Debt (Revolving Facil
Long-term Debt (Revolving Facility And Letters Of Credit) (Narrative) (Details) | 3 Months Ended | |
May 05, 2018USD ($) | Apr. 29, 2017USD ($) | |
Proceeds from Long-term Lines of Credit | $ 21,000,000 | $ 9,000,000 |
Repayments of Lines of Credit | 8,000,000 | $ 1,000,000 |
Letter of Credit [Member] | ||
Letters of Credit Outstanding, Amount | 9,000,000 | |
Revolving Credit Facility [Member] | Revolving Credit Expiring May 2022 [Member] | ||
Revolving facility, borrowing capacity | $ 1,000,000,000 | |
Revolving Facility Commitment fee percentage, unused capacity | 0.25% | |
Revolving Facility Current credit fees percentage rate, letters of credit | 1.50% | |
Revolving Facility Percentage spread over variable base rate | 1.50% | |
Revolving Facility Covenant Fixed charge coverage ratio | 1.75 | |
Revolving Facility Covenant Ratio of consolidated debt to consolidated EBITDA | 4 | |
Revolving Facility Covenant Debt to EBITDA ratio required for unlimited investments and restricted payments | 3 | |
Revolving Facility Covenant Line of Credit Financial Covenant Ratio of Consolidated Debt to Consolidated EBITDA Maximum Current Rate | 3 | |
Outstanding Borrowings on Lines of Credit | $ 0 | |
Without Subsidiary Guarantee [Member] | Foreign Facilities with Parent Guarantee [Member] | ||
Revolving facility, borrowing capacity | 100,000,000 | |
Proceeds from Long-term Lines of Credit | 10,000,000 | |
Repayments of Lines of Credit | 8,000,000 | |
Line of Credit Facility, Maximum Amount Outstanding During Period | 90,000,000 | |
With Subsidiary Guarantee [Member] | Foreign Facilities with Parent Guarantee [Member] | ||
Revolving facility, borrowing capacity | 100,000,000 | |
Proceeds from Long-term Lines of Credit | $ 11,000,000 |
Derivative Instruments (Foreign
Derivative Instruments (Foreign Exchange Contracts - Cash Flow Hedging Disclosure) (Details) $ in Millions, $ in Millions | 3 Months Ended | |||
May 05, 2018USD ($) | Apr. 29, 2017USD ($) | Feb. 03, 2018CAD ($) | Feb. 03, 2018USD ($) | |
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | $ 6 | $ 10 | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 1 | 27 | ||
Cost of Goods Sold, Buying and Occupancy [Member] | ||||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | (2) | 2 | ||
Other Income (Loss) [Member] | ||||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 0 | (5) | ||
Cash Flow Hedging [Member] | ||||
Derivative, Notional Amount | $ 208 | 362 | $ 217 | |
Cash Flow Hedging [Member] | Currency Swap [Member] | ||||
Derivative, Notional Amount | $ 170 | |||
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||||
Derivative, Remaining Maturity | 18 months | |||
Gain (Loss) on Foreign Currency Cash Flow Hedge Ineffectiveness | $ 0 | |||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | 2 | |||
Other Current Assets [Member] | ||||
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 1 | $ 27 | $ 0 |
Derivative Instruments Fair Val
Derivative Instruments Fair Values Derivatives, Balance Sheet Location, by Derivative Contract Type (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 05, 2018 | Apr. 29, 2017 | Feb. 03, 2018 | |
Derivatives, Fair Value [Line Items] | |||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | $ 6 | $ 10 | |
Interest Rate Fair Value Hedges | 2 | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 1 | 27 | |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 2 | 1 | $ 9 |
Other Current Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 1 | 27 | 0 |
Accounts Payable and Accrued Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 2 | 1 | 8 |
Other Noncurrent Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ 0 | $ 0 | $ 1 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Value And Fair Value Of Long-Term Debt, Disclosure) (Detail) - USD ($) $ in Millions | May 05, 2018 | Feb. 03, 2018 | Apr. 29, 2017 | |
Fair Value Measurements | ||||
Principal Value | $ 5,750 | $ 5,750 | $ 5,750 | |
Fair Value (a) | [1] | $ 5,735 | $ 5,943 | $ 5,992 |
[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 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 | May 05, 2018 | Feb. 03, 2018 | Apr. 29, 2017 |
Assets: | |||
Cash and Cash Equivalents | $ 1,032 | $ 1,515 | $ 1,555 |
Available-for-sale Securities | 17 | 17 | 5 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 1 | 27 | |
Interest Rate Fair Value Hedges | 2 | ||
Liabilities: | |||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 2 | 9 | 1 |
Fair Value, Inputs, Level 1 [Member] | |||
Assets: | |||
Cash and Cash Equivalents | 1,032 | 1,515 | 1,555 |
Available-for-sale Securities | 17 | 17 | 5 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0 | 0 | |
Interest Rate Fair Value Hedges | 0 | ||
Liabilities: | |||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 0 | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | |||
Assets: | |||
Cash and Cash Equivalents | 0 | 0 | 0 |
Available-for-sale Securities | 0 | 0 | 0 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 1 | 27 | |
Interest Rate Fair Value Hedges | 2 | ||
Liabilities: | |||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 2 | 9 | 1 |
Fair Value, Inputs, Level 3 [Member] | |||
Assets: | |||
Cash and Cash Equivalents | 0 | 0 | 0 |
Available-for-sale Securities | 0 | 0 | 0 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0 | 0 | |
Interest Rate Fair Value Hedges | 0 | ||
Liabilities: | |||
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ 0 | $ 0 | $ 0 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Securities Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 05, 2018 | Feb. 03, 2018 | Apr. 29, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unrealized Gain (Loss) on Securities | $ 1 | ||
Investments, Fair Value Disclosure | 17 | $ 17 | $ 5 |
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | $ 17 | $ 17 | $ 5 |
Comprehensive Income (Component
Comprehensive Income (Components Of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 05, 2018 | Apr. 29, 2017 | Feb. 03, 2018 | |
Accumulated Other Comprehensive Income (Loss), Beginning Balance | $ 24 | $ 12 | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (7) | 13 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 2 | (7) | |
Other Comprehensive Income (Loss), Tax | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | (5) | 6 | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | 17 | 18 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 0 | 1 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 2 | (6) | |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | 32 | 9 | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (13) | 3 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | |
Other Comprehensive Income (Loss), Tax | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | (13) | 3 | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | 19 | 12 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | (10) | 3 | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 6 | 10 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 2 | (7) | |
Other Comprehensive Income (Loss), Tax | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | 8 | 3 | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | (2) | 6 | |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | 2 | 0 | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | 0 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | |
Other Comprehensive Income (Loss), Tax | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | 0 | 0 | |
Cost of Goods Sold, Buying and Occupancy [Member] | |||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | (2) | 2 | |
Other Income [Member] | |||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 0 | $ (5) | |
Accounting Standards Update 2016-01 [Member] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | 22 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (2) | ||
Accounting Standards Update 2016-01 [Member] | Accumulated Translation Adjustment [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | ||
Accounting Standards Update 2016-01 [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | ||
Accounting Standards Update 2016-01 [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | $ 0 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (2) |
Commitments And Contingencies (
Commitments And Contingencies (Details) - USD ($) $ in Millions | May 05, 2018 | Feb. 03, 2018 | Apr. 29, 2017 |
Residual Value Guarantee of Leased Assets | $ 104 | ||
Lease guarantees, estimated fair value | 3 | $ 3 | $ 1 |
Property Lease Guarantee [Member] | |||
Lease guarantees remaining after disposition of certain businesses | $ 9 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Retirement Benefits Disclosure [Line Items] | ||
Expense related to the qualified plan | $ 18 | $ 16 |
Other Pension Plans, Postretirement or Supplemental Plans, Defined Benefit [Member] | ||
Retirement Benefits Disclosure [Line Items] | ||
Expense related to non-qualified plan | $ 6 | $ 4 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | |
May 05, 2018USD ($)Reportable_Segments | Apr. 29, 2017USD ($) | |
Number of Reportable Segments | Reportable_Segments | 3 | |
Net Sales | $ 2,626 | $ 2,437 |
Operating Income (Loss) | 155 | 209 |
Victoria's Secret [Member] | ||
Net Sales | 1,589 | 1,533 |
Operating Income (Loss) | 83 | 159 |
Bath & Body Works [Member] | ||
Net Sales | 761 | 678 |
Operating Income (Loss) | 124 | 102 |
Victoria's Secret and Bath & Body Works International [Member] | ||
Net Sales | 135 | 104 |
Operating Income (Loss) | (5) | (1) |
Other [Member] | ||
Net Sales | 141 | 122 |
Operating Income (Loss) | (47) | (51) |
International [Member] | ||
Net Sales | $ 359 | $ 299 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Subsequent Event [Line Items] | ||
Shares Repurchased | 2,090 | 1,621 |
Amount Repurchased | $ 83 | $ 83 |
September 2017 Repurchase Program [Member] | ||
Subsequent Event [Line Items] | ||
Shares Repurchased | 527 | |
Amount Repurchased | $ 25 | |
February 2017 Repurchase Program [Member] | ||
Subsequent Event [Line Items] | ||
Shares Repurchased | 1,570 | |
Amount Repurchased | $ 80 | |
February 2016 Repurchase Program [Member] | ||
Subsequent Event [Line Items] | ||
Shares Repurchased | 51 | |
Amount Repurchased | $ 3 |
Supplemental Guarantor Financ59
Supplemental Guarantor Financial Information (Narrative) (Details) | 3 Months Ended |
May 05, 2018 | |
Supplemental Guarantor Financial Information [Abstract] | |
Minimum percentage of assets owned by domestic subsidiaries | 90.00% |
Minimum percentage of accounts receivable and inventory owned by domestic subsidiaries | 95.00% |
Supplemental Guarantor Financ60
Supplemental Guarantor Financial Information (Consolidated Balance Sheets) (Details) - USD ($) $ in Millions | May 05, 2018 | Feb. 03, 2018 | Apr. 29, 2017 | Jan. 28, 2017 |
Current Assets: | ||||
Cash and Cash Equivalents | $ 1,032 | $ 1,515 | $ 1,555 | $ 1,934 |
Accounts Receivable, Net | 274 | 310 | 213 | |
Inventories | 1,350 | 1,240 | 1,147 | |
Other | 234 | 228 | 237 | |
Total Current Assets | 2,890 | 3,293 | 3,152 | |
Deferred Tax Assets, Net, Noncurrent | 22 | 14 | 23 | |
Property and Equipment, Net | 2,894 | 2,893 | 2,761 | |
Goodwill | 1,348 | 1,348 | 1,348 | |
Indefinite-Lived Trade Names | 411 | 411 | 411 | |
Net Investments in and Advances to/from Consolidated Affiliates | 0 | 0 | 0 | |
Other Assets | 184 | 190 | 187 | |
Total Assets | 7,749 | 8,149 | 7,882 | |
Current Liabilities: | ||||
Accounts Payable | 717 | 717 | 664 | |
Accrued Expenses and Other | 848 | 1,029 | 813 | |
Debt, Current | 89 | 87 | 44 | |
Income Taxes | 204 | 198 | 310 | |
Total Current Liabilities | 1,858 | 2,031 | 1,831 | |
Deferred Income Taxes | 234 | 238 | 360 | |
Long-term Debt | 5,719 | 5,707 | 5,702 | |
Other Long-term Liabilities | 907 | 924 | 824 | |
Total Equity (Deficit) | (969) | (751) | (835) | |
Total Liabilities and Equity (Deficit) | 7,749 | 8,149 | 7,882 | |
L Brands, Inc. | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 0 | 0 | 0 | 0 |
Accounts Receivable, Net | 0 | 0 | 1 | |
Inventories | 0 | 0 | 0 | |
Other | 1 | 0 | 0 | |
Total Current Assets | 1 | 0 | 1 | |
Deferred Tax Assets, Net, Noncurrent | 0 | 0 | 0 | |
Property and Equipment, Net | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Indefinite-Lived Trade Names | 0 | 0 | 0 | |
Net Investments in and Advances to/from Consolidated Affiliates | 4,690 | 4,912 | 4,819 | |
Other Assets | 129 | 129 | 129 | |
Total Assets | 4,820 | 5,041 | 4,949 | |
Current Liabilities: | ||||
Accounts Payable | 5 | 2 | 2 | |
Accrued Expenses and Other | 59 | 101 | 109 | |
Debt, Current | 0 | 0 | 0 | |
Income Taxes | 6 | 6 | (11) | |
Total Current Liabilities | 70 | 109 | 100 | |
Deferred Income Taxes | (2) | (2) | (3) | |
Long-term Debt | 5,707 | 5,706 | 5,702 | |
Other Long-term Liabilities | 1 | 3 | 3 | |
Total Equity (Deficit) | (956) | (775) | (853) | |
Total Liabilities and Equity (Deficit) | 4,820 | 5,041 | 4,949 | |
Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 677 | 1,164 | 1,207 | 1,562 |
Accounts Receivable, Net | 152 | 186 | 130 | |
Inventories | 1,199 | 1,095 | 1,000 | |
Other | 136 | 132 | 130 | |
Total Current Assets | 2,164 | 2,577 | 2,467 | |
Deferred Tax Assets, Net, Noncurrent | 9 | 10 | 10 | |
Property and Equipment, Net | 1,970 | 1,984 | 1,935 | |
Goodwill | 1,318 | 1,318 | 1,318 | |
Indefinite-Lived Trade Names | 411 | 411 | 411 | |
Net Investments in and Advances to/from Consolidated Affiliates | 18,969 | 18,359 | 16,358 | |
Other Assets | 16 | 18 | 34 | |
Total Assets | 24,857 | 24,677 | 22,533 | |
Current Liabilities: | ||||
Accounts Payable | 350 | 349 | 371 | |
Accrued Expenses and Other | 461 | 529 | 394 | |
Debt, Current | 0 | 0 | 0 | |
Income Taxes | 176 | 174 | 226 | |
Total Current Liabilities | 987 | 1,052 | 991 | |
Deferred Income Taxes | (41) | (46) | (86) | |
Long-term Debt | 597 | 597 | 597 | |
Other Long-term Liabilities | 823 | 835 | 752 | |
Total Equity (Deficit) | 22,491 | 22,239 | 20,279 | |
Total Liabilities and Equity (Deficit) | 24,857 | 24,677 | 22,533 | |
Non- guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 355 | 351 | 348 | 372 |
Accounts Receivable, Net | 122 | 124 | 82 | |
Inventories | 151 | 145 | 147 | |
Other | 97 | 96 | 107 | |
Total Current Assets | 725 | 716 | 684 | |
Deferred Tax Assets, Net, Noncurrent | 13 | 4 | 13 | |
Property and Equipment, Net | 924 | 909 | 826 | |
Goodwill | 30 | 30 | 30 | |
Indefinite-Lived Trade Names | 0 | 0 | 0 | |
Net Investments in and Advances to/from Consolidated Affiliates | 2,025 | 2,106 | 1,449 | |
Other Assets | 651 | 654 | 636 | |
Total Assets | 4,368 | 4,419 | 3,638 | |
Current Liabilities: | ||||
Accounts Payable | 362 | 366 | 291 | |
Accrued Expenses and Other | 328 | 399 | 310 | |
Debt, Current | 89 | 87 | 44 | |
Income Taxes | 22 | 18 | 95 | |
Total Current Liabilities | 801 | 870 | 740 | |
Deferred Income Taxes | 277 | 286 | 449 | |
Long-term Debt | 12 | 1 | 0 | |
Other Long-term Liabilities | 98 | 100 | 84 | |
Total Equity (Deficit) | 3,180 | 3,162 | 2,365 | |
Total Liabilities and Equity (Deficit) | 4,368 | 4,419 | 3,638 | |
Eliminations | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 0 | 0 | 0 | $ 0 |
Accounts Receivable, Net | 0 | 0 | 0 | |
Inventories | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | |
Total Current Assets | 0 | 0 | 0 | |
Deferred Tax Assets, Net, Noncurrent | 0 | 0 | 0 | |
Property and Equipment, Net | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Indefinite-Lived Trade Names | 0 | 0 | 0 | |
Net Investments in and Advances to/from Consolidated Affiliates | (25,684) | (25,377) | (22,626) | |
Other Assets | (612) | (611) | (612) | |
Total Assets | (26,296) | (25,988) | (23,238) | |
Current Liabilities: | ||||
Accounts Payable | 0 | 0 | 0 | |
Accrued Expenses and Other | 0 | 0 | 0 | |
Debt, Current | 0 | 0 | 0 | |
Income Taxes | 0 | 0 | 0 | |
Total Current Liabilities | 0 | 0 | 0 | |
Deferred Income Taxes | 0 | 0 | 0 | |
Long-term Debt | (597) | (597) | (597) | |
Other Long-term Liabilities | (15) | (14) | (15) | |
Total Equity (Deficit) | (25,684) | (25,377) | (22,626) | |
Total Liabilities and Equity (Deficit) | $ (26,296) | $ (25,988) | $ (23,238) |
Supplemental Guarantor Financ61
Supplemental Guarantor Financial Information (Consolidated Statements Of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Net Sales | $ 2,626 | $ 2,437 |
Cost of Goods and Services Sold | (1,682) | (1,534) |
Gross Profit | 944 | 903 |
Selling, General and Administrative Expense | (789) | (694) |
Operating Income (Loss) | 155 | 209 |
Interest Expense | (98) | (101) |
Other Nonoperating Income (Expense) | 2 | 10 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 59 | 118 |
Provision for Income Taxes | 11 | 24 |
Equity in Earnings (Loss), Net of Tax | 0 | 0 |
Net Income (Loss) Attributable to Parent | 48 | 94 |
Reclassification of Cash Flow Hedges to Earnings | 2 | (6) |
Foreign Currency Translation | (13) | 3 |
Unrealized Gain on Cash Flow Hedges | 6 | 9 |
Total Other Comprehensive Income (Loss), Net of Tax | (5) | 6 |
Total Comprehensive Income | 43 | 100 |
L Brands, Inc. | ||
Net Sales | 0 | 0 |
Cost of Goods and Services Sold | 0 | 0 |
Gross Profit | 0 | 0 |
Selling, General and Administrative Expense | (4) | (4) |
Operating Income (Loss) | (4) | (4) |
Interest Expense | (97) | (100) |
Other Nonoperating Income (Expense) | 0 | 0 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (101) | (104) |
Provision for Income Taxes | (2) | 0 |
Equity in Earnings (Loss), Net of Tax | 147 | 198 |
Net Income (Loss) Attributable to Parent | 48 | 94 |
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 |
Foreign Currency Translation | 0 | 0 |
Unrealized Gain on Cash Flow Hedges | 0 | 0 |
Total Other Comprehensive Income (Loss), Net of Tax | 0 | 0 |
Total Comprehensive Income | 48 | 94 |
Guarantor Subsidiaries | ||
Net Sales | 2,466 | 2,310 |
Cost of Goods and Services Sold | (1,622) | (1,486) |
Gross Profit | 844 | 824 |
Selling, General and Administrative Expense | (726) | (635) |
Operating Income (Loss) | 118 | 189 |
Interest Expense | (20) | (11) |
Other Nonoperating Income (Expense) | 4 | 3 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 102 | 181 |
Provision for Income Taxes | 13 | 20 |
Equity in Earnings (Loss), Net of Tax | 215 | 179 |
Net Income (Loss) Attributable to Parent | 304 | 340 |
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 |
Foreign Currency Translation | 0 | 0 |
Unrealized Gain on Cash Flow Hedges | 0 | 0 |
Total Other Comprehensive Income (Loss), Net of Tax | 0 | 0 |
Total Comprehensive Income | 304 | 340 |
Non- guarantor Subsidiaries | ||
Net Sales | 839 | 696 |
Cost of Goods and Services Sold | (669) | (571) |
Gross Profit | 170 | 125 |
Selling, General and Administrative Expense | (109) | (90) |
Operating Income (Loss) | 61 | 35 |
Interest Expense | (3) | (3) |
Other Nonoperating Income (Expense) | (2) | 7 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 56 | 39 |
Provision for Income Taxes | 0 | 4 |
Equity in Earnings (Loss), Net of Tax | 152 | 150 |
Net Income (Loss) Attributable to Parent | 208 | 185 |
Reclassification of Cash Flow Hedges to Earnings | 2 | (6) |
Foreign Currency Translation | (13) | 3 |
Unrealized Gain on Cash Flow Hedges | 6 | 9 |
Total Other Comprehensive Income (Loss), Net of Tax | (5) | 6 |
Total Comprehensive Income | 203 | 191 |
Eliminations | ||
Net Sales | (679) | (569) |
Cost of Goods and Services Sold | 609 | 523 |
Gross Profit | (70) | (46) |
Selling, General and Administrative Expense | 50 | 35 |
Operating Income (Loss) | (20) | (11) |
Interest Expense | 22 | 13 |
Other Nonoperating Income (Expense) | 0 | 0 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 2 | 2 |
Provision for Income Taxes | 0 | 0 |
Equity in Earnings (Loss), Net of Tax | (514) | (527) |
Net Income (Loss) Attributable to Parent | (512) | (525) |
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 |
Foreign Currency Translation | 0 | 0 |
Unrealized Gain on Cash Flow Hedges | 0 | 0 |
Total Other Comprehensive Income (Loss), Net of Tax | 0 | 0 |
Total Comprehensive Income | $ (512) | $ (525) |
Supplemental Guarantor Financ62
Supplemental Guarantor Financial Information (Consolidated Statements Of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Net Cash Provided by (Used for) Operating Activities | $ (79) | $ 7 |
Investing Activities: | ||
Capital Expenditures | (160) | (165) |
Proceeds from Equity Method Investment, Distribution, Return of Capital | 1 | 10 |
Investment In Equity Affiliates | 0 | |
Net Cash Provided by (Used for) Investing Activities | (159) | (155) |
Proceeds from Lines of Credit | 21 | 9 |
Financing Activities: | ||
Repayments of Lines of Credit | (8) | (1) |
Payments of Dividends | (168) | (172) |
Repurchases of Common Stock | (81) | (85) |
Payments Related to Tax Withholding for Share-based Compensation | (8) | (17) |
Net Financing Activities and Advances to/from Consolidated Affiliates | 0 | 0 |
Proceeds from Exercise of Stock Options | 1 | 36 |
Net Cash Provided by (Used for) Financing Activities | (243) | (230) |
Effects of Exchange Rate Changes on Cash and Cash Equivalents | (2) | (1) |
Net Increase (Decrease) in Cash and Cash Equivalents | (483) | (379) |
Cash and Cash Equivalents, Beginning of Period | 1,515 | 1,934 |
Cash and Cash Equivalents, End of Period | 1,032 | 1,555 |
L Brands, Inc. | ||
Net Cash Provided by (Used for) Operating Activities | (141) | (96) |
Investing Activities: | ||
Capital Expenditures | 0 | 0 |
Proceeds from Equity Method Investment, Distribution, Return of Capital | 0 | 0 |
Investment In Equity Affiliates | 0 | |
Net Cash Provided by (Used for) Investing Activities | 0 | 0 |
Proceeds from Lines of Credit | 0 | 0 |
Financing Activities: | ||
Repayments of Lines of Credit | 0 | 0 |
Payments of Dividends | (168) | (172) |
Repurchases of Common Stock | (81) | (85) |
Payments Related to Tax Withholding for Share-based Compensation | (8) | (17) |
Net Financing Activities and Advances to/from Consolidated Affiliates | 397 | 334 |
Proceeds from Exercise of Stock Options | 1 | 36 |
Net Cash Provided by (Used for) Financing Activities | 141 | 96 |
Effects of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 |
Net Increase (Decrease) in Cash and Cash Equivalents | 0 | 0 |
Cash and Cash Equivalents, Beginning of Period | 0 | 0 |
Cash and Cash Equivalents, End of Period | 0 | 0 |
Guarantor Subsidiaries | ||
Net Cash Provided by (Used for) Operating Activities | 65 | 181 |
Investing Activities: | ||
Capital Expenditures | (91) | (135) |
Proceeds from Equity Method Investment, Distribution, Return of Capital | 0 | 0 |
Investment In Equity Affiliates | 0 | |
Net Cash Provided by (Used for) Investing Activities | (91) | (135) |
Proceeds from Lines of Credit | 0 | 0 |
Financing Activities: | ||
Repayments of Lines of Credit | 0 | 0 |
Payments of Dividends | 0 | 0 |
Repurchases of Common Stock | 0 | 0 |
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 |
Net Financing Activities and Advances to/from Consolidated Affiliates | (461) | (401) |
Proceeds from Exercise of Stock Options | 0 | 0 |
Net Cash Provided by (Used for) Financing Activities | (461) | (401) |
Effects of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 |
Net Increase (Decrease) in Cash and Cash Equivalents | (487) | (355) |
Cash and Cash Equivalents, Beginning of Period | 1,164 | 1,562 |
Cash and Cash Equivalents, End of Period | 677 | 1,207 |
Non- guarantor Subsidiaries | ||
Net Cash Provided by (Used for) Operating Activities | (3) | (78) |
Investing Activities: | ||
Capital Expenditures | (69) | (30) |
Proceeds from Equity Method Investment, Distribution, Return of Capital | 1 | 10 |
Investment In Equity Affiliates | (11) | |
Net Cash Provided by (Used for) Investing Activities | (79) | (20) |
Proceeds from Lines of Credit | 21 | 9 |
Financing Activities: | ||
Repayments of Lines of Credit | (8) | (1) |
Payments of Dividends | 0 | 0 |
Repurchases of Common Stock | 0 | 0 |
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 |
Net Financing Activities and Advances to/from Consolidated Affiliates | 75 | 67 |
Proceeds from Exercise of Stock Options | 0 | 0 |
Net Cash Provided by (Used for) Financing Activities | 88 | 75 |
Effects of Exchange Rate Changes on Cash and Cash Equivalents | (2) | (1) |
Net Increase (Decrease) in Cash and Cash Equivalents | 4 | (24) |
Cash and Cash Equivalents, Beginning of Period | 351 | 372 |
Cash and Cash Equivalents, End of Period | 355 | 348 |
Consolidation, Eliminations [Member] | ||
Net Cash Provided by (Used for) Operating Activities | 0 | 0 |
Investing Activities: | ||
Capital Expenditures | 0 | 0 |
Proceeds from Equity Method Investment, Distribution, Return of Capital | 0 | 0 |
Investment In Equity Affiliates | 11 | |
Net Cash Provided by (Used for) Investing Activities | 11 | 0 |
Proceeds from Lines of Credit | 0 | 0 |
Financing Activities: | ||
Repayments of Lines of Credit | 0 | 0 |
Payments of Dividends | 0 | 0 |
Repurchases of Common Stock | 0 | 0 |
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 |
Net Financing Activities and Advances to/from Consolidated Affiliates | (11) | 0 |
Proceeds from Exercise of Stock Options | 0 | 0 |
Net Cash Provided by (Used for) Financing Activities | (11) | 0 |
Effects of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 |
Net Increase (Decrease) in Cash and Cash Equivalents | 0 | 0 |
Cash and Cash Equivalents, Beginning of Period | 0 | 0 |
Cash and Cash Equivalents, End of Period | $ 0 | $ 0 |