Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Mar. 20, 2020 | Aug. 03, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 1, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 1-8344 | ||
Entity Registrant Name | L BRANDS, INC. | ||
Entity Central Index Key | 0000701985 | ||
Current Fiscal Year End Date | --02-01 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 31-1029810 | ||
Entity Address, Address Line One | Three Limited Parkway, | ||
Entity Address, City or Town | Columbus, | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 43230 | ||
City Area Code | 614 | ||
Local Phone Number | 415-7000 | ||
Title of 12(b) Security | Common Stock, $0.50 Par Value | ||
Trading Symbol | LB | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5,587,493,009 | ||
Entity Common Stock, Shares Outstanding | 276,533,315 | ||
Documents Incorporated by Reference | Portions of the Registrant’s Proxy Statement for the Registrant’s 2020 Annual Meeting of Stockholders are incorporated by reference into Part III. |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |||
Net Sales | $ 4,707 | $ 2,677 | $ 2,902 | $ 2,629 | $ 4,852 | $ 2,775 | $ 2,984 | $ 2,626 | $ 12,914 | $ 13,237 | $ 12,632 | ||
Costs of Goods Sold, Buying and Occupancy | 8,464 | 8,338 | 7,673 | ||||||||||
Gross Profit | 1,794 | 741 | 983 | 934 | 1,968 | 928 | 1,059 | 944 | 4,450 | 4,899 | 4,959 | ||
General, Administrative and Store Operating Expenses | 3,472 | 3,563 | 3,231 | ||||||||||
Impairment of Goodwill | (720) | 0 | 0 | ||||||||||
Loss on Divestiture of La Senza | 0 | (99) | 0 | ||||||||||
Operating Income | 82 | (151) | 175 | 153 | 800 | 54 | 228 | 155 | 258 | 1,237 | [1] | 1,728 | [1] |
Interest Expense | 378 | 385 | 406 | ||||||||||
Other Income (Loss) | (61) | 5 | (10) | ||||||||||
Income (Loss) Before Income Taxes | (7) | (277) | 42 | 60 | 710 | (41) | 129 | 59 | (181) | 857 | 1,312 | ||
Provision for Income Taxes | 185 | 213 | 329 | ||||||||||
Net Income (Loss) | $ (192) | $ (252) | $ 38 | $ 40 | $ 540 | $ (43) | $ 99 | $ 48 | $ (366) | $ 644 | $ 983 | ||
Net Income (Loss) Per Basic Share | $ (0.70) | $ (0.91) | $ 0.14 | $ 0.15 | $ 1.96 | $ (0.16) | $ 0.36 | $ 0.17 | $ (1.33) | $ 2.33 | $ 3.46 | ||
Net Income (Loss) Per Diluted Share | $ (0.70) | $ (0.91) | $ 0.14 | $ 0.14 | $ 1.94 | $ (0.16) | $ 0.36 | $ 0.17 | $ (1.33) | $ 2.31 | $ 3.42 | ||
[1] | (a) Victoria's Secret includes goodwill and long-lived store asset impairment charges of $690 million and $51 million , respectively. Victoria's Secret and Bath & Body Works International includes long-lived store asset and goodwill impairment charges of $212 million and $30 million , respectively. For additional information see Note 7 , “Property and Equipment, Net" and Note 9 , "Goodwill and Trade Names." (b) Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. (c) The 2019 amounts reflect the Company's adoption of ASC 842, Leases , in the first quarter of 2019. (d) Victoria's Secret and Victoria's Secret and Bath & Body Works International includes long-lived store asset impairment charges of $70 million and $31 million , respectively, and Other includes a loss on the sale of La Senza of $99 million and Henri Bendel closures costs of $23 million . For additional information see Note 5 , “Restructuring Activities" and Note 7 , “Property and Equipment, Net." |
Consoldiated Statements of Comp
Consoldiated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Net Income (Loss) | $ (192) | $ (252) | $ 38 | $ 40 | $ 540 | $ (43) | $ 99 | $ 48 | $ (366) | $ 644 | $ 983 |
Other Comprehensive Income (Loss), Net of Tax | |||||||||||
Foreign Currency Translation | (5) | (20) | 23 | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Tax | 0 | 45 | 0 | ||||||||
Unrealized Gain (Loss) on Cash Flow Hedges | 2 | 10 | (20) | ||||||||
Reclassification of Cash Flow Hedges to Earnings | (4) | 2 | 7 | ||||||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | 0 | 0 | 2 | ||||||||
Total Other Comprehensive Income (Loss), Net of Tax | (7) | 37 | 12 | ||||||||
Total Comprehensive Income (Loss) | $ (373) | $ 681 | $ 995 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Current Assets: | ||
Cash and Cash Equivalents | $ 1,499 | $ 1,413 |
Accounts Receivable, Net | 306 | 367 |
Inventories | 1,287 | 1,248 |
Other | 153 | 232 |
Total Current Assets | 3,245 | 3,260 |
Property and Equipment, Net | 2,486 | 2,818 |
Operating Lease, Right-of-Use Asset | 3,053 | |
Goodwill | 628 | 1,348 |
Trade Names | 411 | 411 |
Deferred Tax Assets, Net, Noncurrent | 84 | 62 |
Other Assets | 218 | 191 |
Total Assets | 10,125 | 8,090 |
Current Liabilities: | ||
Accounts Payable | 647 | 711 |
Accrued Expenses and Other | 1,052 | 1,082 |
Debt, Current | 61 | 72 |
Operating Lease, Liability, Current | 478 | |
Income Taxes | 134 | 121 |
Total Current Liabilities | 2,372 | 1,986 |
Deferred Income Taxes | 219 | 226 |
Long-term Debt | 5,487 | 5,739 |
Operating Lease, Liability, Noncurrent | 3,052 | |
Other Long-term Liabilities | 490 | 1,004 |
Shareholders' Equity (Deficit): | ||
Preferred Stock—$1.00 par value; 10 shares authorized; none issued | 0 | 0 |
Common Stock—$0.50 par value; 1,000 shares authorized; 285 and 283 shares issued; 277 and 275 shares outstanding, respectively | 142 | 141 |
Paid-in Capital | 847 | 771 |
Accumulated Other Comprehensive Income | 52 | 59 |
Retained Earnings (Deficit) | (2,182) | (1,482) |
Less: Treasury Stock, at Average Cost; 8 and 8 shares, respectively | (358) | (358) |
Total L Brands, Inc. Shareholders’ Equity (Deficit) | (1,499) | (869) |
Noncontrolling Interest | 4 | 4 |
Total Equity (Deficit) | (1,495) | (865) |
Total Liabilities and Equity (Deficit) | $ 10,125 | $ 8,090 |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 01, 2020 | Feb. 02, 2019 |
Preferred Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.5 | $ 0.5 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Issued | 285,000,000 | 283,000,000 |
Common Stock, Shares, Outstanding | 277,000,000 | 275,000,000 |
Treasury Stock, Shares | 8,000,000 | 8,000,000 |
Consolidated Statements of Tota
Consolidated Statements of Total Equity (Deficit) - USD ($) shares in Thousands, $ in Millions | Total | Common Stock [Member] | Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) [Member] | Treasury Stock, at Average Cost [Member] | Noncontrolling Interest [Member] |
Ending Balance (in shares) | 286,000 | ||||||
Beginning Balance at Jan. 28, 2017 | $ (727) | $ 157 | $ 650 | $ 12 | $ 205 | $ (1,753) | $ 2 |
Beginning Balance (in shares) at Jan. 28, 2017 | 286,000 | ||||||
Net Income (Loss) | 983 | $ 0 | 0 | 0 | 983 | 0 | 0 |
Other Comprehensive Income (Loss) | $ 12 | 0 | 0 | 12 | 0 | 0 | 0 |
Common Stock, Dividends, Per Share, Declared | $ 2.40 | ||||||
Total Comprehensive Income (Loss) | $ 995 | 0 | 0 | 12 | 983 | 0 | 0 |
Dividends, Common Stock, Cash | $ (686) | $ 0 | 0 | 0 | (686) | 0 | 0 |
Treasury Stock, Shares, Acquired | 9,409 | 9,000 | |||||
Repurchase of Common Stock | $ (445) | $ 0 | 0 | 0 | 0 | (445) | 0 |
Stock Repurchased and Retired During Period, Value | 0 | (18) | (82) | (1,936) | 2,036 | ||
Treasury Stock, Retired, Cost Method, Amount | $ (18) | (82) | (1,936) | 2,036 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 3,000 | ||||||
Exercise of Stock Options and Other | 112 | $ 2 | 110 | 0 | 0 | 0 | 0 |
Ending Balance at Feb. 03, 2018 | (751) | $ 141 | 678 | 24 | (1,434) | (162) | 2 |
Ending Balance (in shares) | 286,000 | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 | 0 | 0 | 0 | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | Adjustments for New Accounting Pronouncement [Member] | (28) | (2) | (26) | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2016-01 [Member] | (2) | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | $ 141 | 678 | (162) | 2 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | Adjustments for New Accounting Pronouncement [Member] | (779) | 22 | (1,460) | ||||
Ending Balance (in shares) | 280,000 | ||||||
Beginning Balance (in shares) at Feb. 03, 2018 | 280,000 | ||||||
Net Income (Loss) | 644 | $ 0 | 0 | 0 | 644 | 0 | 0 |
Other Comprehensive Income (Loss) | $ 37 | 0 | 0 | 37 | 0 | 0 | 0 |
Common Stock, Dividends, Per Share, Declared | $ 2.40 | ||||||
Total Comprehensive Income (Loss) | $ 681 | 0 | 0 | 37 | 644 | 0 | 0 |
Dividends, Common Stock, Cash | $ (666) | $ 0 | 0 | 0 | (666) | 0 | 0 |
Treasury Stock, Shares, Acquired | 5,379 | 5,000 | |||||
Repurchase of Common Stock | $ (196) | $ 0 | 0 | 0 | 0 | (196) | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | ||||||
Exercise of Stock Options and Other | 95 | $ 0 | 93 | 0 | 0 | 0 | 2 |
Ending Balance at Feb. 02, 2019 | (865) | $ 141 | 771 | 59 | (1,482) | (358) | 4 |
Ending Balance (in shares) | 280,000 | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | Adjustments for New Accounting Pronouncement [Member] | (2) | (2) | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | $ 141 | 771 | 59 | (358) | 4 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | Adjustments for New Accounting Pronouncement [Member] | $ (867) | (1,484) | |||||
Ending Balance (in shares) | 275,000 | 275,000 | |||||
Beginning Balance (in shares) at Feb. 02, 2019 | 275,000 | 275,000 | |||||
Net Income (Loss) | $ (366) | $ 0 | 0 | 0 | (366) | 0 | 0 |
Other Comprehensive Income (Loss) | $ (7) | 0 | 0 | (7) | 0 | 0 | 0 |
Common Stock, Dividends, Per Share, Declared | $ 1.20 | ||||||
Total Comprehensive Income (Loss) | $ (373) | 0 | 0 | (7) | (366) | 0 | 0 |
Dividends, Common Stock, Cash | (332) | $ 0 | 0 | 0 | (332) | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 2,000 | ||||||
Exercise of Stock Options and Other | 77 | $ 1 | 76 | 0 | 0 | 0 | 0 |
Ending Balance at Feb. 01, 2020 | $ (1,495) | $ 142 | $ 847 | $ 52 | $ (2,182) | $ (358) | $ 4 |
Ending Balance (in shares) | 275,000 | 275,000 | |||||
Ending Balance (in shares) | 277,000 | 277,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Net Income (Loss) Attributable to Parent | $ (366) | $ 644 | $ 983 |
Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: | |||
Depreciation of Long-lived Assets | 588 | 590 | 571 |
Amortization of Landlord Allowances | 0 | (43) | (47) |
Share-based Compensation Expense | 87 | 97 | 102 |
Deferred Income Taxes | (29) | (52) | (108) |
Impairment of Goodwill | 720 | 0 | 0 |
Impairment of Long-Lived Assets Held-for-use | 263 | 101 | 0 |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 0 | 99 | 0 |
Gain (Loss) on Extinguishment of Debt | (40) | 0 | (45) |
La Senza Charges | 37 | 0 | 0 |
Unrealized Gain (Loss) on Securities | 0 | 6 | 0 |
Changes in Assets and Liabilities, Net of Assets and Liabilities related to Divestitures: | |||
Accounts Receivable | 31 | (63) | (13) |
Inventories | (40) | (40) | (137) |
Accounts Payable, Accrued Expenses and Other | (93) | 29 | 50 |
Income Taxes Payable | 18 | (113) | (40) |
Other Assets and Liabilities | (15) | 130 | 20 |
Net Cash Provided by (Used for) Operating Activities | 1,236 | 1,377 | 1,406 |
Investing Activities | |||
Capital Expenditures | (458) | (629) | (707) |
Proceeds from Sale and Maturity of Marketable Securities | 10 | ||
Other Investing Activities | (22) | 20 | 9 |
Net Cash Used for Investing Activities | (480) | (609) | (698) |
Financing Activities | |||
Proceeds from Debt, Net of Issuance Costs | 486 | 0 | 495 |
Repayments of Long-term Debt | (799) | (52) | (540) |
Proceeds from Lines of Credit | 12 | 92 | 0 |
Repayments of Lines of Credit | (12) | (92) | 0 |
Payments of Dividends | (332) | (666) | (686) |
Repurchases of Common Stock | 0 | (198) | (446) |
Payment, Tax Withholding, Share-based Payment Arrangement | (13) | (13) | (32) |
Proceeds From Exercise of Stock Options | 1 | 1 | 38 |
Proceeds from (Payments for) Other Financing Activities | (14) | (7) | (8) |
Net Cash Provided by (Used for) Financing Activities | (666) | (872) | (1,127) |
Effects of Exchange Rate Changes on Cash | (4) | 2 | 0 |
Net Increase (Decrease) in Cash and Cash Equivalents | 86 | (102) | (419) |
Cash and Cash Equivalents, Beginning of Year | 1,413 | 1,515 | 1,934 |
Cash and Cash Equivalents, End of Year | 1,499 | 1,413 | 1,515 |
Foreign Facilities [Member] | |||
Financing Activities | |||
Proceeds from Lines of Credit | 167 | 172 | 96 |
Repayments of Lines of Credit | (162) | (109) | (44) |
Easton Investment [Member] | |||
Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: | |||
Gain (Loss) on Equity Method Investment Dividends Or Distributions | (5) | (8) | (20) |
Investing Activities | |||
Proceeds from Equity Method Investment, Distribution, Return of Capital | $ 7 | $ 16 | $ 29 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 01, 2020 | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business L Brands, Inc. (the "Company”) operates in the highly competitive specialty retail business. The Company is a specialty retailer of women’s intimate and other apparel, personal care, beauty and home fragrance products. The Company sells its merchandise through company-owned specialty retail stores in the U.S., Canada, U.K., Ireland and Greater China, 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 On February 20, 2020, the Company and SP VS Buyer LP ("Sycamore''), an affiliate of Sycamore Partners Management, L.P., entered into a Transaction Agreement pursuant to which, among other things, the Company will transfer certain assets and liabilities relating to its business conducted under the Victoria's Secret and PINK brands to a newly formed subsidiary of the Company ("Victoria's Secret Holdco'') and sell 55% of the equity interests of Victoria's Secret Holdco to Sycamore. The Company will retain 45% of the equity interests of Victoria's Secret Holdco. For additional information, see Note 23 , "Subsequent Events." Fiscal Year The Company's fiscal year ends on the Saturday nearest to January 31. As used herein, “ 2019 ” and " 2018 " refer to the 52-week periods ended February 1, 2020 and February 2, 2019 , respectively. “ 2017 ” refers to the 53-week period ended February 3, 2018 . 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 in the Consolidated Statements of Income (Loss). The Company’s share of net income or loss of all other unconsolidated entities is included in Other Income (Loss) in the Consolidated Statements of Income (Loss). The Company’s equity method investments are required to be reviewed for impairment when it is determined there may be an other than temporary loss in value. On January 6, 2019, the Company completed the sale of the La Senza business. For additional information, see Note 5 , "Restructuring Activities." Cash and Cash Equivalents Cash and Cash Equivalents include cash on hand, demand deposits with financial institutions and highly liquid investments with original maturities of less than 90 days. The Company’s outstanding checks, which totaled $15 million as of February 1, 2020 and $13 million as of February 2, 2019 , are included in Accounts Payable on the Consolidated Balance Sheets. Concentration of Credit Risk The Company maintains cash and cash equivalents and derivative contracts with various major financial institutions. The Company monitors the relative credit standing of financial institutions with whom the Company transacts and limits the amount of credit exposure with any one entity. Typically, the Company’s investment portfolio is primarily comprised of U.S. government obligations, U.S. Treasury and AAA-rated money market funds, commercial paper and bank deposits. The Company also periodically reviews the relative credit standing of franchise, license and wholesale partners and other entities to which the Company grants credit terms in the normal course of business. The Company records an allowance for uncollectable accounts when it becomes probable that the counterparty will be unable to pay. Inventories Inventories are principally valued at the lower of cost or net realizable value, on a weighted-average cost basis. The Company records valuation adjustments to its inventories if the cost of inventory on hand exceeds the amount it expects to realize from the ultimate sale or disposal of the inventory. These estimates are based on management’s judgment regarding future demand, market conditions and analysis of historical experience. The Company also records inventory loss adjustments for estimated physical inventory losses that have occurred since the date of the last physical inventory. These estimates are based on management’s analysis of historical results and operating trends. Advertising Costs Advertising and marketing costs are expensed at the time the promotion first appears in media, in the store or when the advertising is mailed. Advertising and marketing costs totaled $428 million for 2019 , $476 million for 2018 and $383 million for 2017 . Property and Equipment The Company’s property and equipment are recorded at cost and depreciation is computed on a straight-line basis using the following depreciable life ranges: Category of Property and Equipment Depreciable Life Range Software, including software developed for internal use 3 - 5 years Store related assets 3 - 10 years Leasehold improvements Shorter of lease term or 10 years Non-store related building and site improvements 10 - 15 years Other property and equipment 20 years Buildings 30 years When a decision has been made to dispose of property and equipment prior to the end of the previously estimated useful life, depreciation estimates are revised to reflect the use of the asset over the shortened estimated useful life. The Company’s cost of assets sold or retired and the related accumulated depreciation are removed from the accounts with any resulting gain or loss included in net income (loss). Maintenance and repairs are charged to expense as incurred. Major renewals and betterments that extend useful lives are capitalized. Long-lived store assets, which include leasehold improvements, store related assets and operating lease assets (subsequent to the adoption of ASC 842, Leases ), are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Store assets are grouped at the lowest level for which they are largely independent of other assets or asset groups. If the estimated undiscounted future cash flows related to the asset group are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the estimated fair value, determined by the estimated discounted future cash flows of the asset group. For operating lease assets, the Company determines the fair value of the assets by comparing the contractual rent payments to estimated market rental rates. An individual asset within an asset group is not impaired below its estimated fair value. The fair value of long-lived store assets are determined using Level 3 inputs within the fair value hierarchy. Leases and Leasehold Improvements In the first quarter of 2019, the Company adopted ASC 842, Leases , using the modified retrospective approach. Results for 2019 are presented under ASC 842, while the prior period consolidated financial statements have not been adjusted and continue to be presented under the accounting standard in effect at that time. The Company leases retail space, office space, warehouse facilities, storage space, equipment and certain other items under operating leases. A substantial portion of the Company’s leases are operating leases for its stores, which generally have an initial term of ten years. Annual store rent consists of a fixed minimum amount and/or variable rent based on a percentage of sales exceeding a stipulated amount. Store lease terms generally also require additional payments covering certain operating costs such as common area maintenance, utilities, insurance and taxes. Certain leases contain predetermined fixed escalations of minimum rentals or require periodic adjustments of minimum rentals depending on an index or rate. Additionally, certain leases contain incentives, such as construction allowances from landlords and/or rent abatements subsequent to taking possession of the leased property. At lease commencement, the Company recognizes an asset for the right to use the leased asset and a liability based on the present value of the unpaid fixed lease payments. Operating lease costs are recognized on a straight-line basis as lease expense over the lease term. Variable lease payments associated with the Company's leases are recognized upon occurrence of the event or circumstance on which the payments are assessed. Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet, and lease expense is recognized on a straight-line basis over the lease term. The Company uses its incremental borrowing rate, adjusted for collateral, to determine the present value of its unpaid lease payments. The Company’s store leases often include options to extend the initial term or to terminate the lease prior to the end of the initial term. The exercise of these options is typically at the sole discretion of the Company. These options are included in determining the initial lease term at lease commencement if the Company is reasonably certain to exercise the option. Additionally, the Company may operate stores for a period of time on a month-to-month basis after the expiration of the lease term. The Company also has leasehold improvements which are amortized over the shorter of their estimated useful lives or the period from the date the assets are placed in service to the end of the initial lease term. Leasehold improvements made after the inception of the initial lease term are depreciated over the shorter of their estimated useful lives or the remaining lease term, including renewal periods, if reasonably assured. Goodwill and Intangible Assets The Company has certain intangible assets resulting from business combinations and acquisitions that are recorded at cost. Goodwill is reviewed for impairment at the reporting unit level each year in the fourth quarter, and may be reviewed more frequently if certain events occur or circumstances change. The Company has the option to either first perform a qualitative assessment to determine whether it is more likely than not that each reporting unit's fair value is less than its carrying value (including goodwill), or to proceed directly to the quantitative assessment which requires a comparison of the reporting unit's fair value to its carrying value (including goodwill). If the Company determines that the fair value of a reporting unit is less than its carrying value, the Company recognizes an impairment charge equal to the difference, not to exceed the total amount of goodwill allocated to the reporting unit. The Company's reporting units are determined in accordance with the provisions of ASC 350, Intangibles - Goodwill and Other . Intangible assets with indefinite lives represent the Victoria’s Secret and Bath & Body Works trade names. Intangible assets with indefinite lives are reviewed for impairment each year in the fourth quarter and may be reviewed more frequently if certain events occur or circumstances change. The Company has the option to either first perform a qualitative assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired, or to proceed directly to the quantitative assessment which requires a comparison of the fair value of the intangible asset to its carrying value. To determine if the fair value of the asset is less than its carrying amount, the Company will estimate the fair value, usually determined by the relief from royalty method under the income approach, and compare that value with its carrying amount. If the carrying value of the intangible asset exceeds its fair value, the Company recognizes an impairment charge equal to the difference. Foreign Currency Translation The functional currency of the Company’s foreign operations is generally the applicable local currency. Assets and liabilities are translated into U.S. dollars using the current exchange rates in effect as of the balance sheet date, while revenues and expenses are translated at the average exchange rates for the period. The Company’s resulting translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in shareholders’ equity. Accumulated foreign currency translation adjustments are reclassified to net income (loss) when realized upon sale or upon complete, or substantially complete, liquidation of the investment in the foreign entity. Derivative Financial Instruments The Company uses derivative financial instruments to manage exposure to foreign currency exchange rates. The Company does not use derivative instruments for trading purposes. All derivative instruments are recorded on the Consolidated Balance Sheets at fair value. For derivative financial instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (loss) in shareholders’ equity and reclassified into earnings in the same period during which the hedged item affects earnings. Gains and losses that are reclassified into earnings are recognized in the same line item on the Consolidated Statement of Income (Loss) as the underlying hedged item. For derivative financial instruments that are not designated as hedging instruments, the gain or loss on the derivative instrument is recognized in current earnings in Other Income (Loss) on the Consolidated Statements of Income (Loss). Fair Value The authoritative guidance included in ASC 820, Fair Value Measurement, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. This authoritative guidance further establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1—Quoted market prices in active markets for identical assets or liabilities. • Level 2—Observable inputs other than quoted market prices included in Level 1, such as quoted prices of similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company estimates the fair value of financial instruments, property and equipment and goodwill and intangible assets in accordance with the provisions of ASC 820 . Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, taxes currently payable or refundable are accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are also recognized for realizable operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted income tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in income tax rates is recognized in the Company’s Consolidated Statement of Income (Loss) in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if it is more likely than not that such assets will not be realized. In determining the Company’s provision for income taxes, the Company considers permanent differences between book and tax income and statutory income tax rates. The Company’s effective income tax rate is affected by items including changes in tax law, the tax jurisdiction of new stores or business ventures and the level of earnings. The Company follows a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and for which actual outcomes may differ from forecasted outcomes. The Company's policy is to include interest and penalties related to uncertain tax positions in income tax expense. The Company’s income tax returns, like those of most companies, are periodically audited by domestic and foreign tax authorities. These audits include questions regarding the Company’s tax filing positions, including the timing and amount of deductions and the allocation of income among various tax jurisdictions. At any one time, multiple tax years are subject to audit by the various tax authorities. A number of years may elapse before a particular matter for which the Company has established an accrual is audited and fully resolved or clarified. The Company adjusts its tax contingencies accrual and income tax provision in the period in which matters are effectively settled with tax authorities at amounts different from its established accrual, when the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. The Company includes its tax contingencies accrual, including accrued penalties and interest, in Other Long-term Liabilities on the Consolidated Balance Sheets unless the liability is expected to be paid within one year. Changes to the tax contingencies accrual, including accrued penalties and interest, are included in Provision for Income Taxes on the Consolidated Statements of Income (Loss). Self-Insurance The Company is self-insured for medical, workers’ compensation, property, general liability and automobile liability up to certain stop-loss limits. Such costs are accrued based on known claims and an estimate of incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information and actuarial estimates. Noncontrolling Interest Noncontrolling interest represents the portion of equity interests of consolidated affiliates not owned by the Company. Share-based Compensation The Company recognizes all share-based payments to employees and directors as compensation cost over the service period based on their estimated fair value on the date of grant. The Company estimates award forfeitures at the time awards are granted and adjusts, if necessary, in subsequent periods based on historical experience and expected future forfeitures. Compensation cost is recognized over the service period for the fair value of awards that actually vest. Compensation expense for awards without a performance condition is recognized, net of estimated forfeitures, using a single award approach (each award is valued as one grant, irrespective of the number of vesting tranches). Compensation expense for awards with a performance condition is recognized, net of estimated forfeitures, using a multiple award approach (each vesting tranche is valued as one grant). Revenue Recognition In the first quarter of 2018, the Company adopted ASC 606, Revenue from Contracts with Customers , using the modified retrospective approach. Results for 2019 and 2018 are presented under ASC 606, while results for 2017 have not been adjusted and continue to be presented under the accounting standards in effect for that period. 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 reflect 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 in the Consolidated Statements of Income (Loss). 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 offers certain loyalty programs that allow customers to earn points based on purchasing activity. As customers accumulate points and reach point thresholds, they can 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 sells 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 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 (Loss). 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 2019 and 2018 Consolidated Statements of Income (Loss). The Company also recognizes revenues associated with franchise, license, wholesale and sourcing arrangements. Revenue recognized under franchise and license arrangements generally consists of royalties earned and recognized upon sale of merchandise by franchise and license partners to retail customers. Revenue is generally recognized under wholesale and sourcing arrangements at the time the title passes to the partner. Costs of Goods Sold, Buying and Occupancy The Company’s costs of goods sold include merchandise costs, net of discounts and allowances, freight and inventory shrinkage. The Company’s buying and occupancy expenses primarily include payroll, benefit costs and operating expenses for its buying departments and distribution network, rent, common area maintenance, real estate taxes, utilities, maintenance, fulfillment expenses and depreciation for the Company’s stores, warehouse facilities and equipment. General, Administrative and Store Operating Expenses The Company’s general, administrative and store operating expenses primarily include payroll and benefit costs for its store-selling and administrative departments (including corporate functions), marketing, advertising and other operating expenses not specifically categorized elsewhere in the Consolidated Statements of Income (Loss). Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. Actual results may differ from those estimates, and the Company revises its estimates and assumptions as new information becomes available. |
New Accounting Pronouncements (
New Accounting Pronouncements (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
New Accounting Pronouncements Text Block [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | New Accounting Pronouncements Leases In February 2016, the FASB issued ASC 842, Leases , which requires companies classified as lessees to account for most leases on their balance sheet but recognize expense on their income statement in a manner similar to legacy accounting. The standard also requires enhanced quantitative and qualitative disclosures, including significant judgments made by management, to provide greater insight into the extent of expense recognized and expected to be recognized from existing leases. In July 2018, the FASB approved an amendment to the standard that provides companies a modified retrospective transition option that did not require earlier periods to be restated upon adoption. The Company adopted the standard in the first quarter of 2019 under the modified retrospective approach. As allowed by the new standard, the Company elected the package of transition practical expedients but elected to not apply the hindsight practical expedient to its leases at transition. Upon adoption at the beginning of 2019, the Company recorded operating lease liabilities of $3.7 billion and operating lease assets for its leases of $3.3 billion . The operating lease assets are net of $470 million of liabilities for deferred rent and unamortized landlord construction allowances that were previously recorded as Other Long-term Liabilities on the Consolidated Balance Sheet. The Company also recorded a decrease to opening retained earnings, net of tax, of $2 million . The adoption of the standard did not materially impact the Consolidated Statements of Income (Loss) or Cash Flows. See Note 8 , “Leases” for additional disclosures required by the new standard. Hedging Activities In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities , which is intended to better align risk management activities and financial reporting for hedging relationships. The 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. The Company adopted the standard in the first quarter of 2019. The adoption of this standard did not have a material impact on the Company's consolidated results of operations, financial position or cash flows. Goodwill In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment , which simplifies the subsequent measurement of goodwill. The standard eliminates the second step from the goodwill impairment test, which required a hypothetical purchase price allocation to determine the implied fair value of goodwill. Under the new standard, the goodwill impairment charge is the excess of the reporting unit's carrying value over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The Company adopted this standard in the third quarter of 2019 and performed its interim and annual goodwill impairment assessments in accordance with ASU 2017-04. For additional information, see Note 9 , "Goodwill and Trade Names." Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which requires the use of a forward-looking expected loss impairment model for accounts receivable and certain other financial instruments. This guidance will be effective beginning in fiscal 2020, with early adoption permitted. The Company does not expect this standard to have a material impact on its consolidated results of operations, financial position or cash flows. |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
Revenue from Contract with Customer [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 2019 and 2018 are presented under ASC 606, while results for 2017 have not been adjusted and continue to be presented under the accounting standards in effect in that period. Accounts receivable, net from revenue-generating activities were $152 million as of February 1, 2020 and $150 million as of February 2, 2019 . 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 90 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 and private label credit card programs and direct channel shipments, which are all impacted by seasonal and holiday-related sales patterns. The balance of deferred revenue was $342 million as of February 1, 2020 and $331 million as of February 2, 2019 . The Company recognized $218 million as revenue in 2019 from amounts recorded as deferred revenue at the beginning of the period. As of February 1, 2020 , the Company recorded deferred revenues of $330 million within Accrued Expenses and Other, and $12 million within Other Long-term Liabilities on the Consolidated Balance Sheet. The following table provides a disaggregation of Net Sales for 2019 , 2018 and 2017 : 2019 2018 2017 (a) (in millions) Victoria’s Secret Stores (b) $ 5,112 $ 5,628 $ 5,879 Victoria’s Secret Direct 1,693 1,747 1,508 Total Victoria’s Secret 6,805 7,375 7,387 Bath & Body Works Stores (b) 4,212 3,907 3,589 Bath & Body Works Direct 958 724 559 Total Bath & Body Works 5,170 4,631 4,148 Victoria's Secret and Bath & Body Works International (c) 600 605 502 Other (d) 339 626 595 Total Net Sales $ 12,914 $ 13,237 $ 12,632 _______________ (a) 2017 represents a 53-week fiscal year. (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. Results for 2018 and 2017 also include store and direct sales for Henri Bendel and La Senza. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Feb. 01, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Earnings per basic share is computed based on the weighted-average number of outstanding common shares. Earnings per diluted share include the weighted-average effect of dilutive options and restricted stock on the weighted-average shares outstanding. The following table provides shares utilized for the calculation of basic and diluted earnings per share for 2019 , 2018 and 2017 : 2019 2018 2017 (a) (in millions) Weighted-average Common Shares: Issued Shares 284 283 308 Treasury Shares (8 ) (7 ) (24 ) Basic Shares 276 276 284 Effect of Dilutive Options and Restricted Stock — 3 3 Diluted Shares 276 279 287 Anti-dilutive Options and Awards (b) 9 5 4 ________________ (a) In November 2017, the Company retired 36 million shares of its Treasury Stock. (b) These options and awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For 2019, the dilutive impact of outstanding options and awards were excluded from dilutive shares as a result of the Company's net loss for the period. |
Restructuring Activities (Notes
Restructuring Activities (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring Activities La Senza On January 6, 2019, in an effort to increase shareholder value and in order to focus on its larger core businesses, the Company divested its ownership interest in La Senza to an affiliate of Regent LP, a global private equity firm. Regent LP assumed La Senza’s operating assets and liabilities in exchange for potential future consideration upon the sale or other monetization of La Senza, as defined in the agreement. In the fourth quarter of 2018, the Company recognized a pre-tax loss on the divestiture of $99 million , primarily related to $45 million of accumulated foreign currency translation adjustments reclassified into earnings that were previously recognized as a component of equity, as well as losses related to the transfer of the net working capital and long-lived store assets to the buyer. The loss is included in Loss on Divestiture of La Senza in the 2018 Consolidated Statement of Income (Loss). The after-tax loss on the divestiture was $55 million , which includes $44 million of tax benefits primarily associated with the recognition of previously unrecognized deferred tax assets. In 2019, the Company received cash proceeds of $12 million related to a net working capital settlement from the divestiture. These proceeds are included within Investing Activities in the 2019 Consolidated Statement of Cash Flows. In conjunction with the transaction, certain of the Company's subsidiaries have remaining contingent obligations related to La Senza lease payments under the terms of existing noncancelable leases. In 2019, the Company's subsidiaries recognized pre-tax non-cash charges of $37 million to increase the reserves for potential exposure related to the La Senza business. These charges are included in Other Income (Loss) in the 2019 Consolidated Statement of Income (Loss). For additional information, see Note 17 , "Commitments and Contingencies." Additionally, the Company continues to provide technology and other operational support to La Senza for a period of time expected to continue into fiscal 2020. Henri Bendel The Company announced the closure of Henri Bendel in the third quarter of 2018. As a result, the Company recognized a pre-tax charge, primarily cash, consisting of lease termination costs, severance and other costs of $20 million in the third quarter of 2018. In the fourth quarter of 2018, the Company recognized an additional pre-tax charge of $3 million , primarily related to contract termination and employee retention costs. Restructuring charges of $14 million and $9 million |
Inventories
Inventories | 12 Months Ended |
Feb. 01, 2020 | |
Inventories | Inventories The following table provides details of inventories as of February 1, 2020 and February 2, 2019 : February 1, February 2, (in millions) Finished Goods Merchandise $ 1,152 $ 1,107 Raw Materials and Merchandise Components 135 141 Total Inventories $ 1,287 $ 1,248 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Feb. 01, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net The following table provides details of property and equipment, net as of February 1, 2020 and February 2, 2019 : February 1, February 2, (in millions) Land and Improvements $ 116 $ 116 Buildings and Improvements 496 492 Furniture, Fixtures, Software and Equipment 3,861 3,725 Leasehold Improvements 2,018 2,277 Construction in Progress 122 123 Total 6,613 6,733 Accumulated Depreciation and Amortization (4,127 ) (3,915 ) Property and Equipment, Net $ 2,486 $ 2,818 Depreciation expense was $588 million in 2019 , $590 million in 2018 and $571 million in 2017 . Long-Lived Store Assets In 2019 and 2018, the Company concluded that the negative operating results for certain of its Victoria's Secret stores were an indicator of potential impairment of the related store asset groups. The Company determined that the estimated undiscounted future cash flows were less than the carrying values and, as a result, determined the estimated fair values of the store asset groups using estimated discounted future cash flows and estimated market rental rates. Long-lived store asset impairment charges are included in Costs of Goods Sold, Buying & Occupancy in the Consolidated Statements of Income (Loss). The following table provides long-lived store asset impairment charges included in the Consolidated Statements of Income (Loss) for 2019 and 2018 : Store Asset Impairment Operating Lease Asset Impairment Total Impairment 2019 2018 2019 2018 2019 2018 (in millions) Victoria's Secret (a) $ 47 $ 70 $ 4 $ — $ 51 $ 70 Victoria's Secret and Bath & Body Works International (b) 151 31 61 — 212 31 Total $ 198 $ 101 $ 65 $ — $ 263 $ 101 ________________ (a) Includes stores in the U.S. and Canada. (b) Includes stores in Greater China, the U.K. and Ireland. |
Leases
Leases | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Leases | Leases In the first quarter of 2019, the Company adopted ASC 842, Leases , using the modified retrospective approach. Results for 2019 are presented under ASC 842, while prior periods consolidated financial statements have not been adjusted and continue to be presented under the accounting standards in effect at that time. For leases entered into or reassessed after the adoption of the new standard, the Company has elected the practical expedient allowed by the standard to account for all fixed consideration in a lease as a single lease component. Therefore, the lease payments used to measure the lease liability for these leases include fixed minimum rentals along with fixed operating costs such as common area maintenance and utilities. The Company has provided residual value guarantees in connection with noncancelable operating leases of certain assets. For additional information, see Note 17 , “Commitments and Contingencies.” The following table provides the components of lease cost for operating leases for 2019 : (in millions) Operating Lease Costs (a) $ 769 Variable Lease Costs 100 Short-term Lease Costs 30 Total Lease Cost $ 899 _______________ (a) As discussed in Note 7 , "Property and Equipment, Net," the Company recognized operating lease asset impairment charges of $65 million during 2019 , which is included as additional operating lease costs. The following table provides future maturities of operating lease liabilities as of February 1, 2020 : Fiscal Year (in millions) 2020 $ 674 2021 693 2022 619 2023 558 2024 481 Thereafter 1,475 Total Lease Payments $ 4,500 Less: Interest (970 ) Present Value of Operating Lease Liabilities $ 3,530 As of February 1, 2020 , the Company has additional operating lease commitments that have not yet commenced of approximately $264 million . The following table provides the weighted-average remaining lease term and discount rate for operating leases with lease liabilities as of February 1, 2020 : Weighted Average Remaining Lease Term (years) 7.4 Weighted Average Discount Rate 6.2 % During 2019 , the Company paid $708 million for operating lease liabilities recorded on the balance sheet. These payments are included within the Operating Activities section of the 2019 Consolidated Statement of Cash Flows. During 2019 , the Company obtained $313 million of additional lease assets as a result of new operating lease obligations. Finance Leases The Company leases certain fulfillment equipment under finance leases that expire at various dates through 2023. The Company records finance lease assets, net of accumulated amortization, in Property and Equipment, Net on the Consolidated Balance Sheet. Additionally, the Company records finance lease liabilities in Accrued Expenses and Other and Other Long-term Liabilities on the Consolidated Balance Sheet. Finance lease costs are comprised of the straight-line amortization of the lease asset and the accretion of interest expense under the effective interest method. The Company recorded $21 million and $26 million of finance lease assets, net of accumulated amortization, in Property and Equipment, Net on the February 1, 2020 and February 2, 2019 Consolidated Balance Sheets, respectively. Additionally, the Company recorded finance lease liabilities of $8 million in Accrued Expenses and Other and $13 million in Other Long-term Liabilities on the February 1, 2020 Consolidated Balance Sheet, and $8 million in Accrued Expenses and Other and $19 million in Other Long-term Liabilities on the February 2, 2019 Consolidated Balance Sheet. Asset Retirement Obligations The Company has asset retirement obligations related to certain company-owned international stores that contractually obligate the Company to remove leasehold improvements at the end of a lease. The Company's liabilities for asset retirement obligations totaled $22 million as of February 1, 2020 and $18 million as of February 2, 2019 . These liabilities are included in Other Long-term Liabilities on the Consolidated Balance Sheets. Disclosures for 2018 and 2017 The following table provides rent expense, as presented under the prior accounting standard, for 2018 and 2017 : 2018 2017 (in millions) Store Rent: Fixed Minimum $ 663 $ 642 Contingent 72 67 Total Store Rent 735 709 Office, Equipment and Other 98 94 Gross Rent Expense 833 803 Sublease Rental Income (2 ) (2 ) Total Rent Expense $ 831 $ 801 |
Goodwill and Trade Names
Goodwill and Trade Names | 12 Months Ended |
Feb. 01, 2020 | |
Goodwill, Trade Names and Other Intangible Assets, Net [Abstract] | |
Goodwill and Trade Names | Goodwill and Trade Names Goodwill The following table provides detail regarding the composition of goodwill as of February 1, 2020 and February 2, 2019 : February 1, 2020 February 2, 2019 (in millions) Bath & Body Works $ 628 $ 628 Victoria's Secret — 690 Victoria's Secret and Bath & Body Works International — 30 Goodwill $ 628 $ 1,348 As of the end of the third quarter of 2019, the Company performed a quantitative interim impairment assessment over the Victoria's Secret and Greater China reporting units. An interim assessment was performed in consideration of the negative performance of these reporting units and their impact on the sustained decline in the Company's market capitalization. Further, for the Greater China reporting unit, the Company considered the results of the long-lived store asset impairment assessment. The interim assessment concluded that the fair value of the Victoria's Secret reporting unit, which was based on a weighted average of the income and market approaches, exceeded its carrying value. However, the fair value of the Greater China reporting unit, which was based on the income approach, did not exceed its carrying value. Accordingly, the Company recognized a goodwill impairment charge of $30 million in the third quarter of 2019 related to the Greater China reporting unit. This charge is included in Impairment of Goodwill in the 2019 Consolidated Statement of Income (Loss). As of the end of the fourth quarter of 2019, the Company performed its annual goodwill impairment assessment over the Bath & Body Works and Victoria's Secret reporting units. The fair value of the Bath & Body Works reporting unit was estimated using a weighted average of the income and market approaches. As a result of continued fourth quarter declines in business performance and increased risk, volatility and uncertainty related to the Victoria's Secret reporting unit, the Company estimated its fair value using a market approach. The annual assessment concluded that the fair value of the Victoria's Secret reporting unit did not exceed its carrying value. Accordingly, the Company recognized a goodwill impairment charge of $690 million in the fourth quarter of 2019 related to the Victoria's Secret reporting unit. This charge is included in Impairment of Goodwill in the 2019 Consolidated Statement of Income (Loss). The annual assessment also concluded that the fair value of the Bath & Body Works reporting unit exceeded its carrying value. The market approach is based on earnings multiples of selected guideline public companies, while the income approach is based on estimated discounted future cash flows. The approaches, which are determined using Level 3 inputs within the fair value hierarchy, incorporated a number of significant assumptions and judgments including, but not limited to, estimated future cash flows, multiples of earnings of similar public companies, discount rates, income tax rates, terminal growth rates and an implied control premium relative to the Company's market capitalization. Intangible Assets—Indefinite Lives Intangible assets with indefinite lives represent the Victoria’s Secret and Bath & Body Works trade names. The following table provides additional detail regarding the composition of trade names as of February 1, 2020 and February 2, 2019 : February 1, 2020 February 2, 2019 (in millions) Victoria's Secret $ 246 $ 246 Bath & Body Works 165 165 Trade Names $ 411 $ 411 As of the end of the third quarter of 2019, the Company performed a quantitative interim impairment assessment of the Victoria's Secret trade name. An interim assessment was performed in consideration of the negative performance of Victoria's Secret. To estimate the fair value of the Victoria's Secret trade name, the Company used the relief from royalty method under the income approach. The interim assessment concluded that the fair value of the Victoria's Secret trade name exceeded its carrying value. As of the end of the fourth quarter of 2019, the Company performed its annual impairment assessment of the Victoria's Secret and Bath & Body Works trade names. To estimate the fair value of the trade names, the Company used the relief from royalty method under the income approach. The annual assessment concluded that the fair values of the trade names were in excess of their respective carrying values. |
Equity Investments and Other
Equity Investments and Other | 12 Months Ended |
Feb. 01, 2020 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |
Equity Investments and Other | Equity 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 $118 million as of February 1, 2020 and $89 million as of February 2, 2019 , 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. The Company received cash distributions of $7 million , $16 million and $29 million during 2019 , 2018 and 2017 , respectively, from certain of its Easton investments which are included as return of capital within Investing Activities of the Consolidated Statements of Cash Flows. As a result of these distributions, the Company recognized pre-tax gains totaling $5 million , $8 million and $20 million during 2019 , 2018 and 2017 , respectively, which are included in Other Income (Loss) in the Consolidated Statements of Income (Loss). |
Accrued Expenses and Other
Accrued Expenses and Other | 12 Months Ended |
Feb. 01, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses and Other | Accrued Expenses and Other The following table provides additional information about the composition of Accrued Expenses and Other as of February 1, 2020 and February 2, 2019 : February 1, February 2, 2019 (in millions) Deferred Revenue, Principally from Gift Card Sales $ 330 $ 316 Compensation, Payroll Taxes and Benefits 216 215 Interest 94 92 Taxes, Other than Income 74 78 Accrued Claims on Self-insured Activities 40 45 Rent 35 39 Returns Reserve 23 27 Other 240 270 Total Accrued Expenses and Other $ 1,052 $ 1,082 |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Current income tax expense represents the amounts expected to be reported on the Company’s income tax returns, and deferred tax expense or benefit represents the change in net deferred tax assets and liabilities. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Valuation allowances are recorded as appropriate to reduce deferred tax assets to the amount considered likely to be realized. On December 22, 2017, the Tax Cuts and Jobs Act (the "TCJA") was enacted into law. The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. The TCJA reduced the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. The following table provides the components of the Company’s provision for income taxes for 2019 , 2018 and 2017 : 2019 2018 2017 (in millions) Current: U.S. Federal $ 156 $ 212 $ 366 U.S. State 35 37 49 Non-U.S. 23 16 22 Total 214 265 437 Deferred: U.S. Federal (7 ) (4 ) (114 ) U.S. State 1 2 6 Non-U.S. (23 ) (50 ) — Total (29 ) (52 ) (108 ) Provision for Income Taxes $ 185 $ 213 $ 329 The non-U.S. component of pre-tax income, arising principally from overseas operations, was a loss of $ 226 million, loss of $14 million and income of $99 million for 2019 , 2018 and 2017 , respectively. The following table provides the reconciliation between the statutory federal income tax rate and the effective tax rate for 2019 , 2018 and 2017 : 2019 2018 2017 Federal Income Tax Rate 21.0 % 21.0 % 33.7 % State Income Taxes, Net of Federal Income Tax Effect (23.0 %) 6.0 % 3.6 % Impact of Non-U.S. Operations (5.7 %) 2.3 % (1.4 %) Goodwill Impairment (80.8 %) — % — % Change in Valuation Allowance (18.5 %) (1.1 %) (0.1 %) Divestiture of La Senza — % (2.7 %) — % U.S. Net Deferred Tax Liability Remeasurement — % — % (12.1 %) Deemed Mandatory Repatriation — % — % 5.1 % Share-Based Compensation (7.7 %) 1.0 % (1.0 %) Uncertain Tax Positions 12.3 % (0.5 %) (1.2 %) Other Items, Net 0.5 % (1.1 %) (1.5 %) Effective Tax Rate (101.9 %) 24.9 % 25.1 % Deferred Taxes The following table provides the effect of temporary differences that cause deferred income taxes as of February 1, 2020 and February 2, 2019 . Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carryforwards at the end of the respective year. February 1, 2020 February 2, 2019 Assets Liabilities Total Assets Liabilities Total (in millions) Operating Loss Carryforwards $ 247 $ — $ 247 $ 217 $ — $ 217 Non-qualified Retirement Plan 62 — 62 64 — 64 Leases 746 (712 ) 34 50 — 50 Share-based Compensation 40 — 40 47 — 47 Deferred Revenue 20 — 20 28 — 28 Property and Equipment — (230 ) (230 ) — (278 ) (278 ) Trade Names and Other Intangibles — (94 ) (94 ) — (93 ) (93 ) Other Assets — (60 ) (60 ) — (60 ) (60 ) Other, Net 70 (20 ) 50 60 (27 ) 33 Valuation Allowance (204 ) — (204 ) (172 ) — (172 ) Total Deferred Income Taxes $ 981 $ (1,116 ) $ (135 ) $ 294 $ (458 ) $ (164 ) As of February 1, 2020 , the Company had available for state income tax purposes net operating loss carryforwards which expire, if unused, in the years 2020 through 2039 . For those states where the Company has determined that it is more likely than not that the state net operating loss carryforwards will not be realized, a valuation allowance has been provided. As of February 1, 2020 , the Company had available for non-U.S. tax purposes net operating loss carryforwards which have an indefinite life and net operating loss carryforwards which expire, if unused, in the years 2028 through 2039 . For certain jurisdictions where the Company has determined that it is more likely than not that the net operating loss carryforwards will not be realized, a valuation allowance has been provided on those net operating loss carryforwards as well as other net deferred tax assets. Income tax payments were $228 million for 2019 , $324 million for 2018 and $494 million for 2017 . Uncertain Tax Positions The following table summarizes the activity related to the Company’s unrecognized tax benefits for U.S. federal, state & non-U.S. tax jurisdictions for 2019 , 2018 and 2017 , without interest and penalties: 2019 2018 2017 (in millions) Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year $ 114 $ 67 $ 90 Increases to Unrecognized Tax Benefits for Prior Years 15 35 3 Decreases to Unrecognized Tax Benefits for Prior Years (22 ) (25 ) (22 ) Increases to Unrecognized Tax Benefits as a Result of Current Year Activity 3 44 7 Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities (16 ) — (2 ) Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations (6 ) (7 ) (9 ) Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year $ 88 $ 114 $ 67 Of the total gross unrecognized tax benefits, approximately $81 million , $104 million and $46 million , at February 1, 2020 , February 2, 2019 , and February 3, 2018 , respectively, represent the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. These amounts are net of the offsetting tax effects from other tax jurisdictions. Of the total unrecognized tax benefits, it is reasonably possible that $66 million could change in the next 12 months due to audit settlements, expiration of statute of limitations or other resolution of uncertainties. Due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of audits may result in amounts which could be different from this estimate. In such case, the Company will record additional tax expense or tax benefit in the period in which such matters are effectively settled. The Company recognizes interest and penalties related to unrecognized tax benefits as components of income tax expense. The Company recognized an income tax benefit from interest and penalties of less than $1 million , $5 million and $2 million in 2019 , 2018 and 2017 , respectively. The Company has accrued $12 million for the payment of interest and penalties as of both February 1, 2020 and February 2, 2019 . Accrued interest and penalties are included within Other Long-term Liabilities on the Consolidated Balance Sheets. The Company files U.S. federal income tax returns as well as income tax returns in various states and in non-U.S. jurisdictions. The Company is a participant in the Compliance Assurance Process ("CAP"), which is a program made available by the Internal Revenue Service ("IRS") to certain qualifying large taxpayers, under which participants work collaboratively with the IRS to identify and resolve potential tax issues through open, cooperative and transparent interaction prior to the annual filing of their federal income tax return. The IRS is currently examining the Company's 2018 consolidated U.S. federal income tax return. The Company is also subject to various U.S. state and local income tax examinations for the years 2015 to 2018 . Finally, the Company is subject to multiple non-U.S. tax jurisdiction examinations for the years 2007 to 2018 . In some situations, the Company determines that it does not have a filing requirement in a particular tax jurisdiction. Where no return has been filed, no statute of limitations applies. Accordingly, if a tax jurisdiction reaches a conclusion that a filing requirement does exist, additional years may be reviewed by the tax authority. The Company believes it has appropriately accounted for uncertainties related to this issue. |
Long-term Debt and Borrowing Fa
Long-term Debt and Borrowing Facilities | 12 Months Ended |
Feb. 01, 2020 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Long-term Debt and Borrowing Facilities | Long-term Debt and Borrowing Facilities The following table provides the Company’s outstanding debt balance, net of unamortized debt issuance costs and discounts, as of February 1, 2020 and February 2, 2019 : February 1, February 2, (in millions) Senior Debt with Subsidiary Guarantee $1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) $ 991 $ 990 $860 million, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) 858 952 $700 million, 6.75% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) 693 693 $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) 498 498 $500 million, 5.25% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) 496 496 $500 million, 7.50% Fixed Interest Rate Notes due June 2029 ("2029 Notes") 487 — $450 million, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”) 450 776 $297 million, 6.694% Fixed Interest Rate Notes due January 2027 ("2027 Notes") 276 273 $338 million, 7.00% Fixed Interest Rate Notes due May 2020 (“2020 Notes”) — 337 Secured Foreign Facilities 103 91 Total Senior Debt with Subsidiary Guarantee $ 4,852 $ 5,106 Senior Debt $350 million, 6.95% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) $ 348 $ 348 $300 million, 7.60% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) 298 297 Unsecured Foreign Facilities 50 60 Total Senior Debt $ 696 $ 705 Total $ 5,548 $ 5,811 Current Debt (61 ) (72 ) Total Long-term Debt, Net of Current Portion $ 5,487 $ 5,739 The following table provides principal payments due on outstanding debt in the next five fiscal years and the remaining years thereafter: Fiscal Year (in millions) 2020 $ 61 2021 459 2022 869 2023 569 2024 5 Thereafter $ 3,648 Cash paid for interest was $363 million in 2019 , $380 million in 2018 and $391 million in 2017 . Issuance of Notes In June 2019, the Company issued $500 million of 7.50% notes due in June 2029. 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 $486 million , which were net of discounts and issuance costs of $14 million . The discounts and issuance costs are being amortized through the maturity date and are included within Long-term Debt on the February 1, 2020 Consolidated Balance Sheet. Repurchases of Notes In June 2019, the Company completed the early settlement of tender offers to repurchase $212 million of outstanding 2020 Notes, $330 million of outstanding 2021 Notes and $96 million of outstanding 2022 Notes for $669 million . The Company used the proceeds from the 2029 Notes, together with cash on hand, to fund the purchase price for the tender offers. Additionally, in July 2019, the Company redeemed the remaining $126 million of outstanding 2020 Notes for $130 million . In the second quarter of 2019, the Company recognized a pre-tax loss on extinguishment of debt of $40 million (after-tax loss of $30 million ), which includes redemption fees and the write-off of unamortized issuance costs. This loss is included in Other Income (Loss) in the 2019 Consolidated Statement of Income (Loss). Exchange of Notes In June 2018, the Company completed private offers to exchange $62 million , $220 million and $44 million of outstanding 2020 Notes, 2021 Notes and 2022 Notes, respectively, for $297 million of newly issued 6.694% notes due in January 2027 and $52 million in cash consideration, which included a $24 million exchange premium. The exchange was treated as a modification under ASC 470, Debt , and no gain or loss was recognized. The exchange premium is being amortized through the maturity date of January 2027 and is included within Long-term Debt on the Consolidated Balance Sheets. The obligation to pay principal and interest on the 2027 Notes is jointly and severally guaranteed on a full and unconditional basis by the Guarantors. Secured Revolving Facility The Company and the Guarantors guarantee and pledge collateral to secure the Secured Revolving Facility. The Secured Revolving Facility has aggregate availability of $1 billion and allows the Company and certain of the Company's non-U.S. subsidiaries to borrow and obtain letters of credit in U.S. dollars, Canadian dollars, Euros, Hong Kong dollars or British pounds. In August 2019, the Company entered into an amendment and restatement of the Secured Revolving Facility. The Amendment maintained the aggregate availability under the Secured Revolving Facility at $1 billion and extended the expiration date from May 2022 to August 2024. The Company incurred fees related to the Amendment of $5 million , which were capitalized and are recorded in Other Assets on the February 1, 2020 Consolidated Balance Sheet and are being amortized over the remaining term of the Secured Revolving Facility. The Secured Revolving Facility fees related to committed and unutilized amounts are 0.30% per annum, and the fees related to outstanding letters of credit are 1.75% per annum. In addition, the interest rate on outstanding U.S. dollar borrowings is LIBOR plus 1.75% per annum. The interest rate on outstanding foreign denominated borrowings is the applicable benchmark rate plus 1.75% per annum. The Secured 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. Additionally, the Secured 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 3.50 to 1.00 and (b) no default or event of default exists. As of February 1, 2020 , the Company was in compliance with both of its financial covenants, and the ratio of consolidated debt to consolidated EBITDA was less than 3.50 to 1.00 . During 2019 , the Company borrowed and repaid $12 million under the Secured Revolving Facility. As of February 1, 2020 , there were no borrowings outstanding under the Secured Revolving Facility. The Secured Revolving Facility supports the Company’s letter of credit program. The Company had $19 million of outstanding letters of credit as of February 1, 2020 that reduced its availability under the Secured Revolving Facility. On March 16, 2020, the Company elected to borrow $950 million from the Secured Revolving Facility, leaving our availability under the Secured Revolving Facility at $22 million . For additional information, see Note 23 , "Subsequent Events." Secured Foreign Facilities The Company and the Guarantors guarantee and pledge collateral to secure revolving and term loan bank facilities used by certain of the Company's Greater China subsidiaries to support their operations. The Secured Foreign Facilities have availability totaling $150 million . The interest rates on outstanding borrowings are based upon the applicable benchmark rate for each borrowing. During 2019 , the Company borrowed $117 million and made payments of $103 million under the Secured Foreign Facilities. The maximum daily amount outstanding at any point in time in 2019 was $103 million . Borrowings on the Secured Foreign Facilities mature between March 2020 and August 2024. As of February 1, 2020 , borrowings of $11 million are included within Current Debt on the Consolidated Balance Sheet and the remaining borrowings are included within Long-term Debt. Unsecured Foreign Facilities The Company guarantees unsecured revolving and term loan bank facilities used by certain of the Company's Greater China subsidiaries to support their operations. The Unsecured Foreign Facilities have availability totaling $75 million . The interest rates on outstanding borrowings are based upon the applicable benchmark rate for each borrowing. During 2019 , the Company borrowed $50 million and made payments of $59 million under the Unsecured Foreign Facilities. The maximum daily amount outstanding at any point in time in 2019 was $74 million . Borrowings on the Unsecured Foreign Facilities mature between March 2020 and April 2020. As of February 1, 2020 , borrowings of $50 million are included within Current Debt on the Consolidated Balance Sheet. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Feb. 01, 2020 | |
Summary of Derivative Instruments [Abstract] | |
Derivative Instruments | Derivative Financial Instruments The earnings of the Company's wholly owned foreign businesses are subject to exchange rate risk as substantially all 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 the sale of the hedged merchandise to the customer. These gains and losses are recognized in Costs of Goods Sold, Buying and Occupancy in the Consolidated Statements of Income (Loss). The Company uses foreign currency forward contracts to mitigate the impact of fluctuations in foreign currency exchange rates relative to recognized payable balances denominated in non-functional currencies. The fair value of these non-designated foreign currency forward contracts is not significant as of February 1, 2020 . The following table provides the U.S. dollar notional amount of outstanding foreign currency derivative financial instruments as of February 1, 2020 and February 2, 2019 : February 1, February 2, (in millions) Notional Amount $ 139 $ 147 The following table provides a summary of the fair value and balance sheet classification of outstanding derivative financial instruments designated as foreign currency cash flow hedges as of February 1, 2020 and February 2, 2019 : February 1, February 2, (in millions) Other Current Assets $ 1 $ 2 Accrued Expenses and Other 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 2019 and 2018 : 2019 2018 (in millions) Gain (Loss) Recognized in Accumulated Other Comprehensive Income $ 2 $ 11 (Gain) Loss Reclassified from Accumulated Other Comprehensive Income into Costs of Goods Sold, Buying and Occupancy Expense (5 ) 2 The Company estimates that less than $1 million of net gains included in accumulated other comprehensive income as of February 1, 2020 related to foreign currency forward contracts designated as cash flow hedges will be reclassified into earnings within the following 12 months. Actual amounts ultimately reclassified depend on the exchange rates in effect when derivative contracts that are currently outstanding mature. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Feb. 01, 2020 | |
Fair Value Measurements [Abstract] | |
Fair Value Disclosures | Fair Value Measurements The following table provides a summary of assets and liabilities measured in the consolidated financial statements at fair value on a recurring basis as of February 1, 2020 and February 2, 2019 : Level 1 Level 2 Level 3 Total (in millions) As of February 1, 2020 Assets: Cash and Cash Equivalents $ 1,499 $ — $ — $ 1,499 Foreign Currency Cash Flow Hedges — 1 — 1 Liabilities: Foreign Currency Cash Flow Hedges — 1 — 1 As of February 2, 2019 Assets: Cash and Cash Equivalents $ 1,413 $ — $ — $ 1,413 Marketable Equity Securities 11 — — 11 Foreign Currency Cash Flow Hedges — 2 — 2 The Company's Level 1 fair value measurements use unadjusted quoted prices in active markets for identical assets. The Company's marketable equity securities were 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. During 2019, the Company received cash proceeds of $10 million related to sales of its marketable equity securities, which are included within Investing Activities in the 2019 Consolidated Statement of Cash Flows. The Company’s Level 2 fair value measurements use market approach valuation techniques. The primary inputs to these techniques include foreign currency exchange rates, as applicable to the underlying instruments. The following table provides a summary of the principal value and estimated fair value of outstanding publicly traded debt as of February 1, 2020 and February 2, 2019 : February 1, February 2, (in millions) Principal Value $ 5,458 $ 5,722 Fair Value, Estimated (a) 5,555 5,340 ________________ (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. Management believes that the carrying values of accounts receivable, accounts payable, accrued expenses and current debt approximate fair value because of their short maturity. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 12 Months Ended |
Feb. 01, 2020 | |
Comprehensive Income Loss | |
Comprehensive Income (Loss) | Comprehensive Income Comprehensive Income includes gains and losses on derivative instruments and foreign currency translation adjustments. The cumulative gains and losses on these items are included in Accumulated Other Comprehensive Income on the Consolidated Balance Sheets and Consolidated Statements of Shareholders' Equity (Deficit). The following table provides the rollforward of accumulated other comprehensive income for 2019 : Foreign Currency Translation Cash Flow Hedges Accumulated Other Comprehensive Income (in millions) Balance as of February 2, 2019 $ 57 $ 2 $ 59 Other Comprehensive Income (Loss) Before Reclassifications (5 ) 2 (3 ) Amounts Reclassified from Accumulated Other Comprehensive Income — (5 ) (5 ) Tax Effect — 1 1 Current-period Other Comprehensive Income (Loss) (5 ) (2 ) (7 ) Balance as of February 1, 2020 $ 52 $ — $ 52 The following table provides the rollforward of accumulated other comprehensive income for 2018 : Foreign Currency Translation Cash Flow Hedges Marketable Equity 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, Investments - Equity Securities — — (2 ) (2 ) Balance as of February 4, 2018 32 (10 ) — 22 Other Comprehensive Income (Loss) Before Reclassifications (20 ) 11 — (9 ) Amounts Reclassified from Accumulated Other Comprehensive Income 45 2 — 47 Tax Effect — (1 ) — (1 ) Current-period Other Comprehensive Income 25 12 — 37 Balance as of February 2, 2019 $ 57 $ 2 $ — $ 59 As a result of the divestiture of La Senza in 2018, the Company reclassified $45 million of accumulated foreign-currency translation adjustments out of accumulated other comprehensive income and into earnings. For additional information, see Note 5 , "Restructuring Activities." |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 01, 2020 | |
Commitments And Contingencies [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to various claims and contingencies related to lawsuits, taxes, insurance, regulatory and other matters arising out of the normal course of business. Actions filed against the Company from time to time include commercial, tort, intellectual property, customer, employment, data privacy, securities and other claims, including purported class action lawsuits. Management believes that the ultimate liability arising from such claims and contingencies, if any, is not likely to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. In July 2019, a plaintiff shareholder filed a putative class action complaint in the U.S. District Court for the Southern District of Ohio alleging that the Company made false and/or misleading statements relating to the November 2018 announcement that the Company was reducing its quarterly dividend. In September 2019, a different plaintiff shareholder filed a second putative class action complaint in the U.S. District Court for the Southern District of Ohio containing substantially the same allegations and seeking substantially the same relief. In October 2019, the Court issued an order consolidating the two putative class actions, appointing a lead plaintiff, and approving that lead plaintiff’s selection of lead counsel. The lead plaintiff filed a consolidated amended complaint on December 20, 2019 that asserted substantially the same allegations and sought substantially the same relief as the initial complaint. The Company filed a motion to dismiss the consolidated amended complaint on February 18, 2020. The lead plaintiff must file any opposition to our motion to dismiss no later than May 4, 2020. The Company's reply brief in further support of our motion to dismiss is due on June 3, 2020. The Company views this lawsuit as meritless and intends to defend against this lawsuit vigorously. On February 19, 2020, a plaintiff shareholder filed a complaint in the U.S. District Court for the Southern District of Ohio alleging derivative claims on behalf of the Company against certain of its current and former directors and officers. The Company was named as nominal defendant. The lawsuit asserts claims for breach of fiduciary duty, corporate waste and unjust enrichment in connection with alleged misstatements about our quarterly dividend prior to the announced reduction of the dividend in November 2018. The Company intends to seek dismissal of the lawsuit. La Senza In connection with the sale of La Senza in the fourth quarter of 2018, certain of the Company's subsidiaries have remaining contingent obligations of $40 million related to lease payments under the current terms of noncancelable leases expiring at various dates through 2028. These obligations 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. As part of the sale, a liability of $5 million was recorded for these obligations. During 2019, an additional reserve of $35 million was recorded related to these obligations and certain other items. As of February 1, 2020 , reserves of $8 million are included within Accrued Expenses and Other on the Consolidated Balance Sheet and the remaining reserves are included within Other Long-term Liabilities. Other In connection with noncancelable 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 $94 million . The Company recorded a liability of $17 million and $11 million related to these guarantee obligations as of February 1, 2020 and February 2, 2019 , respectively. This liability is included in Current Operating Lease Liabilities on the February 1, 2020 Consolidated Balance Sheet, and in Other Long-term Liabilities on the February 2, 2019 Consolidated Balance Sheet. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Feb. 01, 2020 | |
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 $79 million for 2019 , $76 million for 2018 and $68 million for 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. The definitive agreement between the Company and Sycamore for the sale to Sycamore of the 55% interest in Victoria's Secret requires that the Company terminate its non-qualified supplemental retirement plan as of the closing with respect to participants affected by the sale and for all other participants within six months. On March 11, 2020, the Compensation Committee of the Board of Directors authorized management of the Company to take steps to terminate the plan as to all participants. The timing and specifics of such termination have not yet been determined. Any remaining benefits and obligations under the non-qualified plan are expected to be paid out in full approximately one year following the applicable termination. For additional information regarding the Victoria's Secret transaction, see Note 23 , "Subsequent Events." The following table provides the Company’s annual activity for this plan and year-end liability, included in Other Long-term Liabilities on the Consolidated Balance Sheets, as of February 1, 2020 and February 2, 2019 : February 1, February 2, (in millions) Balance at Beginning of Year $ 278 $ 269 Contributions: Associate 8 10 Company 12 11 Interest 14 13 Distributions (32 ) (25 ) Balance at End of Year $ 280 $ 278 Total expense recognized related to the non-qualified plan was $26 million for 2019 , $24 million for 2018 and $20 million for 2017 . |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) | 12 Months Ended |
Feb. 01, 2020 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity (Deficit) Common Stock Share Repurchases The Company did not repurchase any shares during 2019. Under the authority of the Company’s Board of Directors, the Company repurchased shares of its common stock under the following repurchase programs for fiscal 2018 and 2017 : Shares Repurchased Amount Repurchased Average Stock Price of Shares Repurchased within Program Repurchase Program Amount Authorized 2018 2017 2018 2017 (in millions) (in thousands) (in millions) March 2018 $ 250 4,852 NA $ 171 NA $ 35.29 September 2017 250 527 3,858 25 $ 202 $ 51.72 February 2017 250 NA 5,500 NA 240 $ 43.57 February 2016 500 NA 51 NA 3 $ 76.47 Total 5,379 9,409 $ 196 $ 445 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. The March 2018 repurchase program had $79 million remaining as of February 1, 2020 . Treasury Stock Retirement In November 2017, the Company retired 36 million shares of its treasury stock. The retirement resulted in a reduction of $2.036 billion in Treasury Stock, $18 million in the par value of Common Stock, $82 million in Paid-in Capital and $1.936 billion in Retained Earnings. Dividends Under the authority and declaration of the Board of Directors, the Company paid the following dividends during fiscal 2019 , 2018 and 2017 : Ordinary Dividends Total Paid (per share) (in millions) 2019 Fourth Quarter $ 0.30 $ 83 Third Quarter 0.30 83 Second Quarter 0.30 83 First Quarter 0.30 83 2019 Total $ 1.20 $ 332 2018 Fourth Quarter $ 0.60 $ 166 Third Quarter 0.60 165 Second Quarter 0.60 167 First Quarter 0.60 168 2018 Total $ 2.40 $ 666 2017 Fourth Quarter $ 0.60 $ 170 Third Quarter 0.60 172 Second Quarter 0.60 172 First Quarter 0.60 172 2017 Total $ 2.40 $ 686 Subsequent to February 1, 2020 , the Company's Board of Directors declared the first quarter of 2020 ordinary dividend of $0.30 per share. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Compensation | Share-based Compensation Plan Summary In 2015, the Company's shareholders approved the 2015 Stock Option and Performance Incentive Plan ("2015 Plan"). The 2015 Plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, performance-based restricted stock, performance units and unrestricted shares. The Company grants stock options at a price equal to the fair market value of the stock on the date of grant. Stock options have a maximum term of 10 years. Stock options generally vest ratably over three to five years. Restricted stock generally vests (the restrictions lapse) at the end of a three -year period or on a graded basis over a five -year period. Under the Company’s plans, 160 million options, restricted and unrestricted shares have been authorized to be granted to employees and directors. There were 5 million options and shares available for grant as of February 1, 2020 . Stock Options The following table provides the Company’s stock option activity for the fiscal year ended February 1, 2020 : Number of Shares Weighted Average Option Price Per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding as of February 2, 2019 5,292 $ 53.14 Granted 519 27.67 Exercised (136 ) 7.44 Cancelled (395 ) 52.22 Outstanding as of February 1, 2020 5,280 $ 51.87 6.03 $ 318 Vested and Expected to Vest as of February 1, 2020 (a) 5,190 52.29 5.99 318 Options Exercisable as of February 1, 2020 3,372 57.07 4.93 318 ________________ (a) The number of options expected to vest includes an estimate of expected forfeitures. Intrinsic value for stock options is the difference between the current market value of the Company’s stock and the option strike price. The total intrinsic value of options exercised was $3 million for 2019 , $2 million for 2018 and $44 million for 2017 . The total fair value at grant date of option awards vested was $9 million for 2019 and 2018 , and $10 million for 2017 . The Company’s total unrecognized compensation cost, net of estimated forfeitures, related to nonvested options was $8 million as of February 1, 2020 . This cost is expected to be recognized over a weighted-average period of 1.8 years. The weighted-average estimated fair value of stock options granted was $6.05 per share for 2019 , $6.76 per share for 2018 and $5.96 per share for 2017 . Cash received from stock options exercised was $1 million for 2019 and 2018 , and $38 million for 2017 . Tax benefits realized from tax deductions associated with stock options exercised was less than $1 million for 2019 and 2018 , and $16 million for 2017 . The Company uses the Black-Scholes option-pricing model for valuation of options granted to employees and directors. The Company’s determination of the fair value of options is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the Company’s expected stock price volatility over the term of the awards and projected employee stock option exercise behaviors. The following table contains the weighted-average assumptions used during 2019 , 2018 and 2017 : 2019 2018 2017 Expected Volatility 40 % 36 % 28 % Risk-free Interest Rate 2.2 % 2.5 % 1.5 % Dividend Yield 4.4 % 5.8 % 5.1 % Expected Life (in years) 3.2 2.9 3.0 The majority of the Company’s stock-based compensation awards are granted on an annual basis in the first quarter of each year. The expected volatility assumption is based on the Company’s analysis of historical volatility. The risk-free interest rate assumption is based upon the average daily closing rates during the period for U.S. treasury notes that have a life which approximates the expected life of the option. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts in relation to the stock price at the grant date. The expected life of employee stock options represents the weighted-average period the stock options are expected to remain outstanding. Restricted Stock The following table provides the Company’s restricted stock activity for the fiscal year ended February 1, 2020 : Number of Shares Weighted Average Grant Date Fair Value (in thousands) Unvested as of February 2, 2019 6,689 $ 45.29 Granted 4,161 23.34 Vested (1,570 ) 66.44 Cancelled (618 ) 30.75 Unvested as of February 1, 2020 8,662 $ 32.00 The Company’s total intrinsic value of restricted stock vested was $39 million for 2019 , $44 million for 2018 and $86 million for 2017 . The Company’s total fair value at grant date of awards vested was $104 million for 2019 , $86 million for 2018 and $87 million for 2017 . The fair value of restricted stock awards is based on the market value of an unrestricted share on the grant date adjusted for anticipated dividend yields. As of February 1, 2020 , there was $103 million of total unrecognized compensation cost, net of estimated forfeitures, related to unvested restricted stock. That cost is expected to be recognized over a weighted-average period of 1.9 years. The weighted-average estimated fair value of restricted stock granted was $23.34 per share for 2019 , $30.43 per share for 2018 and $39.21 per share for 2017 . Tax benefits realized from tax deductions associated with restricted stock vested were $10 million for 2019 and 2018 , and $32 million for 2017 . Income Statement Impact The following table provides share-based compensation expense included in the Consolidated Statements of Income (Loss) for 2019 , 2018 and 2017 : 2019 2018 2017 (in millions) Costs of Goods Sold, Buying and Occupancy $ 29 $ 29 $ 32 General, Administrative and Store Operating Expenses 58 68 70 Total Share-based Compensation Expense $ 87 $ 97 $ 102 The tax benefit associated with recognized share-based compensation expense was $18 million for 2019 , $20 million for 2018 and $23 million for 2017 . |
Segment Information
Segment Information | 12 Months Ended |
Feb. 01, 2020 | |
Segment Information [Abstract] | |
Segment Information | Segment Information The Company has three reportable segments: Victoria’s Secret, Bath & Body Works and Victoria's Secret and Bath & Body Works International. The Victoria’s Secret segment sells women’s intimate and other apparel, personal care and beauty products under the Victoria’s Secret and PINK brand names. Victoria’s Secret merchandise is sold online and through retail stores located in the U.S. and Canada. The Bath & Body Works segment sells body care, home fragrance products, soaps and sanitizers under the Bath & Body Works, White Barn, C.O. Bigelow and other brand names. Bath & Body Works merchandise is sold online and at retail stores located in the U.S. and Canada. The Victoria's Secret and Bath & Body Works International segment includes the Victoria's Secret and Bath & Body Works company-owned and partner-operated stores located outside of the U.S. and Canada, as well as the online business in Greater China. 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 operated by partners under franchise, license and wholesale arrangements. Other includes Mast Global, a merchandise sourcing and production function serving the Company and its international partners, and Corporate functions, including non-core real estate, equity investments and other governance functions such as treasury and tax. Results for 2018 and 2017 also include La Senza and Henri Bendel. The following table provides the Company’s segment information as of and for the fiscal years ended February 1, 2020 , February 2, 2019 and February 3, 2018 : Victoria’s Secret Bath & Body Works Victoria’s Secret and Bath & Body Works International Other Total (in millions) 2019 Net Sales $ 6,805 $ 5,170 $ 600 $ 339 $ 12,914 Depreciation and Amortization 284 155 40 109 588 Operating Income (Loss) (a) (616 ) 1,191 (236 ) (81 ) 258 Total Assets (b) (c) 3,883 2,837 939 2,466 10,125 Capital Expenditures 76 206 24 152 458 2018 Net Sales $ 7,375 $ 4,631 $ 605 $ 626 $ 13,237 Depreciation and Amortization 280 121 43 103 547 Operating Income (Loss) (d) 462 1,077 (37 ) (265 ) 1,237 Total Assets (b) 3,129 1,898 842 2,221 8,090 Capital Expenditures 150 242 97 140 629 2017 Net Sales $ 7,387 $ 4,148 $ 502 $ 595 $ 12,632 Depreciation and Amortization 279 101 30 114 524 Operating Income (Loss) 932 953 5 (162 ) 1,728 Total Assets (b) 3,369 1,753 800 2,227 8,149 Capital Expenditures 270 232 111 94 707 ________________ (a) Victoria's Secret includes goodwill and long-lived store asset impairment charges of $690 million and $51 million , respectively. Victoria's Secret and Bath & Body Works International includes long-lived store asset and goodwill impairment charges of $212 million and $30 million , respectively. For additional information see Note 7 , “Property and Equipment, Net" and Note 9 , "Goodwill and Trade Names." (b) Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. (c) The 2019 amounts reflect the Company's adoption of ASC 842, Leases , in the first quarter of 2019. (d) Victoria's Secret and Victoria's Secret and Bath & Body Works International includes long-lived store asset impairment charges of $70 million and $31 million , respectively, and Other includes a loss on the sale of La Senza of $99 million and Henri Bendel closures costs of $23 million . For additional information see Note 5 , “Restructuring Activities" and Note 7 , “Property and Equipment, Net." The Company’s international net sales include sales from company-owned stores, royalty revenue from franchise and license arrangements, wholesale revenues and direct sales shipped internationally. Certain of these sales are subject to the impact of fluctuations in foreign currency. The Company's international net sales across all segments totaled $1.496 billion in 2019 , $1.683 billion in 2018 and $1.553 billion in 2017 . The Company’s internationally based long-lived assets were $713 million as of February 1, 2020 and $454 million as of February 2, 2019 . |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following table provides summarized quarterly financial data for 2019 : Fiscal Quarter Ended May 4, 2019 August 3, 2019 (a) November 2, 2019 (b)(c)(d) February 1, 2020 (e)(f) (in millions except per share data) Net Sales $ 2,629 $ 2,902 $ 2,677 $ 4,707 Gross Profit 934 983 741 1,794 Operating Income (Loss) 153 175 (151 ) 82 Income (Loss) Before Income Taxes 60 42 (277 ) (7 ) Net Income (Loss) 40 38 (252 ) (192 ) Net Income (Loss) Per Basic Share (g) $ 0.15 $ 0.14 $ (0.91 ) $ (0.70 ) Net Income (Loss) Per Diluted Share (g) $ 0.14 $ 0.14 $ (0.91 ) $ (0.70 ) ________________ (a) Net income includes the effect of a $40 million pre-tax loss ( $30 million after-tax) associated with the early redemption of $764 million of outstanding notes maturing between 2020 and 2022. (b) Gross profit includes the effect of a $218 million pre-tax impairment charge ( $200 million after-tax) related to certain Victoria's Secret long-lived store assets. (c) Operating loss includes the effect of a $30 million (no tax impact) goodwill impairment charge related to the Greater China reporting unit. (d) Net loss includes the effect of a $37 million pre-tax charge ( $28 million after-tax) to increase reserves related to ongoing contingent obligations for the La Senza business. (e) Gross profit includes the effect of a $35 million pre-tax impairment charge ( $30 million after-tax) related to certain Victoria's Secret long-lived store assets. (f) Operating income includes the effect of a $690 million pre-tax goodwill impairment charge ( $687 million after-tax) related to the Victoria's Secret reporting unit. (g) Due to changes in stock prices during the year and timing of issuances of shares, the cumulative total of quarterly net income (loss) per share amounts may not equal the net income (loss) per share for the year. The following table provides summarized quarterly financial data for 2018 : Fiscal Quarter Ended May 5, August 4, November 3, February 2, (in millions except per share data) Net Sales $ 2,626 $ 2,984 $ 2,775 $ 4,852 Gross Profit 944 1,059 928 1,968 Operating Income 155 228 54 800 Income (Loss) Before Income Taxes 59 129 (41 ) 710 Net Income (Loss) 48 99 (43 ) 540 Net Income (Loss) Per Basic Share (d) $ 0.17 $ 0.36 $ (0.16 ) $ 1.96 Net Income (Loss) Per Diluted Share (d) $ 0.17 $ 0.36 $ (0.16 ) $ 1.94 ________________ (a) Gross profit includes the effect of an $81 million pre-tax impairment charge ( $73 million after-tax) related to certain Victoria's Secret long-lived store assets. (b) Operating income includes the effect of $20 million ( $15 million after-tax) of Henri Bendel closure costs. (c) Operating income includes the effect of a pre-tax loss of $99 million ( $55 million after-tax) related to the divestiture of La Senza. (d) Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income (loss) per share amounts may not equal the net income per share for the year. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Feb. 01, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Victoria's Secret Transaction On February 20, 2020, the Company and Sycamore entered into a definitive agreement that is intended to deliver long-term value to L Brands, Inc. shareholders by positioning Bath & Body Works as a standalone public company and transitioning Victoria's Secret, including business conducted under the Victoria's Secret and PINK brands and certain support functions, into a privately-held entity. After taking into account certain liabilities, Sycamore will purchase a 55% interest in Victoria’s Secret for approximately $525 million . The Company will retain a 45% interest in Victoria’s Secret to enable its shareholders to participate in the upside potential of the business. The Company intends to use the proceeds from the transaction, along with excess balance sheet cash, to reduce debt. The transaction is expected to close in the second quarter of 2020, subject to customary closing conditions. The Company will report the results of Victoria's Secret as discontinued operations beginning in the first quarter of 2020. The Company expects to recognize a loss in the first quarter of 2020 as a result of classifying Victoria's Secret as held for sale. Legal Proceedings On February 19, 2020, a plaintiff shareholder filed a complaint in the U.S. District Court for the Southern District of Ohio alleging derivative claims on behalf of the Company against certain of its current and former directors and officers. For additional information, see Note 17 , "Commitments and Contingencies." Company Response to Coronavirus Subsequent to February 1, 2020 , the Company announced actions in response to the continued spread of the coronavirus. On March 16, 2020, in an abundance of caution and as a proactive measure, the Company elected to borrow $950 million from its Secured Revolving Facility, leaving its availability under the Secured Revolving Facility at $22 million . On March 17, 2020, the Company announced the temporary closure of all Bath & Body Works, Victoria’s Secret and PINK stores in the United States and Canada through March 29, 2020. Associates will continue to receive pay and benefits through April 4, 2020, which is one week longer than originally announced. Based on the continued spread of the coronavirus and stay-at-home orders by government officials across the country, the Company is extending the closure of its stores beyond the initial March 29th date. As the situation continues to evolve rapidly, the Company is not currently able to predict the timing of store reopenings. However, it is monitoring the situation closely and will provide updates as appropriate. The Company continues to serve customers through its direct channels. In an effort to further strengthen its financial flexibility and efficiently manage through the pandemic, the Company is proactively taking the following additional actions: • Suspending its quarterly cash dividend beginning in the second quarter of fiscal 2020. The Company remains committed to paying dividends over the long-term and will re-evaluate when appropriate. • Executing a substantial reduction in expenses and capital expenditures. This includes an ongoing reduction in forward inventory receipts. • Temporarily reducing base compensation by 20% for senior vice presidents and above. The cash compensation of Chairman and CEO Leslie H. Wexner and other members of the Board of Directors has been suspended. Additionally, the Company is deferring annual merit increases. • Furloughing most store associates and those who are not currently working to support the online businesses or who cannot work from home, effective April 5, 2020 until further notice. All furloughed associates will continue to receive existing healthcare benefits. As circumstances change, the Company will make every effort to bring these associates back to work as soon as possible. Furloughed associates will also be able to apply for unemployment benefits, if eligible. As of March 27, 2020, the Company currently has more than $2 billion in cash, which includes the $950 million borrowed under the Secured Revolving Facility on March 16, 2020. The Company's Secured Revolving Facility has certain financial covenants, including a debt to consolidated EBITDA covenant, which may be breached as early as the end of the fiscal quarter ending May 2, 2020. If the Company were to violate a covenant, its lenders would have the right to accelerate the Company's Secured Revolving Facility indebtedness, demand cash collateral in respect of the letters of credit issued thereunder and terminate the funding commitments available thereunder. While the Company believes that it would be able to obtain temporary waivers for any such breach of a covenant to prevent an acceleration of its outstanding indebtedness or obtain a replacement credit facility, the Company cannot conclude with certainty that it would have the ability to obtain necessary waivers or negotiate less restrictive debt covenants with its lenders. The Company is in active conversations with the lenders under its credit facility to obtain a replacement credit facility that does not contain a debt to consolidated EBITDA financial covenant or a temporary waiver in respect of such financial covenant in its existing Secured Revolving Facility. The Company believes that its current cash balance, along with the actions taken as outlined above, provides it with sufficient current liquidity. |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information | 12 Months Ended |
Feb. 01, 2020 | |
Supplemental Guarantor Financial Information [Abstract] | |
Schedule Of Supplemental Guarantor Financial Information [Text Block] | Supplemental Guarantor Financial Information The Company’s 2021 Notes, 2022 Notes, 2023 Notes, 2027 Notes, 2028 Notes, 2029 Notes, 2035 Notes, 2036 Notes, Secured Revolving Facility and Secured Foreign Facilities are jointly and severally guaranteed on a full and unconditional basis by the Guarantors. The Company is a holding company, and its most significant assets are the stock of its subsidiaries. The Guarantors represent: (a) substantially all of the sales of the Company’s domestic subsidiaries, (b) more than 90% of the assets owned by the Company’s domestic subsidiaries, other than real property, certain other assets and intercompany investments and balances, and (c) more than 95% of the accounts receivable and inventory directly owned by the Company’s domestic subsidiaries. The following supplemental financial information sets forth for the Company and its guarantor and non-guarantor subsidiaries: the Condensed Consolidating Balance Sheets as of February 1, 2020 and February 2, 2019 , and the Condensed Consolidating Statements of Income (Loss), Comprehensive Income (Loss) and Cash Flows for the years ended February 1, 2020 , February 2, 2019 and February 3, 2018 . L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) February 1, 2020 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 1,231 $ 268 $ — $ 1,499 Accounts Receivable, Net — 183 123 — 306 Inventories — 1,138 149 — 1,287 Other — 85 68 — 153 Total Current Assets — 2,637 608 — 3,245 Property and Equipment, Net — 1,747 739 — 2,486 Operating Lease Assets — 2,545 508 — 3,053 Goodwill — 628 — — 628 Trade Names — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 3,862 20,231 2,937 (27,030 ) — Deferred Income Taxes — 8 76 — 84 Other Assets 130 9 690 (611 ) 218 Total Assets $ 3,992 $ 28,216 $ 5,558 $ (27,641 ) $ 10,125 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ — $ 331 $ 316 $ — $ 647 Accrued Expenses and Other 93 593 366 — 1,052 Current Debt — — 61 — 61 Current Operating Lease Liabilities — 392 86 — 478 Income Taxes (11 ) 89 56 — 134 Total Current Liabilities 82 1,405 885 — 2,372 Deferred Income Taxes — (37 ) 256 — 219 Long-term Debt 5,395 597 92 (597 ) 5,487 Long-term Operating Lease Liabilities — 2,522 530 — 3,052 Other Long-term Liabilities 62 383 59 (14 ) 490 Total Equity (Deficit) (1,547 ) 23,346 3,736 (27,030 ) (1,495 ) Total Liabilities and Equity (Deficit) $ 3,992 $ 28,216 $ 5,558 $ (27,641 ) $ 10,125 L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) February 2, 2019 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 997 $ 416 $ — $ 1,413 Accounts Receivable, Net — 241 126 — 367 Inventories — 1,093 155 — 1,248 Other — 139 93 — 232 Total Current Assets — 2,470 790 — 3,260 Property and Equipment, Net — 1,922 896 — 2,818 Goodwill — 1,318 30 — 1,348 Trade Names — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 4,755 19,737 2,047 (26,539 ) — Deferred Income Taxes — 9 53 — 62 Other Assets 127 15 670 (621 ) 191 Total Assets $ 4,882 $ 25,882 $ 4,486 $ (27,160 ) $ 8,090 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ — $ 363 $ 348 $ — $ 711 Accrued Expenses and Other 92 597 393 — 1,082 Current Debt — — 72 — 72 Income Taxes (7 ) 100 28 — 121 Total Current Liabilities 85 1,060 841 — 1,986 Deferred Income Taxes 1 (44 ) 269 — 226 Long-term Debt 5,661 606 79 (607 ) 5,739 Other Long-term Liabilities 59 852 107 (14 ) 1,004 Total Equity (Deficit) (924 ) 23,408 3,190 (26,539 ) (865 ) Total Liabilities and Equity (Deficit) $ 4,882 $ 25,882 $ 4,486 $ (27,160 ) $ 8,090 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS) (in millions) 2019 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 12,317 $ 3,382 $ (2,785 ) $ 12,914 Costs of Goods Sold, Buying and Occupancy — (8,074 ) (2,810 ) 2,420 (8,464 ) Gross Profit — 4,243 572 (365 ) 4,450 General, Administrative and Store Operating Expenses (11 ) (3,380 ) (331 ) 250 (3,472 ) Impairment of Goodwill — (690 ) (30 ) — (720 ) Operating Income (Loss) (11 ) 173 211 (115 ) 258 Interest Expense (370 ) (116 ) (7 ) 115 (378 ) Other Income (Loss) (40 ) — (21 ) — (61 ) Income (Loss) Before Income Taxes (421 ) 57 183 — (181 ) Provision (Benefit) for Income Taxes 2 55 128 — 185 Equity in Earnings (Loss), Net of Tax 57 39 390 (486 ) — Net Income (Loss) $ (366 ) $ 41 $ 445 $ (486 ) $ (366 ) L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) (in millions) 2019 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Income (Loss) $ (366 ) $ 41 $ 445 $ (486 ) $ (366 ) Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — (5 ) — (5 ) Unrealized Gain (Loss) on Cash Flow Hedges — — 2 — 2 Reclassification of Cash Flow Hedges to Earnings — — (4 ) — (4 ) Total Other Comprehensive Income (Loss), Net of Tax — — (7 ) — (7 ) Total Comprehensive Income (Loss) $ (366 ) $ 41 $ 438 $ (486 ) $ (373 ) L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) 2018 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Sales $ — $ 12,467 $ 3,780 $ (3,010 ) $ 13,237 Costs of Goods Sold, Buying and Occupancy — (8,015 ) (2,996 ) 2,673 (8,338 ) Gross Profit — 4,452 784 (337 ) 4,899 General, Administrative and Store Operating Expenses (9 ) (3,304 ) (482 ) 232 (3,563 ) Loss on Divestiture of La Senza — (24 ) (75 ) — (99 ) Operating Income (Loss) (9 ) 1,124 227 (105 ) 1,237 Interest Expense (379 ) (108 ) (6 ) 108 (385 ) Other Income (Loss) — 13 (8 ) — 5 Income (Loss) Before Income Taxes (388 ) 1,029 213 3 857 Provision (Benefit) for Income Taxes 12 100 101 — 213 Equity in Earnings, Net of Tax 1,044 169 353 (1,566 ) — Net Income (Loss) $ 644 $ 1,098 $ 465 $ (1,563 ) $ 644 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) 2018 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Income (Loss) $ 644 $ 1,098 $ 465 $ (1,563 ) $ 644 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — (20 ) — (20 ) Reclassification of Foreign Currency Translation to Earnings — — 45 — 45 Unrealized Gain (Loss) on Cash Flow Hedges — — 10 — 10 Reclassification of Cash Flow Hedges to Earnings — — 2 — 2 Total Other Comprehensive Income (Loss), Net of Tax — — 37 — 37 Total Comprehensive Income (Loss) $ 644 $ 1,098 $ 502 $ (1,563 ) $ 681 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) 2017 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Sales $ — $ 11,931 $ 3,728 $ (3,027 ) $ 12,632 Costs of Goods Sold, Buying and Occupancy — (7,463 ) (2,868 ) 2,658 (7,673 ) Gross Profit — 4,468 860 (369 ) 4,959 General, Administrative and Store Operating Expenses (10 ) (3,063 ) (426 ) 268 (3,231 ) Operating Income (Loss) (10 ) 1,405 434 (101 ) 1,728 Interest Expense (403 ) (99 ) (13 ) 109 (406 ) Other Income (Loss) (46 ) 11 25 — (10 ) Income (Loss) Before Income Taxes (459 ) 1,317 446 8 1,312 Provision (Benefit) for Income Taxes 65 316 (52 ) — 329 Equity in Earnings, Net of Tax 1,507 522 412 (2,441 ) — Net Income (Loss) $ 983 $ 1,523 $ 910 $ (2,433 ) $ 983 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) 2017 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Income (Loss) $ 983 $ 1,523 $ 910 $ (2,433 ) $ 983 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — 23 — 23 Unrealized Gain (Loss) on Cash Flow Hedges — — (20 ) — (20 ) Reclassification of Cash Flow Hedges to Earnings — — 7 — 7 Unrealized Gain on Marketable Securities — — 2 — 2 Total Other Comprehensive Income (Loss), Net of Tax — — 12 — 12 Total Comprehensive Income (Loss) $ 983 $ 1,523 $ 922 $ (2,433 ) $ 995 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) 2019 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ (427 ) $ 837 $ 826 $ — $ 1,236 Investing Activities: Capital Expenditures — (276 ) (182 ) — (458 ) Net Investments in Consolidated Affiliates — (13 ) — 13 — Other Investing Activities — 12 (34 ) — (22 ) Net Cash Provided by (Used for) Investing Activities — (277 ) (216 ) 13 (480 ) Financing Activities: Proceeds from Issuance of Long-term Debt, Net of Issuance Costs 486 — — — 486 Payments of Long-term Debt (799 ) — — — (799 ) Borrowings from Secured Revolving Facility 12 — — — 12 Repayments of Secured Revolving Facility (12 ) — — — (12 ) Borrowings from Foreign Facilities — — 167 — 167 Repayments of Foreign Facilities — — (162 ) — (162 ) Dividends Paid (332 ) — — — (332 ) Tax Payments related to Share-based Awards (13 ) — — — (13 ) Net Financing Activities and Advances to/from Consolidated Affiliates 1,090 (318 ) (759 ) (13 ) — Proceeds from Exercise of Stock Options 1 — — — 1 Financing Costs and Other (6 ) (8 ) — — (14 ) Net Cash Provided by (Used for) Financing Activities 427 (326 ) (754 ) (13 ) (666 ) Effects of Exchange Rate Changes on Cash — — (4 ) — (4 ) Net Increase (Decrease) in Cash and Cash Equivalents — 234 (148 ) — 86 Cash and Cash Equivalents, Beginning of Year — 997 416 — 1,413 Cash and Cash Equivalents, End of Year $ — $ 1,231 $ 268 $ — $ 1,499 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) 2018 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ (424 ) $ 1,541 $ 260 $ — $ 1,377 Investing Activities: Capital Expenditures — (398 ) (231 ) — (629 ) Net Investments in Consolidated Affiliates — — (21 ) 21 — Other Investing Activities — 4 16 — 20 Net Cash Provided by (Used for) Investing Activities — (394 ) (236 ) 21 (609 ) Financing Activities: Payments of Long-term Debt (52 ) — — — (52 ) Borrowings from Secured Revolving Facility 92 — — — 92 Repayments of Secured Revolving Facility (92 ) — — — (92 ) Borrowings from Foreign Facilities — — 172 — 172 Repayments of Foreign Facilities — — (109 ) — (109 ) Dividends Paid (666 ) — — — (666 ) Repurchases of Common Stock (198 ) — — — (198 ) Tax Payments related to Share-based Awards (13 ) — — — (13 ) Net Financing Activities and Advances to/from Consolidated Affiliates 1,355 (1,310 ) (24 ) (21 ) — Proceeds from Exercise of Stock Options 1 — — — 1 Financing Costs and Other (3 ) (4 ) — — (7 ) Net Cash Provided by (Used for) Financing Activities 424 (1,314 ) 39 (21 ) (872 ) Effects of Exchange Rate Changes on Cash — — 2 — 2 Net Increase (Decrease) in Cash and Cash Equivalents — (167 ) 65 — (102 ) Cash and Cash Equivalents, Beginning of Year — 1,164 351 — 1,515 Cash and Cash Equivalents, End of Year $ — $ 997 $ 416 $ — $ 1,413 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) 2017 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ (401 ) $ 1,353 $ 454 $ — $ 1,406 Investing Activities: Capital Expenditures — (495 ) (212 ) — (707 ) Other Investing Activities — (1 ) 10 — 9 Net Cash Provided by (Used for) Investing Activities — (496 ) (202 ) — (698 ) Financing Activities: Proceeds from Issuance of Long-term Debt, Net of Issuance Costs 495 — — — 495 Payments of Long-term Debt (540 ) — — — (540 ) Borrowings from Foreign Facilities — — 96 — 96 Repayments of Foreign Facilities — — (44 ) — (44 ) Dividends Paid (686 ) — — — (686 ) Repurchases of Common Stock (446 ) — — — (446 ) Tax Payments related to Share-based Awards (32 ) — — — (32 ) Net Financing Activities and Advances to/from Consolidated Affiliates 1,577 (1,252 ) (325 ) — — Proceeds from Exercise of Stock Options 38 — — — 38 Financing Costs and Other (5 ) (3 ) — — (8 ) Net Cash Provided by (Used for) Financing Activities 401 (1,255 ) (273 ) — (1,127 ) Effects of Exchange Rate Changes on Cash — — — — — Net Increase (Decrease) in Cash and Cash Equivalents — (398 ) (21 ) — (419 ) Cash and Cash Equivalents, Beginning of Year — 1,562 372 — 1,934 Cash and Cash Equivalents, End of Year $ — $ 1,164 $ 351 $ — $ 1,515 |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 01, 2020 | |
Description of Business | Description of Business L Brands, Inc. (the "Company”) operates in the highly competitive specialty retail business. The Company is a specialty retailer of women’s intimate and other apparel, personal care, beauty and home fragrance products. The Company sells its merchandise through company-owned specialty retail stores in the U.S., Canada, U.K., Ireland and Greater China, 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 |
Fiscal Year | Fiscal Year The Company's fiscal year ends on the Saturday nearest to January 31. As used herein, “ 2019 ” and " 2018 " refer to the 52-week periods ended February 1, 2020 and February 2, 2019 , respectively. “ 2017 ” refers to the 53-week period ended February 3, 2018 . |
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 in the Consolidated Statements of Income (Loss). The Company’s share of net income or loss of all other unconsolidated entities is included in Other Income (Loss) in the Consolidated Statements of Income (Loss). The Company’s equity method investments are required to be reviewed for impairment when it is determined there may be an other than temporary loss in value. On January 6, 2019, the Company completed the sale of the La Senza business. For additional information, see Note 5 , "Restructuring Activities." |
Policy on consolidation of sales to equity investments | The Company accounts for investments in unconsolidated entities where it exercises significant influence, but does not have control, using the equity method. Under the equity method of accounting, the Company recognizes its share of the investee's net income or loss. Losses are only recognized to the extent the Company has positive carrying value related to the investee. Carrying values are only reduced below zero if the Company has an obligation to provide funding to the investee. The Company’s share of net income or loss of unconsolidated entities from which the Company purchases merchandise or merchandise components is included in Costs of Goods Sold, Buying and Occupancy in the Consolidated Statements of Income (Loss). The Company’s share of net income or loss of all other unconsolidated entities is included in Other Income (Loss) in the Consolidated Statements of Income (Loss). The Company’s equity method investments are required to be reviewed for impairment when it is determined there may be an other than temporary loss in value. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and Cash Equivalents include cash on hand, demand deposits with financial institutions and highly liquid investments with original maturities of less than 90 days. The Company’s outstanding checks, which totaled $15 million as of February 1, 2020 and $13 million as of February 2, 2019 , are included in Accounts Payable on the Consolidated Balance Sheets. |
Concentration of Credit Risk | Concentration of Credit Risk The Company maintains cash and cash equivalents and derivative contracts with various major financial institutions. The Company monitors the relative credit standing of financial institutions with whom the Company transacts and limits the amount of credit exposure with any one entity. Typically, the Company’s investment portfolio is primarily comprised of U.S. government obligations, U.S. Treasury and AAA-rated money market funds, commercial paper and bank deposits. The Company also periodically reviews the relative credit standing of franchise, license and wholesale partners and other entities to which the Company grants credit terms in the normal course of business. The Company records an allowance for uncollectable accounts when it becomes probable that the counterparty will be unable to pay. |
Inventories | Inventories Inventories are principally valued at the lower of cost or net realizable value, on a weighted-average cost basis. The Company records valuation adjustments to its inventories if the cost of inventory on hand exceeds the amount it expects to realize from the ultimate sale or disposal of the inventory. These estimates are based on management’s judgment regarding future demand, market conditions and analysis of historical experience. The Company also records inventory loss adjustments for estimated physical inventory losses that have occurred since the date of the last physical inventory. These estimates are based on management’s analysis of historical results and operating trends. |
Advertising Costs | Advertising Costs Advertising and marketing costs are expensed at the time the promotion first appears in media, in the store or when the advertising is mailed. Advertising and marketing costs totaled $428 million for 2019 , $476 million for 2018 and $383 million for 2017 . |
Property and Equipment | Property and Equipment The Company’s property and equipment are recorded at cost and depreciation is computed on a straight-line basis using the following depreciable life ranges: Category of Property and Equipment Depreciable Life Range Software, including software developed for internal use 3 - 5 years Store related assets 3 - 10 years Leasehold improvements Shorter of lease term or 10 years Non-store related building and site improvements 10 - 15 years Other property and equipment 20 years Buildings 30 years When a decision has been made to dispose of property and equipment prior to the end of the previously estimated useful life, depreciation estimates are revised to reflect the use of the asset over the shortened estimated useful life. The Company’s cost of assets sold or retired and the related accumulated depreciation are removed from the accounts with any resulting gain or loss included in net income (loss). Maintenance and repairs are charged to expense as incurred. Major renewals and betterments that extend useful lives are capitalized. Long-lived store assets, which include leasehold improvements, store related assets and operating lease assets (subsequent to the adoption of ASC 842, Leases ), are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Store assets are grouped at the lowest level for which they are largely independent of other assets or asset groups. If the estimated undiscounted future cash flows related to the asset group are less than the carrying value, the Company recognizes a loss equal to the difference between the carrying value and the estimated fair value, determined by the estimated discounted future cash flows of the asset group. For operating lease assets, the Company determines the fair value of the assets by comparing the contractual rent payments to estimated market rental rates. An individual asset within an asset group is not impaired below its estimated fair value. The fair value of long-lived store assets are determined using Level 3 inputs within the fair value hierarchy. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company has certain intangible assets resulting from business combinations and acquisitions that are recorded at cost. Goodwill is reviewed for impairment at the reporting unit level each year in the fourth quarter, and may be reviewed more frequently if certain events occur or circumstances change. The Company has the option to either first perform a qualitative assessment to determine whether it is more likely than not that each reporting unit's fair value is less than its carrying value (including goodwill), or to proceed directly to the quantitative assessment which requires a comparison of the reporting unit's fair value to its carrying value (including goodwill). If the Company determines that the fair value of a reporting unit is less than its carrying value, the Company recognizes an impairment charge equal to the difference, not to exceed the total amount of goodwill allocated to the reporting unit. The Company's reporting units are determined in accordance with the provisions of ASC 350, Intangibles - Goodwill and Other . Intangible assets with indefinite lives represent the Victoria’s Secret and Bath & Body Works trade names. Intangible assets with indefinite lives are reviewed for impairment each year in the fourth quarter and may be reviewed more frequently if certain events occur or circumstances change. The Company has the option to either first perform a qualitative assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired, or to proceed directly to the quantitative assessment which requires a comparison of the fair value of the intangible asset to its carrying value. To determine if the fair value of the asset is less than its carrying amount, the Company will estimate the fair value, usually determined by the relief from royalty method under the income approach, and compare that value with its carrying amount. If the carrying value of the intangible asset exceeds its fair value, the Company recognizes an impairment charge equal to the difference. |
Leases and Leasehold Improvements | Leases and Leasehold Improvements In the first quarter of 2019, the Company adopted ASC 842, Leases , using the modified retrospective approach. Results for 2019 are presented under ASC 842, while the prior period consolidated financial statements have not been adjusted and continue to be presented under the accounting standard in effect at that time. The Company leases retail space, office space, warehouse facilities, storage space, equipment and certain other items under operating leases. A substantial portion of the Company’s leases are operating leases for its stores, which generally have an initial term of ten years. Annual store rent consists of a fixed minimum amount and/or variable rent based on a percentage of sales exceeding a stipulated amount. Store lease terms generally also require additional payments covering certain operating costs such as common area maintenance, utilities, insurance and taxes. Certain leases contain predetermined fixed escalations of minimum rentals or require periodic adjustments of minimum rentals depending on an index or rate. Additionally, certain leases contain incentives, such as construction allowances from landlords and/or rent abatements subsequent to taking possession of the leased property. At lease commencement, the Company recognizes an asset for the right to use the leased asset and a liability based on the present value of the unpaid fixed lease payments. Operating lease costs are recognized on a straight-line basis as lease expense over the lease term. Variable lease payments associated with the Company's leases are recognized upon occurrence of the event or circumstance on which the payments are assessed. Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet, and lease expense is recognized on a straight-line basis over the lease term. The Company uses its incremental borrowing rate, adjusted for collateral, to determine the present value of its unpaid lease payments. The Company’s store leases often include options to extend the initial term or to terminate the lease prior to the end of the initial term. The exercise of these options is typically at the sole discretion of the Company. These options are included in determining the initial lease term at lease commencement if the Company is reasonably certain to exercise the option. Additionally, the Company may operate stores for a period of time on a month-to-month basis after the expiration of the lease term. The Company also has leasehold improvements which are amortized over the shorter of their estimated useful lives or the period from the date the assets are placed in service to the end of the initial lease term. Leasehold improvements made after the inception of the initial lease term are depreciated over the shorter of their estimated useful lives or the remaining lease term, including renewal periods, if reasonably assured. |
Foreign Currency Translation | Foreign Currency Translation |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative financial instruments to manage exposure to foreign currency exchange rates. The Company does not use derivative instruments for trading purposes. All derivative instruments are recorded on the Consolidated Balance Sheets at fair value. For derivative financial instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (loss) in shareholders’ equity and reclassified into earnings in the same period during which the hedged item affects earnings. Gains and losses that are reclassified into earnings are recognized in the same line item on the Consolidated Statement of Income (Loss) as the underlying hedged item. For derivative financial instruments that are not designated as hedging instruments, the gain or loss on the derivative instrument is recognized in current earnings in Other Income (Loss) on the Consolidated Statements of Income (Loss). |
Fair Value | Fair Value The authoritative guidance included in ASC 820, Fair Value Measurement, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. This authoritative guidance further establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1—Quoted market prices in active markets for identical assets or liabilities. • Level 2—Observable inputs other than quoted market prices included in Level 1, such as quoted prices of similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company estimates the fair value of financial instruments, property and equipment and goodwill and intangible assets in accordance with the provisions of ASC 820 . |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, taxes currently payable or refundable are accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are also recognized for realizable operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted income tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in income tax rates is recognized in the Company’s Consolidated Statement of Income (Loss) in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if it is more likely than not that such assets will not be realized. In determining the Company’s provision for income taxes, the Company considers permanent differences between book and tax income and statutory income tax rates. The Company’s effective income tax rate is affected by items including changes in tax law, the tax jurisdiction of new stores or business ventures and the level of earnings. The Company follows a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and for which actual outcomes may differ from forecasted outcomes. The Company's policy is to include interest and penalties related to uncertain tax positions in income tax expense. The Company’s income tax returns, like those of most companies, are periodically audited by domestic and foreign tax authorities. These audits include questions regarding the Company’s tax filing positions, including the timing and amount of deductions and the allocation of income among various tax jurisdictions. At any one time, multiple tax years are subject to audit by the various tax authorities. A number of years may elapse before a particular matter for which the Company has established an accrual is audited and fully resolved or clarified. The Company adjusts its tax contingencies accrual and income tax provision in the period in which matters are effectively settled with tax authorities at amounts different from its established accrual, when the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. The Company includes its tax contingencies accrual, including accrued penalties and interest, in Other Long-term Liabilities on the Consolidated Balance Sheets unless the liability is expected to be paid within one year. Changes to the tax contingencies accrual, including accrued penalties and interest, are included in Provision for Income Taxes on the Consolidated Statements of Income (Loss). |
Self Insurance | Self-Insurance The Company is self-insured for medical, workers’ compensation, property, general liability and automobile liability up to certain stop-loss limits. Such costs are accrued based on known claims and an estimate of incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information and actuarial estimates. |
Noncontrolling Interest [Policy Text Block] | Noncontrolling Interest Noncontrolling interest represents the portion of equity interests of consolidated affiliates not owned by the Company. |
Share-based Compensation | Share-based Compensation The Company recognizes all share-based payments to employees and directors as compensation cost over the service period based on their estimated fair value on the date of grant. The Company estimates award forfeitures at the time awards are granted and adjusts, if necessary, in subsequent periods based on historical experience and expected future forfeitures. Compensation cost is recognized over the service period for the fair value of awards that actually vest. Compensation expense for awards without a performance condition is recognized, net of estimated forfeitures, using a single award approach (each award is valued as one grant, irrespective of the number of vesting tranches). Compensation expense for awards with a performance condition is recognized, net of estimated forfeitures, using a multiple award approach (each vesting tranche is valued as one grant). |
Revenue Recognition | Revenue Recognition In the first quarter of 2018, the Company adopted ASC 606, Revenue from Contracts with Customers , using the modified retrospective approach. Results for 2019 and 2018 are presented under ASC 606, while results for 2017 have not been adjusted and continue to be presented under the accounting standards in effect for that period. 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 reflect 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 in the Consolidated Statements of Income (Loss). 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 offers certain loyalty programs that allow customers to earn points based on purchasing activity. As customers accumulate points and reach point thresholds, they can 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 sells 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 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 (Loss). 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 2019 and 2018 Consolidated Statements of Income (Loss). The Company also recognizes revenues associated with franchise, license, wholesale and sourcing arrangements. Revenue recognized under franchise and license arrangements generally consists of royalties earned and recognized upon sale of merchandise by franchise and license partners to retail customers. Revenue is generally recognized under wholesale and sourcing arrangements at the time the title passes to the partner. |
Costs of Goods Sold, Buying and Occupancy | Costs of Goods Sold, Buying and Occupancy The Company’s costs of goods sold include merchandise costs, net of discounts and allowances, freight and inventory shrinkage. The Company’s buying and occupancy expenses primarily include payroll, benefit costs and operating expenses for its buying departments and distribution network, rent, common area maintenance, real estate taxes, utilities, maintenance, fulfillment expenses and depreciation for the Company’s stores, warehouse facilities and equipment. |
General, Administrative and Store Operating Expenses | General, Administrative and Store Operating Expenses The Company’s general, administrative and store operating expenses primarily include payroll and benefit costs for its store-selling and administrative departments (including corporate functions), marketing, advertising and other operating expenses not specifically categorized elsewhere in the Consolidated Statements of Income (Loss). |
Use of Estimates in the Preparation of Financial Statements Policy | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. Actual results may differ from those estimates, and the Company revises its estimates and assumptions as new information becomes available. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Depreciable Life Range of Property Plant and Equipment | The Company’s property and equipment are recorded at cost and depreciation is computed on a straight-line basis using the following depreciable life ranges: Category of Property and Equipment Depreciable Life Range Software, including software developed for internal use 3 - 5 years Store related assets 3 - 10 years Leasehold improvements Shorter of lease term or 10 years Non-store related building and site improvements 10 - 15 years Other property and equipment 20 years Buildings 30 years |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table provides a disaggregation of Net Sales for 2019 , 2018 and 2017 : 2019 2018 2017 (a) (in millions) Victoria’s Secret Stores (b) $ 5,112 $ 5,628 $ 5,879 Victoria’s Secret Direct 1,693 1,747 1,508 Total Victoria’s Secret 6,805 7,375 7,387 Bath & Body Works Stores (b) 4,212 3,907 3,589 Bath & Body Works Direct 958 724 559 Total Bath & Body Works 5,170 4,631 4,148 Victoria's Secret and Bath & Body Works International (c) 600 605 502 Other (d) 339 626 595 Total Net Sales $ 12,914 $ 13,237 $ 12,632 _______________ (a) 2017 represents a 53-week fiscal year. (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) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Computation | The following table provides shares utilized for the calculation of basic and diluted earnings per share for 2019 , 2018 and 2017 : 2019 2018 2017 (a) (in millions) Weighted-average Common Shares: Issued Shares 284 283 308 Treasury Shares (8 ) (7 ) (24 ) Basic Shares 276 276 284 Effect of Dilutive Options and Restricted Stock — 3 3 Diluted Shares 276 279 287 Anti-dilutive Options and Awards (b) 9 5 4 ________________ (a) In November 2017, the Company retired 36 million shares of its Treasury Stock. (b) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Summary of inventories | The following table provides details of inventories as of February 1, 2020 and February 2, 2019 : February 1, February 2, (in millions) Finished Goods Merchandise $ 1,152 $ 1,107 Raw Materials and Merchandise Components 135 141 Total Inventories $ 1,287 $ 1,248 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | The following table provides details of property and equipment, net as of February 1, 2020 and February 2, 2019 : February 1, February 2, (in millions) Land and Improvements $ 116 $ 116 Buildings and Improvements 496 492 Furniture, Fixtures, Software and Equipment 3,861 3,725 Leasehold Improvements 2,018 2,277 Construction in Progress 122 123 Total 6,613 6,733 Accumulated Depreciation and Amortization (4,127 ) (3,915 ) Property and Equipment, Net $ 2,486 $ 2,818 |
Details of Impairment of Long-Lived Assets | The following table provides long-lived store asset impairment charges included in the Consolidated Statements of Income (Loss) for 2019 and 2018 : Store Asset Impairment Operating Lease Asset Impairment Total Impairment 2019 2018 2019 2018 2019 2018 (in millions) Victoria's Secret (a) $ 47 $ 70 $ 4 $ — $ 51 $ 70 Victoria's Secret and Bath & Body Works International (b) 151 31 61 — 212 31 Total $ 198 $ 101 $ 65 $ — $ 263 $ 101 ________________ (a) Includes stores in the U.S. and Canada. (b) Includes stores in Greater China, the U.K. and Ireland. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Schedule of Lease Cost | The following table provides the components of lease cost for operating leases for 2019 : (in millions) Operating Lease Costs (a) $ 769 Variable Lease Costs 100 Short-term Lease Costs 30 Total Lease Cost $ 899 _______________ (a) As discussed in Note 7 , "Property and Equipment, Net," the Company recognized operating lease asset impairment charges of $65 million during 2019 , which is included as additional operating lease costs. |
Schedule of Future Maturities of Operating Lease Liabilities | The following table provides future maturities of operating lease liabilities as of February 1, 2020 : Fiscal Year (in millions) 2020 $ 674 2021 693 2022 619 2023 558 2024 481 Thereafter 1,475 Total Lease Payments $ 4,500 Less: Interest (970 ) Present Value of Operating Lease Liabilities $ 3,530 |
Schedule of Supplemental Information Related to Leases | The following table provides the weighted-average remaining lease term and discount rate for operating leases with lease liabilities as of February 1, 2020 : Weighted Average Remaining Lease Term (years) 7.4 Weighted Average Discount Rate 6.2 % |
Leases Rent Expenses | The following table provides rent expense, as presented under the prior accounting standard, for 2018 and 2017 : 2018 2017 (in millions) Store Rent: Fixed Minimum $ 663 $ 642 Contingent 72 67 Total Store Rent 735 709 Office, Equipment and Other 98 94 Gross Rent Expense 833 803 Sublease Rental Income (2 ) (2 ) Total Rent Expense $ 831 $ 801 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] |
Goodwill and Trade Names (Table
Goodwill and Trade Names (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Goodwill, Trade Names and Other Intangible Assets, Net [Abstract] | |
Schedule of Goodwill | The following table provides detail regarding the composition of goodwill as of February 1, 2020 and February 2, 2019 : February 1, 2020 February 2, 2019 (in millions) Bath & Body Works $ 628 $ 628 Victoria's Secret — 690 Victoria's Secret and Bath & Body Works International — 30 Goodwill $ 628 $ 1,348 |
Schedule of Indefinite-Lived Intangible Assets [Table Text Block] | The following table provides additional detail regarding the composition of trade names as of February 1, 2020 and February 2, 2019 : February 1, 2020 February 2, 2019 (in millions) Victoria's Secret $ 246 $ 246 Bath & Body Works 165 165 Trade Names $ 411 $ 411 |
Accrued Expenses and Other (Tab
Accrued Expenses and Other (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | The following table provides additional information about the composition of Accrued Expenses and Other as of February 1, 2020 and February 2, 2019 : February 1, February 2, 2019 (in millions) Deferred Revenue, Principally from Gift Card Sales $ 330 $ 316 Compensation, Payroll Taxes and Benefits 216 215 Interest 94 92 Taxes, Other than Income 74 78 Accrued Claims on Self-insured Activities 40 45 Rent 35 39 Returns Reserve 23 27 Other 240 270 Total Accrued Expenses and Other $ 1,052 $ 1,082 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The following table provides the components of the Company’s provision for income taxes for 2019 , 2018 and 2017 : 2019 2018 2017 (in millions) Current: U.S. Federal $ 156 $ 212 $ 366 U.S. State 35 37 49 Non-U.S. 23 16 22 Total 214 265 437 Deferred: U.S. Federal (7 ) (4 ) (114 ) U.S. State 1 2 6 Non-U.S. (23 ) (50 ) — Total (29 ) (52 ) (108 ) Provision for Income Taxes $ 185 $ 213 $ 329 |
Reconciliation of the Statutory Federal Income Tax Rate and the Effective Tax Rate | The following table provides the reconciliation between the statutory federal income tax rate and the effective tax rate for 2019 , 2018 and 2017 : 2019 2018 2017 Federal Income Tax Rate 21.0 % 21.0 % 33.7 % State Income Taxes, Net of Federal Income Tax Effect (23.0 %) 6.0 % 3.6 % Impact of Non-U.S. Operations (5.7 %) 2.3 % (1.4 %) Goodwill Impairment (80.8 %) — % — % Change in Valuation Allowance (18.5 %) (1.1 %) (0.1 %) Divestiture of La Senza — % (2.7 %) — % U.S. Net Deferred Tax Liability Remeasurement — % — % (12.1 %) Deemed Mandatory Repatriation — % — % 5.1 % Share-Based Compensation (7.7 %) 1.0 % (1.0 %) Uncertain Tax Positions 12.3 % (0.5 %) (1.2 %) Other Items, Net 0.5 % (1.1 %) (1.5 %) Effective Tax Rate (101.9 %) 24.9 % 25.1 % |
Effect of Temporary Differences that Cause Deferred Income Taxes | The following table provides the effect of temporary differences that cause deferred income taxes as of February 1, 2020 and February 2, 2019 . Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carryforwards at the end of the respective year. February 1, 2020 February 2, 2019 Assets Liabilities Total Assets Liabilities Total (in millions) Operating Loss Carryforwards $ 247 $ — $ 247 $ 217 $ — $ 217 Non-qualified Retirement Plan 62 — 62 64 — 64 Leases 746 (712 ) 34 50 — 50 Share-based Compensation 40 — 40 47 — 47 Deferred Revenue 20 — 20 28 — 28 Property and Equipment — (230 ) (230 ) — (278 ) (278 ) Trade Names and Other Intangibles — (94 ) (94 ) — (93 ) (93 ) Other Assets — (60 ) (60 ) — (60 ) (60 ) Other, Net 70 (20 ) 50 60 (27 ) 33 Valuation Allowance (204 ) — (204 ) (172 ) — (172 ) Total Deferred Income Taxes $ 981 $ (1,116 ) $ (135 ) $ 294 $ (458 ) $ (164 ) |
Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits for U.S. federal, state & non-U.S. tax jurisdictions for 2019 , 2018 and 2017 , without interest and penalties: 2019 2018 2017 (in millions) Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year $ 114 $ 67 $ 90 Increases to Unrecognized Tax Benefits for Prior Years 15 35 3 Decreases to Unrecognized Tax Benefits for Prior Years (22 ) (25 ) (22 ) Increases to Unrecognized Tax Benefits as a Result of Current Year Activity 3 44 7 Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities (16 ) — (2 ) Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations (6 ) (7 ) (9 ) Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year $ 88 $ 114 $ 67 |
Long-term Debt and Borrowing _2
Long-term Debt and Borrowing Facilities (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Schedule of Long-term Debt Instruments | The following table provides the Company’s outstanding debt balance, net of unamortized debt issuance costs and discounts, as of February 1, 2020 and February 2, 2019 : February 1, February 2, (in millions) Senior Debt with Subsidiary Guarantee $1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) $ 991 $ 990 $860 million, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) 858 952 $700 million, 6.75% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) 693 693 $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) 498 498 $500 million, 5.25% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) 496 496 $500 million, 7.50% Fixed Interest Rate Notes due June 2029 ("2029 Notes") 487 — $450 million, 6.625% Fixed Interest Rate Notes due April 2021 (“2021 Notes”) 450 776 $297 million, 6.694% Fixed Interest Rate Notes due January 2027 ("2027 Notes") 276 273 $338 million, 7.00% Fixed Interest Rate Notes due May 2020 (“2020 Notes”) — 337 Secured Foreign Facilities 103 91 Total Senior Debt with Subsidiary Guarantee $ 4,852 $ 5,106 Senior Debt $350 million, 6.95% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) $ 348 $ 348 $300 million, 7.60% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) 298 297 Unsecured Foreign Facilities 50 60 Total Senior Debt $ 696 $ 705 Total $ 5,548 $ 5,811 Current Debt (61 ) (72 ) Total Long-term Debt, Net of Current Portion $ 5,487 $ 5,739 |
Schedule of Principal Payments due on Long-term Debt | The following table provides principal payments due on outstanding debt in the next five fiscal years and the remaining years thereafter: Fiscal Year (in millions) 2020 $ 61 2021 459 2022 869 2023 569 2024 5 Thereafter $ 3,648 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) - Foreign Exchange Contract [Member] | 12 Months Ended |
Feb. 01, 2020 | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table provides the U.S. dollar notional amount of outstanding foreign currency derivative financial instruments as of February 1, 2020 and February 2, 2019 : February 1, February 2, (in millions) Notional Amount $ 139 $ 147 |
Cash Flow Hedging [Member] | |
Schedule of Derivative Instruments in Statement of Financial Position | The following table provides a summary of the fair value and balance sheet classification of outstanding derivative financial instruments designated as foreign currency cash flow hedges as of February 1, 2020 and February 2, 2019 : February 1, February 2, (in millions) Other Current Assets $ 1 $ 2 Accrued Expenses and Other 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 2019 and 2018 : 2019 2018 (in millions) Gain (Loss) Recognized in Accumulated Other Comprehensive Income $ 2 $ 11 (Gain) Loss Reclassified from Accumulated Other Comprehensive Income into Costs of Goods Sold, Buying and Occupancy Expense (5 ) 2 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
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 outstanding publicly traded debt as of February 1, 2020 and February 2, 2019 : February 1, February 2, (in millions) Principal Value $ 5,458 $ 5,722 Fair Value, Estimated (a) 5,555 5,340 ________________ (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 February 1, 2020 and February 2, 2019 : Level 1 Level 2 Level 3 Total (in millions) As of February 1, 2020 Assets: Cash and Cash Equivalents $ 1,499 $ — $ — $ 1,499 Foreign Currency Cash Flow Hedges — 1 — 1 Liabilities: Foreign Currency Cash Flow Hedges — 1 — 1 As of February 2, 2019 Assets: Cash and Cash Equivalents $ 1,413 $ — $ — $ 1,413 Marketable Equity Securities 11 — — 11 Foreign Currency Cash Flow Hedges — 2 — 2 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Comprehensive Income Loss | |
Components of Accumulated Other Comprehensive Income (Loss) | The following table provides the rollforward of accumulated other comprehensive income for 2018 : Foreign Currency Translation Cash Flow Hedges Marketable Equity 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, Investments - Equity Securities — — (2 ) (2 ) Balance as of February 4, 2018 32 (10 ) — 22 Other Comprehensive Income (Loss) Before Reclassifications (20 ) 11 — (9 ) Amounts Reclassified from Accumulated Other Comprehensive Income 45 2 — 47 Tax Effect — (1 ) — (1 ) Current-period Other Comprehensive Income 25 12 — 37 Balance as of February 2, 2019 $ 57 $ 2 $ — $ 59 The following table provides the rollforward of accumulated other comprehensive income for 2019 : Foreign Currency Translation Cash Flow Hedges Accumulated Other Comprehensive Income (in millions) Balance as of February 2, 2019 $ 57 $ 2 $ 59 Other Comprehensive Income (Loss) Before Reclassifications (5 ) 2 (3 ) Amounts Reclassified from Accumulated Other Comprehensive Income — (5 ) (5 ) Tax Effect — 1 1 Current-period Other Comprehensive Income (Loss) (5 ) (2 ) (7 ) Balance as of February 1, 2020 $ 52 $ — $ 52 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Retirement Benefits [Abstract] | |
Annual activity for the non-qualified plan and year-end liability | The following table provides the Company’s annual activity for this plan and year-end liability, included in Other Long-term Liabilities on the Consolidated Balance Sheets, as of February 1, 2020 and February 2, 2019 : February 1, February 2, (in millions) Balance at Beginning of Year $ 278 $ 269 Contributions: Associate 8 10 Company 12 11 Interest 14 13 Distributions (32 ) (25 ) Balance at End of Year $ 280 $ 278 |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Company's repurchase program | Under the authority of the Company’s Board of Directors, the Company repurchased shares of its common stock under the following repurchase programs for fiscal 2018 and 2017 : Shares Repurchased Amount Repurchased Average Stock Price of Shares Repurchased within Program Repurchase Program Amount Authorized 2018 2017 2018 2017 (in millions) (in thousands) (in millions) March 2018 $ 250 4,852 NA $ 171 NA $ 35.29 September 2017 250 527 3,858 25 $ 202 $ 51.72 February 2017 250 NA 5,500 NA 240 $ 43.57 February 2016 500 NA 51 NA 3 $ 76.47 Total 5,379 9,409 $ 196 $ 445 |
Schedule Of Dividends Paid | Under the authority and declaration of the Board of Directors, the Company paid the following dividends during fiscal 2019 , 2018 and 2017 : Ordinary Dividends Total Paid (per share) (in millions) 2019 Fourth Quarter $ 0.30 $ 83 Third Quarter 0.30 83 Second Quarter 0.30 83 First Quarter 0.30 83 2019 Total $ 1.20 $ 332 2018 Fourth Quarter $ 0.60 $ 166 Third Quarter 0.60 165 Second Quarter 0.60 167 First Quarter 0.60 168 2018 Total $ 2.40 $ 666 2017 Fourth Quarter $ 0.60 $ 170 Third Quarter 0.60 172 Second Quarter 0.60 172 First Quarter 0.60 172 2017 Total $ 2.40 $ 686 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock Option Activity | The following table provides the Company’s stock option activity for the fiscal year ended February 1, 2020 : Number of Shares Weighted Average Option Price Per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding as of February 2, 2019 5,292 $ 53.14 Granted 519 27.67 Exercised (136 ) 7.44 Cancelled (395 ) 52.22 Outstanding as of February 1, 2020 5,280 $ 51.87 6.03 $ 318 Vested and Expected to Vest as of February 1, 2020 (a) 5,190 52.29 5.99 318 Options Exercisable as of February 1, 2020 3,372 57.07 4.93 318 ________________ (a) The number of options expected to vest includes an estimate of expected forfeitures. |
Weighted-Average Assumptions | The following table contains the weighted-average assumptions used during 2019 , 2018 and 2017 : 2019 2018 2017 Expected Volatility 40 % 36 % 28 % Risk-free Interest Rate 2.2 % 2.5 % 1.5 % Dividend Yield 4.4 % 5.8 % 5.1 % Expected Life (in years) 3.2 2.9 3.0 |
Restricted Stock Activity | The following table provides the Company’s restricted stock activity for the fiscal year ended February 1, 2020 : Number of Shares Weighted Average Grant Date Fair Value (in thousands) Unvested as of February 2, 2019 6,689 $ 45.29 Granted 4,161 23.34 Vested (1,570 ) 66.44 Cancelled (618 ) 30.75 Unvested as of February 1, 2020 8,662 $ 32.00 |
Share-Based Compensation Expense | The following table provides share-based compensation expense included in the Consolidated Statements of Income (Loss) for 2019 , 2018 and 2017 : 2019 2018 2017 (in millions) Costs of Goods Sold, Buying and Occupancy $ 29 $ 29 $ 32 General, Administrative and Store Operating Expenses 58 68 70 Total Share-based Compensation Expense $ 87 $ 97 $ 102 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Segment Information [Abstract] | |
Schedule of Segment Reporting Information | The following table provides the Company’s segment information as of and for the fiscal years ended February 1, 2020 , February 2, 2019 and February 3, 2018 : Victoria’s Secret Bath & Body Works Victoria’s Secret and Bath & Body Works International Other Total (in millions) 2019 Net Sales $ 6,805 $ 5,170 $ 600 $ 339 $ 12,914 Depreciation and Amortization 284 155 40 109 588 Operating Income (Loss) (a) (616 ) 1,191 (236 ) (81 ) 258 Total Assets (b) (c) 3,883 2,837 939 2,466 10,125 Capital Expenditures 76 206 24 152 458 2018 Net Sales $ 7,375 $ 4,631 $ 605 $ 626 $ 13,237 Depreciation and Amortization 280 121 43 103 547 Operating Income (Loss) (d) 462 1,077 (37 ) (265 ) 1,237 Total Assets (b) 3,129 1,898 842 2,221 8,090 Capital Expenditures 150 242 97 140 629 2017 Net Sales $ 7,387 $ 4,148 $ 502 $ 595 $ 12,632 Depreciation and Amortization 279 101 30 114 524 Operating Income (Loss) 932 953 5 (162 ) 1,728 Total Assets (b) 3,369 1,753 800 2,227 8,149 Capital Expenditures 270 232 111 94 707 ________________ (a) Victoria's Secret includes goodwill and long-lived store asset impairment charges of $690 million and $51 million , respectively. Victoria's Secret and Bath & Body Works International includes long-lived store asset and goodwill impairment charges of $212 million and $30 million , respectively. For additional information see Note 7 , “Property and Equipment, Net" and Note 9 , "Goodwill and Trade Names." (b) Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. (c) The 2019 amounts reflect the Company's adoption of ASC 842, Leases , in the first quarter of 2019. (d) Victoria's Secret and Victoria's Secret and Bath & Body Works International includes long-lived store asset impairment charges of $70 million and $31 million , respectively, and Other includes a loss on the sale of La Senza of $99 million and Henri Bendel closures costs of $23 million . For additional information see Note 5 , “Restructuring Activities" and Note 7 , “Property and Equipment, Net." |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Data [Abstract] | |
Summarized Quarterly Financial Data | The following table provides summarized quarterly financial data for 2019 : Fiscal Quarter Ended May 4, 2019 August 3, 2019 (a) November 2, 2019 (b)(c)(d) February 1, 2020 (e)(f) (in millions except per share data) Net Sales $ 2,629 $ 2,902 $ 2,677 $ 4,707 Gross Profit 934 983 741 1,794 Operating Income (Loss) 153 175 (151 ) 82 Income (Loss) Before Income Taxes 60 42 (277 ) (7 ) Net Income (Loss) 40 38 (252 ) (192 ) Net Income (Loss) Per Basic Share (g) $ 0.15 $ 0.14 $ (0.91 ) $ (0.70 ) Net Income (Loss) Per Diluted Share (g) $ 0.14 $ 0.14 $ (0.91 ) $ (0.70 ) ________________ (a) Net income includes the effect of a $40 million pre-tax loss ( $30 million after-tax) associated with the early redemption of $764 million of outstanding notes maturing between 2020 and 2022. (b) Gross profit includes the effect of a $218 million pre-tax impairment charge ( $200 million after-tax) related to certain Victoria's Secret long-lived store assets. (c) Operating loss includes the effect of a $30 million (no tax impact) goodwill impairment charge related to the Greater China reporting unit. (d) Net loss includes the effect of a $37 million pre-tax charge ( $28 million after-tax) to increase reserves related to ongoing contingent obligations for the La Senza business. (e) Gross profit includes the effect of a $35 million pre-tax impairment charge ( $30 million after-tax) related to certain Victoria's Secret long-lived store assets. (f) Operating income includes the effect of a $690 million pre-tax goodwill impairment charge ( $687 million after-tax) related to the Victoria's Secret reporting unit. (g) Due to changes in stock prices during the year and timing of issuances of shares, the cumulative total of quarterly net income (loss) per share amounts may not equal the net income (loss) per share for the year. The following table provides summarized quarterly financial data for 2018 : Fiscal Quarter Ended May 5, August 4, November 3, February 2, (in millions except per share data) Net Sales $ 2,626 $ 2,984 $ 2,775 $ 4,852 Gross Profit 944 1,059 928 1,968 Operating Income 155 228 54 800 Income (Loss) Before Income Taxes 59 129 (41 ) 710 Net Income (Loss) 48 99 (43 ) 540 Net Income (Loss) Per Basic Share (d) $ 0.17 $ 0.36 $ (0.16 ) $ 1.96 Net Income (Loss) Per Diluted Share (d) $ 0.17 $ 0.36 $ (0.16 ) $ 1.94 ________________ (a) Gross profit includes the effect of an $81 million pre-tax impairment charge ( $73 million after-tax) related to certain Victoria's Secret long-lived store assets. (b) Operating income includes the effect of $20 million ( $15 million after-tax) of Henri Bendel closure costs. (c) Operating income includes the effect of a pre-tax loss of $99 million ( $55 million after-tax) related to the divestiture of La Senza. (d) Due to changes in stock prices during the year and timing of issuances and repurchases of shares, the cumulative total of quarterly net income (loss) per share amounts may not equal the net income per share for the year. |
Supplemental Guarantor Financ_2
Supplemental Guarantor Financial Information Supplemental Guarantor Financial Information (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Supplemental Guarantor Financial Statements [Abstract] | |
Condensed Balance Sheet [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) February 1, 2020 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 1,231 $ 268 $ — $ 1,499 Accounts Receivable, Net — 183 123 — 306 Inventories — 1,138 149 — 1,287 Other — 85 68 — 153 Total Current Assets — 2,637 608 — 3,245 Property and Equipment, Net — 1,747 739 — 2,486 Operating Lease Assets — 2,545 508 — 3,053 Goodwill — 628 — — 628 Trade Names — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 3,862 20,231 2,937 (27,030 ) — Deferred Income Taxes — 8 76 — 84 Other Assets 130 9 690 (611 ) 218 Total Assets $ 3,992 $ 28,216 $ 5,558 $ (27,641 ) $ 10,125 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ — $ 331 $ 316 $ — $ 647 Accrued Expenses and Other 93 593 366 — 1,052 Current Debt — — 61 — 61 Current Operating Lease Liabilities — 392 86 — 478 Income Taxes (11 ) 89 56 — 134 Total Current Liabilities 82 1,405 885 — 2,372 Deferred Income Taxes — (37 ) 256 — 219 Long-term Debt 5,395 597 92 (597 ) 5,487 Long-term Operating Lease Liabilities — 2,522 530 — 3,052 Other Long-term Liabilities 62 383 59 (14 ) 490 Total Equity (Deficit) (1,547 ) 23,346 3,736 (27,030 ) (1,495 ) Total Liabilities and Equity (Deficit) $ 3,992 $ 28,216 $ 5,558 $ (27,641 ) $ 10,125 L BRANDS, INC. CONDENSED CONSOLIDATING BALANCE SHEET (in millions) February 2, 2019 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. ASSETS Current Assets: Cash and Cash Equivalents $ — $ 997 $ 416 $ — $ 1,413 Accounts Receivable, Net — 241 126 — 367 Inventories — 1,093 155 — 1,248 Other — 139 93 — 232 Total Current Assets — 2,470 790 — 3,260 Property and Equipment, Net — 1,922 896 — 2,818 Goodwill — 1,318 30 — 1,348 Trade Names — 411 — — 411 Net Investments in and Advances to/from Consolidated Affiliates 4,755 19,737 2,047 (26,539 ) — Deferred Income Taxes — 9 53 — 62 Other Assets 127 15 670 (621 ) 191 Total Assets $ 4,882 $ 25,882 $ 4,486 $ (27,160 ) $ 8,090 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts Payable $ — $ 363 $ 348 $ — $ 711 Accrued Expenses and Other 92 597 393 — 1,082 Current Debt — — 72 — 72 Income Taxes (7 ) 100 28 — 121 Total Current Liabilities 85 1,060 841 — 1,986 Deferred Income Taxes 1 (44 ) 269 — 226 Long-term Debt 5,661 606 79 (607 ) 5,739 Other Long-term Liabilities 59 852 107 (14 ) 1,004 Total Equity (Deficit) (924 ) 23,408 3,190 (26,539 ) (865 ) Total Liabilities and Equity (Deficit) $ 4,882 $ 25,882 $ 4,486 $ (27,160 ) $ 8,090 |
Condensed Income Statement [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS) (in millions) 2019 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated L Brands, Inc. Net Sales $ — $ 12,317 $ 3,382 $ (2,785 ) $ 12,914 Costs of Goods Sold, Buying and Occupancy — (8,074 ) (2,810 ) 2,420 (8,464 ) Gross Profit — 4,243 572 (365 ) 4,450 General, Administrative and Store Operating Expenses (11 ) (3,380 ) (331 ) 250 (3,472 ) Impairment of Goodwill — (690 ) (30 ) — (720 ) Operating Income (Loss) (11 ) 173 211 (115 ) 258 Interest Expense (370 ) (116 ) (7 ) 115 (378 ) Other Income (Loss) (40 ) — (21 ) — (61 ) Income (Loss) Before Income Taxes (421 ) 57 183 — (181 ) Provision (Benefit) for Income Taxes 2 55 128 — 185 Equity in Earnings (Loss), Net of Tax 57 39 390 (486 ) — Net Income (Loss) $ (366 ) $ 41 $ 445 $ (486 ) $ (366 ) L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) 2017 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Sales $ — $ 11,931 $ 3,728 $ (3,027 ) $ 12,632 Costs of Goods Sold, Buying and Occupancy — (7,463 ) (2,868 ) 2,658 (7,673 ) Gross Profit — 4,468 860 (369 ) 4,959 General, Administrative and Store Operating Expenses (10 ) (3,063 ) (426 ) 268 (3,231 ) Operating Income (Loss) (10 ) 1,405 434 (101 ) 1,728 Interest Expense (403 ) (99 ) (13 ) 109 (406 ) Other Income (Loss) (46 ) 11 25 — (10 ) Income (Loss) Before Income Taxes (459 ) 1,317 446 8 1,312 Provision (Benefit) for Income Taxes 65 316 (52 ) — 329 Equity in Earnings, Net of Tax 1,507 522 412 (2,441 ) — Net Income (Loss) $ 983 $ 1,523 $ 910 $ (2,433 ) $ 983 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME (in millions) 2018 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Sales $ — $ 12,467 $ 3,780 $ (3,010 ) $ 13,237 Costs of Goods Sold, Buying and Occupancy — (8,015 ) (2,996 ) 2,673 (8,338 ) Gross Profit — 4,452 784 (337 ) 4,899 General, Administrative and Store Operating Expenses (9 ) (3,304 ) (482 ) 232 (3,563 ) Loss on Divestiture of La Senza — (24 ) (75 ) — (99 ) Operating Income (Loss) (9 ) 1,124 227 (105 ) 1,237 Interest Expense (379 ) (108 ) (6 ) 108 (385 ) Other Income (Loss) — 13 (8 ) — 5 Income (Loss) Before Income Taxes (388 ) 1,029 213 3 857 Provision (Benefit) for Income Taxes 12 100 101 — 213 Equity in Earnings, Net of Tax 1,044 169 353 (1,566 ) — Net Income (Loss) $ 644 $ 1,098 $ 465 $ (1,563 ) $ 644 |
Condensed Comprehensive Income Statement [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) 2018 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Income (Loss) $ 644 $ 1,098 $ 465 $ (1,563 ) $ 644 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — (20 ) — (20 ) Reclassification of Foreign Currency Translation to Earnings — — 45 — 45 Unrealized Gain (Loss) on Cash Flow Hedges — — 10 — 10 Reclassification of Cash Flow Hedges to Earnings — — 2 — 2 Total Other Comprehensive Income (Loss), Net of Tax — — 37 — 37 Total Comprehensive Income (Loss) $ 644 $ 1,098 $ 502 $ (1,563 ) $ 681 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) (in millions) 2019 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Income (Loss) $ (366 ) $ 41 $ 445 $ (486 ) $ (366 ) Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — (5 ) — (5 ) Unrealized Gain (Loss) on Cash Flow Hedges — — 2 — 2 Reclassification of Cash Flow Hedges to Earnings — — (4 ) — (4 ) Total Other Comprehensive Income (Loss), Net of Tax — — (7 ) — (7 ) Total Comprehensive Income (Loss) $ (366 ) $ 41 $ 438 $ (486 ) $ (373 ) L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (in millions) 2017 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Income (Loss) $ 983 $ 1,523 $ 910 $ (2,433 ) $ 983 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation — — 23 — 23 Unrealized Gain (Loss) on Cash Flow Hedges — — (20 ) — (20 ) Reclassification of Cash Flow Hedges to Earnings — — 7 — 7 Unrealized Gain on Marketable Securities — — 2 — 2 Total Other Comprehensive Income (Loss), Net of Tax — — 12 — 12 Total Comprehensive Income (Loss) $ 983 $ 1,523 $ 922 $ (2,433 ) $ 995 |
Condensed Cash Flow Statement [Table Text Block] | L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) 2017 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ (401 ) $ 1,353 $ 454 $ — $ 1,406 Investing Activities: Capital Expenditures — (495 ) (212 ) — (707 ) Other Investing Activities — (1 ) 10 — 9 Net Cash Provided by (Used for) Investing Activities — (496 ) (202 ) — (698 ) Financing Activities: Proceeds from Issuance of Long-term Debt, Net of Issuance Costs 495 — — — 495 Payments of Long-term Debt (540 ) — — — (540 ) Borrowings from Foreign Facilities — — 96 — 96 Repayments of Foreign Facilities — — (44 ) — (44 ) Dividends Paid (686 ) — — — (686 ) Repurchases of Common Stock (446 ) — — — (446 ) Tax Payments related to Share-based Awards (32 ) — — — (32 ) Net Financing Activities and Advances to/from Consolidated Affiliates 1,577 (1,252 ) (325 ) — — Proceeds from Exercise of Stock Options 38 — — — 38 Financing Costs and Other (5 ) (3 ) — — (8 ) Net Cash Provided by (Used for) Financing Activities 401 (1,255 ) (273 ) — (1,127 ) Effects of Exchange Rate Changes on Cash — — — — — Net Increase (Decrease) in Cash and Cash Equivalents — (398 ) (21 ) — (419 ) Cash and Cash Equivalents, Beginning of Year — 1,562 372 — 1,934 Cash and Cash Equivalents, End of Year $ — $ 1,164 $ 351 $ — $ 1,515 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) 2019 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ (427 ) $ 837 $ 826 $ — $ 1,236 Investing Activities: Capital Expenditures — (276 ) (182 ) — (458 ) Net Investments in Consolidated Affiliates — (13 ) — 13 — Other Investing Activities — 12 (34 ) — (22 ) Net Cash Provided by (Used for) Investing Activities — (277 ) (216 ) 13 (480 ) Financing Activities: Proceeds from Issuance of Long-term Debt, Net of Issuance Costs 486 — — — 486 Payments of Long-term Debt (799 ) — — — (799 ) Borrowings from Secured Revolving Facility 12 — — — 12 Repayments of Secured Revolving Facility (12 ) — — — (12 ) Borrowings from Foreign Facilities — — 167 — 167 Repayments of Foreign Facilities — — (162 ) — (162 ) Dividends Paid (332 ) — — — (332 ) Tax Payments related to Share-based Awards (13 ) — — — (13 ) Net Financing Activities and Advances to/from Consolidated Affiliates 1,090 (318 ) (759 ) (13 ) — Proceeds from Exercise of Stock Options 1 — — — 1 Financing Costs and Other (6 ) (8 ) — — (14 ) Net Cash Provided by (Used for) Financing Activities 427 (326 ) (754 ) (13 ) (666 ) Effects of Exchange Rate Changes on Cash — — (4 ) — (4 ) Net Increase (Decrease) in Cash and Cash Equivalents — 234 (148 ) — 86 Cash and Cash Equivalents, Beginning of Year — 997 416 — 1,413 Cash and Cash Equivalents, End of Year $ — $ 1,231 $ 268 $ — $ 1,499 L BRANDS, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (in millions) 2018 L Brands, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ (424 ) $ 1,541 $ 260 $ — $ 1,377 Investing Activities: Capital Expenditures — (398 ) (231 ) — (629 ) Net Investments in Consolidated Affiliates — — (21 ) 21 — Other Investing Activities — 4 16 — 20 Net Cash Provided by (Used for) Investing Activities — (394 ) (236 ) 21 (609 ) Financing Activities: Payments of Long-term Debt (52 ) — — — (52 ) Borrowings from Secured Revolving Facility 92 — — — 92 Repayments of Secured Revolving Facility (92 ) — — — (92 ) Borrowings from Foreign Facilities — — 172 — 172 Repayments of Foreign Facilities — — (109 ) — (109 ) Dividends Paid (666 ) — — — (666 ) Repurchases of Common Stock (198 ) — — — (198 ) Tax Payments related to Share-based Awards (13 ) — — — (13 ) Net Financing Activities and Advances to/from Consolidated Affiliates 1,355 (1,310 ) (24 ) (21 ) — Proceeds from Exercise of Stock Options 1 — — — 1 Financing Costs and Other (3 ) (4 ) — — (7 ) Net Cash Provided by (Used for) Financing Activities 424 (1,314 ) 39 (21 ) (872 ) Effects of Exchange Rate Changes on Cash — — 2 — 2 Net Increase (Decrease) in Cash and Cash Equivalents — (167 ) 65 — (102 ) Cash and Cash Equivalents, Beginning of Year — 1,164 351 — 1,515 Cash and Cash Equivalents, End of Year $ — $ 997 $ 416 $ — $ 1,413 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | Feb. 20, 2020 | |
Maturity of short term investments, maximum, in days | 90 | |||
Outstanding Check Carrying Amount | $ 15 | $ 13 | ||
Advertising expense | $ 428 | $ 476 | $ 383 | |
Subsequent Event [Member] | ||||
Ownership Percentage Sold | 55.00% | |||
Victoria's Secret [Member] | Subsequent Event [Member] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 45.00% |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies (Depreciable Life Range of Property Plant and Equipment) (Details) | 12 Months Ended |
Feb. 01, 2020 | |
Software, including software developed for internal use | |
Depreciable Life Range | 3 - 5 years |
Store related assets | |
Depreciable Life Range | 3 - 10 years |
Leasehold improvements | |
Depreciable Life Range | Shorter of lease term or 10 years |
Non-store related building and site improvements | |
Depreciable Life Range | 10 - 15 years |
Other property and equipment | |
Depreciable Life Range | 20 years |
Buildings | |
Depreciable Life Range | 30 years |
New Accounting Pronouncements L
New Accounting Pronouncements Leases (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 03, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Present Value of Operating Lease Liabilities | $ 3,530 | |
Operating Lease, Right-of-Use Asset | $ 3,053 | |
Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Present Value of Operating Lease Liabilities | $ 3,700 | |
Operating Lease, Right-of-Use Asset | 3,300 | |
Difference Between ROU Asset and Lease Liabilities upon adoption of ASC 842 | 470 | |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 2 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Net Sales | $ 4,707 | $ 2,677 | $ 2,902 | $ 2,629 | $ 4,852 | $ 2,775 | $ 2,984 | $ 2,626 | $ 12,914 | $ 13,237 | $ 12,632 |
Contract with Customer, Liability | 342 | 331 | 342 | 331 | |||||||
Contract with Customer, Liability, Revenue Recognized | 218 | ||||||||||
Accounts Receivable [Member] | |||||||||||
Contract with Customer, Asset, after Allowance for Credit Loss | 152 | 150 | 152 | 150 | |||||||
Accrued Liabilities [Member] | |||||||||||
Contract with Customer, Liability | 330 | $ 316 | 330 | 316 | |||||||
Other Long-term Liabilities [Member] | |||||||||||
Contract with Customer, Liability | $ 12 | 12 | |||||||||
Victoria's Secret [Member] | |||||||||||
Net Sales | 7,375 | 7,387 | |||||||||
Other Operating Segments [Member] | |||||||||||
Net Sales | 626 | 595 | |||||||||
Victoria's Secret and Bath & Body Works International [Member] | |||||||||||
Net Sales | 600 | 605 | 502 | ||||||||
Bath & Body Works [Member] | |||||||||||
Net Sales | 4,631 | 4,148 | |||||||||
Bath & Body Works Direct [Member] | |||||||||||
Net Sales | 958 | 724 | 559 | ||||||||
Victoria's Secret Stores [Member] | |||||||||||
Net Sales | 5,112 | 5,628 | 5,879 | ||||||||
Victoria's Secret Direct [Member] | |||||||||||
Net Sales | 1,693 | 1,747 | 1,508 | ||||||||
Bath & Body Works Stores [Member] | |||||||||||
Net Sales | $ 4,212 | $ 3,907 | $ 3,589 |
Earnings Per Share (Shares Util
Earnings Per Share (Shares Utilized for the Calculation of Basic and Diluted Earnings per Share) (Details) - shares shares in Millions | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Treasury Stock, Shares, Retired | 36 | |||
Weighted-average Common Shares: | ||||
Issued Shares | 284 | 283 | 308 | |
Treasury Shares | (8) | (7) | (24) | |
Basic Shares | 276 | 276 | 284 | |
Effect of Dilutive Options and Restricted Stock | 0 | 3 | 3 | |
Diluted Shares | 276 | 279 | 287 | |
Anti-dilutive Options and Awards | [1] | 9 | 5 | 4 |
[1] | These options and awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. |
Restructuring Activities (Detai
Restructuring Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Nov. 02, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Loss on Divestiture of La Senza | $ 0 | $ (99) | $ 0 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | 45 | 0 | |||
Disposal Group, Not Discontinued Operatin, After-Tax Loss on Disposal | $ 55 | |||||
Disposal Group, Not Discontinued Operation, Tax Benefit on Disposal | 44 | |||||
Proceeds from Divestiture of Businesses | 12 | |||||
La Senza Charges | $ 37 | $ 37 | 0 | $ 0 | ||
Restructuring Charges | $ 3 | $ 20 | ||||
Cost of Goods Sold, Buying and Occupancy [Member] | ||||||
Restructuring Charges | 14 | |||||
General, Administrative and Store Operating Expenses [Member] | ||||||
Restructuring Charges | $ 9 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Inventory, Net [Abstract] | ||
Finished Goods Merchandise | $ 1,152 | $ 1,107 |
Raw Materials and Merchandise Components | 135 | 141 |
Total Inventories | $ 1,287 | $ 1,248 |
Property and Equipment, Net (Na
Property and Equipment, Net (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation of Long-lived Assets | $ 588 | $ 590 | $ 571 |
Property and Equipment, Net (De
Property and Equipment, Net (Details of Property and Equipment, Net) (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Property, Plant and Equipment [Abstract] | ||
Land and Land Improvements | $ 116 | $ 116 |
Buildings and Improvements | 496 | 492 |
Furniture, Fixtures, Software and Equipment | 3,861 | 3,725 |
Leasehold Improvements | 2,018 | 2,277 |
Construction in Progress | 122 | 123 |
Total | 6,613 | 6,733 |
Accumulated Depreciation and Amortization | (4,127) | (3,915) |
Property and Equipment, Net | $ 2,486 | $ 2,818 |
Property and Equipment, Net Pro
Property and Equipment, Net Property and Equipment, Net (Long-Lived Assets Impairment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Feb. 01, 2020 | Nov. 02, 2019 | Nov. 03, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Total Impairment | $ 218 | $ 81 | $ 263 | $ 101 | $ 0 | |
Victoria's Secret Segment [Member] | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Total Impairment | 51 | 70 | ||||
Victoria's Secret and Bath & Body Works International [Member] | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Total Impairment | $ 35 | 212 | 31 | |||
Store related assets | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Total Impairment | 198 | 101 | ||||
Store related assets | Victoria's Secret Segment [Member] | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Total Impairment | 47 | 70 | ||||
Store related assets | Victoria's Secret and Bath & Body Works International [Member] | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Total Impairment | 151 | 31 | ||||
Operating Lease Asset [Member] | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Total Impairment | 65 | 0 | ||||
Operating Lease Asset [Member] | Victoria's Secret Segment [Member] | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Total Impairment | 4 | 0 | ||||
Operating Lease Asset [Member] | Victoria's Secret and Bath & Body Works International [Member] | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Total Impairment | $ 61 | $ 0 |
Leases (Lease Cost) (Details)
Leases (Lease Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Nov. 02, 2019 | Nov. 03, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Lessee, Lease, Description [Line Items] | |||||
Operating Lease Costs | $ 769 | ||||
Variable Lease Costs | 100 | ||||
Short-term Lease Costs | 30 | ||||
Total Lease Cost | 899 | ||||
Impairment of Long-Lived Assets Held-for-use | $ 218 | $ 81 | 263 | $ 101 | $ 0 |
Operating Lease Asset [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | $ 65 | $ 0 |
Leases (Lease Maturities) (Deta
Leases (Lease Maturities) (Details) $ in Millions | Feb. 01, 2020USD ($) |
Leases [Abstract] | |
2020 | $ 674 |
2021 | 693 |
2022 | 619 |
2023 | 558 |
2024 | 481 |
Thereafter | 1,475 |
Total Lease Payments | 4,500 |
Less: Interest | (970) |
Present Value of Operating Lease Liabilities | $ 3,530 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Leases [Abstract] | ||
Additional Operating Lease Commitments Not Yet Commenced | $ 264 | |
Operating Lease, Payments | 708 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 313 | |
Finance Lease, Right-of-Use Asset | 21 | $ 26 |
Finance Lease, Liability, Current | 8 | 8 |
Finance Lease, Liability, Noncurrent | 13 | 19 |
Asset Retirement Obligation | $ 22 | $ 18 |
Leases (Lease Term and Discount
Leases (Lease Term and Discount Rate) (Details) | Feb. 01, 2020 |
Leases [Abstract] | |
Weighted Average Remaining Lease Term (years) | 7 years 4 months 24 days |
Weighted Average Discount Rate | 6.20% |
Leases (Leases Rent Expenses) (
Leases (Leases Rent Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 02, 2019 | Feb. 03, 2018 | |
Leases [Abstract] | ||
Fixed minimum, store rent | $ 663 | $ 642 |
Contingent, store rent | 72 | 67 |
Total Store Rent | 735 | 709 |
Office, equipment and other | 98 | 94 |
Gross rent expense | 833 | 803 |
Sublease rental income | (2) | (2) |
Total rent expense | $ 831 | $ 801 |
Goodwill and Trade Names (Sched
Goodwill and Trade Names (Schedule of Goodwill) (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Goodwill | $ 628 | $ 1,348 |
Bath & Body Works Segment [Member] | ||
Goodwill | 628 | 628 |
Victoria's Secret Segment [Member] | ||
Goodwill | 0 | 690 |
Victoria's Secret and Bath & Body Works International [Member] | ||
Goodwill | $ 0 | $ 30 |
Goodwill and Trade Names (Narra
Goodwill and Trade Names (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Feb. 01, 2020 | Nov. 02, 2019 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Goodwill, Impairment Loss | $ 720 | $ 0 | $ 0 | ||
Victoria's Secret and Bath & Body Works International [Member] | |||||
Goodwill, Impairment Loss | $ 30 | ||||
Victoria's Secret Segment [Member] | |||||
Goodwill, Impairment Loss | $ 690 |
Goodwill and Trade Names Goodwi
Goodwill and Trade Names Goodwill and Trade Names (Intangible Assets - Indefinite Lives) (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Indefinite-lived Intangible Assets [Line Items] | ||
Trade Names | $ 411 | $ 411 |
Bath & Body Works Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trade Names | 246 | 246 |
Victoria's Secret Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trade Names | $ 165 | $ 165 |
Equity Investments and Other (D
Equity Investments and Other (Details) - Easton Investment [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Return of Capital | $ 7 | $ 16 | $ 29 |
Equity method investment carrying value | 118 | 89 | |
Gain (Loss) on Equity Method Investment Dividends Or Distributions | $ 5 | $ 8 | $ 20 |
Accrued Expenses and Other (Det
Accrued Expenses and Other (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Contract with Customer, Liability | $ 342 | $ 331 |
Compensation, Payroll Taxes and Benefits | 216 | 215 |
Interest | 94 | 92 |
Taxes, Other than Income | 74 | 78 |
Accrued Rent, Current | 35 | 39 |
Accrued Claims on Self-insured Activities | 40 | 45 |
Returns Reserve | 23 | 27 |
Other | 240 | 270 |
Total Accrued Expenses and Other | 1,052 | 1,082 |
Accrued Liabilities [Member] | ||
Contract with Customer, Liability | $ 330 | $ 316 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory tax rate | 35.00% | ||
U.S. Federal Statutory Tax Rate after Tax Cuts and Jobs Act | 21.00% | ||
Pre-tax income (loss),Non-US, arising principally from overseas operations | $ (226) | $ (14) | $ 99 |
Income tax payments | 228 | 324 | 494 |
Unrecognized tax benefits resulting in reduction of effective income tax rate | 81 | 104 | 46 |
Unrecognized tax benefits reasonably possible change in the next twelve months | 66 | ||
Interest and penalties related to unrecognized tax benefits of income tax expense | 1 | 5 | $ 2 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 12 | $ 12 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Current | |||
U.S. Federal | $ 156 | $ 212 | $ 366 |
U.S. State | 35 | 37 | 49 |
Non-U.S. | 23 | 16 | 22 |
Total | 214 | 265 | 437 |
Deferred | |||
U.S. Federal | (7) | (4) | (114) |
U.S. State | 1 | 2 | 6 |
Non-U.S. | (23) | (50) | 0 |
Total | (29) | (52) | (108) |
Provision for Income Taxes | $ 185 | $ 213 | $ 329 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the Statutory Federal Income Tax Rate and the Effective Tax Rate) (Details) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Federal Income Tax Rate | 21.00% | 21.00% | 33.70% |
State Income Taxes, Net of Federal Income Tax Effect | (23.00%) | 6.00% | 3.60% |
Impact of Non-U.S. Operations | (5.70%) | 2.30% | (1.40%) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Percent | (80.80%) | 0.00% | 0.00% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | (18.50%) | (1.10%) | (0.10%) |
Effective Income Tax Rate Reconciliation, TCJA Deferred Liability Remeasurement, Percent | 0.00% | 0.00% | (12.10%) |
Effective Income Tax Rate Reconciliation, TCJA Deemed Mandatory Repatriation, Percent | 0.00% | 0.00% | 5.10% |
Effective Income Tax Rate Reconciliation, Excess Tax benefit Due to Share-based Compensation Cost, Percent | (7.70%) | 1.00% | (1.00%) |
Effective Income Tax Rate Reconciliation, Tax Settlement, Percent | 12.30% | (0.50%) | (1.20%) |
Other Items, Net | 0.50% | (1.10%) | (1.50%) |
Effective Tax Rate | (101.90%) | 24.90% | 25.10% |
LaSenza [Member] | |||
Effective Income Tax Rate Reconciliation, Deduction, Percent | 0.00% | (2.70%) | 0.00% |
Income Taxes (Effect of Tempora
Income Taxes (Effect of Temporary Differences that Cause Deferred Income Taxes) (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Deferred Tax Liabilities, Gross, Noncurrent | $ (1,116) | $ (458) |
Liabilities | (135) | (164) |
Deferred Tax Assets, Net of Valuation Allowance | 981 | 294 |
Operating Loss Carryforward [Member] | ||
Assets | 247 | 217 |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Deferred Tax Assets, Net | 247 | 217 |
Other Postretirement Benefits Plan [Member] | ||
Assets | 62 | 64 |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Deferred Tax Assets, Net | 62 | 64 |
Leases [Member] | ||
Assets | 746 | 50 |
Deferred Tax Liabilities, Gross, Noncurrent | (712) | 0 |
Deferred Tax Assets, Net | 34 | 50 |
Share-based Compensation [Member] | ||
Assets | 40 | 47 |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Deferred Tax Assets, Net | 40 | 47 |
Deferred Revenue [Domain] | ||
Assets | 20 | 28 |
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Deferred Tax Assets, Net | 20 | 28 |
Property and Equipment [Member] | ||
Assets | 0 | 0 |
Deferred Tax Liabilities, Gross, Noncurrent | (230) | (278) |
Liabilities | (230) | (278) |
Trade Names [Member] | ||
Assets | 0 | 0 |
Deferred Tax Liabilities, Gross, Noncurrent | (94) | (93) |
Liabilities | (94) | (93) |
Other Assets [Member] | ||
Assets | 0 | 0 |
Deferred Tax Liabilities, Gross, Noncurrent | (60) | (60) |
Liabilities | (60) | (60) |
Other, Net [Member] | ||
Assets | 70 | 60 |
Deferred Tax Liabilities, Gross, Noncurrent | (20) | (27) |
Deferred Tax Assets, Net | 50 | 33 |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | ||
Deferred Tax Liabilities, Gross, Noncurrent | 0 | 0 |
Deferred Tax Assets, Valuation Allowance | $ (204) | $ (172) |
Income Taxes (Activity Related
Income Taxes (Activity Related to its Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year | $ 114 | $ 67 | $ 90 |
Increases in Tax Benefits for Prior Years | 15 | 35 | 3 |
Decreases in Tax Benefits for Prior Years | (22) | (25) | (22) |
Increases in Unrecognized Tax Benefits as a Result of Current Year Activity | 3 | 44 | 7 |
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities | (16) | 0 | (2) |
Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations | (6) | (7) | (9) |
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year | $ 88 | $ 114 | $ 67 |
Long-term Debt and Borrowing _3
Long-term Debt and Borrowing Facilities (Schedule of Long-term Debt Instruments) (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Debt, Long-term and Short-term, Combined Amount | $ 5,548 | $ 5,811 |
Debt, Current | 61 | 72 |
Total long-term debt, net of current portion | 5,487 | 5,739 |
With Subsidiary Guarantee [Member] | ||
Debt, Long-term and Short-term, Combined Amount | 4,852 | 5,106 |
With Subsidiary Guarantee [Member] | Fixed Rate 6.875% Notes Due November 2035 [Member] | ||
Notes Payable, Noncurrent | 991 | 990 |
With Subsidiary Guarantee [Member] | Fixed Rate 5.625% Notes Due February 2022 [Member] | ||
Notes Payable, Noncurrent | 858 | 952 |
With Subsidiary Guarantee [Member] | Fixed Rate 6.75% Notes Due July 2036 [Member] | ||
Notes Payable, Noncurrent | 693 | 693 |
With Subsidiary Guarantee [Member] | Fixed Rate 5.625% Notes Due October 2023 [Member] | ||
Notes Payable, Noncurrent | 498 | 498 |
With Subsidiary Guarantee [Member] | Fixed Rate 5.25% Notes Due February 2028 [Member] | ||
Notes Payable, Noncurrent | 496 | 496 |
With Subsidiary Guarantee [Member] | Fixed Rate 7.5% Notes Due June 2029 [Member] | ||
Notes Payable, Noncurrent | 487 | 0 |
With Subsidiary Guarantee [Member] | Fixed Rate 6.625% Notes Due April 2021 [Member] | ||
Notes Payable, Noncurrent | 450 | 776 |
With Subsidiary Guarantee [Member] | Fixed Rate 6.694% Notes Due January 2027 [Member] | ||
Notes Payable, Noncurrent | 276 | 273 |
With Subsidiary Guarantee [Member] | Fixed Rate 7.00% Notes Due May 2020 [Member] | ||
Notes Payable, Noncurrent | 0 | 337 |
With Subsidiary Guarantee [Member] | Foreign Facilities with Parent Guarantee [Member] | ||
Long-term Line of Credit | 103 | 91 |
Without Subsidiary Guarantee [Member] | ||
Debt, Long-term and Short-term, Combined Amount | 696 | 705 |
Without Subsidiary Guarantee [Member] | Foreign Facilities with Parent Guarantee [Member] | ||
Long-term Line of Credit | 50 | 60 |
Without Subsidiary Guarantee [Member] | Fixed Rate 6.95% Debentures Due March 2033 [Member] | ||
Notes Payable, Noncurrent | 348 | 348 |
Without Subsidiary Guarantee [Member] | Fixed Rate 7.60% Notes Due July 2037 [Member] | ||
Notes Payable, Noncurrent | $ 298 | $ 297 |
Long-term Debt and Borrowing _4
Long-term Debt and Borrowing Facilities (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jul. 31, 2019 | Jun. 30, 2019 | Aug. 03, 2019 | Aug. 04, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 363 | $ 380 | $ 391 | ||||
Repayments of Long-term Debt | $ 130 | $ 669 | 799 | 52 | 540 | ||
Gain (Loss) on Extinguishment of Debt | $ 40 | (40) | $ 0 | $ (45) | |||
Extinguishment of Debt, Gain (Loss), Net of Tax | $ 30 | ||||||
Debt Exchange, Cash Consideration Paid | $ 52 | ||||||
Debt Exchange, Exchange Premium | 24 | ||||||
With Subsidiary Guarantee [Member] | Fixed Rate 7.5% Notes Due June 2029 [Member] | |||||||
Debt Instrument, Face Amount | $ 500 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | ||||||
Proceeds from Issuance of Debt | 486 | ||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 14 | ||||||
With Subsidiary Guarantee [Member] | Fixed Rate 7.00% Notes Due May 2020 [Member] | |||||||
Extinguishment of Debt, Amount | $ 126 | $ 212 | |||||
Debt Conversion, Original Debt, Amount | 62 | ||||||
With Subsidiary Guarantee [Member] | Fixed Rate 6.625% Notes Due April 2021 [Member] | |||||||
Extinguishment of Debt, Amount | 330 | ||||||
Debt Conversion, Original Debt, Amount | 220 | ||||||
With Subsidiary Guarantee [Member] | Fixed Rate 5.625% Notes Due February 2022 [Member] | |||||||
Extinguishment of Debt, Amount | $ 96 | ||||||
Debt Conversion, Original Debt, Amount | 44 | ||||||
With Subsidiary Guarantee [Member] | Fixed Rate 6.694% Notes Due January 2027 [Member] | |||||||
Debt Conversion, Converted Instrument, Amount | $ 297 | ||||||
Debt Conversion, Converted Instrument, Rate | 6.694% |
Long-term Debt and Borrowing _5
Long-term Debt and Borrowing Facilities (Schedule of Principal Payments on Long-term Debt) (Details) $ in Millions | Feb. 01, 2020USD ($) |
Long-term Debt, by Current and Noncurrent [Abstract] | |
2020 | $ 61 |
2021 | 459 |
2022 | 869 |
2023 | 569 |
2024 | 5 |
Thereafter | $ 3,648 |
Long-term Debt and Borrowing _6
Long-term Debt and Borrowing Facilities Long-term debt (Revolving Facility and Letters of Credit (Narrative) (Details) $ in Millions | Mar. 16, 2020USD ($) | Feb. 01, 2020USD ($) | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) |
Line of Credit Facility [Line Items] | |||||
Repayments of Lines of Credit | $ 12 | $ 92 | $ 0 | ||
Borrowings from Revolving Facilities | 12 | 92 | $ 0 | ||
Revolving Credit Facility [Member] | Revolving Credit Expiring August 2024 [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Repayments of Lines of Credit | 12 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000 | 1,000 | |||
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 5 | $ 5 | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | ||||
Line of Credit Facility, Commitment Fee Percentage | 1.75% | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||
Line of Credit Financial Covenant, Fixed Charge Coverage Ratio | 1.75 | ||||
Line of Credit Financial Covenant, Ratio of Consolidated Debt to Consolidated EBITDA | 4 | ||||
Debt to EBITDA ratio required for unlimited investments and restricted payments | 3.50 | 3.50 | |||
Line of Credit Financial Covenant Ratio of Consolidated Debt to Consolidated EBITDA Maximum Current Rate | 3.50 | 3.50 | |||
Borrowings from Revolving Facilities | $ 12 | ||||
Letter of Credit [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Letters of Credit Outstanding, Amount | $ 19 | 19 | |||
With Subsidiary Guarantee [Member] | Foreign Facilities with Parent Guarantee [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Repayments of Lines of Credit | 103 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 150 | 150 | |||
Borrowings from Revolving Facilities | 117 | ||||
Line of Credit Facility, Maximum Amount Outstanding During Period | 103 | ||||
Line of Credit, Current | 11 | 11 | |||
Long-term Line of Credit | 103 | 103 | 91 | ||
Without Subsidiary Guarantee [Member] | Foreign Facilities with Parent Guarantee [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Repayments of Lines of Credit | 59 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 75 | 75 | |||
Borrowings from Revolving Facilities | 50 | ||||
Line of Credit Facility, Maximum Amount Outstanding During Period | 74 | ||||
Long-term Line of Credit | $ 50 | $ 50 | $ 60 | ||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Revolving Credit Expiring August 2024 [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Borrowings from Revolving Facilities | $ 950 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 22 |
Derivative Financial Instrument
Derivative Financial Instruments Derivative Instruments (Foreign Exchange Contracts - Cash Flow Hedging Disclosure) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | $ 2 | $ 11 |
Cost of Goods Sold, Buying and Occupancy [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ (5) | $ 2 |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Maximum Remaining Maturity of Foreign Currency Derivatives | 18 months | |
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $ 1 |
Derivative Financial Instrume_2
Derivative Financial Instruments Fair Value Derivatives, Balance Sheet Location, by Derivative Contract Type (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ 1 | |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 1 | $ 2 |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 1 | 2 |
Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ 1 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments Derivative Instruments (Interest Rate Contracts - Fair Value Hedging Disclosure) (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 139 | $ 147 |
Derivative Financial Instrume_4
Derivative Financial Instruments Foreign Currency Derivatives Notional Amount Outstanding (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 139 | $ 147 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Value and Fair Value of Long Term Debt) (Detail) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Fair Value Measurements [Abstract] | ||
Long-term Debt Principal Value | $ 5,458 | $ 5,722 |
Fair Value | $ 5,555 | $ 5,340 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Assets: | ||
Cash and Cash Equivalents | $ 1,499 | $ 1,413 |
Investments, Fair Value Disclosure | 11 | |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 1 | 2 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 1 | |
Fair Value, Inputs, Level 1 | ||
Assets: | ||
Cash and Cash Equivalents | 1,499 | 1,413 |
Investments, Fair Value Disclosure | 11 | |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0 | 0 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 0 | |
Fair Value, Inputs, Level 2 | ||
Assets: | ||
Cash and Cash Equivalents | 0 | 0 |
Investments, Fair Value Disclosure | 0 | |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 1 | 2 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 1 | |
Fair Value, Inputs, Level 3 | ||
Assets: | ||
Cash and Cash Equivalents | 0 | 0 |
Investments, Fair Value Disclosure | 0 | |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0 | $ 0 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ 0 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Securities Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Proceeds from Sale and Maturity of Marketable Securities | $ 10 | ||
Unrealized Gain (Loss) on Securities | $ 0 | $ 6 | $ 0 |
Comprehensive Income (Loss) (De
Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | $ (3) | $ (9) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (5) | 47 | |
Other Comprehensive Income (Loss), Tax | 1 | (1) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Accumulated Other Comprehensive Income Beginning Balance | 59 | 24 | |
Total Other Comprehensive Income (Loss), Net of Tax | (7) | 37 | $ 12 |
Accumulated Other Comprehensive Income Ending Balance | 52 | 59 | 24 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | (45) | 0 |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (5) | (20) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 45 | |
Other Comprehensive Income (Loss), Tax | 0 | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Accumulated Other Comprehensive Income Beginning Balance | 57 | 32 | |
Total Other Comprehensive Income (Loss), Net of Tax | (5) | 25 | |
Accumulated Other Comprehensive Income Ending Balance | 52 | 57 | 32 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 2 | 11 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (5) | 2 | |
Other Comprehensive Income (Loss), Tax | 1 | (1) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Accumulated Other Comprehensive Income Beginning Balance | 2 | (10) | |
Total Other Comprehensive Income (Loss), Net of Tax | (2) | 12 | |
Accumulated Other Comprehensive Income Ending Balance | 0 | 2 | (10) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | ||
Other Comprehensive Income (Loss), Tax | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Accumulated Other Comprehensive Income Beginning Balance | $ 0 | 2 | |
Total Other Comprehensive Income (Loss), Net of Tax | 0 | ||
Accumulated Other Comprehensive Income Ending Balance | 0 | 2 | |
Accounting Standards Update 2016-01 [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | (2) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Accumulated Other Comprehensive Income Beginning Balance | 22 | ||
Accumulated Other Comprehensive Income Ending Balance | 22 | ||
Accounting Standards Update 2016-01 [Member] | Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
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] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | ||
Accounting Standards Update 2016-01 [Member] | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | (2) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Accumulated Other Comprehensive Income Beginning Balance | $ 0 | ||
Accumulated Other Comprehensive Income Ending Balance | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Nov. 02, 2019 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
La Senza Charges | $ 37 | $ 37 | $ 0 | $ 0 |
Residual Value Guarantee of Leased Assets | 94 | |||
Lease guarantees, estimated fair value | 17 | 11 | ||
LaSenza [Member] | ||||
Loss Contingency, Maximum Exposure, Undiscounted | 40 | |||
Loss Contingency Accrual | $ 5 | |||
LaSenza [Member] | Leasing Arrangement [Member] | ||||
La Senza Charges | 35 | |||
Accrued Liabilities [Member] | LaSenza [Member] | ||||
Loss Contingency Accrual | $ 8 |
Retirement Benefits (Details)
Retirement Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Feb. 20, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Cost | $ 79 | $ 76 | $ 68 | |
Nonqualified Retirement Plan Benefit Obligation, Balance Beginning of Year | 278 | 269 | ||
Non-Qualified Plan, Contributions by Plan Participants | 8 | 10 | ||
Non-Qualified Plan, Contributions by Employer | 12 | 11 | ||
Non-Qualified Plan, Interest Cost | 14 | 13 | ||
Non-Qualified Plan, Benefits Paid | (32) | (25) | ||
Nonqualified Retirement Plan Benefit Obligation, Balance End of Year | 280 | 278 | 269 | |
Non-Qualified Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Expense related to the Non-Qualified Plan | $ 26 | $ 24 | $ 20 | |
Subsequent Event [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Ownership Percentage Sold | 55.00% |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Feb. 03, 2018 | Oct. 28, 2017 | Apr. 30, 2016 | |
Treasury Stock, Shares, Retired | 36 | ||
September 2017 Repurchase Program [Member] | |||
Stock Repurchase Program, Authorized Amount | $ 250 | ||
February 2016 Repurchase Program [Member] | |||
Stock Repurchase Program, Authorized Amount | $ 500 | ||
Retained Earnings (Accumulated Deficit) [Member] | |||
Treasury Stock, Retired, Cost Method, Amount | $ 1,936 | ||
Paid-in Capital [Member] | |||
Treasury Stock, Retired, Cost Method, Amount | 82 | ||
Common Stock [Member] | |||
Treasury Stock, Retired, Cost Method, Amount | 18 | ||
Treasury Stock, at Average Cost [Member] | |||
Treasury Stock, Retired, Cost Method, Amount | $ (2,036) |
Shareholders' Equity (Deficit_2
Shareholders' Equity (Deficit) (Schedule of Company's repurchase program) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||||||
Feb. 02, 2019 | Feb. 03, 2018 | Feb. 01, 2020 | May 05, 2018 | Oct. 28, 2017 | Apr. 29, 2017 | Apr. 30, 2016 | |
Treasury Stock, Shares, Acquired | 5,379 | 9,409 | |||||
Repurchase of Common Stock | $ 196 | $ 445 | |||||
September 2017 Repurchase Program [Member] | |||||||
Stock Repurchase Program, Authorized Amount | $ 250 | ||||||
Treasury Stock, Shares, Acquired | 527 | 3,858 | |||||
Repurchase of Common Stock | $ 25 | $ 202 | |||||
Average Stock Price of Shares Repurchased within Program | $ 51.72 | ||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 23 | ||||||
February 2017 Repurchase Program [Member] [Member] | |||||||
Stock Repurchase Program, Authorized Amount | $ 250 | ||||||
Treasury Stock, Shares, Acquired | 5,500 | ||||||
Repurchase of Common Stock | $ 240 | ||||||
Average Stock Price of Shares Repurchased within Program | $ 43.57 | ||||||
February 2016 Repurchase Program [Member] | |||||||
Stock Repurchase Program, Authorized Amount | $ 500 | ||||||
Treasury Stock, Shares, Acquired | 51 | ||||||
Repurchase of Common Stock | $ 3 | ||||||
Average Stock Price of Shares Repurchased within Program | $ 76.47 | ||||||
March 2018 Repurchase Program [Member] | |||||||
Stock Repurchase Program, Authorized Amount | $ 250 | ||||||
Treasury Stock, Shares, Acquired | 4,852 | ||||||
Repurchase of Common Stock | $ 171 | ||||||
Average Stock Price of Shares Repurchased within Program | $ 35.29 | ||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 79 |
Shareholders' Equity (Deficit_3
Shareholders' Equity (Deficit) (Dividends Paid) (Details) - USD ($) $ / shares in Units, $ in Millions | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Mar. 20, 2020 | Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 1.20 | $ 2.40 | $ 2.40 | |
Payments of Dividends | $ 83 | $ 83 | $ 83 | $ 83 | $ 166 | $ 165 | $ 167 | $ 168 | $ 170 | $ 172 | $ 172 | $ 172 | $ 332 | $ 666 | $ 686 | |
Common Stock, Dividends, Per Share, Declared | $ 1.20 | $ 2.40 | $ 2.40 | |||||||||||||
Subsequent Event [Member] | ||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.30 |
Share-based Compensation (Narra
Share-based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Options, restricted and unrestricted shares authorized | 160 | ||
Options and shares available for grant | 5 | ||
Cash received from stock options exercised | $ 1 | $ 1 | $ 38 |
Tax Benefit associated with share based compensation | $ 18 | 20 | 23 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Total intrinsic value of options exercised | $ 3 | 2 | 44 |
Total fair value at grant date of option awards vested | 9 | $ 9 | $ 10 |
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 8 | ||
Weighted average fair value of stock options granted | $ 6.05 | $ 6.76 | $ 5.96 |
Cash received from stock options exercised | $ 1 | $ 38 | |
Total unrecognized compensation cost, weighted-average period of recognition, years | 1 year 9 months 18 days | ||
Tax benefits realized from tax deductions | $ 1 | $ 1 | 16 |
Restricted Stock [Member] | |||
Total intrinsic value of restricted stock vested | 39 | 44 | 86 |
Total fair value at grant date of awards vested | 104 | 86 | 87 |
Total unrecognized compensation cost, net of estimated forfeitures | $ 103 | ||
Total unrecognized compensation cost, weighted-average period of recognition, years | 1 year 10 months 24 days | ||
Tax benefits realized from tax deductions | $ 10 | $ 10 | $ 32 |
Minimum [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Minimum [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Maximum [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Maximum [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years |
Share-based Compensation (Stock
Share-based Compensation (Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding as of Beginning of Period, Number of Shares | 5,292 | |||
Granted, Number of Shares | 519 | |||
Exercised, Number of Shares | (136) | |||
Cancelled, Number of Shares | (395) | |||
Outstanding as of End of Period, Number of Shares | 5,280 | 5,292 | ||
Vested and Expected to Vest as of End of Period, Number of Shares | [1] | 5,190 | ||
Options Exercisable as of End of Period, Number of Shares | 3,372 | |||
Outstanding as of Beginning of Period, Weighted Average Option Price Per Share | $ 53.14 | |||
Granted, Weighted Average Option Price Per Share | 27.67 | |||
Exercised, Weighted Average Option Price Per Share | 7.44 | |||
Cancelled, Weighted Average Option Price Per Share | 52.22 | |||
Outstanding as of End of Period, Weighted Average Option Price Per Share | 51.87 | $ 53.14 | ||
Vested and Expected to Vest as of End of Period, Weighted Average Option Price Per Share | [1] | 52.29 | ||
Options Exercisable as of End of Period, Weighted Average Options Price Per Share | $ 57.07 | |||
Outstanding as of End of Period, Weighted Average Remaining Contractual Life | 6 years 10 days | |||
Vested and Expected to Vest as of End of Period, Weighted Average Remaining Contractual Life | [1] | 5 years 11 months 26 days | ||
Options Exercisable as of End of Period, Weighted Average Remaining Contractual Life | 4 years 11 months 4 days | |||
Outstanding as of End of Support, Aggregate Intrinsic Value | $ 318 | |||
Vested and Expected to Vest as of End of Period, Aggregate Intrinsic Value | [1] | 318 | ||
Options Exercisable as of End of Period, Aggregate Intrinsic Value | 318 | |||
Share-based Payment Arrangement, Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Deferred Tax Expense from Stock Options Exercised | $ 1,000 | $ 1,000 | $ 16,000 | |
[1] | The number of options expected to vest includes an estimate of expected forfeitures. |
Share-based Compensation (Weigh
Share-based Compensation (Weighted-Average Assumptions) (Details) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||
Expected Volatility | 40.00% | 36.00% | 28.00% |
Risk-free Interest Rate | 2.20% | 2.50% | 1.50% |
Dividend Yield | 4.40% | 5.80% | 5.10% |
Expected Life (in years) | 3 years 2 months 12 days | 2 years 10 months 24 days | 3 years |
Share-based Compensation (Restr
Share-based Compensation (Restricted Stock Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Unvested as of Beginning of Period, Number of Shares | 6,689 | ||
Granted, Number of Shares | 4,161 | ||
Vested, Number of Shares | (1,570) | ||
Cancelled, Number of Shares | (618) | ||
Unvested as of End of Period, Number of Shares | 8,662 | 6,689 | |
Unvested as of Beginning of Period, Weighted Average Grant Date Fair Value | $ 45.29 | ||
Vested, Weighted Average Grant Date Fair Value | 66.44 | ||
Cancelled, Weighted Average Grant Date Fair Value | 30.75 | ||
Unvested as of End of Period, Weighted Average Grant Date Fair Value | 32 | $ 45.29 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Granted, Weighted Average Grant Date Fair Value | $ 23.34 | $ 30.43 | $ 39.21 |
Share-based Compensation (Share
Share-based Compensation (Share-Based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Share-based Compensation Expense | $ 87 | $ 97 | $ 102 |
Costs of Goods Sold, Buying and Occupancy [Member] | |||
Share-based Compensation Expense | 29 | 29 | 32 |
General, Administrative and Store Operating Expenses [Member] | |||
Share-based Compensation Expense | $ 58 | $ 68 | $ 70 |
Segment Information (Details)
Segment Information (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||
Feb. 01, 2020USD ($)$ / shares | Nov. 02, 2019USD ($)$ / shares | Aug. 03, 2019USD ($)$ / shares | May 04, 2019USD ($)$ / shares | Feb. 02, 2019USD ($)$ / shares | Nov. 03, 2018USD ($)$ / shares | Aug. 04, 2018USD ($)$ / shares | May 05, 2018USD ($)$ / shares | Feb. 03, 2018USD ($)$ / shares | Oct. 28, 2017$ / shares | Jul. 29, 2017$ / shares | Apr. 29, 2017$ / shares | Feb. 01, 2020USD ($)Reportable_Segments$ / shares | Feb. 02, 2019USD ($)$ / shares | Feb. 03, 2018USD ($)$ / shares | |||
Common Stock, Dividends, Per Share, Cash Paid | $ / shares | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 1.20 | $ 2.40 | $ 2.40 | ||
Number Of Reportable Segments (in reportable segments) | Reportable_Segments | 3 | ||||||||||||||||
Net Sales | $ 4,707 | $ 2,677 | $ 2,902 | $ 2,629 | $ 4,852 | $ 2,775 | $ 2,984 | $ 2,626 | $ 12,914 | $ 13,237 | $ 12,632 | ||||||
Depreciation and Amortization | 588 | 547 | 524 | ||||||||||||||
Operating Income (Loss) | 82 | $ (151) | $ 175 | $ 153 | 800 | $ 54 | $ 228 | $ 155 | 258 | 1,237 | [1] | 1,728 | [1] | ||||
Total Assets | 10,125 | 8,090 | $ 8,149 | 10,125 | 8,090 | 8,149 | |||||||||||
Capital Expenditures | 458 | 629 | 707 | ||||||||||||||
Victoria's Secret Segment [Member] | |||||||||||||||||
Net Sales | 6,805 | 7,375 | 7,387 | ||||||||||||||
Depreciation and Amortization | 284 | 280 | 279 | ||||||||||||||
Operating Income (Loss) | (616) | 462 | 932 | ||||||||||||||
Total Assets | 3,883 | 3,129 | 3,369 | 3,883 | 3,129 | 3,369 | |||||||||||
Capital Expenditures | 76 | 150 | 270 | ||||||||||||||
Bath & Body Works Segment [Member] | |||||||||||||||||
Net Sales | 5,170 | 4,631 | 4,148 | ||||||||||||||
Depreciation and Amortization | 155 | 121 | 101 | ||||||||||||||
Operating Income (Loss) | 1,191 | 1,077 | 953 | ||||||||||||||
Total Assets | 2,837 | 1,898 | 1,753 | 2,837 | 1,898 | 1,753 | |||||||||||
Capital Expenditures | 206 | 242 | 232 | ||||||||||||||
Victoria's Secret and Bath & Body Works International [Member] | |||||||||||||||||
Net Sales | 600 | 605 | 502 | ||||||||||||||
Depreciation and Amortization | 40 | 43 | 30 | ||||||||||||||
Operating Income (Loss) | (236) | (37) | 5 | ||||||||||||||
Total Assets | 939 | 842 | 800 | 939 | 842 | 800 | |||||||||||
Capital Expenditures | 24 | 97 | 111 | ||||||||||||||
Other Operating Segment | |||||||||||||||||
Net Sales | 339 | 626 | 595 | ||||||||||||||
Depreciation and Amortization | 109 | 103 | 114 | ||||||||||||||
Operating Income (Loss) | (81) | (265) | [1] | (162) | [1] | ||||||||||||
Total Assets | $ 2,466 | $ 2,221 | $ 2,227 | 2,466 | 2,221 | 2,227 | |||||||||||
Capital Expenditures | $ 152 | $ 140 | $ 94 | ||||||||||||||
[1] | (a) Victoria's Secret includes goodwill and long-lived store asset impairment charges of $690 million and $51 million , respectively. Victoria's Secret and Bath & Body Works International includes long-lived store asset and goodwill impairment charges of $212 million and $30 million , respectively. For additional information see Note 7 , “Property and Equipment, Net" and Note 9 , "Goodwill and Trade Names." (b) Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. (c) The 2019 amounts reflect the Company's adoption of ASC 842, Leases , in the first quarter of 2019. (d) Victoria's Secret and Victoria's Secret and Bath & Body Works International includes long-lived store asset impairment charges of $70 million and $31 million , respectively, and Other includes a loss on the sale of La Senza of $99 million and Henri Bendel closures costs of $23 million . For additional information see Note 5 , “Restructuring Activities" and Note 7 , “Property and Equipment, Net." |
Segment Information (Additional
Segment Information (Additional Information) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020USD ($) | Nov. 02, 2019USD ($) | Aug. 03, 2019USD ($) | May 04, 2019USD ($) | Feb. 02, 2019USD ($) | Nov. 03, 2018USD ($) | Aug. 04, 2018USD ($) | May 05, 2018USD ($) | Feb. 01, 2020USD ($)Reportable_Segments | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | |
Number Of Reportable Segments (in reportable segments) | Reportable_Segments | 3 | ||||||||||
Goodwill, Impairment Loss | $ 720 | $ 0 | $ 0 | ||||||||
Impairment of Long-Lived Assets Held-for-use | $ 218 | $ 81 | 263 | 101 | 0 | ||||||
Loss on Divestiture of La Senza | 0 | (99) | 0 | ||||||||
Restructuring Charges | $ 3 | 20 | |||||||||
Net Sales | $ 4,707 | 2,677 | $ 2,902 | $ 2,629 | 4,852 | $ 2,775 | $ 2,984 | $ 2,626 | 12,914 | 13,237 | 12,632 |
Victoria's Secret Segment [Member] | |||||||||||
Goodwill, Impairment Loss | 690 | ||||||||||
Impairment of Long-Lived Assets Held-for-use | 51 | 70 | |||||||||
Net Sales | 6,805 | 7,375 | 7,387 | ||||||||
Victoria's Secret and Bath & Body Works International [Member] | |||||||||||
Goodwill, Impairment Loss | $ 30 | ||||||||||
Impairment of Long-Lived Assets Held-for-use | 35 | 212 | 31 | ||||||||
Net Sales | 600 | 605 | 502 | ||||||||
Other Segments [Member] | |||||||||||
Loss on Divestiture of La Senza | (99) | ||||||||||
Restructuring Charges | 23 | ||||||||||
Net Sales | 339 | 626 | 595 | ||||||||
International [Member] | |||||||||||
Net Sales | 1,496 | 1,683 | $ 1,553 | ||||||||
Internationally based Long-lived Assets | $ 713 | $ 454 | $ 713 | $ 454 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |||
Quarterly Financial Data [Abstract] | |||||||||||||
Net Sales | $ 4,707 | $ 2,677 | $ 2,902 | $ 2,629 | $ 4,852 | $ 2,775 | $ 2,984 | $ 2,626 | $ 12,914 | $ 13,237 | $ 12,632 | ||
Gross Profit | 1,794 | 741 | 983 | 934 | 1,968 | 928 | 1,059 | 944 | 4,450 | 4,899 | 4,959 | ||
Operating Income | 82 | (151) | 175 | 153 | 800 | 54 | 228 | 155 | 258 | 1,237 | [1] | 1,728 | [1] |
Income (Loss) Before Income Taxes | (7) | (277) | 42 | 60 | 710 | (41) | 129 | 59 | (181) | 857 | 1,312 | ||
Net Income (Loss) Attributable to Parent | $ (192) | $ (252) | $ 38 | $ 40 | $ 540 | $ (43) | $ 99 | $ 48 | $ (366) | $ 644 | $ 983 | ||
Net Income (Loss) Per Basic Share | $ (0.70) | $ (0.91) | $ 0.14 | $ 0.15 | $ 1.96 | $ (0.16) | $ 0.36 | $ 0.17 | $ (1.33) | $ 2.33 | $ 3.46 | ||
Net Income (Loss) Per Diluted Share | $ (0.70) | $ (0.91) | $ 0.14 | $ 0.14 | $ 1.94 | $ (0.16) | $ 0.36 | $ 0.17 | $ (1.33) | $ 2.31 | $ 3.42 | ||
[1] | (a) Victoria's Secret includes goodwill and long-lived store asset impairment charges of $690 million and $51 million , respectively. Victoria's Secret and Bath & Body Works International includes long-lived store asset and goodwill impairment charges of $212 million and $30 million , respectively. For additional information see Note 7 , “Property and Equipment, Net" and Note 9 , "Goodwill and Trade Names." (b) Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. (c) The 2019 amounts reflect the Company's adoption of ASC 842, Leases , in the first quarter of 2019. (d) Victoria's Secret and Victoria's Secret and Bath & Body Works International includes long-lived store asset impairment charges of $70 million and $31 million , respectively, and Other includes a loss on the sale of La Senza of $99 million and Henri Bendel closures costs of $23 million . For additional information see Note 5 , “Restructuring Activities" and Note 7 , “Property and Equipment, Net." |
Quarterly Financial Data (Una_4
Quarterly Financial Data (Unaudited) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Gain (Loss) on Extinguishment of Debt | $ 40 | $ (40) | $ 0 | $ (45) | ||||
Extinguishment of Debt, Gain (Loss), Net of Tax | 30 | |||||||
Debt Instrument, Early Redemption | $ 764 | |||||||
Impairment of Long-Lived Assets Held-for-use | $ 218 | $ 81 | 263 | 101 | 0 | |||
Impairment of Long-Lived Assets Held-for-use, Net of Tax | 200 | 73 | ||||||
Goodwill, Impairment Loss | 720 | 0 | 0 | |||||
La Senza Charges | 37 | 37 | 0 | $ 0 | ||||
Loss Contingency, Loss in Period, Net Of Tax | 28 | |||||||
Restructuring Charges | $ 3 | 20 | ||||||
Restructuring Charges, Net of Tax | $ 15 | |||||||
Disposal Group, Not Discontinued Operatin, After-Tax Loss on Disposal | $ 55 | |||||||
Victoria's Secret and Bath & Body Works International [Member] | ||||||||
Impairment of Long-Lived Assets Held-for-use | $ 35 | 212 | 31 | |||||
Impairment of Long-Lived Assets Held-for-use, Net of Tax | 30 | |||||||
Goodwill, Impairment Loss | $ 30 | |||||||
Victoria's Secret Segment [Member] | ||||||||
Impairment of Long-Lived Assets Held-for-use | $ 51 | $ 70 | ||||||
Goodwill, Impairment Loss | 690 | |||||||
Goodwill, Impairment Loss, Net of Tax | $ 687 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Mar. 16, 2020 | Feb. 20, 2020 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Subsequent Event [Line Items] | |||||
Proceeds from Lines of Credit | $ 12 | $ 92 | $ 0 | ||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Ownership Percentage Sold | 55.00% | ||||
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | $ 525 | ||||
Subsequent Event [Member] | Victoria's Secret [Member] | |||||
Subsequent Event [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 45.00% | ||||
Revolving Credit Facility [Member] | Revolving Credit Expiring August 2024 [Member] | |||||
Subsequent Event [Line Items] | |||||
Proceeds from Lines of Credit | $ 12 | ||||
Revolving Credit Facility [Member] | Revolving Credit Expiring August 2024 [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Proceeds from Lines of Credit | $ 950 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 22 |
Supplemental Guarantor Financ_3
Supplemental Guarantor Financial Information (Narrative) (Details) | 12 Months Ended |
Feb. 01, 2020 | |
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 Financ_4
Supplemental Guarantor Financial Information (Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 |
Current Assets: | ||||
Cash and Cash Equivalents | $ 1,499 | $ 1,413 | $ 1,515 | $ 1,934 |
Accounts Receivable, Net | 306 | 367 | ||
Inventories | 1,287 | 1,248 | ||
Other | 153 | 232 | ||
Total Current Assets | 3,245 | 3,260 | ||
Property and Equipment, Net | 2,486 | 2,818 | ||
Operating Lease, Right-of-Use Asset | 3,053 | |||
Goodwill | 628 | 1,348 | ||
Trade Names | 411 | 411 | ||
Net Investments in and Advances to/from Consolidated Affiliates | 0 | 0 | ||
Deferred Tax Assets, Net, Noncurrent | 84 | 62 | ||
Other Assets | 218 | 191 | ||
Total Assets | 10,125 | 8,090 | 8,149 | |
Current Liabilities: | ||||
Accounts Payable | 647 | 711 | ||
Accrued Expenses and Other | 1,052 | 1,082 | ||
Debt, Current | 61 | 72 | ||
Operating Lease, Liability, Current | 478 | |||
Income Taxes | 134 | 121 | ||
Total Current Liabilities | 2,372 | 1,986 | ||
Deferred Income Taxes | 219 | 226 | ||
Long-term Debt | 5,487 | 5,739 | ||
Operating Lease, Liability, Noncurrent | 3,052 | |||
Other Long-term Liabilities | 490 | 1,004 | ||
Total Equity (Deficit) | (1,495) | (865) | (751) | (727) |
Total Liabilities and Equity (Deficit) | 10,125 | 8,090 | ||
Eliminations | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 0 | 0 | 0 | 0 |
Accounts Receivable, Net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other | 0 | 0 | ||
Total Current Assets | 0 | 0 | ||
Property and Equipment, Net | 0 | 0 | ||
Operating Lease, Right-of-Use Asset | 0 | |||
Goodwill | 0 | 0 | ||
Trade Names | 0 | 0 | ||
Net Investments in and Advances to/from Consolidated Affiliates | (27,030) | (26,539) | ||
Deferred Tax Assets, Net, Noncurrent | 0 | 0 | ||
Other Assets | (611) | (621) | ||
Total Assets | (27,641) | (27,160) | ||
Current Liabilities: | ||||
Accounts Payable | 0 | 0 | ||
Accrued Expenses and Other | 0 | 0 | ||
Debt, Current | 0 | 0 | ||
Operating Lease, Liability, Current | 0 | |||
Income Taxes | 0 | 0 | ||
Total Current Liabilities | 0 | 0 | ||
Deferred Income Taxes | 0 | 0 | ||
Long-term Debt | (597) | (607) | ||
Operating Lease, Liability, Noncurrent | 0 | |||
Other Long-term Liabilities | (14) | (14) | ||
Total Equity (Deficit) | (27,030) | (26,539) | ||
Total Liabilities and Equity (Deficit) | (27,641) | (27,160) | ||
L Brands, Inc. [Member] | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 0 | 0 | 0 | 0 |
Accounts Receivable, Net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other | 0 | 0 | ||
Total Current Assets | 0 | 0 | ||
Property and Equipment, Net | 0 | 0 | ||
Operating Lease, Right-of-Use Asset | 0 | |||
Goodwill | 0 | 0 | ||
Trade Names | 0 | 0 | ||
Net Investments in and Advances to/from Consolidated Affiliates | 3,862 | 4,755 | ||
Deferred Tax Assets, Net, Noncurrent | 0 | 0 | ||
Other Assets | 130 | 127 | ||
Total Assets | 3,992 | 4,882 | ||
Current Liabilities: | ||||
Accounts Payable | 0 | 0 | ||
Accrued Expenses and Other | 93 | 92 | ||
Debt, Current | 0 | 0 | ||
Operating Lease, Liability, Current | 0 | |||
Income Taxes | (11) | (7) | ||
Total Current Liabilities | 82 | 85 | ||
Deferred Income Taxes | 0 | 1 | ||
Long-term Debt | 5,395 | 5,661 | ||
Operating Lease, Liability, Noncurrent | 0 | |||
Other Long-term Liabilities | 62 | 59 | ||
Total Equity (Deficit) | (1,547) | (924) | ||
Total Liabilities and Equity (Deficit) | 3,992 | 4,882 | ||
Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 1,231 | 997 | 1,164 | 1,562 |
Accounts Receivable, Net | 183 | 241 | ||
Inventories | 1,138 | 1,093 | ||
Other | 85 | 139 | ||
Total Current Assets | 2,637 | 2,470 | ||
Property and Equipment, Net | 1,747 | 1,922 | ||
Operating Lease, Right-of-Use Asset | 2,545 | |||
Goodwill | 628 | 1,318 | ||
Trade Names | 411 | 411 | ||
Net Investments in and Advances to/from Consolidated Affiliates | 20,231 | 19,737 | ||
Deferred Tax Assets, Net, Noncurrent | 8 | 9 | ||
Other Assets | 9 | 15 | ||
Total Assets | 28,216 | 25,882 | ||
Current Liabilities: | ||||
Accounts Payable | 331 | 363 | ||
Accrued Expenses and Other | 593 | 597 | ||
Debt, Current | 0 | 0 | ||
Operating Lease, Liability, Current | 392 | |||
Income Taxes | 89 | 100 | ||
Total Current Liabilities | 1,405 | 1,060 | ||
Deferred Income Taxes | (37) | (44) | ||
Long-term Debt | 597 | 606 | ||
Operating Lease, Liability, Noncurrent | 2,522 | |||
Other Long-term Liabilities | 383 | 852 | ||
Total Equity (Deficit) | 23,346 | 23,408 | ||
Total Liabilities and Equity (Deficit) | 28,216 | 25,882 | ||
Non-Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 268 | 416 | $ 351 | $ 372 |
Accounts Receivable, Net | 123 | 126 | ||
Inventories | 149 | 155 | ||
Other | 68 | 93 | ||
Total Current Assets | 608 | 790 | ||
Property and Equipment, Net | 739 | 896 | ||
Operating Lease, Right-of-Use Asset | 508 | |||
Goodwill | 0 | 30 | ||
Trade Names | 0 | 0 | ||
Net Investments in and Advances to/from Consolidated Affiliates | 2,937 | 2,047 | ||
Deferred Tax Assets, Net, Noncurrent | 76 | 53 | ||
Other Assets | 690 | 670 | ||
Total Assets | 5,558 | 4,486 | ||
Current Liabilities: | ||||
Accounts Payable | 316 | 348 | ||
Accrued Expenses and Other | 366 | 393 | ||
Debt, Current | 61 | 72 | ||
Operating Lease, Liability, Current | 86 | |||
Income Taxes | 56 | 28 | ||
Total Current Liabilities | 885 | 841 | ||
Deferred Income Taxes | 256 | 269 | ||
Long-term Debt | 92 | 79 | ||
Operating Lease, Liability, Noncurrent | 530 | |||
Other Long-term Liabilities | 59 | 107 | ||
Total Equity (Deficit) | 3,736 | 3,190 | ||
Total Liabilities and Equity (Deficit) | $ 5,558 | $ 4,486 |
Supplemental Guarantor Financ_5
Supplemental Guarantor Financial Information (Condensed Consolidating Statements of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |||
Net Sales | $ 4,707 | $ 2,677 | $ 2,902 | $ 2,629 | $ 4,852 | $ 2,775 | $ 2,984 | $ 2,626 | $ 12,914 | $ 13,237 | $ 12,632 | ||
Costs of Goods Sold, Buying and Occupancy | (8,464) | (8,338) | (7,673) | ||||||||||
Gross Profit | 1,794 | 741 | 983 | 934 | 1,968 | 928 | 1,059 | 944 | 4,450 | 4,899 | 4,959 | ||
General, Administrative and Store Operating Expenses | (3,472) | (3,563) | (3,231) | ||||||||||
Loss on Divestiture of La Senza | 0 | (99) | 0 | ||||||||||
Impairment of Goodwill | (720) | 0 | 0 | ||||||||||
Operating Income (Loss) | 82 | (151) | 175 | 153 | 800 | 54 | 228 | 155 | 258 | 1,237 | [1] | 1,728 | [1] |
Interest Expense | (378) | (385) | (406) | ||||||||||
Other Income (Loss) | (61) | 5 | (10) | ||||||||||
Income (Loss) Before Income Taxes | (7) | (277) | 42 | 60 | 710 | (41) | 129 | 59 | (181) | 857 | 1,312 | ||
Provision (Benefit) for Income Taxes | 185 | 213 | 329 | ||||||||||
Equity In Earnings Of Consolidated Affiliates | 0 | 0 | 0 | ||||||||||
Net Income (Loss) Attributable to Parent | $ (192) | $ (252) | $ 38 | $ 40 | $ 540 | $ (43) | $ 99 | $ 48 | (366) | 644 | 983 | ||
Reclassification of Cash Flow Hedges to Earnings | (4) | 2 | 7 | ||||||||||
Foreign Currency Translation | (5) | (20) | 23 | ||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | 45 | 0 | ||||||||||
Unrealized Gain (Loss) on Cash Flow Hedges | 2 | 10 | (20) | ||||||||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | 0 | 0 | 2 | ||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | (7) | 37 | 12 | ||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (373) | 681 | 995 | ||||||||||
Eliminations | |||||||||||||
Net Sales | (2,785) | (3,010) | (3,027) | ||||||||||
Costs of Goods Sold, Buying and Occupancy | 2,420 | 2,673 | 2,658 | ||||||||||
Gross Profit | (365) | (337) | (369) | ||||||||||
General, Administrative and Store Operating Expenses | 250 | 232 | 268 | ||||||||||
Loss on Divestiture of La Senza | 0 | ||||||||||||
Impairment of Goodwill | 0 | ||||||||||||
Operating Income (Loss) | (115) | (105) | (101) | ||||||||||
Interest Expense | 115 | 108 | 109 | ||||||||||
Other Income (Loss) | 0 | 0 | 0 | ||||||||||
Income (Loss) Before Income Taxes | 0 | 3 | 8 | ||||||||||
Provision (Benefit) for Income Taxes | 0 | 0 | 0 | ||||||||||
Equity In Earnings Of Consolidated Affiliates | (486) | (1,566) | (2,441) | ||||||||||
Net Income (Loss) Attributable to Parent | (486) | (1,563) | (2,433) | ||||||||||
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 | 0 | ||||||||||
Foreign Currency Translation | 0 | 0 | 0 | ||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | ||||||||||||
Unrealized Gain (Loss) on Cash Flow Hedges | 0 | 0 | 0 | ||||||||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | 0 | ||||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | ||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (486) | (1,563) | (2,433) | ||||||||||
L Brands, Inc. [Member] | |||||||||||||
Net Sales | 0 | 0 | 0 | ||||||||||
Costs of Goods Sold, Buying and Occupancy | 0 | 0 | 0 | ||||||||||
Gross Profit | 0 | 0 | 0 | ||||||||||
General, Administrative and Store Operating Expenses | (11) | (9) | (10) | ||||||||||
Loss on Divestiture of La Senza | 0 | ||||||||||||
Impairment of Goodwill | 0 | ||||||||||||
Operating Income (Loss) | (11) | (9) | (10) | ||||||||||
Interest Expense | (370) | (379) | (403) | ||||||||||
Other Income (Loss) | (40) | 0 | (46) | ||||||||||
Income (Loss) Before Income Taxes | (421) | (388) | (459) | ||||||||||
Provision (Benefit) for Income Taxes | 2 | 12 | 65 | ||||||||||
Equity In Earnings Of Consolidated Affiliates | 57 | 1,044 | 1,507 | ||||||||||
Net Income (Loss) Attributable to Parent | (366) | 644 | 983 | ||||||||||
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 | 0 | ||||||||||
Foreign Currency Translation | 0 | 0 | 0 | ||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | ||||||||||||
Unrealized Gain (Loss) on Cash Flow Hedges | 0 | 0 | 0 | ||||||||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | 0 | ||||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | ||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (366) | 644 | 983 | ||||||||||
Guarantor Subsidiaries | |||||||||||||
Net Sales | 12,317 | 12,467 | 11,931 | ||||||||||
Costs of Goods Sold, Buying and Occupancy | (8,074) | (8,015) | (7,463) | ||||||||||
Gross Profit | 4,243 | 4,452 | 4,468 | ||||||||||
General, Administrative and Store Operating Expenses | (3,380) | (3,304) | (3,063) | ||||||||||
Loss on Divestiture of La Senza | (24) | ||||||||||||
Impairment of Goodwill | (690) | ||||||||||||
Operating Income (Loss) | 173 | 1,124 | 1,405 | ||||||||||
Interest Expense | (116) | (108) | (99) | ||||||||||
Other Income (Loss) | 0 | 13 | 11 | ||||||||||
Income (Loss) Before Income Taxes | 57 | 1,029 | 1,317 | ||||||||||
Provision (Benefit) for Income Taxes | 55 | 100 | 316 | ||||||||||
Equity In Earnings Of Consolidated Affiliates | 39 | 169 | 522 | ||||||||||
Net Income (Loss) Attributable to Parent | 41 | 1,098 | 1,523 | ||||||||||
Reclassification of Cash Flow Hedges to Earnings | 0 | 0 | 0 | ||||||||||
Foreign Currency Translation | 0 | 0 | 0 | ||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | ||||||||||||
Unrealized Gain (Loss) on Cash Flow Hedges | 0 | 0 | 0 | ||||||||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | 0 | ||||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | ||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 41 | 1,098 | 1,523 | ||||||||||
Non-Guarantor Subsidiaries | |||||||||||||
Net Sales | 3,382 | 3,780 | 3,728 | ||||||||||
Costs of Goods Sold, Buying and Occupancy | (2,810) | (2,996) | (2,868) | ||||||||||
Gross Profit | 572 | 784 | 860 | ||||||||||
General, Administrative and Store Operating Expenses | (331) | (482) | (426) | ||||||||||
Loss on Divestiture of La Senza | (75) | ||||||||||||
Impairment of Goodwill | (30) | ||||||||||||
Operating Income (Loss) | 211 | 227 | 434 | ||||||||||
Interest Expense | (7) | (6) | (13) | ||||||||||
Other Income (Loss) | (21) | (8) | 25 | ||||||||||
Income (Loss) Before Income Taxes | 183 | 213 | 446 | ||||||||||
Provision (Benefit) for Income Taxes | 128 | 101 | (52) | ||||||||||
Equity In Earnings Of Consolidated Affiliates | 390 | 353 | 412 | ||||||||||
Net Income (Loss) Attributable to Parent | 445 | 465 | 910 | ||||||||||
Reclassification of Cash Flow Hedges to Earnings | (4) | 2 | 7 | ||||||||||
Foreign Currency Translation | (5) | (20) | 23 | ||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 45 | ||||||||||||
Unrealized Gain (Loss) on Cash Flow Hedges | 2 | 10 | (20) | ||||||||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | 2 | ||||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | (7) | 37 | 12 | ||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 438 | $ 502 | $ 922 | ||||||||||
[1] | (a) Victoria's Secret includes goodwill and long-lived store asset impairment charges of $690 million and $51 million , respectively. Victoria's Secret and Bath & Body Works International includes long-lived store asset and goodwill impairment charges of $212 million and $30 million , respectively. For additional information see Note 7 , “Property and Equipment, Net" and Note 9 , "Goodwill and Trade Names." (b) Assets are allocated to the operating segments based on decision making authority relevant to the applicable assets. (c) The 2019 amounts reflect the Company's adoption of ASC 842, Leases , in the first quarter of 2019. (d) Victoria's Secret and Victoria's Secret and Bath & Body Works International includes long-lived store asset impairment charges of $70 million and $31 million , respectively, and Other includes a loss on the sale of La Senza of $99 million and Henri Bendel closures costs of $23 million . For additional information see Note 5 , “Restructuring Activities" and Note 7 , “Property and Equipment, Net." |
Supplemental Guarantor Financ_6
Supplemental Guarantor Financial Information (Condensed Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
Jul. 31, 2019 | Jun. 30, 2019 | Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Net Cash Provided by (Used for) Operating Activities | $ 1,236 | $ 1,377 | $ 1,406 | ||||||||||||||
Investing Activities | |||||||||||||||||
Capital Expenditures | (458) | (629) | (707) | ||||||||||||||
Investment In Equity Affiliates | 0 | 0 | |||||||||||||||
Proceeds from Sale and Maturity of Marketable Securities | (10) | ||||||||||||||||
Other Investing Activities | (22) | 20 | 9 | ||||||||||||||
Net Cash Provided by (Used for) Investing Activities | (480) | (609) | (698) | ||||||||||||||
Financing Activities | |||||||||||||||||
Proceeds from Debt, Net of Issuance Costs | 486 | 0 | 495 | ||||||||||||||
Repayments of Lines of Credit | (12) | (92) | 0 | ||||||||||||||
Payments of Dividends | $ (83) | $ (83) | $ (83) | $ (83) | $ (166) | $ (165) | $ (167) | $ (168) | $ (170) | $ (172) | $ (172) | $ (172) | (332) | (666) | (686) | ||
Repurchases of Common Stock | 0 | (198) | (446) | ||||||||||||||
Payment, Tax Withholding, Share-based Payment Arrangement | (13) | (13) | (32) | ||||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 0 | 0 | 0 | ||||||||||||||
Proceeds From Exercise of Stock Options | 1 | 1 | 38 | ||||||||||||||
Proceeds from (Payments for) Other Financing Activities | (14) | (7) | (8) | ||||||||||||||
Net Cash Provided by (Used in) Financing Activities | (666) | (872) | (1,127) | ||||||||||||||
Effects of Exchange Rate Changes on Cash | (4) | 2 | 0 | ||||||||||||||
Cash and Cash Equivalents, Beginning of Year | 1,413 | 1,515 | 1,934 | 1,413 | 1,515 | 1,934 | |||||||||||
Cash and Cash Equivalents, End of Year | 1,499 | 1,413 | 1,515 | 1,499 | 1,413 | 1,515 | |||||||||||
Repayments of Long-term Debt | $ (130) | $ (669) | (799) | (52) | (540) | ||||||||||||
Proceeds from Lines of Credit | 12 | 92 | 0 | ||||||||||||||
Cash and Cash Equivalents, Period Increase (Decrease) | 86 | (102) | (419) | ||||||||||||||
Eliminations | |||||||||||||||||
Net Cash Provided by (Used for) Operating Activities | 0 | 0 | 0 | ||||||||||||||
Investing Activities | |||||||||||||||||
Capital Expenditures | 0 | 0 | 0 | ||||||||||||||
Investment In Equity Affiliates | 13 | 21 | |||||||||||||||
Other Investing Activities | 0 | 0 | 0 | ||||||||||||||
Net Cash Provided by (Used for) Investing Activities | 13 | 21 | 0 | ||||||||||||||
Financing Activities | |||||||||||||||||
Proceeds from Debt, Net of Issuance Costs | 0 | 0 | |||||||||||||||
Repayments of Lines of Credit | 0 | 0 | |||||||||||||||
Payments of Dividends | 0 | 0 | 0 | ||||||||||||||
Repurchases of Common Stock | 0 | 0 | |||||||||||||||
Payment, Tax Withholding, Share-based Payment Arrangement | 0 | 0 | 0 | ||||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | (13) | (21) | 0 | ||||||||||||||
Proceeds From Exercise of Stock Options | 0 | 0 | 0 | ||||||||||||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | 0 | ||||||||||||||
Net Cash Provided by (Used in) Financing Activities | (13) | (21) | 0 | ||||||||||||||
Effects of Exchange Rate Changes on Cash | 0 | 0 | 0 | ||||||||||||||
Cash and Cash Equivalents, Beginning of Year | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Cash and Cash Equivalents, End of Year | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Repayments of Long-term Debt | 0 | 0 | 0 | ||||||||||||||
Proceeds from Lines of Credit | 0 | 0 | |||||||||||||||
Cash and Cash Equivalents, Period Increase (Decrease) | 0 | 0 | 0 | ||||||||||||||
L Brands, Inc. [Member] | |||||||||||||||||
Net Cash Provided by (Used for) Operating Activities | (427) | (424) | (401) | ||||||||||||||
Investing Activities | |||||||||||||||||
Capital Expenditures | 0 | 0 | 0 | ||||||||||||||
Investment In Equity Affiliates | 0 | 0 | |||||||||||||||
Other Investing Activities | 0 | 0 | 0 | ||||||||||||||
Net Cash Provided by (Used for) Investing Activities | 0 | 0 | 0 | ||||||||||||||
Financing Activities | |||||||||||||||||
Proceeds from Debt, Net of Issuance Costs | 486 | 495 | |||||||||||||||
Repayments of Lines of Credit | (12) | (92) | |||||||||||||||
Payments of Dividends | (332) | (666) | (686) | ||||||||||||||
Repurchases of Common Stock | (198) | (446) | |||||||||||||||
Payment, Tax Withholding, Share-based Payment Arrangement | (13) | (13) | (32) | ||||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | 1,090 | 1,355 | 1,577 | ||||||||||||||
Proceeds From Exercise of Stock Options | 1 | 1 | 38 | ||||||||||||||
Proceeds from (Payments for) Other Financing Activities | (6) | (3) | (5) | ||||||||||||||
Net Cash Provided by (Used in) Financing Activities | 427 | 424 | 401 | ||||||||||||||
Effects of Exchange Rate Changes on Cash | 0 | 0 | 0 | ||||||||||||||
Cash and Cash Equivalents, Beginning of Year | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Cash and Cash Equivalents, End of Year | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Repayments of Long-term Debt | (799) | (52) | (540) | ||||||||||||||
Proceeds from Lines of Credit | 12 | 92 | |||||||||||||||
Cash and Cash Equivalents, Period Increase (Decrease) | 0 | 0 | 0 | ||||||||||||||
Guarantor Subsidiaries | |||||||||||||||||
Net Cash Provided by (Used for) Operating Activities | 837 | 1,541 | 1,353 | ||||||||||||||
Investing Activities | |||||||||||||||||
Capital Expenditures | (276) | (398) | (495) | ||||||||||||||
Investment In Equity Affiliates | (13) | 0 | |||||||||||||||
Other Investing Activities | 12 | 4 | (1) | ||||||||||||||
Net Cash Provided by (Used for) Investing Activities | (277) | (394) | (496) | ||||||||||||||
Financing Activities | |||||||||||||||||
Proceeds from Debt, Net of Issuance Costs | 0 | 0 | |||||||||||||||
Repayments of Lines of Credit | 0 | 0 | |||||||||||||||
Payments of Dividends | 0 | 0 | 0 | ||||||||||||||
Repurchases of Common Stock | 0 | 0 | |||||||||||||||
Payment, Tax Withholding, Share-based Payment Arrangement | 0 | 0 | 0 | ||||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | (318) | (1,310) | (1,252) | ||||||||||||||
Proceeds From Exercise of Stock Options | 0 | 0 | 0 | ||||||||||||||
Proceeds from (Payments for) Other Financing Activities | (8) | (4) | (3) | ||||||||||||||
Net Cash Provided by (Used in) Financing Activities | (326) | (1,314) | (1,255) | ||||||||||||||
Effects of Exchange Rate Changes on Cash | 0 | 0 | 0 | ||||||||||||||
Cash and Cash Equivalents, Beginning of Year | 997 | 1,164 | 1,562 | 997 | 1,164 | 1,562 | |||||||||||
Cash and Cash Equivalents, End of Year | 1,231 | 997 | 1,164 | 1,231 | 997 | 1,164 | |||||||||||
Repayments of Long-term Debt | 0 | 0 | 0 | ||||||||||||||
Proceeds from Lines of Credit | 0 | 0 | |||||||||||||||
Cash and Cash Equivalents, Period Increase (Decrease) | 234 | (167) | (398) | ||||||||||||||
Non-Guarantor Subsidiaries | |||||||||||||||||
Net Cash Provided by (Used for) Operating Activities | 826 | 260 | 454 | ||||||||||||||
Investing Activities | |||||||||||||||||
Capital Expenditures | (182) | (231) | (212) | ||||||||||||||
Investment In Equity Affiliates | 0 | (21) | |||||||||||||||
Other Investing Activities | (34) | 16 | 10 | ||||||||||||||
Net Cash Provided by (Used for) Investing Activities | (216) | (236) | (202) | ||||||||||||||
Financing Activities | |||||||||||||||||
Proceeds from Debt, Net of Issuance Costs | 0 | 0 | |||||||||||||||
Repayments of Lines of Credit | 0 | 0 | |||||||||||||||
Payments of Dividends | 0 | 0 | 0 | ||||||||||||||
Repurchases of Common Stock | 0 | 0 | |||||||||||||||
Payment, Tax Withholding, Share-based Payment Arrangement | 0 | 0 | 0 | ||||||||||||||
Net Financing Activities and Advances to/from Consolidated Affiliates | (759) | (24) | (325) | ||||||||||||||
Proceeds From Exercise of Stock Options | 0 | 0 | 0 | ||||||||||||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | 0 | ||||||||||||||
Net Cash Provided by (Used in) Financing Activities | (754) | 39 | (273) | ||||||||||||||
Effects of Exchange Rate Changes on Cash | (4) | 2 | 0 | ||||||||||||||
Cash and Cash Equivalents, Beginning of Year | $ 416 | $ 351 | $ 372 | 416 | 351 | 372 | |||||||||||
Cash and Cash Equivalents, End of Year | $ 268 | $ 416 | $ 351 | 268 | 416 | 351 | |||||||||||
Repayments of Long-term Debt | 0 | 0 | 0 | ||||||||||||||
Proceeds from Lines of Credit | 0 | 0 | |||||||||||||||
Cash and Cash Equivalents, Period Increase (Decrease) | (148) | 65 | (21) | ||||||||||||||
Foreign Facilities [Member] | |||||||||||||||||
Financing Activities | |||||||||||||||||
Repayments of Lines of Credit | (162) | (109) | (44) | ||||||||||||||
Proceeds from Lines of Credit | 167 | 172 | 96 | ||||||||||||||
Foreign Facilities [Member] | Eliminations | |||||||||||||||||
Financing Activities | |||||||||||||||||
Repayments of Lines of Credit | 0 | 0 | 0 | ||||||||||||||
Proceeds from Lines of Credit | 0 | 0 | 0 | ||||||||||||||
Foreign Facilities [Member] | L Brands, Inc. [Member] | |||||||||||||||||
Financing Activities | |||||||||||||||||
Repayments of Lines of Credit | 0 | 0 | 0 | ||||||||||||||
Proceeds from Lines of Credit | 0 | 0 | 0 | ||||||||||||||
Foreign Facilities [Member] | Guarantor Subsidiaries | |||||||||||||||||
Financing Activities | |||||||||||||||||
Repayments of Lines of Credit | 0 | 0 | 0 | ||||||||||||||
Proceeds from Lines of Credit | 0 | 0 | 0 | ||||||||||||||
Foreign Facilities [Member] | Non-Guarantor Subsidiaries | |||||||||||||||||
Financing Activities | |||||||||||||||||
Repayments of Lines of Credit | (162) | (109) | (44) | ||||||||||||||
Proceeds from Lines of Credit | $ 167 | $ 172 | $ 96 |