Cover
Cover - shares | 9 Months Ended | |
Oct. 30, 2021 | Nov. 26, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-8344 | |
Entity Registrant Name | BATH & BODY WORKS, INC. | |
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 | |
Entity Registrant Former Name | Not Applicable | |
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 | |
Title of 12(b) Security | Common Stock, $0.50 Par Value | |
Trading Symbol | BBWI | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 257,722,930 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000701985 | |
Current Fiscal Year End Date | --01-29 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |||
Income Statement [Abstract] | ||||||
Net Sales | $ 1,681 | $ 1,702 | $ 4,854 | $ 3,716 | ||
Costs of Goods Sold, Buying and Occupancy | (842) | (839) | (2,445) | (2,027) | ||
Gross Profit | 839 | 863 | 2,409 | 1,689 | ||
General, Administrative and Store Operating Expenses | (430) | (427) | (1,279) | (954) | ||
Operating Income | 409 | 436 | 1,130 | 735 | ||
Interest Expense | (91) | (119) | (301) | (317) | ||
Other Loss | (91) | (52) | (196) | (47) | ||
Income from Continuing Operations Before Income Taxes | 227 | 265 | 633 | 371 | ||
Provision for Income Taxes | 50 | 69 | 150 | 63 | ||
Net Income from Continuing Operations | 177 | 196 | 483 | 308 | ||
Income (Loss) from Discontinued Operations, Net of Tax | (89) | 135 | 256 | (324) | ||
Net Income (Loss) | $ 88 | $ 331 | $ 739 | [1] | $ (16) | [1] |
Net Income (Loss) per Basic Share | ||||||
Continuing Operations (in USD per share) | $ 0.67 | $ 0.70 | $ 1.77 | $ 1.11 | ||
Discontinued Operations (in USD per share) | (0.34) | 0.48 | 0.94 | (1.17) | ||
Total Net Income (Loss) Per Basic Share (in USD per share) | 0.33 | 1.19 | 2.71 | (0.06) | ||
Net Income (Loss) per Diluted Share | ||||||
Continuing Operations (in USD per share) | 0.66 | 0.69 | 1.74 | 1.10 | ||
Discontinued Operations (in USD per share) | (0.33) | 0.48 | 0.92 | (1.15) | ||
Total Net Income (Loss) Per Diluted Share (in USD per share) | 0.33 | 1.17 | 2.67 | (0.06) | ||
Dividends Per Share (in USD per share) | $ 0.15 | $ 0 | $ 0.30 | $ 0.30 | ||
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |||
Statement of Comprehensive Income [Abstract] | ||||||
Net Income (Loss) | $ 88 | $ 331 | $ 739 | [1] | $ (16) | [1] |
Other Comprehensive Income (Loss), Net of Tax: | ||||||
Foreign Currency Translation | 1 | (1) | 4 | (4) | ||
Unrealized Gain (Loss) on Cash Flow Hedges | (1) | 0 | (1) | 2 | ||
Reclassification of Cash Flow Hedges to Earnings | 1 | 0 | 2 | (2) | ||
Total Other Comprehensive Income (Loss), Net of Tax | 1 | (1) | 5 | (4) | ||
Total Comprehensive Income (Loss) | $ 89 | $ 330 | $ 744 | $ (20) | ||
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Current Assets: | |||
Cash and Cash Equivalents | $ 1,441 | $ 3,568 | $ 2,433 |
Accounts Receivable, Net | 242 | 148 | 161 |
Inventories | 1,149 | 572 | 883 |
Other | 153 | 52 | 72 |
Current Assets of Discontinued Operations | 0 | 1,239 | 1,378 |
Total Current Assets | 2,985 | 5,579 | 4,927 |
Property and Equipment, Net | 1,017 | 1,017 | 1,064 |
Operating Lease Assets | 1,023 | 968 | 875 |
Goodwill | 628 | 628 | 628 |
Trade Names | 165 | 165 | 165 |
Deferred Income Taxes | 62 | 58 | 59 |
Other Assets | 151 | 175 | 279 |
Other Assets of Discontinued Operations | 0 | 2,981 | 3,164 |
Total Assets | 6,031 | 11,571 | 11,161 |
Current Liabilities: | |||
Accounts Payable | 655 | 345 | 553 |
Accrued Expenses and Other | 636 | 727 | 871 |
Current Operating Lease Liabilities | 143 | 173 | 182 |
Income Taxes | 1 | 83 | 112 |
Current Liabilities of Discontinued Operations | 0 | 1,498 | 1,612 |
Total Current Liabilities | 1,435 | 2,826 | 3,330 |
Deferred Income Taxes | 146 | 141 | 117 |
Long-term Debt | 4,852 | 6,366 | 6,364 |
Long-term Operating Lease Liabilities | 993 | 942 | 857 |
Other Long-term Liabilities | 280 | 290 | 164 |
Other Long-term Liabilities of Discontinued Operations | 0 | 1,667 | 1,893 |
Shareholders’ Equity (Deficit): | |||
Preferred Stock - $1.00 par value; 10 shares authorized; none issued | 0 | 0 | 0 |
Common Stock - $0.50 par value; 1,000 shares authorized; 275, 286 and 286 shares issued; 260, 278 and 278 shares outstanding, respectively | 137 | 143 | 143 |
Paid-in Capital | 904 | 891 | 879 |
Accumulated Other Comprehensive Income | 80 | 83 | 48 |
Retained Earnings (Accumulated Deficit) | (1,975) | (1,421) | (2,280) |
Less: Treasury Stock, at Average Cost; 15, 8 and 8 shares, respectively | (822) | (358) | (358) |
Total Shareholders’ Equity (Deficit) | (1,676) | (662) | (1,568) |
Noncontrolling Interest | 1 | 1 | 4 |
Total Equity (Deficit) | (1,675) | (661) | (1,564) |
Total Liabilities and Equity (Deficit) | $ 6,031 | $ 11,571 | $ 11,161 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Statement of Financial Position [Abstract] | |||
Preferred stock, par value (in USD per share) | $ 1 | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 | 10,000 |
Preferred stock, shares issued (in shares) | 0 | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.50 | $ 0.50 | $ 0.50 |
Common stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Common stock, shares issued (in shares) | 275,000 | 286,000 | 286,000 |
Common Stock, shares outstanding (in shares) | 260,000 | 278,000 | 278,000 |
Treasury stock (in shares) | 15,000 | 8,000 | 8,000 |
CONSOLIDATED STATEMENTS OF TOTA
CONSOLIDATED STATEMENTS OF TOTAL EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings (Accumulated Deficit) | Treasury Stock, at Average Cost | Noncontrolling Interest | |
Ending Balance (in shares) | 277,000 | |||||||
Beginning Balance (in shares) at Feb. 01, 2020 | 277,000 | |||||||
Beginning Balance at Feb. 01, 2020 | $ (1,495) | $ 142 | $ 847 | $ 52 | $ (2,182) | $ (358) | $ 4 | |
Net Income (Loss) | (16) | [1] | (16) | |||||
Other Comprehensive Income | (4) | (4) | ||||||
Total Comprehensive Income | (20) | (4) | (16) | |||||
Cash Dividends | (83) | (83) | ||||||
Share-based Compensation and Other (in shares) | 1,000 | |||||||
Share-based Compensation and Other | 33 | $ 1 | 32 | |||||
Ending Balance at Oct. 31, 2020 | (1,564) | $ 143 | 879 | 48 | (2,280) | (358) | 4 | |
Ending Balance (in shares) | 278,000 | |||||||
Beginning Balance (in shares) at Aug. 01, 2020 | 278,000 | |||||||
Beginning Balance at Aug. 01, 2020 | (1,904) | $ 143 | 869 | 49 | (2,611) | (358) | 4 | |
Net Income (Loss) | 331 | 331 | ||||||
Other Comprehensive Income | (1) | (1) | 0 | |||||
Total Comprehensive Income | 330 | (1) | 331 | |||||
Share-based Compensation and Other | 10 | 10 | 0 | |||||
Ending Balance at Oct. 31, 2020 | $ (1,564) | $ 143 | 879 | 48 | (2,280) | (358) | 4 | |
Ending Balance (in shares) | 278,000 | 278,000 | ||||||
Ending Balance (in shares) | 278,000 | 278,000 | ||||||
Beginning Balance (in shares) at Jan. 30, 2021 | 278,000 | 278,000 | ||||||
Beginning Balance at Jan. 30, 2021 | $ (661) | $ 143 | 891 | 83 | (1,421) | (358) | 1 | |
Net Income (Loss) | 739 | [1] | 739 | |||||
Other Comprehensive Income | 5 | 5 | 0 | |||||
Total Comprehensive Income | 744 | 5 | 739 | |||||
Victoria's Secret Spin-Off | (183) | (8) | (175) | |||||
Cash Dividends | (81) | (81) | ||||||
Repurchases of Common Stock (in shares) | (22,000) | |||||||
Repurchases of Common Stock | (1,559) | (1,559) | ||||||
Treasury Share Retirement | $ (8) | (50) | (1,037) | 1,095 | ||||
Share-based Compensation and Other (in shares) | 4,000 | |||||||
Share-based Compensation and Other | 65 | $ 2 | 63 | |||||
Ending Balance at Oct. 30, 2021 | (1,675) | $ 137 | 904 | 80 | (1,975) | (822) | 1 | |
Ending Balance (in shares) | 265,000 | |||||||
Beginning Balance (in shares) at Jul. 31, 2021 | 265,000 | |||||||
Beginning Balance at Jul. 31, 2021 | (1,188) | $ 140 | 911 | 87 | (1,505) | (822) | 1 | |
Net Income (Loss) | 88 | 88 | ||||||
Other Comprehensive Income | 1 | 1 | ||||||
Total Comprehensive Income | 89 | 1 | 88 | |||||
Victoria's Secret Spin-Off | (183) | (8) | (175) | |||||
Cash Dividends | (39) | (39) | ||||||
Repurchases of Common Stock (in shares) | (5,000) | |||||||
Repurchases of Common Stock | (365) | (365) | ||||||
Treasury Share Retirement | $ (3) | (18) | (344) | 365 | ||||
Share-based Compensation and Other (in shares) | 0 | |||||||
Share-based Compensation and Other | 11 | $ 0 | 11 | |||||
Ending Balance at Oct. 30, 2021 | $ (1,675) | $ 137 | $ 904 | $ 80 | $ (1,975) | $ (822) | $ 1 | |
Ending Balance (in shares) | 260,000 | 260,000 | ||||||
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
CONSOLIDATED STATEMENTS OF TO_2
CONSOLIDATED STATEMENTS OF TOTAL EQUITY (DEFICIT) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Oct. 30, 2021 | Jul. 31, 2021 | May 01, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||||||
Cash dividends (in USD per share) | $ 0.15 | $ 0.15 | $ 0 | $ 0 | $ 0 | $ 0.30 | $ 0.30 | $ 0.30 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | ||
Operating Activities: | |||
Net Income (Loss) | [1] | $ 739 | $ (16) |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | |||
Depreciation of Long-lived Assets | [1] | 310 | 393 |
Loss on Extinguishment of Debt | [1] | 195 | 53 |
Victoria's Secret Asset Impairment Charges | [1] | 0 | 214 |
Share-based Compensation Expense | [1] | 38 | 39 |
Deferred Income Taxes | [1] | 19 | (14) |
Gain from Victoria's Secret Hong Kong Store Closure and Lease Termination | [1] | 0 | (39) |
Gain Related to Formation of Victoria's Secret U.K. Joint Venture | [1] | 0 | (30) |
Changes in Assets and Liabilities: | |||
Accounts Receivable | [1] | (61) | 9 |
Inventories | [1] | (617) | (590) |
Accounts Payable, Accrued Expenses and Other | [1] | 132 | 591 |
Income Taxes Payable | [1] | (149) | (29) |
Other Assets and Liabilities | [1] | (159) | 125 |
Net Cash Provided by Operating Activities | [1] | 447 | 706 |
Investing Activities: | |||
Capital Expenditures | [1] | (241) | (200) |
Other Investing Activities | [1] | 13 | 17 |
Net Cash Used for Investing Activities | [1] | (228) | (183) |
Financing Activities: | |||
Proceeds from Issuance of Long-Term Debt, Net of Issuance Costs | [1] | 0 | 2,219 |
Payments of Long-term Debt | [1] | (1,716) | (1,307) |
Proceeds from Spin-Off of Victoria's Secret & Co. | 976 | 0 | |
Transfers and Payments to Victoria's Secret & Co. related to Spin-Off | (362) | 0 | |
Repurchases of Common Stock | [1] | (1,544) | 0 |
Dividends Paid | [1] | (81) | (83) |
Tax Payments related to Share-based Awards | [1] | (58) | (8) |
Proceeds from Stock Option Exercises | [1] | 81 | 1 |
Other Financing Activities | [1] | (9) | (36) |
Net Cash Provided by (Used for) Financing Activities | [1] | (2,713) | 729 |
Effects of Exchange Rate Changes on Cash and Cash Equivalents and Restricted Cash | [1] | 2 | (1) |
Net Increase (Decrease) in Cash and Cash Equivalents and Restricted Cash | [1] | (2,492) | 1,251 |
Cash and Cash Equivalents and Restricted Cash, Beginning of Period | [1] | 3,933 | 1,499 |
Cash and Cash Equivalents and Restricted Cash, End of Period | [1] | 1,441 | 2,750 |
Credit Agreement | |||
Financing Activities: | |||
Borrowing from Credit Agreement | [1] | 0 | 950 |
Net Repayments of Victoria's Secret Foreign Facilities | [1] | 0 | (950) |
Foreign Facilities | |||
Financing Activities: | |||
Net Repayments of Victoria's Secret Foreign Facilities | [1] | $ 0 | $ (57) |
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Oct. 30, 2021 | |
Description Of Business And Basis Of Presentation [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business Bath & Body Works, Inc. ("Bath & Body Works" or the "Company") is a specialty retailer of home fragrance products, body care, and soaps and sanitizers. Through the Bath & Body Works retail brand, the Company sells merchandise through company-operated specialty retail stores in the U.S. and Canada, and through its websites and other channels. The Company's international operations are primarily through franchise, license and wholesale partners. On August 2, 2021, the Company completed the spin-off of its Victoria's Secret business, which included the Victoria's Secret and PINK brands, into an independent publicly traded company. As a result, the operating results for the Victoria's Secret business through the date of the spin-off are reported in Income (Loss) from Discontinued Operations, Net of Tax in the Consolidated Statements of Income (Loss) for all periods presented. In addition, the related assets and liabilities are reported as Assets and Liabilities of Discontinued Operations on the Consolidated Balance Sheets. Unless otherwise noted, all amounts and disclosures included in the Notes to Consolidated Financial Statements reflect only the Company's continuing operations. For additional information, see Note 2, "Discontinued Operations." On August 2, 2021, in connection with the spin-off of the Victoria's Secret business discussed above, the Company changed its name from L Brands, Inc. to Bath & Body Works, Inc. Additionally, starting August 3, 2021, the Company's common stock began trading under the stock symbol "BBWI." Impacts of COVID-19 The coronavirus pandemic ("COVID-19") has created significant public health concerns as well as economic disruption, uncertainty and volatility. The Company's operations and financial performance have been materially impacted by the COVID-19 pandemic. In the first quarter of 2020, all the Company-operated stores were closed on March 17, 2020, but the Company was able to re-open the majority of its stores as of the end of the second quarter of 2020. The Direct business remained open for the duration of 2020. During 2020, the Company took prudent actions to manage expenses and to maintain its cash position and financial flexibility. The Company adopted new operating models focused on safety. The Company continues to remain focused on providing a safe store environment for its customers and associates, while also delivering an engaging shopping experience. The Company also remains focused on the safe operations of its distribution and fulfillment centers while maximizing its direct business. There remains the potential for COVID-related closures or operating restrictions, which could materially impact the Company's operations and financial performance in future periods. Fiscal Year The Company’s fiscal year ends on the Saturday nearest to January 31. As used herein, “third quarter of 2021” and “third quarter of 2020” refer to the thirteen-week periods ended October 30, 2021 and October 31, 2020, respectively. “Year-to-date 2021” and “year-to-date 2020” refer to the thirty-nine-week periods ended October 30, 2021 and October 31, 2020, respectively. Basis of Consolidation The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company accounts for investments in unconsolidated entities where it exercises significant influence, but does not have control, using the equity method. Under the equity method of accounting, the Company recognizes its share of the investee's net income or loss. Losses are only recognized to the extent the Company has positive carrying value related to the investee. Carrying values are only reduced below zero if the Company has an obligation to provide funding to the investee. The Company’s share of net income or loss of all unconsolidated entities is included in Other 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. Segment Reporting The Company operates as a single segment that includes all of its continuing operations, which is designed to enable customers to purchase its products through stores or digital channels. The Company previously had two reportable segments: Bath & Body Works and Victoria's Secret. The Victoria's Secret reportable segment was spun-off on August 2, 2021 and is now reported as discontinued operations for all periods through that date. Interim Financial Statements The Consolidated Financial Statements as of and for the periods ended October 30, 2021 and October 31, 2020 are unaudited and are presented pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained in the Company’s 2020 Annual Report on Form 10-K. In the opinion of management, the accompanying Consolidated Financial Statements reflect all adjustments that are of a normal recurring nature and necessary for a fair presentation of the results for the interim periods. Seasonality of Business Due to the seasonal variations in the retail industry, the results of operations for the interim period are not necessarily indicative of the results expected for the full fiscal year. Restricted Cash During 2020, the Company placed cash on deposit with certain financial institutions as collateral for their lending commitments to certain former Victoria's Secret subsidiaries. These deposits totaled $30 million and $128 million as of January 30, 2021 and October 31, 2020, respectively, and were recorded in Other Assets on the Consolidated Balance Sheets. During the second quarter of 2021, these lending commitments were terminated which released the restrictions on this cash. Accordingly, the balance was reclassified to Cash and Cash Equivalents during the second quarter of 2021. 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. The earnings of the Company's Canadian operations are subject to exchange rate risk as substantially all the 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. Amounts are reclassified from accumulated other comprehensive income (loss) upon sale of the hedged merchandise to the customer. These gains and losses are recognized in Costs of Goods Sold, Buying and Occupancy in the Consolidated Statements of Income (Loss). The fair value of designated cash flow hedges is not significant for any period presented. 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. 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 determines the required allowance for expected credit losses using information such as customer credit history and financial condition. Amounts are recorded to the allowance when it is determined that expected credit losses may occur. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. Actual results may differ from those estimates, and the Company revises its estimates and assumptions as new information becomes available. Recently Issued Accounting Pronouncements The Company did not adopt any new accounting standards during the third quarter of 2021 that had a material impact on the Company's consolidated results of operations, financial position or cash flows. In addition, there are no new accounting standards not yet adopted that are expected to have a material impact on the Company's consolidated results of operations, financial position or cash flows. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Oct. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On July 9, 2021, the Company announced that its Board of Directors approved the previously announced separation of the Victoria’s Secret business (the "Separation") into an independent, publicly traded company, Victoria's Secret & Co. On August 2, 2021 (the “Distribution Date”), after the New York Stock Exchange ("NYSE") market closing, the Separation was completed. The Separation was achieved through the Company's distribution (the "Distribution") of 100% of the shares of Victoria's Secret & Co. common stock to holders of L Brands, Inc. common stock as of the close of business on the record date of July 22, 2021. The Company's stockholders of record received one share of Victoria’s Secret & Co. common stock for every three shares of the Company's common stock. On August 3, 2021, Victoria’s Secret & Co. became an independent, publicly-traded company trading on the NYSE under the stock symbol "VSCO." The Company retained no ownership interest in Victoria’s Secret & Co. following the Separation. In July 2021, Victoria’s Secret & Co., prior to the Separation and while a subsidiary of the Company, issued $600 million of 4.625% notes due in July 2029 (the "VSCO Notes"). As of July 31, 2021, the initial proceeds were held in escrow for release to Victoria's Secret & Co. upon satisfaction of certain conditions, including completion of the Separation. Additionally, on August 2, 2021, in connection with the Separation, Victoria's Secret & Co. entered into a term loan facility with a credit limit of $400 million and a senior secured asset-based revolving credit facility with a credit limit of $750 million. In connection with the Separation, Victoria's Secret & Co. received net cash proceeds of $384 million from its $400 million borrowing under its credit facilities. The proceeds from the credit facilities and the $592 million net proceeds from the VSCO Notes were used to fund cash payments of $976 million to the Company in connection with the Separation. The Company does not guarantee the VSCO Notes, the Victoria's Secret & Co. term loan facility or the Victoria's Secret & Co. senior secured asset-based revolving credit facility following the Separation. Cash and Cash Equivalents of $282 million held by Victoria's Secret subsidiaries were transferred to Victoria's Secret & Co. on the Distribution Date. Additionally, the Company made payments of $80 million to Victoria's Secret & Co. during the third quarter for costs incurred prior to the Distribution Date pursuant to the terms of the Separation agreements. During the third quarter of 2021, the Company recognized a net reduction to retained earnings of $175 million as a result of the Separation, primarily related to the transfer of certain assets and liabilities associated with its Victoria's Secret business to Victoria's Secret & Co. net of the $976 million of cash payments received from Victoria's Secret & Co. Additionally, the Company reclassified out of accumulated other comprehensive income $8 million of accumulated foreign currency translation adjustments related to the Victoria's Secret business. In connection with the Separation, the Company entered into several agreements with Victoria's Secret & Co. that govern the relationship of the parties following the spin-off, including the Separation and Distribution Agreement, the Transition Services Agreements, the Tax Matters Agreement, the Employee Matters Agreement and the Domestic Transportation Services Agreement. Under the terms of the Transition Services Agreements, the Company will provide to Victoria's Secret & Co. various services or functions, including human resources, payroll and certain logistics functions. Additionally, Victoria's Secret & Co. will provide to the Company various services or functions, including information technology, certain logistics functions, customer marketing and customer call center services. Generally, these services will be performed for a period of up to two years following the Distribution, except for information technology services, which will be provided for a period of up to three years following the Distribution and may be extended for a maximum of two additional one-year periods subject to increased administrative charges. Consideration and costs for the transition services are determined using several billing methodologies as described in the agreements, including customary billing, pass-through billing, percent of sales billing or fixed fee billing. Consideration for transition services provided to Victoria's Secret & Co. are recorded within the 2021 Consolidated Statements of Income based on the nature of the service and as an offset to expenses incurred to provide the services. Costs for transition services provided by Victoria's Secret & Co. are recorded within the 2021 Consolidated Statements of Income based on the nature of the service. During the third quarter of 2021, the Company recognized consideration of $20 million and recognized costs of $24 million pursuant to the Transition Service Agreements. Under the terms of the Domestic Transportation Services Agreement, the Company will continue to provide transportation services for Victoria's Secret & Co. merchandise in the United States and Canada for an initial term of three years following the Distribution, which term will thereafter continuously renew unless and until Victoria’s Secret & Co. or the Company elects to terminate the arrangement upon 18 or 36 months’ prior written notice, respectively. Consideration for the transportation services is determined using customary billing and fixed billing methodologies, which are described in the agreement, and are subject to an administrative charge. During the third quarter of 2021, the Company recognized consideration of $18 million pursuant to the Domestic Transportation Services Agreement. In conjunction with the Separation, the Company has contingent obligations relating to certain lease payments under the current terms of noncancelable leases. For additional information, see Note 13, "Commitments and Contingencies." Financial Information of Discontinued Operations Income (Loss) from Discontinued Operations, Net of Tax in the Consolidated Statements of Income (Loss) reflects the after-tax results of the Victoria's Secret business and Separation-related fees, and does not include any allocation of general corporate overhead expense or interest expense of the Company. The following table summarizes the significant line items included in Income (Loss) from Discontinued Operations, Net of Tax in the Consolidated Statements of Income (Loss) for the third quarter and year-to-date 2021 and 2020: Third Quarter Year-to-Date 2021 2020 2021 2020 (in millions) Net Sales $ 25 $ 1,353 $ 3,194 $ 3,313 Costs of Goods Sold, Buying and Occupancy (14) (856) (1,841) (2,643) General, Administrative and Store Operating Expenses (a) (83) (352) (975) (1,098) Interest Expense — (1) (2) (5) Other Income (Loss) — 1 (1) (1) Income (Loss) from Discontinued Operations Before Income Taxes (72) 145 375 (434) Provision (Benefit) for Income Taxes 17 10 119 (110) Income (Loss) from Discontinued Operations, Net of Tax $ (89) $ 135 $ 256 $ (324) _______________ (a) Includes Separation-related expenses of $76 million and $104 million for the third quarter and year-to-date 2021, respectively. Prior to the third quarter of 2021, these costs were reported in the Other category under the Company's previous segment reporting. The information presented as discontinued operations on the Consolidated Balance Sheets includes certain assets and liabilities that were transferred to Victoria’s Secret & Co. pursuant to the Separation agreements, and excludes certain liabilities that were retained by the Company in connection with the Separation. There were no assets or liabilities classified as discontinued operations as of October 30, 2021. The following table summarizes the carrying value of the significant classes of assets and liabilities classified as discontinued operations as of January 30, 2021 and October 31, 2020: January 30, October 31, (in millions) Cash and Cash Equivalents $ 335 $ 189 Accounts Receivable, Net 121 135 Inventories 701 981 Other 82 73 Current Assets of Discontinued Operations 1,239 1,378 Property and Equipment, Net 1,078 1,167 Operating Lease Assets 1,590 1,683 Trade Names 246 246 Deferred Income Taxes 11 11 Other Assets 56 57 Other Assets of Discontinued Operations $ 2,981 $ 3,164 Accounts Payable $ 338 $ 548 Accrued Expenses and Other 730 608 Current Debt — 11 Current Operating Lease Liabilities 421 443 Income Taxes 9 2 Current Liabilities of Discontinued Operations 1,498 1,612 Deferred Income Taxes 93 73 Long-term Debt — 87 Long-term Operating Lease Liabilities 1,553 1,709 Other Long-term Liabilities 21 24 Other Long-term Liabilities of Discontinued Operations $ 1,667 $ 1,893 The cash flows related to discontinued operations have not been segregated, and are included in the Consolidated Statements of Cash Flows for all periods presented. The following table summarizes depreciation and other significant operating noncash items, capital expenditures and financing activities of discontinued operations for each period presented: Year-to-Date 2021 2020 (in millions) Depreciation of Long-Lived Assets $ 158 $ 250 Share-based Compensation Expense 15 20 Victoria's Secret Asset Impairment Charges — 214 Gain from Victoria's Secret Hong Kong Store Closure and Lease Termination — (39) Gain Related to Formation of Victoria's Secret U.K. Joint Venture — (30) Capital Expenditures (66) (111) Net Repayments of Victoria's Secret Foreign Facilities — (57) |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Oct. 30, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition | Revenue Recognition Accounts receivable, net from revenue-generating activities were $86 million as of October 30, 2021, $51 million as of January 30, 2021 and $82 million as of October 31, 2020. Accounts receivable primarily relate to amounts due from the Company's franchise, license and wholesale partners. Under these arrangements, payment terms are typically 45 to 75 days. The Company records deferred revenue when cash payments are received in advance of transfer of control of goods or services. Deferred revenue primarily relates to gift cards, loyalty points and direct channel shipments, which are all impacted by seasonal and holiday-related sales patterns. Deferred revenue, which is recorded within Accrued Expenses and Other on the Consolidated Balance Sheets, was $123 million as of October 30, 2021, $115 million as of January 30, 2021 and $98 million as of October 31, 2020. The Company recognized $66 million as revenue year-to-date 2021 from amounts recorded as deferred revenue at the beginning of the year. The following table provides a disaggregation of Net Sales for the third quarter and year-to-date 2021 and 2020: Third Quarter Year-to-Date 2021 2020 2021 2020 (in millions) Stores - U.S. and Canada $ 1,238 $ 1,202 $ 3,518 $ 2,304 Direct - U.S. and Canada 369 446 1,126 1,254 International (a) 74 54 210 158 Total Net Sales $ 1,681 $ 1,702 $ 4,854 $ 3,716 _______________ (a) Results include royalties associated with franchised store and wholesale sales. The Company’s net sales outside of the U.S. include sales from company-operated stores in Canada, royalty revenue from franchise and license arrangements and wholesale revenues. Certain of these sales are subject to the impact of fluctuations in foreign currency. The Company’s net sales outside of the U.S. totaled $159 million and $134 million for the third quarter of 2021 and 2020, respectively, and $397 million and $308 million for year-to-date 2021 and 2020, respectively. |
Restructuring Activities
Restructuring Activities | 9 Months Ended |
Oct. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring ActivitiesDuring the second quarter of 2020, the Company completed a comprehensive review of its home office organizations in order to achieve meaningful reductions in overhead expenses and decentralize significant shared functions and services to support the separation of the Bath & Body Works and Victoria's Secret businesses. Pre-tax severance and related costs associated with these reductions, totaling $30 million, are included in General, Administrative and Store Operating Expenses in the year-to-date 2020 Consolidated Statement of Loss. |
Earnings (Loss) Per Share and S
Earnings (Loss) Per Share and Shareholders’ Equity (Deficit) | 9 Months Ended |
Oct. 30, 2021 | |
Earnings Per Share And Shareholders' Equity [Abstract] | |
Earnings (Loss) Per Share and Shareholders’ Equity (Deficit) | Earnings (Loss) Per Share and Shareholders’ Equity (Deficit) Earnings (Loss) Per Share Earnings (loss) per basic share is computed based on the weighted-average number of common shares. Earnings (loss) per diluted share include the weighted-average effect of dilutive restricted stock and options on the weighted-average shares outstanding. The following table provides the weighted-average shares utilized for the calculation of basic and diluted earnings (loss) per share for the third quarter and year-to-date 2021 and 2020: Third Quarter Year-to-Date 2021 2020 2021 2020 (in millions) Common Shares 278 287 285 286 Treasury Shares (15) (8) (13) (8) Basic Shares 263 279 272 278 Effect of Dilutive Restricted Stock and Options 4 4 5 3 Diluted Shares 267 283 277 281 Anti-dilutive Options and Awards (a) 1 4 1 5 _______________ (a) These options and awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. Shareholders’ Equity (Deficit) Common Stock Share Repurchases In March 2021, the Company's Board of Directors authorized a new $500 million share repurchase plan, which replaced the $79 million remaining under the March 2018 repurchase program. Pursuant to the Board's authorization, the Company entered into a Rule 10b5-1 purchase plan to effectuate share repurchases for the first $250 million. In May 2021, the Company initiated a second $250 million Rule 10b5-1 purchase plan to effectuate the remaining share repurchases under the March 2021 repurchase plan. In July 2021, the Company's Board of Directors authorized a new $1.5 billion share repurchase program (the "July 2021 Program"), which replaced the $36 million remaining under the March 2021 repurchase program. Under the authorization of this program, in July 2021 the Company entered into a stock repurchase agreement with its former Chief Executive Officer and certain of his affiliated entities pursuant to which the Company repurchased 10 million shares of its common stock for an aggregate purchase price of $730 million. The Company repurchased the following shares of its common stock during year-to-date 2021: Repurchase Program Amount Shares Amount Average Stock Price (in millions) (in thousands) (in millions) March 2021 (a) $ 500 6,996 $ 464 $ 66.30 July 2021 (a) $ 1,500 10,000 $ 730 $ 73.01 July 2021 (b) 5,510 $ 365 $ 66.21 _______________ (a) Reflects repurchases of L Brands, Inc. common stock prior to the August 2, 2021 spin-off of Victoria's Secret & Co. (b) Reflects repurchases of Bath & Body Works, Inc. common stock subsequent to the August 2, 2021 spin-off of Victoria's Secret & Co. The July 2021 Program had $405 million remaining as of October 30, 2021. There were $15 million of share repurchases reflected in Accounts Payable on the October 30, 2021 Consolidated Balance Sheet. Subsequent to October 30, 2021, the Company repurchased an additional 2.2 million shares of its common stock for $166 million under the July 2021 Program. Common Stock Retirement In accordance with the Company's Board of Directors' resolution, shares of common stock repurchased under the July 2021 Program will be retired and cancelled upon repurchase. As a result, the Company retired the 16 million shares repurchased under the July 2021 Program during year-to-date 2021, which resulted in reductions of $8 million in the par value of Common Stock, $50 million in Paid-in Capital and $1.037 billion in Retained Earnings. Dividends Under the authority and declaration of the Board of Directors, the Company paid the following dividends during year-to-date 2021 and 2020: Ordinary Dividends Total Paid (per share) (in millions) 2021 First Quarter $ — $ — Second Quarter 0.15 42 Third Quarter 0.15 39 Total $ 0.30 $ 81 2020 First Quarter $ 0.30 $ 83 Second Quarter — — Third Quarter — — Total $ 0.30 $ 83 The Board of Directors suspended the quarterly cash dividend beginning in the second quarter of 2020 as a proactive measure to strengthen the Company's financial flexibility and manage through the COVID-19 pandemic. In March 2021, the Company's Board of Directors reinstated the annual dividend at $0.60 per share, beginning with the quarterly dividend paid in June 2021. In November 2021, the Company's Board of Directors declared the fourth quarter of 2021 ordinary dividend of $0.15 per share. |
Inventories
Inventories | 9 Months Ended |
Oct. 30, 2021 | |
Inventory, Net [Abstract] | |
Inventories | Inventories The following table provides details of inventories as of October 30, 2021, January 30, 2021 and October 31, 2020: October 30, January 30, October 31, (in millions) Finished Goods Merchandise $ 941 $ 410 $ 693 Raw Materials and Merchandise Components 208 162 190 Total Inventories $ 1,149 $ 572 $ 883 Inventories are principally valued at the lower of cost or net realizable value, on an average cost basis. |
Long-Lived Assets
Long-Lived Assets | 9 Months Ended |
Oct. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Long-Lived Assets | Long-Lived Assets The following table provides details of property and equipment, net as of October 30, 2021, January 30, 2021 and October 31, 2020: October 30, January 30, October 31, (in millions) Property and Equipment, at Cost $ 2,569 $ 2,412 $ 2,416 Accumulated Depreciation and Amortization (1,552) (1,395) (1,352) Property and Equipment, Net $ 1,017 $ 1,017 $ 1,064 Depreciation expense from continuing operations was $52 million and $48 million for the third quarter of 2021 and 2020, respectively. Depreciation expense from continuing operations was $152 million and $143 million for year-to-date 2021 and 2020, respectively. |
Equity Investments
Equity Investments | 9 Months Ended |
Oct. 30, 2021 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |
Equity Investments | Equity Investments Easton 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 $125 million as of October 30, 2021, $119 million as of January 30, 2021 and $125 million as of October 31, 2020, are recorded in Other Assets on the Consolidated Balance Sheets. Included in the Company’s Easton investments are equity interests in Easton Town Center, LLC (“ETC”) and Easton Gateway, LLC (“EG”), entities that own and develop commercial entertainment and shopping centers. The Company’s investments in ETC and EG are accounted for using the equity method of accounting. The Company has a majority financial interest in ETC and EG, but another unaffiliated member manages them, and certain significant decisions regarding ETC and EG require the consent of unaffiliated members in addition to the Company. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes is based on the current estimate of the annual effective tax rate and is adjusted as necessary for quarterly events. Due to the impacts of the COVID-19 pandemic, the income tax expense for the third quarter of 2020 was computed on a year-to-date effective tax rate. For the third quarter of 2021, the Company’s effective tax rate was 22.0% compared to 26.0% in the third quarter of 2020. The third quarter of 2021 rate was lower than the Company's combined estimated federal and state statutory rate primarily due to the resolution of certain tax matters. The third quarter of 2020 rate was generally consistent with the Company's combined federal and state statutory rate . For year-to-date 2021, the Company's effective tax rate was 23.7% compared to 16.9% year-to-date 2020. The year-to-date 2021 rate was lower than the Company's combined estimated federal and state statutory rate primarily due to the recognition of excess tax benefits recorded through the Consolidated Statements of Income (Loss) on share-based awards that vested year-to-date. The year-to-date 2020 rate was lower than the Company's combined estimated federal and state statutory rate primarily due to the resolution of certain tax matters, which resulted in a $50 million tax benefit. Income taxes paid were $73 million and $9 million for the third quarter of 2021 and 2020, respectively. Income taxes paid were $403 million and $31 million for year-to-date 2021 and 2020, respectively. |
Long-term Debt and Borrowing Fa
Long-term Debt and Borrowing Facilities | 9 Months Ended |
Oct. 30, 2021 | |
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 October 30, 2021, January 30, 2021 and October 31, 2020: October 30, January 30, October 31, (in millions) Senior Secured Debt with Subsidiary Guarantee $750 million, 6.875% Fixed Interest Rate Secured Notes due July 2025 ("2025 Secured Notes") $ — $ 740 $ 740 Senior Debt with Subsidiary Guarantee $1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) $ — $ 284 $ 284 $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) — 319 319 $320 million, 9.375% Fixed Interest Rate Notes due July 2025 ("2025 Notes") 316 493 493 $297 million, 6.694% Fixed Interest Rate Notes due January 2027 (“2027 Notes”) 280 278 277 $500 million, 5.250% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) 497 497 496 $500 million, 7.500% Fixed Interest Rate Notes due June 2029 ("2029 Notes") 489 488 488 $1 billion, 6.625% Fixed Interest Rate Notes due October 2030 ("2030 Notes") 989 988 988 $1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) 992 991 991 $700 million, 6.750% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) 694 694 694 Total Senior Debt with Subsidiary Guarantee $ 4,257 $ 5,032 $ 5,030 Senior Debt $350 million, 6.950% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) $ 349 $ 348 $ 348 $247 million, 7.600% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) 246 246 246 Total Senior Debt $ 595 $ 594 $ 594 Total Long-term Debt $ 4,852 $ 6,366 $ 6,364 Repurchases of Notes In September 2021, the Company completed the tender offers to purchase $270 million of its outstanding 2023 Notes and $180 million of its outstanding 2025 Notes for an aggregate purchase price of $532 million. Additionally, in October 2021, the Company redeemed the remaining $50 million of its outstanding 2023 Notes for $54 million. The Company recognized a pre-tax loss related to this extinguishment of debt of $89 million (after-tax loss of $68 million), which includes the write-offs of unamortized issuance costs. This loss is included in Other Loss in the 2021 Consolidated Statements of Income. In April 2021, the Company redeemed the remaining $285 million of its outstanding 2022 Notes and the $750 million of its outstanding 2025 Secured Notes. The Company recognized a pre-tax loss related to this extinguishment of debt of $105 million (after-tax loss of $80 million), which includes the write-offs of unamortized issuance costs. This loss is included in Other Loss in the year-to-date 2021 Consolidated Statement of Income. In October 2020, the Company completed tender offers to purchase $576 million of its outstanding 2022 Notes, $180 million of its outstanding 2023 Notes and $53 million of its outstanding 2037 Notes for $844 million. The Company used the proceeds from the 2030 Notes to fund the purchase price of the tender offers. Additionally, utilizing cash on hand, the Company redeemed the remaining $450 million of its outstanding 6.625% Fixed Interest Rate Notes due April 2021 (the "2021 Notes") for $463 million. The Company recognized a pre-tax loss related to this extinguishment of debt of $53 million (after-tax loss of $40 million), which includes the write-offs of unamortized issuance costs. This loss is included in Other Loss in the 2020 Consolidated Statements of Income (Loss). Asset-backed Revolving Credit Facility The Company and certain of the Company's 100% owned subsidiaries guarantee and pledge collateral to secure a revolving credit facility ("Credit Agreement"). In April 2020, the Company entered into an amendment and restatement of the Credit Agreement to convert the Company’s credit facility into an asset-backed revolving credit facility (“ABL Facility”), which allows borrowings and letters of credit in U.S. dollars or Canadian dollars. During the first quarter of 2020, in an abundance of caution and as a proactive measure in response to the COVID-19 pandemic, the Company elected to borrow $950 million from its revolving facility. This borrowing was repaid during the first quarter of 2020 upon completion of the April amendment. In August 2021, the Company entered into an amendment and restatement (“Amendment”) of the Credit Agreement. The Amendment reduced the aggregate commitments under the ABL Facility to $750 million, reduced the interest rates on outstanding borrowings by 50 basis points, removed the requirement to prepay outstanding amounts under the ABL Facility should the Company's consolidated cash balance exceed $350 million, extended the expiration date from August 2024 to August 2026 and released Victoria's Secret & Co. subsidiaries as guarantors, among other things. Availability under the ABL Facility is the lesser of (i) the borrowing base, determined primarily based on the Company's eligible U.S. and Canadian credit card receivables, accounts receivable, inventory and eligible real property, or (ii) the aggregate commitment. If at any time, the outstanding amount under the ABL Facility exceeds the lesser of (i) the borrowing base and (ii) the aggregate commitment, the Company is required to prepay the outstanding amounts under the ABL Facility to the extent of such excess. As of October 30, 2021, the Company's borrowing base was $1.033 billion. The ABL Facility supports the Company’s letter of credit program. The Company had $16 million of outstanding letters of credit as of October 30, 2021 that reduced its availability under the ABL Facility. As of October 30, 2021, the ABL Facility fees related to committed and unutilized amounts were 0.30% per annum, and the fees related to outstanding letters of credit were 1.25% per annum. In addition, the interest rate on outstanding U.S. dollar borrowings was the London Interbank Offered Rate plus 1.25% per annum. The interest rate on outstanding Canadian dollar-denominated borrowings was the Canadian Dollar Offered Rate plus 1.25% per annum. The ABL Facility requires the Company to maintain a fixed charge coverage ratio of not less than 1.00 to 1.00 during an event of default or any period commencing on any day when specified excess availability is less than the greater of (1) $70 million or (2) 10% of the maximum borrowing amount. As of October 30, 2021, the Company was not required to maintain this ratio. As of October 30, 2021, there were no borrowings outstanding under the ABL Facility. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Fair Value Measurements | Fair Value Measurements Cash and Cash Equivalents include cash on hand, deposits with financial institutions and highly liquid investments with original maturities of less than 90 days. The Company's Cash and Cash Equivalents are considered Level 1 fair value measurements as they are valued using unadjusted quoted prices in active markets for identical assets. The following table provides a summary of the principal value and estimated fair value of outstanding publicly traded debt as of October 30, 2021, January 30, 2021 and October 31, 2020: October 30, January 30, October 31, (in millions) Principal Value $ 4,915 $ 6,449 $ 6,449 Fair Value, Estimated (a) 5,720 7,243 6,678 _______________ (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 and accrued expenses approximate fair value because of their short maturity. |
Comprehensive Income
Comprehensive Income | 9 Months Ended |
Oct. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income | Comprehensive Income The following table provides the rollforward of accumulated other comprehensive income for year-to-date 2021: Foreign Currency Translation Cash Flow Hedges Accumulated Other Comprehensive Income (in millions) Balance as of January 30, 2021 $ 85 $ (2) $ 83 Other Comprehensive Income (Loss) Before Reclassifications 4 (2) 2 Amounts Reclassified from Accumulated Other Comprehensive Income — 3 3 Tax Effect — — — Current-period Other Comprehensive Income 4 1 5 Victoria's Secret Spin-Off (8) — (8) Balance as of October 30, 2021 $ 81 $ (1) $ 80 The following table provides the rollforward of accumulated other comprehensive income for year-to-date 2020: Foreign Currency Translation Cash Flow Hedges Accumulated Other Comprehensive Income (in millions) Balance as of February 1, 2020 $ 52 $ — $ 52 Other Comprehensive Income (Loss) Before Reclassifications (4) 2 (2) Amounts Reclassified from Accumulated Other Comprehensive Income — (2) (2) Tax Effect — — — Current-period Other Comprehensive Loss (4) — (4) Balance as of October 31, 2020 $ 48 $ — $ 48 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to various claims and contingencies related to lawsuits, taxes, insurance, regulatory and other matters arising out of the normal course of business. Actions filed against the Company from time to time include commercial, tort, intellectual property, customer, employment, data privacy, securities and other claims, including purported class action lawsuits. Management believes that the ultimate liability arising from such claims and contingencies, if any, is not likely to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. On May 19, 2020 and January 12, 2021, certain shareholders of the Company filed derivative lawsuits in the Court of Common Pleas for Franklin County, Ohio (subsequently removed to the United States District Court for the Southern District of Ohio) and the Delaware Court of Chancery, respectively, naming as defendants certain current and former directors and officers of the Company and alleging, among other things, breaches of fiduciary duty through asserted violations of law and failures to monitor workplace conduct (the “Lawsuits”). In addition, the Company also received litigation and books-and-records demands from certain other shareholders related to the same matters (together with the Lawsuits, the “Actions”). In July 2021, the Company announced the global settlement resolving the Actions. The settlement resolves all derivative claims that have been or could have been asserted in the Actions or that involve in any way the allegations referred to in the Actions and releases all such claims against the Company and past and present Company employees, officers and directors, among others. As part of the settlement, the Company has agreed to implement certain management and governance measures, including the maintenance of a Diversity, Equity, and Inclusion Council. Following the August 2, 2021 spin-off of Victoria’s Secret & Co., the settlement terms will apply to both the Company and Victoria’s Secret & Co. Each company has committed to invest $45 million over at least five years to fund the management and governance measures. The settlement is subject to approval of the United States District Court of the Southern District of Ohio. Lease Guarantees In connection with the spin-off of Victoria's Secret & Co., the Company has remaining contingent obligations of approximately $280 million related to lease payments under the current terms of noncancelable leases, primarily related to office space, expiring at various dates through 2037. In addition, in connection with the sale of La Senza in the fourth quarter of 2018, the Company has remaining contingent obligations of approximately $27 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 these businesses. The Company's reserves related to these obligations were not significant as of October 30, 2021. |
Share-based Compensation
Share-based Compensation | 9 Months Ended |
Oct. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation In connection with the spin-off of Victoria's Secret & Co. on August 2, 2021, the Company adjusted its outstanding share-based awards in accordance with the terms of the Employee Matters Agreement. Adjustments to the underlying shares and terms of outstanding restricted stock and stock options were made to preserve the intrinsic value of the awards immediately before the Separation. The adjustment of the underlying shares and exercise prices, as applicable, was determined using a ratio based on the relative values of the Company's pre-Distribution stock price and the Company's post-Distribution stock price. The outstanding awards continue to vest over their original vesting periods. The Company did not recognize any incremental compensation cost related to the adjustment of outstanding awards. Restricted Stock The following table provides the Company’s restricted stock activity for the year-to-date period ended October 30, 2021: Number of (in thousands) Unvested as of January 30, 2021 6,647 Converted to Victoria's Secret & Co. Shares (2,537) Spin-Off Related Adjustment 807 Granted 1,501 Vested (2,150) Cancelled (161) Unvested as of October 30, 2021 4,107 Stock Options The following table provides the Company’s stock option activity for the year-to-date period ended October 30, 2021: Number of (in thousands) Outstanding as of January 30, 2021 4,163 Converted to Victoria's Secret & Co. Shares (1,042) Spin-Off Related Adjustment 288 Granted 228 Exercised (1,861) Cancelled (607) Outstanding as of October 30, 2021 1,169 Options Exercisable as of October 30, 2021 915 |
Retirement Benefits
Retirement Benefits | 9 Months Ended |
Oct. 30, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement BenefitsThe Company previously sponsored a non-qualified supplemental retirement plan. The non-qualified plan was an unfunded plan, which provided benefits beyond the Internal Revenue Code limits for qualified defined contribution plans. On June 27, 2020, the Human Capital and Compensation Committee of the Board of Directors authorized the termination of the non-qualified plan. In July 2021, the Company made payments of $143 million for the final settlement of all its obligations and benefits payable under the non-qualified plan. Total expense recognized related to the non-qualified plan was not significant for any period presented. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Oct. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsSubsequent to October 30, 2021, the Company repurchased an additional 2.2 million shares of its common stock for $166 million under the July 2021 Program. |
Description of Business and B_2
Description of Business and Basis of Presentation (Policy) | 9 Months Ended |
Oct. 30, 2021 | |
Description Of Business And Basis Of Presentation [Abstract] | |
Description of Business | Description of Business Bath & Body Works, Inc. ("Bath & Body Works" or the "Company") is a specialty retailer of home fragrance products, body care, and soaps and sanitizers. Through the Bath & Body Works retail brand, the Company sells merchandise through company-operated specialty retail stores in the U.S. and Canada, and through its websites and other channels. The Company's international operations are primarily through franchise, license and wholesale partners. On August 2, 2021, the Company completed the spin-off of its Victoria's Secret business, which included the Victoria's Secret and PINK brands, into an independent publicly traded company. As a result, the operating results for the Victoria's Secret business through the date of the spin-off are reported in Income (Loss) from Discontinued Operations, Net of Tax in the Consolidated Statements of Income (Loss) for all periods presented. In addition, the related assets and liabilities are reported as Assets and Liabilities of Discontinued Operations on the Consolidated Balance Sheets. Unless otherwise noted, all amounts and disclosures included in the Notes to Consolidated Financial Statements reflect only the Company's continuing operations. For additional information, see Note 2, "Discontinued Operations." On August 2, 2021, in connection with the spin-off of the Victoria's Secret business discussed above, the Company changed its name from L Brands, Inc. to Bath & Body Works, Inc. Additionally, starting August 3, 2021, the Company's common stock began trading under the stock symbol "BBWI." |
Impacts of COVID-19 | Impacts of COVID-19 The coronavirus pandemic ("COVID-19") has created significant public health concerns as well as economic disruption, uncertainty and volatility. The Company's operations and financial performance have been materially impacted by the COVID-19 pandemic. In the first quarter of 2020, all the Company-operated stores were closed on March 17, 2020, but the Company was able to re-open the majority of its stores as of the end of the second quarter of 2020. The Direct business remained open for the duration of 2020. During 2020, the Company took prudent actions to manage expenses and to maintain its cash position and financial flexibility. |
Fiscal Year | Fiscal Year The Company’s fiscal year ends on the Saturday nearest to January 31. As used herein, “third quarter of 2021” and “third quarter of 2020” refer to the thirteen-week periods ended October 30, 2021 and October 31, 2020, respectively. “Year-to-date 2021” and “year-to-date 2020” refer to the thirty-nine-week periods ended October 30, 2021 and October 31, 2020, respectively. |
Basis of Consolidation | Basis of Consolidation The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company accounts for investments in unconsolidated entities where it exercises significant influence, but does not have control, using the equity method. Under the equity method of accounting, the Company recognizes its share of the investee's net income or loss. Losses are only recognized to the extent the Company has positive carrying value related to the investee. Carrying values are only reduced below zero if the Company has an obligation to provide funding to the investee. The Company’s share of net income or loss of all unconsolidated entities is included in Other 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. |
Segment Reporting | Segment ReportingThe Company operates as a single segment that includes all of its continuing operations, which is designed to enable customers to purchase its products through stores or digital channels. The Company previously had two reportable segments: Bath & Body Works and Victoria's Secret. The Victoria's Secret reportable segment was spun-off on August 2, 2021 and is now reported as discontinued operations for all periods through that date. |
Interim Financial Statements | Interim Financial Statements The Consolidated Financial Statements as of and for the periods ended October 30, 2021 and October 31, 2020 are unaudited and are presented pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained in the Company’s 2020 Annual Report on Form 10-K. In the opinion of management, the accompanying Consolidated Financial Statements reflect all adjustments that are of a normal recurring nature and necessary for a fair presentation of the results for the interim periods. |
Seasonality of Business | Seasonality of Business Due to the seasonal variations in the retail industry, the results of operations for the interim period are not necessarily indicative of the results expected for the full fiscal year. |
Restrictions Cash | Restricted Cash During 2020, the Company placed cash on deposit with certain financial institutions as collateral for their lending commitments to certain former Victoria's Secret subsidiaries. These deposits totaled $30 million and $128 million as of January 30, 2021 and October 31, 2020, respectively, and were recorded in Other Assets on the Consolidated Balance Sheets. During the second quarter of 2021, these lending commitments were terminated which released the restrictions on this cash. Accordingly, the balance was reclassified to Cash and Cash Equivalents during the second quarter of 2021. |
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. The earnings of the Company's Canadian operations are subject to exchange rate risk as substantially all the 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. Amounts are reclassified from accumulated other comprehensive income (loss) upon sale of the hedged merchandise to the customer. These gains and losses are recognized in Costs of Goods Sold, Buying and Occupancy in the Consolidated Statements of Income (Loss). The fair value of designated cash flow hedges is not significant for any period presented. |
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. 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 determines the required allowance for expected credit losses using information such as customer credit history and financial condition. Amounts are recorded to the allowance when it is determined that expected credit losses may occur. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. Actual results may differ from those estimates, and the Company revises its estimates and assumptions as new information becomes available. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The Company did not adopt any new accounting standards during the third quarter of 2021 that had a material impact on the Company's consolidated results of operations, financial position or cash flows. In addition, there are no new accounting standards not yet adopted that are expected to have a material impact on the Company's consolidated results of operations, financial position or cash flows. |
Inventory | Inventories are principally valued at the lower of cost or net realizable value, on an average cost basis. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Discontinued Operations in Financial Statements | The following table summarizes the significant line items included in Income (Loss) from Discontinued Operations, Net of Tax in the Consolidated Statements of Income (Loss) for the third quarter and year-to-date 2021 and 2020: Third Quarter Year-to-Date 2021 2020 2021 2020 (in millions) Net Sales $ 25 $ 1,353 $ 3,194 $ 3,313 Costs of Goods Sold, Buying and Occupancy (14) (856) (1,841) (2,643) General, Administrative and Store Operating Expenses (a) (83) (352) (975) (1,098) Interest Expense — (1) (2) (5) Other Income (Loss) — 1 (1) (1) Income (Loss) from Discontinued Operations Before Income Taxes (72) 145 375 (434) Provision (Benefit) for Income Taxes 17 10 119 (110) Income (Loss) from Discontinued Operations, Net of Tax $ (89) $ 135 $ 256 $ (324) _______________ (a) Includes Separation-related expenses of $76 million and $104 million for the third quarter and year-to-date 2021, respectively. Prior to the third quarter of 2021, these costs were reported in the Other category under the Company's previous segment reporting. January 30, October 31, (in millions) Cash and Cash Equivalents $ 335 $ 189 Accounts Receivable, Net 121 135 Inventories 701 981 Other 82 73 Current Assets of Discontinued Operations 1,239 1,378 Property and Equipment, Net 1,078 1,167 Operating Lease Assets 1,590 1,683 Trade Names 246 246 Deferred Income Taxes 11 11 Other Assets 56 57 Other Assets of Discontinued Operations $ 2,981 $ 3,164 Accounts Payable $ 338 $ 548 Accrued Expenses and Other 730 608 Current Debt — 11 Current Operating Lease Liabilities 421 443 Income Taxes 9 2 Current Liabilities of Discontinued Operations 1,498 1,612 Deferred Income Taxes 93 73 Long-term Debt — 87 Long-term Operating Lease Liabilities 1,553 1,709 Other Long-term Liabilities 21 24 Other Long-term Liabilities of Discontinued Operations $ 1,667 $ 1,893 Year-to-Date 2021 2020 (in millions) Depreciation of Long-Lived Assets $ 158 $ 250 Share-based Compensation Expense 15 20 Victoria's Secret Asset Impairment Charges — 214 Gain from Victoria's Secret Hong Kong Store Closure and Lease Termination — (39) Gain Related to Formation of Victoria's Secret U.K. Joint Venture — (30) Capital Expenditures (66) (111) Net Repayments of Victoria's Secret Foreign Facilities — (57) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Disaggregation of Revenue | The following table provides a disaggregation of Net Sales for the third quarter and year-to-date 2021 and 2020: Third Quarter Year-to-Date 2021 2020 2021 2020 (in millions) Stores - U.S. and Canada $ 1,238 $ 1,202 $ 3,518 $ 2,304 Direct - U.S. and Canada 369 446 1,126 1,254 International (a) 74 54 210 158 Total Net Sales $ 1,681 $ 1,702 $ 4,854 $ 3,716 _______________ (a) Results include royalties associated with franchised store and wholesale sales. |
Earnings (Loss) Per Share and_2
Earnings (Loss) Per Share and Shareholders’ Equity (Deficit) (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Earnings Per Share And Shareholders' Equity [Abstract] | |
Shares Utilized for the Calculation of Basic and Diluted Earnings Per Share | The following table provides the weighted-average shares utilized for the calculation of basic and diluted earnings (loss) per share for the third quarter and year-to-date 2021 and 2020: Third Quarter Year-to-Date 2021 2020 2021 2020 (in millions) Common Shares 278 287 285 286 Treasury Shares (15) (8) (13) (8) Basic Shares 263 279 272 278 Effect of Dilutive Restricted Stock and Options 4 4 5 3 Diluted Shares 267 283 277 281 Anti-dilutive Options and Awards (a) 1 4 1 5 _______________ |
Schedule of Repurchase of Common Stock | The Company repurchased the following shares of its common stock during year-to-date 2021: Repurchase Program Amount Shares Amount Average Stock Price (in millions) (in thousands) (in millions) March 2021 (a) $ 500 6,996 $ 464 $ 66.30 July 2021 (a) $ 1,500 10,000 $ 730 $ 73.01 July 2021 (b) 5,510 $ 365 $ 66.21 _______________ (a) Reflects repurchases of L Brands, Inc. common stock prior to the August 2, 2021 spin-off of Victoria's Secret & Co. (b) Reflects repurchases of Bath & Body Works, Inc. common stock subsequent to the August 2, 2021 spin-off of Victoria's Secret & Co. |
Schedule of Dividends Paid | Under the authority and declaration of the Board of Directors, the Company paid the following dividends during year-to-date 2021 and 2020: Ordinary Dividends Total Paid (per share) (in millions) 2021 First Quarter $ — $ — Second Quarter 0.15 42 Third Quarter 0.15 39 Total $ 0.30 $ 81 2020 First Quarter $ 0.30 $ 83 Second Quarter — — Third Quarter — — Total $ 0.30 $ 83 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Inventory, Net [Abstract] | |
Summary of Inventories | The following table provides details of inventories as of October 30, 2021, January 30, 2021 and October 31, 2020: October 30, January 30, October 31, (in millions) Finished Goods Merchandise $ 941 $ 410 $ 693 Raw Materials and Merchandise Components 208 162 190 Total Inventories $ 1,149 $ 572 $ 883 |
Long-Lived Assets (Tables)
Long-Lived Assets (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property And Equipment, Net | The following table provides details of property and equipment, net as of October 30, 2021, January 30, 2021 and October 31, 2020: October 30, January 30, October 31, (in millions) Property and Equipment, at Cost $ 2,569 $ 2,412 $ 2,416 Accumulated Depreciation and Amortization (1,552) (1,395) (1,352) Property and Equipment, Net $ 1,017 $ 1,017 $ 1,064 |
Long-term Debt and Borrowing _2
Long-term Debt and Borrowing Facilities (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
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 October 30, 2021, January 30, 2021 and October 31, 2020: October 30, January 30, October 31, (in millions) Senior Secured Debt with Subsidiary Guarantee $750 million, 6.875% Fixed Interest Rate Secured Notes due July 2025 ("2025 Secured Notes") $ — $ 740 $ 740 Senior Debt with Subsidiary Guarantee $1 billion, 5.625% Fixed Interest Rate Notes due February 2022 (“2022 Notes”) $ — $ 284 $ 284 $500 million, 5.625% Fixed Interest Rate Notes due October 2023 (“2023 Notes”) — 319 319 $320 million, 9.375% Fixed Interest Rate Notes due July 2025 ("2025 Notes") 316 493 493 $297 million, 6.694% Fixed Interest Rate Notes due January 2027 (“2027 Notes”) 280 278 277 $500 million, 5.250% Fixed Interest Rate Notes due February 2028 (“2028 Notes”) 497 497 496 $500 million, 7.500% Fixed Interest Rate Notes due June 2029 ("2029 Notes") 489 488 488 $1 billion, 6.625% Fixed Interest Rate Notes due October 2030 ("2030 Notes") 989 988 988 $1 billion, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”) 992 991 991 $700 million, 6.750% Fixed Interest Rate Notes due July 2036 (“2036 Notes”) 694 694 694 Total Senior Debt with Subsidiary Guarantee $ 4,257 $ 5,032 $ 5,030 Senior Debt $350 million, 6.950% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”) $ 349 $ 348 $ 348 $247 million, 7.600% Fixed Interest Rate Notes due July 2037 (“2037 Notes”) 246 246 246 Total Senior Debt $ 595 $ 594 $ 594 Total Long-term Debt $ 4,852 $ 6,366 $ 6,364 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Carrying Value and Fair Value of Long-Term Debt, Disclosure | The following table provides a summary of the principal value and estimated fair value of outstanding publicly traded debt as of October 30, 2021, January 30, 2021 and October 31, 2020: October 30, January 30, October 31, (in millions) Principal Value $ 4,915 $ 6,449 $ 6,449 Fair Value, Estimated (a) 5,720 7,243 6,678 _______________ (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. |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | |
Components of Accumulated Other Comprehensive Income | The following table provides the rollforward of accumulated other comprehensive income for year-to-date 2021: Foreign Currency Translation Cash Flow Hedges Accumulated Other Comprehensive Income (in millions) Balance as of January 30, 2021 $ 85 $ (2) $ 83 Other Comprehensive Income (Loss) Before Reclassifications 4 (2) 2 Amounts Reclassified from Accumulated Other Comprehensive Income — 3 3 Tax Effect — — — Current-period Other Comprehensive Income 4 1 5 Victoria's Secret Spin-Off (8) — (8) Balance as of October 30, 2021 $ 81 $ (1) $ 80 The following table provides the rollforward of accumulated other comprehensive income for year-to-date 2020: Foreign Currency Translation Cash Flow Hedges Accumulated Other Comprehensive Income (in millions) Balance as of February 1, 2020 $ 52 $ — $ 52 Other Comprehensive Income (Loss) Before Reclassifications (4) 2 (2) Amounts Reclassified from Accumulated Other Comprehensive Income — (2) (2) Tax Effect — — — Current-period Other Comprehensive Loss (4) — (4) Balance as of October 31, 2020 $ 48 $ — $ 48 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Activity | The following table provides the Company’s restricted stock activity for the year-to-date period ended October 30, 2021: Number of (in thousands) Unvested as of January 30, 2021 6,647 Converted to Victoria's Secret & Co. Shares (2,537) Spin-Off Related Adjustment 807 Granted 1,501 Vested (2,150) Cancelled (161) Unvested as of October 30, 2021 4,107 |
Schedule of Stock Option Activity | The following table provides the Company’s stock option activity for the year-to-date period ended October 30, 2021: Number of (in thousands) Outstanding as of January 30, 2021 4,163 Converted to Victoria's Secret & Co. Shares (1,042) Spin-Off Related Adjustment 288 Granted 228 Exercised (1,861) Cancelled (607) Outstanding as of October 30, 2021 1,169 Options Exercisable as of October 30, 2021 915 |
Description of Business and B_3
Description of Business and Basis of Presentation (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Oct. 31, 2020 |
Other Assets | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Restricted cash | $ 30 | $ 128 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) $ in Millions | Aug. 02, 2021USD ($)period | Oct. 30, 2021USD ($) | Oct. 30, 2021USD ($) | Oct. 31, 2020USD ($) | Aug. 03, 2021 | Jul. 31, 2021USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Payments related to spinoff | $ 362 | $ 0 | ||||
Proceeds from Spin-Off of Victoria's Secret & Co. | $ 976 | |||||
Spinoff transaction, reduction in retained earnings | $ 175 | 175 | ||||
Spinoff transaction, reduction net accumulated other comprehensive income | 8 | $ 8 | ||||
Transition services agreements, number of extension periods | period | 2 | |||||
Transition services agreements, extension period term | 1 year | |||||
Transition service consideration | 20 | |||||
Transition service cost | 24 | |||||
Domestic transportation services, initial term | 3 years | |||||
Domestic transportation services consideration | 18 | |||||
Minimum | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Domestic transportation services, termination written notice term | 18 months | |||||
Maximum | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Transition services agreements, general service term | 2 years | |||||
Transition services agreements, information technology service term | 3 years | |||||
Domestic transportation services, termination written notice term | 36 months | |||||
Victoria's Secret & Co. 4.625% Note Due July 2029 | Loans Payable | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Debt instrument, face amount | $ 600 | |||||
Fixed interest rate | 4.625% | |||||
Proceeds from issuance of debt | $ 592 | |||||
VSCO Credit Facilities | Term Loan Facility | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Credit agreement, borrowing capacity | 400 | |||||
Proceeds from lines of credit | 384 | |||||
Proceeds from line of credit, gross | 400 | |||||
VSCO Credit Facilities | Revolving Credit Facility | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Credit agreement, borrowing capacity | $ 750 | |||||
Victoria's Secret Co. | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Ownership interest | 0.00% | |||||
Victoria's Secret Co. | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Common stock distributed, percentage | 100.00% | |||||
Spinoff transaction, number of shares received per common stock exchanged | 0.33 | |||||
Cash and cash equivalents transferred to Victoria's Secret & Co. from subsidiaries | $ 282 | |||||
Payments related to spinoff | $ 80 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Income (Loss) from Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Income (Loss) from Discontinued Operations, Net of Tax | $ (89) | $ 135 | $ 256 | $ (324) | |
Victoria's Secret | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net Sales | 25 | 1,353 | 3,194 | 3,313 | |
Costs of Goods Sold, Buying and Occupancy | (14) | (856) | (1,841) | (2,643) | |
General, Administrative and Store Operating Expenses | [1] | (83) | (352) | (975) | (1,098) |
Interest Expense | 0 | (1) | (2) | (5) | |
Other Income (Loss) | 0 | 1 | (1) | (1) | |
Income (Loss) from Discontinued Operations Before Income Taxes | (72) | 145 | 375 | (434) | |
Provision (Benefit) for Income Taxes | 17 | 10 | 119 | (110) | |
Income (Loss) from Discontinued Operations, Net of Tax | (89) | $ 135 | 256 | $ (324) | |
Separation related expense | $ 76 | $ 104 | |||
[1] | Includes Separation-related expenses of $76 million and $104 million for the third quarter and year-to-date 2021, respectively. Prior to the third quarter of 2021, these costs were reported in the Other category under the Company's previous segment reporting. |
Discontinued Operations - Sch_2
Discontinued Operations - Schedule of Balance Sheet from Discontinued Operations (Details) - USD ($) $ in Millions | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Current Assets of Discontinued Operations | $ 0 | $ 1,239 | $ 1,378 |
Other Assets | 151 | 175 | 279 |
Other Assets of Discontinued Operations | 0 | 2,981 | 3,164 |
Current Liabilities of Discontinued Operations | 0 | 1,498 | 1,612 |
Other Long-term Liabilities | 280 | 290 | 164 |
Other Long-term Liabilities of Discontinued Operations | $ 0 | 1,667 | 1,893 |
Victoria's Secret | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and Cash Equivalents | 335 | 189 | |
Accounts Receivable, Net | 121 | 135 | |
Inventories | 701 | 981 | |
Other | 82 | 73 | |
Current Assets of Discontinued Operations | 1,239 | 1,378 | |
Property and Equipment, Net | 1,078 | 1,167 | |
Operating Lease Assets | 1,590 | 1,683 | |
Trade Names | 246 | 246 | |
Deferred Income Taxes | 11 | 11 | |
Other Assets | 56 | 57 | |
Other Assets of Discontinued Operations | 2,981 | 3,164 | |
Accounts Payable | 338 | 548 | |
Accrued Expenses and Other | 730 | 608 | |
Current Debt | 0 | 11 | |
Current Operating Lease Liabilities | 421 | 443 | |
Income Taxes | 9 | 2 | |
Current Liabilities of Discontinued Operations | 1,498 | 1,612 | |
Deferred Income Taxes | 93 | 73 | |
Long-term Debt | 0 | 87 | |
Long-term Operating Lease Liabilities | 1,553 | 1,709 | |
Other Long-term Liabilities of Discontinued Operations | 21 | 24 | |
Other Long-term Liabilities of Discontinued Operations | $ 1,667 | $ 1,893 |
Discontinued Operations - Sch_3
Discontinued Operations - Schedule of Cash Flow Statement (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Share-based Compensation Expense | [1] | $ 38 | $ 39 |
Victoria's Secret Asset Impairment Charges | [1] | 0 | 214 |
Gain from Victoria's Secret Hong Kong Store Closure and Lease Termination | [1] | 0 | (39) |
Gain Related to Formation of Victoria's Secret U.K. Joint Venture | [1] | 0 | (30) |
Foreign Facilities | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net Repayments of Victoria's Secret Foreign Facilities | [1] | 0 | (57) |
Victoria's Secret | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Depreciation of Long-Lived Assets | 158 | 250 | |
Share-based Compensation Expense | 15 | 20 | |
Victoria's Secret Asset Impairment Charges | 0 | 214 | |
Gain from Victoria's Secret Hong Kong Store Closure and Lease Termination | 0 | (39) | |
Gain Related to Formation of Victoria's Secret U.K. Joint Venture | 0 | (30) | |
Capital Expenditures | (66) | (111) | |
Victoria's Secret | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Foreign Facilities | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net Repayments of Victoria's Secret Foreign Facilities | $ 0 | $ (57) | |
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | Jan. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||||
Accounts receivable, after allowance for credit loss | $ 86 | $ 82 | $ 86 | $ 82 | $ 51 |
Deferred revenue | 123 | 98 | 123 | 98 | $ 115 |
Revenue recognized | 66 | ||||
Net Sales | 1,681 | 1,702 | $ 4,854 | 3,716 | |
Minimum | |||||
Disaggregation of Revenue [Line Items] | |||||
Account receivable, payment term | 45 days | ||||
Maximum | |||||
Disaggregation of Revenue [Line Items] | |||||
Account receivable, payment term | 75 days | ||||
Outside of the U.S. | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | $ 159 | $ 134 | $ 397 | $ 308 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | $ 1,681 | $ 1,702 | $ 4,854 | $ 3,716 | |
Stores - U.S. and Canada | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 1,238 | 1,202 | 3,518 | 2,304 | |
Direct - U.S. and Canada | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 369 | 446 | 1,126 | 1,254 | |
Bath & Body Works International | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | [1] | $ 74 | $ 54 | $ 210 | $ 158 |
[1] | Results include royalties associated with franchised store and wholesale sales. |
Restructuring Activities (Detai
Restructuring Activities (Details) $ in Millions | 9 Months Ended |
Oct. 31, 2020USD ($) | |
General and Administrative Expense | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | $ 30 |
Earnings (Loss) Per Share and_3
Earnings (Loss) Per Share and Shareholders’ Equity (Deficit) - Shares Utilized for the Calculation of Basic and Diluted Earnings per Share (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | ||
Earnings Per Share And Shareholders' Equity [Abstract] | |||||
Common Shares (in shares) | 278 | 287 | 285 | 286 | |
Treasury Shares (in shares) | (15) | (8) | (13) | (8) | |
Basic Shares (in shares) | 263 | 279 | 272 | 278 | |
Effect of Dilutive Restricted Stock and Options (in shares) | 4 | 4 | 5 | 3 | |
Diluted Shares (in shares) | 267 | 283 | 277 | 281 | |
Anti-dilutive Options and Awards (in shares) | [1] | 1 | 4 | 1 | 5 |
[1] | These options and awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. |
Earnings (Loss) Per Share and_4
Earnings (Loss) Per Share and Shareholders’ Equity (Deficit) - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Dec. 03, 2021 | Nov. 30, 2021 | Jul. 31, 2021 | Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | Jun. 30, 2021 | May 31, 2021 | Mar. 31, 2021 | ||||
Amount Repurchased | $ 365 | $ 1,559 | |||||||||||
Dividends payable (in USD per share) | $ 0.60 | ||||||||||||
Dividends per share (in USD per share) | $ 0.15 | $ 0 | $ 0.30 | $ 0.30 | |||||||||
Accounts Payable | |||||||||||||
Payable under repurchase agreements | $ 15 | $ 15 | |||||||||||
Par Value | |||||||||||||
Treasury share retirement | 8 | ||||||||||||
Paid-In Capital | |||||||||||||
Treasury share retirement | 18 | 50 | |||||||||||
Retained Earnings (Accumulated Deficit) | |||||||||||||
Treasury share retirement | 344 | 1,037 | |||||||||||
Subsequent Event | |||||||||||||
Dividends per share (in USD per share) | $ 0.15 | ||||||||||||
March 2021 | |||||||||||||
Amount Authorized | 500 | [1] | $ 500 | [1] | $ 500 | ||||||||
Remaining authorized repurchase amount | $ 36 | ||||||||||||
Shares repurchased (in shares) | [1] | 6,996 | |||||||||||
Amount Repurchased | [1] | $ 464 | |||||||||||
March 2018 Repurchase Program | |||||||||||||
Remaining authorized repurchase amount | 79 | ||||||||||||
Share Repurchase 10b5-1 Plan | |||||||||||||
Amount Authorized | $ 250 | $ 250 | |||||||||||
July 2021 | |||||||||||||
Amount Authorized | $ 1,500 | 1,500 | [1],[2] | 1,500 | [1],[2] | ||||||||
Remaining authorized repurchase amount | $ 405 | $ 405 | |||||||||||
Shares repurchased (in shares) | 10,000 | ||||||||||||
Amount Repurchased | $ 730 | ||||||||||||
Treasury share retirement (in shares) | 16,000 | ||||||||||||
July 2021 | Subsequent Event | |||||||||||||
Shares repurchased (in shares) | 2,200 | ||||||||||||
Amount Repurchased | $ 166 | ||||||||||||
[1] | Reflects repurchases of L Brands, Inc. common stock prior to the August 2, 2021 spin-off of Victoria's Secret & Co. | ||||||||||||
[2] | Reflects repurchases of Bath & Body Works, Inc. common stock subsequent to the August 2, 2021 spin-off of Victoria's Secret & Co. |
Earnings (Loss) Per Share and_5
Earnings (Loss) Per Share and Shareholders’ Equity (Deficit) - Schedule of Repurchase of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2021 | Oct. 30, 2021 | Oct. 30, 2021 | Mar. 31, 2021 | ||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Amount Repurchased | $ 365 | $ 1,559 | |||||
March 2021 | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Amount Authorized | 500 | [1] | $ 500 | [1] | $ 500 | ||
Shares Repurchased (in shares) | [1] | 6,996 | |||||
Amount Repurchased | [1] | $ 464 | |||||
Average Stock Price (in USD per share) | [1] | $ 66.30 | |||||
July 2021 | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Amount Authorized | $ 1,500 | $ 1,500 | [1],[2] | $ 1,500 | [1],[2] | ||
Shares Repurchased (in shares) | 10,000 | ||||||
Amount Repurchased | $ 730 | ||||||
July 2021 Repurchase Program, Prior to Spin-off of Victoria's Secret & Co. | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Shares Repurchased (in shares) | [1] | 10,000 | |||||
Amount Repurchased | [1] | $ 730 | |||||
Average Stock Price (in USD per share) | [1] | $ 73.01 | |||||
July 2021 Repurchase Program, after Spin-off of Victoria's Secret & Co. | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Shares Repurchased (in shares) | [2] | 5,510 | |||||
Amount Repurchased | [2] | $ 365 | |||||
Average Stock Price (in USD per share) | [2] | $ 66.21 | |||||
[1] | Reflects repurchases of L Brands, Inc. common stock prior to the August 2, 2021 spin-off of Victoria's Secret & Co. | ||||||
[2] | Reflects repurchases of Bath & Body Works, Inc. common stock subsequent to the August 2, 2021 spin-off of Victoria's Secret & Co. |
Earnings (Loss) Per Share and_6
Earnings (Loss) Per Share and Shareholders’ Equity (Deficit) - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Oct. 30, 2021 | Jul. 31, 2021 | May 01, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |||
Earnings Per Share And Shareholders' Equity [Abstract] | ||||||||||
Ordinary Dividends | $ 0.15 | $ 0.15 | $ 0 | $ 0 | $ 0 | $ 0.30 | $ 0.30 | $ 0.30 | ||
Total Paid | $ 39 | $ 42 | $ 0 | $ 0 | $ 0 | $ 83 | $ 81 | [1] | $ 83 | [1] |
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Inventory, Net [Abstract] | |||
Finished Goods Merchandise | $ 941 | $ 410 | $ 693 |
Raw Materials and Merchandise Components | 208 | 162 | 190 |
Total Inventories | $ 1,149 | $ 572 | $ 883 |
Long-Lived Assets - Summary of
Long-Lived Assets - Summary of Property And Equipment, Net (Details) - USD ($) $ in Millions | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Property, Plant and Equipment [Abstract] | |||
Property and Equipment, at Cost | $ 2,569 | $ 2,412 | $ 2,416 |
Accumulated Depreciation and Amortization | (1,552) | (1,395) | (1,352) |
Property and Equipment, Net | $ 1,017 | $ 1,017 | $ 1,064 |
Long-Lived Assets - Narrative (
Long-Lived Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | ||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Depreciation of Long-Lived Assets | [1] | $ 310 | $ 393 | ||
Continuing Operations | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Depreciation of Long-Lived Assets | $ 52 | $ 48 | $ 152 | $ 143 | |
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
Equity Investments (Details)
Equity Investments (Details) - USD ($) $ in Millions | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Easton Investment | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 125 | $ 119 | $ 125 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 22.00% | 26.00% | 23.70% | 16.90% |
Tax adjustments, settlements, and unusual provisions | $ 50 | |||
Income taxes paid | $ 73 | $ 9 | $ 403 | $ 31 |
Long-term Debt and Borrowing _3
Long-term Debt and Borrowing Facilities - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Millions | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Long-term debt | $ 4,852 | $ 6,366 | $ 6,364 |
With Subsidiary Guarantee | 6.875% Fixed Interest Rate Secured Notes due July 2025 | |||
Long-term debt | 0 | 740 | 740 |
Debt instrument, face amount | $ 750 | ||
Fixed interest rate | 6.875% | ||
With Subsidiary Guarantee | Fixed Rate 5.625% Notes Due February 2022 | |||
Long-term debt | $ 0 | 284 | 284 |
Debt instrument, face amount | $ 1,000 | ||
Fixed interest rate | 5.625% | ||
With Subsidiary Guarantee | Fixed Rate 5.625% Notes Due October 2023 | |||
Long-term debt | $ 0 | 319 | 319 |
Debt instrument, face amount | $ 500 | ||
Fixed interest rate | 5.625% | ||
With Subsidiary Guarantee | 9.375% Fixed Interest Rate Notes due July 2025 | |||
Long-term debt | $ 316 | 493 | 493 |
Debt instrument, face amount | $ 320 | ||
Fixed interest rate | 9.375% | ||
With Subsidiary Guarantee | Fixed Rate 6.694% Notes Due January 2027 | |||
Long-term debt | $ 280 | 278 | 277 |
Debt instrument, face amount | $ 297 | ||
Fixed interest rate | 6.694% | ||
With Subsidiary Guarantee | Fixed Rate 5.25% Notes Due February 2028 | |||
Long-term debt | $ 497 | 497 | 496 |
Debt instrument, face amount | $ 500 | ||
Fixed interest rate | 5.25% | ||
With Subsidiary Guarantee | Fixed Rate 7.5% Notes Due June 2029 | |||
Long-term debt | $ 489 | 488 | 488 |
Debt instrument, face amount | $ 500 | ||
Fixed interest rate | 7.50% | ||
With Subsidiary Guarantee | Fixed Rate 6.625% Notes Due October 2030 | |||
Long-term debt | $ 989 | 988 | 988 |
Debt instrument, face amount | $ 1,000 | ||
Fixed interest rate | 6.625% | ||
With Subsidiary Guarantee | Fixed Rate 6.875% Notes Due November 2035 | |||
Long-term debt | $ 992 | 991 | 991 |
Debt instrument, face amount | $ 1,000 | ||
Fixed interest rate | 6.875% | ||
With Subsidiary Guarantee | Fixed Rate 6.75% Notes Due July 2036 | |||
Long-term debt | $ 694 | 694 | 694 |
Debt instrument, face amount | $ 700 | ||
Fixed interest rate | 6.75% | ||
With Subsidiary Guarantee | Senior Debt Obligations | |||
Long-term debt | $ 4,257 | 5,032 | 5,030 |
Without Subsidiary Guarantee | |||
Long-term debt | 595 | 594 | 594 |
Without Subsidiary Guarantee | Fixed Rate 6.95% Debentures Due March 2033 | |||
Long-term debt | 349 | 348 | 348 |
Debt instrument, face amount | $ 350 | ||
Fixed interest rate | 6.95% | ||
Without Subsidiary Guarantee | Fixed Rate 7.60% Notes Due July 2037 | |||
Long-term debt | $ 246 | $ 246 | $ 246 |
Debt instrument, face amount | $ 247 | ||
Fixed interest rate | 7.60% |
Long-term Debt and Borrowing _4
Long-term Debt and Borrowing Facilities - Repurchase of Notes (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Oct. 31, 2021 | Apr. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 30, 2021 | Oct. 31, 2020 | Sep. 30, 2021 | ||||
Repayment of debt | [1] | $ 1,716 | $ 1,307 | |||||||
Gain (loss) on repurchase of debt instrument | $ (53) | $ (195) | [1] | (53) | [1] | |||||
Gain (loss) on extinguishment of debt, net of tax | 40 | |||||||||
2022 Notes, 2023 Notes, and 2037 Notes | ||||||||||
Debt instrument, repurchase amount | 844 | 844 | ||||||||
Fixed Rate 7.60% Notes Due July 2037 | ||||||||||
Debt instrument, repurchased face amount | 53 | 53 | ||||||||
With Subsidiary Guarantee | ||||||||||
Gain (loss) on repurchase of debt instrument | $ (89) | |||||||||
Gain (loss) on extinguishment of debt, net of tax | $ 68 | |||||||||
With Subsidiary Guarantee | 2023 Notes and 2025 Notes | ||||||||||
Debt instrument, repurchase amount | $ 532 | |||||||||
With Subsidiary Guarantee | 2023 Notes | ||||||||||
Debt instrument, repurchased face amount | 180 | 180 | 270 | |||||||
Debt instrument, redeemed amount | $ 50 | |||||||||
Repayment of debt | $ 54 | |||||||||
Fixed interest rate | 5.625% | 5.625% | ||||||||
With Subsidiary Guarantee | 2025 Notes | ||||||||||
Debt instrument, repurchased face amount | $ 180 | |||||||||
Fixed interest rate | 9.375% | 9.375% | ||||||||
With Subsidiary Guarantee | 2022 Notes and 2025 Secured Notes | ||||||||||
Gain (loss) on repurchase of debt instrument | $ (105) | |||||||||
Gain (loss) on extinguishment of debt, net of tax | (80) | |||||||||
With Subsidiary Guarantee | Fixed Rate 5.625% Notes Due February 2022 | ||||||||||
Debt instrument, repurchased face amount | 285 | 576 | $ 576 | |||||||
Fixed interest rate | 5.625% | 5.625% | ||||||||
With Subsidiary Guarantee | 6.875% Fixed Interest Rate Secured Notes due July 2025 | ||||||||||
Debt instrument, repurchased face amount | $ 750 | |||||||||
Fixed interest rate | 6.875% | 6.875% | ||||||||
With Subsidiary Guarantee | Fixed Rate 6.625% Notes Due April 2021 | ||||||||||
Debt instrument, redeemed amount | 450 | |||||||||
Repayment of debt | $ 463 | |||||||||
Fixed interest rate | 6.625% | 6.625% | ||||||||
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
Long-term Debt and Borrowing _5
Long-term Debt and Borrowing Facilities - Asset-Backed Revolving Credit Facility (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2021USD ($) | Oct. 30, 2021USD ($) | May 02, 2020USD ($) | Oct. 30, 2021USD ($) | Oct. 31, 2020USD ($) | ||
Revolving Credit Expiring August 2024 | ||||||
Repayments of lines of credit | [1] | $ 0 | $ 950,000,000 | |||
Revolving Credit Facility Expiring August 2026 | ||||||
Outstanding borrowings on lines of credit | $ 0 | 0 | ||||
Letter of Credit | ||||||
Letters of credit outstanding, amount | 16,000,000 | 16,000,000 | ||||
Revolving Credit Facility | Revolving Credit Expiring August 2024 | ||||||
Proceeds from lines of credit | $ 950,000,000 | |||||
Repayments of lines of credit | $ 950,000,000 | |||||
Revolving Credit Facility | Revolving Credit Facility Expiring August 2026 | ||||||
Credit agreement, borrowing capacity | $ 750,000,000 | |||||
Interest rate reduction | 0.0050 | |||||
Line of credit financial covenant, consolidated cash balance | $ 350,000,000 | |||||
Line of credit facility, current borrowing capacity | $ 1,033,000,000 | $ 1,033,000,000 | ||||
Revolving facility commitment fee percentage, unused capacity | 0.30% | |||||
Revolving facility current credit fees percentage rate, letters of credit | 1.25% | |||||
Debt instrument, basis spread on variable rate | 1.25% | |||||
Revolving facility covenant fixed charge coverage ratio | 1 | |||||
Line of credit financial covenant, maximum borrowing amount | $ 70,000,000 | |||||
Line of credit financial covenant, percent of maximum borrowing amount | 10.00% | 10.00% | ||||
[1] | The cash flows related to discontinued operations have not been segregated. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value of Long-Term Debt, Disclosure (Details) - USD ($) $ in Millions | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 | |
Reported Value Measurement | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Debt, fair value disclosure | $ 4,915 | $ 6,449 | $ 6,449 | |
Estimate of Fair Value Measurement | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Debt, fair value disclosure | [1] | $ 5,720 | $ 7,243 | $ 6,678 |
[1] | The estimated fair value of the Company’s publicly traded debt is based on reported transaction prices, which are considered Level 2 inputs in accordance with ASC 820, Fair Value Measurement . The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange. |
Comprehensive Income - Componen
Comprehensive Income - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | $ 83 | $ 52 | ||
Other Comprehensive Income (Loss) Before Reclassifications | 2 | (2) | ||
Amounts Reclassified from Accumulated Other Comprehensive Income | 3 | (2) | ||
Tax Effect | 0 | 0 | ||
Total Other Comprehensive Income (Loss), Net of Tax | $ 1 | $ (1) | 5 | (4) |
Victoria's Secret Spin-Off | (8) | |||
Accumulated Other Comprehensive Income (Loss), Ending Balance | 80 | 48 | 80 | 48 |
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | 85 | 52 | ||
Other Comprehensive Income (Loss) Before Reclassifications | 4 | (4) | ||
Amounts Reclassified from Accumulated Other Comprehensive Income | 0 | 0 | ||
Tax Effect | 0 | 0 | ||
Total Other Comprehensive Income (Loss), Net of Tax | 4 | (4) | ||
Victoria's Secret Spin-Off | (8) | |||
Accumulated Other Comprehensive Income (Loss), Ending Balance | 81 | 48 | 81 | 48 |
Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | (2) | 0 | ||
Other Comprehensive Income (Loss) Before Reclassifications | (2) | 2 | ||
Amounts Reclassified from Accumulated Other Comprehensive Income | 3 | (2) | ||
Tax Effect | 0 | 0 | ||
Total Other Comprehensive Income (Loss), Net of Tax | 1 | 0 | ||
Victoria's Secret Spin-Off | 0 | |||
Accumulated Other Comprehensive Income (Loss), Ending Balance | $ (1) | $ 0 | $ (1) | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Aug. 02, 2021 | Oct. 30, 2021 |
Lease Agreements | ||
Lease guarantees remaining after disposition of certain businesses | $ 280 | |
Management And Governance Investment | ||
Long-term investment, commitment | $ 45 | |
Commitment term (at least) | 5 years | |
LaSenza | Lease Agreements | ||
Lease guarantees remaining after disposition of certain businesses | $ 27 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Restricted Stock Activity (Details) - Restricted Stock shares in Thousands | 9 Months Ended |
Oct. 30, 2021shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance (in shares) | 6,647 |
Converted to Victoria's Secret & Co. Shares (in shares) | (2,537) |
Spin-Off Related Adjustment (in shares) | 807 |
Granted (in shares) | 1,501 |
Vested (in shares) | (2,150) |
Cancelled (in shares) | (161) |
Ending balance (in shares) | 4,107 |
Share-based Compensation - Sc_2
Share-based Compensation - Schedule of Stock Option Activity (Details) shares in Thousands | 9 Months Ended |
Oct. 30, 2021shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance (in shares) | 4,163 |
Converted to Victoria's Secret & Co. Shares (in shares) | 1,042 |
Spin-Off Related Adjustment (in shares) | 288 |
Granted (in shares) | 228 |
Exercised (in shares) | (1,861) |
Cancelled (in shares) | (607) |
Ending balance (in shares) | 1,169 |
Exercisable (in shares) | 915 |
Retirement Benefits (Details)
Retirement Benefits (Details) $ in Millions | 1 Months Ended |
Jul. 31, 2021USD ($) | |
Nonqualified Plan | Supplemental Employee Retirement Plan | |
Retirement Benefits Disclosure [Line Items] | |
Payment for final settlement under non-qualified plan | $ 143 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Dec. 03, 2021 | Jul. 31, 2021 | Oct. 30, 2021 | Oct. 30, 2021 | |
Subsequent Event [Line Items] | ||||
Amount repurchased | $ 365 | $ 1,559 | ||
July 2021 | ||||
Subsequent Event [Line Items] | ||||
Shares repurchased (in shares) | 10 | |||
Amount repurchased | $ 730 | |||
Subsequent Event | July 2021 | ||||
Subsequent Event [Line Items] | ||||
Shares repurchased (in shares) | 2.2 | |||
Amount repurchased | $ 166 |