Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Feb. 01, 2020 | Mar. 10, 2020 | Aug. 02, 2019 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 1, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-15059 | ||
Entity Registrant Name | NORDSTROM, INC. | ||
Entity Incorporation, State or Country Code | WA | ||
Entity Tax Identification Number | 91-0515058 | ||
Entity Address, Address Line One | 1617 Sixth Avenue | ||
Entity Address, City or Town | Seattle | ||
Entity Address, State or Province | WA | ||
Entity Address, Postal Zip Code | 98101 | ||
City Area Code | 206 | ||
Local Phone Number | 628-2111 | ||
Title of 12(b) Security | Common stock, without par value | ||
Trading Symbol | JWN | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3.8 | ||
Entity Common Stock, Shares Outstanding | 156,346,167 | ||
Documents Incorporated by Reference [Text Block] | Portions of the Proxy Statement for the 2020 Annual Meeting of Shareholders, scheduled to be held on May 20, 2020 , are incorporated into Part III. | ||
Entity Central Index Key | 0000072333 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --02-01 |
Consolidated Statements Of Earn
Consolidated Statements Of Earnings - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 15,132 | $ 15,480 | $ 15,137 |
Credit card revenues, net | 392 | 380 | 341 |
Total revenues | 15,524 | 15,860 | 15,478 |
Cost of sales and related buying and occupancy costs | (9,932) | (10,155) | (9,890) |
Selling, general and administrative expenses | (4,808) | (4,868) | (4,662) |
Earnings before interest and income taxes | 784 | 837 | 926 |
Interest expense, net | (102) | (104) | (136) |
Earnings before income taxes | 682 | 733 | 790 |
Income tax expense | (186) | (169) | (353) |
Net earnings | $ 496 | $ 564 | $ 437 |
Earnings per share: | |||
Basic (in dollars per share) | $ 3.20 | $ 3.37 | $ 2.62 |
Diluted (in dollars per share) | $ 3.18 | $ 3.32 | $ 2.59 |
Weighted-average shares outstanding: | |||
Basic (in shares) | 155.2 | 167.3 | 166.8 |
Diluted (in shares) | 156.1 | 170 | 168.9 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 496 | $ 564 | $ 437 |
Postretirement plan adjustments, net of tax of $9, ($5) and $2 | (27) | 14 | (6) |
Foreign currency translation adjustment | (4) | (17) | 20 |
Comprehensive net earnings | $ 465 | $ 561 | $ 451 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Earnings (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Postretirement plan adjustments, tax | $ 9 | $ (5) | $ 2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Assets | ||
Cash and cash equivalents | $ 853 | $ 957 |
Accounts receivable, net | 179 | 148 |
Merchandise inventories | 1,920 | 1,978 |
Prepaid expenses and other | 278 | 291 |
Total current assets | 3,230 | 3,374 |
Land, property and equipment, net | 4,179 | 3,921 |
Operating lease right-of-use assets | 1,774 | 0 |
Goodwill | 249 | 249 |
Other assets | 305 | 342 |
Total assets | 9,737 | 7,886 |
Liabilities and Shareholders’ Equity | ||
Accounts payable | 1,576 | 1,469 |
Accrued salaries, wages and related benefits | 510 | 580 |
Operating Lease, Liability, Current | 244 | 0 |
Other current liabilities | 1,190 | 1,324 |
Current portion of long-term debt | 0 | 8 |
Total current liabilities | 3,520 | 3,381 |
Long-term debt, net | 2,676 | 2,677 |
Deferred property incentives, net | 4 | 457 |
Operating Lease, Liability, Noncurrent | 1,875 | 0 |
Other liabilities | 683 | 498 |
Commitments and contingencies (Note 11) | ||
Shareholders’ equity: | ||
Common stock, no par value: 1,000 shares authorized; 155.6 and 157.6 shares issued and outstanding | 3,129 | 3,048 |
Accumulated deficit | (2,082) | (2,138) |
Accumulated other comprehensive loss | (68) | (37) |
Total shareholders’ equity | 979 | 873 |
Total liabilities and shareholders’ equity | $ 9,737 | $ 7,886 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Shareholders’ equity | ||
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 155.6 | 157.6 |
Common stock, shares outstanding | 155.6 | 157.6 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common stock [Member] | Accumulated deficit [Member] | Accumulated other comprehensive loss [Member] |
Common stock, balance, beginning of year at Jan. 28, 2017 | $ 2,707 | |||
Common stock | ||||
Issuance of common stock under stock compensation plans | 39 | |||
Stock-based compensation | 70 | |||
Common stock, balance, end of year at Feb. 03, 2018 | 2,816 | |||
Accumulated deficit, balance, beginning of year at Jan. 28, 2017 | $ (1,794) | |||
Accumulated deficit | ||||
Cumulative effect of adopted accounting standards | 0 | $ 0 | ||
Net earnings | $ 437 | 437 | ||
Dividends | (247) | |||
Repurchase of common stock | (206) | |||
Accumulated deficit, balance, end of year at Feb. 03, 2018 | (1,810) | |||
Accumulated other comprehensive loss, balance, beginning of year at Jan. 28, 2017 | (43) | |||
Accumulated other comprehensive loss | ||||
Cumulative effect of adopted accounting standards | 0 | 0 | ||
Other comprehensive (loss) income | 14 | |||
Accumulated other comprehensive loss, balance, end of year at Feb. 03, 2018 | (29) | |||
Total at Feb. 03, 2018 | $ 977 | |||
Accumulated other comprehensive loss | ||||
Dividends per share | $ 1.48 | |||
Issuance of common stock under stock compensation plans | 163 | |||
Stock-based compensation | 69 | |||
Common stock, balance, end of year at Feb. 02, 2019 | $ 3,048 | 3,048 | ||
Accumulated deficit | ||||
Cumulative effect of adopted accounting standards | 60 | (5) | ||
Net earnings | 564 | 564 | ||
Dividends | (250) | |||
Repurchase of common stock | (702) | |||
Accumulated deficit, balance, end of year at Feb. 02, 2019 | (2,138) | (2,138) | ||
Accumulated other comprehensive loss | ||||
Cumulative effect of adopted accounting standards | 60 | (5) | ||
Other comprehensive (loss) income | (3) | |||
Accumulated other comprehensive loss, balance, end of year at Feb. 02, 2019 | (37) | (37) | ||
Total at Feb. 02, 2019 | $ 873 | |||
Accumulated other comprehensive loss | ||||
Dividends per share | $ 1.48 | |||
Issuance of common stock under stock compensation plans | 29 | |||
Stock-based compensation | 52 | |||
Common stock, balance, end of year at Feb. 01, 2020 | $ 3,129 | $ 3,129 | ||
Accumulated deficit | ||||
Cumulative effect of adopted accounting standards | (25) | 0 | ||
Net earnings | 496 | 496 | ||
Dividends | (229) | |||
Repurchase of common stock | (186) | |||
Accumulated deficit, balance, end of year at Feb. 01, 2020 | (2,082) | (2,082) | ||
Accumulated other comprehensive loss | ||||
Cumulative effect of adopted accounting standards | $ (25) | 0 | ||
Other comprehensive (loss) income | (31) | |||
Accumulated other comprehensive loss, balance, end of year at Feb. 01, 2020 | (68) | $ (68) | ||
Total at Feb. 01, 2020 | $ 979 | |||
Accumulated other comprehensive loss | ||||
Dividends per share | $ 1.48 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Operating Activities | |||
Net earnings | $ 496 | $ 564 | $ 437 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization expenses and other, net | 671 | ||
Depreciation and amortization expenses and other, net | 661 | 669 | 666 |
Amortization of deferred property incentives | 0 | (75) | (82) |
Non-cash Lease Expense | 183 | 0 | 0 |
Deferred income taxes, net | 52 | (34) | 11 |
Stock-based compensation expense | 69 | 90 | 77 |
Change in operating assets and liabilities: | |||
Accounts receivable | 82 | (4) | 1 |
Proceeds from sale of credit card receivables originated at Nordstrom | 0 | 0 | 39 |
Merchandise inventories | 30 | 15 | (62) |
Prepaid expenses and other assets | (38) | (8) | (21) |
Accounts payable | 98 | 12 | 77 |
Accrued salaries, wages and related benefits | (71) | 1 | 121 |
Other current liabilities | (94) | 15 | 48 |
Deferred property incentives | 6 | 53 | 64 |
Increase (Decrease) in Lease Liability | (259) | 0 | 0 |
Other liabilities | 11 | (2) | 24 |
Net cash provided by operating activities | 1,236 | 1,296 | 1,400 |
Investing Activities | |||
Capital expenditures | (935) | (654) | (731) |
Proceeds from sale of credit card receivables originated at third parties | 0 | 0 | 16 |
Other, net | 26 | 1 | 31 |
Net cash used in investing activities | (909) | (653) | (684) |
Financing Activities | |||
Proceeds from long-term borrowings, net of discounts | 499 | 0 | 635 |
Principal payments on long-term borrowings | (500) | (56) | (661) |
Increase (decrease) in cash book overdrafts | 8 | 0 | (55) |
Cash dividends paid | (229) | (250) | (247) |
Payments for repurchase of common stock | (210) | (678) | (211) |
Proceeds from issuances under stock compensation plans | 29 | 163 | 39 |
Tax withholding on share-based awards | (17) | (20) | (7) |
Other, net | (11) | (26) | (35) |
Net cash used in financing activities | (431) | (867) | (542) |
Net (decrease) increase in cash and cash equivalents | (104) | (224) | 174 |
Cash and cash equivalents at beginning of year | 957 | 1,181 | 1,007 |
Cash and cash equivalents at end of year | 853 | 957 | 1,181 |
Cash paid during the year for: | |||
Income taxes, net of refunds | 178 | 280 | 363 |
Interest, net of capitalized interest | $ 111 | $ 118 | $ 143 |
Nature Of Operations And Summar
Nature Of Operations And Summary Of Significant Accounting Policies | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Nature Of Operations And Summary Of Significant Accounting Policies | NOTE 1: NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company Founded in 1901 as a retail shoe business in Seattle, Washington, Nordstrom, Inc. is now a leading fashion retailer that offers customers an extensive selection of high-quality fashion brands focused on apparel, shoes, cosmetics and accessories for women, men, young adults and children. This breadth of merchandise allows us to serve a wide range of customers who appreciate quality fashion and a superior shopping experience. We offer brand-name and private label merchandise through multiple retail businesses, including 110 Nordstrom U.S. FLS and Nordstrom.com, six Canada FLS, 248 U.S. and Canadian Nordstrom Rack stores, NRHL, three Jeffrey boutiques, two Last Chance clearance stores, six Trunk Club clubhouses and TrunkClub.com, and five Nordstrom Locals. Our stores are located in 40 states in the U.S., three provinces in Canada and Puerto Rico. Fiscal Year We operate on a 52/53-week fiscal year ending on the Saturday closest to January 31st. References to 2019 and all years except 2017 within this document are based on a 52-week fiscal year, while 2017 is based on a 53-week fiscal year. Principles of Consolidation The Consolidated Financial Statements include the balances of Nordstrom, Inc. and its subsidiaries. All intercompany transactions and balances are eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities during the reporting period. Uncertainties regarding such estimates and assumptions are inherent in the preparation of financial statements and actual results may differ from these estimates and assumptions. Our most significant accounting judgments and estimates include leases, revenue recognition, inventory valuation, long-lived asset recoverability and income taxes. Subsequent Events Effective March 17, 2020, we announced the temporary closure of our stores in the U.S. and Canada for two weeks, including our FLS, Nordstrom Rack stores, Trunk Club clubhouses and Jeffrey boutiques in response to the increased impact from novel coronavirus (COVID-19). We continue to serve customers through our apps and online at Nordstrom.com, Nordstromrack.com, HauteLook and Trunk Club, including digital styling, online order pickup and curbside services at our FLS. While this is expected to be temporary, the current circumstances are dynamic and the impacts of COVID-19 on our business operations, including the duration and impact on overall customer demand, cannot be reasonably estimated at this time and we anticipate this may have a material adverse impact on our business, results of operations, financial position and cash flows in 2020. As of February 1, 2020 , our existing cash and cash equivalents on-hand were $853 and had $800 available on our Revolver, with an option to increase the Revolver by up to $200 , to a total of $1,000 (see Note 9: Debt and Credit Facilities ). As a precautionary measure, to increase our cash position and preserve financial flexibility in light of current uncertainty resulting from the COVID-19 outbreak, we drew down $800 on our Revolver in March 2020. Revenue During the first quarter of 2018, we adopted the Revenue Standard, using the modified retrospective method. Results for reporting periods beginning in the first quarter of 2018 are presented under the Revenue Standard while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605 — Revenue Recognition . Upon adoption, we recorded a net cumulative effect adjustment of $55 which decreased beginning accumulated deficit. Net Sales We recognize sales revenue net of estimated returns and excluding sales taxes. Revenue from sales to customers shipped from our Supply Chain Network facilities, stores and directly from our vendors (“shipped revenues”), which includes shipping revenue when applicable, is recognized at shipping point, the point in time where control has transferred to the customer. Costs to ship orders to customers are expensed as a fulfillment activity at shipping point, commissions from sales at our Full-Price stores are expensed at the point of sale and both are recorded in SG&A expenses. Prior to 2018, shipped revenues were recognized upon estimated receipt by the customer and we recorded an estimated in-transit allowance for orders shipped prior to a period’s end, but not yet received by the customer. We reduce sales and cost of sales by an estimate of customer merchandise returns, which is calculated based on historical return patterns, and record a sales return allowance and an estimated returns asset. Our sales return allowance is classified in other current liabilities and our estimated returns asset, calculated based on the cost of merchandise sold, is classified in prepaid expenses and other on the Consolidated Balance Sheet. Due to the seasonality of our business, these balances typically increase when higher sales occur in the last month of a period, such as the Anniversary Sale, which usually occurs at the end of the second quarter, and decrease in the following period. Prior to 2018, the estimated cost of merchandise returned was netted with our sales return allowance in other current liabilities. Loyalty Program We evolved our customer loyalty program with the launch of The Nordy Club in October 2018, which incorporates a traditional point system and the favorite benefits of our previous program, while providing customers exclusive access to products and events, enhanced services, personalized experiences and more convenient ways to shop. Customers accumulate points based on their level of spending and type of participation. Upon reaching certain point thresholds, customers receive Nordstrom Notes, which can be redeemed for goods or services offered at Nordstrom FLS, Nordstrom.com, Nordstrom Rack and NRHL. Nordstrom cardmembers can also earn rewards at Trunk Club. The Nordy Club member benefits will vary based on the level of customer spend, and include Bonus Points days and shopping and fashion events. We offer customers access to a variety of payment products and services, including a selection of Nordstrom-branded Visa® credit cards in the U.S. and Canada, as well as a Nordstrom-branded private label credit card for Nordstrom purchases. When customers use a Nordstrom-branded credit or debit card, they also participate in The Nordy Club and receive additional benefits, which can vary depending on the level of spend, including early access to the Anniversary Sale, Nordstrom to You (an in-home stylist) and incremental accumulation of points toward Nordstrom Notes. As our customers earn points and Nordstrom Notes in The Nordy Club, a portion of underlying sales revenue is deferred based on an estimated stand-alone selling price of points, Nordstrom Notes and other loyalty benefits, such as alterations. We recognize the revenue and related cost of sale when the Nordstrom Notes are ultimately redeemed and reduce our contract liability. We include the deferred revenue in other current liabilities on the Consolidated Balance Sheet. We record breakage revenue of unused points and unredeemed Nordstrom Notes based on expected customer redemption. We estimate, based on historical usage, that approximately 8% of Nordstrom Notes and approximately 16% of points will be unredeemed. Other benefits of the loyalty program, including shopping and fashion events, are recorded in SG&A expenses as these are not a material right of the program. As of February 1, 2020 and February 2, 2019 , our outstanding performance obligation for The Nordy Club, which consists primarily of unredeemed points and Nordstrom Notes at retail value under the Revenue Standard was $162 and $159 . Almost all Nordstrom Notes are redeemed within approximately nine months of issuance. Prior to 2018, we estimated the net cost of Nordstrom Notes to be issued and redeemed and recorded this cost as rewards points were accumulated. This cost, as well as reimbursed alterations, was recorded in cost of sales as we provided customers with products and services for these rewards. Credit Card Revenues, net Although the primary purpose of offering our credit cards is to foster greater customer loyalty and drive more sales, we also receive credit card revenue through our program agreement with TD, whereby TD is the exclusive issuer of our consumer credit cards and we perform account servicing functions. We completed the sale of a substantial majority of our U.S. Visa and private label credit card portfolio to TD in 2015, and in November 2017, we sold the remaining balances to TD, which consisted of employee credit card receivables for the U.S. Visa and Nordstrom private label credit cards (see Note 4: Credit Card Receivable Transaction ). Credit card revenues, net include our portion of the ongoing credit card revenue, net of credit losses, pursuant to our program agreement with TD. In 2017, we also recorded asset amortization and deferred revenue recognition associated with the assets and liabilities recorded as part of the initial transaction to sell our U.S. Visa and private label credit card portfolio to TD. Upon adoption of the Revenue Standard, the remaining unamortized balances of the investment in contract asset and deferred revenue associated with the sale of the credit card receivables were eliminated as part of a cumulative-effect adjustment, reducing the opening balance of accumulated deficit for 2018. As a result, the asset amortization and deferred revenue recognition are no longer recorded in credit card revenues, net. Prior to 2018, the investment in contract asset was classified in prepaid expenses and other and other assets, while the deferred revenue was classified in other current liabilities and other liabilities on the Consolidated Balance Sheet. Gift Cards We record deferred revenue from the sale of gift cards at the time of purchase. As gift cards are redeemed, we recognize revenue and reduce our contract liability. Although our gift cards do not have an expiration date, we include this deferred revenue in other current liabilities on the Consolidated Balance Sheet as customers can redeem gift cards at any time. As of February 1, 2020 and February 2, 2019 , our outstanding performance obligation for unredeemed gift cards was $414 and $389 . Almost all gift cards are redeemed within two years of issuance. We record breakage revenue on unused gift cards based on expected customer redemption. We estimate, based on historical usage, that 2% will be unredeemed and recognized as revenue. Breakage income was $17 and $14 in 2019 and 2018 . Prior to 2018, gift card breakage was recorded in SG&A expenses and was estimated based on when redemption was considered remote. Breakage income was $16 in 2017 . Cost of Sales Cost of sales primarily includes the purchase and manufacturing costs of inventory sold (net of vendor allowances) and in-bound freight expense. Buying and Occupancy Costs Buying costs consist primarily of compensation and other costs incurred by our merchandising and product development groups. Occupancy costs include rent, depreciation, property taxes and facility operating costs of our retail, corporate center and Supply Chain Network facilities. Selling, General and Administrative Expenses SG&A expenses consist primarily of compensation and benefit costs, marketing, supply chain and technology. Estimated Non-recurring Charge We recognized an Estimated Non-recurring Charge of $72 , or $49 net of tax, in 2018, resulting from some delinquent Nordstrom credit card accounts being charged higher interest in error. Less than 4% of Nordstrom cardmembers received a cash refund or credit to outstanding balances, with most receiving less than one hundred dollars. We recorded an estimated charge representing our costs through 2018, which were comprised primarily of amounts we have refunded to impacted cardmembers. In 2018, the Estimated Non-recurring Charge increased our SG&A expenses on our Consolidated Statement of Earnings and other current liabilities on our Consolidated Balance Sheet. Advertising Advertising production costs for internet, magazines, store events and other media are expensed the first time the advertisement is run. Online marketing costs are expensed when incurred. Total advertising expenses, net of vendor allowances, of $299 , $246 and $261 in 2019 , 2018 and 2017 were included in SG&A expenses. Vendor Allowances We receive allowances from merchandise vendors for cosmetic expenses, purchase price adjustments, advertising programs and various other expenses. Allowances for cosmetic expenses are recorded in SG&A expenses as a reduction of the related costs when incurred. Purchase price adjustments are recorded as a reduction of cost of sales at the point they have been earned and the related merchandise has been marked down or sold. Allowances for advertising programs and other expenses are recorded in SG&A expenses as a reduction of the related costs when incurred. Vendor allowances earned are as follows: Fiscal year 2019 2018 2017 Cosmetic expenses $140 $149 $159 Purchase price adjustments 171 180 184 Advertising 101 115 107 Other 6 6 7 Total vendor allowances $418 $450 $457 Shipping and Handling Costs Our shipping and handling costs include payments to third-party shippers and costs to hold, move and prepare merchandise for shipment. These costs do not include in-bound freight to our Supply Chain Network facilities, which we include in the cost of our inventory. Shipping and handling costs of $627 , $589 and $523 in 2019 , 2018 and 2017 were included in SG&A expenses. Stock-Based Compensation In May 2019, our shareholders approved the adoption of the 2019 Plan, which replaced the 2002 Plan and the 2010 Plan. The 2019 Plan authorizes the grant of stock options, PSUs, RSUs, stock appreciation rights and both restricted and unrestricted shares of common stock to employees and nonemployee directors. We grant stock-based awards under our 2019 Plan, and employees may purchase our stock at a discount under our ESPP. We predominantly recognize stock-based compensation expense related to stock-based awards at their estimated grant date fair value, recorded on a straight-line basis over the requisite service period. Compensation expense for certain award holders is accelerated based upon age and years of service. The total compensation expense is reduced by actual forfeitures as they occur over the vesting period of the awards. We estimate the grant date fair value of stock options using the Binomial Lattice option valuation model. The fair value of RSUs are determined based on the number of RSUs granted and the quoted price of our common stock on the date of grant, less the estimated present value of dividends over the vesting period. PSUs granted are classified as equity and the fair value is determined based on the number of PSUs granted and the quoted price of our common stock on the date of grant, less the estimated present value of dividends over the vesting period. Issuance of common stock under stock compensation plans on the Consolidated Statements of Shareholders’ Equity includes proceeds from our common stock option exercises and purchases of shares under the ESPP, while stock-based compensation primarily includes stock-based compensation expense for our common stock options, RSUs and PSUs partially offset by shares withheld for taxes on RSUs. New Store Opening Costs Non-capital expenditures associated with opening new stores, including marketing expenses, relocation expenses and occupancy costs, are charged to expense as incurred. These costs are included in both buying and occupancy costs and SG&A, according to their nature as disclosed above. Income Taxes We use the asset and liability method of accounting for income taxes. Using this method, deferred tax assets and liabilities are recorded based on differences between the financial reporting and tax basis of assets and liabilities and for operating loss and tax credit carryforwards. The deferred tax assets and liabilities are calculated using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. We routinely evaluate the likelihood of realizing the benefit of our deferred tax assets and may record a valuation allowance if, based on all available evidence, it is determined that some portion of the tax benefit will not be realized. We regularly evaluate the likelihood of realizing the benefit for income tax positions we have taken in various federal, state and foreign filings by considering all relevant facts, circumstances and information available. If we believe it is more likely than not that our position will be sustained, we recognize a benefit at the largest amount that we believe is cumulatively greater than 50% likely to be realized. Interest and penalties related to income tax matters are classified as a component of income tax expense. Income taxes require significant management judgment regarding applicable statutes and their related interpretation, the status of various income tax audits and our particular facts and circumstances. Also, as audits are completed or statutes of limitations lapse, it may be necessary to record adjustments to our taxes payable, deferred taxes, tax reserves or income tax expense. In December 2017, the Tax Act was signed into law. Among numerous other provisions, the Tax Act significantly revised the U.S. federal corporate income tax by reducing the statutory rate from 35% to 21% . In accordance with SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act , we made a reasonable estimate of the Tax Act’s impact and provisionally recorded this estimate in our 2017 results. As of February 2, 2019, we completed our accounting for the impacts of the Tax Act, resulting in no material changes to previously recorded provisional amounts. In February 2018, as a result of adopting ASU No. 2018-02, Income Statement — Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, we reclassified $5 of tax impacts from accumulated other comprehensive loss to accumulated deficit, decreasing the beginning accumulated deficit for the year ended February 2, 2019. Comprehensive Net Earnings Comprehensive net earnings consist of net earnings and other gains and losses affecting equity that are excluded from net earnings. These consist of postretirement plan adjustments, net of related income tax effects, and foreign currency translation adjustments. Cash Equivalents Cash equivalents are short-term investments with a maturity of three months or less from the date of purchase and are carried at cost, which approximates fair value. At the end of 2019 and 2018 , checks not yet presented for payment drawn in excess of our bank deposit balances were $110 and $102 and included within accounts payable on our Consolidated Balance Sheets. Accounts Receivable Accounts receivable, net primarily includes receivables from non-Nordstrom-branded credit and debit cards and, in 2019, developer reimbursements as a result of the adoption of the Lease Standard. Merchandise Inventories Merchandise inventories are generally stated at the lower of cost or market value using the retail inventory method. Under the retail method, the valuation of inventories is determined by applying a calculated cost-to-retail ratio to the retail value of ending inventory. The value of our inventory on the balance sheet is then reduced by a charge to cost of sales for retail inventory markdowns taken on the selling price. To determine if the retail value of our inventory should be marked down, we consider current and anticipated demand, customer preferences, age of the merchandise and fashion trends. We record obsolescence based on historical trends and specific identification. We take physical inventory counts and adjust our records accordingly. Following each physical inventory cycle, we adjust shrinkage to actual results and an estimate is recorded for shrinkage from the count date to year end. We evaluate and determine our estimated shrinkage rate, which is based on a percentage of sales, using the most recent physical inventory and historical results. Leases During the first quarter of 2019, we adopted the Lease Standard using the transition method provided in ASU 2018-11. As a result, reporting periods beginning in the first quarter of 2019 are presented under the Lease Standard while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 840 — Leases . Upon adoption of the Lease Standard, we record leases, which consist primarily of operating leases, on the Consolidated Balance Sheet as operating lease ROU assets, current portion of operating lease liabilities and non-current operating lease liabilities. Operating lease liabilities are initially recognized based on the net present value of the fixed portion of our lease and common area maintenance payments from lease commencement through the lease term. To calculate the net present value, we apply an incremental borrowing rate. The incremental borrowing rate is determined using a portfolio approach based on the rate of interest we would pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. We use quoted interest rates obtained from financial institutions as an input to derive our incremental borrowing rate as the discount rate for the lease. We recognize ROU assets based on operating lease liabilities reduced by property incentives. We test ROU assets for impairment in the same manner as long-lived assets, and exclude the related operating lease liability and operating lease payments in our analysis. We elected the following practical expedients permitted under the Lease Standard: • Upon adoption, we did not reassess our prior conclusions about lease identification, lease classification or initial direct costs, and we did not use hindsight for leases existing at adoption date. • We do not record leases with an initial term of 12 months or less on the balance sheet but continue to expense them on a straight-line basis over the lease term. • We combine lease and non-lease components. We lease the land, buildings, or land and buildings for many of our stores, office facilities and Supply Chain Network facilities. We also lease equipment and have service contracts including transportation agreements and warehouse agreements where we control identified assets such as vehicles, warehouse space and equipment and therefore represent embedded leases under the Lease Standard. Before 2019, we recognized minimum rent expense, net of developer reimbursements, on a straight-line basis over the minimum lease term from the time we controlled the leased property. For scheduled rent escalation clauses during the lease terms, we recorded minimum rent expense on a straight-line basis over the terms of the leases, with the adjustments accrued as current and non-current deferred rent and included in other current liabilities and other liabilities on our Consolidated Balance Sheet. Contingent rental payments, typically based on a percentage of sales, were recognized in rent expense primarily in occupancy costs when payment of the contingent rent was probable. Land, Property and Equipment Land is recorded at historical cost, while property and equipment are recorded at cost less accumulated depreciation and amortization. Capitalized software includes the costs of developing or obtaining internal-use software, including external direct costs of materials and services and internal payroll costs related to the software project. We capitalize interest on construction in progress and software projects during the period in which expenditures have been made, activities are in progress to prepare the asset for its intended use and actual interest costs are being incurred. Depreciation and amortization are computed using the straight-line method over the asset’s estimated useful life, which is determined by asset category as follows: Asset Life (in years) Buildings and improvements 5 – 40 Store fixtures and equipment 3 – 15 Leasehold improvements 5 – 40 Capitalized software 2 – 7 Leasehold improvements and leased property and equipment that are purchased at the inception of the lease, or during the lease term, are amortized over the shorter of the lease term or the asset life. Lease terms include the fixed, non-cancellable term of a lease, plus any renewal periods determined to be reasonably assured. We receive contributions from vendors for the construction of certain fixtures in our stores. Goodwill Goodwill represents the excess of acquisition cost over the fair value of the related net assets acquired and is not subject to amortization. We review our goodwill annually for impairment or when circumstances indicate that the carrying value may exceed the fair value. As a result of early adopting ASU 2017-04 in the fourth quarter of 2019 (see the Recent Accounting Pronouncements section), we perform this evaluation at the reporting unit level, all within our Retail segment, comprised of the principal business units within our Retail segment, through the application of a quantitative fair value test. We compare the carrying value of the reporting unit to its estimated fair value, which is based on the expected present value of future cash flows (income approach), comparable public companies and acquisitions (market approach), or a combination of both. If fair value is lower than the carrying value, an impairment charge is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The following summarizes our goodwill activity for the past three fiscal years: Goodwill Balance at January 28, 2017 $238 Additions — Balance at February 3, 2018 238 Additions 11 Balance at February 2, 2019 249 Additions — Balance at February 1, 2020 $249 Prior to the fourth quarter of 2019, we allocated goodwill to three reporting units, including Trunk Club, NRHL and Nordstrom U.S. We reviewed Trunk Club and NRHL goodwill as of the first day of the fourth quarter and Nordstrom U.S. goodwill as of the first day of the first quarter. We are integrating Trunk Club into our Full-Price business to enable a superior experience for customers, drive more business and gain efficiencies. As a result of this strategic change, Trunk Club is no longer a separate reporting unit and our Trunk Club and Nordstrom U.S. goodwill is now allocated to our Full-Price operating segment as of the fourth quarter of 2019. In connection with this change, we voluntarily elected to change our testing date to the first day of the fourth quarter, which better aligns with the timing of our long-term planning process. This accounting policy change is preferable to management, is not material, is not expected to produce different impairment results and did not result in a goodwill impairment charge in 2019. We continue to make investments in evolving the customer experience, with a strong emphasis on integrating technology across our business. To support these efforts, we acquired two retail technology companies during 2018 and recorded $11 of goodwill from these acquisitions. Therefore, in 2018, we allocated this goodwill to our Nordstrom U.S. reporting unit, as the investments primarily benefit Nordstrom FLS and Nordstrom.com. Long-Lived Assets When facts and circumstances indicate that the carrying values of certain long-lived assets, including buildings, equipment, amortizable intangible and ROU assets, may be impaired, we perform an evaluation of recoverability by comparing the carrying values of the net assets to their related projected undiscounted future cash flows, in addition to other quantitative and qualitative analyses. Land, property and equipment are grouped at the lowest level at which there are identifiable cash flows when assessing impairment, while cash flows for our retail store assets are identified at the individual store level. Amortization expense for acquired intangibles was $7 , $11 and $11 in 2019 , 2018 and 2017 . In 2019 , as a result of the Trunk Club integration, we fully impaired the remaining acquired Trunk Club intangible asset and recorded a loss of $11 . No future amortization expense will be recorded. Self-Insurance We retain a portion of the risk for certain losses related to employee health and welfare, workers’ compensation and other liability claims. Liabilities associated with these losses include undiscounted estimates of both losses reported and losses incurred but not yet reported. We estimate our ultimate cost using an actuarially-based analysis of claims experience, regulatory changes and other relevant factors. Foreign Currency We have six Nordstrom FLS in Canada and six Nordstrom Rack stores in Canada. The functional currency of our Canadian operation is the Canadian Dollar. We translate assets and liabilities into U.S. Dollars using the exchange rate in effect at the balance sheet date, while we translate revenues and expenses using an average exchange rate for the period. We record these translation adjustments as a component of accumulated other comprehensive loss on the Consolidated Balance Sheets . In addition, our U.S. operation incurs certain expenditures denominated in Canadian Dollars and our Canadian operation incurs certain expenditures denominated in U.S. Dollars. This activity results in transaction gains and losses that arise from exchange rate fluctuations, which are recorded as gains or losses in the Consolidated Statements of Earnings . As of February 1, 2020 , activities associated with foreign currency exchange risk have not had a material impact on our Consolidated Financial Statements. Recent Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04, Intangibles — Goodwill and Other: Simplifying the Test for Goodwill Impairment , which simplifies the accounting for goodwill impairment by eliminating step two from the goodwill impairment test. This guidance is effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2019, with early adoption permitted. We have elected to early adopt this ASU effective the beginning of the fourth quarter of 2019. Our adoption of this standard was not material to our Consolidated Financial Statements. In March 2019, we adopted the SEC’s rule on FAST Act Modernization and Simplification of Regulation S-K . The amendment aims to modernize and simplify certain reporting requirements and improve readability and navigability between disclosures. This final rule was effective for the first quarter of 2019. Our adoption of this final rule did not have a material effect on our Consolidated Financial Statements. |
Leases
Leases | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Leases | NOTE 2: LEASES During the first quarter of 2019, we adopted the Lease Standard using the transition method provided in ASU 2018-11. As a result, reporting periods beginning in the first quarter of 2019 are presented under the Lease Standard while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 840 — Leases . Adoption of the Lease Standard did not have a material impact on our Consolidated Statement of Earnings, Consolidated Statement of Comprehensive Earnings, Consolidated Statement of Cash Flows or Consolidated Statement of Shareholders’ Equity. The impact of adopting the Lease Standard resulted in the following on February 3, 2019: • Increase in total assets and total liabilities of $1,849 primarily due to recognizing ROU assets and operating lease liabilities for most leases previously classified as operating leases. • Reclassification of deferred property incentives, net of $568 to ROU assets on the Consolidated Balance Sheet. • Reclassification of deferred property incentives, net of $339 from ROU assets to other current liabilities and other liabilities on the Consolidated Balance Sheet for property incentives that exceed the associated ROU asset. Property incentives that exceed the associated ROU asset are primarily due to leases with low fixed lease costs that may also have variable lease costs that are excluded from the ROU asset. • Increase in beginning accumulated deficit of $25 primarily due to the net impact of removing a building and associated financial obligation from land, property and equipment and long-term debt, net on the Consolidated Balance Sheet related to a failed sale-leaseback transaction. The majority of our fixed, non-cancellable lease terms are 15 to 30 years for Nordstrom FLS, approximately 10 years for Nordstrom Rack stores and 5 to 20 years for office facilities and Supply Chain Network facilities. Many of our leases include options that allow us to extend the lease term beyond the initial commitment period. At the commencement of a lease, we generally include only the initial lease term as we have determined that options to extend are not reasonably certain to occur. The exercise of lease renewal options is generally at our sole discretion. At the renewal of an expiring lease, we reassess our options in the agreement and include all reasonably certain extensions in the measurement of our lease term. Most of our leases also require we pay certain expenses, such as common area maintenance charges, real estate taxes and other executory costs, the fixed portion of which is included in Operating Lease Cost. We recognize Operating Lease Cost, which is primarily included in occupancy costs, on a straight-line basis over the lease term. Variable lease cost includes payments for variable common area maintenance charges and additional payments based on a percentage of sales, which are recognized when probable. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table summarizes the components of lease cost: Fiscal year 2019 Operating Lease Cost $278 Variable lease cost 1 105 Sublease income (9 ) Total lease cost, net $374 1 Variable lease cost includes short-term lease cost, which was immaterial for the year ended February 1, 2020 . The following table summarizes future lease payments as of February 1, 2020 : Fiscal year Operating Leases 2020 $333 2021 353 2022 327 2023 300 2024 252 Thereafter 1,136 Total lease payments 2,701 Less: amount representing interest (582 ) Present value of net lease payments 1 $2,119 1 Total lease payments exclude $12 of lease payments for operating leases that were signed but have not yet commenced. The following table includes supplemental information: Fiscal year 2019 Cash paid related to operating lease liabilities $360 Operating lease interest 101 Operating lease liabilities arising upon adoption of the Lease Standard 2,224 Operating lease liabilities arising from the commencement of lease agreements 150 Cash received from developer reimbursements 79 Amortization of developer reimbursements 75 February 1, 2020 Weighted-average remaining lease term 10 years Weighted-average discount rate 4.7 % Previous Lease Standard Disclosures The following table summarizes rent expense before adoption of the Lease Standard: Fiscal year 2018 2017 Minimum rent $321 $318 Percentage rent 9 11 Property incentives (79 ) (79 ) Total rent expense $251 $250 The rent expense above does not include common area maintenance charges, real estate taxes and other executory costs, which were $138 in 2018 and $121 in 2017. The following table summarizes future minimum lease payments as of February 2, 2019, before adoption of the Lease Standard: Fiscal year Operating Leases 2019 $322 2020 313 2021 294 2022 271 2023 249 Thereafter 1,160 Total minimum lease payments $2,609 |
Revenue
Revenue | 12 Months Ended |
Feb. 01, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE 3: REVENUE Contract Liabilities Contract liabilities represent our obligation to transfer goods or services to customers and include deferred revenue for The Nordy Club (including points and Nordstrom Notes) and gift cards. Our contract liabilities are classified as current on the Consolidated Balance Sheet and are as follows: Contract Liabilities Opening balance as of February 4, 2018 $498 Balance as of February 2, 2019 548 Balance as of February 1, 2020 576 Revenues recognized from our beginning contract liability balance were $313 and $307 for the years ended February 1, 2020 and February 2, 2019 . Disaggregation of Revenue The following table summarizes our disaggregated net sales: Fiscal year 2019 2018 2017 Net sales by business 1 : Full-Price $9,943 $10,299 $10,452 Off-Price 5,189 5,181 4,956 Other — — (271 ) Total net sales $15,132 $15,480 $15,137 Digital sales as % of net sales 33 % 30 % 27 % 1 We present our sales in the way that management views our results internally, including presenting 2019 and 2018 under the Revenue Standard while prior period amounts are not adjusted and allocating our sales return allowance and loyalty related adjustments to Full-Price and Off-Price. For 2017, Other primarily included unallocated sales return, in-transit and loyalty related adjustments necessary to reconcile sales by business to total net sales. If we applied the sales return allowance allocation and the loyalty related adjustments to 2017, Full-Price net sales would decrease $211 , Off-Price net sales would decrease $60 and Other net sales would increase $271 . The following table summarizes the percent of net sales by merchandise category: Fiscal year 2019 2018 2017 Women’s Apparel 31 % 32 % 32 % Shoes 24 % 24 % 23 % Men’s Apparel 16 % 16 % 16 % Women’s Accessories 11 % 11 % 11 % Beauty 11 % 11 % 11 % Kids’ Apparel 4 % 4 % 4 % Other 3 % 2 % 3 % Total net sales 100 % 100 % 100 % |
Credit Card Receivable Transact
Credit Card Receivable Transaction | 12 Months Ended |
Feb. 01, 2020 | |
Credit Card Receivable Transaction [Abstract] | |
Credit Card Receivable Transaction | NOTE 4: CREDIT CARD RECEIVABLE TRANSACTION In October 2015, we completed the sale of a substantial majority of our U.S. Visa and private label credit card portfolio to TD. In November 2017, we sold the remaining balances, which consisted of employee credit card receivables for the U.S. Visa and Nordstrom private label credit cards to TD for an amount equal to the gross value of the outstanding receivables. At close of the November 2017 transaction, we received $55 in cash consideration reflecting the par value of the employee receivables sold. Cash Flows Presentation Nordstrom private label credit and debit cards can be used at a majority of our U.S. retail businesses, while Nordstrom Visa credit cards also may be used for purchases outside of Nordstrom. Prior to the completion of the credit card receivable transaction in November 2017, cash flows from the use of both the private label and Nordstrom Visa credit cards for sales originating at our stores and our digital channels were treated as an operating activity within the Consolidated Statements of Cash Flows, as they related to sales at Nordstrom. Additionally, cash flows arising from the use of Nordstrom Visa credit cards outside of our stores were treated as an investing activity within the Consolidated Statements of Cash Flows, as they represented loans made to our customers for purchases at third parties. |
Land, Property And Equipment
Land, Property And Equipment | 12 Months Ended |
Feb. 01, 2020 | |
Property, Plant and Equipment [Abstract] | |
Land, Property And Equipment | NOTE 5: LAND, PROPERTY AND EQUIPMENT Land, property and equipment consist of the following: February 1, 2020 February 2, 2019 Land and land improvements $288 $111 Buildings and building improvements 1,591 1,240 Leasehold improvements 3,263 3,152 Store fixtures and equipment 4,015 3,832 Capitalized software 1,547 1,492 Construction in progress 470 741 Land, property and equipment 11,174 10,568 Less: accumulated depreciation and amortization (6,995 ) (6,647 ) Land, property and equipment, net $4,179 $3,921 Depreciation and amortization expense was $654 , $661 and $655 in 2019, 2018 and 2017. Prior to the adoption of the Lease Standard, the total cost of property and equipment held under capital lease obligations was $26 at the end of 2018 and 2017, with related accumulated amortization of $26 and $25 in 2018 and 2017. In 2019, we incurred $60 in net non-cash investing activities for accruals for capital expenditures, primarily related to Nordstrom NYC and our Supply Chain Network. |
Self-Insurance
Self-Insurance | 12 Months Ended |
Feb. 01, 2020 | |
Self Insurance [Abstract] | |
Self-Insurance | NOTE 6: SELF-INSURANCE Our self-insurance reserves are summarized as follows: February 1, 2020 February 2, 2019 Workers’ compensation $79 $77 Employee health and welfare 25 25 Other liability 14 15 Total self-insurance reserve $118 $117 Our workers’ compensation policies have a retention per claim of $1 or less and no policy limits. We are self-insured for the majority of our employee health and welfare coverage and we do not use stop-loss coverage. Participants contribute to the cost of their coverage through premiums and out-of-pocket expenses for deductibles, co-pays and co-insurance. Our liability policies, encompassing an employment practices liability, with a policy limit up to $30 , and a commercial general liability, with a policy limit up to $151 , have a retention per claim of $3 or less. Subsequent to the year ended February 1, 2020, the policy limit on a commercial general liability will decrease to $ 101 . |
401(k) Plan
401(k) Plan | 12 Months Ended |
Feb. 01, 2020 | |
Four Zero One K Plan [Abstract] | |
401(k) Plan | NOTE 7: 401(K) PLAN We provide a 401(k) plan for our employees that allows for employee elective contributions and our discretionary contributions. Employee elective contributions are funded through voluntary payroll deductions. Our discretionary contribution is funded in an amount determined by our Board of Directors each year. Total expenses related to Company contributions of $85 , $102 and $110 in 2019 , 2018 and 2017 were included in both buying and occupancy costs and SG&A expenses on our Consolidated Statements of Earnings. The $110 in 2017 included $94 of matching contributions and $16 for a one-time discretionary profit-sharing contribution. |
Postretirement Benefits
Postretirement Benefits | 12 Months Ended |
Feb. 01, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Postretirement Benefits | NOTE 8: POSTRETIREMENT BENEFITS We have a SERP, which provides retirement benefits to certain officers and select employees. The SERP has different benefit levels depending on the participant’s role. At the end of 2019 , we had 57 participants in the plan, including 11 officers and select employees eligible for SERP benefits, 44 retirees and two beneficiaries. This plan is non-qualified and does not have a minimum funding requirement. Benefit Obligations and Funded Status Our benefit obligation and funded status is as follows: February 1, 2020 February 2, 2019 Change in benefit obligation: Benefit obligation at beginning of year $190 $200 Participant service cost 2 2 Interest cost 7 7 Benefits paid (9 ) (9 ) Actuarial loss (gain) 34 (10 ) Benefit obligation at end of year 224 190 Change in plan assets: Fair value of plan assets at beginning of year — — Employer contribution 9 9 Benefits paid (9 ) (9 ) Fair value of plan assets at end of year — — Underfunded status at end of year ($224 ) ($190 ) The accumulated benefit obligation, which is the present value of benefits, assuming no future compensation changes, was $222 and $188 at the end of 2019 and 2018 . Amounts recognized as liabilities in the Consolidated Balance Sheets consist of the following: February 1, 2020 February 2, 2019 Accrued salaries, wages and related benefits $11 $10 Other liabilities (noncurrent) 213 180 Net amount recognized $224 $190 Components of SERP Expense The components of SERP expense recognized in the Consolidated Statements of Earnings are as follows: Fiscal year 2019 2018 2017 Participant service cost $2 $2 $3 Interest cost 7 7 7 Amortization of net loss and other 1 5 3 Total SERP expense $10 $14 $13 Amounts not yet reflected in SERP expense and included in accumulated other comprehensive loss (pre-tax) consist of the following: February 1, 2020 February 2, 2019 Accumulated loss ($62 ) ($30 ) Prior service credit — 1 Total accumulated other comprehensive loss ($62 ) ($29 ) Assumptions Weighted-average assumptions used to determine our benefit obligation and SERP expense are as follows: Fiscal year 2019 2018 2017 Assumptions used to determine benefit obligation: Discount rate 2.97 % 4.27 % 3.95 % Rate of compensation increase 2.50 % 2.50 % 3.00 % Assumptions used to determine SERP expense: Discount rate 4.27 % 3.95 % 4.31 % Rate of compensation increase 2.50 % 3.00 % 3.00 % Future Benefit Payments and Contributions As of February 1, 2020 , the expected future benefit payments based upon the assumptions described above and including benefits attributable to estimated future employee service are as follows: Fiscal year 2020 $11 2021 11 2022 11 2023 12 2024 12 2025 – 2029 62 |
Debt And Credit Facilities
Debt And Credit Facilities | 12 Months Ended |
Feb. 01, 2020 | |
Debt Disclosure [Abstract] | |
Debt And Credit Facilities | NOTE 9: DEBT AND CREDIT FACILITIES Debt A summary of our long-term debt is as follows: February 1, 2020 February 2, 2019 Long-term debt, net of unamortized discount: Senior notes, 4.75%, due May 2020 $— $500 Senior notes, 4.00%, due October 2021 500 500 Senior notes, 4.00%, due March 2027 349 349 Senior debentures, 6.95%, due March 2028 300 300 Senior notes, 4.375%, due April 2030 500 — Senior notes, 7.00%, due January 2038 147 146 Senior notes, 5.00%, due January 2044 897 895 Other 1 (17 ) (5 ) Total long-term debt 2,676 2,685 Less: current portion — (8 ) Total due beyond one year $2,676 $2,677 1 Other primarily includes deferred bond issue costs. Required principal payments on long-term debt are as follows: Fiscal year 2020 $— 2021 500 2022 — 2023 — 2024 — Thereafter 2,264 During 2019, we issued $500 aggregate principal amount of 4.375% senior unsecured notes due April 2030 . With the proceeds of this issuance, we retired our $500 senior unsecured notes that were due May 2020 . We incurred $8 of net interest expense related to the refinancing, which primarily included a one-time payment to 2020 Senior Note holders under a make-whole provision. Interest Expense The components of interest expense, net are as follows: Fiscal year 2019 2018 2017 Interest on long-term debt and short-term borrowings $151 $146 $168 Less: Interest income (10 ) (15 ) (5 ) Capitalized interest (39 ) (27 ) (27 ) Interest expense, net $102 $104 $136 Credit Facilities As of February 1, 2020 , we had total short-term borrowing capacity of $800 under the Revolver that expires in September 2023 . The Revolver contains customary representations, warranties, covenants and terms, including paying a variable rate of interest and a commitment fee based on our debt rating. The Revolver is available for working capital, capital expenditures and general corporate purposes. Provided that we obtain written consent from the lenders, we have the option to increase the Revolver by up to $ 200 , to a total of $ 1,000 , and two options to extend the Revolver by one year. For more information, see subsequent events in Note 1: Nature of Operations and Summary of Significant Accounting Policies . The Revolver requires that we maintain an adjusted debt to EBITDAR leverage ratio of no more than four times. The Revolver’s ratio calculation methodology has not been impacted by the adoption of the Lease Standard. As of February 1, 2020 and February 2, 2019 , we were in compliance with this covenant. Our $800 commercial paper program allows us to use the proceeds to fund operating cash requirements. Under the terms of the commercial paper agreement, we pay a rate of interest based on, among other factors, the maturity of the issuance and market conditions. The issuance of commercial paper has the effect, while it is outstanding, of reducing available liquidity under the Revolver by an amount equal to the principal amount of commercial paper. As of February 1, 2020 and February 2, 2019 , we had no issuances outstanding under our commercial paper program and no borrowings outstanding under our Revolver. Our wholly owned subsidiary in Puerto Rico maintained a $52 unsecured borrowing facility to support our expansion into that market. Borrowings on this facility incurred interest at an annual rate based upon LIBOR plus 1.275% and also incurred a fee based on any unused commitment. In 2018, we fully repaid $47 outstanding on this facility, and did not renew the facility upon expiration in the fourth quarter of 2018. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Feb. 01, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 10: FAIR VALUE MEASUREMENTS We disclose our financial assets and liabilities that are measured at fair value in our Consolidated Balance Sheets by level within the fair value hierarchy as defined by applicable accounting standards: Level 1: Quoted market prices in active markets for identical assets or liabilities Level 2: Other observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs that cannot be corroborated by market data that reflect the reporting entity’s own assumptions Financial Instruments Measured at Carrying Value Financial instruments measured at carrying value on a recurring basis include cash and cash equivalents, accounts receivable and accounts payable, which approximate fair value due to their short-term nature. Long-term debt is recorded at carrying value. If long-term debt was measured at fair value, we would use quoted market prices of the same or similar issues, which is considered Level 2 fair value measurement. The following table summarizes the carrying value and fair value estimate of our long-term debt, including current maturities: February 1, 2020 February 2, 2019 Carrying value of long-term debt $2,676 $2,685 Fair value of long-term debt 2,905 2,692 Non-financial Assets Measured at Fair Value on a Nonrecurring Basis We also measure certain non-financial assets at fair value on a nonrecurring basis, primarily goodwill, long-lived tangible, right-of-use and intangible assets, in connection with periodic evaluations for potential impairment. We estimate the fair value of these assets using primarily unobservable inputs and, as such, these are considered Level 3 fair value measurements. For additional information related to goodwill and intangible, long-lived and right-of-use assets and impairments, see Note 1: Nature of Operations and Summary of Significant Accounting Policies . |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Feb. 01, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | NOTE 11: COMMITMENTS AND CONTINGENCIES Our estimated total purchase obligations, which primarily consist of capital expenditure commitments and inventory purchase orders, were $1,618 as of February 1, 2020 . In connection with the purchase of foreign merchandise, we have no outstanding trade letters of credit as of February 1, 2020 . Our NYC flagship store opened in October 2019 and the related building and equipment assets were placed into service as of the end of the third quarter. While our store has opened, construction continues in the residential condominium units above the store. As of February 1, 2020 , we have a fee interest in the retail condominium unit. We are committed to make one remaining installment payment based on the developer meeting final pre-established construction and development milestones. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Feb. 01, 2020 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | NOTE 12: SHAREHOLDERS’ EQUITY The following is a summary of the activity related to our share repurchase programs in 2019 , 2018 , and 2017 : Shares Average price per share Amount Capacity at January 28, 2017 $529 February 2017 authorization (ended August 31, 2018) 500 Shares repurchased 4.6 $45 (206 ) Expiration of unused October 2015 authorization capacity in March 2017 (409 ) Capacity at February 3, 2018 414 August 2018 authorization (no expiration) 1,500 Shares repurchased 14.3 $49 (702 ) Expiration of unused February 2017 authorization capacity in August 2018 (319 ) Capacity at February 2, 2019 893 Shares repurchased 4.1 $45 (186 ) Capacity at February 1, 2020 $707 The actual timing, price, manner and amounts of future share repurchases, if any, will be subject to market and economic conditions and applicable SEC rules. We paid dividends of $1.48 per share in 2019 , 2018 and 2017 . In February 2020 , subsequent to year end, we declared a quarterly dividend of $0.37 per share, which will be paid on March 25, 2020 to shareholders of record as of March 10, 2020 . |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | NOTE 13: STOCK-BASED COMPENSATION We currently grant stock-based awards under our 2019 Plan and employees may purchase our stock at a discount under our ESPP. Under our deferred and stock-based compensation plan arrangements, the Company issued 2.1 , 4.9 , and 1.6 shares of common stock in 2019 , 2018 and 2017 . Under the 2019 Plan, the aggregate number of shares to be issued may not exceed 9.5 plus any shares currently outstanding under the 2010 Plan that are forfeited or expire during the term of the 2019 Plan. As of February 1, 2020 , we have 9.5 shares authorized, 12.2 shares issued and outstanding and 10.3 shares remaining available for future grants under the 2019 Plan. No future grants will be made under the 2002 Plan and the 2010 Plan. Under the ESPP, employees may make payroll deductions of up to 10% of their base and bonus compensation for the purchase of Nordstrom common stock. At the end of each six-month offering period, participants apply their accumulated payroll deductions toward the purchase of shares of our common stock at 90% of the fair market value on the last day of the offer period. As of February 1, 2020 , we had 12.6 shares authorized and 1.3 shares available for issuance under the ESPP. We issued 0.5 and 0.4 shares under the ESPP during 2019 and 2018 . At the end of 2019 and 2018 , we had current liabilities of $5 and $6 for future purchases of shares under the ESPP. The following table summarizes our stock-based compensation expense: Fiscal year 2019 2018 2017 RSUs $49 $71 $51 Stock options 11 12 18 Other 1 9 7 8 Total stock-based compensation expense, before income tax benefit 69 90 77 Income tax benefit (18 ) (23 ) (20 ) Total stock-based compensation expense, net of income tax benefit $51 $67 $57 1 Other stock-based compensation expense includes PSUs, ESPP and nonemployee director stock awards. The stock-based compensation expense before income tax benefit was recorded in our Consolidated Statements of Earnings as follows: Fiscal year 2019 2018 2017 Cost of sales and related buying and occupancy costs $20 $28 $25 SG&A expenses 49 62 52 Total stock-based compensation expense, before income tax benefit $69 $90 $77 Restricted Stock Our Compensation, People and Culture Committee of our Board of Directors approves grants of restricted stock units to employees. The number of units granted to an individual are determined based upon a percentage of the recipient’s base salary and the fair value of the restricted stock. Restricted stock units typically vest over four years . A summary of restricted stock unit activity for 2019 is presented below: Fiscal year 2019 Shares Weighted-average grant date fair value per unit Outstanding, beginning of year 3.9 $47 Granted 1.5 39 Vested (1.6 ) 46 Forfeited or cancelled (0.6 ) 45 Outstanding, end of year 3.2 $44 The aggregate fair value of restricted stock units vested during 2019 , 2018 and 2017 was $65 , $54 and $26 . As of February 1, 2020 , the total unrecognized stock-based compensation expense related to nonvested restricted stock units was $79 , which is expected to be recognized over a weighted-average period of 28 months . Stock Options Our Compensation, People and Culture Committee of our Board of Directors approves grants of nonqualified stock options to employees. We used the following assumptions to estimate the fair value for stock options at each grant date (excluding options granted in connection with the Trunk Club acquisition): Fiscal year 1 2019 2017 Assumptions Risk-free interest rate: Represents the yield on U.S. Treasury zero-coupon securities that mature over the 10-year life of the stock options. 2.5% – 2.7% 1.0% – 2.5% Weighted-average volatility: Based on a combination of the historical volatility of our common stock and the implied volatility of exchange-traded options for our common stock. 34.6 % 40.1 % Weighted-average expected dividend yield: Our forecasted dividend yield for the next 10 years. 1.9 % 2.4 % Expected life in years: Represents the estimated period of time until option exercise. The expected term of options granted was derived from the output of the Binomial Lattice option valuation model and was based on our historical exercise behavior, taking into consideration the contractual term of the option and our employees’ expected exercise and post-vesting employment termination behavior. 6.8 7.1 Grant Date Information Date of grant March 5, 2019 February 28, 2017 Weighted-average fair value per option $15 $16 Exercise price per option $45 $47 1 There were no stock options granted in 2018. A summary of stock option activity for 2019 is presented below: Fiscal year 2019 Shares Weighted- average exercise price Weighted-average remaining contractual life (years) Aggregate intrinsic value Outstanding, beginning of year 8.4 $53 Granted 1.0 45 Exercised (0.4 ) 30 Forfeited or cancelled (0.7 ) 54 Outstanding, end of year 8.3 $53 5 $132 Vested, end of year 6.9 $54 4 $118 Vested or expected to vest, end of year 8.1 $53 5 $130 Fiscal year 2019 2018 2017 Aggregate intrinsic value of options exercised $5 $67 $13 Fair value of stock options vested $17 $22 $34 As of February 1, 2020 , the total unrecognized stock-based compensation expense related to nonvested stock options was $10 , which is expected to be recognized over a weighted-average period of 35 months . |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 14: INCOME TAXES In December 2017, the Tax Act was signed into law. Among numerous other provisions, the Tax Act significantly revised the U.S. federal corporate income tax by reducing the statutory rate from 35% to 21% . In accordance with SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act , we made a reasonable estimate of the Tax Act’s impact and provisionally recorded this estimate in our 2017 results. As of February 2, 2019, we completed our accounting for the impacts of the Tax Act, resulting in no material changes to previously recorded provisional amounts. U.S. and foreign components of earnings before income taxes were as follows: Fiscal year 2019 2018 2017 U.S. $654 $792 $803 Foreign 28 (59 ) (13 ) Earnings before income taxes $682 $733 $790 Income tax expense consists of the following: Fiscal year 2019 2018 2017 Current income taxes: Federal $90 $147 $291 State and local 44 56 51 Total current income tax expense 134 203 342 Deferred income taxes: Federal 43 (5 ) 10 State and local 3 (3 ) 1 Foreign 6 (26 ) — Total deferred income tax expense (benefit) 52 (34 ) 11 Total income tax expense $186 $169 $353 A reconciliation of the statutory federal income tax rate to the effective tax rate on earnings before income taxes is as follows: Fiscal year 2019 2018 2017 Statutory rate 21.0 % 21.0 % 33.7 % Tax Act impact — (0.1 %) 6.1 % State and local income taxes, net of federal income taxes 5.4 % 5.8 % 4.5 % Federal credits (0.9 %) (1.5 %) (0.7 %) Valuation allowance release — (1.2 %) — Other, net 1.8 % (0.9 %) 1.1 % Effective tax rate 27.3 % 23.1 % 44.7 % The components of deferred tax assets and liabilities are as follows: February 1, 2020 February 2, 2019 Deferred tax assets: Lease liabilities $555 $— Compensation and benefits accruals 145 139 Allowance for sales returns 47 52 Accrued expenses 29 28 Merchandise inventories 20 20 Gift cards 39 26 Loyalty program 10 12 Net operating losses 33 41 Other 5 5 Total deferred tax assets 883 323 Valuation allowance (41 ) (43 ) Total net deferred tax assets 842 280 Deferred tax liabilities: ROU assets (377 ) — Land, property and equipment basis and depreciation differences (312 ) (94 ) Debt exchange premium (13 ) (13 ) Total deferred tax liabilities (702 ) (107 ) Net deferred tax assets $140 $173 As of February 1, 2020 , our state and foreign net operating loss carryforwards for income tax purposes were approximately $25 and $102 . As of February 2, 2019 , our state and foreign net operating loss carryforwards for income tax purposes were approximately $12 and $132 . The net operating loss carryforwards are subject to certain statutory limitations of applicable state and foreign laws. If not utilized, a portion of our state and foreign net operating loss carryforwards will begin to expire in 2023 and 2033. As of February 1, 2020 and February 2, 2019 , we believe there are certain foreign net operating loss carryforwards and deferred tax assets that will not be realized in the foreseeable future. As such, valuation allowances of $41 and $43 have been recorded as of February 1, 2020 and February 2, 2019 . The net change in valuation allowance for 2019 and 2018 was a decrease of $2 and $8 , respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Fiscal year 2019 2018 2017 Unrecognized tax benefit at beginning of year $30 $31 $32 Gross increase to tax positions in prior periods — 9 2 Gross decrease to tax positions in prior periods — (14 ) (7 ) Gross increase to tax positions in current period 3 6 5 Lapses in statute (1 ) (2 ) (1 ) Settlements (10 ) — — Unrecognized tax benefit at end of year $22 $30 $31 At the end of 2019 and 2018 , $22 and $26 of the ending gross unrecognized tax benefit related to items which, if recognized, would affect the effective tax rate. There was no material expense for interest and penalties in 2019 , 2018 and 2017 . At the end of 2019 and 2018 , our liability for interest and penalties was $3 and $3 . We file income tax returns in the U.S. and a limited number of foreign jurisdictions. With few exceptions, we are no longer subject to federal, state and local, or non-U.S. income tax examinations for years before 2013. As of February 1, 2020, we believe unrecognized tax benefits related to federal, state and local tax positions will not decrease by January 30, 2021 . |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Feb. 01, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 15: EARNINGS PER SHARE Earnings per basic share is computed using the weighted-average number of common shares outstanding during the year. Earnings per diluted share uses the weighted-average number of common shares outstanding during the year plus dilutive common stock equivalents, primarily restricted stock and stock options. Dilutive common stock is calculated using the treasury stock method and includes unvested RSUs and outstanding options that would reduce the amount of earnings for which each share is entitled. Anti-dilutive shares (including stock options and other shares) are excluded from the calculation of diluted shares and earnings per diluted share because their impact could increase earnings per diluted share. The computation of earnings per share is as follows: Fiscal year 2019 2018 2017 Net earnings $496 $564 $437 Basic shares 155.2 167.3 166.8 Dilutive effect of common stock equivalents 0.9 2.7 2.1 Diluted shares 156.1 170.0 168.9 Earnings per basic share $3.20 $3.37 $2.62 Earnings per diluted share $3.18 $3.32 $2.59 Anti-dilutive common stock equivalents 10.0 5.2 10.5 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Feb. 01, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 16: SEGMENT REPORTING Segments We continually monitor and review our segment reporting structure in accordance with authoritative guidance to determine whether any changes have occurred that would impact our reportable segments. We have one reportable “Retail” segment to align with how management operates and evaluates the results of our operations. Our principal executive officer, who is our CODM, reviews results on a total company, Full-Price and Off-Price basis and uses EBIT as a measure of profitability. Our Retail reportable segment aggregates our two operating segments, Full-Price and Off-Price. Full-Price consists of Nordstrom U.S. Full-Price stores, Nordstrom.com, Canada, Trunk Club, Jeffrey and Nordstrom Local. Off-Price consists of Nordstrom U.S. Rack stores, NRHL and Last Chance clearance stores. Our Full-Price and Off-Price operating segments both generate revenue by offering customers an extensive selection of high-quality, brand-name and private label merchandise, which includes apparel, shoes, cosmetics and accessories for women, men, young adults and children. We continue to focus on omni-channel initiatives by integrating the operations, merchandising and technology necessary to be consistent with our customers’ expectations of a seamless shopping experience regardless of channel or business. Full-Price and Off-Price have historically had similar economic characteristics and are expected to have similar economic characteristics and long-term financial performance in future periods. They also have other similar qualitative characteristics, including suppliers, method of distribution, type of customer and regulatory environment. Due to their similar qualitative and economic characteristics, we have aggregated our Full-Price and Off-Price operating segments into a single reportable segment. Amounts in the Corporate/Other column include unallocated corporate expenses and assets (including unallocated assets in corporate headquarters, consisting primarily of cash, land, buildings and equipment and deferred tax assets), inter-segment eliminations and other adjustments to segment results necessary for the presentation of consolidated financial results in accordance with GAAP. We allocate Credit assets, loss before interest and income taxes and loss before income taxes to the Retail segment. Accounting Policy We present our segment results for all years in the way that management views our results internally, including presenting 2019 and 2018 under the Revenue Standard while prior period amounts are not adjusted. For 2019 and 2018, we generally use the same methodology to compute earnings before income taxes for our reportable segment as we do for the consolidated Company. As a result, for our Retail segment in 2019 and 2018, we defer a portion of underlying sales revenue as customers earn points and Nordstrom Notes in The Nordy Club, based on an estimated stand-alone selling price of primarily points and Nordstrom Notes, and recognize the deferred revenue and related cost of sales when the Nordstrom Notes are ultimately redeemed. For 2017, prior to the adoption of the Revenue Standard, we estimated the net cost of Nordstrom Notes to be issued and redeemed. We recorded this cost as reward points were accumulated in cost of sales in our total company results. The related Nordstrom Notes expenses were included at face value in the Retail segment. As a result, our Corporate/Other column included an adjustment to reduce the Nordstrom Notes expense from face value to their estimated cost. In addition, the full amount of redemptions of our Nordstrom Notes were included in net sales for our Retail segment. The net sales amount in our Corporate/Other column primarily related to an entry to eliminate these transactions from our consolidated net sales. The impact of these types of adjustments on Retail segment EBIT and Corporate/Other loss before interest and income taxes in 2017 would be immaterial. Other than as described above, the accounting policies of our reportable segment are the same as those described in Note 1: Nature of Operations and Summary of Significant Accounting Policies . The following table sets forth information for our reportable segment: Retail Corporate/Other Total Fiscal year 2019 Net sales $15,132 $— $15,132 Credit card revenues, net — 392 392 Earnings (loss) before interest and income taxes 1,028 (244 ) 784 Interest expense, net — (102 ) (102 ) Earnings (loss) before income taxes 1,028 (346 ) 682 Capital expenditures (726 ) (209 ) (935 ) Depreciation and amortization (428 ) (233 ) (661 ) Assets 1 6,831 2,906 9,737 Fiscal year 2018 Net sales $15,480 $— $15,480 Credit card revenues, net — 380 380 Earnings (loss) before interest and income taxes 2 1,059 (222 ) 837 Interest expense, net — (104 ) (104 ) Earnings (loss) before income taxes 2 1,059 (326 ) 733 Capital expenditures (415 ) (239 ) (654 ) Depreciation and amortization (436 ) (233 ) (669 ) Assets 5,300 2,586 7,886 Fiscal year 2017 Net sales $15,408 ($271 ) $15,137 Credit card revenues, net — 341 341 Earnings (loss) before interest and income taxes 2 1,083 (157 ) 926 Interest expense, net — (136 ) (136 ) Earnings (loss) before income taxes 2 1,083 (293 ) 790 Capital expenditures (516 ) (215 ) (731 ) Depreciation and amortization (445 ) (221 ) (666 ) Assets 5,477 2,638 8,115 1 In 2019, we adopted the Lease Standard using the transition method provided in ASU 2018-11. See Note 2: Leases for further information. 2 Certain reclassifications were made to 2018 and 2017 amounts to conform with current period presentation, which is the way that management views our results internally. For information about disaggregated revenues, see Note 3: Revenue . |
Selected Quarterly Data (Unaudi
Selected Quarterly Data (Unaudited) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Data (Unaudited) | NOTE 17: SELECTED QUARTERLY DATA 1 (UNAUDITED) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Fiscal year 2019 Net sales $3,349 $3,778 $3,566 $4,439 $15,132 Credit card revenues, net 94 94 106 99 392 Gross profit 1,121 1,302 1,222 1,555 5,200 SG&A expenses (1,138 ) (1,180 ) (1,135 ) (1,355 ) (4,808 ) EBIT 2 77 216 193 299 784 Net earnings 2 37 141 126 193 496 Earnings per basic share $0.24 $0.91 $0.81 $1.24 $3.20 Earnings per diluted share 2 $0.23 $0.90 $0.81 $1.23 $3.18 Dividends per share $0.37 $0.37 $0.37 $0.37 $1.48 Fiscal year 2018 Net sales $3,469 $3,980 $3,648 $4,383 $15,480 Credit card revenues, net 92 87 100 101 380 Gross profit 1,181 1,391 1,213 1,540 5,325 SG&A expenses (1,120 ) (1,232 ) (1,208 ) (1,308 ) (4,868 ) EBIT 3 153 246 105 333 837 Net earnings 3 87 162 67 248 564 Earnings per basic share $0.52 $0.97 $0.40 $1.50 $3.37 Earnings per diluted share 3 $0.51 $0.95 $0.39 $1.48 $3.32 Dividends per share $0.37 $0.37 $0.37 $0.37 $1.48 1 Quarterly totals may not foot across due to rounding. 2 In the fourth quarter of 2019, we incurred charges related to the integration of Trunk Club and debt refinancing costs, which reduced net earnings by $29 , or $0.19 per diluted share. The integration charges reduced earnings before interest and income taxes by $32 and debt refinancing costs increased interest expense by $8 . 3 Results in the third quarter of 2018 include the Estimated Non-recurring Charge of $72 , or $49 net of tax, and $0.28 per diluted share (see Note 1: Nature of Operations and Summary of Significant Accounting Policies ). |
Nature Of Operations And Summ_2
Nature Of Operations And Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year We operate on a 52/53-week fiscal year ending on the Saturday closest to January 31st. References to 2019 and all years except 2017 within this document are based on a 52-week fiscal year, while 2017 is based on a 53-week fiscal year. |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the balances of Nordstrom, Inc. and its subsidiaries. All intercompany transactions and balances are eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities during the reporting period. Uncertainties regarding such estimates and assumptions are inherent in the preparation of financial statements and actual results may differ from these estimates and assumptions. Our most significant accounting judgments and estimates include leases, revenue recognition, inventory valuation, long-lived asset recoverability and income taxes. |
Subsequent Events | Subsequent Events Effective March 17, 2020, we announced the temporary closure of our stores in the U.S. and Canada for two weeks, including our FLS, Nordstrom Rack stores, Trunk Club clubhouses and Jeffrey boutiques in response to the increased impact from novel coronavirus (COVID-19). We continue to serve customers through our apps and online at Nordstrom.com, Nordstromrack.com, HauteLook and Trunk Club, including digital styling, online order pickup and curbside services at our FLS. While this is expected to be temporary, the current circumstances are dynamic and the impacts of COVID-19 on our business operations, including the duration and impact on overall customer demand, cannot be reasonably estimated at this time and we anticipate this may have a material adverse impact on our business, results of operations, financial position and cash flows in 2020. As of February 1, 2020 , our existing cash and cash equivalents on-hand were $853 and had $800 available on our Revolver, with an option to increase the Revolver by up to $200 , to a total of $1,000 (see Note 9: Debt and Credit Facilities ). As a precautionary measure, to increase our cash position and preserve financial flexibility in light of current uncertainty resulting from the COVID-19 outbreak, we drew down $800 |
Revenue | Revenue During the first quarter of 2018, we adopted the Revenue Standard, using the modified retrospective method. Results for reporting periods beginning in the first quarter of 2018 are presented under the Revenue Standard while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605 — Revenue Recognition . Upon adoption, we recorded a net cumulative effect adjustment of $55 which decreased beginning accumulated deficit. Net Sales We recognize sales revenue net of estimated returns and excluding sales taxes. Revenue from sales to customers shipped from our Supply Chain Network facilities, stores and directly from our vendors (“shipped revenues”), which includes shipping revenue when applicable, is recognized at shipping point, the point in time where control has transferred to the customer. Costs to ship orders to customers are expensed as a fulfillment activity at shipping point, commissions from sales at our Full-Price stores are expensed at the point of sale and both are recorded in SG&A expenses. Prior to 2018, shipped revenues were recognized upon estimated receipt by the customer and we recorded an estimated in-transit allowance for orders shipped prior to a period’s end, but not yet received by the customer. We reduce sales and cost of sales by an estimate of customer merchandise returns, which is calculated based on historical return patterns, and record a sales return allowance and an estimated returns asset. Our sales return allowance is classified in other current liabilities and our estimated returns asset, calculated based on the cost of merchandise sold, is classified in prepaid expenses and other on the Consolidated Balance Sheet. Due to the seasonality of our business, these balances typically increase when higher sales occur in the last month of a period, such as the Anniversary Sale, which usually occurs at the end of the second quarter, and decrease in the following period. Prior to 2018, the estimated cost of merchandise returned was netted with our sales return allowance in other current liabilities. Loyalty Program We evolved our customer loyalty program with the launch of The Nordy Club in October 2018, which incorporates a traditional point system and the favorite benefits of our previous program, while providing customers exclusive access to products and events, enhanced services, personalized experiences and more convenient ways to shop. Customers accumulate points based on their level of spending and type of participation. Upon reaching certain point thresholds, customers receive Nordstrom Notes, which can be redeemed for goods or services offered at Nordstrom FLS, Nordstrom.com, Nordstrom Rack and NRHL. Nordstrom cardmembers can also earn rewards at Trunk Club. The Nordy Club member benefits will vary based on the level of customer spend, and include Bonus Points days and shopping and fashion events. We offer customers access to a variety of payment products and services, including a selection of Nordstrom-branded Visa® credit cards in the U.S. and Canada, as well as a Nordstrom-branded private label credit card for Nordstrom purchases. When customers use a Nordstrom-branded credit or debit card, they also participate in The Nordy Club and receive additional benefits, which can vary depending on the level of spend, including early access to the Anniversary Sale, Nordstrom to You (an in-home stylist) and incremental accumulation of points toward Nordstrom Notes. As our customers earn points and Nordstrom Notes in The Nordy Club, a portion of underlying sales revenue is deferred based on an estimated stand-alone selling price of points, Nordstrom Notes and other loyalty benefits, such as alterations. We recognize the revenue and related cost of sale when the Nordstrom Notes are ultimately redeemed and reduce our contract liability. We include the deferred revenue in other current liabilities on the Consolidated Balance Sheet. We record breakage revenue of unused points and unredeemed Nordstrom Notes based on expected customer redemption. We estimate, based on historical usage, that approximately 8% of Nordstrom Notes and approximately 16% of points will be unredeemed. Other benefits of the loyalty program, including shopping and fashion events, are recorded in SG&A expenses as these are not a material right of the program. As of February 1, 2020 and February 2, 2019 , our outstanding performance obligation for The Nordy Club, which consists primarily of unredeemed points and Nordstrom Notes at retail value under the Revenue Standard was $162 and $159 . Almost all Nordstrom Notes are redeemed within approximately nine months of issuance. Prior to 2018, we estimated the net cost of Nordstrom Notes to be issued and redeemed and recorded this cost as rewards points were accumulated. This cost, as well as reimbursed alterations, was recorded in cost of sales as we provided customers with products and services for these rewards. Credit Card Revenues, net Although the primary purpose of offering our credit cards is to foster greater customer loyalty and drive more sales, we also receive credit card revenue through our program agreement with TD, whereby TD is the exclusive issuer of our consumer credit cards and we perform account servicing functions. We completed the sale of a substantial majority of our U.S. Visa and private label credit card portfolio to TD in 2015, and in November 2017, we sold the remaining balances to TD, which consisted of employee credit card receivables for the U.S. Visa and Nordstrom private label credit cards (see Note 4: Credit Card Receivable Transaction ). Credit card revenues, net include our portion of the ongoing credit card revenue, net of credit losses, pursuant to our program agreement with TD. In 2017, we also recorded asset amortization and deferred revenue recognition associated with the assets and liabilities recorded as part of the initial transaction to sell our U.S. Visa and private label credit card portfolio to TD. Upon adoption of the Revenue Standard, the remaining unamortized balances of the investment in contract asset and deferred revenue associated with the sale of the credit card receivables were eliminated as part of a cumulative-effect adjustment, reducing the opening balance of accumulated deficit for 2018. As a result, the asset amortization and deferred revenue recognition are no longer recorded in credit card revenues, net. Prior to 2018, the investment in contract asset was classified in prepaid expenses and other and other assets, while the deferred revenue was classified in other current liabilities and other liabilities on the Consolidated Balance Sheet. Gift Cards We record deferred revenue from the sale of gift cards at the time of purchase. As gift cards are redeemed, we recognize revenue and reduce our contract liability. Although our gift cards do not have an expiration date, we include this deferred revenue in other current liabilities on the Consolidated Balance Sheet as customers can redeem gift cards at any time. As of February 1, 2020 and February 2, 2019 , our outstanding performance obligation for unredeemed gift cards was $414 and $389 . Almost all gift cards are redeemed within two years of issuance. We record breakage revenue on unused gift cards based on expected customer redemption. We estimate, based on historical usage, that 2% will be unredeemed and recognized as revenue. Breakage income was $17 and $14 in 2019 and 2018 . Prior to 2018, gift card breakage was recorded in SG&A expenses and was estimated based on when redemption was considered remote. Breakage income was $16 in 2017 . |
Cost of Sales | Cost of Sales Cost of sales primarily includes the purchase and manufacturing costs of inventory sold (net of vendor allowances) and in-bound freight expense. |
Buying and Occupancy Costs | Buying and Occupancy Costs Buying costs consist primarily of compensation and other costs incurred by our merchandising and product development groups. Occupancy costs include rent, depreciation, property taxes and facility operating costs of our retail, corporate center and Supply Chain Network facilities. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses SG&A expenses consist primarily of compensation and benefit costs, marketing, supply chain and technology. Estimated Non-recurring Charge We recognized an Estimated Non-recurring Charge of $72 , or $49 net of tax, in 2018, resulting from some delinquent Nordstrom credit card accounts being charged higher interest in error. Less than 4% of Nordstrom cardmembers received a cash refund or credit to outstanding balances, with most receiving less than one hundred dollars. We recorded an estimated charge representing our costs through 2018, which were comprised primarily of amounts we have refunded to impacted cardmembers. In 2018, the Estimated Non-recurring Charge increased our SG&A expenses on our Consolidated Statement of Earnings and other current liabilities on our Consolidated Balance Sheet. |
Advertising | Advertising Advertising production costs for internet, magazines, store events and other media are expensed the first time the advertisement is run. Online marketing costs are expensed when incurred. Total advertising expenses, net of vendor allowances, of $299 , $246 and $261 in 2019 , 2018 and 2017 were included in SG&A expenses. |
Vendor Allowances | Vendor Allowances We receive allowances from merchandise vendors for cosmetic expenses, purchase price adjustments, advertising programs and various other expenses. Allowances for cosmetic expenses are recorded in SG&A expenses as a reduction of the related costs when incurred. Purchase price adjustments are recorded as a reduction of cost of sales at the point they have been earned and the related merchandise has been marked down or sold. Allowances for advertising programs and other expenses are recorded in SG&A expenses as a reduction of the related costs when incurred. Vendor allowances earned are as follows: Fiscal year 2019 2018 2017 Cosmetic expenses $140 $149 $159 Purchase price adjustments 171 180 184 Advertising 101 115 107 Other 6 6 7 Total vendor allowances $418 $450 $457 |
Shipping and Handling Costs | Shipping and Handling Costs Our shipping and handling costs include payments to third-party shippers and costs to hold, move and prepare merchandise for shipment. These costs do not include in-bound freight to our Supply Chain Network facilities, which we include in the cost of our inventory. Shipping and handling costs of $627 , $589 and $523 in 2019 , 2018 and 2017 were included in SG&A expenses. |
Stock-Based Compensation | Stock-Based Compensation In May 2019, our shareholders approved the adoption of the 2019 Plan, which replaced the 2002 Plan and the 2010 Plan. The 2019 Plan authorizes the grant of stock options, PSUs, RSUs, stock appreciation rights and both restricted and unrestricted shares of common stock to employees and nonemployee directors. We grant stock-based awards under our 2019 Plan, and employees may purchase our stock at a discount under our ESPP. We predominantly recognize stock-based compensation expense related to stock-based awards at their estimated grant date fair value, recorded on a straight-line basis over the requisite service period. Compensation expense for certain award holders is accelerated based upon age and years of service. The total compensation expense is reduced by actual forfeitures as they occur over the vesting period of the awards. We estimate the grant date fair value of stock options using the Binomial Lattice option valuation model. The fair value of RSUs are determined based on the number of RSUs granted and the quoted price of our common stock on the date of grant, less the estimated present value of dividends over the vesting period. PSUs granted are classified as equity and the fair value is determined based on the number of PSUs granted and the quoted price of our common stock on the date of grant, less the estimated present value of dividends over the vesting period. Issuance of common stock under stock compensation plans on the Consolidated Statements of Shareholders’ Equity includes proceeds from our common stock option exercises and purchases of shares under the ESPP, while stock-based compensation primarily includes stock-based compensation expense for our common stock options, RSUs and PSUs partially offset by shares withheld for taxes on RSUs. |
New Store Opening Costs | New Store Opening Costs Non-capital expenditures associated with opening new stores, including marketing expenses, relocation expenses and occupancy costs, are charged to expense as incurred. These costs are included in both buying and occupancy costs and SG&A, according to their nature as disclosed above. |
Income Taxes | Income Taxes We use the asset and liability method of accounting for income taxes. Using this method, deferred tax assets and liabilities are recorded based on differences between the financial reporting and tax basis of assets and liabilities and for operating loss and tax credit carryforwards. The deferred tax assets and liabilities are calculated using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. We routinely evaluate the likelihood of realizing the benefit of our deferred tax assets and may record a valuation allowance if, based on all available evidence, it is determined that some portion of the tax benefit will not be realized. We regularly evaluate the likelihood of realizing the benefit for income tax positions we have taken in various federal, state and foreign filings by considering all relevant facts, circumstances and information available. If we believe it is more likely than not that our position will be sustained, we recognize a benefit at the largest amount that we believe is cumulatively greater than 50% likely to be realized. Interest and penalties related to income tax matters are classified as a component of income tax expense. Income taxes require significant management judgment regarding applicable statutes and their related interpretation, the status of various income tax audits and our particular facts and circumstances. Also, as audits are completed or statutes of limitations lapse, it may be necessary to record adjustments to our taxes payable, deferred taxes, tax reserves or income tax expense. In December 2017, the Tax Act was signed into law. Among numerous other provisions, the Tax Act significantly revised the U.S. federal corporate income tax by reducing the statutory rate from 35% to 21% . In accordance with SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act , we made a reasonable estimate of the Tax Act’s impact and provisionally recorded this estimate in our 2017 results. As of February 2, 2019, we completed our accounting for the impacts of the Tax Act, resulting in no material changes to previously recorded provisional amounts. In February 2018, as a result of adopting ASU No. 2018-02, Income Statement — Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, we reclassified $5 of tax impacts from accumulated other comprehensive loss to accumulated deficit, decreasing the beginning accumulated deficit for the year ended February 2, 2019. |
Comprehensive Net Earnings | Comprehensive Net Earnings Comprehensive net earnings consist of net earnings and other gains and losses affecting equity that are excluded from net earnings. These consist of postretirement plan adjustments, net of related income tax effects, and foreign currency translation adjustments. |
Cash Equivalents | Cash Equivalents Cash equivalents are short-term investments with a maturity of three months or less from the date of purchase and are carried at cost, which approximates fair value. At the end of 2019 and 2018 , checks not yet presented for payment drawn in excess of our bank deposit balances were $110 and $102 and included within accounts payable on our Consolidated Balance Sheets. |
Accounts Receivable | Accounts Receivable Accounts receivable, net primarily includes receivables from non-Nordstrom-branded credit and debit cards and, in 2019, developer reimbursements as a result of the adoption of the Lease Standard. |
Merchandise Inventories | Merchandise Inventories Merchandise inventories are generally stated at the lower of cost or market value using the retail inventory method. Under the retail method, the valuation of inventories is determined by applying a calculated cost-to-retail ratio to the retail value of ending inventory. The value of our inventory on the balance sheet is then reduced by a charge to cost of sales for retail inventory markdowns taken on the selling price. To determine if the retail value of our inventory should be marked down, we consider current and anticipated demand, customer preferences, age of the merchandise and fashion trends. We record obsolescence based on historical trends and specific identification. We take physical inventory counts and adjust our records accordingly. Following each physical inventory cycle, we adjust shrinkage to actual results and an estimate is recorded for shrinkage from the count date to year end. We evaluate and determine our estimated shrinkage rate, which is based on a percentage of sales, using the most recent physical inventory and historical results. |
Leases | Leases During the first quarter of 2019, we adopted the Lease Standard using the transition method provided in ASU 2018-11. As a result, reporting periods beginning in the first quarter of 2019 are presented under the Lease Standard while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 840 — Leases . Upon adoption of the Lease Standard, we record leases, which consist primarily of operating leases, on the Consolidated Balance Sheet as operating lease ROU assets, current portion of operating lease liabilities and non-current operating lease liabilities. Operating lease liabilities are initially recognized based on the net present value of the fixed portion of our lease and common area maintenance payments from lease commencement through the lease term. To calculate the net present value, we apply an incremental borrowing rate. The incremental borrowing rate is determined using a portfolio approach based on the rate of interest we would pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. We use quoted interest rates obtained from financial institutions as an input to derive our incremental borrowing rate as the discount rate for the lease. We recognize ROU assets based on operating lease liabilities reduced by property incentives. We test ROU assets for impairment in the same manner as long-lived assets, and exclude the related operating lease liability and operating lease payments in our analysis. We elected the following practical expedients permitted under the Lease Standard: • Upon adoption, we did not reassess our prior conclusions about lease identification, lease classification or initial direct costs, and we did not use hindsight for leases existing at adoption date. • We do not record leases with an initial term of 12 months or less on the balance sheet but continue to expense them on a straight-line basis over the lease term. • We combine lease and non-lease components. We lease the land, buildings, or land and buildings for many of our stores, office facilities and Supply Chain Network facilities. We also lease equipment and have service contracts including transportation agreements and warehouse agreements where we control identified assets such as vehicles, warehouse space and equipment and therefore represent embedded leases under the Lease Standard. Before 2019, we recognized minimum rent expense, net of developer reimbursements, on a straight-line basis over the minimum lease term from the time we controlled the leased property. For scheduled rent escalation clauses during the lease terms, we recorded minimum rent expense on a straight-line basis over the terms of the leases, with the adjustments accrued as current and non-current deferred rent and included in other current liabilities and other liabilities on our Consolidated Balance Sheet. Contingent rental payments, typically based on a percentage of sales, were recognized in rent expense primarily in occupancy costs when payment of the contingent rent was probable. |
Land, Property and Equipment | Land, Property and Equipment Land is recorded at historical cost, while property and equipment are recorded at cost less accumulated depreciation and amortization. Capitalized software includes the costs of developing or obtaining internal-use software, including external direct costs of materials and services and internal payroll costs related to the software project. We capitalize interest on construction in progress and software projects during the period in which expenditures have been made, activities are in progress to prepare the asset for its intended use and actual interest costs are being incurred. Depreciation and amortization are computed using the straight-line method over the asset’s estimated useful life, which is determined by asset category as follows: Asset Life (in years) Buildings and improvements 5 – 40 Store fixtures and equipment 3 – 15 Leasehold improvements 5 – 40 Capitalized software 2 – 7 Leasehold improvements and leased property and equipment that are purchased at the inception of the lease, or during the lease term, are amortized over the shorter of the lease term or the asset life. Lease terms include the fixed, non-cancellable term of a lease, plus any renewal periods determined to be reasonably assured. We receive contributions from vendors for the construction of certain fixtures in our stores. |
Goodwill | Goodwill Goodwill represents the excess of acquisition cost over the fair value of the related net assets acquired and is not subject to amortization. We review our goodwill annually for impairment or when circumstances indicate that the carrying value may exceed the fair value. As a result of early adopting ASU 2017-04 in the fourth quarter of 2019 (see the Recent Accounting Pronouncements section), we perform this evaluation at the reporting unit level, all within our Retail segment, comprised of the principal business units within our Retail segment, through the application of a quantitative fair value test. We compare the carrying value of the reporting unit to its estimated fair value, which is based on the expected present value of future cash flows (income approach), comparable public companies and acquisitions (market approach), or a combination of both. If fair value is lower than the carrying value, an impairment charge is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The following summarizes our goodwill activity for the past three fiscal years: Goodwill Balance at January 28, 2017 $238 Additions — Balance at February 3, 2018 238 Additions 11 Balance at February 2, 2019 249 Additions — Balance at February 1, 2020 $249 Prior to the fourth quarter of 2019, we allocated goodwill to three reporting units, including Trunk Club, NRHL and Nordstrom U.S. We reviewed Trunk Club and NRHL goodwill as of the first day of the fourth quarter and Nordstrom U.S. goodwill as of the first day of the first quarter. We are integrating Trunk Club into our Full-Price business to enable a superior experience for customers, drive more business and gain efficiencies. As a result of this strategic change, Trunk Club is no longer a separate reporting unit and our Trunk Club and Nordstrom U.S. goodwill is now allocated to our Full-Price operating segment as of the fourth quarter of 2019. In connection with this change, we voluntarily elected to change our testing date to the first day of the fourth quarter, which better aligns with the timing of our long-term planning process. This accounting policy change is preferable to management, is not material, is not expected to produce different impairment results and did not result in a goodwill impairment charge in 2019. We continue to make investments in evolving the customer experience, with a strong emphasis on integrating technology across our business. To support these efforts, we acquired two retail technology companies during 2018 and recorded $11 of goodwill from these acquisitions. Therefore, in 2018, we allocated this goodwill to our Nordstrom U.S. reporting unit, as the investments primarily benefit Nordstrom FLS and Nordstrom.com. |
Long-Lived Assets | Long-Lived Assets When facts and circumstances indicate that the carrying values of certain long-lived assets, including buildings, equipment, amortizable intangible and ROU assets, may be impaired, we perform an evaluation of recoverability by comparing the carrying values of the net assets to their related projected undiscounted future cash flows, in addition to other quantitative and qualitative analyses. Land, property and equipment are grouped at the lowest level at which there are identifiable cash flows when assessing impairment, while cash flows for our retail store assets are identified at the individual store level. Amortization expense for acquired intangibles was $7 , $11 and $11 in 2019 , 2018 and 2017 . In 2019 , as a result of the Trunk Club integration, we fully impaired the remaining acquired Trunk Club intangible asset and recorded a loss of $11 . No future amortization expense will be recorded. |
Self-Insurance | Self-Insurance We retain a portion of the risk for certain losses related to employee health and welfare, workers’ compensation and other liability claims. Liabilities associated with these losses include undiscounted estimates of both losses reported and losses incurred but not yet reported. We estimate our ultimate cost using an actuarially-based analysis of claims experience, regulatory changes and other relevant factors. |
Foreign Currency | Foreign Currency We have six Nordstrom FLS in Canada and six Nordstrom Rack stores in Canada. The functional currency of our Canadian operation is the Canadian Dollar. We translate assets and liabilities into U.S. Dollars using the exchange rate in effect at the balance sheet date, while we translate revenues and expenses using an average exchange rate for the period. We record these translation adjustments as a component of accumulated other comprehensive loss on the Consolidated Balance Sheets . In addition, our U.S. operation incurs certain expenditures denominated in Canadian Dollars and our Canadian operation incurs certain expenditures denominated in U.S. Dollars. This activity results in transaction gains and losses that arise from exchange rate fluctuations, which are recorded as gains or losses in the Consolidated Statements of Earnings . As of February 1, 2020 , activities associated with foreign currency exchange risk have not had a material impact on our Consolidated Financial Statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04, Intangibles — Goodwill and Other: Simplifying the Test for Goodwill Impairment , which simplifies the accounting for goodwill impairment by eliminating step two from the goodwill impairment test. This guidance is effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2019, with early adoption permitted. We have elected to early adopt this ASU effective the beginning of the fourth quarter of 2019. Our adoption of this standard was not material to our Consolidated Financial Statements. In March 2019, we adopted the SEC’s rule on FAST Act Modernization and Simplification of Regulation S-K . The amendment aims to modernize and simplify certain reporting requirements and improve readability and navigability between disclosures. This final rule was effective for the first quarter of 2019. Our adoption of this final rule did not have a material effect on our Consolidated Financial Statements. |
Earnings Per Share | NOTE 15: EARNINGS PER SHARE |
Segment Reporting | Accounting Policy We present our segment results for all years in the way that management views our results internally, including presenting 2019 and 2018 under the Revenue Standard while prior period amounts are not adjusted. For 2019 and 2018, we generally use the same methodology to compute earnings before income taxes for our reportable segment as we do for the consolidated Company. As a result, for our Retail segment in 2019 and 2018, we defer a portion of underlying sales revenue as customers earn points and Nordstrom Notes in The Nordy Club, based on an estimated stand-alone selling price of primarily points and Nordstrom Notes, and recognize the deferred revenue and related cost of sales when the Nordstrom Notes are ultimately redeemed. For 2017, prior to the adoption of the Revenue Standard, we estimated the net cost of Nordstrom Notes to be issued and redeemed. We recorded this cost as reward points were accumulated in cost of sales in our total company results. The related Nordstrom Notes expenses were included at face value in the Retail segment. As a result, our Corporate/Other column included an adjustment to reduce the Nordstrom Notes expense from face value to their estimated cost. In addition, the full amount of redemptions of our Nordstrom Notes were included in net sales for our Retail segment. The net sales amount in our Corporate/Other column primarily related to an entry to eliminate these transactions from our consolidated net sales. The impact of these types of adjustments on Retail segment EBIT and Corporate/Other loss before interest and income taxes in 2017 would be immaterial. Other than as described above, the accounting policies of our reportable segment are the same as those described in Note 1: Nature of Operations and Summary of Significant Accounting Policies . |
Nature Of Operations And Summ_3
Nature Of Operations And Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Vendor Allowances | Vendor allowances earned are as follows: Fiscal year 2019 2018 2017 Cosmetic expenses $140 $149 $159 Purchase price adjustments 171 180 184 Advertising 101 115 107 Other 6 6 7 Total vendor allowances $418 $450 $457 |
Estimated Useful Life Of Land, Property And Equipment By Asset Category | Depreciation and amortization are computed using the straight-line method over the asset’s estimated useful life, which is determined by asset category as follows: Asset Life (in years) Buildings and improvements 5 – 40 Store fixtures and equipment 3 – 15 Leasehold improvements 5 – 40 Capitalized software 2 – 7 |
Summary Of Goodwill Activity | The following summarizes our goodwill activity for the past three fiscal years: Goodwill Balance at January 28, 2017 $238 Additions — Balance at February 3, 2018 238 Additions 11 Balance at February 2, 2019 249 Additions — Balance at February 1, 2020 $249 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Components Of Lease Cost | The following table summarizes the components of lease cost: Fiscal year 2019 Operating Lease Cost $278 Variable lease cost 1 105 Sublease income (9 ) Total lease cost, net $374 1 Variable lease cost includes short-term lease cost, which was immaterial for the year ended February 1, 2020 . |
Future Lease Payments | The following table summarizes future lease payments as of February 1, 2020 : Fiscal year Operating Leases 2020 $333 2021 353 2022 327 2023 300 2024 252 Thereafter 1,136 Total lease payments 2,701 Less: amount representing interest (582 ) Present value of net lease payments 1 $2,119 1 Total lease payments exclude $12 of lease payments for operating leases that were signed but have not yet commenced. |
Supplemental Lease Information | The following table includes supplemental information: Fiscal year 2019 Cash paid related to operating lease liabilities $360 Operating lease interest 101 Operating lease liabilities arising upon adoption of the Lease Standard 2,224 Operating lease liabilities arising from the commencement of lease agreements 150 Cash received from developer reimbursements 79 Amortization of developer reimbursements 75 February 1, 2020 Weighted-average remaining lease term 10 years Weighted-average discount rate 4.7 % |
Schedule Of Rent Expense | The following table summarizes rent expense before adoption of the Lease Standard: Fiscal year 2018 2017 Minimum rent $321 $318 Percentage rent 9 11 Property incentives (79 ) (79 ) Total rent expense $251 $250 |
Future Minimum Lease Payments | The following table summarizes future minimum lease payments as of February 2, 2019, before adoption of the Lease Standard: Fiscal year Operating Leases 2019 $322 2020 313 2021 294 2022 271 2023 249 Thereafter 1,160 Total minimum lease payments $2,609 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Summary Of Contract Liabilities | Our contract liabilities are classified as current on the Consolidated Balance Sheet and are as follows: Contract Liabilities Opening balance as of February 4, 2018 $498 Balance as of February 2, 2019 548 Balance as of February 1, 2020 576 |
Disaggregated Net Sales | The following table summarizes our disaggregated net sales: Fiscal year 2019 2018 2017 Net sales by business 1 : Full-Price $9,943 $10,299 $10,452 Off-Price 5,189 5,181 4,956 Other — — (271 ) Total net sales $15,132 $15,480 $15,137 Digital sales as % of net sales 33 % 30 % 27 % 1 We present our sales in the way that management views our results internally, including presenting 2019 and 2018 under the Revenue Standard while prior period amounts are not adjusted and allocating our sales return allowance and loyalty related adjustments to Full-Price and Off-Price. For 2017, Other primarily included unallocated sales return, in-transit and loyalty related adjustments necessary to reconcile sales by business to total net sales. If we applied the sales return allowance allocation and the loyalty related adjustments to 2017, Full-Price net sales would decrease $211 , Off-Price net sales would decrease $60 and Other net sales would increase $271 . |
Percent Of Net Sales By Merchandise Category Summary | The following table summarizes the percent of net sales by merchandise category: Fiscal year 2019 2018 2017 Women’s Apparel 31 % 32 % 32 % Shoes 24 % 24 % 23 % Men’s Apparel 16 % 16 % 16 % Women’s Accessories 11 % 11 % 11 % Beauty 11 % 11 % 11 % Kids’ Apparel 4 % 4 % 4 % Other 3 % 2 % 3 % Total net sales 100 % 100 % 100 % |
Land, Property And Equipment (T
Land, Property And Equipment (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule Of Land, Property And Equipment | Land, property and equipment consist of the following: February 1, 2020 February 2, 2019 Land and land improvements $288 $111 Buildings and building improvements 1,591 1,240 Leasehold improvements 3,263 3,152 Store fixtures and equipment 4,015 3,832 Capitalized software 1,547 1,492 Construction in progress 470 741 Land, property and equipment 11,174 10,568 Less: accumulated depreciation and amortization (6,995 ) (6,647 ) Land, property and equipment, net $4,179 $3,921 |
Self-Insurance (Tables)
Self-Insurance (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Self Insurance [Abstract] | |
Summary Of Self-Insurance Reserves | Our self-insurance reserves are summarized as follows: February 1, 2020 February 2, 2019 Workers’ compensation $79 $77 Employee health and welfare 25 25 Other liability 14 15 Total self-insurance reserve $118 $117 |
Postretirement Benefits (Tables
Postretirement Benefits (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Benefit Obligations And Funded Status | Our benefit obligation and funded status is as follows: February 1, 2020 February 2, 2019 Change in benefit obligation: Benefit obligation at beginning of year $190 $200 Participant service cost 2 2 Interest cost 7 7 Benefits paid (9 ) (9 ) Actuarial loss (gain) 34 (10 ) Benefit obligation at end of year 224 190 Change in plan assets: Fair value of plan assets at beginning of year — — Employer contribution 9 9 Benefits paid (9 ) (9 ) Fair value of plan assets at end of year — — Underfunded status at end of year ($224 ) ($190 ) |
Amounts Recognized As Liabilities In The Consolidated Balance Sheets | Amounts recognized as liabilities in the Consolidated Balance Sheets consist of the following: February 1, 2020 February 2, 2019 Accrued salaries, wages and related benefits $11 $10 Other liabilities (noncurrent) 213 180 Net amount recognized $224 $190 |
Components Of SERP Expense Recognized In The Consolidated Statements Of Earnings | The components of SERP expense recognized in the Consolidated Statements of Earnings are as follows: Fiscal year 2019 2018 2017 Participant service cost $2 $2 $3 Interest cost 7 7 7 Amortization of net loss and other 1 5 3 Total SERP expense $10 $14 $13 |
Amounts Not Yet Reflected In SERP Expense And Included In Accumulated Other Comprehensive Loss (Pre-Tax) | Amounts not yet reflected in SERP expense and included in accumulated other comprehensive loss (pre-tax) consist of the following: February 1, 2020 February 2, 2019 Accumulated loss ($62 ) ($30 ) Prior service credit — 1 Total accumulated other comprehensive loss ($62 ) ($29 ) |
Weighted-Average Assumptions Used To Determine Benefit Obligations And SERP Expense | Weighted-average assumptions used to determine our benefit obligation and SERP expense are as follows: Fiscal year 2019 2018 2017 Assumptions used to determine benefit obligation: Discount rate 2.97 % 4.27 % 3.95 % Rate of compensation increase 2.50 % 2.50 % 3.00 % Assumptions used to determine SERP expense: Discount rate 4.27 % 3.95 % 4.31 % Rate of compensation increase 2.50 % 3.00 % 3.00 % |
Expected Future Benefit Payments Including Benefits Attributable To Estimated Future Employee Service | As of February 1, 2020 , the expected future benefit payments based upon the assumptions described above and including benefits attributable to estimated future employee service are as follows: Fiscal year 2020 $11 2021 11 2022 11 2023 12 2024 12 2025 – 2029 62 |
Debt And Credit Facilities (Tab
Debt And Credit Facilities (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Debt Disclosure [Abstract] | |
Summary Of Long-Term Debt | A summary of our long-term debt is as follows: February 1, 2020 February 2, 2019 Long-term debt, net of unamortized discount: Senior notes, 4.75%, due May 2020 $— $500 Senior notes, 4.00%, due October 2021 500 500 Senior notes, 4.00%, due March 2027 349 349 Senior debentures, 6.95%, due March 2028 300 300 Senior notes, 4.375%, due April 2030 500 — Senior notes, 7.00%, due January 2038 147 146 Senior notes, 5.00%, due January 2044 897 895 Other 1 (17 ) (5 ) Total long-term debt 2,676 2,685 Less: current portion — (8 ) Total due beyond one year $2,676 $2,677 1 Other primarily includes deferred bond issue costs. |
Schedule Of Required Principal Payments On Long-Term Debt | Required principal payments on long-term debt are as follows: Fiscal year 2020 $— 2021 500 2022 — 2023 — 2024 — Thereafter 2,264 |
Components Of Interest Expense, Net | The components of interest expense, net are as follows: Fiscal year 2019 2018 2017 Interest on long-term debt and short-term borrowings $151 $146 $168 Less: Interest income (10 ) (15 ) (5 ) Capitalized interest (39 ) (27 ) (27 ) Interest expense, net $102 $104 $136 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary Of Carrying Value And Fair Value Estimate Of Long-Term Debt, Including Current Maturities | The following table summarizes the carrying value and fair value estimate of our long-term debt, including current maturities: February 1, 2020 February 2, 2019 Carrying value of long-term debt $2,676 $2,685 Fair value of long-term debt 2,905 2,692 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Stockholders' Equity Note [Abstract] | |
Summary Of Share Repurchase Activity | The following is a summary of the activity related to our share repurchase programs in 2019 , 2018 , and 2017 : Shares Average price per share Amount Capacity at January 28, 2017 $529 February 2017 authorization (ended August 31, 2018) 500 Shares repurchased 4.6 $45 (206 ) Expiration of unused October 2015 authorization capacity in March 2017 (409 ) Capacity at February 3, 2018 414 August 2018 authorization (no expiration) 1,500 Shares repurchased 14.3 $49 (702 ) Expiration of unused February 2017 authorization capacity in August 2018 (319 ) Capacity at February 2, 2019 893 Shares repurchased 4.1 $45 (186 ) Capacity at February 1, 2020 $707 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Stock-Based Compensation Expense | The following table summarizes our stock-based compensation expense: Fiscal year 2019 2018 2017 RSUs $49 $71 $51 Stock options 11 12 18 Other 1 9 7 8 Total stock-based compensation expense, before income tax benefit 69 90 77 Income tax benefit (18 ) (23 ) (20 ) Total stock-based compensation expense, net of income tax benefit $51 $67 $57 1 Other stock-based compensation expense includes PSUs, ESPP and nonemployee director stock awards. |
Stock-Based Compensation Expense Before Income Tax Benefit | The stock-based compensation expense before income tax benefit was recorded in our Consolidated Statements of Earnings as follows: Fiscal year 2019 2018 2017 Cost of sales and related buying and occupancy costs $20 $28 $25 SG&A expenses 49 62 52 Total stock-based compensation expense, before income tax benefit $69 $90 $77 |
Assumptions To Estimate The Fair Value For Stock Options At Grant Date | We used the following assumptions to estimate the fair value for stock options at each grant date (excluding options granted in connection with the Trunk Club acquisition): Fiscal year 1 2019 2017 Assumptions Risk-free interest rate: Represents the yield on U.S. Treasury zero-coupon securities that mature over the 10-year life of the stock options. 2.5% – 2.7% 1.0% – 2.5% Weighted-average volatility: Based on a combination of the historical volatility of our common stock and the implied volatility of exchange-traded options for our common stock. 34.6 % 40.1 % Weighted-average expected dividend yield: Our forecasted dividend yield for the next 10 years. 1.9 % 2.4 % Expected life in years: Represents the estimated period of time until option exercise. The expected term of options granted was derived from the output of the Binomial Lattice option valuation model and was based on our historical exercise behavior, taking into consideration the contractual term of the option and our employees’ expected exercise and post-vesting employment termination behavior. 6.8 7.1 Grant Date Information Date of grant March 5, 2019 February 28, 2017 Weighted-average fair value per option $15 $16 Exercise price per option $45 $47 1 There were no stock options granted in 2018. |
Summary Of Stock Option Activity | A summary of stock option activity for 2019 is presented below: Fiscal year 2019 Shares Weighted- average exercise price Weighted-average remaining contractual life (years) Aggregate intrinsic value Outstanding, beginning of year 8.4 $53 Granted 1.0 45 Exercised (0.4 ) 30 Forfeited or cancelled (0.7 ) 54 Outstanding, end of year 8.3 $53 5 $132 Vested, end of year 6.9 $54 4 $118 Vested or expected to vest, end of year 8.1 $53 5 $130 Fiscal year 2019 2018 2017 Aggregate intrinsic value of options exercised $5 $67 $13 Fair value of stock options vested $17 $22 $34 |
Restricted stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Restricted Stock Unit Activity | A summary of restricted stock unit activity for 2019 is presented below: Fiscal year 2019 Shares Weighted-average grant date fair value per unit Outstanding, beginning of year 3.9 $47 Granted 1.5 39 Vested (1.6 ) 46 Forfeited or cancelled (0.6 ) 45 Outstanding, end of year 3.2 $44 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
U.S. And Foreign Components Of Earnings Before Income Taxes | U.S. and foreign components of earnings before income taxes were as follows: Fiscal year 2019 2018 2017 U.S. $654 $792 $803 Foreign 28 (59 ) (13 ) Earnings before income taxes $682 $733 $790 |
Components Of Income Tax Expense | Income tax expense consists of the following: Fiscal year 2019 2018 2017 Current income taxes: Federal $90 $147 $291 State and local 44 56 51 Total current income tax expense 134 203 342 Deferred income taxes: Federal 43 (5 ) 10 State and local 3 (3 ) 1 Foreign 6 (26 ) — Total deferred income tax expense (benefit) 52 (34 ) 11 Total income tax expense $186 $169 $353 |
Reconciliation Of Statutory To Effective Tax Rate | A reconciliation of the statutory federal income tax rate to the effective tax rate on earnings before income taxes is as follows: Fiscal year 2019 2018 2017 Statutory rate 21.0 % 21.0 % 33.7 % Tax Act impact — (0.1 %) 6.1 % State and local income taxes, net of federal income taxes 5.4 % 5.8 % 4.5 % Federal credits (0.9 %) (1.5 %) (0.7 %) Valuation allowance release — (1.2 %) — Other, net 1.8 % (0.9 %) 1.1 % Effective tax rate 27.3 % 23.1 % 44.7 % |
Components Of Deferred Tax Assets And Liabilities | The components of deferred tax assets and liabilities are as follows: February 1, 2020 February 2, 2019 Deferred tax assets: Lease liabilities $555 $— Compensation and benefits accruals 145 139 Allowance for sales returns 47 52 Accrued expenses 29 28 Merchandise inventories 20 20 Gift cards 39 26 Loyalty program 10 12 Net operating losses 33 41 Other 5 5 Total deferred tax assets 883 323 Valuation allowance (41 ) (43 ) Total net deferred tax assets 842 280 Deferred tax liabilities: ROU assets (377 ) — Land, property and equipment basis and depreciation differences (312 ) (94 ) Debt exchange premium (13 ) (13 ) Total deferred tax liabilities (702 ) (107 ) Net deferred tax assets $140 $173 |
Reconciliation Of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Fiscal year 2019 2018 2017 Unrecognized tax benefit at beginning of year $30 $31 $32 Gross increase to tax positions in prior periods — 9 2 Gross decrease to tax positions in prior periods — (14 ) (7 ) Gross increase to tax positions in current period 3 6 5 Lapses in statute (1 ) (2 ) (1 ) Settlements (10 ) — — Unrecognized tax benefit at end of year $22 $30 $31 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Earnings Per Share [Abstract] | |
Computation Of Earnings Per Share | The computation of earnings per share is as follows: Fiscal year 2019 2018 2017 Net earnings $496 $564 $437 Basic shares 155.2 167.3 166.8 Dilutive effect of common stock equivalents 0.9 2.7 2.1 Diluted shares 156.1 170.0 168.9 Earnings per basic share $3.20 $3.37 $2.62 Earnings per diluted share $3.18 $3.32 $2.59 Anti-dilutive common stock equivalents 10.0 5.2 10.5 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Segment Reporting [Abstract] | |
Information By Reportable Segment | The following table sets forth information for our reportable segment: Retail Corporate/Other Total Fiscal year 2019 Net sales $15,132 $— $15,132 Credit card revenues, net — 392 392 Earnings (loss) before interest and income taxes 1,028 (244 ) 784 Interest expense, net — (102 ) (102 ) Earnings (loss) before income taxes 1,028 (346 ) 682 Capital expenditures (726 ) (209 ) (935 ) Depreciation and amortization (428 ) (233 ) (661 ) Assets 1 6,831 2,906 9,737 Fiscal year 2018 Net sales $15,480 $— $15,480 Credit card revenues, net — 380 380 Earnings (loss) before interest and income taxes 2 1,059 (222 ) 837 Interest expense, net — (104 ) (104 ) Earnings (loss) before income taxes 2 1,059 (326 ) 733 Capital expenditures (415 ) (239 ) (654 ) Depreciation and amortization (436 ) (233 ) (669 ) Assets 5,300 2,586 7,886 Fiscal year 2017 Net sales $15,408 ($271 ) $15,137 Credit card revenues, net — 341 341 Earnings (loss) before interest and income taxes 2 1,083 (157 ) 926 Interest expense, net — (136 ) (136 ) Earnings (loss) before income taxes 2 1,083 (293 ) 790 Capital expenditures (516 ) (215 ) (731 ) Depreciation and amortization (445 ) (221 ) (666 ) Assets 5,477 2,638 8,115 1 In 2019, we adopted the Lease Standard using the transition method provided in ASU 2018-11. See Note 2: Leases for further information. 2 |
Selected Quarterly Data (Unau_2
Selected Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule Of Quarterly Financial Information | 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Fiscal year 2019 Net sales $3,349 $3,778 $3,566 $4,439 $15,132 Credit card revenues, net 94 94 106 99 392 Gross profit 1,121 1,302 1,222 1,555 5,200 SG&A expenses (1,138 ) (1,180 ) (1,135 ) (1,355 ) (4,808 ) EBIT 2 77 216 193 299 784 Net earnings 2 37 141 126 193 496 Earnings per basic share $0.24 $0.91 $0.81 $1.24 $3.20 Earnings per diluted share 2 $0.23 $0.90 $0.81 $1.23 $3.18 Dividends per share $0.37 $0.37 $0.37 $0.37 $1.48 Fiscal year 2018 Net sales $3,469 $3,980 $3,648 $4,383 $15,480 Credit card revenues, net 92 87 100 101 380 Gross profit 1,181 1,391 1,213 1,540 5,325 SG&A expenses (1,120 ) (1,232 ) (1,208 ) (1,308 ) (4,868 ) EBIT 3 153 246 105 333 837 Net earnings 3 87 162 67 248 564 Earnings per basic share $0.52 $0.97 $0.40 $1.50 $3.37 Earnings per diluted share 3 $0.51 $0.95 $0.39 $1.48 $3.32 Dividends per share $0.37 $0.37 $0.37 $0.37 $1.48 1 Quarterly totals may not foot across due to rounding. 2 In the fourth quarter of 2019, we incurred charges related to the integration of Trunk Club and debt refinancing costs, which reduced net earnings by $29 , or $0.19 per diluted share. The integration charges reduced earnings before interest and income taxes by $32 and debt refinancing costs increased interest expense by $8 . 3 Results in the third quarter of 2018 include the Estimated Non-recurring Charge of $72 , or $49 net of tax, and $0.28 per diluted share (see Note 1: Nature of Operations and Summary of Significant Accounting Policies ). |
Nature Of Operations And Summ_4
Nature Of Operations And Summary Of Significant Accounting Policies (Vendor Allowances) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Nature Of Retail Operations [Line Items] | |||
Total vendor allowances | $ 418 | $ 450 | $ 457 |
Cosmetic expenses [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Total vendor allowances | 140 | 149 | 159 |
Purchase price adjustments [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Total vendor allowances | 171 | 180 | 184 |
Advertising [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Total vendor allowances | 101 | 115 | 107 |
Other [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Total vendor allowances | $ 6 | $ 6 | $ 7 |
Nature Of Operations And Summ_5
Nature Of Operations And Summary Of Significant Accounting Policies (Estimated Useful Life of Land, Property And Equipment By Asset Category) (Details) | 12 Months Ended |
Feb. 01, 2020 | |
Buildings and improvements [Member] | Minimum [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 5 years |
Buildings and improvements [Member] | Maximum [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 40 years |
Store fixtures and equipment [Member] | Minimum [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 3 years |
Store fixtures and equipment [Member] | Maximum [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 15 years |
Leasehold improvements [Member] | Minimum [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 5 years |
Leasehold improvements [Member] | Maximum [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 40 years |
Capitalized software [Member] | Minimum [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 2 years |
Capitalized software [Member] | Maximum [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 7 years |
Nature Of Operations And Summ_6
Nature Of Operations And Summary Of Significant Accounting Policies (Summary Of Goodwill Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Goodwill Disclosure [Abstract] | ||||
Goodwill | $ 249 | $ 249 | $ 238 | $ 238 |
Additions | $ 0 | $ 11 | $ 0 |
Nature Of Operations And Summ_7
Nature Of Operations And Summary Of Significant Accounting Policies (Narrative) (Details) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 9 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||||||||||||
Feb. 03, 2018USD ($) | Mar. 20, 2020USD ($) | Feb. 01, 2020USD ($)storestateprovince | Nov. 02, 2019USD ($) | [1] | Aug. 03, 2019USD ($) | [1] | May 04, 2019USD ($) | [1] | Feb. 02, 2019USD ($) | Nov. 03, 2018USD ($) | Aug. 04, 2018USD ($) | [1] | May 05, 2018USD ($) | Nov. 02, 2019 | Dec. 31, 2017 | Feb. 01, 2020USD ($)storestateprovincebusinesses | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | Jan. 28, 2017USD ($) | |||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Number of states in which company operates | state | 40 | 40 | ||||||||||||||||||||||
Number of provinces in which the company operates | province | 3 | 3 | ||||||||||||||||||||||
Cash and cash equivalents | $ 1,181,000,000 | $ 853,000,000 | $ 957,000,000 | $ 853,000,000 | $ 957,000,000 | $ 1,181,000,000 | $ 1,007,000,000 | |||||||||||||||||
Other current liabilities | 1,190,000,000 | 1,324,000,000 | 1,190,000,000 | 1,324,000,000 | ||||||||||||||||||||
Outstanding gift card liability | 414,000,000 | 389,000,000 | 414,000,000 | 389,000,000 | ||||||||||||||||||||
Gift card breakage income | 17,000,000 | 14,000,000 | 16,000,000 | |||||||||||||||||||||
Estimated Nordstrom cardmembers to receive a refund | 4.00% | |||||||||||||||||||||||
Amount of customer refund or credit | $ 100 | |||||||||||||||||||||||
Advertising expense, net of vendor allowances | 299,000,000 | 246,000,000 | 261,000,000 | |||||||||||||||||||||
Selling, general and administrative expenses | 1,355,000,000 | [1] | $ 1,135,000,000 | $ 1,180,000,000 | $ 1,138,000,000 | 1,308,000,000 | [1] | 1,208,000,000 | [1] | $ 1,232,000,000 | $ 1,120,000,000 | [1] | $ 4,808,000,000 | $ 4,868,000,000 | $ 4,662,000,000 | |||||||||
U.S. federal corporate income tax statutory rate | 21.00% | 35.00% | 21.00% | 21.00% | 33.70% | |||||||||||||||||||
Checks not yet presented for payment drawn in excess of bank deposit balances | 110,000,000 | 102,000,000 | $ 110,000,000 | $ 102,000,000 | ||||||||||||||||||||
Number of reporting units | 3 | |||||||||||||||||||||||
Goodwill | $ 238,000,000 | 249,000,000 | 249,000,000 | 249,000,000 | 249,000,000 | $ 238,000,000 | $ 238,000,000 | |||||||||||||||||
Amortization expense of intangible assets | 7,000,000 | 11,000,000 | 11,000,000 | |||||||||||||||||||||
Impairment of intangible assets | 11,000,000 | |||||||||||||||||||||||
No future amortization expense will be recorded | 0 | $ 0 | ||||||||||||||||||||||
Series of Individually Immaterial Business Acquisitions [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Number of retail technology companies acquired | businesses | 2 | |||||||||||||||||||||||
Goodwill | $ 11,000,000 | |||||||||||||||||||||||
Shipping and handling [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Selling, general and administrative expenses | $ 627,000,000 | 589,000,000 | $ 523,000,000 | |||||||||||||||||||||
Pre-Tax [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Pre-tax dollar impact of Estimated Non-recurring Charge | 72,000,000 | |||||||||||||||||||||||
Post-Tax [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Pre-tax dollar impact of Estimated Non-recurring Charge | $ 49,000,000 | |||||||||||||||||||||||
Nordstrom Rewards [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Other current liabilities | $ 162,000,000 | $ 159,000,000 | $ 162,000,000 | 159,000,000 | ||||||||||||||||||||
Loyalty Program, Nordstrom Notes [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Breakage rate | 8.00% | 8.00% | ||||||||||||||||||||||
Average period between issuance and redemption | 9 months | |||||||||||||||||||||||
Loyalty Program, Points [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Breakage rate | 16.00% | 16.00% | ||||||||||||||||||||||
Gift Cards [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Breakage rate | 2.00% | 2.00% | ||||||||||||||||||||||
Average period between issuance and redemption | 2 years | |||||||||||||||||||||||
Accounting Standards Update 2014-09 [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Cumulative effect of adopted accounting standards | 55,000,000 | |||||||||||||||||||||||
Accounting Standards Update 2018-02 [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Cumulative effect of adopted accounting standards | $ 5,000,000 | |||||||||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Draw down on our Revolver | $ 800,000,000 | |||||||||||||||||||||||
Unsecured revolving credit facility [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Option to increase the maximum capacity of revolving credit facility | $ 200,000,000 | $ 200,000,000 | ||||||||||||||||||||||
Maximum borrowing capacity | 1,000,000,000 | 1,000,000,000 | ||||||||||||||||||||||
Commercial Paper [Member] | Unsecured revolving credit facility [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Total short-term borrowing capacity | $ 800,000,000 | $ 800,000,000 | ||||||||||||||||||||||
Nordstrom - U.S. [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Number of retail channels | store | 110 | 110 | ||||||||||||||||||||||
Nordstrom Canada [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Number of retail channels | store | 6 | 6 | ||||||||||||||||||||||
Nordstrom Rack [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Number of retail channels | store | 248 | 248 | ||||||||||||||||||||||
Nordstrom Rack [Member] | Canada [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Number of retail channels | store | 6 | 6 | ||||||||||||||||||||||
Jeffrey [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Number of retail channels | store | 3 | 3 | ||||||||||||||||||||||
Last Chance [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Number of retail channels | store | 2 | 2 | ||||||||||||||||||||||
Trunk Club [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Number of retail channels | store | 6 | 6 | ||||||||||||||||||||||
Nordstrom Local [Member] | ||||||||||||||||||||||||
Nature Of Retail Operations [Line Items] | ||||||||||||||||||||||||
Number of retail channels | store | 5 | 5 | ||||||||||||||||||||||
[1] | Quarterly totals may not foot across due to rounding. |
Leases (Components Of Lease Cos
Leases (Components Of Lease Cost) (Details) $ in Millions | 12 Months Ended | |
Feb. 01, 2020USD ($) | ||
Leases [Abstract] | ||
Operating Lease Cost | $ 278 | |
Variable lease cost | 105 | [1] |
Sublease income | (9) | |
Total lease cost, net | $ 374 | |
[1] | Variable lease cost includes short-term lease cost, which was immaterial for the year ended February 1, 2020 . |
Leases (Future Lease Payments)
Leases (Future Lease Payments) (Details) $ in Millions | Feb. 01, 2020USD ($) | |
Leases [Abstract] | ||
2020 | $ 333 | |
2021 | 353 | |
2022 | 327 | |
2023 | 300 | |
2024 | 252 | |
Thereafter | 1,136 | |
Total lease payments | 2,701 | |
Less: amount representing interest | (582) | |
Present value of net lease payments | 2,119 | [1] |
Lease payments for operating leases that have not yet commenced | $ 12 | |
[1] | Total lease payments exclude $12 of lease payments for operating leases that were signed but have not yet commenced. |
Leases (Supplemental Lease Info
Leases (Supplemental Lease Information) (Details) - USD ($) $ in Millions | Feb. 03, 2019 | Feb. 01, 2020 |
Leases [Line Items] | ||
Cash paid related to operating lease liabilities | $ 360 | |
Operating lease interest | 101 | |
Operating lease liabilities arising from the commencement of lease agreements | 150 | |
Cash received from developer reimbursements | 79 | |
Amortization of developer reimbursements | $ 75 | |
Weighted-average remaining lease term | 10 years | |
Weighted-average discount rate | 4.70% | |
Accounting Standards Update 2016-02 [Member] | Lease liabilities [Member] | ||
Leases [Line Items] | ||
Impact of adopting the Lease Standard | $ 2,224 |
Leases (Schedule Of Rent Expens
Leases (Schedule Of Rent Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 02, 2019 | Feb. 03, 2018 | |
Leases [Abstract] | ||
Minimum rent | $ 321 | $ 318 |
Percentage rent | 9 | 11 |
Property incentives | (79) | (79) |
Total rent expense | $ 251 | $ 250 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) $ in Millions | Feb. 02, 2019USD ($) |
Operating leases | |
2019 | $ 322 |
2020 | 313 |
2021 | 294 |
2022 | 271 |
2023 | 249 |
Thereafter | 1,160 |
Total minimum lease payments | $ 2,609 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | Feb. 03, 2019 | Feb. 02, 2019 | Feb. 03, 2018 | Feb. 01, 2020 |
Leases [Line Items] | ||||
Charges not included in rent expense | $ 138 | $ 121 | ||
Nordstrom FLS [Member] | Minimum [Member] | ||||
Leases [Line Items] | ||||
Lease terms | 15 years | |||
Nordstrom FLS [Member] | Maximum [Member] | ||||
Leases [Line Items] | ||||
Lease terms | 30 years | |||
Nordstrom Rack [Member] | ||||
Leases [Line Items] | ||||
Lease terms | 10 years | |||
Other facilities [Member] | Minimum [Member] | ||||
Leases [Line Items] | ||||
Lease terms | 5 years | |||
Other facilities [Member] | Maximum [Member] | ||||
Leases [Line Items] | ||||
Lease terms | 20 years | |||
Assets [Member] | Accounting Standards Update 2016-02 [Member] | ||||
Leases [Line Items] | ||||
Impact of adopting the Lease Standard | $ 1,849 | |||
Liabilities [Member] | Accounting Standards Update 2016-02 [Member] | ||||
Leases [Line Items] | ||||
Impact of adopting the Lease Standard | 1,849 | |||
Reclassification to ROU assets [Member] | Accounting Standards Update 2016-02 [Member] | ||||
Leases [Line Items] | ||||
Impact of adopting the Lease Standard | 568 | |||
Reclassification to liabilities [Member] | Accounting Standards Update 2016-02 [Member] | ||||
Leases [Line Items] | ||||
Impact of adopting the Lease Standard | 339 | |||
Accumulated deficit [Member] | Accounting Standards Update 2016-02 [Member] | ||||
Leases [Line Items] | ||||
Impact of adopting the Lease Standard | $ 25 |
Revenue (Summary Of Contract Li
Revenue (Summary Of Contract Liabilities) (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 04, 2018 |
Revenue from Contract with Customer [Abstract] | |||
Contract liabilities | $ 576 | $ 548 | $ 498 |
Revenue (Disaggregated Net Sale
Revenue (Disaggregated Net Sales) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Feb. 01, 2020 | [1] | Nov. 02, 2019 | [1] | Aug. 03, 2019 | [1] | May 04, 2019 | [1] | Feb. 02, 2019 | [1] | Nov. 03, 2018 | [1] | Aug. 04, 2018 | [1] | May 05, 2018 | [1] | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net sales | $ 4,439 | $ 3,566 | $ 3,778 | $ 3,349 | $ 4,383 | $ 3,648 | $ 3,980 | $ 3,469 | $ 15,132 | $ 15,480 | $ 15,137 | |||||||||
% of net sales | 100.00% | 100.00% | 100.00% | |||||||||||||||||
Digital Sales [Member] | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
% of net sales | 33.00% | 30.00% | 27.00% | |||||||||||||||||
Full-Price [Member] | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net sales | [2] | $ 9,943 | $ 10,299 | $ 10,452 | ||||||||||||||||
Off-Price [Member] | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net sales | [2] | 5,189 | 5,181 | 4,956 | ||||||||||||||||
Other [Member] | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net sales | [2] | $ 0 | $ 0 | $ (271) | ||||||||||||||||
[1] | Quarterly totals may not foot across due to rounding. | |||||||||||||||||||
[2] | We present our sales in the way that management views our results internally, including presenting 2019 and 2018 under the Revenue Standard while prior period amounts are not adjusted and allocating our sales return allowance and loyalty related adjustments to Full-Price and Off-Price. For 2017, Other primarily included unallocated sales return, in-transit and loyalty related adjustments necessary to reconcile sales by business to total net sales. If we applied the sales return allowance allocation and the loyalty related adjustments to 2017, Full-Price net sales would decrease $211 , Off-Price net sales would decrease $60 and Other net sales would increase $271 . |
Revenue (Percent Of Net Sales B
Revenue (Percent Of Net Sales By Merchandise Category Summary) (Details) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Disaggregation of Revenue [Line Items] | |||
% of net sales | 100.00% | 100.00% | 100.00% |
Women's Apparel [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 31.00% | 32.00% | 32.00% |
Shoes [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 24.00% | 24.00% | 23.00% |
Men's Apparel [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 16.00% | 16.00% | 16.00% |
Women's Accessories [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 11.00% | 11.00% | 11.00% |
Beauty [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 11.00% | 11.00% | 11.00% |
Kids' Apparel [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 4.00% | 4.00% | 4.00% |
Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 3.00% | 2.00% | 3.00% |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Feb. 01, 2020 | [1] | Nov. 02, 2019 | [1] | Aug. 03, 2019 | [1] | May 04, 2019 | [1] | Feb. 02, 2019 | [1] | Nov. 03, 2018 | [1] | Aug. 04, 2018 | [1] | May 05, 2018 | [1] | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Revenue recognized from beginning contract liability balance | $ 313 | $ 307 | ||||||||||||||||||
Net sales | $ 4,439 | $ 3,566 | $ 3,778 | $ 3,349 | $ 4,383 | $ 3,648 | $ 3,980 | $ 3,469 | 15,132 | 15,480 | $ 15,137 | |||||||||
Full-Price [Member] | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net sales | [2] | 9,943 | 10,299 | 10,452 | ||||||||||||||||
Off-Price [Member] | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net sales | [2] | 5,189 | 5,181 | 4,956 | ||||||||||||||||
Other [Member] | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net sales | [2] | $ 0 | $ 0 | (271) | ||||||||||||||||
Increase/(Decrease) Affecting Comparability [Member] | Full-Price [Member] | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net sales | 211 | |||||||||||||||||||
Increase/(Decrease) Affecting Comparability [Member] | Off-Price [Member] | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net sales | 60 | |||||||||||||||||||
Increase/(Decrease) Affecting Comparability [Member] | Other [Member] | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net sales | $ 271 | |||||||||||||||||||
[1] | Quarterly totals may not foot across due to rounding. | |||||||||||||||||||
[2] | We present our sales in the way that management views our results internally, including presenting 2019 and 2018 under the Revenue Standard while prior period amounts are not adjusted and allocating our sales return allowance and loyalty related adjustments to Full-Price and Off-Price. For 2017, Other primarily included unallocated sales return, in-transit and loyalty related adjustments necessary to reconcile sales by business to total net sales. If we applied the sales return allowance allocation and the loyalty related adjustments to 2017, Full-Price net sales would decrease $211 , Off-Price net sales would decrease $60 and Other net sales would increase $271 . |
Credit Card Receivable Transa_2
Credit Card Receivable Transaction (Narrative) (Details) $ in Millions | Nov. 01, 2017USD ($) |
Credit Card Receivable Transaction [Abstract] | |
Cash acquired for credit transaction | $ 55 |
Land, Property And Equipment (S
Land, Property And Equipment (Schedule Of Land, Property And Equipment) (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | $ 11,174 | $ 10,568 |
Less: accumulated depreciation and amortization | (6,995) | (6,647) |
Land, property and equipment, net | 4,179 | 3,921 |
Land and land improvements [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | 288 | 111 |
Buildings and building improvements [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | 1,591 | 1,240 |
Leasehold improvements [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | 3,263 | 3,152 |
Store fixtures and equipment [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | 4,015 | 3,832 |
Capitalized software [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | 1,547 | 1,492 |
Construction in progress [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | $ 470 | $ 741 |
Land, Property And Equipment (N
Land, Property And Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Land, Property and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 654 | $ 661 | $ 655 |
Non-cash investing activities for accruals for capital expenditures | $ 60 | ||
Property and equipment [Member] | |||
Land, Property and Equipment [Line Items] | |||
Capital lease obligations | 26 | 26 | |
Accumulated amortization on capital lease obligations | $ 26 | $ 25 |
Self-Insurance (Summary Of Self
Self-Insurance (Summary Of Self-Insurance Reserves) (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Self-insurance reserve [Line Items] | ||
Total self-insurance reserve | $ 118 | $ 117 |
Workers' compensation [Member] | ||
Self-insurance reserve [Line Items] | ||
Total self-insurance reserve | 79 | 77 |
Employee health and welfare [Member] | ||
Self-insurance reserve [Line Items] | ||
Total self-insurance reserve | 25 | 25 |
Other liability [Member] | ||
Self-insurance reserve [Line Items] | ||
Total self-insurance reserve | $ 14 | $ 15 |
Self-Insurance (Narrative) (Det
Self-Insurance (Narrative) (Details) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended |
Mar. 20, 2020 | Feb. 01, 2020 | |
Workers' compensation [Member] | ||
Self-insurance reserve [Line Items] | ||
Self-insurance policy retention per claim | $ 1 | |
Workers' compensation policy limit | 0 | |
Employment practices liability [Member] | ||
Self-insurance reserve [Line Items] | ||
Self-insurance policy limit | 30 | |
Commercial general liability [Member] | ||
Self-insurance reserve [Line Items] | ||
Self-insurance policy limit | 151 | |
Commercial general liability [Member] | Subsequent Event [Member] | ||
Self-insurance reserve [Line Items] | ||
Self-insurance policy limit | $ 101 | |
Other liability [Member] | ||
Self-insurance reserve [Line Items] | ||
Self-insurance policy retention per claim | $ 3 |
401(k) Plan (Narrative) (Detail
401(k) Plan (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
401(K) Plan [Line Items] | |||
Expense related to Company 401(k) plan contributions | $ 85 | $ 102 | $ 110 |
Matching Contributions [Member] | |||
401(K) Plan [Line Items] | |||
Expense related to Company 401(k) plan contributions | 94 | ||
Profit-Sharing Contributions [Member] | |||
401(K) Plan [Line Items] | |||
Expense related to Company 401(k) plan contributions | $ 16 |
Postretirement Benefits (Benefi
Postretirement Benefits (Benefit Obligations And Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Postretirement Benefits Disclosure [Line Items] | ||
Underfunded status at end of year | $ (224) | $ (190) |
Change In Benefit Obligation [Member] | ||
Postretirement Benefits Disclosure [Line Items] | ||
Benefit obligation at beginning of year | 190 | 200 |
Participant service cost | 2 | 2 |
Interest cost | 7 | 7 |
Benefits paid | (9) | (9) |
Actuarial loss (gain) | 34 | (10) |
Benefit obligation at end of year | 224 | 190 |
Change In Plan Assets [Member] | ||
Postretirement Benefits Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | 0 | 0 |
Employer contribution | 9 | 9 |
Benefits paid | (9) | (9) |
Fair value of plan assets at end of year | $ 0 | $ 0 |
Postretirement Benefits (Amount
Postretirement Benefits (Amounts Recognized As Liabilities In The Consolidated Balance Sheets) (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Accrued salaries, wages and related benefits | $ 11 | $ 10 |
Other liabilities (noncurrent) | 213 | 180 |
Net amount recognized | $ 224 | $ 190 |
Postretirement Benefits (Compon
Postretirement Benefits (Components Of SERP Expense Recognized In The Consolidated Statements Of Earnings) (Details) - Components of SERP expense [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Postretirement Benefits Disclosure [Line Items] | |||
Participant service cost | $ 2 | $ 2 | $ 3 |
Interest cost | 7 | 7 | 7 |
Amortization of net loss and other | 1 | 5 | 3 |
Total SERP expense | $ 10 | $ 14 | $ 13 |
Postretirement Benefits (Amou_2
Postretirement Benefits (Amounts Not Yet Reflected In SERP Expense And Included In Accumulated Other Comprehensive Loss (Pre-tax)) (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Accumulated loss | $ (62) | $ (30) |
Prior service credit | 0 | 1 |
Total accumulated other comprehensive loss | $ (62) | $ (29) |
Postretirement Benefits (Weight
Postretirement Benefits (Weighted-Average Assumptions Used To Determine Benefit Obligations And SERP Expense) (Details) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Assumptions used to determine benefit obligation: | |||
Discount rate | 2.97% | 4.27% | 3.95% |
Rate of compensation increase | 2.50% | 2.50% | 3.00% |
Assumptions used to determine SERP expense: | |||
Discount rate | 4.27% | 3.95% | 4.31% |
Rate of compensation increase | 2.50% | 3.00% | 3.00% |
Postretirement Benefits (Expect
Postretirement Benefits (Expected Future Benefit Payments Including Benefits Attributable To Estimated Future Employee Service) (Details) $ in Millions | Feb. 01, 2020USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
2020 | $ 11 |
2021 | 11 |
2022 | 11 |
2023 | 12 |
2024 | 12 |
2025 – 2029 | $ 62 |
Postretirement Benefits (Narrat
Postretirement Benefits (Narrative) (Details) $ in Millions | Feb. 01, 2020USD ($)officerbeneficiaryparticipantretiree | Feb. 02, 2019USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Number of total participants in SERP benefits plan | participant | 57 | |
Number of officers and select employees eligible for SERP benefits | officer | 11 | |
Number of retirees eligible for SERP benefits | retiree | 44 | |
Number of beneficiaries eligible for SERP benefits | beneficiary | 2 | |
Accumulated benefit obligation | $ | $ 222 | $ 188 |
Debt And Credit Facilities (Sum
Debt And Credit Facilities (Summary Of Long-Term Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | ||
Debt Instrument [Line Items] | |||
Long-term debt, net of unamortized discount | $ 2,676 | $ 2,685 | |
Less: current portion | 0 | (8) | |
Total due beyond one year | 2,676 | 2,677 | |
Senior notes, 4.75%, due May 2020, net of unamortized discount [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, net of unamortized discount | $ 0 | $ 500 | |
Debt instrument interest rate | 4.75% | 4.75% | |
Maturity date | May 2020 | May 2020 | |
Senior notes, 4.00%, due October 2021, net of unamortized discount [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, net of unamortized discount | $ 500 | $ 500 | |
Debt instrument interest rate | 4.00% | 4.00% | |
Maturity date | October 2021 | October 2021 | |
Senior notes, 4.00%, due March 2027, net of unamortized discount [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, net of unamortized discount | $ 349 | $ 349 | |
Debt instrument interest rate | 4.00% | 4.00% | |
Maturity date | March 2027 | March 2027 | |
Senior debentures, 6.95%, due March 2028, net of unamortized discount [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, net of unamortized discount | $ 300 | $ 300 | |
Debt instrument interest rate | 6.95% | 6.95% | |
Maturity date | March 2028 | March 2028 | |
Senior notes, 4.375%, due April 2030, net of unamortized discount [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, net of unamortized discount | $ 500 | $ 0 | |
Debt instrument interest rate | 4.375% | 4.375% | |
Maturity date | April 2030 | April 2030 | |
Senior notes, 7.00%, due January 2038, net of unamortized discount [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, net of unamortized discount | $ 147 | $ 146 | |
Debt instrument interest rate | 7.00% | 7.00% | |
Maturity date | January 2038 | January 2038 | |
Senior notes, 5.00%, due January 2044, net of unamortized discount [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, net of unamortized discount | $ 897 | $ 895 | |
Debt instrument interest rate | 5.00% | 5.00% | |
Maturity date | January 2044 | January 2044 | |
Other unsecured debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, net of unamortized discount | [1] | $ (17) | $ (5) |
[1] | Other primarily includes deferred bond issue costs. |
Debt And Credit Facilities (Sch
Debt And Credit Facilities (Schedule Of Required Principal Payments On Long-Term Debt) (Details) $ in Millions | Feb. 01, 2020USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 0 |
2021 | 500 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | $ 2,264 |
Debt And Credit Facilities (Com
Debt And Credit Facilities (Components Of Interest Expense, Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Debt Disclosure [Abstract] | |||
Interest on long-term debt and short-term borrowings | $ 151 | $ 146 | $ 168 |
Less: | |||
Interest income | (10) | (15) | (5) |
Capitalized interest | (39) | (27) | (27) |
Interest expense, net | $ 102 | $ 104 | $ 136 |
Debt And Credit Facilities (Nar
Debt And Credit Facilities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Debt Instrument [Line Items] | |||
Proceeds from long-term borrowings, net of discounts | $ 499 | $ 0 | $ 635 |
Total unsecured debt | 500 | 56 | 661 |
Interest expense, net | $ 102 | 104 | $ 136 |
Basis spread on variable rate | 1.275% | ||
Commercial Paper [Member] | |||
Debt Instrument [Line Items] | |||
Borrowing capacity of current facility | $ 800 | ||
Outstanding borrowings or issuances | $ 0 | ||
2019 Refinancing [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense, net | 8 | ||
Senior notes, 4.375%, due April 2030, net of unamortized discount [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds from long-term borrowings, net of discounts | $ 500 | ||
Debt instrument interest rate | 4.375% | 4.375% | |
Maturity date | April 2030 | April 2030 | |
Senior notes, 4.75%, due May 2020, net of unamortized discount [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 4.75% | 4.75% | |
Maturity date | May 2020 | May 2020 | |
Total unsecured debt | $ 500 | ||
Unsecured revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date | September 2023 | ||
Option to increase the maximum capacity of revolving credit facility | $ 200 | ||
Maximum borrowing capacity | $ 1,000 | ||
Number of options to extend revolver | 2 | ||
Debt covenant leverage ratio | 4 | ||
Outstanding borrowings or issuances | $ 0 | $ 0 | |
Unsecured revolving credit facility [Member] | Commercial Paper [Member] | |||
Debt Instrument [Line Items] | |||
Total short-term borrowing capacity | 800 | ||
Puerto Rico unsecured borrowing facility [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 52 | ||
Debt instrument interest rate | LIBOR plus 1.275% | ||
Full repayment of outstanding Puerto Rico unsecured borrowing facility | $ 47 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary Of Carrying Value And Fair Value Estimate Of Long-Term Debt, Including Current Maturities) (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Fair Value Measurements, Long-term Debt [Line Items] | ||
Carrying value of long-term debt | $ 2,676 | $ 2,685 |
Level 2 [Member] | ||
Fair Value Measurements, Long-term Debt [Line Items] | ||
Fair value of long-term debt | $ 2,905 | $ 2,692 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) $ in Millions | Feb. 01, 2020USD ($) |
Long-term purchase commitment [Line Items] | |
Purchase obligations, capital expenditure contractual commitments and inventory purchase orders | $ 1,618 |
Installment Payments Remaining | 1 |
Outstanding trade letters of credit [Member] | |
Long-term purchase commitment [Line Items] | |
Outstanding trade letters of credit amount | $ 0 |
Shareholders' Equity (Summary O
Shareholders' Equity (Summary Of Share Repurchase Activity) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Share Repurchase Program [Line Items] | |||
Capacity beginning balance | $ 893 | $ 414 | $ 529 |
Shares repurchased (in shares) | 4.1 | 14.3 | 4.6 |
Shares repurchased, average price per share (in dollars per share) | $ 45 | $ 49 | $ 45 |
Capacity ending balance | $ 707 | $ 893 | $ 414 |
2017 Program [Member] | |||
Share Repurchase Program [Line Items] | |||
Share repurchase authorization | 500 | ||
Expiration of unused capacity | (319) | ||
2015 Program [Member] | |||
Share Repurchase Program [Line Items] | |||
Expiration of unused capacity | (409) | ||
2018 Program [Member] | |||
Share Repurchase Program [Line Items] | |||
Share repurchase authorization | 1,500 | ||
Accumulated deficit [Member] | |||
Share Repurchase Program [Line Items] | |||
Shares repurchased (amount) | $ (186) | $ (702) | $ (206) |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - $ / shares | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Mar. 20, 2020 | Feb. 01, 2020 | [1] | Nov. 02, 2019 | [1] | Aug. 03, 2019 | [1] | May 04, 2019 | [1] | Feb. 02, 2019 | [1] | Nov. 03, 2018 | [1] | Aug. 04, 2018 | [1] | May 05, 2018 | [1] | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Retained Earnings Adjustments [Line Items] | ||||||||||||||||||||
Dividends (in dollars per share) | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 1.48 | $ 1.48 | $ 1.48 | |||||||||
Subsequent Event [Member] | ||||||||||||||||||||
Retained Earnings Adjustments [Line Items] | ||||||||||||||||||||
Quarterly dividend per share declared and paid subsequent quarter | $ 0.37 | |||||||||||||||||||
[1] | Quarterly totals may not foot across due to rounding. |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense, before income tax benefit | $ 69 | $ 90 | $ 77 | |
Income tax benefit | (18) | (23) | (20) | |
Total stock-based compensation expense, net of income tax benefit | 51 | 67 | 57 | |
Restricted stock units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense, before income tax benefit | 49 | 71 | 51 | |
Stock options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense, before income tax benefit | 11 | 12 | 18 | |
Other [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense, before income tax benefit | [1] | $ 9 | $ 7 | $ 8 |
[1] | Other stock-based compensation expense includes PSUs, ESPP and nonemployee director stock awards. |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-Based Compensation Expense Before Income Tax Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | $ 69 | $ 90 | $ 77 |
Cost of sales and related buying and occupancy costs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | 20 | 28 | 25 |
SG&A expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | $ 49 | $ 62 | $ 52 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of Restricted Stock Unit Activity) (Details) - Restricted stock units [Member] shares in Millions | 12 Months Ended |
Feb. 01, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, beginning of year (in shares or units) | shares | 3.9 |
Outstanding, beginning of year (in dollars per share) | $ / shares | $ 47 |
Granted (in shares or units) | shares | 1.5 |
Granted (in dollars per share) | $ / shares | $ 39 |
Vested (in shares or units) | shares | (1.6) |
Vested (in dollars per share) | $ / shares | $ 46 |
Forfeited or cancelled (in shares or units) | shares | (0.6) |
Forfeited or cancelled (in dollars per share) | $ / shares | $ 45 |
Outstanding, end of year (in shares or units) | shares | 3.2 |
Outstanding, end of year (in dollars per share) | $ / shares | $ 44 |
Stock-Based Compensation (Assum
Stock-Based Compensation (Assumptions To Estimate The Fair Value For Stock Options At Grant Date) (Details) - $ / shares shares in Millions | Mar. 05, 2019 | Feb. 28, 2017 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |||
Assumptions | ||||||||
Weighted-average volatility | [1] | 34.60% | 40.10% | |||||
Weighted-average expected dividend yield | [1] | 1.90% | 2.40% | |||||
Expected life in years | [1] | 6 years 9 months 18 days | 7 years 1 month 6 days | |||||
Minimum [Member] | ||||||||
Assumptions | ||||||||
Risk-free interest rate | [1] | 2.50% | 1.00% | |||||
Maximum [Member] | ||||||||
Assumptions | ||||||||
Risk-free interest rate | [1] | 2.70% | 2.50% | |||||
Stock options [Member] | ||||||||
Grant Date Information | ||||||||
Weighted-average fair value per option at grant date | [1] | $ 15 | $ 16 | |||||
Exercise price per option | $ 45 | [1] | $ 47 | [1] | $ 45 | |||
Stock options granted (in shares) | 1 | 0 | ||||||
[1] | There were no stock options granted in 2018. |
Stock-Based Compensation (Sum_3
Stock-Based Compensation (Summary Of Stock Option Activity) (Details) - Stock options [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Mar. 05, 2019 | [1] | Feb. 28, 2017 | [1] | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Outstanding, beginning of year (in shares) | 8.4 | ||||||
Outstanding, beginning of year (in dollars per share) | $ 53 | ||||||
Granted (in shares) | 1 | 0 | |||||
Granted (in dollars per share) | $ 45 | $ 47 | $ 45 | ||||
Exercised (in shares) | (0.4) | ||||||
Exercised (in dollars per share) | $ 30 | ||||||
Forfeited or cancelled (in shares) | (0.7) | ||||||
Forfeited or cancelled (in dollars per share) | $ 54 | ||||||
Outstanding, end of year (in shares) | 8.3 | 8.4 | |||||
Outstanding, end of year (in dollars per share) | $ 53 | $ 53 | |||||
Outstanding, end of year, weighted-average remaining contractual life (years) | 5 years | ||||||
Outstanding, end of year, aggregate intrinsic value | $ 132 | ||||||
Vested, end of year (in shares) | 6.9 | ||||||
Vested, end of year (in dollars per share) | $ 54 | ||||||
Vested, end of year, weighted-average remaining contractual life (years) | 4 years | ||||||
Vested, end of year, aggregate intrinsic value | $ 118 | ||||||
Vested or expected to vest, end of year (in shares) | 8.1 | ||||||
Vested or expected to vest, end of year (in dollars per share) | $ 53 | ||||||
Vested or expected to vest, end of year, weighted-average remaining contractual life (years) | 5 years | ||||||
Vested or expected to vest, end of year, aggregate intrinsic value | $ 130 | ||||||
Aggregate intrinsic value of options exercised | 5 | $ 67 | $ 13 | ||||
Fair value of stock options vested | $ 17 | $ 22 | $ 34 | ||||
[1] | There were no stock options granted in 2018. |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock issued under deferred and stock-based compensation plan arrangement | 2.1 | 4.9 | 1.6 |
Aggregate number of additional shares authorized to be issued under equity incentive plan | 1,000 | 1,000 | |
Common stock, shares outstanding | 155.6 | 157.6 | |
Other current liabilities | $ 1,190 | $ 1,324 | |
Restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period, in years | 4 years | ||
Total fair value of units vested | $ 65 | $ 54 | $ 26 |
Total unrecognized stock-based compensation expense related to nonvested share-based awards | $ 79 | ||
Weighted-average period that unrecognized stock-based compensation expense is expected to be recognized | 28 months | ||
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized stock-based compensation expense related to nonvested share-based awards | $ 10 | ||
Weighted-average period that unrecognized stock-based compensation expense is expected to be recognized | 35 months | ||
Employee stock purchase plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum percentage of employee payroll deductions under ESPP | 10.00% | ||
ESPP offering period | 6 months | ||
Percentage of fair market value for purchase of shares of common stock in ESPP | 90.00% | ||
Shares authorized under Employee Stock Purchase Plan | 12.6 | ||
Shares available for issuance under Employee Stock Purchase Plan | 1.3 | ||
Shares issued under Employee Stock Purchase Plan | 0.5 | 0.4 | |
Other current liabilities | $ 5 | $ 6 | |
2019 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares or units authorized under equity incentive plan | 9.5 | ||
Aggregate number of additional shares authorized to be issued under equity incentive plan | 9.5 | ||
Common stock, shares outstanding | 12.2 | ||
Shares available for grant under equity incentive plan | 10.3 | ||
2002 Nonemployee Director Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant under equity incentive plan | 0 | ||
2010 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant under equity incentive plan | 0 |
Income Taxes (U.S. And Foreign
Income Taxes (U.S. And Foreign Components Of Earnings Before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 654 | $ 792 | $ 803 |
Foreign | 28 | (59) | (13) |
Earnings before income taxes | $ 682 | $ 733 | $ 790 |
Income Taxes (Components Of Inc
Income Taxes (Components Of Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Current income taxes: | |||
Federal | $ 90 | $ 147 | $ 291 |
State and local | 44 | 56 | 51 |
Total current income tax expense | 134 | 203 | 342 |
Deferred income taxes: | |||
Federal | 43 | (5) | 10 |
State and local | 3 | (3) | 1 |
Foreign | 6 | (26) | 0 |
Total deferred income tax expense (benefit) | 52 | (34) | 11 |
Total income tax expense | $ 186 | $ 169 | $ 353 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Statutory To Effective Tax Rate) (Details) | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||
Feb. 03, 2018 | Dec. 31, 2017 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Statutory rate | 21.00% | 35.00% | 21.00% | 21.00% | 33.70% |
Tax Act impact | 0.00% | (0.10%) | 6.10% | ||
State and local income taxes, net of federal income taxes | 5.40% | 5.80% | 4.50% | ||
Federal credits | (0.90%) | (1.50%) | (0.70%) | ||
Valuation allowance release | 0.00% | (1.20%) | 0.00% | ||
Other, net | 1.80% | (0.90%) | 1.10% | ||
Effective tax rate | 27.30% | 23.10% | 44.70% |
Income Taxes (Components Of Def
Income Taxes (Components Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Deferred tax assets: | ||
Lease liabilities | $ 555 | $ 0 |
Compensation and benefits accruals | 145 | 139 |
Allowance for sales returns | 47 | 52 |
Accrued expenses | 29 | 28 |
Merchandise inventories | 20 | 20 |
Gift cards | 39 | 26 |
Loyalty program | 10 | 12 |
Net operating losses | 33 | 41 |
Other | 5 | 5 |
Total deferred tax assets | 883 | 323 |
Valuation allowance | (41) | (43) |
Total net deferred tax assets | 842 | 280 |
Deferred tax liabilities: | ||
ROU assets | (377) | 0 |
Land, property and equipment basis and depreciation differences | (312) | (94) |
Debt exchange premium | (13) | (13) |
Total deferred tax liabilities | (702) | (107) |
Net deferred tax assets | $ 140 | $ 173 |
Income Taxes (Reconciliation _2
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefit at beginning of year | $ 30 | $ 31 | $ 32 |
Gross increase to tax positions in prior periods | 0 | 9 | 2 |
Gross decrease to tax positions in prior periods | 0 | (14) | (7) |
Gross increase to tax positions in current period | 3 | 6 | 5 |
Lapses in statute | (1) | (2) | (1) |
Settlements | (10) | 0 | 0 |
Unrecognized tax benefit at end of year | $ 22 | $ 30 | $ 31 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||
Feb. 03, 2018 | Dec. 31, 2017 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Tax Credit Carryforward [Line Items] | |||||
U.S. federal corporate income tax statutory rate | 21.00% | 35.00% | 21.00% | 21.00% | 33.70% |
Valuation allowance | $ 41 | $ 43 | |||
Valuation allowance release | 2 | 8 | |||
Unrecognized tax benefits that would affect the effective tax rate | 22 | 26 | |||
Liability for interest and penalties | 3 | 3 | |||
State [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Operating loss carryforwards | 25 | 12 | |||
Foreign [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Operating loss carryforwards | $ 102 | $ 132 |
Earnings Per Share (Computation
Earnings Per Share (Computation Of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 01, 2020 | [2] | Nov. 02, 2019 | [2] | Aug. 03, 2019 | [2] | May 04, 2019 | [2] | Feb. 02, 2019 | [2] | Nov. 03, 2018 | [2] | Aug. 04, 2018 | [2] | May 05, 2018 | [2] | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Earnings Per Share [Abstract] | |||||||||||||||||||
Net earnings | $ 193 | [1] | $ 126 | [1] | $ 141 | [1] | $ 37 | [1] | $ 248 | [3] | $ 67 | [3] | $ 162 | [3] | $ 87 | [3] | $ 496 | $ 564 | $ 437 |
Basic shares (in shares) | 155.2 | 167.3 | 166.8 | ||||||||||||||||
Dilutive effect of common stock equivalents (in shares) | 0.9 | 2.7 | 2.1 | ||||||||||||||||
Diluted shares (in shares) | 156.1 | 170 | 168.9 | ||||||||||||||||
Earnings per basic share (in dollars per share) | $ 1.24 | $ 0.81 | $ 0.91 | $ 0.24 | $ 1.50 | $ 0.40 | $ 0.97 | $ 0.52 | $ 3.20 | $ 3.37 | $ 2.62 | ||||||||
Earnings per diluted share (in dollars per share) | $ 1.23 | [1] | $ 0.81 | [1] | $ 0.90 | [1] | $ 0.23 | [1] | $ 1.48 | [3] | $ 0.39 | [3] | $ 0.95 | [3] | $ 0.51 | [3] | $ 3.18 | $ 3.32 | $ 2.59 |
Anti-dilutive stock options and other equity instruments | 10 | 5.2 | 10.5 | ||||||||||||||||
[1] | In the fourth quarter of 2019, we incurred charges related to the integration of Trunk Club and debt refinancing costs, which reduced net earnings by $29 , or $0.19 per diluted share. The integration charges reduced earnings before interest and income taxes by $32 and debt refinancing costs increased interest expense by $8 . | ||||||||||||||||||
[2] | Quarterly totals may not foot across due to rounding. | ||||||||||||||||||
[3] | Results in the third quarter of 2018 include the Estimated Non-recurring Charge of $72 , or $49 net of tax, and $0.28 per diluted share (see Note 1: Nature of Operations and Summary of Significant Accounting Policies ). |
Segment Reporting (Information
Segment Reporting (Information By Reportable Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Feb. 01, 2020 | Nov. 02, 2019 | [1] | Aug. 03, 2019 | [1] | May 04, 2019 | [1] | Feb. 02, 2019 | Nov. 03, 2018 | [1] | Aug. 04, 2018 | [1] | May 05, 2018 | [1] | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Net sales | $ 4,439 | [1] | $ 3,566 | $ 3,778 | $ 3,349 | $ 4,383 | [1] | $ 3,648 | $ 3,980 | $ 3,469 | $ 15,132 | $ 15,480 | $ 15,137 | ||||||||||
Credit card revenues, net | 99 | [1] | 106 | 94 | 94 | 101 | [1] | 100 | 87 | 92 | 392 | 380 | 341 | ||||||||||
Earnings (loss) before interest and income taxes | 299 | [1],[2] | $ 193 | [2] | $ 216 | [2] | $ 77 | [2] | 333 | [1],[3] | $ 105 | [3] | $ 246 | [3] | $ 153 | [3] | 784 | 837 | 926 | ||||
Interest expense, net | (102) | (104) | (136) | ||||||||||||||||||||
Earnings (loss) before income taxes | 682 | 733 | 790 | ||||||||||||||||||||
Capital expenditures | (935) | (654) | (731) | ||||||||||||||||||||
Depreciation and amortization | (661) | (669) | (666) | ||||||||||||||||||||
Assets | 9,737 | 7,886 | 9,737 | 7,886 | 8,115 | ||||||||||||||||||
Retail [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Net sales | 15,132 | 15,480 | 15,408 | ||||||||||||||||||||
Credit card revenues, net | 0 | 0 | 0 | ||||||||||||||||||||
Earnings (loss) before interest and income taxes | 1,028 | 1,059 | [4] | 1,083 | [4] | ||||||||||||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||||||||||||||
Earnings (loss) before income taxes | 1,028 | 1,059 | [4] | 1,083 | [4] | ||||||||||||||||||
Capital expenditures | (726) | (415) | (516) | ||||||||||||||||||||
Depreciation and amortization | (428) | (436) | (445) | ||||||||||||||||||||
Assets | 6,831 | [5] | 5,300 | 6,831 | [5] | 5,300 | 5,477 | ||||||||||||||||
Corporate/Other [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Net sales | [6] | 0 | 0 | (271) | |||||||||||||||||||
Credit card revenues, net | 392 | 380 | 341 | ||||||||||||||||||||
Earnings (loss) before interest and income taxes | (244) | (222) | [4] | (157) | [4] | ||||||||||||||||||
Interest expense, net | (102) | (104) | (136) | ||||||||||||||||||||
Earnings (loss) before income taxes | (346) | (326) | [4] | (293) | [4] | ||||||||||||||||||
Capital expenditures | (209) | (239) | (215) | ||||||||||||||||||||
Depreciation and amortization | (233) | (233) | (221) | ||||||||||||||||||||
Assets | $ 2,906 | [5] | $ 2,586 | $ 2,906 | [5] | $ 2,586 | $ 2,638 | ||||||||||||||||
[1] | Quarterly totals may not foot across due to rounding. | ||||||||||||||||||||||
[2] | In the fourth quarter of 2019, we incurred charges related to the integration of Trunk Club and debt refinancing costs, which reduced net earnings by $29 , or $0.19 per diluted share. The integration charges reduced earnings before interest and income taxes by $32 and debt refinancing costs increased interest expense by $8 . | ||||||||||||||||||||||
[3] | Results in the third quarter of 2018 include the Estimated Non-recurring Charge of $72 , or $49 net of tax, and $0.28 per diluted share (see Note 1: Nature of Operations and Summary of Significant Accounting Policies ). | ||||||||||||||||||||||
[4] | Certain reclassifications were made to 2018 and 2017 amounts to conform with current period presentation, which is the way that management views our results internally. | ||||||||||||||||||||||
[5] | In 2019, we adopted the Lease Standard using the transition method provided in ASU 2018-11. See Note 2: Leases | ||||||||||||||||||||||
[6] | We present our sales in the way that management views our results internally, including presenting 2019 and 2018 under the Revenue Standard while prior period amounts are not adjusted and allocating our sales return allowance and loyalty related adjustments to Full-Price and Off-Price. For 2017, Other primarily included unallocated sales return, in-transit and loyalty related adjustments necessary to reconcile sales by business to total net sales. If we applied the sales return allowance allocation and the loyalty related adjustments to 2017, Full-Price net sales would decrease $211 , Off-Price net sales would decrease $60 and Other net sales would increase $271 . |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 12 Months Ended |
Feb. 01, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Number of operating segments | 2 |
Selected Quarterly Data (Unau_3
Selected Quarterly Data (Unaudited) (Schedule Of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 01, 2020 | Nov. 02, 2019 | [1] | Aug. 03, 2019 | [1] | May 04, 2019 | [1] | Feb. 02, 2019 | [1] | Nov. 03, 2018 | Aug. 04, 2018 | [1] | May 05, 2018 | [1] | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |||
Net sales | $ 4,439 | [1] | $ 3,566 | $ 3,778 | $ 3,349 | $ 4,383 | $ 3,648 | [1] | $ 3,980 | $ 3,469 | $ 15,132 | $ 15,480 | $ 15,137 | ||||||
Credit card revenues, net | 99 | [1] | 106 | 94 | 94 | 101 | 100 | [1] | 87 | 92 | 392 | 380 | 341 | ||||||
Gross profit | 1,555 | [1] | 1,222 | 1,302 | 1,121 | 1,540 | 1,213 | [1] | 1,391 | 1,181 | 5,200 | 5,325 | |||||||
Selling, general and administrative expenses | (1,355) | [1] | (1,135) | (1,180) | (1,138) | (1,308) | (1,208) | [1] | (1,232) | (1,120) | (4,808) | (4,868) | (4,662) | ||||||
Earnings before interest and income taxes | 299 | [1],[2] | 193 | [2] | 216 | [2] | 77 | [2] | 333 | [3] | 105 | [1],[3] | 246 | [3] | 153 | [3] | 784 | 837 | 926 |
Net earnings | $ 193 | [1],[2] | $ 126 | [2] | $ 141 | [2] | $ 37 | [2] | $ 248 | [3] | $ 67 | [1],[3] | $ 162 | [3] | $ 87 | [3] | $ 496 | $ 564 | $ 437 |
Earnings per basic share (in dollars per share) | $ 1.24 | [1] | $ 0.81 | $ 0.91 | $ 0.24 | $ 1.50 | $ 0.40 | [1] | $ 0.97 | $ 0.52 | $ 3.20 | $ 3.37 | $ 2.62 | ||||||
Earnings per diluted share (in dollars per share) | 1.23 | [1],[2] | 0.81 | [2] | 0.90 | [2] | 0.23 | [2] | 1.48 | [3] | 0.39 | [1],[3] | 0.95 | [3] | 0.51 | [3] | 3.18 | 3.32 | 2.59 |
Dividends (in dollars per share) | $ 0.37 | [1] | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | [1] | $ 0.37 | $ 0.37 | 1.48 | $ 1.48 | $ 1.48 | ||||||
Trunk Club Integration and Debt refinancing charges | $ 29 | ||||||||||||||||||
Trunk Club integration charges EBIT impact | 32 | ||||||||||||||||||
Impact of debt refinancing costs on interest expense | $ 8 | ||||||||||||||||||
Diluted EPS [Member] | |||||||||||||||||||
Impact of Trunk Club integration and debt refinancing charge on earnings per share | $ 0.19 | ||||||||||||||||||
EPS impact of Estimated Non-recurring Charge on earnings per share | $ 0.28 | ||||||||||||||||||
Pre-Tax [Member] | |||||||||||||||||||
Pre-tax dollar impact of Estimated Non-recurring Charge | $ 72 | ||||||||||||||||||
Post-Tax [Member] | |||||||||||||||||||
Pre-tax dollar impact of Estimated Non-recurring Charge | $ 49 | ||||||||||||||||||
[1] | Quarterly totals may not foot across due to rounding. | ||||||||||||||||||
[2] | In the fourth quarter of 2019, we incurred charges related to the integration of Trunk Club and debt refinancing costs, which reduced net earnings by $29 , or $0.19 per diluted share. The integration charges reduced earnings before interest and income taxes by $32 and debt refinancing costs increased interest expense by $8 . | ||||||||||||||||||
[3] | Results in the third quarter of 2018 include the Estimated Non-recurring Charge of $72 , or $49 net of tax, and $0.28 per diluted share (see Note 1: Nature of Operations and Summary of Significant Accounting Policies ). |