Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jan. 30, 2016 | Mar. 21, 2016 | Aug. 01, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 30, 2016 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FL | ||
Entity Common Stock, Shares Outstanding | 136,094,471 | ||
Entity Registrant Name | FOOT LOCKER INC | ||
Entity Central Index Key | 850,209 | ||
Current Fiscal Year End Date | --01-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 7,523,772,438 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
Sales | $ 7,412 | $ 7,151 | $ 6,505 |
Cost of sales | 4,907 | 4,777 | 4,372 |
Selling, general and administrative expenses | 1,415 | 1,426 | 1,334 |
Depreciation and amortization | 148 | 139 | 133 |
Litigation, impairment and other charges | 105 | 4 | 2 |
Interest expense, net | 4 | 5 | 5 |
Other income | (4) | (9) | (4) |
Costs and Expenses, Total | 6,575 | 6,342 | 5,842 |
Income before income taxes | 837 | 809 | 663 |
Income tax expense | 296 | 289 | 234 |
Net income | $ 541 | $ 520 | $ 429 |
Basic earnings per share | $ 3.89 | $ 3.61 | $ 2.89 |
Weighted-average shares outstanding | 139.1 | 143.9 | 148.4 |
Diluted earnings per share | $ 3.84 | $ 3.56 | $ 2.85 |
Weighted-average shares outstanding, assuming dilution | 140.8 | 146 | 150.5 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net income | $ 541 | $ 520 | $ 429 |
Foreign currency translation adjustment: | |||
Translation adjustment arising during the period, net of income tax | (44) | (132) | (25) |
Cash flow hedges: | |||
Change in fair value of derivatives, net of income tax | 5 | (1) | (5) |
Pension and postretirement adjustments: | |||
Net actuarial gain (loss) and prior service cost and foreign currency fluctuations arising during the year, net of income tax expense (benefit) of $(10), $(7) and $2 million, respectively | (16) | (8) | 6 |
Amortization of net actuarial gain/loss and prior service cost included in net periodic benefit costs, net of income tax expense of $5, $4, and $5 million, respectively | 8 | 8 | 9 |
Comprehensive income | $ 494 | $ 387 | $ 414 |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net actuarial gain (loss) and prior service cost and foreign currency fluctuations arising during the year, net of income tax expense benefit | $ (10) | $ (7) | $ 2 |
Amortization of net actuarial gain/loss and prior service cost included in net periodic benefit costs, net of income tax expense | $ 5 | $ 4 | $ 5 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 1,021 | $ 967 |
Merchandise inventories | 1,285 | 1,250 |
Other current assets | 300 | 239 |
Assets, Current, Total | 2,606 | 2,456 |
Property and equipment, net | 661 | 620 |
Deferred taxes | 234 | 221 |
Goodwill | 156 | 157 |
Other intangible assets, net | 45 | 49 |
Other assets | 73 | 74 |
Total Assets | 3,775 | 3,577 |
Current liabilities | ||
Accounts payable | 279 | 301 |
Accrued and other liabilities | 420 | 393 |
Current portion of capital lease obligations | 1 | 2 |
Liabilities, Current, Total | 700 | 696 |
Long-term debt and obligations under capital leases | 129 | 132 |
Other liabilities | 393 | 253 |
Total liabilities | 1,222 | 1,081 |
Shareholders' equity | 2,553 | 2,496 |
Liabilities and Equity, Total | $ 3,775 | $ 3,577 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions | Additional Paid-In Capital & Common Stock [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Beginning Balance at Feb. 02, 2013 | $ 856 | $ (384) | $ 2,076 | $ (171) | $ 2,377 |
Beginning Balance (in shares) at Feb. 02, 2013 | 166,909 | ||||
Beginning Balance (in treasury shares) at Feb. 02, 2013 | (16,839) | ||||
Restricted stock issued (in shares) | 665 | ||||
Issued under director and stock plans | $ 31 | 31 | |||
Issued under director and stock plans (in shares) | 1,465 | ||||
Share-based compensation expense | $ 25 | 25 | |||
Excess tax benefits from equity awards | 9 | 9 | |||
Forfeitures of restricted stock (in shares) | (2) | ||||
Shares of common stock used to satisfy tax withholding obligations | $ (16) | (16) | |||
Shares of common stock used to satisfy tax withholding obligations (in shares) | (479) | ||||
Acquired in exchange of stock options (in shares) | (1) | ||||
Share repurchases | $ (229) | (229) | |||
Share repurchases (in shares) | (6,424) | ||||
Reissued - employee stock purchase plan | $ 3 | 3 | |||
Reissued - employee stock purchase plan (in shares) | 133 | ||||
Net income | 429 | 429 | |||
Cash dividends declared on common stock ($1.00, $0.88, $0.80 per share in 2015,2014 and 2013 respectively) | (118) | (118) | |||
Translation adjustment, net of tax | (25) | (25) | |||
Change in cash flow hedges, net of tax | (5) | (5) | |||
Pension and postretirement adjustments, net of tax | 15 | 15 | |||
Ending Balance at Feb. 01, 2014 | $ 921 | $ (626) | 2,387 | (186) | 2,496 |
Ending Balance (in shares) at Feb. 01, 2014 | 169,039 | ||||
Ending Balance (in treasury shares) at Feb. 01, 2014 | (23,612) | ||||
Restricted stock issued (in shares) | 578 | ||||
Issued under director and stock plans | $ 22 | 22 | |||
Issued under director and stock plans (in shares) | 912 | ||||
Share-based compensation expense | $ 24 | 24 | |||
Excess tax benefits from equity awards | 12 | 12 | |||
Shares of common stock used to satisfy tax withholding obligations | $ (16) | (16) | |||
Shares of common stock used to satisfy tax withholding obligations (in shares) | (324) | ||||
Share repurchases | $ (305) | (305) | |||
Share repurchases (in shares) | (5,889) | ||||
Reissued - employee stock purchase plan | $ 3 | 3 | |||
Reissued - employee stock purchase plan (in shares) | 160 | ||||
Net income | 520 | 520 | |||
Cash dividends declared on common stock ($1.00, $0.88, $0.80 per share in 2015,2014 and 2013 respectively) | (127) | (127) | |||
Translation adjustment, net of tax | (132) | (132) | |||
Change in cash flow hedges, net of tax | (1) | (1) | |||
Ending Balance at Jan. 31, 2015 | $ 979 | $ (944) | 2,780 | (319) | 2,496 |
Ending Balance (in shares) at Jan. 31, 2015 | 170,529 | ||||
Ending Balance (in treasury shares) at Jan. 31, 2015 | (29,665) | ||||
Restricted stock issued (in shares) | 299 | ||||
Issued under director and stock plans | $ 70 | 70 | |||
Issued under director and stock plans (in shares) | 2,570 | ||||
Share-based compensation expense | $ 22 | 22 | |||
Excess tax benefits from equity awards | 35 | 35 | |||
Forfeitures of restricted stock | 2 | $ (2) | |||
Forfeitures of restricted stock (in shares) | (45) | ||||
Shares of common stock used to satisfy tax withholding obligations | $ (9) | (9) | |||
Shares of common stock used to satisfy tax withholding obligations (in shares) | (142) | ||||
Share repurchases | $ (419) | (419) | |||
Share repurchases (in shares) | (6,693) | ||||
Reissued - employee stock purchase plan | $ 3 | 3 | |||
Reissued - employee stock purchase plan (in shares) | 124 | ||||
Net income | 541 | 541 | |||
Cash dividends declared on common stock ($1.00, $0.88, $0.80 per share in 2015,2014 and 2013 respectively) | (139) | (139) | |||
Translation adjustment, net of tax | (44) | (44) | |||
Change in cash flow hedges, net of tax | 5 | 5 | |||
Pension and postretirement adjustments, net of tax | (8) | (8) | |||
Ending Balance at Jan. 30, 2016 | $ 1,108 | $ (1,371) | $ 3,182 | $ (366) | $ 2,553 |
Ending Balance (in shares) at Jan. 30, 2016 | 173,398 | ||||
Ending Balance (in treasury shares) at Jan. 30, 2016 | (36,421) |
CONSOLIDATED STATEMENTS OF SHA7
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [Abstract] | |||
Cash dividends declared on common stock, per share | $ 1 | $ 0.88 | $ 0.80 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | ||
From Operating Activities | ||||
Net income | $ 541 | $ 520 | $ 429 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Non-cash impairment charges | 5 | 4 | ||
Depreciation and amortization | 148 | 139 | 133 | |
Deferred income taxes | (6) | 20 | 19 | |
Share-based compensation expense | 22 | 24 | 25 | |
Excess tax benefits on share-based compensation | (35) | (12) | (8) | |
Gain on sale of real estate | (4) | |||
Qualified pension plan contributions | (4) | (6) | (2) | |
Change in assets and liabilities: | ||||
Merchandise inventories | (49) | (81) | (20) | |
Accounts payable | (17) | 51 | (48) | |
Accrued and other liabilities | 33 | (10) | ||
Pension litigation accrual | 100 | |||
Other, net | 40 | 24 | 12 | |
Net cash provided by operating activities | 745 | 712 | 530 | |
From Investing Activities | ||||
Capital expenditures | [1] | (228) | (190) | (206) |
Purchase of business, net of cash acquired | (2) | (81) | ||
Proceeds from sale of real estate | 5 | |||
Sales and maturities of short-term investments | 9 | 60 | ||
Purchases of short-term investments | (23) | |||
Gain from lease terminations | 2 | |||
Net cash used in investing activities | (230) | (176) | (248) | |
From Financing Activities | ||||
Purchase of treasury shares | (419) | (305) | (229) | |
Dividends paid on common stock | (139) | (127) | (118) | |
Issuance of common stock | 64 | 17 | 27 | |
Treasury stock reissued under employee stock plan | 5 | 5 | 3 | |
Excess tax benefits on share-based compensation | 35 | 12 | 9 | |
Reduction in long-term debt and obligations under capital leases | (2) | (3) | (1) | |
Net cash used in financing activities | (456) | (401) | (309) | |
Effect of Exchange Rate Fluctuations on Cash and Cash Equivalents | (5) | (26) | 5 | |
Net Change in Cash and Cash Equivalents | 54 | 109 | (22) | |
Cash and Cash Equivalents at Beginning of Year | 967 | 858 | 880 | |
Cash and Cash Equivalents at End of Year | 1,021 | 967 | 858 | |
Cash Paid During the Year: | ||||
Interest | 11 | 11 | 11 | |
Income taxes | $ 283 | $ 251 | $ 175 | |
[1] | Reflects cash capital expenditures for all years presented. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Foot Locker, Inc. and its domestic and international subsidiaries (the “Company”), all of which are wholly owned. All significant intercompany amounts have been eliminated. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. Reporting Year The fiscal year end for the Company is the Saturday closest to the last day in January. Fiscal years 2015, 2014, and 2013 represented the 52 weeks end ed January 30, 2016, January 31, 2015 , and February 1, 2014 , respectively. References to years in this annual report relate to fiscal years rather than calendar years. Revenue Recognition Revenue from retail stores is recognized at the point of sale when the product is delivered to customers. Internet and catalog sales revenue is recognized upon estimated receipt by the customer. Sales include shipping and handling fees for all periods presented. Sales include merchandise, net of returns, and exclude taxes. The Company provides for estimated returns based on return history and sales levels. Revenue from layaway sales is recognized when the customer receives the product, rather than when the initial deposit is paid. Gift Cards The Company sells gift cards to its customers, which do not have expiration dates. Revenue from gift card sales is recorded when the gift cards are redeemed or when the likelihood of the gift card being redeemed by the customer is remote and there is no legal obligation to remit the value of unredeemed gift cards to the relevant jurisdictions, referred to as breakage. The Company has determined its gift card breakage rate based upon historical redemption patterns. Historical experience indicates that after 12 months, the likelihood of redemption is deemed to be remote. Gift card breakage income is included in selling, general and administrative expenses and unredeemed gift cards are recorded as a current liability. Gift card breakage was $5 million for 2015 and 2014, and $4 million for 2013. Store Pre-Opening and Closing Costs Store pre-opening costs are charged to expense as incurred. In the event a store is closed before its lease has expired, the estimated post-closing lease exit costs, less any sublease rental income, is provided for once the store ceases to be used. Advertising Costs and Sales Promotion Advertising and sales promotion costs are expensed at the time the advertising or promotion takes place, net of reimbursements for cooperative advertising. Advertising expenses also include advertising costs as required by some of the Company’s mall-based leases. Cooperative advertising reimbursements earned for the launch and promotion of certain products agreed upon with vendors are recorded in the same period as the associated expenses are incurred. Reimbursement received in excess of expenses incurred related to specific, incremental, and identifiable advertising costs, is accounted for as a reduction to the cost of merchandise, which is reflected in cost of sales as the merchandise is sold. Advertising costs, which are included as a component of selling, general and administrative expenses, were as follows: 2015 2014 2013 ($ in millions) Advertising expenses $ 119 $ 125 $ 124 Cooperative advertising reimbursements (19) (21) (22) Net advertising expense $ 100 $ 104 $ 102 Catalog Costs Catalog costs, which are primarily comprised of paper, printing, and postage, are capitalized and amortized over the expected customer response period related to each catalog, which is generally 90 days. Cooperative reimbursements earned for the promotion of certain products are agreed upon with vendors and are recorded in the same period as the associated catalog expenses are amortized. Prepaid catalog costs were $2 million and $3 million at January 30, 2016 and January 31, 2015 , respectively. Catalog costs, which are included as a component of selling, general and administrative expenses, were as follows: 2015 2014 2013 ($ in millions) Catalog costs $ 28 $ 32 $ 36 Cooperative reimbursements (7) (7) (5) Net catalog expense $ 21 $ 25 $ 31 Earnings Per Share The Company accounts for and discloses earnings per share using the treasury stock method. Basic earnings per share is computed by dividing reported net income for the period by the weighted-average number of common shares outstanding at the end of the period. Restricted stock awards, which contain non-forfeitable rights to dividends, are considered participating securities and are included in the calculation of basic earnings per share. Diluted earnings per share reflects the weighted-average number of common shares outstanding during the period used in the basic earnings per share computation plus dilutive common stock equivalents. The computation of basic and diluted earnings per share is as follows: 2015 2014 2013 (in millions, except per share data) Net Income $ 541 $ 520 $ 429 Weighted-average common shares outstanding 139.1 143.9 148.4 Basic earnings per share $ 3.89 $ 3.61 $ 2.89 Weighted-average common shares outstanding 139.1 143.9 148.4 Dilutive effect of potential common shares 1.7 2.1 2.1 Weighted-average common shares outstanding assuming dilution 140.8 146.0 150.5 Diluted earnings per share $ 3.84 $ 3.56 $ 2.85 Potential common shares include the dilutive effect of stock options and restricted stock units. Options to purchase 0.6 million shares of common stock for both January 30, 2016 and January 31, 2015, and 1.0 million shares at February 1, 2014 , were not included in the computations primarily because the exercise price of the options was greater than the average market price of the common shares and, therefore, the effect of their inclusion would be antidilutive. Contingently issuable shares of 0.2 million, 0.3 million, and 0.2 million at January 30, 2016 , January 31, 2015 , and February 1, 2014 , respectively, have not been included as the vesting conditions have not been satisfied. Share-Based Compensation The Company recognizes compensation expense for share-based awards based on the grant date fair value of those awards. Additionally, stock-based compensation expense includes an estimate for pre-vesting forfeitures and expense is recognized on a straight-line basis over the requisite service period for each vesting tranche of the award. See Note 22, Share-Based Compensation, for information on the assumptions used to calculate the fair value of share-based compensation. Upon exercise of stock options, issuance of restricted stock or units, or issuance of shares under the employees stock purchase plan, the Company will issue authorized but unissued common stock or use common stock held in treasury. The Company may make repurchases of its common stock from time to time, subject to legal and contractual restrictions, market conditions, and other factors. Cash and Cash Equivalents Cash equivalents at January 30, 2016 and January 31, 2015 were $983 million and $930 million, respectively. Cash equivalents include amounts on demand with banks and all highly liquid investments with original maturities of three months or less, including money market funds. Additionally, amounts due from third-party credit card processors for the settlement of debit and credit card transactions are included as cash equivalents as they are generally collected within three business days. Investments Changes in the fair value of available-for-sale securities are reported as a component of accumulated other comprehensive loss in the Consolidated Statements of Shareholders’ Equity and are not reflected in the Consolidated Statements of Operations until a sale transaction occurs or when declines in fair value are deemed to be other-than-temporary. The Company routinely reviews available-for-sale securities for other-than-temporary declines in fair value below the cost basis, and when events or changes in circumstances indicate the carrying value of a security may not be recoverable, the security is written down to fair value. As of January 30, 2016 , the Company held $6 million of available-for-sale securities, which represented the Company’s auction rate security. See Note 20 , Fair Value Measurements , for further discussion of these investments. Merchandise Inventories and Cost of Sales Merchandise inventories for the Company’s Athletic Stores are valued at the lower of cost or market using the retail inventory method. Cost for retail stores is determined on the last-in, first-out (“LIFO”) basis for domestic inventories and on the first-in, first-out (“FIFO”) basis for international inventories. Merchandise inventories of the Direct-to-Customers business are valued at the lower of cost or market using weighted-average cost, which approximates FIFO. The retail inventory method is commonly used by retail companies to value inventories at cost and calculate gross margins due to its practicality. Under the retail inventory method, cost is determined by applying a cost-to-retail percentage across groupings of similar items, known as departments. The cost-to-retail percentage is applied to ending inventory at its current owned retail valuation to determine the cost of ending inventory on a department basis. The Company provides reserves based on current selling prices when the inventory has not been marked down to market. Transportation, distribution center, and sourcing costs are capitalized in merchandise inventories. The Company expenses the freight associated with transfers between its store locations in the period incurred. The Company maintains an accrual for shrinkage based on historical rates. Cost of sales is comprised of the cost of merchandise, as well as occupancy, buyers’ compensation, and shipping and handling costs. The cost of merchandise is recorded net of amounts received from suppliers for damaged product returns, markdown allowances, and volume rebates, as well as cooperative advertising reimbursements received in excess of specific, incremental advertising expenses. Occupancy costs include the amortization of amounts received from landlords for tenant improvements. Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation and amortization. Significant additions and improvements to property and equipment are capitalized. Depreciation and amortization are computed on a straight-line basis over the following estimated useful lives: Buildings Maximum of 50 years Leasehold improvements 10 years or term of lease, if shorter Furniture, fixtures, and equipment 3 -10 years Software 2 -7 years Maintenance and repairs are charged to current operations as incurred. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated. Internal-Use Software Development Costs The Company capitalizes certain external and internal computer software and software development costs incurred during the application development stage. The application development stage generally includes software design and configuration, coding, testing, and installation activities. Capitalized costs include only external direct cost of materials and services consumed in developing or obtaining internal-use software, and payroll and payroll-related costs for employees who are directly associated with and devote time to the internal-use software project. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended use. Training and maintenance costs are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Capitalized software, net of accumulated amortization, is included as a component of property and equipment and was $46 million and $39 million at January 30, 2016 and January 31, 2015 , respectively. Recoverability of Long-Lived Tangible Assets The Company performs an impairment review when circumstances indicate that the carrying value of long-lived tangible assets may not be recoverable. Management’s policy in determining whether an impairment indicator exists, a triggering event, comprises measurable operating performance criteria at the division level, as well as qualitative measures. The Company considers historical performance and future estimated results, which are predominately identified from the Company’s strategic long-range plans, in its evaluation of potential store-level impairment and then compares the carrying amount of the asset with the estimated future cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds the estimated expected undiscounted future cash flows, the Company measures the amount of the impairment by comparing the carrying amount of the asset with its estimated fair value. The estimation of fair value is measured by discounting expected future cash flows at the Company’s weighted-average cost of capital. The Company estimates fair value based on the best information available using estimates, judgments, and projections as considered necessary. Goodwill and Other Intangible Assets Goodwill and intangible assets with indefinite lives are reviewed for impairment annually during the first quarter of each fiscal year or more frequently if impairment indicators arise. The review of goodwill impairment consists of either using a qualitative approach to determine whether it is more likely than not that the fair value of the assets is less than their respective carrying values or a two-step impairment test, if necessary. If, based on the results of the qualitative assessment, it is concluded that it is not more likely than not that the fair value of the intangible asset is greater than its carrying value, the two-step test is performed to identify potential impairment. If it is determined that it is not more likely than not that the fair value of the reporting unit is less than its carrying value, it is unnecessary to perform the two-step impairment test. Based on certain circumstances, we may elect to bypass the qualitative assessment and proceed directly to performing the first step of the two-step impairment test. The first step of the two-step goodwill impairment test compares the fair value of the reporting unit to its carrying amount, including goodwill. The second step includes hypothetically valuing all the tangible and intangible assets of the reporting unit as if the reporting unit had been acquired in a business combination. Then, the implied fair value of the reporting unit’s goodwill is compared to the carrying amount of that goodwill. If the carrying value of the asset exceeds its fair value, an impairment loss is recognized in the amount of the excess. The fair value of each reporting unit is determined using a combination of market and discounted cash flow approaches. Intangible assets that are determined to have finite lives are amortized over their useful lives and are measured for impairment only when events or changes in circumstances indicate that the carrying value may be impaired. Intangible assets with indefinite lives are tested for impairment if impairment indicators arise and, at a minimum, annually. The impairment review for intangible assets with indefinite lives consists of either performing a qualitative or a quantitative assessment. If the results of the qualitative assessment indicate that it is more likely than not that the fair value of the indefinite-lived intangible is less than its carrying amount, or if we elect to proceed directly to a quantitative assessment, we calculate the fair value using a discounted cash flow method, based on the relief from royalty concept, and compare the fair value to the carrying value to determine if the asset is impaired. Derivative Financial Instruments All derivative financial instruments are recorded in the Company’s Consolidated Balance Sheets at their fair values. For derivatives designated as a hedge, and effective as part of a hedge transaction, the effective portion of the gain or loss on the hedging derivative instrument is reported as a component of other comprehensive income/loss or as a basis adjustment to the underlying hedged item and reclassified to earnings in the period in which the hedged item affects earnings. The effective portion of the gain or loss on hedges of foreign net investments is generally not reclassified to earnings unless the net investment is disposed of. To the extent derivatives do not qualify or are not designated as hedges, or are ineffective, their changes in fair value are recorded in earnings immediately, which may subject the Company to increased earnings volatility. Fair Value The Company categorizes its financial instruments into a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants exclusive of any transaction costs. The Company’s financial assets recorded at fair value are categorized as follows: Level 1 - Quoted prices for identical instruments in active markets. Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets. Level 3 - Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable. Income Taxes The Company accounts for its income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Deferred tax assets are recognized for tax credits and net operating loss carryforwards, reduced by a valuation allowance, which is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes net deferred tax assets to the extent that it believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. A taxing authority may challenge positions that the Company adopted in its income tax filings. Accordingly, the Company may apply different tax treatments for transactions in filing its income tax returns than for income tax financial reporting. The Company regularly assesses its tax positions for such transactions and records reserves for those differences when considered necessary. Tax positions are recognized only when it is more likely than not, based on technical merits, that the positions will be sustained upon examination. Tax positions that meet the more-likely-than-not threshold are measured using a probability weighted approach as the largest amount of tax benefit that is greater than fifty percent likely of being realized upon settlement. Whether the more-likely-than-not recognition threshold is met for a tax position is a matter of judgment based on the individual facts and circumstances of that position evaluated in light of all available evidence. The Company recognizes interest and penalties related to unrecognized tax benefits within income tax expense in the accompanying Consolidated Statement of Operations. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheet. Provision for U.S. income taxes on undistributed earnings of foreign subsidiaries is made only on those amounts in excess of the funds considered to be permanently reinvested. Pension and Postretirement Obligations The discount rate for the U.S. plans is determined by reference to the Bond:Link interest rate model based upon a portfolio of highly rated U.S. corporate bonds with individual bonds that are theoretically purchased to settle the plan’s anticipated cash outflows. The cash flows are discounted to their present value and an overall discount rate is determined. The discount rate selected to measure the present value of the Company’s Canadian benefit obligations was developed by using the plan’s bond portfolio indices, which match the benefit obligations. The Company measures its plan assets and benefit obligations using the month-end date that is closest to our fiscal year end. Insurance Liabilities The Company is primarily self-insured for health care, workers’ compensation, and general liability costs. Accordingly, provisions are made for the Company’s actuarially determined estimates of discounted future claim costs for such risks, for the aggregate of claims reported and claims incurred but not yet reported. Self-insured liabilities totaled $13 million at both January 30, 2016 and January 31, 2015. The Company discounts its workers’ compensation and general liability reserves using a risk-free interest rate. Imputed interest expense related to these liabilities was not significant for any of the periods presented. Accounting for Leases The Company recognizes rent expense for operating leases as of the possession date for store leases or the commencement of the agreement for a non-store lease. Rental expense, inclusive of rent holidays, concessions, and tenant allowances are recognized over the lease term on a straight-line basis. Contingent payments based upon sales and future increases determined by inflation related indices cannot be estimated at the inception of the lease and accordingly, are charged to operations as incurred. Foreign Currency Translation The functional currency of the Company’s international operations is the applicable local currency. The translation of the applicable foreign currency into U.S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for revenue and expense accounts using the weighted-average rates of exchange prevailing during the year. The unearned gains and losses resulting from such translation are included as a separate component of accumulated other comprehensive loss within shareholders’ equity. Recent Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ ASU ”) 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. This amendment changes how deferred taxes are recognized by eliminating the requirement of presenting deferred tax liabilities and assets as current and noncurrent on the balance sheet. Instead, the requirement will be to classify all deferred tax liabilities and assets as noncurrent. ASU 2015-17 is effective for annual reporting p eriods beginning after December 15, 2016, including interim periods within that reporting period, with earlier adoption permitted. ASU 2015-17 can be adopted either prospectively or retrospectively to all periods presented. The Company plans on early adopting ASU 2015-17 prospectively during fiscal year 2016. The adoption of this guidance is not expected to have an effect on our results of operations or cash flows, as this represents only a change in balance sheet classification. In February 2016, the FASB issued ASU 2016-02, Leases . This ASU revises the existing guidance related to leases by requiring lessees to recognize a lease liability and a right-of-use asset for all leases. This ASU also requires additional disclosure regarding leasing arrangements. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years , and requires a modified retrospective adoption, with earlier adoption permitted . The Company is currently evaluating the impact of the adoption of this ASU on its consolidated financial s tatements . Other recently issued accounting pronouncements did not, or are not believed by management to, have a material effect on the Company’s present or future consolidated financial statements . |
Acquisitions
Acquisitions | 12 Months Ended |
Jan. 30, 2016 | |
Acquisitions [Abstract] | |
Acquisitions | 2. Acquisitions On August 3, 2015 , the Company completed an insignificant asset acquisition from Futura Sport AG for total consideration of $2 million. The assets acquired include store fixtures, lease agreements, and inventory for 10 Runners Point and Sidestep franchise stores in Switzerland. The purchase price allocation has been completed as of January 30, 2016. |
Segment Information
Segment Information | 12 Months Ended |
Jan. 30, 2016 | |
Segment Information [Abstract] | |
Segment Information | 3. Segment Information The Company has determined that its reportable segments are those that are based on its method of internal reporting. As of January 30, 2016 , the Company has two reportable segments, Athletic Stores and Direct-to-Customers. The accounting policies of both segments are the same as those described in the Summary of Significant Accounting Policies note. The Company evaluates performance based on several factors, of which the primary financial measure is division results. Division profit reflects income before income taxes, pension litigation charge, corporate expense, non-operating income, and net interest expense. 2015 2014 2013 ($ in millions) Sales Athletic Stores $ 6,468 $ 6,286 $ 5,790 Direct-to-Customers 944 865 715 Total sales $ 7,412 $ 7,151 $ 6,505 2015 2014 2013 Operating Results Athletic Stores (1) $ 872 $ 777 $ 656 Direct-to-Customers (2) 142 109 84 Division profit 1,014 886 740 Less: Pension litigation charge 100 — — Less: Corporate expense (3) 77 81 76 Operating profit 837 805 664 Interest expense, net 4 5 5 Other income 4 9 4 Income before income taxes $ 837 $ 809 $ 663 (1) Included in the results for 2015, 2014, and 2013 are impairment and other charges of $4 million, $2 million, and $2 million, respectively. The 2015 amount reflects charges to write-down long-lived store assets of Runners Point. The 2014 amount reflected impairment charges to fully write-down the value of certain trade names. The 2013 amounts were incurred in connection with the closure of CCS stores. See Note 4, Litigation, Impairment and Other Charges for additional information . (2) Included in the results for 2015 is a $1 million non-cash impairment charge relating to an ecommerce trade name. The 2014 amount reflected non-cash impairment charges of $2 million related to the CCS trade name. See Note 4, Litigation, Impairment and Other Charges for additional information . (3) Corporate expense for all years presented reflects the reallocation of expense between corporate and the operating divisions. Based upon annual internal studies of corporate expense, the allocation of such expenses to the operating divisions was increased by $5 million for 2015, $4 million for 2014, and $27 million for 2013 thereby reducing corporate expense . Depreciation and Amortization Capital Expenditures (1) Total Assets 2015 2014 2013 2015 2014 2013 2015 2014 2013 ($ in millions) Athletic Stores $ 130 $ 119 $ 112 $ 181 $ 151 $ 163 $ 2,612 $ 2,499 $ 2,398 Direct-to-Customers 7 7 9 7 9 5 330 315 320 137 126 121 188 160 168 2,942 2,814 2,718 Corporate 11 13 12 40 30 38 833 763 769 Total Company $ 148 $ 139 $ 133 $ 228 $ 190 $ 206 $ 3,775 $ 3,577 $ 3,487 (1) Reflects cash capital expenditures for all years presented. Sales and long-lived asset information by geographic area as of and for the fiscal years ended January 30, 2016 , January 31, 2015 , and February 1, 2014 are presented in the following tables. Sales are attributed to the country in which the sales transaction is fulfilled. Long-lived assets reflect property and equipment. 2015 2014 2013 Sales ($ in millions) United States $ 5,305 $ 4,976 $ 4,567 International 2,107 2,175 1,938 Total sales $ 7,412 $ 7,151 $ 6,505 2015 2014 2013 Long-Lived Assets ($ in millions) United States $ 486 $ 446 $ 394 International 175 174 196 Total long-lived assets $ 661 $ 620 $ 590 For the year ended January 30, 2016 , the countries that comprised the majority of the sales and long-lived assets for the international category were Germany, Italy, Canada, and France. No other individual country included in the international category is significant. |
Litigation, Impairment and Othe
Litigation, Impairment and Other Charges | 12 Months Ended |
Jan. 30, 2016 | |
Litigation, Impairment and Other Charges [Abstract] | |
Litigation, Impairment and Other Charges | 4. Litigation, Impairment and Other Charges 2015 2014 2013 ($ in millions) Pension litigation charge $ 100 $ — $ — Impairment of long-lived assets 4 — — Other intangible asset impairments 1 4 — CCS store closure costs — — 2 Total litigation, impairment and other charges $ 105 $ 4 $ 2 During the third quarter of 2015, the Company recorded a $100 million pension litigation charge. Please see Note 23, Legal Proceedings for further information. During 2015, the Company evaluated the long-lived assets of Runners Point and Sidestep for impairment and recorded a non-cash charge of $4 million to write-down store fixtures and leasehold improvements for 61 stores. As a result of the impairment review related to long-lived assets, the Company performed a review of other intangible assets and recorded a non-cash impairment charge of $1 million, which was recorded to fully write down the value of an ecommerce trade name reflecting a decline in sales as the Company has shifted away from the use of this website. In connection with the Company’s former CCS ecommerce business, the Company recorded charges of $2 million in each of 2014 and 2013 . The 2014 charge represented impairment of the CCS trade nam e to its fair value, which was realized upon sale during 2014. The 2013 charge represented costs associated with the closure of CCS stores. Also during 2014, the Company recorded additional intangible asset impairment charges totaling $2 million related to the full write down of the trade name related to stores in the Republic of Ireland and a full write down of the value of a private-label brand acquired as part of the Runners Point Group acquisition, to reflect the exit of this product line. |
Other Income
Other Income | 12 Months Ended |
Jan. 30, 2016 | |
Other Income [Abstract] | |
Other Income | 5. Other Income Other income includes non-operating items, such as: gains from insurance recoveries; discounts/premiums paid on the repurchase and retirement of bonds; royalty income; and the changes in fair value, premiums paid, realized gains associated with foreign currency option contracts and property sales. Other income was $ 4 million in 2015, $9 million in 2014, and $4 million in 2013. For 2015, other income includes a $ 2 million insurance recovery related to a business interruption claim and $ 2 million of royalty income. For 2014, it included a $4 million gain on a sale of property, $2 million of royalty income, $2 million of realized gain associated with foreign currency option contracts, and $1 million of lease termination gains related to the sales of leasehold interests. Other income in 2013 represented $2 million of royalty income and $2 million related to lease termination gains. |
Merchandise Inventories
Merchandise Inventories | 12 Months Ended |
Jan. 30, 2016 | |
Merchandise Inventories [Abstract] | |
Merchandise Inventories | 6. Merchandise Inventories 2015 2014 ($ in millions) LIFO inventories $ 847 $ 821 FIFO inventories 438 429 Total merchandise inventories $ 1,285 $ 1,250 The value of the Company’s LIFO inventories, as calculated on a LIFO basis, approximates their value as calculated on a FIFO basis. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Jan. 30, 2016 | |
Other Current Assets [Abstract] | |
Other Current Assets | 7. Other Current Assets 2015 2014 ($ in millions) Net receivables $ 94 $ 78 Prepaid rent 81 77 Prepaid income taxes 66 34 Prepaid expenses and other current assets 33 32 Deferred taxes and costs 22 17 Fair value of derivative contracts 3 — Income tax receivable 1 1 $ 300 $ 239 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 30, 2016 | |
Property and Equipment, Net [Abstract] | |
Property and Equipment, Net | 8. Property and Equipment, Net 2015 2014 ($ in millions) Land $ 4 $ 4 Buildings: Owned 43 44 Furniture, fixtures, equipment and software development costs: Owned 954 900 Assets under capital leases 8 9 1,009 957 Less: accumulated depreciation (640) (606) 369 351 Alterations to leased and owned buildings Cost 804 779 Less: accumulated amortization (512) (510) 292 269 $ 661 $ 620 |
Goodwill
Goodwill | 12 Months Ended |
Jan. 30, 2016 | |
Goodwill and Other Intangible Assets, Net [Abstract] | |
Goodwill | 9. Goodwill The Athletic Stores segment’s goodwill is net of accumulated impairment charges of $167 million for all periods presented. The 2015 and 2014 annual goodwill impairment tests did not result in an impairment charge. Direct-to- Athletic Stores Customers Total ($ in millions) Goodwill at February 1, 2014 $ 21 $ 142 $ 163 Foreign currency translation adjustment (4) (2) (6) Goodwill at January 31, 2015 $ 17 $ 140 $ 157 Foreign currency translation adjustment — (1) (1) Goodwill at January 30, 2016 $ 17 $ 139 $ 156 |
Other Intangible Assets, net
Other Intangible Assets, net | 12 Months Ended |
Jan. 30, 2016 | |
Goodwill and Other Intangible Assets, Net [Abstract] | |
Other Intangible Assets, net | 10. Other Intangible Assets, net January 30, 2016 January 31, 2015 Wtd. Avg. Gross Accum. Net Life in Gross Accum. Net ($ in millions) value amort. Value Years (2) value amort. Value Amortized intangible assets: (1) Lease acquisition costs $ 119 $ (107) $ 12 10.0 $ 128 $ (116) $ 12 Trademarks / trade names 20 (12) 8 20.0 21 (12) 9 Favorable leases 7 (5) 2 7.8 7 (4) 3 $ 146 $ (124) $ 22 13.8 $ 156 $ (132) $ 24 Indefinite life intangible assets: (1) Runners Point Group trademarks / trade names (3) 23 25 $ 23 $ 25 Other intangible assets, net $ 45 $ 49 (1) The movements in the ending balances also reflect the effect of foreign currency fluctuations due primarily to the movements of the euro in relation to the U.S. dollar . (2) The weighted-average useful life is as of January 30, 2016 and excludes those assets that are fully amortized . (3) Includes non-cash impairment charges of $1 million recorded in both 2015 and 2014. These impairment charges are described more fully in Note 4 , Litigation, Impairment and Other Charges . Amortizing intangible assets primarily represent lease acquisition costs, which are amounts that are required to secure prime lease locations and other lease rights, primarily in Europe. Amortizing intangible assets decreased by $ 2 million in 2015, which reflects additions of $3 million related to new leases in Europe and the United States, partially offset by $1 million in foreign currency fluctuations. Amortization expense for intangibles subject to amortization was $ 4 million, $6 million, and $11 million for 2015, 2014, and 2013, respectively. Estimated future amortization expense for finite lived intangibles for the next five years is as follows: ($ in millions) 2016 $ 4 2017 3 2018 3 2019 3 2020 3 |
Other Assets
Other Assets | 12 Months Ended |
Jan. 30, 2016 | |
Other Assets [Abstract] | |
Other Assets | 11. Other Assets 2015 2014 ($ in millions) Restricted cash (1) $ 22 $ 22 Deferred tax costs 12 5 Pension asset 8 13 Auction rate security 6 6 Funds deposited in insurance trust (2) 4 4 Other 21 24 $ 73 $ 74 (1) Restricted cash is comprised of amounts held in escrow in connection with various leasing arrangements in Europe . (2) The Company is required by its insurers to collateralize part of the self-insured workers’ compensation and liability claims. The Company has chosen to satisfy these collateral requirements by depositing funds in insurance trusts . |
Accrued and Other Liabilities
Accrued and Other Liabilities | 12 Months Ended |
Jan. 30, 2016 | |
Accrued and Other Liabilities [Abstract] | |
Accrued and Other Liabilities | 12. Accrued and Other Liabilities 2015 2014 ($ in millions) Current deferred tax liabilities $ 62 $ 48 Taxes other than income taxes 56 56 Other payroll and payroll related costs, excluding taxes 54 54 Customer deposits (1) 46 44 Incentive bonuses 46 51 Income taxes payable 39 10 Property and equipment (2) 27 49 Other 90 81 $ 420 $ 393 (1) Customer deposits include unredeemed gift cards and certificates, merchandise credits, and deferred revenue related to undelivered merchandise, including layaway sales. (2) Accruals for property and equipment are properly excluded from the statements of cash flows for all years presented . |
Revolving Credit Facility
Revolving Credit Facility | 12 Months Ended |
Jan. 30, 2016 | |
Revolving Credit Facility [Abstract] | |
Revolving Credit Facility | 13. Revolving Credit Facility On January 27, 2012 , the Company entered into an amended and restated credit agreement (the “2011 Restated Credit Agreement”) with its banks. The 2011 Restated Credit Agreement provides for a $200 million asset based revolving credit facility maturing on January 27, 2017 . In addition, during the term of the 2011 Restated Credit Agreement, the Company may make up to four requests for additional credit commitments in an aggregate amount not to exceed $200 million. Interest is based on the LIBOR rate in effect at the time of the borrowing plus a 1.25 to 1.50 percent margin depending on certain provisions as defined in the 2011 Restated Credit Agreement. The 2011 Restated Credit Agreement provides for a security interest in certain of the Company’s domestic assets, including certain inventory assets, but excluding intellectual property. The Company is not required to comply with any financial covenants as long as there are no outstanding borrowings. With regard to the payment of dividends and share repurchases, there are no restrictions if the Company is not borrowing and the payments are funded through cash on hand. If the Company is borrowing, Availability as of the end of each fiscal month during the subsequent projected six fiscal months following the payment must be at least 20 percent of the lesser of the Aggregate Commitments and the Borrowing Base (all terms as defined in the 2011 Restated Credit Agreement). The Company uses the credit facility to support standby letters of credit in connection with insurance programs. The letters of credit outstanding as of January 30, 2016 were not significant. Deferred financing fees are amortized over the life of the facility on a straight-line basis, which is comparable to the interest method. The unamortized balance at January 30, 2016 is $1 million. The quarterly facility fees paid on the unused portion was 0.25 percent for both 2015 and 2014. There were no short-term borrowings during 2015 or 2014. Interest expense, including facility fees, related to the revolving credit facility was $1 million for all years presented. |
Long-Term Debt and Obligations
Long-Term Debt and Obligations Under Capital Leases | 12 Months Ended |
Jan. 30, 2016 | |
Long-Term Debt and Obligations Under Capital Leases [Abstract] | |
Long-Term Debt and Obligations Under Capital Leases | 14. Long-Term Debt and Obligations Under Capital Leases 2015 2014 ($ in millions) 8.5% debentures payable 2022 $ 118 $ 118 Unamortized gain related to interest rate swaps (1) 11 12 Obligations under capital leases 1 4 $ 130 $ 134 Less: current portion of obligations under capital leases 1 2 $ 129 $ 132 (1) In 2009, the Company terminated an interest rate swap at a gain. This gain is being amortized as part of interest expense over the remaining term of the debt using the effective-yield method . Interest expense related to long-term debt and the amortization of the associated debt issuance costs was $9 million for all years presented. Maturities of long-term debt and minimum rent payments under capital leases in future periods are: Long-Term Debt Capital Leases Total ($ in millions) 2016 $ — $ 1 $ 1 2017-2020 — — — Thereafter 118 — 118 $ 118 $ 1 $ 119 Less: Imputed interest — — — Current portion — 1 1 $ 118 $ — $ 118 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Jan. 30, 2016 | |
Other Liabilities [Abstract] | |
Other Liabilities | 15. Other Liabilities 2015 2014 ($ in millions) Straight-line rent liability $ 155 $ 124 Pension litigation liability 100 — Pension benefits 69 46 Income taxes 22 24 Postretirement benefits 13 18 Deferred taxes 13 14 Workers’ compensation and general liability reserves 8 9 Other 13 18 $ 393 $ 253 |
Leases
Leases | 12 Months Ended |
Jan. 30, 2016 | |
Leases [Abstract] | |
Leases | 16. Leases The Company is obligated under operating leases for almost all of its store properties. Some of the store leases contain renewal options with varying terms and conditions. Management expects that in the normal course of business, expiring leases will generally be renewed or, upon making a decision to relocate, replaced by leases on other premises. Operating lease periods generally range from 5 to 10 years. Certain leases provide for additional rent payments based on a percentage of store sales. Also, most of the Company’s leases require the payment of certain executory costs such as insurance, maintenance, and other costs in addition to the future minimum lease payments. These costs, including the amortization of lease rights, totaled $137 million in 2015, $132 million in 2014, and $128 million in 2013. Included in the amounts below, are non-store expenses that totaled $18 million in 2015, $17 million in 2014, and $16 million in 2013. 2015 2014 2013 ($ in millions) Minimum rent $ 618 $ 615 $ 580 Contingent rent based on sales 27 25 22 Sublease income (5) (5) (2) $ 640 $ 635 $ 600 Future minimum lease payments under non-cance l lable operating leases, net of future non-cance l lable operating sublease payments, are: ($ in millions) 2016 $ 574 2017 542 2018 490 2019 445 2020 406 Thereafter 1,648 Total operating lease commitments $ 4,105 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jan. 30, 2016 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 17. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, net of tax, is comprised of the following: 2015 2014 2013 ($ in millions) Foreign currency translation adjustments $ (119) $ (75) $ 57 Cash flow hedges 2 (3) (2) Unrecognized pension cost and postretirement benefit (248) (240) (240) Unrealized loss on available-for-sale security (1) (1) (1) $ (366) $ (319) $ (186) The changes in accumulated other comprehensive loss for the period ended January 30, 2016 were as follows: Foreign Items Related Unrealized Currency to Pension and Loss on Translation Cash Flow Postretirement Available-For- ($ in millions) Adjustments Hedges Benefits Sale Security Total Balance as of January 31, 2015 $ (75) $ (3) $ (240) $ (1) $ (319) OCI before reclassification (44) 5 (16) — (55) Reclassified from AOCI — — 8 — 8 Other comprehensive income/ (loss) (44) 5 (8) — (47) Balance as of January 30, 2016 $ (119) $ 2 $ (248) $ (1) $ (366) Reclassifications from accumulated other comprehensive loss for the period ended January 30, 2016 were as follows: ($ in millions) Amortization of actuarial (gain) loss: Pension benefits- amortization of actuarial loss $ 14 Postretirement benefits- amortization of actuarial gain (1) Net periodic benefit cost (see Note 21) 13 Income tax benefit 5 Net of tax $ 8 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 30, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | 18. Income Taxes The domestic and international components of pre-tax income are as follows: 2015 2014 2013 ($ in millions) Domestic $ 668 $ 654 $ 558 International 169 155 105 Total pre-tax income $ 837 $ 809 $ 663 The income tax provision consists of the following: 2015 2014 2013 ($ in millions) Current: Federal $ 212 $ 195 $ 164 State and local 37 34 26 International 53 40 25 Total current tax provision 302 269 215 Deferred: Federal (8) 16 13 State and local (1) 3 5 International 3 1 1 Total deferred tax provision (6) 20 19 Total income tax provision $ 296 $ 289 $ 234 Provision has been made in the accompanying Consolidated Statements of Operations for additional income taxes applicable to dividends received or expected to be received, if any, from international subsidiaries. The amount of unremitted earnings of international subsidiaries for which no such tax is provided and which is considered to be permanently reinvested in the subsidiaries totaled $1,087 million and $999 million at January 30, 2016 and January 31, 2015 , respectively. The determination of the amount of the deferred tax liability related to permanently reinvested earnings is not practicable. A reconciliation of the significant differences between the federal statutory income tax rate and the effective income tax rate on pre-tax income is as follows: 2015 2014 2013 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % State and local income taxes, net of federal tax benefit 2.8 3.2 3.5 International income taxed at varying rates (2.1) (1.9) (1.6) Foreign tax credits (2.8) (2.5) (2.5) Domestic/foreign tax settlements (0.1) (0.6) (1.1) Federal tax credits (0.2) (0.2) (0.2) Other, net 2.8 2.7 2.2 Effective income tax rate 35.4 % 35.7 % 35.3 % Deferred income taxes are provided for the effects of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for income tax purposes. Items that give rise to significant portions of the Company’s deferred tax assets and deferred tax liabilities are as follows: 2015 2014 ($ in millions) Deferred tax assets: Tax loss/credit carryforwards and capital loss $ 8 $ 9 Employee benefits 97 65 Property and equipment 121 137 Straight-line rent 39 33 Other 34 38 Total deferred tax assets 299 282 Valuation allowance (5) (6) Total deferred tax assets, net $ 294 $ 276 Deferred tax liabilities: Merchandise inventories 104 96 Goodwill and other intangible assets 20 17 Other 6 1 Total deferred tax liabilities $ 130 $ 114 Net deferred tax asset $ 164 $ 162 Balance Sheet caption reported in: Deferred taxes $ 234 $ 221 Other current assets 5 3 Accrued and other current liabilities (62) (48) Other liabilities (13) (14) $ 164 $ 162 Based upon the level of historical taxable income and projections for future taxable income, which are based upon the Company’s strategic long-range plans, over the periods in which the temporary differences are anticipated to reverse, management believes it is more likely than not that the Company will realize the benefits of these deductible differences, net of the valuation allowances at January 30, 2016 . However, the amount of the deferred tax asset considered realizable could be adjusted in the future if estimates of taxable income are revised. As of January 30, 2016 , the Company has a valuation allowance of $5 million to reduce its deferred tax assets to an amount that is more likely than not to be realized. A valuation allowance of $3 million relates to the deferred tax assets arising from a capital loss associated with an impairment of the Northern Group note receivable in 2008. The Company does not anticipate realizing capital gains to utilize the capital loss associated with the note receivable impairment. A valuation allowance of $2 million was recorded against tax loss carryforwards of certain foreign entities. Based on the history of losses and the absence of prudent and feasible business plans for generating future taxable income in certain foreign entities, the Company believes it is more likely than not that the benefit of these loss carryforwards will not be realized. At January 30, 2016 , the Company has state operating loss carryforwards with a potential tax benefit of $2 million that expire between 2021 and 2035 . The Company will have, when realized, a capital loss with a potential benefit of $3 million arising from a note receivable. This loss will carryforward for 5 years after realization. The Company has U.S. state credits of $1 million that expire in 2024 . The Company has international operating loss carryforwards with a potential tax benefit of $2 million, a portion of which will expire between 2016 and 2034 and a portion of which will never expire. The state and international operating loss carryforwards do not include unrecognized tax benefits. The Company operates in multiple taxing jurisdictions and is subject to audit. Audits can involve complex issues that may require an extended period of time to resolve. A taxing authority may challenge positions that the Company has adopted in its income tax filings. Accordingly, the Company may apply different tax treatments for transactions in filing its income tax returns than for income tax financial reporting. The Company regularly assesses its tax positions for such transactions and records reserves for those differences. The Company’s U.S. Federal income tax filings have been examined by the Internal Revenue Service through 2014. The Company is participating in the IRS’s Compliance Assurance Process (“CAP”) for 2015, which is expected to conclude during 2016. The Company has started the CAP for 2016. Due to the recent utilization of net operating loss carryforwards, the Company is subject to state and local tax examinations effectively including years from 1996 to the present. To date, no adjustments have been proposed in any audits that will have a material effect on the Company’s financial position or results of operations. At January 30, 2016 and January 31, 2015 , the Company had $38 million and $40 million, respectively of gross unrecognized tax benefits, and $37 million and $39 million, respectively, of net unrecognized tax benefits that would, if recognized, affect the Company’s annual effective tax rate. The Company has classified certain income tax liabilities as current or noncurrent based on management’s estimate of when these liabilities will be settled. Interest expense and penalties related to unrecognized tax benefits are classified as income tax expense. Interest was not significant for any of the periods presented. The Company recognized $1 million of interest income in 2013. The total amount of accrued interest and penalties was $ 2 million in 2015, 2014, and 2013. The following table summarizes the activity related to unrecognized tax benefits: 2015 2014 2013 ($ in millions) Unrecognized tax benefits at beginning of year $ 40 $ 48 $ 54 Foreign currency translation adjustments (2) (6) (4) Increases related to current year tax positions 4 3 3 Increases related to prior period tax positions 2 1 4 Decreases related to prior period tax positions — (1) (2) Settlements (1) (1) (7) Lapse of statute of limitations (5) (4) — Unrecognized tax benefits at end of year $ 38 $ 40 $ 48 It is reasonably possible that the liability associated with the Company’s unrecognized tax benefits will increase or decrease within the next twelve months. These changes may be the result of foreign currency fluctuations, ongoing audits or the expiration of statutes of limitations. Settlements could increase earnings in an amount ranging from $0 to $5 million based on current estimates. Audit outcomes and the timing of audit settlements are subject to significant uncertainty. Although management believes that adequate provision has been made for such issues, the ultimate resolution could have an adverse effect on the earnings of the Company. Conversely, if these issues are resolved favorably in the future, the related provision would be reduced, generating a positive effect on earnings. Due to the uncertainty of amounts and in accordance with its accounting policies, the Company has not recorded any potential impact of these settlements. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Jan. 30, 2016 | |
Financial Instruments and Risk Management [Abstract] | |
Financial Instruments and Risk Management | 19. Financial Instruments and Risk Management The Company operates internationally and utilizes certain derivative financial instruments to mitigate its foreign currency exposures, primarily related to third-party and intercompany forecasted transactions. As a result of the use of derivative instruments, the Company is exposed to the risk that counterparties will fail to meet their contractual obligations. To mitigate this counterparty credit risk, the Company has a practice of entering into contracts only with major financial institutions selected based upon their credit ratings and other financial factors. The Company monitors the creditworthiness of counterparties throughout the duration of the derivative instrument. Additional information is contained within Note 20, Fair Value Measurements . Derivative Holdings Designated as Hedges For a derivative to qualify as a hedge at inception and throughout the hedged period, the Company formally documents the nature of the hedged items and the relationships between the hedging instruments and the hedged items, as well as its risk-management objectives, strategies for undertaking the various hedge transactions, and the methods of assessing hedge effectiveness and ineffectiveness. In addition, for hedges of forecasted transactions, the significant characteristics and expected terms of a forecasted transaction must be specifically identified, and it must be probable that each forecasted transaction would occur. If it were deemed probable that the forecasted transaction would not occur, the gain or loss on the derivative instrument would be recognized in earnings immediately. No such gains or losses were recognized in earnings for any of the periods presented. Derivative financial instruments qualifying for hedge accounting must maintain a specified level of effectiveness between the hedging instrument and the item being hedged, both at inception and throughout the hedged period, which management evaluates periodically. The primary currencies to which the Company is exposed are the euro, British pound, Canadian dollar, and Australian dollar. For the most part, merchandise inventories are purchased by each geographic area in their respective local currency. The exception to this is the United Kingdom, whose merchandise inventory purchases are denominated in euros. For option and foreign exchange forward contracts designated as cash flow hedges of the purchase of inventory, the effective portion of gains and losses is deferred as a component of Accumulated Other Comprehensive Loss (“AOCL”) and is recognized as a component of cost of sales when the related inventory is sold. The amount reclassified to cost of sales related to such contracts was not significant for any of the periods presented. The effective portion of gains or losses associated with other forward contracts is deferred as a component of AOCL until the underlying transaction is reported in earnings. The ineffective portion of gains and losses related to cash flow hedges recorded to earnings was not significant for any of the periods presented. When using a forward contract as a hedging instrument, the Company excludes the time value of the contract from the assessment of effectiveness. As of January 30, 2016, all of the Company’s hedged forecasted transactions are less than twelve months, and the Company expects all derivative-related amounts reported in AOCL to be reclassified to earnings within twelve months. During 2015, the net change in the fair value of the foreign exchange derivative financial instruments designated as cash flow hedges of the purchase of inventory resulted in a gain of $5 million and therefore decreased AOCL, this resulted in a gain of $2 million included in AOCL as of January 30, 2016 . The notional value of the contracts outstanding at January 30, 2016 was $72 million and these contracts mature at various dates through January 2017 . Derivative Holdings Not Designated as Hedges The Company enters into foreign exchange forward contracts that are not designated as hedges in order to manage the costs of foreign currency-denominated merchandise purchases and intercompany transactions. Changes in the fair value of these foreign exchange forward contracts are recorded in earnings immediately within selling, general and administrative expenses. The net change in fair value was $1 million in 2015, was not significant for 2014, and was $1 million for 2013. The notional value of the contracts outstanding at January 30, 2016 was $13 million, and these contracts mature at various dates through March 2016. The Company mitigates the effect of fluctuating foreign exchange rates on the reporting of foreign currency-denominated earnings by entering into currency option contracts. Changes in the fair value of these foreign currency option contracts, which are not designated as hedges, are recorded in earnings immediately within other income. The realized gains, premiums paid, and changes in the fair market value recorded were not significant for 2015, and was $1 million for 2014. There were no contracts outstanding at January 30, 2016 . Additionally, the Company enters into diesel fuel forward and option contracts to mitigate a portion of the Company’s freight expense due to the variability caused by fuel surcharges imposed by our third-party freight carriers. Changes in the fair value of these contracts are recorded in earnings immediately. The effect was not significant for any of the periods presented. The notional value of the diesel fuel forward contracts outstanding at January 30, 2016 was $1 million and these contracts mature at various dates through May 2016. Fair Value of Derivative Contracts The following represents the fair value of the Company’s derivative contracts. Many of the Company’s agreements allow for a netting arrangement. The following is presented on a gross basis, by type of contract: Balance Sheet ($ in millions) Caption 2015 2014 Hedging Instruments: Foreign exchange forward contracts Current assets $ 3 $ — Foreign exchange forward contracts Current liabilities $ — $ 4 Non-hedging Instruments: Foreign exchange forward contracts Current liabilities $ — $ 1 Notional Values and Foreign Currency Exchange Rates The table below presents the notional amounts for all outstanding derivatives and the weighted-average exchange rates of foreign exchange forward contracts at January 30, 2016 : Contract Value Weighted-Average ($ in millions) Exchange Rate Inventory Buy €/Sell British £ $ 72 0.7359 Intercompany Buy €/Sell British £ $ 11 0.7298 Buy US/Sell CAD $ 2 1.4080 Diesel fuel forwards $ 1 — Business Risk The retailing business is highly competitive. Price, quality, selection of merchandise, reputation, store location, advertising, and customer service are important competitive factors in the Company’s business. The Company operates in 23 countries and purchased approximately 90 percent of its merchandise in 2015 from its top 5 suppliers. In 2015, the Company purchased approximately 72 percent of its athletic merchandise from one major supplier, Nike, Inc. (“Nike”), and approximately 11 percent from another major supplier. Each of our operating divisions is highly dependent on Nike; they individually purchased 55 to 82 percent of their merchandise from Nike. Included in the Company’s Consolidated Balance Sheet at January 30, 2016 , are the net assets of the Company’s European operations, which total $904 million and are located in 19 countries, 11 of which have adopted the euro as their functional currency. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 30, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 20. Fair Value Measurements The following table provides a summary of the recognized assets and liabilities that are measured at fair value on a recurring basis: As of January 30, 2016 As of January 31, 2015 ($ in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Available-for-sale securities $ — $ 6 $ — $ — $ 6 $ — Foreign exchange forward contracts — 3 — — — — Total Assets $ — $ 9 $ — $ — $ 6 $ — Liabilities Foreign exchange forward contracts — — — — 5 — Total Liabilities $ — $ — $ — $ — $ 5 $ — Securities classified as available-for-sale are recorded at fair value with unrealized gains and losses reported, net of tax, in other comprehensive income, unless unrealized losses are determined to be other than temporary. The fair value of the auction rate security is determined by using quoted prices for similar instruments in active markets and accordingly is classified as a Level 2 instrument. The Company’s derivative financial instruments are valued using market-based inputs to valuation models. These valuation models require a variety of inputs, including contractual terms, market prices, yield curves, and measures of volatility and therefore are classified as Level 2 instruments. There were no transfers into or out of Level 1, Level 2, or Level 3 assets and liabilities for any of the periods presented. The carrying value and estimated fair value of long-term debt and obligations under capital leases were as follows: 2015 2014 ($ in millions) Carrying value $ 130 $ 134 Fair value $ 156 $ 163 The fair value of long-term debt is determined by using model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets and therefore are classified as Level 2. The carrying values of cash and cash equivalents, short-term investments, and other current receivables and payables approximate their fair value. |
Retirement Plans and Other Bene
Retirement Plans and Other Benefits | 12 Months Ended |
Jan. 30, 2016 | |
Retirement Plans and Other Benefits [Abstract] | |
Retirement Plans and Other Benefits | 21. Retirement Plans and Other Benefits Pension and Other Postretirement Plans The Company has defined benefit pension plans covering certain of its North American employees, which are funded in accordance with the provisions of the laws where the plans are in effect. In addition, the Company has a defined benefit plan for certain individuals of Runners Point Group. The Company also sponsors postretirement medical and life insurance plans, which are available to most of its retired U.S. employees. These plans are contributory and are not funded. The measurement date of the assets and liabilities is the month-end date that is closest to our fiscal year end . The following tables set forth the plans’ changes in benefit obligations and plan assets, funded status, and amounts recognized in the Consolidated Balance Sheets, as of January 30, 2016 and January 31, 2015 : Pension Benefits Postretirement Benefits 2015 2014 2015 2014 ($ in millions) Change in benefit obligation Benefit obligation at beginning of year $ 722 $ 674 $ 19 $ 15 Service cost 17 15 — — Interest cost 24 28 1 1 Plan participants’ contributions — — 1 2 Actuarial (gain) loss (39) 67 (5) 4 Foreign currency translation adjustments (6) (9) — — Benefits paid (51) (53) (2) (3) Benefit obligation at end of year $ 667 $ 722 $ 14 $ 19 Change in plan assets Fair value of plan assets at beginning of year $ 686 $ 650 Actual (loss) return on plan assets (34) 90 Employer contributions 8 9 Foreign currency translation adjustments (7) (10) Benefits paid (51) (53) Fair value of plan assets at end of year $ 602 $ 686 Funded status $ (65) $ (36) $ (14) $ (19) Amounts recognized on the balance sheet: Other assets $ 8 $ 13 $ — $ — Accrued and other liabilities (4) (3) (1) (1) Other liabilities (69) (46) (13) (18) $ (65) $ (36) $ (14) $ (19) Amounts recognized in accumulated other comprehensive loss, pre-tax: Net loss (gain) $ 410 $ 394 $ (10) $ (6) Prior service cost 1 1 — — $ 411 $ 395 $ (10) $ (6) As of January 30, 2016 and January 31, 2015 , the Canadian qualified pension plan’s assets exceeded its accumulated benefit obligation. Information for those pension plans with an accumulated benefit obligation in excess of plan assets is as follows: 2015 2014 ($ in millions) Projected benefit obligation $ 617 $ 662 Accumulated benefit obligation 617 662 Fair value of plan assets 544 613 The following tables set forth the changes in accumulated other comprehensive loss (pre-tax) at January 30, 2016 : Pension Postretirement Benefits Benefits ($ in millions) Net actuarial loss (gain) at beginning of year $ 394 $ (6) Amortization of net (loss) gain (14) 1 Loss (gain) arising during the year 34 (5) Foreign currency fluctuations (4) — Net actuarial loss (gain) at end of year (1) $ 410 $ (10) Net prior service cost at end of year (2) 1 — Total amount recognized $ 411 $ (10) (1) The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost (income) during the next year are approximately $14 million and $(2) million related to the pension and postretirement plans, respectively . (2) The net prior service cost did not change during the year and is not expected to change significantly during the next year . The following weighted-average assumptions were used to determine the benefit obligations under the plans: Pension Benefits Postretirement Benefits 2015 2014 2015 2014 Discount rate 4.1 % 3.4 % 4.1 % 3.4 % Rate of compensation increase 3.7 % 3.7 % Pension expense is actuarially calculated annually based on data available at the beginning of each year. The expected return on plan assets is determined by multiplying the expected long-term rate of return on assets by the market-related value of plan assets for the U.S. qualified pension plan and market value for the Canadian qualified pension plan. The market-related value of plan assets is a calculated value that recognizes investment gains and losses in fair value related to equities over three or five years, depending on which computation results in a market-related value closer to market value. Market-related value for the U.S. qualified plan was $604 million and $557 million for 2015 and 2014, respectively. Assumptions used in the calculation of net benefit cost include the discount rate selected and disclosed at the end of the previous year as well as other assumptions detailed in the table below: Pension Benefits Postretirement Benefits 2015 2014 2013 2015 2014 2013 Discount rate 3.4 % 4.3 % 3.8 % 3.4 % 4.2 % 3.7 % Rate of compensation increase 3.7 % 3.7 % 3.7 % Expected long-term rate of return on assets 6.1 % 6.3 % 6.2 % The expected long-term rate of return on invested plan assets is based on the plans’ weighted-average target asset allocation, as well as historical and future expected performance of those assets. The target asset allocation is selected to obtain an investment return that is sufficient to cover the expected benefit payments and to reduce future contributions by the Company. The components of net benefit expense (income) are: Pension Benefits Postretirement Benefits 2015 2014 2013 2015 2014 2013 ($ in millions) Service cost $ 17 $ 15 $ 14 $ — $ — $ — Interest cost 24 28 25 1 1 1 Expected return on plan assets (39) (38) (39) — — — Amortization of net loss (gain) 14 15 17 (1) (3) (3) Net benefit expense (income) $ 16 $ 20 $ 17 $ — $ (2) $ (2) Beginning with 2001, new retirees were charged the expected full cost of the medical plan and then-existing retirees will incur 100 percent of the expected future increases in medical plan costs. Any changes in the health care cost trend rates assumed would not affect the accumulated benefit obligation or net benefit income, since retirees will incur 100 percent of such expected future increases. The Company maintains a Supplemental Executive Retirement Plan (“SERP”), which is an unfunded plan that includes provisions for the continuation of medical and dental insurance benefits to certain executive officers and other key employees of the Company (“SERP Medical Plan”). The SERP Medical Plan’s accumulated projected benefit obligation at January 30, 2016 was approximately $11 million. The following initial and ultimate cost trend rate assumptions were used to determine the benefit obligations under the SERP Medical Plan: Medical Trend Rate Dental Trend Rate 2015 2014 2013 2015 2014 2013 Initial cost trend rate 7.0 % 7.0 % 7.0 % 5.0 % 5.0 % 5.0 % Ultimate cost trend rate 5.0 % 5.0 % 5.0 % 5.0 % 5.0 % 5.0 % Year that the ultimate cost trend rate is reached 2021 2019 2018 2016 2015 2014 The following initial and ultimate cost trend rate assumptions were used to determine the net periodic cost under the SERP Medical Plan: Medical Trend Rate Dental Trend Rate 2015 2014 2013 2015 2014 2013 Initial cost trend rate 7.0 % 7.0 % 7.5 % 5.0 % 5.0 % 5.0 % Ultimate cost trend rate 5.0 % 5.0 % 5.0 % 5.0 % 5.0 % 5.0 % Year that the ultimate cost trend rate is reached 2019 2018 2018 2015 2014 2013 A one percentage-point change in the assumed health care cost trend rates would have the following effects on the SERP Medical Plan: 1% Increase 1% (Decrease) ($ in millions) Effect on total service and interest cost components $ — $ — Effect on accumulated postretirement benefit obligation 2 (2) In 2014 and 2015, the Company used the RP 2000 mortality table with generational projection using scale AA for both males and females. The RP 2000 table was selected because it resulted in the closest match to the Company’s actual experience. For the SERP Medical Plan, the mortality assumption was updated in 2015 to the RPH 2015 table with generational projection using MP 2015, while in the prior year period we used the RP 2014 table with generational projection using MP 2014. Plan Assets The target composition of the Company’s Canadian qualified pension plan assets is 95 percent fixed-income securities and 5 percent equity. The Company believes that plan assets are invested in a prudent manner with the same overall objective and investment strategy as noted below for the U.S. pension plan. The bond portfolio is comprised of government and corporate bonds chosen to match the duration of the pension plan’s benefit payment obligations. This current asset allocation will limit future volatility with regard to the funded status of the plan. This allocation has resulted in higher pension expense due to the lower long-term rate of return associated with fixed-income securities. The target composition of the Company’s U.S. qualified pension plan assets was 60 percent fixed-income securities, 36.5 percent equity, and 3.5 percent real estate investment trust. The Company may alter the targets from time to time depending on market conditions and the funding requirements of the pension plan. This current asset allocation is expected to limit volatility with regard to the funded status of the plan, but will result in higher pension expense due to the lower long-term rate of return associated with fixed-income securities. Due to market conditions and other factors, actual asset allocations may vary from the target allocation outlined above. The Company believes that plan assets are invested in a prudent manner with an objective of providing a total return that, over the long term, provides sufficient assets to fund benefit obligations, taking into account the Company’s expected contributions and the level of risk deemed appropriate. The Company’s investment strategy seeks to utilize asset classes with differing rates of return, volatility, and correlation in order to reduce risk by providing diversification relative to equities. Diversification within asset classes is also utilized to ensure that there are no significant concentrations of risk in plan assets and to reduce the effect that the return on any single investment may have on the entire portfolio. Valuation of Investments Significant portions of plan assets are invested in commingled trust funds. These funds are valued at the net asset value of units held by the plan at year end. Stocks traded on U.S. and Canadian security exchanges are valued at closing market prices on the measurement date. The fair values of the Company’s Canadian pension plan assets at January 30, 2016 and January 31, 2015 were as follows: Level 1 Level 2 Level 3 2015 Total 2014 Total* ($ in millions) Cash and cash equivalents $ — $ 2 $ — $ 2 $ 3 Equity securities: Canadian and international (1) 4 — — 4 5 Fixed-income securities: Cash matched bonds (2) — 52 — 52 65 Total assets at fair value $ 4 $ 54 $ — $ 58 $ 73 *Each category of plan assets is classified within the same level of the fair value hierarchy for 2015 and 2014. (1) This category comprises one mutual fund that invests primarily in a diverse portfolio of Canadian securities. (2) This category consists of fixed-income securities, including strips and coupons, issued or guaranteed by the Government of Canada, provinces or municipalities of Canada including their agencies and crown corporations, as well as other governmental bonds and corporate bonds. No Level 3 assets were held by the Canadian pension plan during 2015 and 2014. The fair values of the Company’s U.S. pension plan assets at January 30, 2016 and January 31, 2015 were as follows: Level 1 Level 2 Level 3 2015 Total 2014 Total* ($ in millions) Cash and cash equivalents $ — $ 1 $ — $ 1 $ 1 Equity securities: U.S. large-cap (1) — 93 — 93 102 U.S. mid-cap (1) — 26 — 26 31 International (2) — 61 — 61 71 Corporate stock (3) 27 — — 27 21 Fixed-income securities: Long duration corporate and government bonds (4) — 217 — 217 254 Intermediate duration corporate and government bonds (5) — 99 — 99 110 Other types of investments: Real estate securities (6) — 17 — 17 20 Insurance contracts — 1 — 1 1 Other (7) — 2 — 2 2 Total assets at fair value $ 27 $ 517 — $ — $ 544 $ 613 * Each category of plan assets is classified within the same level of the fair value hierarchy for 2015 and 2014. (1) These categories consist of various managed funds that invest primarily in common stocks, as well as other equity securities and a combination of other funds. (2) This category comprises three managed funds that invest primarily in international common stocks, as well as other equity securities and a combination of other funds. (3) This category consists of the Company’s common stock. The increase from the prior year is due to price appreciation. No additional stock was contributed during the year. (4) This category consists of various fixed-income funds that invest primarily in long-term bonds, as well as a combination of other funds, that together are designed to exceed the performance of related long-term market indices. (5) This category consists of two fixed-income funds that invest primarily in intermediate duration bonds, as well as a combination of other funds, that together are designed to exceed the performance of related indices. (6) This category consists of one fund that invests in global real estate securities. (7) This category consists primarily of cash related to net pending trade purchases and sales. No Level 3 assets were held by the U.S. pension plan during 2015 and 2014. During 2015, the Company made a contribution of $4 million to its U.S. qualified pension plan. Subsequent to year end, in February 2016, the Company contributed $25 million to its U.S. qualified pension plan. The Company continuously evaluates the amount and timing of any future contributions. Future contributions are dependent on several factors, including the outcome of the ongoing U.S. pension litigation. See Note 23, Legal Proceedings , for further information. During 2015, the Company also paid $ 4 million in pension benefits related to its non-qualified pension plans. Estimated future benefit payments for each of the next five years and the five years thereafter are as follows: Pension Postretirement Benefits Benefits ($ in millions) 2016 $ 71 $ 1 2017 54 1 2018 52 1 2019 51 1 2020 50 1 2021–2025 231 3 Savings Plans The Company has two qualified savings plans, a 401(k) plan that is available to employees whose primary place of employment is the U.S., and an another plan that is available to employees whose primary place of employment is in Puerto Rico. Both plans limit participation to employees who have attained at least the age of twenty-one and have completed one year of service consisting of at least 1,000 hours. As of January 1, 2016, the savings plans allow eligible employees to contribute up to 40 percent of their compensation on a pre-tax basis, subject to a maximum of $18, 000 for the U.S. plan and $15, 000 for the Puerto Rico plan. The Company match es 25 percent of employees’ pre-tax contributions on up to the first 4 percent of the employees’ compensation (subject to certain limitations). Matching contributions made before January 1, 2016 were made with Company stock. Matching contributions made after January 1, 2016 will be made in cash. Such matching contributions are vested incrementally over the first 5 years of participation for both plans. The charge to operations for the Company’s matching contribution was $3 million for all years presented. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jan. 30, 2016 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | 22. Share-Based Compensation Stock Awards Under the Company’s 2007 Stock Incentive Plan (the “2007 Stock Plan”), stock options, restricted stock, restricted stock units, stock appreciation rights, or other stock-based awards may be granted to officers and other employees of the Company, including its subsidiaries and operating divisions worldwide. Nonemployee directors are also eligible to receive awards under this plan. Options for employees become exercisable in substantially equal annual installments over a three-year period, beginning with the first anniversary of the date of grant of the option, unless a shorter or longer duration is established at the time of the option grant. Options for nonemployee directors become exercisable one year from the date of grant. The options terminate up to ten years from the date of grant. On May 21, 2014, the 2007 Stock Plan was amended to increase the number of shares of the Company’s common stock reserved for all awards to 14 million shares. As of January 30, 2016, there were 13,038,597 shares available for issuance under this plan. Employees Stock Purchase Plan Under the Company’s 2013 Foot Locker Employees Stock Purchase Plan (“ESPP”), participating employees are able to contribute up to 10 percent of their annual compensation, not to exceed $25,000 in any plan year, through payroll deductions to acquire shares of the Company’s common stock at 85 percent of the lower market price on one of two specified dates in each plan year. Of the 3,000,000 shares of common stock authorized under this plan, 996 participating employees purchased 124,494 shares in 2015, and 958 participating employees purchased 160,859 shares in 2014. As of January 30, 2016 , there were 2,714,647 shares available for purchase under this plan. Share-Based Compensation Expense Total compensation expense included in SG&A and the associated tax benefits recognized related to the Company’s share-based compensation plans were as follows: 2015 2014 2013 ($ in millions) Options and shares purchased under the employee stock purchase plan $ 11 $ 13 $ 12 Restricted stock and restricted stock units 11 11 13 Total share-based compensation expense $ 22 $ 24 $ 25 Tax benefit recognized $ 8 $ 7 $ 8 Excess income tax benefit from settled equity-classified share-based awards reported as a cash flow from financing activities $ 35 $ 12 $ 9 Valuation Model and Assumptions The Company uses a Black-Scholes option-pricing model to estimate the fair value of share-based awards. The Black-Scholes option-pricing model incorporates various and highly subjective assumptions, including expected term and expected volatility. The Company estimates the expected term of share-based awards granted using the Company’s historical exercise and post-vesting employment termination patterns, which it believes are representative of future behavior. The expected term for the employee stock purchase plan valuation is based on the length of each purchase period as measured at the beginning of the offering period, which is one year. The Company estimates the expected volatility of its common stock at the grant date using a weighted-average of the Company’s historical volatility and implied volatility from traded options on the Company’s common stock. The Company believes that the combination of historical volatility and implied volatility provides a better estimate of future stock price volatility. The risk-free interest rate assumption is determined using the Federal Reserve nominal rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. The expected dividend yield is derived from the Company’s historical experience. The Company records share-based compensation expense only for those awards expected to vest using an estimated forfeiture rate based on its historical pre-vesting forfeiture data. The Company estimates pre-vesting option forfeitures at the time of grant and periodically revises those estimates in subsequent periods if actual forfeitures differ from those estimates. The following table shows the Company’s assumptions used to compute the share-based compensation expense: Stock Option Plans Stock Purchase Plan 2015 2014 2013 2015 2014 2013 Weighted-average risk free rate of interest 1.5 % 2.1 % 1.0 % 0.2 % 0.1 % 0.2 % Expected volatility 30 % 39 % 42 % 25 % 24 % 40 % Weighted-average expected award life (in years) 6.0 6.1 6.0 1.0 1.0 1.0 Dividend yield 1.6 % 1.9 % 2.3 % 1.6 % 2.0 % 2.3 % Weighted-average fair value $16.07 $15.30 $10.98 $10.47 $7.35 $5.79 The information set forth in the following table covers options granted under the Company’s stock option plans: Weighted- Weighted- Number Average Average of Remaining Exercise Shares Contractual Life Price (in thousands) (in years) (per share) Options outstanding at January 31, 2015 5,569 $ 25.89 Granted 694 62.29 Exercised (2,511) 25.50 Expired or cancelled (58) 49.17 Options outstanding at January 30, 2016 3,694 5.6 $ 32.62 Options exercisable at end of year 2,495 4.1 $ 22.56 Options vested and expected to vest 3,662 5.5 $ 32.40 The total fair value of options vested during 2015, 2014, and 2013 was $15 million, $9 million, and $8 million, respectively. The Company received $64 million in cash from option exercises for the year ended January 30, 2016 . The total intrinsic value of options exercised (the difference between the market price of the Company’s common stock on the exercise date and the price paid by the optionee to exercise the option) is presented below: 2015 2014 2013 ($ in millions) Exercised $ 99 $ 22 $ 21 The tax benefit realized from option exercises was $38 million, $8 million, and $7 million for 2015, 2014, and 2013, respectively. The aggregate intrinsic value for stock options outstanding, outstanding and exercisable, and vested and expected to vest (the difference between the Company’s closing stock price on the last trading day of the period and the exercise price of the options, multiplied by the number of in-the-money stock options) is presented below: 2015 ($ in millions) Outstanding $ 129 Outstanding and exercisable $ 112 Vested and expected to vest $ 129 As of January 30, 2016 , there was $7 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested stock options, which is expected to be recognized over a remaining weighted-average period of 1.4 years. The following table summarizes information about stock options outstanding and exercisable at January 30, 2016 : Options Outstanding Options Exercisable Weighted- Average Weighted- Weighted- Remaining Average Average Number Contractual Exercise Number Exercise Range of Exercise Prices Outstanding Life Price Exercisable Price (in thousands, except prices per share and contractual life) $9.85 to $18.80 858 2.7 $ 13.32 858 $ 13.32 $18.84 to $24.75 855 3.3 19.80 855 19.80 $30.92 to $36.59 784 6.5 32.84 611 32.44 $45.08 to $73.21 1,197 8.7 55.48 171 47.42 3,694 5.6 $ 32.62 2,495 $ 22.56 Restricted Stock and Restricted Stock Units Restricted shares of the Company’s common stock and restricted stock units (“RSU”) may be awarded to certain officers and key employees of the Company. RSU awards are made to executives outside of the United States and to nonemployee directors. Each RSU represents the right to receive one share of the Company’s common stock provided that the vesting conditions are satisfied. In 2015, 2014, and 2013, there were 588,308 , 755,936 , and 1,027,542 RSU awards outstanding, respectively. Generally, awards fully vest after the passage of time, typically three years. However, RSU awards made in connection with the Company’s long-term incentive program vest after the attainment of certain performance metrics and the passage of time. Restricted stock is considered outstanding at the time of grant and the holders have voting rights. Dividends are paid to holders of restricted stock that vest with the passage of time. With regards to performance-based restricted stock, dividends will be accumulated and paid after the performance criteria are met. No dividends are paid or accumulated on RSU awards. Compensation expense is recognized using the fair market value at the date of grant and is amortized over the vesting period, provided the recipient continues to be employed by the Company. Restricted share and RSU activity is summarized as follows: Weighted- Average Number Remaining Weighted-Average of Contractual Grant Date Shares Life Fair Value (in thousands) (in years) (per share) Nonvested at beginning of year 1,038 $ 37.96 Granted 155 63.73 Vested (322) 32.34 Expired or cancelled (68) 37.97 Nonvested at end of year 803 0.8 $ 45.19 Aggregate value ($ in millions) $ 36 The total fair value of awards for which restrictions lapsed was $10 million, $14 million, and $9 million for 2015, 2014, and 2013, respectively. At January 30, 2016 , there was $10 million of total unrecognized compensation cost net of estimated forfeitures, related to nonvested restricted stock awards. |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Jan. 30, 2016 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | 23. Legal Proceedings Legal proceedings pending against the Company or its consolidated subsidiaries consist of ordinary, routine litigation, including administrative proceedings, incidental to the business of the Company or businesses that have been sold or disposed of by the Company in past years. These legal proceedings include commercial, intellectual property, customer, environmental, and employment-related claims. The Company and the Company’s U.S. retirement plan are defendants in a class action ( Osberg v. Foot Locker Inc. et ano., filed in the U.S. District Court for the Southern District of New York) in which the plaintiff alleges that, in connection with the 1996 conversion of the retirement plan to a defined benefit plan with a cash balance formula, the Company and the retirement plan failed to properly advise plan participants of the “wear-away” effect of the conversion. Plaintiff’s claims were for breach of fiduciary duty under the Employee Retirement Income Security Act of 1974, as amended, and violation of the statutory provisions governing the content of the Summary Plan Description. The trial was held in July 2015 and the court issued a decision in September 2015 in favor of the class on the foregoing claims. The court ordered that the Plan be reformed. The Company is appealing the court’s decision, and the judgment has been stayed pending the outcome of the appeal. As a result of this development, the Company has determined that it is probable a liability exists. The Company’s reasonable estimate of this liability is a range between $100 million and $200 million, with no amount within that range more probable than any other amount. Therefore, in accordance with U.S. GAAP, the Company recorded a charge of $100 million pre-tax ( $61 million after-tax) in the third quarter of 2015. This amount has been classified as a long-term liability. The Company will continue to vigorously defend itself in this case. In light of the uncertainties involved in this matter, there is no assurance that the ultimate resolution will not differ from the amount currently accrued by the Company. Certain of the Company’s subsidiaries were defendants in a number of lawsuits filed in state and federal courts containing various class action allegations under federal or state wage and hour laws, including allegations concerning unpaid overtime, meal and rest breaks, and uniforms. In Pereira v. Foot Locker , filed in the U.S. District Court for the Eastern District of Pennsylvania, the plaintiff alleged that the Company permitted unpaid off-the-clock hours in violation of the Fair Labor Standards Act and state labor laws and sought compensatory and punitive damages, injunctive relief, and attorneys’ fees and costs. Additional purported wage and hour class actions were filed against the Company that asserted claims similar to those asserted in Pereira and sought similar remedies. With the exception of Hill v. Foot Locker filed in state court in Illinois, Kissinger v. Foot Locker filed in state court in California, and Cortes v. Foot Locker filed in federal court in New York, all of these actions were consolidated by the United States Judicial Panel on Multidistrict Litigation with Pereira under the caption In re Foot Locker, Inc . Fair Labor Standards Act and Wage and Hour Litigation, (“Consolidated Cases”). The Company and plaintiffs entered into a settlement agreement resolving the Consolidated Cases and Hill that was approved by the court during the second quarter of 2015. Additionally, during the third quarter of 2015, the Company and plaintiffs in Cortes and Kissinger entered into settlement agreements that have also been approved by the respective courts. Management does not believe that the outcome of any such legal proceedings pending against the Company or its consolidated subsidiaries, including Osberg , as described above, would have a material adverse effect on the Company’s consolidated financial position, liquidity, or results of operations, taken as a whole, based upon current knowledge and taking into consideration current accruals. Litigation is inherently unpredictable, and judgments could be rendered or settlements entered into that could adversely affect the Company’s operating results or cash flows in a particular period. |
Quarterly Results
Quarterly Results | 12 Months Ended |
Jan. 30, 2016 | |
Quarterly Results [Abstract] | |
Quarterly Results (Unaudited) | 24. Quarterly Results (Unaudited) 1 st Q 2 nd Q 3 rd Q (3) 4 th Q (4) Year (in millions, except per share amounts) Sales 2015 1,916 1,695 1,794 2,007 $ 7,412 2014 1,868 1,641 1,731 1,911 $ 7,151 Gross margin (1) 2015 670 553 607 675 $ 2,505 2014 646 525 574 629 $ 2,374 Operating profit (2) 2015 290 186 117 244 $ 837 2014 254 144 187 220 $ 805 Net income 2015 184 119 80 158 $ 541 2014 162 92 120 146 $ 520 Basic earnings per share: 2015 1.31 0.85 0.57 1.15 $ 3.89 2014 1.12 0.63 0.84 1.03 $ 3.61 Diluted earnings per share: 2015 1.29 0.84 0.57 1.14 $ 3.84 2014 1.10 0.63 0.82 1.01 $ 3.56 (1) Gross margin represents sales less cost of sales. (2) Operating profit represents income before income taxes, interest expense, net, and non-operating income. (3) During the third quarter of 2015, the Company recorded a pre-tax charge of $100 million, see Note 23, Legal Proceedings for further information . (4) During the fourth quarter of 2015 impairment charges totaling $5 million were recorded, see Note 4, Litigation, Impairment and Other Charges for further information. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Jan. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Foot Locker, Inc. and its domestic and international subsidiaries (the “Company”), all of which are wholly owned. All significant intercompany amounts have been eliminated. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. |
Reporting Year | Reporting Year The fiscal year end for the Company is the Saturday closest to the last day in January. Fiscal years 2015, 2014, and 2013 represented the 52 weeks end ed January 30, 2016, January 31, 2015 , and February 1, 2014 , respectively. References to years in this annual report relate to fiscal years rather than calendar years. |
Revenue Recognition | Revenue Recognition Revenue from retail stores is recognized at the point of sale when the product is delivered to customers. Internet and catalog sales revenue is recognized upon estimated receipt by the customer. Sales include shipping and handling fees for all periods presented. Sales include merchandise, net of returns, and exclude taxes. The Company provides for estimated returns based on return history and sales levels. Revenue from layaway sales is recognized when the customer receives the product, rather than when the initial deposit is paid. |
Gift Cards | Gift Cards The Company sells gift cards to its customers, which do not have expiration dates. Revenue from gift card sales is recorded when the gift cards are redeemed or when the likelihood of the gift card being redeemed by the customer is remote and there is no legal obligation to remit the value of unredeemed gift cards to the relevant jurisdictions, referred to as breakage. The Company has determined its gift card breakage rate based upon historical redemption patterns. Historical experience indicates that after 12 months, the likelihood of redemption is deemed to be remote. Gift card breakage income is included in selling, general and administrative expenses and unredeemed gift cards are recorded as a current liability. Gift card breakage was $5 million for 2015 and 2014, and $4 million for 2013. |
Store Pre-Opening and Closing Costs | Store Pre-Opening and Closing Costs Store pre-opening costs are charged to expense as incurred. In the event a store is closed before its lease has expired, the estimated post-closing lease exit costs, less any sublease rental income, is provided for once the store ceases to be used. |
Advertising Costs and Sales Promotion | Advertising Costs and Sales Promotion Advertising and sales promotion costs are expensed at the time the advertising or promotion takes place, net of reimbursements for cooperative advertising. Advertising expenses also include advertising costs as required by some of the Company’s mall-based leases. Cooperative advertising reimbursements earned for the launch and promotion of certain products agreed upon with vendors are recorded in the same period as the associated expenses are incurred. Reimbursement received in excess of expenses incurred related to specific, incremental, and identifiable advertising costs, is accounted for as a reduction to the cost of merchandise, which is reflected in cost of sales as the merchandise is sold. Advertising costs, which are included as a component of selling, general and administrative expenses, were as follows: 2015 2014 2013 ($ in millions) Advertising expenses $ 119 $ 125 $ 124 Cooperative advertising reimbursements (19) (21) (22) Net advertising expense $ 100 $ 104 $ 102 |
Catalog Costs | Catalog Costs Catalog costs, which are primarily comprised of paper, printing, and postage, are capitalized and amortized over the expected customer response period related to each catalog, which is generally 90 days. Cooperative reimbursements earned for the promotion of certain products are agreed upon with vendors and are recorded in the same period as the associated catalog expenses are amortized. Prepaid catalog costs were $2 million and $3 million at January 30, 2016 and January 31, 2015 , respectively. Catalog costs, which are included as a component of selling, general and administrative expenses, were as follows: 2015 2014 2013 ($ in millions) Catalog costs $ 28 $ 32 $ 36 Cooperative reimbursements (7) (7) (5) Net catalog expense $ 21 $ 25 $ 31 |
Earnings Per Share | Earnings Per Share The Company accounts for and discloses earnings per share using the treasury stock method. Basic earnings per share is computed by dividing reported net income for the period by the weighted-average number of common shares outstanding at the end of the period. Restricted stock awards, which contain non-forfeitable rights to dividends, are considered participating securities and are included in the calculation of basic earnings per share. Diluted earnings per share reflects the weighted-average number of common shares outstanding during the period used in the basic earnings per share computation plus dilutive common stock equivalents. The computation of basic and diluted earnings per share is as follows: 2015 2014 2013 (in millions, except per share data) Net Income $ 541 $ 520 $ 429 Weighted-average common shares outstanding 139.1 143.9 148.4 Basic earnings per share $ 3.89 $ 3.61 $ 2.89 Weighted-average common shares outstanding 139.1 143.9 148.4 Dilutive effect of potential common shares 1.7 2.1 2.1 Weighted-average common shares outstanding assuming dilution 140.8 146.0 150.5 Diluted earnings per share $ 3.84 $ 3.56 $ 2.85 Potential common shares include the dilutive effect of stock options and restricted stock units. Options to purchase 0.6 million shares of common stock for both January 30, 2016 and January 31, 2015, and 1.0 million shares at February 1, 2014 , were not included in the computations primarily because the exercise price of the options was greater than the average market price of the common shares and, therefore, the effect of their inclusion would be antidilutive. Contingently issuable shares of 0.2 million, 0.3 million, and 0.2 million at January 30, 2016 , January 31, 2015 , and February 1, 2014 , respectively, have not been included as the vesting conditions have not been satisfied. |
Share-Based Compensation | Share-Based Compensation The Company recognizes compensation expense for share-based awards based on the grant date fair value of those awards. Additionally, stock-based compensation expense includes an estimate for pre-vesting forfeitures and expense is recognized on a straight-line basis over the requisite service period for each vesting tranche of the award. See Note 22, Share-Based Compensation, for information on the assumptions used to calculate the fair value of share-based compensation. Upon exercise of stock options, issuance of restricted stock or units, or issuance of shares under the employees stock purchase plan, the Company will issue authorized but unissued common stock or use common stock held in treasury. The Company may make repurchases of its common stock from time to time, subject to legal and contractual restrictions, market conditions, and other factors. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents at January 30, 2016 and January 31, 2015 were $983 million and $930 million, respectively. Cash equivalents include amounts on demand with banks and all highly liquid investments with original maturities of three months or less, including money market funds. Additionally, amounts due from third-party credit card processors for the settlement of debit and credit card transactions are included as cash equivalents as they are generally collected within three business days. |
Investments | Investments Changes in the fair value of available-for-sale securities are reported as a component of accumulated other comprehensive loss in the Consolidated Statements of Shareholders’ Equity and are not reflected in the Consolidated Statements of Operations until a sale transaction occurs or when declines in fair value are deemed to be other-than-temporary. The Company routinely reviews available-for-sale securities for other-than-temporary declines in fair value below the cost basis, and when events or changes in circumstances indicate the carrying value of a security may not be recoverable, the security is written down to fair value. As of January 30, 2016 , the Company held $6 million of available-for-sale securities, which represented the Company’s auction rate security. See Note 20 , Fair Value Measurements , for further discussion of these investments. |
Merchandise Inventories and Cost of Sales | Merchandise Inventories and Cost of Sales Merchandise inventories for the Company’s Athletic Stores are valued at the lower of cost or market using the retail inventory method. Cost for retail stores is determined on the last-in, first-out (“LIFO”) basis for domestic inventories and on the first-in, first-out (“FIFO”) basis for international inventories. Merchandise inventories of the Direct-to-Customers business are valued at the lower of cost or market using weighted-average cost, which approximates FIFO. The retail inventory method is commonly used by retail companies to value inventories at cost and calculate gross margins due to its practicality. Under the retail inventory method, cost is determined by applying a cost-to-retail percentage across groupings of similar items, known as departments. The cost-to-retail percentage is applied to ending inventory at its current owned retail valuation to determine the cost of ending inventory on a department basis. The Company provides reserves based on current selling prices when the inventory has not been marked down to market. Transportation, distribution center, and sourcing costs are capitalized in merchandise inventories. The Company expenses the freight associated with transfers between its store locations in the period incurred. The Company maintains an accrual for shrinkage based on historical rates. Cost of sales is comprised of the cost of merchandise, as well as occupancy, buyers’ compensation, and shipping and handling costs. The cost of merchandise is recorded net of amounts received from suppliers for damaged product returns, markdown allowances, and volume rebates, as well as cooperative advertising reimbursements received in excess of specific, incremental advertising expenses. Occupancy costs include the amortization of amounts received from landlords for tenant improvements. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation and amortization. Significant additions and improvements to property and equipment are capitalized. Depreciation and amortization are computed on a straight-line basis over the following estimated useful lives: Buildings Maximum of 50 years Leasehold improvements 10 years or term of lease, if shorter Furniture, fixtures, and equipment 3 -10 years Software 2 -7 years Maintenance and repairs are charged to current operations as incurred. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated. |
Internal-Use Software Development Costs | Internal-Use Software Development Costs The Company capitalizes certain external and internal computer software and software development costs incurred during the application development stage. The application development stage generally includes software design and configuration, coding, testing, and installation activities. Capitalized costs include only external direct cost of materials and services consumed in developing or obtaining internal-use software, and payroll and payroll-related costs for employees who are directly associated with and devote time to the internal-use software project. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended use. Training and maintenance costs are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Capitalized software, net of accumulated amortization, is included as a component of property and equipment and was $46 million and $39 million at January 30, 2016 and January 31, 2015 , respectively. |
Recoverability of Long-Lived Assets | Recoverability of Long-Lived Tangible Assets The Company performs an impairment review when circumstances indicate that the carrying value of long-lived tangible assets may not be recoverable. Management’s policy in determining whether an impairment indicator exists, a triggering event, comprises measurable operating performance criteria at the division level, as well as qualitative measures. The Company considers historical performance and future estimated results, which are predominately identified from the Company’s strategic long-range plans, in its evaluation of potential store-level impairment and then compares the carrying amount of the asset with the estimated future cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds the estimated expected undiscounted future cash flows, the Company measures the amount of the impairment by comparing the carrying amount of the asset with its estimated fair value. The estimation of fair value is measured by discounting expected future cash flows at the Company’s weighted-average cost of capital. The Company estimates fair value based on the best information available using estimates, judgments, and projections as considered necessary. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and intangible assets with indefinite lives are reviewed for impairment annually during the first quarter of each fiscal year or more frequently if impairment indicators arise. The review of goodwill impairment consists of either using a qualitative approach to determine whether it is more likely than not that the fair value of the assets is less than their respective carrying values or a two-step impairment test, if necessary. If, based on the results of the qualitative assessment, it is concluded that it is not more likely than not that the fair value of the intangible asset is greater than its carrying value, the two-step test is performed to identify potential impairment. If it is determined that it is not more likely than not that the fair value of the reporting unit is less than its carrying value, it is unnecessary to perform the two-step impairment test. Based on certain circumstances, we may elect to bypass the qualitative assessment and proceed directly to performing the first step of the two-step impairment test. The first step of the two-step goodwill impairment test compares the fair value of the reporting unit to its carrying amount, including goodwill. The second step includes hypothetically valuing all the tangible and intangible assets of the reporting unit as if the reporting unit had been acquired in a business combination. Then, the implied fair value of the reporting unit’s goodwill is compared to the carrying amount of that goodwill. If the carrying value of the asset exceeds its fair value, an impairment loss is recognized in the amount of the excess. The fair value of each reporting unit is determined using a combination of market and discounted cash flow approaches. Intangible assets that are determined to have finite lives are amortized over their useful lives and are measured for impairment only when events or changes in circumstances indicate that the carrying value may be impaired. Intangible assets with indefinite lives are tested for impairment if impairment indicators arise and, at a minimum, annually. The impairment review for intangible assets with indefinite lives consists of either performing a qualitative or a quantitative assessment. If the results of the qualitative assessment indicate that it is more likely than not that the fair value of the indefinite-lived intangible is less than its carrying amount, or if we elect to proceed directly to a quantitative assessment, we calculate the fair value using a discounted cash flow method, based on the relief from royalty concept, and compare the fair value to the carrying value to determine if the asset is impaired. |
Derivative Financial Instruments | Derivative Financial Instruments All derivative financial instruments are recorded in the Company’s Consolidated Balance Sheets at their fair values. For derivatives designated as a hedge, and effective as part of a hedge transaction, the effective portion of the gain or loss on the hedging derivative instrument is reported as a component of other comprehensive income/loss or as a basis adjustment to the underlying hedged item and reclassified to earnings in the period in which the hedged item affects earnings. The effective portion of the gain or loss on hedges of foreign net investments is generally not reclassified to earnings unless the net investment is disposed of. To the extent derivatives do not qualify or are not designated as hedges, or are ineffective, their changes in fair value are recorded in earnings immediately, which may subject the Company to increased earnings volatility. |
Fair Value | Fair Value The Company categorizes its financial instruments into a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants exclusive of any transaction costs. The Company’s financial assets recorded at fair value are categorized as follows: Level 1 - Quoted prices for identical instruments in active markets. Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets. Level 3 - Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable. |
Income Taxes | Income Taxes The Company accounts for its income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Deferred tax assets are recognized for tax credits and net operating loss carryforwards, reduced by a valuation allowance, which is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes net deferred tax assets to the extent that it believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. A taxing authority may challenge positions that the Company adopted in its income tax filings. Accordingly, the Company may apply different tax treatments for transactions in filing its income tax returns than for income tax financial reporting. The Company regularly assesses its tax positions for such transactions and records reserves for those differences when considered necessary. Tax positions are recognized only when it is more likely than not, based on technical merits, that the positions will be sustained upon examination. Tax positions that meet the more-likely-than-not threshold are measured using a probability weighted approach as the largest amount of tax benefit that is greater than fifty percent likely of being realized upon settlement. Whether the more-likely-than-not recognition threshold is met for a tax position is a matter of judgment based on the individual facts and circumstances of that position evaluated in light of all available evidence. The Company recognizes interest and penalties related to unrecognized tax benefits within income tax expense in the accompanying Consolidated Statement of Operations. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheet. Provision for U.S. income taxes on undistributed earnings of foreign subsidiaries is made only on those amounts in excess of the funds considered to be permanently reinvested. |
Pension and Postretirement Obligations | Pension and Postretirement Obligations The discount rate for the U.S. plans is determined by reference to the Bond:Link interest rate model based upon a portfolio of highly rated U.S. corporate bonds with individual bonds that are theoretically purchased to settle the plan’s anticipated cash outflows. The cash flows are discounted to their present value and an overall discount rate is determined. The discount rate selected to measure the present value of the Company’s Canadian benefit obligations was developed by using the plan’s bond portfolio indices, which match the benefit obligations. The Company measures its plan assets and benefit obligations using the month-end date that is closest to our fiscal year end. |
Insurance Liabilities | Insurance Liabilities The Company is primarily self-insured for health care, workers’ compensation, and general liability costs. Accordingly, provisions are made for the Company’s actuarially determined estimates of discounted future claim costs for such risks, for the aggregate of claims reported and claims incurred but not yet reported. Self-insured liabilities totaled $13 million at both January 30, 2016 and January 31, 2015. The Company discounts its workers’ compensation and general liability reserves using a risk-free interest rate. Imputed interest expense related to these liabilities was not significant for any of the periods presented. |
Accounting for Leases | Accounting for Leases The Company recognizes rent expense for operating leases as of the possession date for store leases or the commencement of the agreement for a non-store lease. Rental expense, inclusive of rent holidays, concessions, and tenant allowances are recognized over the lease term on a straight-line basis. Contingent payments based upon sales and future increases determined by inflation related indices cannot be estimated at the inception of the lease and accordingly, are charged to operations as incurred. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of the Company’s international operations is the applicable local currency. The translation of the applicable foreign currency into U.S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for revenue and expense accounts using the weighted-average rates of exchange prevailing during the year. The unearned gains and losses resulting from such translation are included as a separate component of accumulated other comprehensive loss within shareholders’ equity. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ ASU ”) 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. This amendment changes how deferred taxes are recognized by eliminating the requirement of presenting deferred tax liabilities and assets as current and noncurrent on the balance sheet. Instead, the requirement will be to classify all deferred tax liabilities and assets as noncurrent. ASU 2015-17 is effective for annual reporting p eriods beginning after December 15, 2016, including interim periods within that reporting period, with earlier adoption permitted. ASU 2015-17 can be adopted either prospectively or retrospectively to all periods presented. The Company plans on early adopting ASU 2015-17 prospectively during fiscal year 2016. The adoption of this guidance is not expected to have an effect on our results of operations or cash flows, as this represents only a change in balance sheet classification. In February 2016, the FASB issued ASU 2016-02, Leases . This ASU revises the existing guidance related to leases by requiring lessees to recognize a lease liability and a right-of-use asset for all leases. This ASU also requires additional disclosure regarding leasing arrangements. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years , and requires a modified retrospective adoption, with earlier adoption permitted . The Company is currently evaluating the impact of the adoption of this ASU on its consolidated financial s tatements . Other recently issued accounting pronouncements did not, or are not believed by management to, have a material effect on the Company’s present or future consolidated financial statements |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Significant Accounting Policies [Line Items] | |
Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted earnings per share is as follows: 2015 2014 2013 (in millions, except per share data) Net Income $ 541 $ 520 $ 429 Weighted-average common shares outstanding 139.1 143.9 148.4 Basic earnings per share $ 3.89 $ 3.61 $ 2.89 Weighted-average common shares outstanding 139.1 143.9 148.4 Dilutive effect of potential common shares 1.7 2.1 2.1 Weighted-average common shares outstanding assuming dilution 140.8 146.0 150.5 Diluted earnings per share $ 3.84 $ 3.56 $ 2.85 |
Estimated Useful Lives | Depreciation and amortization are computed on a straight-line basis over the following estimated useful lives: Buildings Maximum of 50 years Leasehold improvements 10 years or term of lease, if shorter Furniture, fixtures, and equipment 3 -10 years Software 2 -7 years |
Advertising Expenses [Member] | |
Significant Accounting Policies [Line Items] | |
Costs Included as Component of Selling, General and Administrative Expenses | Advertising costs, which are included as a component of selling, general and administrative expenses, were as follows: 2015 2014 2013 ($ in millions) Advertising expenses $ 119 $ 125 $ 124 Cooperative advertising reimbursements (19) (21) (22) Net advertising expense $ 100 $ 104 $ 102 |
Catalog Expense [Member] | |
Significant Accounting Policies [Line Items] | |
Costs Included as Component of Selling, General and Administrative Expenses | Catalog costs, which are included as a component of selling, general and administrative expenses, were as follows: 2015 2014 2013 ($ in millions) Catalog costs $ 28 $ 32 $ 36 Cooperative reimbursements (7) (7) (5) Net catalog expense $ 21 $ 25 $ 31 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Segment Information [Abstract] | |
Sales and Division Operating Results for Reportable Segments | The Company evaluates performance based on several factors, of which the primary financial measure is division results. Division profit reflects income before income taxes, pension litigation charge, corporate expense, non-operating income, and net interest expense. 2015 2014 2013 ($ in millions) Sales Athletic Stores $ 6,468 $ 6,286 $ 5,790 Direct-to-Customers 944 865 715 Total sales $ 7,412 $ 7,151 $ 6,505 2015 2014 2013 Operating Results Athletic Stores (1) $ 872 $ 777 $ 656 Direct-to-Customers (2) 142 109 84 Division profit 1,014 886 740 Less: Pension litigation charge 100 — — Less: Corporate expense (3) 77 81 76 Operating profit 837 805 664 Interest expense, net 4 5 5 Other income 4 9 4 Income before income taxes $ 837 $ 809 $ 663 (1) Included in the results for 2015, 2014, and 2013 are impairment and other charges of $4 million, $2 million, and $2 million, respectively. The 2015 amount reflects charges to write-down long-lived store assets of Runners Point. The 2014 amount reflected impairment charges to fully write-down the value of certain trade names. The 2013 amounts were incurred in connection with the closure of CCS stores. See Note 4, Litigation, Impairment and Other Charges for additional information . (2) Included in the results for 2015 is a $1 million non-cash impairment charge relating to an ecommerce trade name. The 2014 amount reflected non-cash impairment charges of $2 million related to the CCS trade name. See Note 4, Litigation, Impairment and Other Charges for additional information . (3) Corporate expense for all years presented reflects the reallocation of expense between corporate and the operating divisions. Based upon annual internal studies of corporate expense, the allocation of such expenses to the operating divisions was increased by $5 million for 2015, $4 million for 2014, and $27 million for 2013 thereby reducing corporate expense . |
Segment Information | Depreciation and Amortization Capital Expenditures (1) Total Assets 2015 2014 2013 2015 2014 2013 2015 2014 2013 ($ in millions) Athletic Stores $ 130 $ 119 $ 112 $ 181 $ 151 $ 163 $ 2,612 $ 2,499 $ 2,398 Direct-to-Customers 7 7 9 7 9 5 330 315 320 137 126 121 188 160 168 2,942 2,814 2,718 Corporate 11 13 12 40 30 38 833 763 769 Total Company $ 148 $ 139 $ 133 $ 228 $ 190 $ 206 $ 3,775 $ 3,577 $ 3,487 (1) Reflects cash capital expenditures for all years presented. |
Sales and Long-Lived Asset Information by Geographic Area | Sales and long-lived asset information by geographic area as of and for the fiscal years ended January 30, 2016 , January 31, 2015 , and February 1, 2014 are presented in the following tables. Sales are attributed to the country in which the sales transaction is fulfilled. Long-lived assets reflect property and equipment. 2015 2014 2013 Sales ($ in millions) United States $ 5,305 $ 4,976 $ 4,567 International 2,107 2,175 1,938 Total sales $ 7,412 $ 7,151 $ 6,505 2015 2014 2013 Long-Lived Assets ($ in millions) United States $ 486 $ 446 $ 394 International 175 174 196 Total long-lived assets $ 661 $ 620 $ 590 |
Litigation, Impairment and Ot36
Litigation, Impairment and Other Charges (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Litigation, Impairment and Other Charges [Abstract] | |
Schedule of Litigation, Impairment and Other Charges | 2015 2014 2013 ($ in millions) Pension litigation charge $ 100 $ — $ — Impairment of long-lived assets 4 — — Other intangible asset impairments 1 4 — CCS store closure costs — — 2 Total litigation, impairment and other charges $ 105 $ 4 $ 2 |
Merchandise Inventories (Tables
Merchandise Inventories (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Merchandise Inventories [Abstract] | |
Schedule of Merchandise Inventories | 2015 2014 ($ in millions) LIFO inventories $ 847 $ 821 FIFO inventories 438 429 Total merchandise inventories $ 1,285 $ 1,250 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Other Current Assets [Abstract] | |
Schedule of Other Current Assets | 2015 2014 ($ in millions) Net receivables $ 94 $ 78 Prepaid rent 81 77 Prepaid income taxes 66 34 Prepaid expenses and other current assets 33 32 Deferred taxes and costs 22 17 Fair value of derivative contracts 3 — Income tax receivable 1 1 $ 300 $ 239 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Property and Equipment, Net [Abstract] | |
Schedule of Property and Equipment | 2015 2014 ($ in millions) Land $ 4 $ 4 Buildings: Owned 43 44 Furniture, fixtures, equipment and software development costs: Owned 954 900 Assets under capital leases 8 9 1,009 957 Less: accumulated depreciation (640) (606) 369 351 Alterations to leased and owned buildings Cost 804 779 Less: accumulated amortization (512) (510) 292 269 $ 661 $ 620 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Goodwill and Other Intangible Assets, Net [Abstract] | |
Schedule of Goodwill | Direct-to- Athletic Stores Customers Total ($ in millions) Goodwill at February 1, 2014 $ 21 $ 142 $ 163 Foreign currency translation adjustment (4) (2) (6) Goodwill at January 31, 2015 $ 17 $ 140 $ 157 Foreign currency translation adjustment — (1) (1) Goodwill at January 30, 2016 $ 17 $ 139 $ 156 |
Other Intangible Assets, net (T
Other Intangible Assets, net (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Goodwill and Other Intangible Assets, Net [Abstract] | |
Components of Finite-Lived Intangible Assets and Intangible Assets Not Subject to Amortization | January 30, 2016 January 31, 2015 Wtd. Avg. Gross Accum. Net Life in Gross Accum. Net ($ in millions) value amort. Value Years (2) value amort. Value Amortized intangible assets: (1) Lease acquisition costs $ 119 $ (107) $ 12 10.0 $ 128 $ (116) $ 12 Trademarks / trade names 20 (12) 8 20.0 21 (12) 9 Favorable leases 7 (5) 2 7.8 7 (4) 3 $ 146 $ (124) $ 22 13.8 $ 156 $ (132) $ 24 Indefinite life intangible assets: (1) Runners Point Group trademarks / trade names (3) 23 25 $ 23 $ 25 Other intangible assets, net $ 45 $ 49 (1) The movements in the ending balances also reflect the effect of foreign currency fluctuations due primarily to the movements of the euro in relation to the U.S. dollar . (2) The weighted-average useful life is as of January 30, 2016 and excludes those assets that are fully amortized . (3) Includes non-cash impairment charges of $1 million recorded in both 2015 and 2014. These impairment charges are described more fully in Note 4 , Litigation, Impairment and Other Charges . |
Estimated Future Expected Amortization Expense for Finite Life Intangible Assets | Estimated future amortization expense for finite lived intangibles for the next five years is as follows: ($ in millions) 2016 $ 4 2017 3 2018 3 2019 3 2020 3 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Other Assets [Abstract] | |
Schedule of Other Assets | 2015 2014 ($ in millions) Restricted cash (1) $ 22 $ 22 Deferred tax costs 12 5 Pension asset 8 13 Auction rate security 6 6 Funds deposited in insurance trust (2) 4 4 Other 21 24 $ 73 $ 74 (1) Restricted cash is comprised of amounts held in escrow in connection with various leasing arrangements in Europe . The Company is required by its insurers to collateralize part of the self-insured workers’ compensation and liability claims. The Company has chosen to satisfy these collateral requirements by depositing funds in insurance trusts . |
Accrued and Other Liabilities (
Accrued and Other Liabilities (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Accrued and Other Liabilities [Abstract] | |
Schedule of Accrued and Other Liabilities | 2015 2014 ($ in millions) Current deferred tax liabilities $ 62 $ 48 Taxes other than income taxes 56 56 Other payroll and payroll related costs, excluding taxes 54 54 Customer deposits (1) 46 44 Incentive bonuses 46 51 Income taxes payable 39 10 Property and equipment (2) 27 49 Other 90 81 $ 420 $ 393 (1) Customer deposits include unredeemed gift cards and certificates, merchandise credits, and deferred revenue related to undelivered merchandise, including layaway sales. Accruals for property and equipment are properly excluded from the statements of cash flows for all years presented |
Long-Term Debt and Obligation44
Long-Term Debt and Obligations Under Capital Leases (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Long-Term Debt and Obligations Under Capital Leases [Abstract] | |
Long Term Debt And Capital Leases Obligations | 2015 2014 ($ in millions) 8.5% debentures payable 2022 $ 118 $ 118 Unamortized gain related to interest rate swaps (1) 11 12 Obligations under capital leases 1 4 $ 130 $ 134 Less: current portion of obligations under capital leases 1 2 $ 129 $ 132 (1) In 2009, the Company terminated an interest rate swap at a gain. This gain is being amortized as part of interest expense over the remaining term of the debt using the effective-yield method . |
Maturities of Long-term Debt | Maturities of long-term debt and minimum rent payments under capital leases in future periods are: Long-Term Debt Capital Leases Total ($ in millions) 2016 $ — $ 1 $ 1 2017-2020 — — — Thereafter 118 — 118 $ 118 $ 1 $ 119 Less: Imputed interest — — — Current portion — 1 1 $ 118 $ — $ 118 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Other Liabilities [Abstract] | |
Other Liabilities | 2015 2014 ($ in millions) Straight-line rent liability $ 155 $ 124 Pension litigation liability 100 — Pension benefits 69 46 Income taxes 22 24 Postretirement benefits 13 18 Deferred taxes 13 14 Workers’ compensation and general liability reserves 8 9 Other 13 18 $ 393 $ 253 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Leases [Abstract] | |
Leases | Included in the amounts below, are non-store expenses that totaled $18 million in 2015, $17 million in 2014, and $16 million in 2013. 2015 2014 2013 ($ in millions) Minimum rent $ 618 $ 615 $ 580 Contingent rent based on sales 27 25 22 Sublease income (5) (5) (2) $ 640 $ 635 $ 600 |
Future Minimum Lease Payments Under Non-Cancelable Operating Leases, Net of Future Non-Cancelable Operating Sublease Payments | Future minimum lease payments under non-cance l lable operating leases, net of future non-cance l lable operating sublease payments, are: ($ in millions) 2016 $ 574 2017 542 2018 490 2019 445 2020 406 Thereafter 1,648 Total operating lease commitments $ 4,105 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss, net of tax, is comprised of the following: 2015 2014 2013 ($ in millions) Foreign currency translation adjustments $ (119) $ (75) $ 57 Cash flow hedges 2 (3) (2) Unrecognized pension cost and postretirement benefit (248) (240) (240) Unrealized loss on available-for-sale security (1) (1) (1) $ (366) $ (319) $ (186) |
Changes in Accumulated Other Comprehensive Loss | The changes in accumulated other comprehensive loss for the period ended January 30, 2016 were as follows: Foreign Items Related Unrealized Currency to Pension and Loss on Translation Cash Flow Postretirement Available-For- ($ in millions) Adjustments Hedges Benefits Sale Security Total Balance as of January 31, 2015 $ (75) $ (3) $ (240) $ (1) $ (319) OCI before reclassification (44) 5 (16) — (55) Reclassified from AOCI — — 8 — 8 Other comprehensive income/ (loss) (44) 5 (8) — (47) Balance as of January 30, 2016 $ (119) $ 2 $ (248) $ (1) $ (366) |
Reclassification from Accumulated Other Comprehensive Loss | Reclassifications from accumulated other comprehensive loss for the period ended January 30, 2016 were as follows: ($ in millions) Amortization of actuarial (gain) loss: Pension benefits- amortization of actuarial loss $ 14 Postretirement benefits- amortization of actuarial gain (1) Net periodic benefit cost (see Note 21) 13 Income tax benefit 5 Net of tax $ 8 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Income Taxes [Abstract] | |
Domestic and International Pre-Tax Income | The domestic and international components of pre-tax income are as follows: 2015 2014 2013 ($ in millions) Domestic $ 668 $ 654 $ 558 International 169 155 105 Total pre-tax income $ 837 $ 809 $ 663 |
Income Tax Provision | The income tax provision consists of the following: 2015 2014 2013 ($ in millions) Current: Federal $ 212 $ 195 $ 164 State and local 37 34 26 International 53 40 25 Total current tax provision 302 269 215 Deferred: Federal (8) 16 13 State and local (1) 3 5 International 3 1 1 Total deferred tax provision (6) 20 19 Total income tax provision $ 296 $ 289 $ 234 |
Reconciliation of Significant Differences between Federal Statutory Income Tax Rate and Effective Income Tax Rate on Pre-Tax Income from Continuing Operations | A reconciliation of the significant differences between the federal statutory income tax rate and the effective income tax rate on pre-tax income is as follows: 2015 2014 2013 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % State and local income taxes, net of federal tax benefit 2.8 3.2 3.5 International income taxed at varying rates (2.1) (1.9) (1.6) Foreign tax credits (2.8) (2.5) (2.5) Domestic/foreign tax settlements (0.1) (0.6) (1.1) Federal tax credits (0.2) (0.2) (0.2) Other, net 2.8 2.7 2.2 Effective income tax rate 35.4 % 35.7 % 35.3 % |
Significant Portions of Deferred Tax Accounts | Items that give rise to significant portions of the Company’s deferred tax assets and deferred tax liabilities are as follows: 2015 2014 ($ in millions) Deferred tax assets: Tax loss/credit carryforwards and capital loss $ 8 $ 9 Employee benefits 97 65 Property and equipment 121 137 Straight-line rent 39 33 Other 34 38 Total deferred tax assets 299 282 Valuation allowance (5) (6) Total deferred tax assets, net $ 294 $ 276 Deferred tax liabilities: Merchandise inventories 104 96 Goodwill and other intangible assets 20 17 Other 6 1 Total deferred tax liabilities $ 130 $ 114 Net deferred tax asset $ 164 $ 162 Balance Sheet caption reported in: Deferred taxes $ 234 $ 221 Other current assets 5 3 Accrued and other current liabilities (62) (48) Other liabilities (13) (14) $ 164 $ 162 |
Unrecognized Tax Benefits Activity | The following table summarizes the activity related to unrecognized tax benefits: 2015 2014 2013 ($ in millions) Unrecognized tax benefits at beginning of year $ 40 $ 48 $ 54 Foreign currency translation adjustments (2) (6) (4) Increases related to current year tax positions 4 3 3 Increases related to prior period tax positions 2 1 4 Decreases related to prior period tax positions — (1) (2) Settlements (1) (1) (7) Lapse of statute of limitations (5) (4) — Unrecognized tax benefits at end of year $ 38 $ 40 $ 48 |
Financial Instruments and Ris49
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Financial Instruments and Risk Management [Abstract] | |
Fair Value of Derivative Contracts on Gross Basis, by Type of Contract | The following is presented on a gross basis, by type of contract: Balance Sheet ($ in millions) Caption 2015 2014 Hedging Instruments: Foreign exchange forward contracts Current assets $ 3 $ — Foreign exchange forward contracts Current liabilities $ — $ 4 Non-hedging Instruments: Foreign exchange forward contracts Current liabilities $ — $ 1 |
Notional Amounts for Outstanding Derivatives and Weighted-Average Exchange Rates of Foreign Exchange Forward Contracts | The table below presents the notional amounts for all outstanding derivatives and the weighted-average exchange rates of foreign exchange forward contracts at January 30, 2016 : Contract Value Weighted-Average ($ in millions) Exchange Rate Inventory Buy €/Sell British £ $ 72 0.7359 Intercompany Buy €/Sell British £ $ 11 0.7298 Buy US/Sell CAD $ 2 1.4080 Diesel fuel forwards $ 1 — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Fair Value Measurements [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table provides a summary of the recognized assets and liabilities that are measured at fair value on a recurring basis: As of January 30, 2016 As of January 31, 2015 ($ in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Available-for-sale securities $ — $ 6 $ — $ — $ 6 $ — Foreign exchange forward contracts — 3 — — — — Total Assets $ — $ 9 $ — $ — $ 6 $ — Liabilities Foreign exchange forward contracts — — — — 5 — Total Liabilities $ — $ — $ — $ — $ 5 $ — |
Carrying Value and Estimated Fair Value of Long-Term Debt | The carrying value and estimated fair value of long-term debt and obligations under capital leases were as follows: 2015 2014 ($ in millions) Carrying value $ 130 $ 134 Fair value $ 156 $ 163 |
Retirement Plans and Other Be51
Retirement Plans and Other Benefits (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |
Changes in Benefit Obligations and Plan Assets, Funded Status, and Amounts Recognized in Consolidated Balance Sheets | The following tables set forth the plans’ changes in benefit obligations and plan assets, funded status, and amounts recognized in the Consolidated Balance Sheets, as of January 30, 2016 and January 31, 2015 : Pension Benefits Postretirement Benefits 2015 2014 2015 2014 ($ in millions) Change in benefit obligation Benefit obligation at beginning of year $ 722 $ 674 $ 19 $ 15 Service cost 17 15 — — Interest cost 24 28 1 1 Plan participants’ contributions — — 1 2 Actuarial (gain) loss (39) 67 (5) 4 Foreign currency translation adjustments (6) (9) — — Benefits paid (51) (53) (2) (3) Benefit obligation at end of year $ 667 $ 722 $ 14 $ 19 Change in plan assets Fair value of plan assets at beginning of year $ 686 $ 650 Actual (loss) return on plan assets (34) 90 Employer contributions 8 9 Foreign currency translation adjustments (7) (10) Benefits paid (51) (53) Fair value of plan assets at end of year $ 602 $ 686 Funded status $ (65) $ (36) $ (14) $ (19) Amounts recognized on the balance sheet: Other assets $ 8 $ 13 $ — $ — Accrued and other liabilities (4) (3) (1) (1) Other liabilities (69) (46) (13) (18) $ (65) $ (36) $ (14) $ (19) Amounts recognized in accumulated other comprehensive loss, pre-tax: Net loss (gain) $ 410 $ 394 $ (10) $ (6) Prior service cost 1 1 — — $ 411 $ 395 $ (10) $ (6) |
Information for Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets | As of January 30, 2016 and January 31, 2015 , the Canadian qualified pension plan’s assets exceeded its accumulated benefit obligation. Information for those pension plans with an accumulated benefit obligation in excess of plan assets is as follows: 2015 2014 ($ in millions) Projected benefit obligation $ 617 $ 662 Accumulated benefit obligation 617 662 Fair value of plan assets 544 613 |
Changes in Accumulated Other Comprehensive Loss (Pre-Tax) | The following tables set forth the changes in accumulated other comprehensive loss (pre-tax) at January 30, 2016 : Pension Postretirement Benefits Benefits ($ in millions) Net actuarial loss (gain) at beginning of year $ 394 $ (6) Amortization of net (loss) gain (14) 1 Loss (gain) arising during the year 34 (5) Foreign currency fluctuations (4) — Net actuarial loss (gain) at end of year (1) $ 410 $ (10) Net prior service cost at end of year (2) 1 — Total amount recognized $ 411 $ (10) (1) The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost (income) during the next year are approximately $14 million and $(2) million related to the pension and postretirement plans, respectively . (2) The net prior service cost did not change during the year and is not expected to change significantly during the next year . |
Assumptions Used in the Calculation of Net Benefit Cost | Assumptions used in the calculation of net benefit cost include the discount rate selected and disclosed at the end of the previous year as well as other assumptions detailed in the table below: Pension Benefits Postretirement Benefits 2015 2014 2013 2015 2014 2013 Discount rate 3.4 % 4.3 % 3.8 % 3.4 % 4.2 % 3.7 % Rate of compensation increase 3.7 % 3.7 % 3.7 % Expected long-term rate of return on assets 6.1 % 6.3 % 6.2 % |
Net Benefit Expense (Income) | The components of net benefit expense (income) are: Pension Benefits Postretirement Benefits 2015 2014 2013 2015 2014 2013 ($ in millions) Service cost $ 17 $ 15 $ 14 $ — $ — $ — Interest cost 24 28 25 1 1 1 Expected return on plan assets (39) (38) (39) — — — Amortization of net loss (gain) 14 15 17 (1) (3) (3) Net benefit expense (income) $ 16 $ 20 $ 17 $ — $ (2) $ (2) |
Assumed Health Care Cost Trend Rates Related to Measurement of SERP Medical Plan | The following initial and ultimate cost trend rate assumptions were used to determine the benefit obligations under the SERP Medical Plan: Medical Trend Rate Dental Trend Rate 2015 2014 2013 2015 2014 2013 Initial cost trend rate 7.0 % 7.0 % 7.0 % 5.0 % 5.0 % 5.0 % Ultimate cost trend rate 5.0 % 5.0 % 5.0 % 5.0 % 5.0 % 5.0 % Year that the ultimate cost trend rate is reached 2021 2019 2018 2016 2015 2014 The following initial and ultimate cost trend rate assumptions were used to determine the net periodic cost under the SERP Medical Plan: Medical Trend Rate Dental Trend Rate 2015 2014 2013 2015 2014 2013 Initial cost trend rate 7.0 % 7.0 % 7.5 % 5.0 % 5.0 % 5.0 % Ultimate cost trend rate 5.0 % 5.0 % 5.0 % 5.0 % 5.0 % 5.0 % Year that the ultimate cost trend rate is reached 2019 2018 2018 2015 2014 2013 |
Effect of One Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one percentage-point change in the assumed health care cost trend rates would have the following effects on the SERP Medical Plan: 1% Increase 1% (Decrease) ($ in millions) Effect on total service and interest cost components $ — $ — Effect on accumulated postretirement benefit obligation 2 (2) |
Estimated Future Benefit Payments | Estimated future benefit payments for each of the next five years and the five years thereafter are as follows: Pension Postretirement Benefits Benefits ($ in millions) 2016 $ 71 $ 1 2017 54 1 2018 52 1 2019 51 1 2020 50 1 2021–2025 231 3 |
U.S. Qualified Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair Value of Pension Plan Assets | The fair values of the Company’s U.S. pension plan assets at January 30, 2016 and January 31, 2015 were as follows: Level 1 Level 2 Level 3 2015 Total 2014 Total* ($ in millions) Cash and cash equivalents $ — $ 1 $ — $ 1 $ 1 Equity securities: U.S. large-cap (1) — 93 — 93 102 U.S. mid-cap (1) — 26 — 26 31 International (2) — 61 — 61 71 Corporate stock (3) 27 — — 27 21 Fixed-income securities: Long duration corporate and government bonds (4) — 217 — 217 254 Intermediate duration corporate and government bonds (5) — 99 — 99 110 Other types of investments: Real estate securities (6) — 17 — 17 20 Insurance contracts — 1 — 1 1 Other (7) — 2 — 2 2 Total assets at fair value $ 27 $ 517 — $ — $ 544 $ 613 * Each category of plan assets is classified within the same level of the fair value hierarchy for 2015 and 2014. (1) These categories consist of various managed funds that invest primarily in common stocks, as well as other equity securities and a combination of other funds. (2) This category comprises three managed funds that invest primarily in international common stocks, as well as other equity securities and a combination of other funds. (3) This category consists of the Company’s common stock. The increase from the prior year is due to price appreciation. No additional stock was contributed during the year. (4) This category consists of various fixed-income funds that invest primarily in long-term bonds, as well as a combination of other funds, that together are designed to exceed the performance of related long-term market indices. (5) This category consists of two fixed-income funds that invest primarily in intermediate duration bonds, as well as a combination of other funds, that together are designed to exceed the performance of related indices. (6) This category consists of one fund that invests in global real estate securities. (7) This category consists primarily of cash related to net pending trade purchases and sales. |
Canadian Qualified Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair Value of Pension Plan Assets | The fair values of the Company’s Canadian pension plan assets at January 30, 2016 and January 31, 2015 were as follows: Level 1 Level 2 Level 3 2015 Total 2014 Total* ($ in millions) Cash and cash equivalents $ — $ 2 $ — $ 2 $ 3 Equity securities: Canadian and international (1) 4 — — 4 5 Fixed-income securities: Cash matched bonds (2) — 52 — 52 65 Total assets at fair value $ 4 $ 54 $ — $ 58 $ 73 *Each category of plan assets is classified within the same level of the fair value hierarchy for 2015 and 2014. (1) This category comprises one mutual fund that invests primarily in a diverse portfolio of Canadian securities. (2) This category consists of fixed-income securities, including strips and coupons, issued or guaranteed by the Government of Canada, provinces or municipalities of Canada including their agencies and crown corporations, as well as other governmental bonds and corporate bonds. |
Benefit Obligations [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Assumptions Used in the Calculation of Net Benefit Cost | The following weighted-average assumptions were used to determine the benefit obligations under the plans: Pension Benefits Postretirement Benefits 2015 2014 2015 2014 Discount rate 4.1 % 3.4 % 4.1 % 3.4 % Rate of compensation increase 3.7 % 3.7 % |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Share-Based Compensation [Abstract] | |
Total Compensation Expense and the Related Tax Benefits Recognized | Total compensation expense included in SG&A and the associated tax benefits recognized related to the Company’s share-based compensation plans were as follows: 2015 2014 2013 ($ in millions) Options and shares purchased under the employee stock purchase plan $ 11 $ 13 $ 12 Restricted stock and restricted stock units 11 11 13 Total share-based compensation expense $ 22 $ 24 $ 25 Tax benefit recognized $ 8 $ 7 $ 8 Excess income tax benefit from settled equity-classified share-based awards reported as a cash flow from financing activities $ 35 $ 12 $ 9 |
Assumptions used to Compute Share-Based Compensation Expense | The following table shows the Company’s assumptions used to compute the share-based compensation expense: Stock Option Plans Stock Purchase Plan 2015 2014 2013 2015 2014 2013 Weighted-average risk free rate of interest 1.5 % 2.1 % 1.0 % 0.2 % 0.1 % 0.2 % Expected volatility 30 % 39 % 42 % 25 % 24 % 40 % Weighted-average expected award life (in years) 6.0 6.1 6.0 1.0 1.0 1.0 Dividend yield 1.6 % 1.9 % 2.3 % 1.6 % 2.0 % 2.3 % Weighted-average fair value $16.07 $15.30 $10.98 $10.47 $7.35 $5.79 |
Options Granted under Stock Option Plans | The information set forth in the following table covers options granted under the Company’s stock option plans: Weighted- Weighted- Number Average Average of Remaining Exercise Shares Contractual Life Price (in thousands) (in years) (per share) Options outstanding at January 31, 2015 5,569 $ 25.89 Granted 694 62.29 Exercised (2,511) 25.50 Expired or cancelled (58) 49.17 Options outstanding at January 30, 2016 3,694 5.6 $ 32.62 Options exercisable at end of year 2,495 4.1 $ 22.56 Options vested and expected to vest 3,662 5.5 $ 32.40 |
Total Intrinsic Value of Options Exercised | The total intrinsic value of options exercised (the difference between the market price of the Company’s common stock on the exercise date and the price paid by the optionee to exercise the option) is presented below: 2015 2014 2013 ($ in millions) Exercised $ 99 $ 22 $ 21 |
Aggregate Intrinsic Value for Stock Options Outstanding and Exercisable | The aggregate intrinsic value for stock options outstanding, outstanding and exercisable, and vested and expected to vest (the difference between the Company’s closing stock price on the last trading day of the period and the exercise price of the options, multiplied by the number of in-the-money stock options) is presented below: 2015 ($ in millions) Outstanding $ 129 Outstanding and exercisable $ 112 Vested and expected to vest $ 129 |
Information about Stock Options Outstanding and Exercisable | The following table summarizes information about stock options outstanding and exercisable at January 30, 2016 : Options Outstanding Options Exercisable Weighted- Average Weighted- Weighted- Remaining Average Average Number Contractual Exercise Number Exercise Range of Exercise Prices Outstanding Life Price Exercisable Price (in thousands, except prices per share and contractual life) $9.85 to $18.80 858 2.7 $ 13.32 858 $ 13.32 $18.84 to $24.75 855 3.3 19.80 855 19.80 $30.92 to $36.59 784 6.5 32.84 611 32.44 $45.08 to $73.21 1,197 8.7 55.48 171 47.42 3,694 5.6 $ 32.62 2,495 $ 22.56 |
Restricted Share and Unit Activity | Restricted share and RSU activity is summarized as follows: Weighted- Average Number Remaining Weighted-Average of Contractual Grant Date Shares Life Fair Value (in thousands) (in years) (per share) Nonvested at beginning of year 1,038 $ 37.96 Granted 155 63.73 Vested (322) 32.34 Expired or cancelled (68) 37.97 Nonvested at end of year 803 0.8 $ 45.19 Aggregate value ($ in millions) $ 36 |
Quarterly Results (Tables)
Quarterly Results (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Quarterly Results [Abstract] | |
Quarterly Results (Unaudited) | 1 st Q 2 nd Q 3 rd Q (3) 4 th Q (4) Year (in millions, except per share amounts) Sales 2015 1,916 1,695 1,794 2,007 $ 7,412 2014 1,868 1,641 1,731 1,911 $ 7,151 Gross margin (1) 2015 670 553 607 675 $ 2,505 2014 646 525 574 629 $ 2,374 Operating profit (2) 2015 290 186 117 244 $ 837 2014 254 144 187 220 $ 805 Net income 2015 184 119 80 158 $ 541 2014 162 92 120 146 $ 520 Basic earnings per share: 2015 1.31 0.85 0.57 1.15 $ 3.89 2014 1.12 0.63 0.84 1.03 $ 3.61 Diluted earnings per share: 2015 1.29 0.84 0.57 1.14 $ 3.84 2014 1.10 0.63 0.82 1.01 $ 3.56 (1) Gross margin represents sales less cost of sales. (2) Operating profit represents income before income taxes, interest expense, net, and non-operating income. (3) During the third quarter of 2015, the Company recorded a pre-tax charge of $100 million, see Note 23, Legal Proceedings for further information . (4) During the fourth quarter of 2015 impairment charges totaling $5 million were recorded, see Note 4, Litigation, Impairment and Other Charges for further information. |
Summary of Significant Accoun54
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Significant Accounting Policies [Line Items] | |||
Gift card breakage income | $ 5 | $ 5 | $ 4 |
Catalog Costs, amortization period | P90D | ||
Prepaid catalog cost | $ 2 | $ 3 | |
Contingently issuable shares excluded from diluted earnings per share | 0.2 | 0.3 | 0.2 |
Cash equivalents | $ 983 | $ 930 | |
Available-for-sale securities | 6 | ||
Capitalized software, net of accumulated amortization | 46 | 39 | |
Self-insured liabilities total | $ 13 | $ 13 | |
Stock Option Plans [Member] | |||
Significant Accounting Policies [Line Items] | |||
Potential common shares excluded from calculation of diluted earning per share | 0.6 | 0.6 | 1 |
Summary of Significant Accoun55
Summary of Significant Accounting Policies (Costs Included as Component of Selling, General and Administrative Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Advertising Expenses [Member] | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Advertising expenses | $ 119 | $ 125 | $ 124 |
Cooperative advertising reimbursements | (19) | (21) | (22) |
Net advertising expense | 100 | 104 | 102 |
Cooperative reimbursements | (19) | (21) | (22) |
Catalog Expense [Member] | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Cooperative advertising reimbursements | (7) | (7) | (5) |
Catalog costs | 28 | 32 | 36 |
Cooperative reimbursements | (7) | (7) | (5) |
Net catalog expense | $ 21 | $ 25 | $ 31 |
Summary of Significant Accoun56
Summary of Significant Accounting Policies (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 30, 2016 | Oct. 31, 2015 | [1] | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | [1] | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Summary of Significant Accounting Policies [Abstract] | |||||||||||||
Net Income | $ 158 | $ 80 | $ 119 | $ 184 | $ 146 | $ 120 | $ 92 | $ 162 | $ 541 | $ 520 | $ 429 | ||
Weighted-average common shares outstanding | 139.1 | 143.9 | 148.4 | ||||||||||
Basic earnings per share (in dollars per shares) | $ 1.15 | $ 0.57 | $ 0.85 | $ 1.31 | $ 1.03 | $ 0.84 | $ 0.63 | $ 1.12 | $ 3.89 | $ 3.61 | $ 2.89 | ||
Weighted-average common shares outstanding | 139.1 | 143.9 | 148.4 | ||||||||||
Dilutive effect of potential common shares (in dollars per shares) | 1.7 | 2.1 | 2.1 | ||||||||||
Weighted-average common shares outstanding assuming dilution | 140.8 | 146 | 150.5 | ||||||||||
Diluted earnings per share (in dollars per share) | $ 1.14 | $ 0.57 | $ 0.84 | $ 1.29 | $ 1.01 | $ 0.82 | $ 0.63 | $ 1.10 | $ 3.84 | $ 3.56 | $ 2.85 | ||
[1] | During the third quarter of 2015, the Company recorded a pre-tax charge of $100 million, see Note 23, Legal Proceedings for further information |
Summary of Significant Accoun57
Summary of Significant Accounting Policies (Estimated Useful Lives) (Details) | 12 Months Ended |
Jan. 30, 2016 | |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 50 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 10 years |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 10 years |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 3 years |
Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 7 years |
Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 2 years |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - Futura Sport Ag [Member] $ in Millions | Aug. 03, 2015USD ($)store | Jan. 30, 2016 |
Business Acquisition [Line Items] | ||
Effective date of acquisition | Aug. 3, 2015 | |
Total consideration | $ | $ 2 | |
Number of stores acquired through business acquisition | store | 10 |
Segment Information (Sales and
Segment Information (Sales and Division Operating Results for Reportable Segments) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Jan. 30, 2016USD ($) | Oct. 31, 2015USD ($) | Aug. 01, 2015USD ($) | May. 02, 2015USD ($) | Jan. 31, 2015USD ($) | Nov. 01, 2014USD ($) | [1] | Aug. 02, 2014USD ($) | May. 03, 2014USD ($) | Jan. 30, 2016USD ($)segment | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | |||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Sales | $ 2,007 | $ 1,794 | [1] | $ 1,695 | $ 1,916 | $ 1,911 | $ 1,731 | $ 1,641 | $ 1,868 | $ 7,412 | $ 7,151 | $ 6,505 | ||||||||||
Less: Pension litigation charge | 100 | 100 | ||||||||||||||||||||
Operating profit | 244 | [2],[3] | $ 117 | [1],[2],[3] | $ 186 | [2],[3] | $ 290 | [2],[3] | 220 | [2],[3] | $ 187 | [2],[3] | $ 144 | [2],[3] | $ 254 | [2],[3] | 837 | [2],[3] | 805 | [2],[3] | 664 | |
Interest expense, net | 4 | 5 | 5 | |||||||||||||||||||
Other income | 4 | 9 | 4 | |||||||||||||||||||
Income before income taxes | $ 837 | 809 | 663 | |||||||||||||||||||
Number of reportable segments | segment | 2 | |||||||||||||||||||||
Impairment of assets | $ 4 | |||||||||||||||||||||
Other intangible assets impairments | 1 | 4 | ||||||||||||||||||||
Store closure costs | 2 | |||||||||||||||||||||
Athletic Stores [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Sales | 6,468 | 6,286 | 5,790 | |||||||||||||||||||
Direct to Customer [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Sales | 944 | 865 | 715 | |||||||||||||||||||
Operating Segments [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Division profit | 1,014 | 886 | 740 | |||||||||||||||||||
Operating Segments [Member] | Athletic Stores [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Operating results before restructuring income | [4] | 872 | 777 | 656 | ||||||||||||||||||
Impairment of assets | 4 | |||||||||||||||||||||
Other intangible assets impairments | 2 | |||||||||||||||||||||
Store closure costs | 2 | |||||||||||||||||||||
Operating Segments [Member] | Direct to Customer [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Operating results before restructuring income | [5] | 142 | 109 | 84 | ||||||||||||||||||
Other intangible assets impairments | 1 | |||||||||||||||||||||
Operating Segments [Member] | Trademarks [Member] | Direct to Customer [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Other intangible assets impairments | 2 | |||||||||||||||||||||
Segment Reconciling Items [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Less: Pension litigation charge | 100 | |||||||||||||||||||||
Corporate, Non-Segment [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Less: Corporate expense | [6] | 77 | 81 | 76 | ||||||||||||||||||
Corporate expense due to allocation changes | $ 5 | $ 4 | $ 5 | $ 4 | $ 27 | |||||||||||||||||
[1] | During the third quarter of 2015, the Company recorded a pre-tax charge of $100 million, see Note 23, Legal Proceedings for further information | |||||||||||||||||||||
[2] | During the fourth quarter of 2015 impairment charges totaling $5 million were recorded, see Note 4, Litigation, Impairment and Other Charges for further information. | |||||||||||||||||||||
[3] | Operating profit represents income before income taxes, interest expense, net, and non-operating income. | |||||||||||||||||||||
[4] | Included in the results for 2015, 2014, and 2013 are impairment and other charges of $4 million, $2 million, and $2 million, respectively. The 2015 amount reflects charges to write-down long-lived store assets of Runners Point. The 2014 amount reflected impairment charges to fully write-down the value of certain trade names. The 2013 amounts were incurred in connection with the closure of CCS stores. See Note 4, Litigation, Impairment and Other Charges for additional information | |||||||||||||||||||||
[5] | Included in the results for 2015 is a $1 million non-cash impairment charge relating to an ecommerce trade name. The 2014 amount reflected non-cash impairment charges of $2 million related to the CCS trade name. See Note 4, Litigation, Impairment and Other Charges for additional information | |||||||||||||||||||||
[6] | Corporate expense for all years presented reflects the reallocation of expense between corporate and the operating divisions. Based upon annual internal studies of corporate expense, the allocation of such expenses to the operating divisions was increased by $5 million for 2015, $4 million for 2014, and $27 million for 2013 thereby reducing corporate expense |
Segment Information (Schedule o
Segment Information (Schedule of Segment Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization | $ 148 | $ 139 | $ 133 | |
Capital Expenditures | [1] | 228 | 190 | 206 |
Total Assets | 3,775 | 3,577 | 3,487 | |
Athletic Stores [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization | 130 | 119 | 112 | |
Capital Expenditures | [1] | 181 | 151 | 163 |
Total Assets | 2,612 | 2,499 | 2,398 | |
Direct to Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization | 7 | 7 | 9 | |
Capital Expenditures | [1] | 7 | 9 | 5 |
Total Assets | 330 | 315 | 320 | |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization | 137 | 126 | 121 | |
Capital Expenditures | [1] | 188 | 160 | 168 |
Total Assets | 2,942 | 2,814 | 2,718 | |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization | 11 | 13 | 12 | |
Capital Expenditures | [1] | 40 | 30 | 38 |
Total Assets | $ 833 | $ 763 | $ 769 | |
[1] | Reflects cash capital expenditures for all years presented. |
Segment Information (Sales an61
Segment Information (Sales and Long-Lived Asset Information by Geographic Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 30, 2016 | Oct. 31, 2015 | [1] | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | [1] | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||||
Sales | $ 2,007 | $ 1,794 | $ 1,695 | $ 1,916 | $ 1,911 | $ 1,731 | $ 1,641 | $ 1,868 | $ 7,412 | $ 7,151 | $ 6,505 | ||
Long-lived assets | 661 | 620 | 661 | 620 | 590 | ||||||||
United States [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Sales | 5,305 | 4,976 | 4,567 | ||||||||||
Long-lived assets | 486 | 446 | 486 | 446 | 394 | ||||||||
International [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Sales | 2,107 | 2,175 | 1,938 | ||||||||||
Long-lived assets | $ 175 | $ 174 | $ 175 | $ 174 | $ 196 | ||||||||
[1] | During the third quarter of 2015, the Company recorded a pre-tax charge of $100 million, see Note 23, Legal Proceedings for further information |
Litigation, Impairment and Ot62
Litigation, Impairment and Other Charges (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016USD ($)store | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | |
Impairment Of Assets [Line Items] | |||
Impairment of assets | $ 4 | ||
CCS store closure costs | $ 2 | ||
Other intangible assets impairments | 1 | $ 4 | |
CCS Ecommerce Business [Member] | |||
Impairment Of Assets [Line Items] | |||
Total CCS Impairment and Other Charges | 2 | $ 2 | |
Store Fixtures And Leasehold Improvements [Member] | |||
Impairment Of Assets [Line Items] | |||
Impairment of assets | $ 4 | ||
Number of stores with non-cash impairment charge | store | 61 | ||
Trade names [Member] | |||
Impairment Of Assets [Line Items] | |||
Other intangible assets impairments | $ 1 | 2 | |
Trade names [Member] | CCS Ecommerce Business [Member] | |||
Impairment Of Assets [Line Items] | |||
Other intangible assets impairments | $ 2 |
Litigation, Impairment and Ot63
Litigation, Impairment and Other Charges (Schedule of Impairment and Other Charges) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2015 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Litigation, Impairment and Other Charges [Abstract] | ||||
Pension litigation charge | $ 100 | $ 100 | ||
Impairment of long-lived assets | 4 | |||
Other intangible assets impairments | 1 | $ 4 | ||
CCS store closure costs | $ 2 | |||
Total litigation, impairment and other charges | $ 105 | $ 4 | $ 2 |
Other Income (Narrative) (Detai
Other Income (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Other Income Non operating [Line Items] | |||
Other income | $ 4 | $ 9 | $ 4 |
Insurance recovery related to a business interruption claim | 2 | ||
Gain on a sale of property | 4 | ||
Royalty income | $ 2 | 2 | 2 |
Realized gain associated with foreign currency option contract | 2 | ||
Lease termination gains related to the sales of leasehold interests | (2) | ||
Leasehold Improvements [Member] | |||
Other Income Non operating [Line Items] | |||
Lease termination gains related to the sales of leasehold interests | $ 1 | $ 2 |
Merchandise Inventories (Schedu
Merchandise Inventories (Schedule of Merchandise Inventories) (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Merchandise Inventories [Abstract] | ||
LIFO inventories | $ 847 | $ 821 |
FIFO inventories | 438 | 429 |
Total merchandise inventories | $ 1,285 | $ 1,250 |
Other Current Assets (Schedule
Other Current Assets (Schedule of Other Current Assets) (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Other Current Assets [Abstract] | ||
Net receivables | $ 94 | $ 78 |
Prepaid rent | 81 | 77 |
Prepaid income taxes | 66 | 34 |
Prepaid expenses and other current assets | 33 | 32 |
Deferred taxes and costs | 22 | 17 |
Fair value of derivative contracts | 3 | |
Income tax receivable | 1 | 1 |
Other current assets | $ 300 | $ 239 |
Property and Equipment, Net (Sc
Property and Equipment, Net (Schedule of Property and Equipment) (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,009 | $ 957 | |
Less: accumulated depreciation | (640) | (606) | |
Property plant and equipment excluding leasehold and building improvements | 369 | 351 | |
Property and equipment, net | 661 | 620 | $ 590 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 4 | 4 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 43 | 44 | |
Furniture, Fixtures, Equipment and Software Development Costs [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 954 | 900 | |
Assets under capital leases | 8 | 9 | |
Leasehold and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 804 | 779 | |
Less: accumulated depreciation | (512) | (510) | |
Property and equipment, net | $ 292 | $ 269 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Athletic Stores [Member] | ||
Goodwill accumulated impairment charges | $ 167 | $ 167 |
Goodwill (Schedule of Goodwill)
Goodwill (Schedule of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Goodwill [Line Items] | ||
Goodwill Beginning Balance | $ 157 | $ 163 |
Foreign currency translation adjustment | (1) | (6) |
Goodwill Ending Balance | 156 | 157 |
Athletic Stores [Member] | ||
Goodwill [Line Items] | ||
Goodwill Beginning Balance | 17 | 21 |
Foreign currency translation adjustment | (4) | |
Goodwill Ending Balance | 17 | 17 |
Direct to Customer [Member] | ||
Goodwill [Line Items] | ||
Goodwill Beginning Balance | 140 | 142 |
Foreign currency translation adjustment | (1) | (2) |
Goodwill Ending Balance | $ 139 | $ 140 |
Other Intangible Assets, Net (N
Other Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Goodwill and Other Intangible Assets, Net [Abstract] | |||
Amortization expense | $ 4 | $ 6 | $ 11 |
Changes in balance of amortizing intangible assets | 2 | ||
Additions of intangible assets of new leases | 3 | ||
Finite-lived intangible assets, translation adjustments | $ 1 |
Other Intangible Assets, Net (S
Other Intangible Assets, Net (Schedule of Other Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | ||
Intangible Assets by Major Class [Line Items] | |||
Amortized intangible assets, Gross value | [1] | $ 146 | $ 156 |
Amortized intangible assets, Accum. amort. | [1] | (124) | (132) |
Amortized intangible assets, Net value | [1] | $ 22 | 24 |
Amortized intangible assets, Wtd. Avg. Life in Years | [1],[2] | 13 years 9 months 18 days | |
Indefinite life intangible assets, Net Value | [1] | $ 23 | 25 |
Other intangible assets, net | 45 | 49 | |
Other intangible assets impairments | 1 | 4 | |
Lease Acquisition Costs [Member] | |||
Intangible Assets by Major Class [Line Items] | |||
Amortized intangible assets, Gross value | [1] | 119 | 128 |
Amortized intangible assets, Accum. amort. | [1] | (107) | (116) |
Amortized intangible assets, Net value | [1] | $ 12 | 12 |
Amortized intangible assets, Wtd. Avg. Life in Years | [1],[2] | 10 years | |
Trademarks and Trade Names [Member] | |||
Intangible Assets by Major Class [Line Items] | |||
Amortized intangible assets, Gross value | [1] | $ 20 | 21 |
Amortized intangible assets, Accum. amort. | [1] | (12) | (12) |
Amortized intangible assets, Net value | [1] | $ 8 | 9 |
Amortized intangible assets, Wtd. Avg. Life in Years | [1],[2] | 20 years | |
Favorable Leases {Member] | |||
Intangible Assets by Major Class [Line Items] | |||
Amortized intangible assets, Gross value | [1] | $ 7 | 7 |
Amortized intangible assets, Accum. amort. | [1] | (5) | (4) |
Amortized intangible assets, Net value | [1] | $ 2 | 3 |
Amortized intangible assets, Wtd. Avg. Life in Years | [1],[2] | 7 years 9 months 18 days | |
Runners Point Group [Member] | |||
Intangible Assets by Major Class [Line Items] | |||
Indefinite life intangible assets, Net Value | [1],[3] | $ 23 | 25 |
Trademarks and Trade Names [Member] | |||
Intangible Assets by Major Class [Line Items] | |||
Other intangible assets impairments | $ 1 | $ 1 | |
[1] | The movements in the ending balances also reflect the effect of foreign currency fluctuations due primarily to the movements of the euro in relation to the U.S. dollar | ||
[2] | The weighted-average useful life is as of January 30, 2016 and excludes those assets that are fully amortized. | ||
[3] | Includes non-cash impairment charges of $1 million recorded in both 2015 and 2014. These impairment charges are described more fully in Note 4, Litigation, Impairment and Other Charges |
Other Intangible Assets, Net (E
Other Intangible Assets, Net (Estimated Future Amortization Expense for Finite Lived Intangibles) (Details) $ in Millions | Jan. 30, 2016USD ($) |
Goodwill and Other Intangible Assets, Net [Abstract] | |
2,016 | $ 4 |
2,017 | 3 |
2,018 | 3 |
2,019 | 3 |
2,020 | $ 3 |
Other Assets (Schedule of Other
Other Assets (Schedule of Other Assets) (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 | |
Other Assets [Abstract] | |||
Restricted cash | [1] | $ 22 | $ 22 |
Pension asset | 8 | 13 | |
Auction rate security | 6 | 6 | |
Deferred tax costs | 12 | 5 | |
Funds deposited in insurance trust | [2] | 4 | 4 |
Other | 21 | 24 | |
Other assets | $ 73 | $ 74 | |
[1] | Restricted cash is comprised of amounts held in escrow in connection with various leasing arrangements in Europe | ||
[2] | The Company is required by its insurers to collateralize part of the self-insured workers' compensation and liability claims. The Company has chosen to satisfy these collateral requirements by depositing funds in insurance trusts |
Accrued and Other Liabilities74
Accrued and Other Liabilities (Schedule of Accrued and Other Liabilities) (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 | |
Accrued and Other Liabilities [Abstract] | |||
Current deferred tax liabilities | $ 62 | $ 48 | |
Taxes other than income taxes | 56 | 56 | |
Other payroll and payroll related costs, excluding taxes | 54 | 54 | |
Customer deposits | [1] | 46 | 44 |
Incentive bonuses | 46 | 51 | |
Property and equipment | [2] | 27 | 49 |
Income taxes payable | 39 | 10 | |
Other | 90 | 81 | |
Accrued and other liabilities | $ 420 | $ 393 | |
[1] | Customer deposits include unredeemed gift cards and certificates, merchandise credits, and deferred revenue related to undelivered merchandise, including layaway sales. | ||
[2] | Accruals for property and equipment are properly excluded from the statements of cash flows for all years presented. |
Revolving Credit Facility (Narr
Revolving Credit Facility (Narrative) (Details) - USD ($) $ in Millions | Jan. 27, 2012 | Jan. 30, 2016 | Jan. 31, 2015 |
Line of Credit Facility [Line Items] | |||
Credit facility, covenant description | The Company is not required to comply with any financial covenants as long as there are no outstanding borrowings. With regard to the payment of dividends and share repurchases, there are no restrictions if the Company is not borrowing and the payments are funded through cash on hand. If the Company is borrowing, Availability as of the end of each fiscal month during the subsequent projected six fiscal months following the payment must be at least 20 percent of the lesser of the Aggregate Commitments and the Borrowing Base (all terms as defined in the 2011 Restated Credit Agreement). | ||
Interest expense, net | $ 1 | $ 1 | |
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit agreement start date | Jan. 27, 2012 | ||
Revolving credit facility | $ 200 | ||
Revolving credit facility maturity date | Jan. 27, 2017 | ||
Credit facility, availability percentage as the lesser of Aggregate Commitments and Borrowing Base | 20.00% | ||
Deferred financing fees, unamortized balance | $ 1 | ||
Quarterly facility fees on unused portion of credit facility | 0.25% | 0.25% | |
Short-term borrowings | $ 0 | $ 0 | |
Revolving Credit Facility [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Incremental facility available for credit facility | $ 200 | ||
Revolving credit facility, interest rate margin above LIBOR | 1.50% | ||
Revolving Credit Facility [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Revolving credit facility, interest rate margin above LIBOR | 1.25% |
Long-Term Debt and Obligation76
Long-Term Debt and Obligations Under Capital Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Long-Term Debt and Obligations Under Capital Leases [Abstract] | ||
Interest expense related to long-term debt | $ 9 | $ 9 |
Long-Term Debt and Obligation77
Long-Term Debt and Obligations Under Capital Leases (Schedule of Long-Term Debt) (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 | |
Long-Term Debt and Obligations Under Capital Leases [Abstract] | |||
8.5% debentures payable 2022 | $ 118 | $ 118 | |
Unamortized gain related to interest rate swaps | [1] | 11 | 12 |
Obligations under capital leases | 1 | 4 | |
Debt and capital lease obligations, total | 130 | 134 | |
Less: current portion of obligations under capital leases | 1 | 2 | |
Long-term debt and noncurrent capital lease obligations | $ 129 | $ 132 | |
[1] | In 2009, the Company terminated an interest rate swap at a gain. This gain is being amortized as part of interest expense over the remaining term of the debt using the effective-yield method |
Long-Term Debt and Obligation78
Long-Term Debt and Obligations Under Capital Leases (Maturities of Long-term Debt) (Details) $ in Millions | Jan. 30, 2016USD ($) |
Maturities Of Long Term Debt And Capital Leases Obligations [Line Items] | |
2,016 | $ 1 |
2017 - 2020 | |
Thereafter | $ 118 |
Long-term Debt and Capital Lease Obligations, Total | $ 119 |
Less: Imputed interest | |
Current portion | $ 1 |
Long Term Debt And Capital Lease Obligations Excluding Current Portion | 118 |
Capital Lease Obligations [Member] | |
Maturities Of Long Term Debt And Capital Leases Obligations [Line Items] | |
2,016 | $ 1 |
2017 - 2020 | |
Thereafter | |
Long-term Debt and Capital Lease Obligations, Total | $ 1 |
Less: Imputed interest | |
Current portion | $ 1 |
Long Term Debt And Capital Lease Obligations Excluding Current Portion | |
Long-term Debt [Member] | |
Maturities Of Long Term Debt And Capital Leases Obligations [Line Items] | |
2,016 | |
2017 - 2020 | |
Thereafter | $ 118 |
Long-term Debt and Capital Lease Obligations, Total | $ 118 |
Less: Imputed interest | |
Current portion | |
Long Term Debt And Capital Lease Obligations Excluding Current Portion | $ 118 |
Other Liabilities (Schedule of
Other Liabilities (Schedule of Other Liabilities) (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Other Liabilities [Abstract] | ||
Straight-line rent liability | $ 155 | $ 124 |
Pension litigation liability | 100 | |
Pension benefits | 69 | $ 46 |
Income taxes | 22 | 24 |
Postretirement benefits | 13 | 18 |
Deferred taxes | 13 | 14 |
Workers' compensation and general liability reserves | 8 | 9 |
Other | 13 | 18 |
Other liabilities | $ 393 | $ 253 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Schedule of Operating Leases [Line Items] | |||
Certain executory costs related to leases | $ 137 | $ 132 | $ 128 |
Operating Leases, Rent Expense | 640 | 635 | 600 |
Non-store expenses [Member] | |||
Schedule of Operating Leases [Line Items] | |||
Operating Leases, Rent Expense | $ 18 | $ 17 | $ 16 |
Minimum [Member] | |||
Schedule of Operating Leases [Line Items] | |||
Operating lease period | 5 years | ||
Maximum [Member] | |||
Schedule of Operating Leases [Line Items] | |||
Operating lease period | 10 years |
Leases (Schedule of Leases) (De
Leases (Schedule of Leases) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Leases [Abstract] | |||
Minimum rent | $ 618 | $ 615 | $ 580 |
Contingent rent based on sales | 27 | 25 | 22 |
Sublease income | (5) | (5) | (2) |
Operating Leases, Rent Expense | $ 640 | $ 635 | $ 600 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments Under Non-Cancelable Operating Leases Net of Future Non-Cancelable Operating Sublease Payments) (Details) $ in Millions | Jan. 30, 2016USD ($) |
Leases [Abstract] | |
2,016 | $ 574 |
2,017 | 542 |
2,018 | 490 |
2,019 | 445 |
2,020 | 406 |
Thereafter | 1,648 |
Total operating lease commitments | $ 4,105 |
Accumulated Other Comprehensi83
Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 |
Accumulated Other Comprehensive Loss [Abstract] | |||
Foreign currency translation adjustments | $ (119) | $ (75) | $ 57 |
Cash flow hedges | 2 | (3) | (2) |
Unrecognized pension cost and postretirement benefit | (248) | (240) | (240) |
Unrealized loss on available-for-sale security | (1) | (1) | (1) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Total | $ (366) | $ (319) | $ (186) |
Accumulated Other Comprehensi84
Accumulated Other Comprehensive Loss (Changes in Accumulated Other Comprehensive Loss) (Details) $ in Millions | 12 Months Ended |
Jan. 30, 2016USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | $ (319) |
OCI before reclassification | (55) |
Reclassified from AOCI | 8 |
Other comprehensive income/(loss) | (47) |
Ending Balance | (366) |
Accumulated Translation Adjustment [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (75) |
OCI before reclassification | $ (44) |
Reclassified from AOCI | |
Other comprehensive income/(loss) | $ (44) |
Ending Balance | (119) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (3) |
OCI before reclassification | $ 5 |
Reclassified from AOCI | |
Other comprehensive income/(loss) | $ 5 |
Ending Balance | 2 |
Accumulated Defined Benefit Plans Adjustment [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (240) |
OCI before reclassification | (16) |
Reclassified from AOCI | 8 |
Other comprehensive income/(loss) | (8) |
Ending Balance | (248) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | $ (1) |
OCI before reclassification | |
Reclassified from AOCI | |
Other comprehensive income/(loss) | |
Ending Balance | $ (1) |
Accumulated Other Comprehensi85
Accumulated Other Comprehensive Loss (Reclassifications from Accumulated Other Comprehensive Loss) (Details) $ in Millions | 12 Months Ended |
Jan. 30, 2016USD ($) | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |
Net periodic benefit cost | $ 13 |
Income tax benefit | 5 |
Net of tax | 8 |
Pension Benefits [Member] | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |
Net periodic benefit cost | 14 |
Postretirement Benefits [Member] | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |
Net periodic benefit cost | $ (1) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Income Taxes [Line Items] | ||||
Reinvestment of undistributed earnings of international subsidiaries | $ 1,087 | $ 999 | ||
Valuation allowance | 5 | 6 | ||
State operating loss carryforwards, potential tax benefit | 2 | |||
Capital loss with potential benefit from a note receivable | $ 3 | |||
Capital loss carryforward period | 5 years | |||
Gross unrecognized tax benefits | $ 38 | 40 | $ 48 | $ 54 |
Net unrecognized tax benefits that would impact effective tax rate | 37 | 39 | ||
Unrecognized tax benefits interest expense (income), net | (1) | |||
Unrecognized tax benefits accrued interest and penalties | 2 | $ 2 | $ 2 | |
Settlements could increase earnings in an amount ranging, minimum | 0 | |||
Settlements could increase earnings in an amount ranging, maximum | 5 | |||
Impairement Northern Group Note 2008 [Member] | ||||
Income Taxes [Line Items] | ||||
Valuation allowance | $ 3 | |||
Minimum [Member] | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards state, expiration date | 2,021 | |||
Maximum [Member] | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards state, expiration date | 2,035 | |||
International [Member] | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards Foreign | $ 2 | |||
International [Member] | Minimum [Member] | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards state, expiration date | 2,016 | |||
International [Member] | Maximum [Member] | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards state, expiration date | 2,034 | |||
United States [Member] | ||||
Income Taxes [Line Items] | ||||
Tax credit carryforwards | $ 1 | |||
Tax credit carryforwards, expiration date | 2,024 | |||
Foreign Tax Authority [Member] | ||||
Income Taxes [Line Items] | ||||
Valuation allowance | $ 2 |
Income Taxes (Domestic and Inte
Income Taxes (Domestic and International Components of Pre-Tax Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Income Taxes [Abstract] | |||
Domestic | $ 668 | $ 654 | $ 558 |
International | 169 | 155 | 105 |
Total pre-tax income | $ 837 | $ 809 | $ 663 |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Current: | |||
Federal | $ 212 | $ 195 | $ 164 |
State and local | 37 | 34 | 26 |
International | 53 | 40 | 25 |
Total current tax provision | 302 | 269 | 215 |
Deferred: | |||
Federal | (8) | 16 | 13 |
State and local | (1) | 3 | 5 |
International | 3 | 1 | 1 |
Total deferred tax provision | (6) | 20 | 19 |
Total income tax provision | $ 296 | $ 289 | $ 234 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Significant Differences Between Federal Statutory Income Tax Rate and Effective Income Tax Rate on Pre-Tax Income) (Details) | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Income Taxes [Abstract] | |||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
State and local income taxes, net of federal tax benefit | 2.80% | 3.20% | 3.50% |
International income taxed at varying rates | (2.10%) | (1.90%) | (1.60%) |
Foreign tax credits | (2.80%) | (2.50%) | (2.50%) |
Domestic/foreign tax settlements | (0.10%) | (0.60%) | (1.10%) |
Federal tax credits | (0.20%) | (0.20%) | (0.20%) |
Other, net | 2.80% | 2.70% | 2.20% |
Effective income tax rate | 35.40% | 35.70% | 35.30% |
Income Taxes (Significant Porti
Income Taxes (Significant Portions of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Deferred tax assets: | ||
Tax loss/credit carryforwards and capital loss | $ 8 | $ 9 |
Employee benefits | 97 | 65 |
Property and equipment | 121 | 137 |
Straight-line rent | 39 | 33 |
Other | 34 | 38 |
Total deferred tax assets | 299 | 282 |
Valuation allowance | (5) | (6) |
Total deferred tax assets, net | 294 | 276 |
Deferred tax liabilities: | ||
Merchandise inventories | 104 | 96 |
Goodwill and other intangible assets | 20 | 17 |
Other | 6 | 1 |
Total deferred tax liabilities | 130 | 114 |
Net deferred tax asset | 164 | 162 |
Balance Sheet caption reported in: | ||
Deferred taxes | 234 | 221 |
Other current assets | 5 | 3 |
Accrued and other current liabilities | (62) | (48) |
Other liabilities | (13) | (14) |
Net deferred tax asset | $ 164 | $ 162 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Income Taxes [Abstract] | |||
Unrecognized tax benefits at beginning of year | $ 40 | $ 48 | $ 54 |
Foreign currency translation adjustments | (2) | (6) | (4) |
Increases related to current year tax positions | 4 | 3 | 3 |
Increases related to prior period tax positions | 2 | 1 | 4 |
Decreases related to prior period tax positions | (1) | (2) | |
Settlements | (1) | (1) | (7) |
Lapse of statute of limitations | (5) | (4) | |
Unrecognized tax benefits at end of year | $ 38 | $ 40 | $ 48 |
Financial Instruments and Ris92
Financial Instruments and Risk Management (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016USD ($)contractcountry | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | |
Derivative [Line Items] | |||
Cash flow hedges | $ 2 | $ (3) | $ (2) |
Foreign exchange derivative NOT designated as cash flow hedges, gain (loss) | $ 1 | $ 1 | |
Number of countries of operation | country | 23 | ||
Amount of hedge gain (loss) included in AOCI | $ (2) | ||
Changes in the fair value of the contracts | $ 5 | ||
Supplier Concentration Risk [Member] | |||
Derivative [Line Items] | |||
Concentration risk, percentage | 90.00% | ||
Supplier Concentration Risk [Member] | Other Major Supplier [Member] | |||
Derivative [Line Items] | |||
Concentration risk, percentage | 11.00% | ||
Supplier Concentration Risk [Member] | Nike [Member] | |||
Derivative [Line Items] | |||
Concentration risk, percentage | 72.00% | ||
Diesel Fuel Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Notional value of contracts outstanding | $ 1 | ||
Derivatives Designated as Hedging Instruments [Member] | Forward Foreign Exchange Contracts [Member] | |||
Derivative [Line Items] | |||
Notional value of contracts outstanding | 72 | ||
Derivatives Designated as Non-Hedging Instruments [Member] | Forward Foreign Exchange Contracts [Member] | |||
Derivative [Line Items] | |||
Notional value of contracts outstanding | $ 13 | ||
Derivatives Designated as Non-Hedging Instruments [Member] | Foreign Currency Option Contracts [Member] | |||
Derivative [Line Items] | |||
Foreign exchange derivative NOT designated as cash flow hedges, gain (loss) | $ 1 | ||
Number of contracts outstanding | contract | 0 | ||
Derivatives Designated as Non-Hedging Instruments [Member] | Diesel Fuel Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Notional value of contracts outstanding | $ 1 | ||
Minimum [Member] | Supplier Concentration Risk [Member] | Nike [Member] | |||
Derivative [Line Items] | |||
Concentration risk, percentage | 55.00% | ||
Maximum [Member] | Supplier Concentration Risk [Member] | Nike [Member] | |||
Derivative [Line Items] | |||
Concentration risk, percentage | 82.00% | ||
Maximum [Member] | Derivatives Designated as Non-Hedging Instruments [Member] | Forward Foreign Exchange Contracts [Member] | |||
Derivative [Line Items] | |||
Derivative contracts maturity date | 2017-01 | ||
European [Member] | Corporate [Member] | |||
Derivative [Line Items] | |||
Number of countries of operation | country | 19 | ||
Net assets | $ 904 | ||
Number of contries that uses the Euro as the functional currency | country | 11 |
Financial Instruments and Ris93
Financial Instruments and Risk Management (Fair Value Derivative Contracts on Gross Basis by Type of Contract) (Details) - Forward Foreign Exchange Contracts [Member] - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Derivatives Designated as Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative hedging assets | $ 3 | |
Fair value of derivative hedging liability | $ 4 | |
Derivatives Designated as Non-Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative non-hedging liability | $ 1 |
Financial Instruments and Ris94
Financial Instruments and Risk Management (Notional Amounts for All Outstanding Derivatives and Weighted-Average Exchange Rates of Foreign Exchange Forward Contracts) (Details) $ in Millions | Jan. 30, 2016USD ($) |
Diesel Fuel Forward Contracts [Member] | |
Derivative [Line Items] | |
Notional value of contracts outstanding | $ 1 |
Inventories [Member] | Buy Euro Sell British Pound Sterling [Member] | |
Derivative [Line Items] | |
Notional value of contracts outstanding | $ 72 |
Weighted-Average Exchange Rate | 0.7359 |
Intercompany [Member] | Buy Euro Sell British Pound Sterling [Member] | |
Derivative [Line Items] | |
Notional value of contracts outstanding | $ 11 |
Weighted-Average Exchange Rate | 0.7298 |
Intercompany [Member] | Buy US Dollar Sell Canadain Dollar [Member] | |
Derivative [Line Items] | |
Notional value of contracts outstanding | $ 2 |
Weighted-Average Exchange Rate | 1.4080 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - Level 2 [Member] - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets measured at fair value on recurring basis | $ 9 | $ 6 |
Liabilities measured at fair value on recurring basis | 5 | |
Available-for-sale Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets measured at fair value on recurring basis | 6 | 6 |
Forward Foreign Exchange Contracts [Member] | Derivative Financial Instruments, Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities measured at fair value on recurring basis | $ 5 | |
Forward Foreign Exchange Contracts [Member] | Derivative Financial Instruments, Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets measured at fair value on recurring basis | $ 3 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Value and Estimated Fair Value of Long-Term Debt) (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Fair Value Measurements [Abstract] | ||
Long-term debt, Carrying value | $ 130 | $ 134 |
Long-term debt, Fair value | $ 156 | $ 163 |
Retirement Plans and Other Be97
Retirement Plans and Other Benefits (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Feb. 29, 2016 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 544,000,000 | $ 613,000,000 | ||
Accumulated projected benefit obligation | $ 617,000,000 | 662,000,000 | ||
Future increases in medical plan costs to be incurred by retirees | 100.00% | |||
U.S. Qualified Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 544,000,000 | 613,000,000 | ||
Employer's contribution | 4,000,000 | |||
Market-related value of plan assets | $ 604,000,000 | 557,000,000 | ||
U.S. Qualified Pension Plan [Member] | Subsequent Event [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer's contribution | $ 25,000,000 | |||
U.S. Qualified Pension Plan [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target composition of plan assets | 36.50% | |||
U.S. Qualified Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target composition of plan assets | 60.00% | |||
U.S. Qualified Pension Plan [Member] | Real Estate Investment Trust [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target composition of plan assets | 3.50% | |||
SERP Medical Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated projected benefit obligation | $ 11,000,000 | |||
Canadian Qualified Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 58,000,000 | 73,000,000 | ||
Canadian Qualified Pension Plan [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target composition of plan assets | 5.00% | |||
Canadian Qualified Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target composition of plan assets | 95.00% | |||
Savings Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, employer matching contribution, percent of match | 25.00% | |||
Employer's matching vesting period | 5 years | |||
Employer's matching contribution | $ 3,000,000 | 3,000,000 | $ 3,000,000 | |
Eligible age to qualified savings plans | 21 years | |||
Eligible service year to qualified savings plans | 1 year | |||
Minimum eligible service hours to qualified savings plans | 1000 hours | |||
Defined Contribution Maximum Percentage of Compensation Matched By Company | 4.00% | |||
Savings Plan [Member] | United States [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | $ 18,000 | |||
Savings Plan [Member] | PUERTO RICO [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | 15,000 | |||
Non Qualified Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension benefits paid related to its non-qualified pension plans | 4,000,000 | |||
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 602,000,000 | 686,000,000 | $ 650,000,000 | |
Pension benefits paid related to its non-qualified pension plans | 51,000,000 | 53,000,000 | ||
Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension benefits paid related to its non-qualified pension plans | $ 2,000,000 | $ 3,000,000 | ||
Maximum [Member] | Savings Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employee contribution to qualified savings plans, percentage | 40.00% |
Retirement Plans and Other Be98
Retirement Plans and Other Benefits (Changes in Benefit Obligations and Plan Assets, Funded Status, and Amounts Recognized in Consolidated Balance Sheets) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | ||
Change in benefit obligation | ||||
Benefit obligation at beginning of year | $ 662 | |||
Benefit obligation at end of year | 617 | $ 662 | ||
Change in plan assets | ||||
Fair value of plan assets at beginning of year | 613 | |||
Fair value of plan assets at end of year | 544 | 613 | ||
Amounts recognized on the balance sheet: | ||||
Other assets | 8 | 13 | ||
Pension Benefits [Member] | ||||
Change in benefit obligation | ||||
Benefit obligation at beginning of year | 722 | 674 | ||
Service cost | 17 | 15 | $ 14 | |
Interest cost | 24 | 28 | 25 | |
Actuarial (gain) loss | (39) | 67 | ||
Foreign currency translation adjustments | (6) | (9) | ||
Benefits paid | (51) | (53) | ||
Benefit obligation at end of year | 667 | 722 | 674 | |
Change in plan assets | ||||
Fair value of plan assets at beginning of year | 686 | 650 | ||
Actual (loss) return on plan assets | (34) | 90 | ||
Employer contributions | 8 | 9 | ||
Foreign currency translation adjustments | (7) | (10) | ||
Benefits paid | (51) | (53) | ||
Fair value of plan assets at end of year | 602 | 686 | 650 | |
Funded status | (65) | (36) | ||
Amounts recognized on the balance sheet: | ||||
Other assets | 8 | 13 | ||
Accrued and other liabilities | (4) | (3) | ||
Other liabilities | (69) | (46) | ||
Amounts recognized on the Balance Sheet | (65) | (36) | ||
Amounts recognized in accumulated other comprehensive loss, pre-tax: | ||||
Net loss (gain) | 410 | [1] | 394 | |
Prior service cost | 1 | [2] | 1 | |
Total amount recognized | 411 | 395 | ||
Postretirement Benefits [Member] | ||||
Change in benefit obligation | ||||
Benefit obligation at beginning of year | 19 | 15 | ||
Interest cost | 1 | 1 | 1 | |
Plan participants' contributions | 1 | 2 | ||
Actuarial (gain) loss | (5) | 4 | ||
Benefits paid | (2) | (3) | ||
Benefit obligation at end of year | 14 | 19 | $ 15 | |
Change in plan assets | ||||
Benefits paid | (2) | (3) | ||
Funded status | (14) | (19) | ||
Amounts recognized on the balance sheet: | ||||
Accrued and other liabilities | (1) | (1) | ||
Other liabilities | (13) | (18) | ||
Amounts recognized on the Balance Sheet | (14) | (19) | ||
Amounts recognized in accumulated other comprehensive loss, pre-tax: | ||||
Net loss (gain) | (10) | [1] | (6) | |
Total amount recognized | $ (10) | $ (6) | ||
[1] | The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost (income) during the next year are approximately $14 million and $(2) million related to the pension and postretirement plans, respectively | |||
[2] | The net prior service cost did not change during the year and is not expected to change significantly during the next year |
Retirement Plans and Other Be99
Retirement Plans and Other Benefits (Information for Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Schedule of Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Line Items] | ||
Projected benefit obligation | $ 617 | $ 662 |
Accumulated benefit obligation | 617 | 662 |
Fair value of plan assets | 544 | 613 |
U.S. Qualified Pension Plan [Member] | ||
Schedule of Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Line Items] | ||
Fair value of plan assets | 544 | 613 |
Canadian Qualified Pension Plan [Member] | ||
Schedule of Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Line Items] | ||
Fair value of plan assets | $ 58 | $ 73 |
Retirement Plans and Other B100
Retirement Plans and Other Benefits (Weighted-Average Assumptions used to Determine Benefit Obligations and Net Benefit Cost) (Details) | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Pension Benefits [Member] | |||
Schedule of Benefit Obligations Weighted Average Assumptions [Line Items] | |||
Discount rate, net periodic benefit costs | 3.40% | 4.30% | 3.80% |
Rate of compensation increase, net periodic benefit costs | 3.70% | 3.70% | 3.70% |
Expected long-term rate of return on assets, net periodic benefit costs | 6.10% | 6.30% | 6.20% |
Discount rate, benefit obligation | 4.10% | 3.40% | |
Rate of compensation increase, benefit obligation | 3.70% | 3.70% | |
Postretirement Benefits [Member] | |||
Schedule of Benefit Obligations Weighted Average Assumptions [Line Items] | |||
Discount rate, net periodic benefit costs | 3.40% | 4.20% | 3.70% |
Discount rate, benefit obligation | 4.10% | 3.40% |
Retirement Plans and Other B101
Retirement Plans and Other Benefits (Net Benefit Expense (Income)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 17 | $ 15 | $ 14 |
Interest cost | 24 | 28 | 25 |
Expected return on plan assets | (39) | (38) | (39) |
Amortization of net loss (gain) | 14 | 15 | 17 |
Net benefit expense (income) | 16 | 20 | 17 |
Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 1 | 1 | 1 |
Amortization of net loss (gain) | $ (1) | (3) | (3) |
Net benefit expense (income) | $ (2) | $ (2) |
Retirement Plans and Other B102
Retirement Plans and Other Benefits (Changes in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | ||
Pension Benefits [Member] | |||
Schedule of Pension and Other Postretirement Benefits Recognized in Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net actuarial loss (gain) at beginning of year | $ 394 | ||
Amortization of net (loss) gain | (14) | ||
Loss (gain) arising during the year | 34 | ||
Foreign currency fluctuations | (4) | ||
Net actuarial loss (gain) at end of year | [1] | 410 | |
Net prior service cost at end of year | [2] | 1 | |
Total amount recognized | 411 | $ 395 | |
Accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost (income) during the next year | 14 | ||
Postretirement Benefits [Member] | |||
Schedule of Pension and Other Postretirement Benefits Recognized in Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net actuarial loss (gain) at beginning of year | (6) | ||
Amortization of net (loss) gain | 1 | ||
Loss (gain) arising during the year | (5) | ||
Net actuarial loss (gain) at end of year | [1] | (10) | |
Total amount recognized | (10) | $ (6) | |
Accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost (income) during the next year | $ (2) | ||
[1] | The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost (income) during the next year are approximately $14 million and $(2) million related to the pension and postretirement plans, respectively | ||
[2] | The net prior service cost did not change during the year and is not expected to change significantly during the next year |
Retirement Plans and Other B103
Retirement Plans and Other Benefits (Assumed Health Care Cost Trend Rates Related to Measurement of SERP Medical Plan Obligations) (Details) | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Medical Care [Member] | Defined Benefit Obligations [Member] | |||
Health Care Cost Trend Rates Assumptions [Line Items] | |||
Initial cost trend rate | 7.00% | 7.00% | 7.00% |
Ultimate cost trend rate | 5.00% | 5.00% | 5.00% |
Year that the ultimate cost trend rate is reached | 2,021 | 2,019 | 2,018 |
Medical Care [Member] | Net Periodic Benefit Costs [Member] | |||
Health Care Cost Trend Rates Assumptions [Line Items] | |||
Initial cost trend rate | 7.00% | 7.00% | 7.50% |
Ultimate cost trend rate | 5.00% | 5.00% | 5.00% |
Year that the ultimate cost trend rate is reached | 2,019 | 2,018 | 2,018 |
Dental Care [Member] | Defined Benefit Obligations [Member] | |||
Health Care Cost Trend Rates Assumptions [Line Items] | |||
Initial cost trend rate | 5.00% | 5.00% | 5.00% |
Ultimate cost trend rate | 5.00% | 5.00% | 5.00% |
Year that the ultimate cost trend rate is reached | 2,016 | 2,015 | 2,014 |
Dental Care [Member] | Net Periodic Benefit Costs [Member] | |||
Health Care Cost Trend Rates Assumptions [Line Items] | |||
Initial cost trend rate | 5.00% | 5.00% | 5.00% |
Ultimate cost trend rate | 5.00% | 5.00% | 5.00% |
Year that the ultimate cost trend rate is reached | 2,015 | 2,014 | 2,013 |
Retirement Plans and Other B104
Retirement Plans and Other Benefits (Effect of One Percentage-Point Change in Assumed Health Care Cost Trend Rates) (Details) - Supplemental Employee Retirement Plan [Member] $ in Millions | 12 Months Ended |
Jan. 30, 2016USD ($) | |
Assumed Health Care Cost Trend Rates, Effect of One Percentage Point Change [Line Items] | |
Effect on total service and interest cost components, 1% increase | |
Effect on accumulated postretirement benefit obligation, 1% increase | $ 2 |
Effect on total service and interest cost components, 1% (decrease) | |
Effect on accumulated postretirement benefit obligation, 1% (decrease) | $ (2) |
Retirement Plans and Other B105
Retirement Plans and Other Benefits (Fair Values of Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | ||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | $ 544 | $ 613 | ||
U.S. Qualified Pension Plan [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | 544 | 613 | ||
U.S. Qualified Pension Plan [Member] | Cash and Cash Equivalents [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | 1 | 1 | ||
U.S. Qualified Pension Plan [Member] | Equity Securities [Member] | U S Large Cap [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | [1] | 93 | 102 | |
U.S. Qualified Pension Plan [Member] | Equity Securities [Member] | U S Mid Cap [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | [1] | 26 | 31 | |
U.S. Qualified Pension Plan [Member] | International Equity Securities [Member] | Equity Securities [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | [2] | 61 | 71 | |
U.S. Qualified Pension Plan [Member] | Corporate Stock [Member] | Equity Securities [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | [3] | 27 | 21 | |
U.S. Qualified Pension Plan [Member] | Long Duration Corporate and Government Bonds [Member] | Fixed-income securities [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | [4] | 217 | 254 | |
U.S. Qualified Pension Plan [Member] | Intermediate Duration Corporate and Government Bonds [Member] | Fixed-income securities [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | [5] | 99 | 110 | |
U.S. Qualified Pension Plan [Member] | Real Estate Securities [Member] | Other types of investments [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | [6] | 17 | 20 | |
U.S. Qualified Pension Plan [Member] | Insurance Contracts [Member] | Other types of investments [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | 1 | 1 | ||
U.S. Qualified Pension Plan [Member] | Other [Member] | Other types of investments [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | [7] | 2 | 2 | |
Canadian Qualified Pension Plan [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | 58 | 73 | ||
Canadian Qualified Pension Plan [Member] | Cash and Cash Equivalents [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | 2 | 3 | ||
Canadian Qualified Pension Plan [Member] | Canadian and International [Member] | Equity Securities [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | [8] | 4 | 5 | |
Canadian Qualified Pension Plan [Member] | Cash Matched Bonds [Member] | Fixed-income securities [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | [9] | 52 | 65 | |
Pension Benefits [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | 602 | $ 686 | $ 650 | |
Accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost (income) during the next year | 14 | |||
Postretirement Benefits [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost (income) during the next year | (2) | |||
Level 1 [Member] | U.S. Qualified Pension Plan [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | 27 | |||
Level 1 [Member] | U.S. Qualified Pension Plan [Member] | Corporate Stock [Member] | Equity Securities [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | [3] | 27 | ||
Level 1 [Member] | Canadian Qualified Pension Plan [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | 4 | |||
Level 1 [Member] | Canadian Qualified Pension Plan [Member] | Canadian and International [Member] | Equity Securities [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | [8] | 4 | ||
Level 2 [Member] | U.S. Qualified Pension Plan [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | 517 | |||
Level 2 [Member] | U.S. Qualified Pension Plan [Member] | Cash and Cash Equivalents [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | 1 | |||
Level 2 [Member] | U.S. Qualified Pension Plan [Member] | Equity Securities [Member] | U S Large Cap [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | [1] | 93 | ||
Level 2 [Member] | U.S. Qualified Pension Plan [Member] | Equity Securities [Member] | U S Mid Cap [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | [1] | 26 | ||
Level 2 [Member] | U.S. Qualified Pension Plan [Member] | International Equity Securities [Member] | Equity Securities [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | [2] | 61 | ||
Level 2 [Member] | U.S. Qualified Pension Plan [Member] | Long Duration Corporate and Government Bonds [Member] | Fixed-income securities [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | [4] | 217 | ||
Level 2 [Member] | U.S. Qualified Pension Plan [Member] | Intermediate Duration Corporate and Government Bonds [Member] | Fixed-income securities [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | [5] | 99 | ||
Level 2 [Member] | U.S. Qualified Pension Plan [Member] | Real Estate Securities [Member] | Other types of investments [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | [6] | 17 | ||
Level 2 [Member] | U.S. Qualified Pension Plan [Member] | Insurance Contracts [Member] | Other types of investments [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | 1 | |||
Level 2 [Member] | U.S. Qualified Pension Plan [Member] | Other [Member] | Other types of investments [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | [7] | 2 | ||
Level 2 [Member] | Canadian Qualified Pension Plan [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | 54 | |||
Level 2 [Member] | Canadian Qualified Pension Plan [Member] | Cash and Cash Equivalents [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | 2 | |||
Level 2 [Member] | Canadian Qualified Pension Plan [Member] | Cash Matched Bonds [Member] | Fixed-income securities [Member] | ||||
Schedule of Pension and Other Postretirement Plan Assets by Fair Value [Line Items] | ||||
Fair value of plan assets | [9] | $ 52 | ||
[1] | These categories consist of various managed funds that invest primarily in common stocks, as well as other equity securities and a combination of other funds. | |||
[2] | This category comprises three managed funds that invest primarily in international common stocks, as well as other equity securities and a combination of other funds. | |||
[3] | This category consists of the Company's common stock. The increase from the prior year is due to price appreciation. No additional stock was contributed during the year. | |||
[4] | This category consists of various fixed-income funds that invest primarily in long-term bonds, as well as a combination of other funds, that together are designed to exceed the performance of related long-term market indices. | |||
[5] | This category consists of two fixed-income funds that invest primarily in intermediate duration bonds, as well as a combination of other funds, that together are designed to exceed the performance of related indices. | |||
[6] | This category consists of one fund that invests in global real estate securities. | |||
[7] | This category consists primarily of cash related to net pending trade purchases and sales. | |||
[8] | This category comprises one mutual fund that invests primarily in a diverse portfolio of Canadian securities. | |||
[9] | This category consists of fixed-income securities, including strips and coupons, issued or guaranteed by the Government of Canada, provinces or municipalities of Canada including their agencies and crown corporations, as well as other governmental bonds and corporate bonds. |
Retirement Plans and Other B106
Retirement Plans and Other Benefits (Estimated Future Benefit Payments) (Details) $ in Millions | Jan. 30, 2016USD ($) |
Pension Benefits [Member] | |
Schedule of Postemployment Expected Future Benefit Payments [Line Items] | |
2,016 | $ 71 |
2,017 | 54 |
2,018 | 52 |
2,019 | 51 |
2,020 | 50 |
2021 - 2025 | 231 |
Postretirement Benefits [Member] | |
Schedule of Postemployment Expected Future Benefit Payments [Line Items] | |
2,016 | 1 |
2,017 | 1 |
2,018 | 1 |
2,019 | 1 |
2,020 | 1 |
2021 - 2025 | $ 3 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) | 12 Months Ended | ||||
Jan. 30, 2016USD ($)employeeshares | Jan. 31, 2015USD ($)employeeshares | Feb. 01, 2014USD ($)shares | Feb. 02, 2013USD ($) | May. 21, 2014shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost related to nonvested stock options, weighted-average period expected to be recognized | 1 year 4 months 24 days | ||||
Fair value of options vested | $ | $ 15,000,000 | $ 9,000,000 | $ 8,000,000 | ||
2007 Stock Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized under plan | shares | 14,000,000 | ||||
Share-based compensation, expiration period | 10 years | ||||
Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant | shares | 13,038,597 | ||||
2013 ESPP [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized under plan | shares | 3,000,000 | ||||
Share-based compensation, maximum percentage of employee salary | 10.00% | ||||
Share-based compensation, maximum value permitted to purchase, per year | $ | $ 25,000 | ||||
Number of participating employees | employee | 996 | 958 | |||
Percentage of common stock fair market value on plan | 85.00% | ||||
Total number of shares purchased | shares | 124,494 | 160,859 | |||
Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant | shares | 2,714,647 | ||||
Stock Option Plans [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost, net of estimated forfeitures | $ | $ 7,000,000 | ||||
Cash received from options exercised | $ | 64,000,000 | ||||
Tax benefit realized from options exercised | $ | $ 38,000,000 | $ 8,000,000 | 7,000,000 | ||
Awards vesting period description | Options for employees become exercisable in substantially equal annual installments over a three-year period, beginning with the first anniversary of the date of grant of the option, unless a shorter or longer duration is established at the time of the option grant. Options for nonemployee directors become exercisable one year from the date of grant. | ||||
Restricted Stock and Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost, net of estimated forfeitures | $ | $ 10,000,000 | ||||
Restricted stock outstanding | shares | 803,000 | 1,038,000 | |||
Fair value of awards | $ | $ 10,000,000 | $ 14,000,000 | $ 9,000,000 | ||
Awards vesting period description | Generally, awards fully vest after the passage of time, typically three years. However, RSU awards made in connection with the Company's long-term incentive program vest after the attainment of certain performance metrics and the passage of time. | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | shares | 588,308 | 755,936 | 1,027,542 |
Share-Based Compensation (Total
Share-Based Compensation (Total compensation expense included in SG&A and the related tax benefits recognized) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 22 | $ 24 | $ 25 |
Tax benefit recognized | 8 | 7 | 8 |
Tax deductions in excess of the cumulative compensation cost | 35 | 12 | 9 |
Stock Option Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated Share-based Compensation Expense | 11 | 13 | 12 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated Share-based Compensation Expense | $ 11 | $ 11 | $ 13 |
Share-Based Compensation (Assum
Share-Based Compensation (Assumptions used to Compute Share-Based Compensation Expense) (Details) - $ / shares | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Stock Option Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average risk free rate of interest | 1.50% | 2.10% | 1.00% |
Expected volatility | 30.00% | 39.00% | 42.00% |
Weighted-average expected award life (in years) | 6 years | 6 years 1 month 6 days | 6 years |
Dividend yield | 1.60% | 1.90% | 2.30% |
Weighted-average fair value | $ 16.07 | $ 15.30 | $ 10.98 |
2013 ESPP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average risk free rate of interest | 0.20% | 0.10% | 0.20% |
Expected volatility | 25.00% | 24.00% | 40.00% |
Weighted-average expected award life (in years) | 1 year | 1 year | 1 year |
Dividend yield | 1.60% | 2.00% | 2.30% |
Weighted-average fair value | $ 10.47 | $ 7.35 | $ 5.79 |
Share-Based Compensation (Optio
Share-Based Compensation (Options Granted Under Stock Option Plans) (Details) shares in Thousands | 12 Months Ended |
Jan. 30, 2016$ / sharesshares | |
Number of Shares | |
Options outstanding at beginning of year | shares | 5,569 |
Granted | shares | 694 |
Exercised | shares | (2,511) |
Expired or cancelled | shares | (58) |
Options outstanding at end of year | shares | 3,694 |
Options exercisable at end of year | shares | 2,495 |
Options vested and expected to vest | shares | 3,662 |
Weighted-Average Exercise Price | |
Options outstanding at beginning of year | $ / shares | $ 25.89 |
Granted | $ / shares | 62.29 |
Exercised | $ / shares | 25.50 |
Expired or cancelled | $ / shares | 49.17 |
Options outstanding at end of year | $ / shares | 32.62 |
Options exercisable at end of year | $ / shares | 22.56 |
Options vested and expected to vest | $ / shares | $ 32.40 |
Options outstanding, Weighted-average remaining contractual life | 5 years 7 months 6 days |
Otions exercisable at end of year, Weighted-average remaining contractual life | 4 years 1 month 6 days |
Options vested and expected to vest, Weighted-average remaining contractual life | 5 years 6 months |
Share-Based Compensation (To111
Share-Based Compensation (Total Intrinsic Value of Options Exercised) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Intrinsic value of stock options | |||
Exercised | $ 99 | $ 22 | $ 21 |
Share-Based Compensation (Aggre
Share-Based Compensation (Aggregate Intrinsic Value for Stock Options Outstanding and Exercisable) (Details) $ in Millions | Jan. 30, 2016USD ($) |
Share-Based Compensation [Abstract] | |
Outstanding | $ 129 |
Outstanding and exercisable | 112 |
Vested and expected to vest | $ 129 |
Share-Based Compensation (Infor
Share-Based Compensation (Information about Stock Options Outstanding and Exercisable) (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Number of Shares | 3,694 | 5,569 |
Options outstanding, Weighted-average remaining contractual life | 5 years 7 months 6 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 32.62 | $ 25.89 |
Options Exercisable, Number of Shares | 2,495 | |
Options Exercisable, Weighted-Average Exercise Price | $ 22.56 | |
$9.85 to $18.80 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Lower Limit | 9.85 | |
Range of Exercise Prices, Upper Limit | $ 18.80 | |
Options Outstanding, Number of Shares | 858 | |
Options outstanding, Weighted-average remaining contractual life | 2 years 8 months 12 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 13.32 | |
Options Exercisable, Number of Shares | 858 | |
Options Exercisable, Weighted-Average Exercise Price | $ 13.32 | |
$18.84 to $24.75 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Lower Limit | 18.84 | |
Range of Exercise Prices, Upper Limit | $ 24.75 | |
Options Outstanding, Number of Shares | 855 | |
Options outstanding, Weighted-average remaining contractual life | 3 years 3 months 18 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 19.80 | |
Options Exercisable, Number of Shares | 855 | |
Options Exercisable, Weighted-Average Exercise Price | $ 19.80 | |
$30.92 to $36.59 Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Lower Limit | 30.92 | |
Range of Exercise Prices, Upper Limit | $ 36.59 | |
Options Outstanding, Number of Shares | 784 | |
Options outstanding, Weighted-average remaining contractual life | 6 years 6 months | |
Options Outstanding, Weighted-Average Exercise Price | $ 32.84 | |
Options Exercisable, Number of Shares | 611 | |
Options Exercisable, Weighted-Average Exercise Price | $ 32.44 | |
$45.08 to $73.21 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Lower Limit | 45.08 | |
Range of Exercise Prices, Upper Limit | $ 73.21 | |
Options Outstanding, Number of Shares | 1,197 | |
Options outstanding, Weighted-average remaining contractual life | 8 years 8 months 12 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 55.48 | |
Options Exercisable, Number of Shares | 171 | |
Options Exercisable, Weighted-Average Exercise Price | $ 47.42 |
Share-Based Compensation (Chang
Share-Based Compensation (Changes in Nonvested Options) (Details) - Restricted Stock and Units [Member] $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Jan. 30, 2016USD ($)$ / sharesshares | |
Number of Shares | |
Nonvested, Beginning Balance | shares | 1,038 |
Granted | shares | 155 |
Vested | shares | (322) |
Expired or cancelled | shares | (68) |
Nonvested, Ending Balance | shares | 803 |
Aggregate value | $ | $ 36 |
Wtg. Avg. remaining contractual life (in years) | 9 months 18 days |
Weighted-Average Grant Date Fair Value per Share | |
Nonvested, Beginning Balance | $ / shares | $ 37.96 |
Granted | $ / shares | 63.73 |
Vested | $ / shares | 32.34 |
Expired or cancelled | $ / shares | 37.97 |
Nonvested, Ending Balance | $ / shares | $ 45.19 |
Legal Proceedings - Additional
Legal Proceedings - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Oct. 31, 2015 | Jan. 30, 2016 | |
Loss Contingency, Loss in Period | $ 100 | $ 100 |
Osberg V. Foot Locker, Inc [Member] | ||
Loss Contingency, Range of Possible Loss, Maximum | 200 | |
Loss Contingency, Range of Possible Loss, Minimum | 100 | |
Loss Contingency, Loss in Period | 100 | |
Loss Contingency Loss In Period After Tax | $ 61 |
Quarterly Results (Schedule of
Quarterly Results (Schedule of Quarterly Results) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | [1] | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |||||||||||
Quarterly Results [Abstract] | ||||||||||||||||||||||
Sales | $ 2,007 | $ 1,794 | [1] | $ 1,695 | $ 1,916 | $ 1,911 | $ 1,731 | $ 1,641 | $ 1,868 | $ 7,412 | $ 7,151 | $ 6,505 | ||||||||||
Gross margin | [2] | 675 | 607 | [1] | 553 | 670 | 629 | 574 | 525 | 646 | 2,505 | 2,374 | ||||||||||
Operating profit | 244 | [3],[4] | 117 | [1],[3],[4] | 186 | [3],[4] | 290 | [3],[4] | 220 | [3],[4] | 187 | [3],[4] | 144 | [3],[4] | 254 | [3],[4] | 837 | [3],[4] | 805 | [3],[4] | 664 | |
Net income | $ 158 | $ 80 | [1] | $ 119 | $ 184 | $ 146 | $ 120 | $ 92 | $ 162 | $ 541 | $ 520 | $ 429 | ||||||||||
Basic earnings per share: | $ 1.15 | $ 0.57 | [1] | $ 0.85 | $ 1.31 | $ 1.03 | $ 0.84 | $ 0.63 | $ 1.12 | $ 3.89 | $ 3.61 | $ 2.89 | ||||||||||
Diluted earnings per share: | $ 1.14 | $ 0.57 | [1] | $ 0.84 | $ 1.29 | $ 1.01 | $ 0.82 | $ 0.63 | $ 1.10 | $ 3.84 | $ 3.56 | $ 2.85 | ||||||||||
Pension litigation charge | $ 100 | $ 100 | ||||||||||||||||||||
Impairment charges | $ 5 | $ 5 | $ 4 | |||||||||||||||||||
[1] | During the third quarter of 2015, the Company recorded a pre-tax charge of $100 million, see Note 23, Legal Proceedings for further information | |||||||||||||||||||||
[2] | Gross margin represents sales less cost of sales. | |||||||||||||||||||||
[3] | During the fourth quarter of 2015 impairment charges totaling $5 million were recorded, see Note 4, Litigation, Impairment and Other Charges for further information. | |||||||||||||||||||||
[4] | Operating profit represents income before income taxes, interest expense, net, and non-operating income. |