Kohl's (KSS) 10-Q 2 Jun 22 2023 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 30, 2022	May 27, 2022
Document Information [Line Items]
Entity Registrant Name	KOHL’S CORP
Entity Central Index Key	0000885639
Current Fiscal Year End Date	--01-28
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Apr. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		128,461,480
Document Quarterly Report	true
Document Transition Report	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Incorporation, State or Country Code	WI
Entity Tax Identification Number	39-1630919
Entity File Number	1-11084
Entity Address, Address Line One	N56 W17000 Ridgewood Drive
Entity Address, City or Town	Menomonee Falls
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	53051
City Area Code	262
Local Phone Number	703-7000
Common Stock, $.01 par value [Member]
Document Information [Line Items]
Title of each class	Common Stock, $.01 par value
Trading Symbol(s)	KSS
Name of each exchange on which registered	NYSE
Preferred Stock Purchase Rights [Member]
Document Information [Line Items]
Title of each class	Preferred Stock Purchase Rights
No Trading Symbol Flag	true
Name of each exchange on which registered	NYSE

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Apr. 30, 2022	Jan. 29, 2022	May 01, 2021
Current assets:
Cash and cash equivalents	$ 646	$ 1,587	$ 1,609
Merchandise inventories	3,736	3,067	2,667
Other	381	369	919
Total current assets	4,763	5,023	5,195
Property and equipment, net	7,790	7,304	6,653
Operating leases	2,224	2,248	2,392
Other assets	476	479	449
Total assets	15,253	15,054	14,689
Current liabilities:
Accounts payable	1,679	1,683	1,378
Accrued liabilities	1,316	1,340	1,289
Current portion of:
Long-term debt	164
Finance lease and financing obligations	108	118	112
Operating leases	127	145	159
Total current liabilities	3,394	3,286	2,938
Long-term debt	1,746	1,910	1,909
Finance lease and financing obligations	2,584	2,133	1,473
Operating leases	2,474	2,479	2,620
Deferred income taxes	209	206	242
Other long-term liabilities	390	379	390
Shareholders’ equity:
Common stock	4	4	4
Paid-in capital	3,395	3,375	3,333
Treasury stock, at cost	(13,150)	(12,975)	(11,663)
Retained earnings	14,207	14,257	13,443
Total shareholders’ equity	4,456	4,661	5,117
Total liabilities and shareholders’ equity	$ 15,253	$ 15,054	$ 14,689

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Total revenue	$ 3,715	$ 3,887
Cost of merchandise sold	2,140	2,233
Operating expenses:
Selling, general, and administrative	1,293	1,170
Depreciation and amortization	200	211
Operating income	82	273
Interest expense, net	68	67
Loss on extinguishment of debt		201
Income before income taxes	14	5
(Benefit) for income taxes		(9)
Net income	$ 14	$ 14
Net income per share:
Basic	$ 0.11	$ 0.09
Diluted	$ 0.11	$ 0.09
Net Sales [Member]
Total revenue	$ 3,471	$ 3,662
Other Revenue [Member]
Total revenue	$ 244	$ 225

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions	Total	Common Stock [Member]	Paid-In Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]
Balance, beginning of period at Jan. 30, 2021		$ 4	$ 3,319	$ (11,595)	$ 13,468
Treasury stock purchases				(46)
Stock-based awards			14	(22)
Net income	$ 14				14
Dividends paid					(39)
Balance, end of period at May. 01, 2021	$ 5,117	$ 4	3,333	$ (11,663)	13,443
Shares, beginning of period at Jan. 30, 2021		377		(219)
Treasury stock purchases				(1)
Shares, end of period at May. 01, 2021	157	377		(220)
Dividends paid per common share	$ 0.25
Balance, beginning of period at Jan. 29, 2022	$ 4,661	$ 4	3,375	$ (12,975)	14,257
Treasury stock purchases				(158)
Stock-based awards			20	(18)
Net income	14				14
Dividends paid				1	(64)
Balance, end of period at Apr. 30, 2022	$ 4,456	$ 4	$ 3,395	$ (13,150)	$ 14,207
Shares, beginning of period at Jan. 29, 2022		377		(246)
Treasury stock purchases				(3)
Shares, end of period at Apr. 30, 2022	128	377		(249)
Dividends paid per common share	$ 0.50

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Operating activities
Net income	$ 14	$ 14
Adjustments to reconcile net income to net cash (Used in) provided by operating activities:
Depreciation and amortization	200	211
Share-based compensation	18	12
Deferred income taxes	2	(65)
Loss on extinguishment of debt		201
Non-cash lease expense	31	38
Other non-cash expense	3	7
Changes in operating assets and liabilities:
Merchandise inventories	(668)	(75)
Other current and long-term assets	(42)	(31)
Accounts payable	(4)	(99)
Accrued and other long-term liabilities	17	42
Operating lease liabilities	(31)	(39)
Net cash (used in) provided by operating activities	(460)	278
Investing activities
Acquisition of property and equipment	(221)	(59)
Proceeds from sale of real estate	4	2
Net cash used in investing activities	(217)	(57)
Financing activities
Proceeds from issuance of debt		500
Deferred financing costs		(5)
Treasury stock purchases	(158)	(46)
Shares withheld for taxes on vested restricted shares	(18)	(22)
Dividends paid	(63)	(39)
Reduction of long-term borrowings		(1,044)
Premium paid on redemption of debt		(192)
Finance lease and financing obligation payments	(29)	(33)
Proceeds from financing obligations	4
Proceeds from stock option exercises		1
Other		(3)
Net cash used in provided by financing activities	(264)	(883)
Net decrease in cash and cash equivalents	(941)	(662)
Cash and cash equivalents at beginning of period	1,587	2,271
Cash and cash equivalents at end of period	646	1,609
Supplemental information
Interest paid, net of capitalized interest	45	59
Income taxes paid	$ 5	$ 5

Basis of Presentation

Basis of Presentation	3 Months Ended
	Apr. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for fiscal year end Consolidated Financial Statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information, refer to the Consolidated Financial Statements and related footnotes included in our Annual Report on Form 10-K for the fiscal year ended January 29, 2022 (Commission File No. 1-11084) as filed with the Securities and Exchange Commission. Due to the seasonality of the business of Kohl’s Corporation (the “Company,” “Kohl’s,” “we,” “our,” or “us”), results for any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year. We operate as a single business unit. Recent Accounting Pronouncements We do not expect that any recently issued accounting pronouncements will have a material impact on our Consolidated Financial Statements.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Apr. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue Recognition	2. Revenue Recognition The following table summarizes net sales by line of business: Quarter Ended (Dollars in Millions) April 30, 2022 May 1, 2021 Women's $ 1,077 $ 1,117 Men's 710 687 Home 525 634 Children's 411 468 Accessories 390 368 Footwear 358 388 Net Sales $ 3,471 $ 3,662 Unredeemed gift cards and merchandise return card liabilities totaled $ 312 million as of April 30, 2022, $ 353 million as of January 29, 2022, and $ 298 million as of May 1, 2021. Net sales of $ 74 million were recognized during the current year from gift cards redeemed in 2022 and issued in prior years.

Debt

Debt	3 Months Ended
	Apr. 30, 2022
Debt Disclosure [Abstract]
Debt	3. Debt Long-term debt, which includes draws on the revolving credit facility, consists of the following unsecured debt: Outstanding Maturity (Dollars in Millions) Effective Rate Coupon Rate April 30, January 29, May 1, 2023 3.25 % 3.25 % $ 164 $ 164 $ 164 2023 4.78 % 4.75 % 111 111 111 2025 9.50 % 9.50 % 113 113 113 2025 4.25 % 4.25 % 353 353 353 2029 7.36 % 7.25 % 42 42 42 2031 3.40 % 3.38 % 500 500 500 2033 6.05 % 6.00 % 112 112 112 2037 6.89 % 6.88 % 101 101 101 2045 5.57 % 5.55 % 427 427 427 Outstanding unsecured senior debt 1,923 1,923 1,923 Unamortized debt discounts and deferred financing costs ( 13 ) ( 13 ) ( 14 ) Current portion of unsecured senior debt ( 164 ) — — Long-term unsecured senior debt $ 1,746 $ 1,910 $ 1,909 Effective interest rate 4.89 % 4.89 % 4.89 % Our unsecured senior long-term debt is classified as Level 1, financial instruments with unadjusted, quoted prices listed on active market exchanges. The estimated fair value of our unsecured senior debt was $ 1.9 billion at April 30, 2022, $ 2.0 billion at January 29, 2022, and $ 2.1 billion at May 1, 2021. Our various debt agreements contain covenants including limitations on additional indebtedness and certain financial tests. As of April 30, 2022, we were in compliance with all covenants of the various debt agreements.

Leases

Leases	3 Months Ended
	Apr. 30, 2022
Leases [Abstract]
Leases	4. Leases We lease certain property and equipment used in our operations. Some of our store leases include additional rental payments based on a percentage of sales over contractual levels or which are adjusted periodically for inflation. Our typical store lease has an initial term of 20 to 25 years and four to eight five-year renewal options. Lease assets represent our right to use an underlying asset for the lease term. Lease assets are recognized at commencement date based on the value of the lease liability and are adjusted for any lease payments made to the lessor at or before commencement date, minus any lease incentives received and any initial direct costs incurred by the lessee. Lease liabilities represent our contractual obligation to make lease payments. At the commencement date, the lease liabilities equal the present value of minimum lease payments over the lease term. As the implicit interest rate is not readily identifiable in our leases, we estimate our collateralized borrowing rate to calculate the present value of lease payments. Leases with a term of 12 months or less are excluded from the balance; we recognize lease expense for these leases on a straight-line basis over the lease term. We combine lease and non-lease components for new and modified leases. We opened an additional 48 Sephora shop-in-shops within our Kohl's stores during the first quarter of 2022, bringing the total number of Sephora shop-in-shops to 248 . We plan to open an additional 352 shop-in-shops during the remainder of 2022, as well as 250 more in 2023. Due to the investments we are making in the shop-in-shops, we reassessed our lease term when construction began as these assets will have significant economic value to us when the lease term becomes exercisable. The impact of these assessments resulted in additional lease term, additional lease assets and liabilities, and, in some cases, changes to the classification. The following tables summarize our operating and finance leases and where they are presented in our Consolidated Financial Statements: Consolidated Balance Sheets (Dollars in Millions) Classification April 30, January 29, May 1, Assets Operating leases Operating leases $ 2,224 $ 2,248 $ 2,392 Finance leases Property and equipment, net 1,883 1,442 792 Total operating and finance leases 4,107 3,690 3,184 Liabilities Current Operating leases Current portion of operating leases 127 145 159 Finance leases Current portion of finance leases and financing obligations 82 87 74 Noncurrent Operating leases Operating leases 2,474 2,479 2,620 Finance leases Finance leases and financing obligations 2,140 1,688 1,019 Total operating and finance leases $ 4,823 $ 4,399 $ 3,872 Consolidated Statement of Operations Quarter Ended (Dollars in Millions) Classification April 30, 2022 May 1, 2021 Operating leases Selling, general, and administrative $ 69 $ 77 Finance leases Amortization of leased assets Depreciation and amortization 29 20 Interest on leased assets Interest expense, net 32 25 Total operating and finance leases $ 130 $ 122 Consolidated Statement of Cash Flows Quarter Ended (Dollars in Millions) April 30, 2022 May 1, 2021 Cash paid for amounts included in the measurement of leased liabilities Operating cash flows from operating leases $ 70 $ 84 Operating cash flows from finance leases 30 25 Financing cash flows from finance leases 22 24 The following table summarizes future lease payments by fiscal year: April 30, 2022 (Dollars in millions) Operating Leases Finance Leases Total 2022 $ 195 $ 146 $ 341 2023 260 204 464 2024 235 195 430 2025 226 189 415 2026 219 188 407 After 2026 3,384 3,309 6,693 Total lease payments $ 4,519 $ 4,231 $ 8,750 Amount representing interest ( 1,918 ) ( 2,009 ) ( 3,927 ) Lease liabilities $ 2,601 $ 2,222 $ 4,823 The following table summarizes weighted-average remaining lease term and discount rate: April 30, 2022 January 29, 2022 Weighted-average remaining term (years) Operating leases 20 20 Finance leases 20 20 Weighted-average discount rate Operating leases 6 % 6 % Finance leases 6 % 7 % Other lease information is as follows: Quarter Ended (Dollars in Millions) April 30, 2022 May 1, 2021 Property and equipment acquired through exchange of: Finance lease liabilities $ 472 $ 106 Operating lease liabilities 11 30 Financing Obligations The following tables summarize our financing obligations and where they are presented in our Consolidated Financial Statements: Consolidated Balance Sheets (Dollars in millions) Classification April 30, January 29, May 1, Assets Financing obligations Property and equipment, net $ 53 $ 55 $ 62 Liabilities Current Current portion of finance leases and financing obligations 26 31 38 Noncurrent Finance leases and financing obligations 444 445 454 Total financing obligations $ 470 $ 476 $ 492 Consolidated Statement of Operations Quarter Ended (Dollars in Millions) Classification April 30, 2022 May 1, 2021 Amortization of financing obligation assets Depreciation and amortization 2 2 Interest on financing obligations Interest expense, net 12 9 Total financing obligations $ 14 $ 11 Consolidated Statement of Cash Flows Quarter Ended (Dollars in Millions) April 30, 2022 May 1, 2021 Cash paid for amounts included in the measurement of financing obligations Operating cash flows from financing obligations $ 12 $ 9 Financing cash flows from financing obligations 7 9 Proceeds from financing obligations 4 — The following table summarizes future financing obligation payments by fiscal year: April 30, 2022 (Dollars in millions) Financing Obligations 2022 $ 55 2023 73 2024 69 2025 64 2026 60 After 2026 648 Total lease payments $ 969 Non-cash gain on future sale of property 185 Amount representing interest ( 684 ) Financing obligation liability $ 470 The following table summarizes the weighted-average remaining term and discount rate for financing obligations: April 30, 2022 January 29, 2022 Weighted-average remaining term (years) 12 10 Weighted-average discount rate 11 % 9 %

Stock-Based Awards

Stock-Based Awards	3 Months Ended
	Apr. 30, 2022
Share-based Payment Arrangement [Abstract]
Stock-Based Awards	5. Stock-Based Awards The following table summarizes our stock-based awards activity for the quarter ended April 30, 2022: Stock Options Nonvested Stock Awards Performance Share Units (Shares and Units in Thousands) Shares Weighted Shares Weighted Units Weighted Balance - January 29, 2022 12 $ 48.66 2,769 $ 36.17 856 $ 42.74 Granted — — 573 60.00 215 69.58 Exercised/vested — — ( 790 ) 37.50 — — Forfeited/expired — — ( 32 ) 41.20 — — Balance - April 30, 2022 12 $ 48.66 2,520 $ 41.11 1,071 $ 48.12 In 2019, we issued 1,747,441 stock warrants. The total vested and unvested warrants as of April 30, 2022 were 1,048,465 and 698,976 , respectively.

Contingencies

Contingencies	3 Months Ended
	Apr. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Contingencies	6. Contingencies We are subject to certain legal proceedings and claims arising out of the conduct of our business. In the opinion of management, the outcome of these proceedings and litigation will not have a material adverse impact on our Consolidated Financial Statements.

Income Taxes

Income Taxes	3 Months Ended
	Apr. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	7. Income Taxes The first quarter of both 2022 and 2021 resulted in a net benefit for income taxes driven by the recognition of favorable tax items. The net benefit, when compared to a low pre-tax income, results in a negative tax rate.

Net Income Per Share

Net Income Per Share	3 Months Ended
	Apr. 30, 2022
Earnings Per Share [Abstract]
Net Income Per Share	8. Net Income Per Share Basic Net income per share is Net income divided by the average number of common shares outstanding during the period. Diluted Net income per share includes incremental shares assumed for share-based awards and stock warrants. Potentially dilutive shares include stock options, unvested restricted stock units and awards, and warrants outstanding during the period, using the treasury stock method. Potentially dilutive shares are excluded from the computations of diluted earnings per share (“EPS”) if their effect would be anti-dilutive. The information required to compute basic and diluted Net income per share is as follows: Quarter Ended (Dollar and Shares in Millions, Except per Share Data) April 30, 2022 May 1, 2021 Numerator—Net income $ 14 $ 14 Denominator—Weighted-average shares: Basic 127 154 Dilutive impact 2 2 Diluted 129 156 Net income per share: Basic $ 0.11 $ 0.09 Diluted $ 0.11 $ 0.09 The following potential shares of common stock were excluded from the diluted Net income per share calculation because their effect would have been anti-dilutive: Quarter Ended (Shares in Millions) April 30, 2022 May 1, 2021 Anti-dilutive shares 3 3

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Apr. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements We do not expect that any recently issued accounting pronouncements will have a material impact on our Consolidated Financial Statements.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Apr. 30, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Net Sales by Line of Business	The following table summarizes net sales by line of business: Quarter Ended (Dollars in Millions) April 30, 2022 May 1, 2021 Women's $ 1,077 $ 1,117 Men's 710 687 Home 525 634 Children's 411 468 Accessories 390 368 Footwear 358 388 Net Sales $ 3,471 $ 3,662

Debt (Tables)

Debt (Tables)	3 Months Ended
	Apr. 30, 2022
Debt Disclosure [Abstract]
Components of Long-term Debt	Long-term debt, which includes draws on the revolving credit facility, consists of the following unsecured debt: Outstanding Maturity (Dollars in Millions) Effective Rate Coupon Rate April 30, January 29, May 1, 2023 3.25 % 3.25 % $ 164 $ 164 $ 164 2023 4.78 % 4.75 % 111 111 111 2025 9.50 % 9.50 % 113 113 113 2025 4.25 % 4.25 % 353 353 353 2029 7.36 % 7.25 % 42 42 42 2031 3.40 % 3.38 % 500 500 500 2033 6.05 % 6.00 % 112 112 112 2037 6.89 % 6.88 % 101 101 101 2045 5.57 % 5.55 % 427 427 427 Outstanding unsecured senior debt 1,923 1,923 1,923 Unamortized debt discounts and deferred financing costs ( 13 ) ( 13 ) ( 14 ) Current portion of unsecured senior debt ( 164 ) — — Long-term unsecured senior debt $ 1,746 $ 1,910 $ 1,909 Effective interest rate 4.89 % 4.89 % 4.89 %

Leases (Tables)

Leases (Tables)	3 Months Ended
	Apr. 30, 2022
Leases [Abstract]
Summary of Operating and Finance Leases	The following tables summarize our operating and finance leases and where they are presented in our Consolidated Financial Statements: Consolidated Balance Sheets (Dollars in Millions) Classification April 30, January 29, May 1, Assets Operating leases Operating leases $ 2,224 $ 2,248 $ 2,392 Finance leases Property and equipment, net 1,883 1,442 792 Total operating and finance leases 4,107 3,690 3,184 Liabilities Current Operating leases Current portion of operating leases 127 145 159 Finance leases Current portion of finance leases and financing obligations 82 87 74 Noncurrent Operating leases Operating leases 2,474 2,479 2,620 Finance leases Finance leases and financing obligations 2,140 1,688 1,019 Total operating and finance leases $ 4,823 $ 4,399 $ 3,872 Consolidated Statement of Operations Quarter Ended (Dollars in Millions) Classification April 30, 2022 May 1, 2021 Operating leases Selling, general, and administrative $ 69 $ 77 Finance leases Amortization of leased assets Depreciation and amortization 29 20 Interest on leased assets Interest expense, net 32 25 Total operating and finance leases $ 130 $ 122 Consolidated Statement of Cash Flows Quarter Ended (Dollars in Millions) April 30, 2022 May 1, 2021 Cash paid for amounts included in the measurement of leased liabilities Operating cash flows from operating leases $ 70 $ 84 Operating cash flows from finance leases 30 25 Financing cash flows from finance leases 22 24
Summary of Future Lease Payments	The following table summarizes future lease payments by fiscal year: April 30, 2022 (Dollars in millions) Operating Leases Finance Leases Total 2022 $ 195 $ 146 $ 341 2023 260 204 464 2024 235 195 430 2025 226 189 415 2026 219 188 407 After 2026 3,384 3,309 6,693 Total lease payments $ 4,519 $ 4,231 $ 8,750 Amount representing interest ( 1,918 ) ( 2,009 ) ( 3,927 ) Lease liabilities $ 2,601 $ 2,222 $ 4,823
Summary of Weighted-Average Remaining Lease Term and Discount Rates	The following table summarizes weighted-average remaining lease term and discount rate: April 30, 2022 January 29, 2022 Weighted-average remaining term (years) Operating leases 20 20 Finance leases 20 20 Weighted-average discount rate Operating leases 6 % 6 % Finance leases 6 % 7 %
Summary of Other Lease Information	Other lease information is as follows: Quarter Ended (Dollars in Millions) April 30, 2022 May 1, 2021 Property and equipment acquired through exchange of: Finance lease liabilities $ 472 $ 106 Operating lease liabilities 11 30
Summary of Financing Obligations	The following tables summarize our financing obligations and where they are presented in our Consolidated Financial Statements: Consolidated Balance Sheets (Dollars in millions) Classification April 30, January 29, May 1, Assets Financing obligations Property and equipment, net $ 53 $ 55 $ 62 Liabilities Current Current portion of finance leases and financing obligations 26 31 38 Noncurrent Finance leases and financing obligations 444 445 454 Total financing obligations $ 470 $ 476 $ 492 Consolidated Statement of Operations Quarter Ended (Dollars in Millions) Classification April 30, 2022 May 1, 2021 Amortization of financing obligation assets Depreciation and amortization 2 2 Interest on financing obligations Interest expense, net 12 9 Total financing obligations $ 14 $ 11 Consolidated Statement of Cash Flows Quarter Ended (Dollars in Millions) April 30, 2022 May 1, 2021 Cash paid for amounts included in the measurement of financing obligations Operating cash flows from financing obligations $ 12 $ 9 Financing cash flows from financing obligations 7 9 Proceeds from financing obligations 4 —
Summary of Future Financing Obligation Payments	The following table summarizes future financing obligation payments by fiscal year: April 30, 2022 (Dollars in millions) Financing Obligations 2022 $ 55 2023 73 2024 69 2025 64 2026 60 After 2026 648 Total lease payments $ 969 Non-cash gain on future sale of property 185 Amount representing interest ( 684 ) Financing obligation liability $ 470
Summary of Weighted-Average Remaining Term and Discount Rate for Financing Obligations	The following table summarizes the weighted-average remaining term and discount rate for financing obligations: April 30, 2022 January 29, 2022 Weighted-average remaining term (years) 12 10 Weighted-average discount rate 11 % 9 %

Stock-Based Awards (Tables)

Stock-Based Awards (Tables)	3 Months Ended
	Apr. 30, 2022
Share-based Payment Arrangement [Abstract]
Summary of Stock-Based Awards Activity	The following table summarizes our stock-based awards activity for the quarter ended April 30, 2022: Stock Options Nonvested Stock Awards Performance Share Units (Shares and Units in Thousands) Shares Weighted Shares Weighted Units Weighted Balance - January 29, 2022 12 $ 48.66 2,769 $ 36.17 856 $ 42.74 Granted — — 573 60.00 215 69.58 Exercised/vested — — ( 790 ) 37.50 — — Forfeited/expired — — ( 32 ) 41.20 — — Balance - April 30, 2022 12 $ 48.66 2,520 $ 41.11 1,071 $ 48.12

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Apr. 30, 2022
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Income Per Share	The information required to compute basic and diluted Net income per share is as follows: Quarter Ended (Dollar and Shares in Millions, Except per Share Data) April 30, 2022 May 1, 2021 Numerator—Net income $ 14 $ 14 Denominator—Weighted-average shares: Basic 127 154 Dilutive impact 2 2 Diluted 129 156 Net income per share: Basic $ 0.11 $ 0.09 Diluted $ 0.11 $ 0.09
Schedule of Potential Shares of Common Stock Excluded From the Diluted Net Income Per Share	The following potential shares of common stock were excluded from the diluted Net income per share calculation because their effect would have been anti-dilutive: Quarter Ended (Shares in Millions) April 30, 2022 May 1, 2021 Anti-dilutive shares 3 3

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Net Sales by Line of Business (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Disaggregation Of Revenue [Line Items]
Total revenue	$ 3,715	$ 3,887
Net Sales [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	3,471	3,662
Net Sales [Member] | Women's [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	1,077	1,117
Net Sales [Member] | Men's [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	710	687
Net Sales [Member] | Home [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	525	634
Net Sales [Member] | Children's [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	411	468
Net Sales [Member] | Footwear [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	358	388
Net Sales [Member] | Accessories [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 390	$ 368

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2022	Jan. 29, 2022	May 01, 2021
Disaggregation Of Revenue [Line Items]
Rewards Program unredeemed gift cards and merchandise return cards liabilities	$ 312	$ 353	$ 298
Net Sales [Member]
Disaggregation Of Revenue [Line Items]
Revenue recognized	$ 74

Debt - Components of Long-term

Debt - Components of Long-term Debt (Details) - USD ($) $ in Millions	Apr. 30, 2022	Jan. 29, 2022	May 01, 2021
Debt Instrument [Line Items]
Effective interest rate	4.89%	4.89%	4.89%
Outstanding	$ 1,923	$ 1,923	$ 1,923
Unamortized debt discounts and deferred financing costs	(13)	(13)	(14)
Current portion of unsecured senior debt	(164)
Long-term unsecured senior debt	$ 1,746	1,910	1,909
Senior Notes [Member] | Senior Notes Due 2023 [Member]
Debt Instrument [Line Items]
Effective interest rate	3.25%
Debt Instrument, Interest Rate, Stated Percentage	3.25%
Outstanding	$ 164	164	164
Senior Notes [Member] | Senior Notes 4.78% Due 2023 [Member]
Debt Instrument [Line Items]
Effective interest rate	4.78%
Debt Instrument, Interest Rate, Stated Percentage	4.75%
Outstanding	$ 111	111	111
Senior Notes [Member] | Senior Notes Due 2025 [Member]
Debt Instrument [Line Items]
Effective interest rate	9.50%
Debt Instrument, Interest Rate, Stated Percentage	9.50%
Outstanding	$ 113	113	113
Senior Notes [Member] | Senior Notes 4.25% Due 2025 [Member]
Debt Instrument [Line Items]
Effective interest rate	4.25%
Debt Instrument, Interest Rate, Stated Percentage	4.25%
Outstanding	$ 353	353	353
Senior Notes [Member] | Senior Notes Due 2029 [Member]
Debt Instrument [Line Items]
Effective interest rate	7.36%
Debt Instrument, Interest Rate, Stated Percentage	7.25%
Outstanding	$ 42	42	42
Senior Notes [Member] | Senior Notes Due 2031 [Member]
Debt Instrument [Line Items]
Effective interest rate	3.40%
Debt Instrument, Interest Rate, Stated Percentage	3.38%
Outstanding	$ 500	500	500
Senior Notes [Member] | Senior Notes Due 2033 [Member]
Debt Instrument [Line Items]
Effective interest rate	6.05%
Debt Instrument, Interest Rate, Stated Percentage	6.00%
Outstanding	$ 112	112	112
Senior Notes [Member] | Senior Notes Due 2037 [Member]
Debt Instrument [Line Items]
Effective interest rate	6.89%
Debt Instrument, Interest Rate, Stated Percentage	6.88%
Outstanding	$ 101	101	101
Senior Notes [Member] | Senior Notes Due 2045 [Member]
Debt Instrument [Line Items]
Effective interest rate	5.57%
Debt Instrument, Interest Rate, Stated Percentage	5.55%
Outstanding	$ 427	$ 427	$ 427

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($) $ in Billions	Apr. 30, 2022	Jan. 29, 2022	May 01, 2021
Unsecured Senior Debt [Member]
Debt Instrument [Line Items]
Unsecured senior debt	$ 1.9	$ 2	$ 2.1

Leases - Additional Information

Leases - Additional Information (Details)	3 Months Ended
	Apr. 30, 2022Shop
Lessee, Lease, Description [Line Items]
Number of Sephora shops opened	248
Number of Sephora shops opened during the period	48
Number of Sephora shops to be opened remainder of of 2022	352
Number Of Sephora shops to be opened in 2023	250
Store [Member]
Lessee, Lease, Description [Line Items]
Lease extension term	5 years
Minimum [Member] | Store [Member]
Lessee, Lease, Description [Line Items]
Lease initial term	20 years
Lease renewal term	4 years
Maximum [Member] | Store [Member]
Lessee, Lease, Description [Line Items]
Lease initial term	25 years
Lease renewal term	8 years

Leases - Summary of Operating a

Leases - Summary of Operating and Finance Leases (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2022	May 01, 2021	Jan. 29, 2022
Assets
Operating leases	$ 2,224	$ 2,392	$ 2,248
Finance leases	$ 1,883	$ 792	$ 1,442
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property and equipment, net	Property and equipment, net	Property and equipment, net
Total operating and finance leases	$ 4,107	$ 3,184	$ 3,690
Current liabilities:
Operating leases	127	159	145
Finance leases	$ 82	$ 74	$ 87
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Finance Lease Liability And Financing Obligation Current	Finance Lease Liability And Financing Obligation Current	Finance Lease Liability And Financing Obligation Current
Noncurrent
Operating leases	$ 2,474	$ 2,620	$ 2,479
Finance leases	$ 2,140	$ 1,019	$ 1,688
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Finance Lease Liability And Financing Obligation Noncurrent	Finance Lease Liability And Financing Obligation Noncurrent	Finance Lease Liability And Financing Obligation Noncurrent
Total operating and finance leases	$ 4,823	$ 3,872	$ 4,399
Income Statement
Operating leases	69	77
Finance leases
Amortization of leased assets	29	20
Interest on leased assets	32	25
Total operating and finance leases	130	122
Cash paid for amounts included in the measurement of leased liabilities
Operating cash flows from operating leases	70	84
Operating cash flows from finance leases	30	25
Financing cash flows from finance leases	$ 22	$ 24

Leases - Summary of Future Leas

Leases - Summary of Future Lease Payments (Details) - USD ($) $ in Millions	Apr. 30, 2022	Jan. 29, 2022	May 01, 2021
Operating Leases
Operating Leases, 2022	$ 195
Operating Leases, 2023	260
Operating Leases, 2024	235
Operating Leases, 2025	226
Operating Leases, 2026	219
Operating Leases, After 2026	3,384
Total lease payments, Operating Leases	4,519
Amount representing interest, Operating Leases	(1,918)
Lease liabilities, Operating Leases	2,601
Finance Leases
Finance Leases, 2021	146
Finance Leases, 2022	204
Finance Leases, 2023	195
Finance Leases, 2024	189
Finance Leases, 2025	188
Finance Leases, After 2025	3,309
Total lease payments, Finance Leases	4,231
Amount representing interest, Finance Leases	(2,009)
Lease liabilities, Finance Leases	2,222
Total
2021	341
2022	464
2023	430
2024	415
2025	407
After 2025	6,693
Total lease payments	8,750
Amount representing interest	(3,927)
Lease liabilities	$ 4,823	$ 4,399	$ 3,872

Leases - Summary of Weighted-Av

Leases - Summary of Weighted-Average Remaining Lease Term and Discount Rates (Details)	Apr. 30, 2022	Jan. 29, 2022
Leases [Abstract]
Operating leases, Weighted-average remaining term (years)	20 years	20 years
Finance leases, Weighted-average remaining term (years)	20 years	20 years
Operating leases, Weighted-average discount rate	6.00%	6.00%
Finance leases, Weighted-average discount rate	6.00%	7.00%

Leases - Summary of Other Lease

Leases - Summary of Other Lease Information (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Property and equipment acquired through exchange of:
Finance lease liabilities	$ 472	$ 106
Operating lease liabilities	$ 11	$ 30

Leases - Summary of Financing O

Leases - Summary of Financing Obligations (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2022	May 01, 2021	Jan. 29, 2022
Assets
Financing obligations	$ 53	$ 62	$ 55
Liabilities
Current	26	38	31
Noncurrent	444	454	445
Total financing obligations	470	492	$ 476
Income Statement
Amortization of financing obligation assets	2	2
Interest on financing obligations	12	9
Total financing obligations	14	11
Cash paid for amounts included in the measurement of financing obligations
Operating cash flows from financing obligations	12	9
Financing cash flows from financing obligations	7	$ 9
Proceeds from financing obligations	$ 4

Leases - Summary of Future Fina

Leases - Summary of Future Financing Obligation Payments (Details) - USD ($) $ in Millions	Apr. 30, 2022	Jan. 29, 2022	May 01, 2021
Leases [Abstract]
2022	$ 55
2023	73
2024	69
2025	64
2026	60
After 2026	648
Total lease payments	969
Non-cash gain on future sale of property	185
Amount representing interest	(684)
Total financing obligations	$ 470	$ 476	$ 492

Leases - Summary of Weighted-_2

Leases - Summary of Weighted-Average Remaining Term and Discount Rate for Financing Obligations (Details)	3 Months Ended	12 Months Ended
	Apr. 30, 2022	Jan. 29, 2022
Leases [Abstract]
Weighted-average remaining term (years)	12 years	10 years
Weighted-average discount rate	11.00%	9.00%

Stock-Based Awards - Summary of

Stock-Based Awards - Summary of Stock-Based Awards Activity (Details) shares in Thousands	3 Months Ended
	Apr. 30, 2022$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Options, Beginning Balance | shares	12
Stock Options, Ending Balance | shares	12
Stock Options, Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 48.66
Stock Options, Weighted Average Exercise Price, Ending Balance | $ / shares	$ 48.66
Nonvested Stock Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Awards/ Share Units, Beginning Balance | shares	2,769
Stock Awards/ Share Units, Granted | shares	573
Stock Awards/ Share Units, Exercised/vested | shares	(790)
Stock Awards/ Share Units, Forfeited/expired | shares	(32)
Stock Awards/ Share Units, Ending Balance | shares	2,520
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 36.17
Stock Awards/ Share Units, Awards/Units, Weighted Average Grant Date Fair Value, Granted | $ / shares	60
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Exercised/vested | $ / shares	37.50
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Forfeited/expired | $ / shares	41.20
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 41.11
Performance Share Units [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Awards/ Share Units, Beginning Balance | shares	856
Stock Awards/ Share Units, Granted | shares	215
Stock Awards/ Share Units, Ending Balance | shares	1,071
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 42.74
Stock Awards/ Share Units, Awards/Units, Weighted Average Grant Date Fair Value, Granted | $ / shares	69.58
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 48.12

Stock-Based Awards - Additional

Stock-Based Awards - Additional Information (Details) - shares	3 Months Ended
	Apr. 30, 2022	Feb. 01, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock warrants, issued		1,747,441
Warrant [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vested warrants	1,048,465
Unvested warrants	698,976

Net Income Per Share - Computat

Net Income Per Share - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Earnings Per Share [Abstract]
Numerator---Net income	$ 14	$ 14
Denominator—Weighted-average shares: Basic	127	154
Dilutive impact	2	2
Weighted average shares, Diluted	129	156
Basic	$ 0.11	$ 0.09
Diluted	$ 0.11	$ 0.09

Net Income Per Share - Schedule

Net Income Per Share - Schedule of Potential Shares of Common Stock Excluded From the Diluted Net Income Per Share (Details) - shares shares in Millions	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Earnings Per Share [Abstract]
Anti-dilutive shares	3	3