Kohl's (KSS) 10-Q 7 Sep 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Aug. 04, 2018	Sep. 01, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	KOHLS CORP
Entity Central Index Key	885,639
Current Fiscal Year End Date	--02-02
Entity Filer Category	Large Accelerated Filer
Trading Symbol	KSS
Document Type	10-Q
Document Period End Date	Aug. 4, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		166,712,843

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Aug. 04, 2018	Feb. 03, 2018	[1]	Jul. 29, 2017	[1]
Current assets:
Cash and cash equivalents	$ 1,066	$ 1,308		$ 552
Merchandise inventories	3,572	3,542		3,853
Other	404	530		381
Total current assets	5,042	5,380		4,786
Property and equipment, net	7,635	7,773		8,068
Other assets	238	236		230
Total assets	12,915	13,389		13,084
Current liabilities:
Accounts payable	1,404	1,271		1,370
Accrued liabilities	1,174	1,213		1,125
Income taxes payable	70	99		43
Current portion of capital lease and financing obligations	122	126		133
Total current liabilities	2,770	2,709		2,671
Long-term debt	2,273	2,797		2,796
Capital lease and financing obligations	1,537	1,591		1,637
Deferred income taxes	188	211		268
Other long-term liabilities	660	662		691
Shareholders’ equity:
Common stock	4	4		4
Paid-in capital	3,163	3,078		3,026
Treasury stock, at cost	(10,835)	(10,651)		(10,596)
Accumulated other comprehensive loss	(8)	(11)		(12)
Retained earnings	13,163	12,999		12,599
Total shareholders’ equity	5,487	5,419		5,021
Total liabilities and shareholders’ equity	$ 12,915	$ 13,389		$ 13,084
[1]	Refer to Note 2 for details on the adoption of the new revenue recognition accounting standard and the impact on previously reported results.

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Aug. 04, 2018	Jul. 29, 2017	[1]	Aug. 04, 2018	Jul. 29, 2017	[1]
Income Statement [Abstract]
Net sales	$ 4,310	$ 4,147		$ 8,263	$ 7,962
Other revenue	260	248		515	498
Total revenue	4,570	4,395		8,778	8,460
Cost of merchandise sold	2,605	2,525		5,101	4,953
Operating expenses:
Selling, general and administrative	1,272	1,220		2,532	2,434
Depreciation and amortization	241	243		483	482
Operating income	452	407		662	591
Interest expense, net	65	75		135	150
Loss on extinguishment of debt				42
Income before income taxes	387	332		485	441
Provision for income taxes	95	124		117	167
Net income	$ 292	$ 208		$ 368	$ 274
Net income per share:
Basic	$ 1.77	$ 1.24		$ 2.23	$ 1.62
Diluted	$ 1.76	$ 1.24		$ 2.21	$ 1.62
[1]	Refer to Note 2 for details on the adoption of the new revenue recognition accounting standard and the impact on previously reported results.

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions		Total	Common Stock	Paid-In Capital	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Change in accounting standard | Accounting Standards Update 2014-09	[1]	$ (7)					$ (7)
Beginning Balance (Previously Reported) at Feb. 03, 2018		5,426	$ 4	$ 3,078	$ (10,651)	$ (11)	13,006
Beginning Balance (As Adjusted)		5,419	$ 4	3,078	$ (10,651)	(11)	12,999
Beginning Balance at Feb. 03, 2018	[1]	5,419
Beginning Balance (Accounting Standards Update 2014-09) at Feb. 03, 2018		5,426
Beginning Balance (in shares) (Previously Reported) at Feb. 03, 2018			373		(205)
Beginning Balance (in shares) (As Adjusted)			373		(205)
Comprehensive income		371				3	368
Stock options and awards, net of tax		64		85	$ (21)
Stock options and awards, (in shares)			1
Dividends paid ($1.22 per common share)		(202)			2		(204)
Treasury stock purchases		(165)			$ (165)
Treasury stock purchases, (in shares)					(2)
Ending Balance at Aug. 04, 2018		$ 5,487	$ 4	$ 3,163	$ (10,835)	$ (8)	$ 13,163
Ending Balance (in shares) at Aug. 04, 2018			374		(207)
[1]	Refer to Note 2 for details on the adoption of the new revenue recognition accounting standard and the impact on previously reported results.

CONSOLIDATED STATEMENT OF CHAN5

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical)	6 Months Ended
	Aug. 04, 2018$ / shares
Statement Of Stockholders Equity [Abstract]
Dividends declared and paid per share	$ 1.22

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions		6 Months Ended
		Aug. 04, 2018	Jul. 29, 2017
Operating activities
Net income		$ 368	$ 274	[1]
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		483	482	[1]
Share-based compensation		50	21	[1]
Deferred income taxes		(25)	(2)	[1]
Loss on extinguishment of debt		42
Other non-cash revenues and expenses		13	(5)	[1]
Changes in operating assets and liabilities:
Merchandise inventories		(24)	(53)	[1]
Accrued and other long-term liabilities		(88)	(176)	[1]
Accounts payable		133	(137)	[1]
Other current and long-term assets		89	36	[1]
Income taxes		6	(64)	[1]
Net cash provided by operating activities		1,047	376	[1]
Investing activities
Acquisition of property and equipment		(312)	(399)	[1]
Other		6	16	[1]
Net cash used in investing activities		(306)	(383)	[1]
Financing activities
Treasury stock purchases		(165)	(250)	[1]
Shares withheld for taxes on vested restricted shares		(21)	(12)	[1]
Dividends paid		(202)	(186)	[1]
Reduction of long-term borrowings		(528)
Premium paid on redemption of debt		(35)
Capital lease and financing obligation activity		(64)	(67)	[1]
Proceeds from stock option exercises		32
Net cash used in financing activities		(983)	(515)	[1]
Net decrease in cash and cash equivalents		(242)	(522)	[1]
Cash at beginning of period	[1]	1,308	1,074
Cash at end of period		1,066	552	[1]
Supplemental information
Interest paid, net of capitalized interest		141	146	[1]
Income taxes paid		164	233	[1]
Non-cash investing and financing activities
Property and equipment acquired through additional liabilities		$ 7	$ 37	[1]
[1]	Refer to Note 2 for details on the adoption of the new revenue recognition accounting standard and the impact on previously reported results.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Aug. 04, 2018
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 February 3, 2018 (Commission File No. 1-11084) as filed with the Securities and Exchange Commission. Due to the seasonality of our business, 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. The following table provides a brief description of issued, but not yet effective, accounting standards: Standard Description Effect on our Financial Statements Leases (ASC Topic 842) Issued February 2016 Effective Q1 2019 Among other things, the new standard requires us to recognize a right-of-use asset and a lease liability on our balance sheet for each lease. It also changes the presentation and timing of lease-related expenses. Approximately 5% of our store leases and all of our land leases are not currently recorded on our balance sheet. Recording right-of-use assets and lease liabilities for these and other non-store leases is expected to have a material impact on our balance sheet. We are also evaluating the impact that recording right-of-use assets and lease liabilities will have on our income statement and the financial statement impact that the standard will have on leases which are currently recorded on our balance sheet. In 2017, we recorded provisional amounts for certain income tax effects of the Tax Cuts & Jobs Act (the “Act"), as addressed in Staff Accounting Bulletin No. 118 (“SAB 118”). During the six months ended August 4, 2018, we made no adjustments to the previously recorded provisional amounts related to the Act. Additional work is needed to finalize the income tax effects of the Act and we do not expect subsequent adjustments to be material. Any such adjustments will be recorded as income tax expense in the period in which the adjustment is finalized.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Aug. 04, 2018
Revenue From Contract With Customer [Abstract]
Revenue Recognition	2. Revenue Recognition Effective February 4, 2018, we adopted Revenue from Contracts with Customers (ASC Topic 606) Net Sales Net sales include revenue from the sale of merchandise and shipping revenues. Net sales are recognized when merchandise is received by the customer and we have fulfilled all performance obligations. We do not have any sales that are recorded as commissions. The following table summarizes net sales by line of business for the periods ended August 4, 2018 and July 29, 2017: Three Months Ended Six Months Ended (Dollars in Millions) August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017 Women's $ 1,439 $ 1,398 $ 2,694 $ 2,633 Men's 955 890 1,745 1,625 Home 678 679 1,369 1,320 Children's 464 426 919 904 Footwear 445 415 871 815 Accessories 329 339 665 665 Net Sales $ 4,310 $ 4,147 $ 8,263 $ 7,962 We maintain various rewards programs whereby customers earn rewards based on their spending and other promotional activities. The rewards are typically in the form of dollar off discounts which can be used on future purchases. These programs create performance obligations which require us to defer a portion of the original sale until the rewards are redeemed. Sales are recorded net of returns. At the end of each reporting period, we record a reserve based on historical return rates and patterns which reverses sales that we expect to be returned in the following period. Revenue from the sale of Kohl's gift cards is recognized when the gift card is redeemed. Liabilities for performance obligations resulting from our rewards programs, return reserves, and unredeemed gift cards and merchandise return cards totaled $358 million as of August 4, 2018, $422 million as of February 3, 2018 and $343 million as of July 29, 2017. Net sales do not include sales tax as we are considered a pass-through conduit for collecting and remitting sales taxes. Other Revenue Other revenue consists primarily of revenue from our credit card operations, unused gift and merchandise return cards (breakage), and other non-merchandise revenues. Revenue from credit card operations includes our share of the finance charges and interest fees, less charge-offs of the Kohl’s credit card pursuant to the Private Label Credit Card Program Agreement. Expenses related to our credit card operations are reported in SG&A. Income from unused gift cards and merchandise return cards (breakage) is recorded in proportion and over the time period the cards are actually redeemed. The following tables summarize the impact of adoption of the new standard by financial statement line item: Three Months Ended July 29, 2017 (Dollars in Millions, Except per Share Data) As Previously Reported New Standard Adjustment Adjusted Net sales $ 4,144 $ 3 $ 4,147 Other revenue 248 248 Total revenue 251 4,395 Cost of merchandise sold 2,511 14 2,525 Gross margin 1,633 Operating expenses: Selling, general and administrative 983 237 1,220 Depreciation and amortization 243 - 243 Operating income 407 - 407 Interest expense, net 75 - 75 Income before income taxes 332 - 332 Provision for income taxes 124 - 124 Net income $ 208 $ - $ 208 Net income per share: Basic $ 1.24 $ - $ 1.24 Diluted $ 1.24 $ - $ 1.24 Six Months Ended July 29, 2017 (Dollars in Millions, Except per Share Data) As Previously Reported New Standard Adjustment Adjusted Net sales $ 7,987 $ (25 ) $ 7,962 Other revenue 498 498 Total revenue 473 8,460 Cost of merchandise sold 4,956 (3 ) 4,953 Gross margin 3,031 Operating expenses: Selling, general and administrative 1,958 476 2,434 Depreciation and amortization 482 - 482 Operating income 591 - 591 Interest expense, net 150 - 150 Income before income taxes 441 - 441 Provision for income taxes 167 - 167 Net income $ 274 $ - $ 274 Net income per share: Basic $ 1.62 $ - $ 1.62 Diluted $ 1.62 $ - $ 1.62 July 29, 2017 (Dollars in Millions) As Previously Reported New Standard Adjustment Adjusted Assets Current assets: Cash and cash equivalents $ 552 $ - $ 552 Merchandise inventories 3,853 - 3,853 Other 335 46 381 Total current assets 4,740 46 4,786 Property and equipment, net 8,068 - 8,068 Other assets 230 - 230 Total assets $ 13,038 $ 46 $ 13,084 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 1,370 $ - $ 1,370 Accrued liabilities 1,069 56 1,125 Income taxes payable 43 - 43 Current portion of capital lease and financing obligations 133 - 133 Total current liabilities 2,615 56 2,671 Long-term debt 2,796 - 2,796 Capital lease and financing obligations 1,637 - 1,637 Deferred income taxes 271 (3 ) 268 Other long-term liabilities 691 - 691 Total shareholders’ equity 5,028 (7 ) 5,021 Total liabilities and shareholders’ equity $ 13,038 $ 46 $ 13,084 February 3, 2018 (Dollars in Millions) As Previously Reported New Standard Adjustment Adjusted Assets Current assets: Cash and cash equivalents $ 1,308 $ - $ 1,308 Merchandise inventories 3,542 - 3,542 Other 481 49 530 Total current assets 5,331 49 5,380 Property and equipment, net 7,773 - 7,773 Other assets 236 - 236 Total assets $ 13,340 $ 49 $ 13,389 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 1,271 $ - $ 1,271 Accrued liabilities 1,155 58 1,213 Income taxes payable 99 - 99 Current portion of capital lease and financing obligations 126 - 126 Total current liabilities 2,651 58 2,709 Long-term debt 2,797 - 2,797 Capital lease and financing obligations 1,591 - 1,591 Deferred income taxes 213 (2 ) 211 Other long-term liabilities 662 - 662 Total shareholders’ equity 5,426 (7 ) 5,419 Total liabilities and shareholders’ equity $ 13,340 $ 49 $ 13,389 The adoption of the new standard had no impact on our basic or diluted earnings per share or our net cash provided by (used in) operating, financing, or investing activities.

Store Closure and Restructure R

Store Closure and Restructure Reserve	6 Months Ended
	Aug. 04, 2018
Restructuring And Related Activities [Abstract]
Store Closure and Restructure Reserve	3. Store Closure and Restructure Reserve The following table summarizes changes in the store closure and restructure reserve during the six months ended August 4, 2018: (Dollars in Millions) Balance - February 3, 2018 $ 87 Payments and reversals (10 ) Balance - August 4, 2018 $ 77

Debt

Debt	6 Months Ended
	Aug. 04, 2018
Debt Disclosure [Abstract]
Debt	4. Debt Long-term debt consists of the following unsecured senior debt: Outstanding Maturity (Dollars in Millions) Effective Rate Coupon Rate August 4, 2018 February 3, 2018 & July 29, 2017 2021 4.81 % 4.00 % $ 413 $ 650 2023 3.25 % 3.25 % 350 350 2023 4.78 % 4.75 % 184 300 2025 4.25 % 4.25 % 650 650 2029 7.36 % 7.25 % 42 99 2033 6.05 % 6.00 % 112 166 2037 6.89 % 6.88 % 101 150 2045 5.57 % 5.55 % 435 450 4.76 % $ 2,287 $ 2,815 Long-term debt is net of unamortized debt discounts and deferred financing costs of $14 million at August 4, 2018, $18 million at February 3, 2018, and $19 million at July 29, 2017. Our 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 long-term debt was $2.3 billion at August 4, 2018 and $2.9 billion at both February 3, 2018 and July 29, 2017. Year to date, we have reduced our outstanding debt by $528 million, including $500 million which was repurchased pursuant to a cash tender offer in the first quarter and $28 million which was repurchased on the open market during the second quarter. In conjunction with the debt reduction, we recorded a $42 million loss on extinguishment of debt which includes $35 million of premium paid to holders of the debt, $4 million related to an interest rate hedge, and $3 million of deferred financing fees and original issue discounts.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Aug. 04, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	5. Stock-Based Compensation The following table summarizes our stock-based compensation activity for the six months ended August 4, 2018: Stock Options Nonvested Stock Awards Performance Share Units (Shares and Units in Thousands) Shares Weighted Average Exercise Price Shares Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Balance - February 3, 2018 1,139 $ 50.51 2,811 $ 45.60 660 $ 44.97 Granted — — 975 63.63 179 66.30 Exercised/vested (959 ) 50.49 (859 ) 48.13 (38 ) 78.35 Forfeited/expired (2 ) 53.38 (62 ) 48.60 (5 ) 46.91 Balance - August 4, 2018 178 $ 51.36 2,865 $ 50.94 796 $ 48.17

Contingencies

Contingencies	6 Months Ended
	Aug. 04, 2018
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.

Net Income Per Share

Net Income Per Share	6 Months Ended
	Aug. 04, 2018
Net Income Per Section [Abstract]
Net Income Per Share	7. 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. The information required to compute basic and diluted net income per share is as follows: Three Months Ended (Dollar and Shares in Millions, Except per Share Data) August 4, 2018 July 29, 2017 Numerator—Net income $ 292 $ 208 Denominator—Weighted average shares: Basic 165 168 Impact of dilutive stock-based awards 1 — Diluted 166 168 Antidilutive shares — 3 Net income per share: Basic $ 1.77 $ 1.24 Diluted $ 1.76 $ 1.24

Basis of Presentation (Tables)

Basis of Presentation (Tables)	6 Months Ended
	Aug. 04, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of Issued, But Not Yet Effective, Accounting Standards	The following table provides a brief description of issued, but not yet effective, accounting standards: Standard Description Effect on our Financial Statements Leases (ASC Topic 842) Issued February 2016 Effective Q1 2019 Among other things, the new standard requires us to recognize a right-of-use asset and a lease liability on our balance sheet for each lease. It also changes the presentation and timing of lease-related expenses. Approximately 5% of our store leases and all of our land leases are not currently recorded on our balance sheet. Recording right-of-use assets and lease liabilities for these and other non-store leases is expected to have a material impact on our balance sheet. We are also evaluating the impact that recording right-of-use assets and lease liabilities will have on our income statement and the financial statement impact that the standard will have on leases which are currently recorded on our balance sheet.

Revenue Recognition (Tables)

Revenue Recognition (Tables) - Accounting Standards Update 2014-09 [Member]	6 Months Ended
	Aug. 04, 2018
Schedule of Net Sales by Line of Business	The following table summarizes net sales by line of business for the periods ended August 4, 2018 and July 29, 2017: Three Months Ended Six Months Ended (Dollars in Millions) August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017 Women's $ 1,439 $ 1,398 $ 2,694 $ 2,633 Men's 955 890 1,745 1,625 Home 678 679 1,369 1,320 Children's 464 426 919 904 Footwear 445 415 871 815 Accessories 329 339 665 665 Net Sales $ 4,310 $ 4,147 $ 8,263 $ 7,962
Schedule of Impact of Adoption of the New Standard by Income Statement Line Item	The following tables summarize the impact of adoption of the new standard by financial statement line item: Three Months Ended July 29, 2017 (Dollars in Millions, Except per Share Data) As Previously Reported New Standard Adjustment Adjusted Net sales $ 4,144 $ 3 $ 4,147 Other revenue 248 248 Total revenue 251 4,395 Cost of merchandise sold 2,511 14 2,525 Gross margin 1,633 Operating expenses: Selling, general and administrative 983 237 1,220 Depreciation and amortization 243 - 243 Operating income 407 - 407 Interest expense, net 75 - 75 Income before income taxes 332 - 332 Provision for income taxes 124 - 124 Net income $ 208 $ - $ 208 Net income per share: Basic $ 1.24 $ - $ 1.24 Diluted $ 1.24 $ - $ 1.24 Six Months Ended July 29, 2017 (Dollars in Millions, Except per Share Data) As Previously Reported New Standard Adjustment Adjusted Net sales $ 7,987 $ (25 ) $ 7,962 Other revenue 498 498 Total revenue 473 8,460 Cost of merchandise sold 4,956 (3 ) 4,953 Gross margin 3,031 Operating expenses: Selling, general and administrative 1,958 476 2,434 Depreciation and amortization 482 - 482 Operating income 591 - 591 Interest expense, net 150 - 150 Income before income taxes 441 - 441 Provision for income taxes 167 - 167 Net income $ 274 $ - $ 274 Net income per share: Basic $ 1.62 $ - $ 1.62 Diluted $ 1.62 $ - $ 1.62
Schedule of Impact of Adoption of the New Standard by Balance Sheet Line Item	July 29, 2017 (Dollars in Millions) As Previously Reported New Standard Adjustment Adjusted Assets Current assets: Cash and cash equivalents $ 552 $ - $ 552 Merchandise inventories 3,853 - 3,853 Other 335 46 381 Total current assets 4,740 46 4,786 Property and equipment, net 8,068 - 8,068 Other assets 230 - 230 Total assets $ 13,038 $ 46 $ 13,084 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 1,370 $ - $ 1,370 Accrued liabilities 1,069 56 1,125 Income taxes payable 43 - 43 Current portion of capital lease and financing obligations 133 - 133 Total current liabilities 2,615 56 2,671 Long-term debt 2,796 - 2,796 Capital lease and financing obligations 1,637 - 1,637 Deferred income taxes 271 (3 ) 268 Other long-term liabilities 691 - 691 Total shareholders’ equity 5,028 (7 ) 5,021 Total liabilities and shareholders’ equity $ 13,038 $ 46 $ 13,084 February 3, 2018 (Dollars in Millions) As Previously Reported New Standard Adjustment Adjusted Assets Current assets: Cash and cash equivalents $ 1,308 $ - $ 1,308 Merchandise inventories 3,542 - 3,542 Other 481 49 530 Total current assets 5,331 49 5,380 Property and equipment, net 7,773 - 7,773 Other assets 236 - 236 Total assets $ 13,340 $ 49 $ 13,389 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 1,271 $ - $ 1,271 Accrued liabilities 1,155 58 1,213 Income taxes payable 99 - 99 Current portion of capital lease and financing obligations 126 - 126 Total current liabilities 2,651 58 2,709 Long-term debt 2,797 - 2,797 Capital lease and financing obligations 1,591 - 1,591 Deferred income taxes 213 (2 ) 211 Other long-term liabilities 662 - 662 Total shareholders’ equity 5,426 (7 ) 5,419 Total liabilities and shareholders’ equity $ 13,340 $ 49 $ 13,389

Store Closure and Restructure16

Store Closure and Restructure Reserve (Tables)	6 Months Ended
	Aug. 04, 2018
Restructuring And Related Activities [Abstract]
Schedule of Restructuring Reserve by Type of Cost	The following table summarizes changes in the store closure and restructure reserve during the six months ended August 4, 2018: (Dollars in Millions) Balance - February 3, 2018 $ 87 Payments and reversals (10 ) Balance - August 4, 2018 $ 77

Debt (Tables)

Debt (Tables)	6 Months Ended
	Aug. 04, 2018
Debt Disclosure [Abstract]
Components of long-term debt	Long-term debt consists of the following unsecured senior debt: Outstanding Maturity (Dollars in Millions) Effective Rate Coupon Rate August 4, 2018 February 3, 2018 & July 29, 2017 2021 4.81 % 4.00 % $ 413 $ 650 2023 3.25 % 3.25 % 350 350 2023 4.78 % 4.75 % 184 300 2025 4.25 % 4.25 % 650 650 2029 7.36 % 7.25 % 42 99 2033 6.05 % 6.00 % 112 166 2037 6.89 % 6.88 % 101 150 2045 5.57 % 5.55 % 435 450 4.76 % $ 2,287 $ 2,815

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Aug. 04, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award	The following table summarizes our stock-based compensation activity for the six months ended August 4, 2018: Stock Options Nonvested Stock Awards Performance Share Units (Shares and Units in Thousands) Shares Weighted Average Exercise Price Shares Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Balance - February 3, 2018 1,139 $ 50.51 2,811 $ 45.60 660 $ 44.97 Granted — — 975 63.63 179 66.30 Exercised/vested (959 ) 50.49 (859 ) 48.13 (38 ) 78.35 Forfeited/expired (2 ) 53.38 (62 ) 48.60 (5 ) 46.91 Balance - August 4, 2018 178 $ 51.36 2,865 $ 50.94 796 $ 48.17

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Aug. 04, 2018
Net Income Per Section [Abstract]
Basic and Diluted Net Income Per Share Calculation	The information required to compute basic and diluted net income per share is as follows: Three Months Ended (Dollar and Shares in Millions, Except per Share Data) August 4, 2018 July 29, 2017 Numerator—Net income $ 292 $ 208 Denominator—Weighted average shares: Basic 165 168 Impact of dilutive stock-based awards 1 — Diluted 166 168 Antidilutive shares — 3 Net income per share: Basic $ 1.77 $ 1.24 Diluted $ 1.76 $ 1.24

Basis of Presentation - Descrip

Basis of Presentation - Description of Issued, But Not Yet Effective, Accounting Standards (Details)	6 Months Ended
	Aug. 04, 2018
Accounting Standards Update 2016-02 - Leases [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Percentage of store leases unrecorded on Balance Sheet	5.00%

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions	6 Months Ended
	Aug. 04, 2018	Feb. 03, 2018	Jul. 29, 2017
Revenue From Contract With Customer [Abstract]
Description of adoption of new accounting pronouncement	Effective February 4, 2018, we adopted Revenue from Contracts with Customers (ASC Topic 606) as required. We adopted the new standard using the full retrospective method. The standard eliminated the transaction- and industry-specific revenue recognition guidance under prior U.S. GAAP and replaced it with a principles-based approach for revenue recognition and disclosures. Under the standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services.
Sales recorded as commission	$ 0
Liabilities for performance obligations	$ 358	$ 422	$ 343

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Net Sales by Line of Business (Detail) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Aug. 04, 2018	Jul. 29, 2017		Aug. 04, 2018	Jul. 29, 2017
Disaggregation Of Revenue [Line Items]
Net sales	$ 4,310	$ 4,147	[1]	$ 8,263	$ 7,962	[1]
Women's [Member]
Disaggregation Of Revenue [Line Items]
Net sales	1,439	1,398		2,694	2,633
Men's [Member]
Disaggregation Of Revenue [Line Items]
Net sales	955	890		1,745	1,625
Home [Member]
Disaggregation Of Revenue [Line Items]
Net sales	678	679		1,369	1,320
Children's [Member]
Disaggregation Of Revenue [Line Items]
Net sales	464	426		919	904
Footwear [Member]
Disaggregation Of Revenue [Line Items]
Net sales	445	415		871	815
Accessories [Member]
Disaggregation Of Revenue [Line Items]
Net sales	$ 329	$ 339		$ 665	$ 665
[1]	Refer to Note 2 for details on the adoption of the new revenue recognition accounting standard and the impact on previously reported results.

Revenue Recognition - Schedul23

Revenue Recognition - Schedule of Impact of Adoption of the New Standard by Income Statement Line Item (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended			6 Months Ended
	Aug. 04, 2018	Jul. 29, 2017		Aug. 04, 2018	Jul. 29, 2017
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	$ 4,310	$ 4,147	[1]	$ 8,263	$ 7,962	[1]
Other revenue	260	248	[1]	515	498	[1]
Total revenue	4,570	4,395	[1]	8,778	8,460	[1]
Cost of merchandise sold	2,605	2,525	[1]	5,101	4,953	[1]
Operating expenses:
Selling, general and administrative	1,272	1,220	[1]	2,532	2,434	[1]
Depreciation and amortization	241	243	[1]	483	482	[1]
Operating income	452	407	[1]	662	591	[1]
Interest expense, net	65	75	[1]	135	150	[1]
Income before income taxes	387	332	[1]	485	441	[1]
Provision for income taxes	95	124	[1]	117	167	[1]
Net income	$ 292	$ 208	[1]	$ 368	$ 274	[1]
Net income per share:
Basic	$ 1.77	$ 1.24	[1]	$ 2.23	$ 1.62	[1]
Diluted	$ 1.76	$ 1.24	[1]	$ 2.21	$ 1.62	[1]
Accounting Standards Update 2014-09 [Member]
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Net sales		$ 4,144			$ 7,987
Cost of merchandise sold		2,511			4,956
Gross margin		1,633			3,031
Operating expenses:
Selling, general and administrative		983			1,958
Depreciation and amortization		243			482
Operating income		407			591
Interest expense, net		75			150
Income before income taxes		332			441
Provision for income taxes		124			167
Net income		$ 208			$ 274
Net income per share:
Basic		$ 1.24			$ 1.62
Diluted		$ 1.24			$ 1.62
Accounting Standards Update 2014-09 [Member] | New Standard Adjustment [Member]
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Net sales		$ 3			$ (25)
Other revenue		248			498
Total revenue		251			473
Cost of merchandise sold		14			(3)
Operating expenses:
Selling, general and administrative		237			476
Accounting Standards Update 2014-09 [Member] | Adjusted [Member]
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Net sales		4,147			7,962
Other revenue		248			498
Total revenue		4,395			8,460
Cost of merchandise sold		2,525			4,953
Operating expenses:
Selling, general and administrative		1,220			2,434
Depreciation and amortization		243			482
Operating income		407			591
Interest expense, net		75			150
Income before income taxes		332			441
Provision for income taxes		124			167
Net income		$ 208			$ 274
Net income per share:
Basic		$ 1.24			$ 1.62
Diluted		$ 1.24			$ 1.62
[1]	Refer to Note 2 for details on the adoption of the new revenue recognition accounting standard and the impact on previously reported results.

Revenue Recognition - Schedul24

Revenue Recognition - Schedule of Impact of Adoption of the New Standard by Balance Sheet Line Item (Detail) - USD ($) $ in Millions	Aug. 04, 2018	Feb. 03, 2018		Jul. 29, 2017		Jan. 28, 2017	[1]
Assets
Cash and cash equivalents	$ 1,066	$ 1,308	[1]	$ 552	[1]	$ 1,074
Merchandise inventories	3,572	3,542	[1]	3,853	[1]
Other	404	530	[1]	381	[1]
Total current assets	5,042	5,380	[1]	4,786	[1]
Property and equipment, net	7,635	7,773	[1]	8,068	[1]
Other assets	238	236	[1]	230	[1]
Total assets	12,915	13,389	[1]	13,084	[1]
Liabilities and Shareholders’ Equity
Accounts payable	1,404	1,271	[1]	1,370	[1]
Accrued liabilities	1,174	1,213	[1]	1,125	[1]
Income taxes payable	70	99	[1]	43	[1]
Current portion of capital lease and financing obligations	122	126	[1]	133	[1]
Total current liabilities	2,770	2,709	[1]	2,671	[1]
Long-term debt	2,273	2,797	[1]	2,796	[1]
Capital lease and financing obligations	1,537	1,591	[1]	1,637	[1]
Deferred income taxes	188	211	[1]	268	[1]
Other long-term liabilities	660	662	[1]	691	[1]
Total shareholders’ equity	5,487	5,419	[1]	5,021	[1]
Total liabilities and shareholders’ equity	$ 12,915	13,389	[1]	13,084	[1]
Accounting Standards Update 2014-09 [Member]
Assets
Cash and cash equivalents		1,308		552
Merchandise inventories		3,542		3,853
Other		481		335
Total current assets		5,331		4,740
Property and equipment, net		7,773		8,068
Other assets		236		230
Total assets		13,340		13,038
Liabilities and Shareholders’ Equity
Accounts payable		1,271		1,370
Accrued liabilities		1,155		1,069
Income taxes payable		99		43
Current portion of capital lease and financing obligations		126		133
Total current liabilities		2,651		2,615
Long-term debt		2,797		2,796
Capital lease and financing obligations		1,591		1,637
Deferred income taxes		213		271
Other long-term liabilities		662		691
Total shareholders’ equity		5,426		5,028
Total liabilities and shareholders’ equity		13,340		13,038
Accounting Standards Update 2014-09 [Member] | New Standard Adjustment [Member]
Assets
Other		49		46
Total current assets		49		46
Total assets		49		46
Liabilities and Shareholders’ Equity
Accrued liabilities		58		56
Total current liabilities		58		56
Deferred income taxes		(2)		(3)
Total shareholders’ equity		(7)		(7)
Total liabilities and shareholders’ equity		49		46
Accounting Standards Update 2014-09 [Member] | Adjusted [Member]
Assets
Cash and cash equivalents		1,308		552
Merchandise inventories		3,542		3,853
Other		530		381
Total current assets		5,380		4,786
Property and equipment, net		7,773		8,068
Other assets		236		230
Total assets		13,389		13,084
Liabilities and Shareholders’ Equity
Accounts payable		1,271		1,370
Accrued liabilities		1,213		1,125
Income taxes payable		99		43
Current portion of capital lease and financing obligations		126		133
Total current liabilities		2,709		2,671
Long-term debt		2,797		2,796
Capital lease and financing obligations		1,591		1,637
Deferred income taxes		211		268
Other long-term liabilities		662		691
Total shareholders’ equity		5,419		5,021
Total liabilities and shareholders’ equity		$ 13,389		$ 13,084
[1]	Refer to Note 2 for details on the adoption of the new revenue recognition accounting standard and the impact on previously reported results.

Store Closure and Restructure25

Store Closure and Restructure Reserve - Schedule of Restructuring Reserve by Type of Cost (Details) $ in Millions	6 Months Ended
	Aug. 04, 2018USD ($)
Restructuring And Related Activities [Abstract]
Restructuring Reserve	$ 87
Payments and reversals	(10)
Restructuring Reserve	$ 77

Debt - Components of Long Term

Debt - Components of Long Term Debt (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Aug. 04, 2018	May 05, 2018	Aug. 04, 2018	Feb. 03, 2018	Jul. 29, 2017
Debt Instrument [Line Items]
Unamortized debt discount	$ 14		$ 14	$ 18	$ 19
Long-term Debt, Fair Value	$ 2,300		2,300	2,900	2,900
Loss on extinguishment of debt			42
Premiums paid to holders as a result of tender offer			$ 35
Senior Notes
Debt Instrument [Line Items]
Effective Rate	4.76%		4.76%
Total senior debt	$ 2,287		$ 2,287	2,815	2,815
Cash tender offer amount	$ 28	$ 500	528
Loss on extinguishment of debt			42
Premiums paid to holders as a result of tender offer			35
Non cash write off of interest rate hedge on tendered debt			4
Non cash write off of deferred financing costs and original issue discounts on extinguished debt			$ 3
Senior Notes | Senior Notes Due 2021 [Member]
Debt Instrument [Line Items]
Effective Rate	4.81%		4.81%
Debt Instrument, Interest Rate, Stated Percentage	4.00%		4.00%
Total senior debt	$ 413		$ 413	650	650
Senior Notes | Senior Notes Due 2023 [Member]
Debt Instrument [Line Items]
Effective Rate	3.25%		3.25%
Debt Instrument, Interest Rate, Stated Percentage	3.25%		3.25%
Total senior debt	$ 350		$ 350	350	350
Senior Notes | Senior Notes 4.78% Due 2023 [Member]
Debt Instrument [Line Items]
Effective Rate	4.78%		4.78%
Debt Instrument, Interest Rate, Stated Percentage	4.75%		4.75%
Total senior debt	$ 184		$ 184	300	300
Senior Notes | Senior Notes Due 2025 [Member]
Debt Instrument [Line Items]
Effective Rate	4.25%		4.25%
Debt Instrument, Interest Rate, Stated Percentage	4.25%		4.25%
Total senior debt	$ 650		$ 650	650	650
Senior Notes | Senior Notes Due 2029 [Member]
Debt Instrument [Line Items]
Effective Rate	7.36%		7.36%
Debt Instrument, Interest Rate, Stated Percentage	7.25%		7.25%
Total senior debt	$ 42		$ 42	99	99
Senior Notes | Senior Notes Due 2033 [Member]
Debt Instrument [Line Items]
Effective Rate	6.05%		6.05%
Debt Instrument, Interest Rate, Stated Percentage	6.00%		6.00%
Total senior debt	$ 112		$ 112	166	166
Senior Notes | Senior Notes Due 2037 [Member]
Debt Instrument [Line Items]
Effective Rate	6.89%		6.89%
Debt Instrument, Interest Rate, Stated Percentage	6.88%		6.88%
Total senior debt	$ 101		$ 101	150	150
Senior Notes | Senior Notes Due 2045 [Member]
Debt Instrument [Line Items]
Effective Rate	5.57%		5.57%
Debt Instrument, Interest Rate, Stated Percentage	5.55%		5.55%
Total senior debt	$ 435		$ 435	$ 450	$ 450

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Based Compensation Grants (Details) shares in Thousands	6 Months Ended
	Aug. 04, 2018$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Balance at beginning of year, Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 50.51
Granted, Weighted Average Exercise Price (in dollars per share) | $ / shares	0
Exercised/vested, Weighted Average Exercise Price (in dollars per share) | $ / shares	50.49
Forfeited/expired, Weighted Average Exercise Price (in dollars per share) | $ / shares	53.38
Balance at end of quarter, Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 51.36
Balance at beginning of year, shares | shares	1,139
Granted, shares | shares	0
Exercised/vested, shares | shares	(959)
Forfeited/expired, shares | shares	(2)
Balance at end of quarter, shares | shares	178
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value [Roll Forward]
Balance at beginning of year, Weighted Average Grant Date Fair Value | $ / shares	$ 45.60
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares	63.63
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares	48.13
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares	48.60
Balance at end of quarter, Weighted Average Grant Date Fair Value | $ / shares	$ 50.94
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares	2,811
Granted, shares | shares	975
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | shares	(859)
Forfeited/expired performance restricted share units | shares	(62)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares	2,865
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value [Roll Forward]
Balance at beginning of year, Weighted Average Grant Date Fair Value | $ / shares	$ 44.97
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares	66.30
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares	78.35
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares	46.91
Balance at end of quarter, Weighted Average Grant Date Fair Value | $ / shares	$ 48.17
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares	660
Granted, shares | shares	179
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | shares	(38)
Forfeited/expired performance restricted share units | shares	(5)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares	796

Net Income Per Share - Basic an

Net Income Per Share - Basic and Diluted Net Income Per Share Calculation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended			6 Months Ended
	Aug. 04, 2018	Jul. 29, 2017		Aug. 04, 2018	Jul. 29, 2017	[1]
Net Income Per Section [Abstract]
Numerator—Net income	$ 292	$ 208	[1]	$ 368	$ 274
Denominator—Weighted average shares: Basic	165	168
Denominator—Weighted average shares: Impact of dilutive stock-based awards	1
Denominator—Weighted average shares: Diluted	166	168
Antidilutive shares		3
Net income per share: Basic	$ 1.77	$ 1.24	[1]	$ 2.23	$ 1.62
Net income per share: Diluted	$ 1.76	$ 1.24	[1]	$ 2.21	$ 1.62
[1]	Refer to Note 2 for details on the adoption of the new revenue recognition accounting standard and the impact on previously reported results.