Kohl's (KSS) 10-Q 5 Jun 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	May 02, 2020	May 29, 2020
Cover [Abstract]
Entity Registrant Name	KOHL’S CORP
Entity Central Index Key	0000885639
Current Fiscal Year End Date	--01-30
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	May 2, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		157,736,808
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
Title of each class	Common Stock, $.01 par value
Trading Symbol(s)	KSS
Name of each exchange on which registered	NYSE

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	May 02, 2020	Feb. 01, 2020	May 04, 2019
Current assets:
Cash and cash equivalents	$ 2,039	$ 723	$ 543
Merchandise inventories	3,557	3,537	3,680
Income tax receivable	174	15	15
Other	400	374	397
Total current assets	6,170	4,649	4,635
Property and equipment, net	7,169	7,352	7,211
Operating leases	2,373	2,391	2,453
Other assets	157	163	167
Total assets	15,869	14,555	14,466
Current liabilities:
Accounts payable	1,866	1,206	1,295
Accrued liabilities	1,070	1,233	1,184
Income taxes payable	68	48	40
Current portion of:
Finance lease and financing obligations	124	124	115
Operating leases	159	158	158
Total current liabilities	3,287	2,769	2,792
Long-term debt	3,449	1,856	1,855
Finance lease and financing obligations	1,351	1,367	1,225
Operating leases	2,605	2,619	2,680
Deferred income taxes	165	260	233
Other long-term liabilities	222	234	239
Shareholders’ equity:
Common stock	4	4	4
Paid-in capital	3,289	3,272	3,223
Treasury stock, at cost	(11,593)	(11,571)	(11,221)
Retained earnings	13,090	13,745	13,436
Total shareholders’ equity	4,790	5,450	5,442
Total liabilities and shareholders’ equity	$ 15,869	$ 14,555	$ 14,466

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended
	May 02, 2020	May 04, 2019
Total revenue	$ 2,428	$ 4,087
Cost of merchandise sold	$ 1,787	$ 2,415
Type of Cost, Good or Service [Extensible List]	kss:MerchandiseMember	kss:MerchandiseMember
Operating expenses:
Selling, general, and administrative	$ 1,066	$ 1,275
Depreciation and amortization	227	230
Impairments, store closing, and other costs	66	49
Operating (loss) income	(718)	118
Interest expense, net	58	52
(Loss) income before income taxes	(776)	66
(Benefit) provision for income taxes	(235)	4
Net (loss) income	$ (541)	$ 62
Net (loss) income per share:
Basic	$ (3.52)	$ 0.38
Diluted	$ (3.52)	$ 0.38
Net Sales [Member]
Total revenue	$ 2,160	$ 3,821
Other Revenue [Member]
Total revenue	$ 268	$ 266

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions		Total	Common Stock [Member]	Paid-In Capital [Member]	Treasury Stock at Cost [Member]	Retained Earnings [Member]
Balance, beginning of period at Feb. 02, 2019			$ 4	$ 3,204	$ (11,076)	$ 13,395
Change in accounting standard at Feb. 02, 2019	[1]					88
Treasury stock purchases					(121)
Stock-based awards				19	(25)
Net (loss) earnings		$ 62				62
Dividends paid					1	(109)
Balance, end of period at May. 04, 2019		$ 5,442	$ 4	3,223	$ (11,221)	13,436
Shares, beginning of period at Feb. 02, 2019			374		(211)
Treasury stock purchases					(2)
Stock-based awards			1
Shares, end of period at May. 04, 2019		162	375		(213)
Dividends paid per common share		$ 0.67
Balance, beginning of period at Feb. 01, 2020		$ 5,450	$ 4	3,272	$ (11,571)	13,745
Treasury stock purchases					(8)
Stock-based awards				17	(20)
Net (loss) earnings		(541)				(541)
Dividends paid					6	(114)
Balance, end of period at May. 02, 2020		$ 4,790	$ 4	$ 3,289	$ (11,593)	$ 13,090
Shares, beginning of period at Feb. 01, 2020			375		(219)
Stock-based awards			2
Shares, end of period at May. 02, 2020		158	377		(219)
Dividends paid per common share		$ 0.704
[1]	Adoption of new lease accounting standard in 2019.

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	May 02, 2020	May 04, 2019
Operating activities
Net (loss) income	$ (541)	$ 62
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	227	230
Share-based compensation	15	15
Deferred income taxes	(91)	18
Impairments, store closing, and other costs	51	49
Non-cash inventory costs	187
Non-cash lease expense	37	37
Other non-cash expenses	5	2
Changes in operating assets and liabilities:
Merchandise inventories	(205)	(202)
Other current and long-term assets	(21)	6
Accounts payable	660	108
Accrued and other long-term liabilities	(98)	(141)
Income taxes	(139)	1
Operating lease liabilities	(34)	(49)
Net cash provided by operating activities	53	136
Investing activities
Acquisition of property and equipment	(162)	(238)
Net cash used in investing activities	(162)	(238)
Financing activities
Proceeds from issuance of debt	2,097
Deferred financing costs	(19)
Treasury stock purchases	(8)	(121)
Shares withheld for taxes on vested restricted shares	(20)	(25)
Dividends paid	(108)	(108)
Reduction of long-term borrowings	(497)	(6)
Finance lease and financing obligation payments	(23)	(31)
Proceeds from stock option exercises		2
Proceeds from financing obligations	3
Net cash provided by (used in) financing activities	1,425	(289)
Net increase (decrease) in cash and cash equivalents	1,316	(391)
Cash and cash equivalents at beginning of period	723	934
Cash and cash equivalents at end of period	2,039	543
Supplemental information
Interest paid, net of capitalized interest	39	32
Income taxes paid	1	7
Property and equipment acquired through:
Finance lease liabilities	8	10
Operating lease liabilities	$ 20	$ 49

Basis of Presentation

Basis of Presentation	3 Months Ended
	May 02, 2020
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 1, 2020 (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”) and the uncertainty surrounding the financial impact of the novel coronavirus (“COVID-19”) pandemic, 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. Accounting Policies The accounting policies the Company follows are set forth in its most recently filed Annual Report on Form 10-K. There have been no material changes to these accounting policies except as discussed below. Use of Estimates The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. We believe that our accounting estimates are appropriate after incorporating the increased uncertainties surrou nding the severity and duration of the COVID-19 pandemic. Actual results could differ from those estimates. Leases In the first quarter of 2020, we negotiated rent deferrals for a significant number of our stores, with repayment at later dates, primarily in the third and fourth quarter of 2020 and first and second quarter of 2021. These concessions provide a deferral of rent payments with no substantive changes to the original contract. Consistent with updated guidance from the FASB in April 2020, we have elected to treat the COVID-19 pandemic-related rent deferrals as accrued liabilities. We will continue to recognize expense during the deferral periods. Merchandise Inventories Merchandise inventories are valued at the lower of cost or market using the Retail Inventory Method ("RIM"). Under RIM, the valuation of inventory at cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the retail value of inventory. RIM is an averaging method that has been widely used in the retail industry due to its practicality. The use of RIM will result in inventory being valued at the lower of cost or market since permanent markdowns are taken as a reduction of the retail value of inventories. A reserve would be recorded if the future estimated selling price is less than cost. As a result of the COVID-19 pandemic and store closures, we recorded a reserve of $163 million for excess seasonal inventory where the expected selling price is less than cost for the quarter ended May 2, 2020. No reserve was recorded as of February 1, 2020 or May 4, 2019. In addition, $24 million of inventory was written off during the first quarter of 2020 as there was no future recoverable value. Property and Equipment and Long Lived Assets All property and equipment and other long-lived assets are reviewed for potential impairment at least annually or when events or changes in circumstances indicate that the asset’s carrying value may not be recoverable. If such indicators are present, it is determined whether the sum of the estimated undiscounted future cash flows attributable to such assets is less than the carrying value of the assets. A potential impairment has occurred if projected future undiscounted cash flows are less than the carrying value of the assets. Given the substantial reduction in our sales and the reduced cash flow projections as a result of the store closures due to the COVID-19 pandemic, we determined that a triggering event occurred in the first quarter of 2020 and an impairment assessment was warranted for certain stores and other long lived assets. Based on this assessment, we recorded impairment charges of $51 million in the first quarter of 2020 in Impairments, store closing, and other costs. In connection with the closure of four stores in the first quarter of 2019, we recorded impairment charges of $49 million in the first quarter of 2019 in Impairments, store closing, and other costs. As of May 2, 2020, we had assets held for sale of $24 million. Restructuring Reserve The following table summarizes changes in the restructuring reserve during the quarter ended May 2, 2020: (Dollars In Millions) Severance Balance - February 1, 2020 $ 27 Payments and reversals (16 ) Additions 2 Balance - May 2, 2020 $ 13 Charges related to corporate restructuring efforts are recorded in Impairments, store, closing, and other costs. Recent Accounting Pronouncements During the quarter ended May 2, 2020, we adopted the new accounting standard on accounting for expected credit losses (ASU 2016-13). We applied the new principle using a modified retrospective approach. There was no material impact on our financial statements due to adoption of the new standard. During the quarter ended May 2, 2020, we adopted the new accounting standard on recognizing implementation costs related to a cloud computing arrangement (ASU 2018-15). We applied the new principle using a prospective approach. There was no material impact on our financial statements due to adoption of the new standard. The following table provides a brief description of issued, but not yet effective, accounting standards: Standard Description Effect on our Financial Statements Income Taxes (ASU 2019-12) Issued December 2019 Effective Q1 2021 The new standard is designed to simplify the accounting for income taxes by removing certain exceptions to the general principles as outlined in U.S. GAAP. We are evaluating the impact of the new standard on our financial statements.

Revenue Recognition

Revenue Recognition	3 Months Ended
	May 02, 2020
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) May 2, 2020 May 4, 2019 Women's $ 593 $ 1,224 Men's 363 749 Home 483 572 Children's 269 457 Footwear 233 421 Accessories 219 398 Net sales $ 2,160 $ 3,821 Unredeemed gift cards and merchandise return card liabilities totaled $301 million Revenue of $ was recognized during Q1 2020 from the February 1, 2020 ending balance.

Debt

Debt	3 Months Ended
	May 02, 2020
Debt Disclosure [Abstract]
Debt	3. Debt Long-term debt, which includes draws on the revolving credit facility, consists of the following unsecured and secured senior debt: Effective Rate Coupon Rate Outstanding Maturity (Dollars in Millions) May 2, 2020 February 1, 2020 May 4, 2019 2023 3.25 % 3.25 % $ 350 $ 350 $ 350 2023 4.78 % 4.75 % 184 184 184 2025 9.50 % 9.50 % 600 — — 2025 4.25 % 4.25 % 650 650 650 2029 7.36 % 7.25 % 42 42 42 2033 6.05 % 6.00 % 113 113 113 2037 6.89 % 6.88 % 101 101 101 2045 5.57 % 5.55 % 427 427 427 Outstanding unsecured senior debt 2,467 1,867 1,867 Unamortized debt discounts and deferred financing costs (18 ) (11 ) (12 ) Unsecured senior debt 2,449 1,856 1,855 Effective interest rate 5.90 % 4.74 % 4.74 % Secured senior debt 1,000 — — Total long-term debt $ 3,449 $ 1,856 $ 1,855 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 $2.2 billion at May 2, 2020, $2.0 billion at February 1, 2020 In March 2020, we fully drew down our $1.0 billion senior unsecured revolver. In April 2020, we replaced and upsized the unsecured credit facility with a $1.5 billion senior secured, asset based revolving credit facility maturing in July 2024. The revolver is secured by substantially all of our assets other than real estate, In April 2020, we issued $600 million of 9.50% notes with semi-annual interest payments beginning in November 2020. The notes include coupon rate step ups if our long-term debt is downgraded to below a BBB- credit rating .

Stock-Based Awards

Stock-Based Awards	3 Months Ended
	May 02, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Awards	4. Stock-Based Awards The following table summarizes our stock-based awards activity for the quarter ended May 2, 2020: 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 1, 2020 87 $ 51.78 2,312 $ 56.24 1,274 $ 61.55 Granted — — 2,242 20.13 702 20.95 Exercised/vested — — (730 ) 54.08 (826 ) 42.72 Forfeited/expired (20 ) 49.39 (145 ) 55.30 (25 ) 73.55 Balance - May 2, 2020 67 $ 52.49 3,679 $ 34.69 1,125 $ 49.75 In 2019, we granted 1,747,441 of stock warrants. The total vested and unvested warrants as of May 2, 2020 were 349,489 and 1,397,952, respectively.

Contingencies

Contingencies	3 Months Ended
	May 02, 2020
Commitments And Contingencies Disclosure [Abstract]
Contingencies	5. 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 (Loss) Income Per Share

Net (Loss) Income Per Share	3 Months Ended
	May 02, 2020
Earnings Per Share [Abstract]
Net (Loss) Income Per Share	6. Net (Loss) Income Per Share Basic Net (loss) income per share is Net (loss) income divided by the average number of common shares outstanding during the period. Diluted Net (loss) 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 information required to compute basic and diluted Net (loss) income per share is as follows: Quarter Ended (Dollars and Shares in Millions, Except per Share Data) May 2, 2020 May 4, 2019 Numerator—Net (loss) income $ (541 ) $ 62 Denominator—Weighted-average shares: Basic 154 161 Dilutive impact — 1 Diluted 154 162 Net (loss) income per share: Basic $ (3.52 ) $ 0.38 Diluted $ (3.52 ) $ 0.38 The following potential shares of common stock were excluded from the diluted Net (loss) income per share calculation because their effect would have been anti-dilutive: Quarter Ended (Shares in Millions) May 2, 2020 May 4, 2019 Stock options, awards, units, and warrants 6 —

Subsequent Events

Subsequent Events	3 Months Ended
	May 02, 2020
Subsequent Events [Abstract]
Subsequent Events	7. Subsequent Events As part of our continuing efforts to leverage our existing assets for increased liquidity and value, on May 22, 2020, we closed on a sale leaseback transaction for our San Bernardino E-commerce fulfillment and distribution centers. The transaction generated $195 million $ 127

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	May 02, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Use of Estimates	Use of Estimates The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. We believe that our accounting estimates are appropriate after incorporating the increased uncertainties surrou nding the severity and duration of the COVID-19 pandemic. Actual results could differ from those estimates.
Leases	Leases In the first quarter of 2020, we negotiated rent deferrals for a significant number of our stores, with repayment at later dates, primarily in the third and fourth quarter of 2020 and first and second quarter of 2021. These concessions provide a deferral of rent payments with no substantive changes to the original contract. Consistent with updated guidance from the FASB in April 2020, we have elected to treat the COVID-19 pandemic-related rent deferrals as accrued liabilities. We will continue to recognize expense during the deferral periods.
Merchandise Inventories	Merchandise Inventories Merchandise inventories are valued at the lower of cost or market using the Retail Inventory Method ("RIM"). Under RIM, the valuation of inventory at cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the retail value of inventory. RIM is an averaging method that has been widely used in the retail industry due to its practicality. The use of RIM will result in inventory being valued at the lower of cost or market since permanent markdowns are taken as a reduction of the retail value of inventories. A reserve would be recorded if the future estimated selling price is less than cost. As a result of the COVID-19 pandemic and store closures, we recorded a reserve of $163 million for excess seasonal inventory where the expected selling price is less than cost for the quarter ended May 2, 2020. No reserve was recorded as of February 1, 2020 or May 4, 2019. In addition, $24 million of inventory was written off during the first quarter of 2020 as there was no future recoverable value.
Property and Equipment and Long Lived Assets	Property and Equipment and Long Lived Assets All property and equipment and other long-lived assets are reviewed for potential impairment at least annually or when events or changes in circumstances indicate that the asset’s carrying value may not be recoverable. If such indicators are present, it is determined whether the sum of the estimated undiscounted future cash flows attributable to such assets is less than the carrying value of the assets. A potential impairment has occurred if projected future undiscounted cash flows are less than the carrying value of the assets. Given the substantial reduction in our sales and the reduced cash flow projections as a result of the store closures due to the COVID-19 pandemic, we determined that a triggering event occurred in the first quarter of 2020 and an impairment assessment was warranted for certain stores and other long lived assets. Based on this assessment, we recorded impairment charges of $51 million in the first quarter of 2020 in Impairments, store closing, and other costs. In connection with the closure of four stores in the first quarter of 2019, we recorded impairment charges of $49 million in the first quarter of 2019 in Impairments, store closing, and other costs. As of May 2, 2020, we had assets held for sale of $24 million.
Restructuring Reserve	Restructuring Reserve The following table summarizes changes in the restructuring reserve during the quarter ended May 2, 2020: (Dollars In Millions) Severance Balance - February 1, 2020 $ 27 Payments and reversals (16 ) Additions 2 Balance - May 2, 2020 $ 13 Charges related to corporate restructuring efforts are recorded in Impairments, store, closing, and other costs.
Recent Accounting Pronouncements	Recent Accounting Pronouncements During the quarter ended May 2, 2020, we adopted the new accounting standard on accounting for expected credit losses (ASU 2016-13). We applied the new principle using a modified retrospective approach. There was no material impact on our financial statements due to adoption of the new standard. During the quarter ended May 2, 2020, we adopted the new accounting standard on recognizing implementation costs related to a cloud computing arrangement (ASU 2018-15). We applied the new principle using a prospective approach. There was no material impact on our financial statements due to adoption of the new standard. The following table provides a brief description of issued, but not yet effective, accounting standards: Standard Description Effect on our Financial Statements Income Taxes (ASU 2019-12) Issued December 2019 Effective Q1 2021 The new standard is designed to simplify the accounting for income taxes by removing certain exceptions to the general principles as outlined in U.S. GAAP. We are evaluating the impact of the new standard on our financial statements.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	3 Months Ended
	May 02, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Summary of Changes in Restructuring Reserve	The following table summarizes changes in the restructuring reserve during the quarter ended May 2, 2020: (Dollars In Millions) Severance Balance - February 1, 2020 $ 27 Payments and reversals (16 ) Additions 2 Balance - May 2, 2020 $ 13

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	May 02, 2020
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) May 2, 2020 May 4, 2019 Women's $ 593 $ 1,224 Men's 363 749 Home 483 572 Children's 269 457 Footwear 233 421 Accessories 219 398 Net sales $ 2,160 $ 3,821

Debt (Tables)

Debt (Tables)	3 Months Ended
	May 02, 2020
Debt Disclosure [Abstract]
Components of Long-term Debt	Long-term debt, which includes draws on the revolving credit facility, consists of the following unsecured and secured senior debt: Effective Rate Coupon Rate Outstanding Maturity (Dollars in Millions) May 2, 2020 February 1, 2020 May 4, 2019 2023 3.25 % 3.25 % $ 350 $ 350 $ 350 2023 4.78 % 4.75 % 184 184 184 2025 9.50 % 9.50 % 600 — — 2025 4.25 % 4.25 % 650 650 650 2029 7.36 % 7.25 % 42 42 42 2033 6.05 % 6.00 % 113 113 113 2037 6.89 % 6.88 % 101 101 101 2045 5.57 % 5.55 % 427 427 427 Outstanding unsecured senior debt 2,467 1,867 1,867 Unamortized debt discounts and deferred financing costs (18 ) (11 ) (12 ) Unsecured senior debt 2,449 1,856 1,855 Effective interest rate 5.90 % 4.74 % 4.74 % Secured senior debt 1,000 — — Total long-term debt $ 3,449 $ 1,856 $ 1,855

Stock-Based Awards (Tables)

Stock-Based Awards (Tables)	3 Months Ended
	May 02, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Stock-Based Awards Activity	The following table summarizes our stock-based awards activity for the quarter ended May 2, 2020: 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 1, 2020 87 $ 51.78 2,312 $ 56.24 1,274 $ 61.55 Granted — — 2,242 20.13 702 20.95 Exercised/vested — — (730 ) 54.08 (826 ) 42.72 Forfeited/expired (20 ) 49.39 (145 ) 55.30 (25 ) 73.55 Balance - May 2, 2020 67 $ 52.49 3,679 $ 34.69 1,125 $ 49.75

Net (Loss) Income Per Share (Ta

Net (Loss) Income Per Share (Tables)	3 Months Ended
	May 02, 2020
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net (Loss) Income Per Share	The information required to compute basic and diluted Net (loss) income per share is as follows: Quarter Ended (Dollars and Shares in Millions, Except per Share Data) May 2, 2020 May 4, 2019 Numerator—Net (loss) income $ (541 ) $ 62 Denominator—Weighted-average shares: Basic 154 161 Dilutive impact — 1 Diluted 154 162 Net (loss) income per share: Basic $ (3.52 ) $ 0.38 Diluted $ (3.52 ) $ 0.38
Schedule of Anti-dilutive Securities Excluded from Diluted Net (Loss) Income Per Share	The following potential shares of common stock were excluded from the diluted Net (loss) income per share calculation because their effect would have been anti-dilutive: Quarter Ended (Shares in Millions) May 2, 2020 May 4, 2019 Stock options, awards, units, and warrants 6 —

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Details)	3 Months Ended
	May 02, 2020USD ($)	May 04, 2019USD ($)Store	Feb. 01, 2020USD ($)
Basis Of Presentation [Line Items]
Impairment charges of property and equipment and other long-lived assets		$ 49,000,000
Number of stores closed | Store		4
Assets held for sale	$ 24,000,000
Covid 19 [Member]
Basis Of Presentation [Line Items]
Merchandise inventories reserve	163,000,000	$ 0	$ 0
Inventory write-off	24,000,000
Impairment charges of property and equipment and other long-lived assets	$ 51,000,000

Basis of Presentation - Summary

Basis of Presentation - Summary of Changes in Restructuring Reserve (Details) - Employee Severance [Member] $ in Millions	3 Months Ended
	May 02, 2020USD ($)
Restructuring Cost And Reserve [Line Items]
Restructuring Reserve	$ 27
Payments and reversals	(16)
Additions	2
Restructuring Reserve	$ 13

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Net Sales by Line of Business (Details) - USD ($) $ in Millions	3 Months Ended
	May 02, 2020	May 04, 2019
Disaggregation Of Revenue [Line Items]
Net sales	$ 2,428	$ 4,087
Net Sales [Member]
Disaggregation Of Revenue [Line Items]
Net sales	2,160	3,821
Net Sales [Member] | Women's [Member]
Disaggregation Of Revenue [Line Items]
Net sales	593	1,224
Net Sales [Member] | Men's [Member]
Disaggregation Of Revenue [Line Items]
Net sales	363	749
Net Sales [Member] | Home [Member]
Disaggregation Of Revenue [Line Items]
Net sales	483	572
Net Sales [Member] | Children's [Member]
Disaggregation Of Revenue [Line Items]
Net sales	269	457
Net Sales [Member] | Footwear [Member]
Disaggregation Of Revenue [Line Items]
Net sales	233	421
Net Sales [Member] | Accessories [Member]
Disaggregation Of Revenue [Line Items]
Net sales	$ 219	$ 398

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	May 02, 2020	Feb. 01, 2020	May 04, 2019
Disaggregation Of Revenue [Line Items]
Rewards Program unredeemed gift cards and merchandise return cards liabilities	$ 301	$ 334	$ 280
Net Sales [Member]
Disaggregation Of Revenue [Line Items]
Revenue recognized	$ 60

Debt - Components of Long-term

Debt - Components of Long-term Debt (Details) - USD ($) $ in Millions	May 02, 2020	Feb. 01, 2020	May 04, 2019
Debt Instrument [Line Items]
Effective interest rate	5.90%	4.74%	4.74%
Outstanding	$ 2,467	$ 1,867	$ 1,867
Unamortized debt discounts and deferred financing costs	(18)	(11)	(12)
Unsecured senior debt	2,449	1,856	1,855
Secured senior debt	1,000
Total long-term debt	$ 3,449	1,856	1,855
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	$ 350	350	350
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	$ 184	184	184
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	$ 600
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	$ 650	650	650
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 2033 [Member]
Debt Instrument [Line Items]
Effective interest rate	6.05%
Debt Instrument, Interest Rate, Stated Percentage	6.00%
Outstanding	$ 113	113	113
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 ($)	1 Months Ended		3 Months Ended
	Apr. 30, 2020	Mar. 31, 2020	May 02, 2020	Feb. 01, 2020	May 04, 2019
Debt Instrument [Line Items]
Effective interest rate			5.90%	4.74%	4.74%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date description			In March 2020, we fully drew down our $1.0 billion senior unsecured revolver. In April 2020, we replaced and upsized the unsecured credit facility with a $1.5 billion senior secured, asset based revolving credit facility maturing in July 2024.
Debt instrument, covenant description			The revolver is secured by substantially all of our assets other than real estate, and contains customary events of default and financial, affirmative, and negative covenants, including but not limited to, a springing financial covenant related to our fixed charge coverage ratio and restrictions on indebtedness, liens, investments, asset dispositions, and restricted payments, including a restriction on dividends in 2020 if our outstanding borrowings under the credit facility exceed $1.0 billion.
Senior Secured Asset Based Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Replaced and upsized credit facility	$ 1,500,000,000
Debt instrument, maturity date	2024-07
Outstanding borrowing amount			$ 1,000,000,000
Effective interest rate			3.41%
Unsecured Senior Debt [Member]
Debt Instrument [Line Items]
Long-term Debt, Fair Value			$ 2,200,000,000	$ 2,000,000,000	$ 1,900,000,000
Senior Notes [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Drawings from senior unsecured revolver		$ 1,000,000,000
Outstanding borrowing amount				$ 0	$ 0
9.50 % Notes [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date	2025-05
Debt instrument, maturity date description	In April 2020, we issued $600 million of 9.50% notes with semi-annual interest payments beginning in November 2020. The notes include coupon rate step ups if our long-term debt is downgraded to below a BBB- credit rating by S&P Global Ratings or Baa3 by Moody’s Investors Service, Inc. The notes mature in May 2025.
Notes issued	$ 600,000,000
Interest rate on notes	9.50%
Debt instrument, frequency of interest payment	semi-annual
Debt instrument interest payment beginning month and year	2020-11
9.50 % Notes [Member] | Senior Secured Asset Based Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Repayments of secured debt	$ 500,000,000

Stock-Based Awards - Summary of

Stock-Based Awards - Summary of Stock-Based Awards Activity (Details) shares in Thousands	3 Months Ended
	May 02, 2020$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Options, Beginning Balance | shares	87
Stock Options, Forfeited/expired | shares	(20)
Stock Options, Ending Balance | shares	67
Stock Options, Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 51.78
Stock Options, Weighted Average Exercise Price, Forfeited/expired | $ / shares	49.39
Stock Options, Weighted Average Exercise Price, Ending Balance | $ / shares	$ 52.49
Nonvested Stock Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Awards/ Share Units, Beginning Balance | shares	2,312
Stock Awards/ Share Units, Granted | shares	2,242
Stock Awards/ Share Units, Exercised/vested | shares	(730)
Stock Awards/ Share Units, Forfeited/expired | shares	(145)
Stock Awards/ Share Units, Ending Balance | shares	3,679
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 56.24
Stock Awards/ Share Units, Awards/Units, Weighted Average Grant Date Fair Value, Granted | $ / shares	20.13
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Exercised/vested | $ / shares	54.08
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Forfeited/expired | $ / shares	55.30
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 34.69
Performance Share Units [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Awards/ Share Units, Beginning Balance | shares	1,274
Stock Awards/ Share Units, Granted | shares	702
Stock Awards/ Share Units, Exercised/vested | shares	(826)
Stock Awards/ Share Units, Forfeited/expired | shares	(25)
Stock Awards/ Share Units, Ending Balance | shares	1,125
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 61.55
Stock Awards/ Share Units, Awards/Units, Weighted Average Grant Date Fair Value, Granted | $ / shares	20.95
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Exercised/vested | $ / shares	42.72
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Forfeited/expired | $ / shares	73.55
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 49.75

Stock-Based Awards - Additional

Stock-Based Awards - Additional Information (Details) - shares	3 Months Ended
	May 02, 2020	Feb. 01, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock warrants, granted		1,747,441
Warrant [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vested warrants	349,489
Unvested warrants	1,397,952

Net (Loss) Income Per Share - C

Net (Loss) Income Per Share - Computation of Basic and Diluted Net (Loss) Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	May 02, 2020	May 04, 2019
Earnings Per Share [Abstract]
Numerator—Net (loss) income	$ (541)	$ 62
Denominator—Weighted-average shares: Basic	154	161
Dilutive impact		1
Weighted average shares, Diluted	154	162
Basic	$ (3.52)	$ 0.38
Diluted	$ (3.52)	$ 0.38

Net (Loss) Income Per Share - S

Net (Loss) Income Per Share - Schedule of Anti-dilutive Securities Excluded from Diluted Net (Loss) Income Per Share (Details) shares in Millions	3 Months Ended
	May 02, 2020shares
Stock Options, Awards, Units, and Warrants [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of diluted net (loss) income per share	6

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - San Bernardino [Member] - E-commerce Fulfillment and Distribution Centers [Member] - USD ($) $ in Millions	May 22, 2020	Aug. 01, 2020
Forecast [Member]
Subsequent Event [Line Items]
Sale leaseback transaction, gain recognized		$ 127
Subsequent Event [Member]
Subsequent Event [Line Items]
Sale leaseback transaction date	May 22, 2020
Sale leaseback transaction, cash generated	$ 195