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Balance Sheet | October 31, 2015 Reported | ASU 2015-03 & 2015-15 Adjustments | ASU 2015-17 Adjustments | October 31, 2015 Adjusted | |||||||||||
Other current assets | $ | 676 | $ | (2 | ) | $ | (265 | ) | $ | 409 | |||||
Other assets | 636 | (4 | ) | 265 | 897 | ||||||||||
Total assets | $ | 15,175 | $ | (6 | ) | $ | — | $ | 15,169 | ||||||
Long-term debt | $ | 1,256 | $ | (6 | ) | $ | — | $ | 1,250 | ||||||
Total liabilities & equity | $ | 15,175 | $ | (6 | ) | $ | — | $ | 15,169 |
|
Three Months Ended | Nine Months Ended | ||||||||||||||
October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | ||||||||||||
Revenue | $ | — | $ | — | $ | — | $ | 217 | |||||||
Gain (loss) from discontinued operations before income tax benefit (expense) | 2 | (4 | ) | 28 | (14 | ) | |||||||||
Income tax benefit (expense) | — | — | (7 | ) | 3 | ||||||||||
Gain on sale of discontinued operations | — | — | — | 99 | |||||||||||
Net gain (loss) from discontinued operations | $ | 2 | $ | (4 | ) | $ | 21 | $ | 88 |
|
• | Quoted prices for similar assets or liabilities in active markets; |
• | Quoted prices for identical or similar assets or liabilities in non-active markets; |
• | Inputs other than quoted prices that are observable for the asset or liability; and |
• | Inputs that are derived principally from or corroborated by other observable market data. |
Fair Value at | |||||||||||||
Fair Value Hierarchy | October 29, 2016 | January 30, 2016 | October 31, 2015 | ||||||||||
ASSETS | |||||||||||||
Cash and cash equivalents | |||||||||||||
Money market funds | Level 1 | $ | 97 | $ | 51 | $ | 2 | ||||||
Commercial paper | Level 2 | — | 265 | 108 | |||||||||
Time deposits | Level 2 | 11 | 306 | 222 | |||||||||
Short-term investments | |||||||||||||
Corporate bonds | Level 2 | — | 193 | 333 | |||||||||
Commercial paper | Level 2 | 250 | 122 | 288 | |||||||||
Time deposits | Level 2 | 1,527 | 990 | 1,029 | |||||||||
Other current assets | |||||||||||||
Money market funds | Level 1 | 3 | — | — | |||||||||
Commercial paper | Level 2 | 60 | — | — | |||||||||
Foreign currency derivative instruments | Level 2 | 5 | 18 | 14 | |||||||||
Time deposits | Level 2 | 100 | 79 | 79 | |||||||||
Other assets | |||||||||||||
Interest rate swap derivative instruments | Level 2 | 13 | 25 | 10 | |||||||||
Auction rate securities | Level 3 | — | 2 | 2 | |||||||||
Marketable securities that fund deferred compensation | Level 1 | 96 | 96 | 96 | |||||||||
LIABILITIES | |||||||||||||
Accrued Liabilities | |||||||||||||
Foreign currency derivative instruments | Level 2 | 3 | 1 | — |
Impairments | Remaining Net Carrying Value(1) | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | ||||||||||||||||||
Property and equipment (non-restructuring) | $ | 8 | $ | 9 | $ | 16 | $ | 34 | $ | — | $ | 10 | |||||||||||
Restructuring activities(2) | |||||||||||||||||||||||
Tradename | — | — | — | 40 | — | — | |||||||||||||||||
Property and equipment | 1 | — | 8 | 30 | — | — | |||||||||||||||||
Total | $ | 9 | $ | 9 | $ | 24 | $ | 104 | $ | — | $ | 10 |
(1) | Remaining net carrying value approximates fair value. Because assets subject to long-lived asset impairment are not measured at fair value on a recurring basis, certain fair value measurements presented in the table may reflect values at earlier measurement dates and may no longer represent the fair values at October 29, 2016, and October 31, 2015. |
(2) | See Note 5, Restructuring Charges, for additional information. |
|
Goodwill | Indefinite-lived Tradenames | ||||||||||||||
Domestic | Domestic | International | Total | ||||||||||||
Balances at January 31, 2015 | $ | 425 | $ | 18 | $ | 39 | $ | 57 | |||||||
Changes in foreign currency exchange rates | — | — | 1 | 1 | |||||||||||
Canada brand restructuring(1) | — | — | (40 | ) | (40 | ) | |||||||||
Balances at October 31, 2015 | $ | 425 | $ | 18 | $ | — | $ | 18 |
(1) | Represents the Future Shop tradename impairment as a result of the Canadian brand consolidation in the first quarter of fiscal 2016. See Note 5, Restructuring Charges, for further discussion of the Canadian brand consolidation. |
October 29, 2016 | January 30, 2016 | October 31, 2015 | |||||||||||||||||||||
Gross Carrying Amount | Cumulative Impairment | Gross Carrying Amount | Cumulative Impairment | Gross Carrying Amount | Cumulative Impairment | ||||||||||||||||||
Goodwill | $ | 1,100 | $ | (675 | ) | $ | 1,100 | $ | (675 | ) | $ | 1,100 | $ | (675 | ) |
|
Three Months Ended | Nine Months Ended | ||||||||||||||
October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | ||||||||||||
Renew Blue Phase 2 | $ | 1 | $ | — | $ | 26 | $ | — | |||||||
Canadian brand consolidation | (2 | ) | 5 | (1 | ) | 189 | |||||||||
Renew Blue(1) | 1 | — | 4 | (2 | ) | ||||||||||
Other restructuring activities(2) | 1 | 2 | 1 | 2 | |||||||||||
Total restructuring charges | $ | 1 | $ | 7 | $ | 30 | $ | 189 |
(1) | Represents activity related to our remaining vacant space liability, primarily in our International segment, for our Renew Blue restructuring program, which began in the fourth quarter of fiscal 2013. We may continue to incur immaterial adjustments to the liability for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated. The remaining vacant space liability was $10 million at October 29, 2016. |
(2) | Represents activity related to our remaining vacant space liability for U.S. large-format store closures in fiscal 2013. We may continue to incur immaterial adjustments to the liability for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated. The remaining vacant space liability was $12 million at October 29, 2016. |
Domestic | |||||||
October 29, 2016 | |||||||
Three Months Ended | Nine Months Ended | ||||||
Property and equipment impairments | $ | 1 | $ | 8 | |||
Termination benefits | — | 18 | |||||
Total Renew Blue Phase 2 restructuring charges | $ | 1 | $ | 26 |
Termination Benefits | |||
Balances at January 30, 2016 | $ | — | |
Charges | 19 | ||
Cash payments | (16 | ) | |
Adjustments(1) | (2 | ) | |
Balances at October 29, 2016 | $ | 1 |
International | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | Cumulative Amount | |||||||||||||||
Inventory write-downs | $ | — | $ | (1 | ) | $ | — | $ | 4 | $ | 3 | ||||||||
Property and equipment impairments | — | — | — | 30 | 30 | ||||||||||||||
Tradename impairment | — | — | — | 40 | 40 | ||||||||||||||
Termination benefits | — | 2 | — | 26 | 25 | ||||||||||||||
Facility closure and other costs | (2 | ) | 4 | (1 | ) | 89 | 101 | ||||||||||||
Total Canadian brand consolidation restructuring charges | $ | (2 | ) | $ | 5 | $ | (1 | ) | $ | 189 | $ | 199 |
Termination Benefits | Facility Closure and Other Costs | Total | |||||||||
Balances at January 30, 2016 | $ | 2 | $ | 64 | $ | 66 | |||||
Charges | — | 1 | 1 | ||||||||
Cash payments | (2 | ) | (29 | ) | (31 | ) | |||||
Adjustments(1) | — | (2 | ) | (2 | ) | ||||||
Changes in foreign currency exchange rates | — | 3 | 3 | ||||||||
Balances at October 29, 2016 | $ | — | $ | 37 | $ | 37 |
Termination Benefits | Facility Closure and Other Costs | Total | |||||||||
Balances at January 31, 2015 | $ | — | $ | — | $ | — | |||||
Charges | 28 | 113 | 141 | ||||||||
Cash payments | (22 | ) | (28 | ) | (50 | ) | |||||
Adjustments(1) | (2 | ) | (9 | ) | (11 | ) | |||||
Changes in foreign currency exchange rates | — | (3 | ) | (3 | ) | ||||||
Balances at October 31, 2015 | $ | 4 | $ | 73 | $ | 77 |
|
October 29, 2016 | January 30, 2016 | October 31, 2015 | |||||||||
2016 Notes | $ | — | $ | 350 | $ | 350 | |||||
2018 Notes | 500 | 500 | 500 | ||||||||
2021 Notes | 650 | 650 | 649 | ||||||||
Interest rate swap valuation adjustments | 13 | 25 | 10 | ||||||||
Subtotal | 1,163 | 1,525 | 1,509 | ||||||||
Debt discounts and issuance costs | (5 | ) | (7 | ) | (6 | ) | |||||
Financing lease obligations | 180 | 178 | 88 | ||||||||
Capital lease obligations | 29 | 38 | 42 | ||||||||
Total long-term debt | 1,367 | 1,734 | 1,633 | ||||||||
Less: current portion(1) | (43 | ) | (395 | ) | (383 | ) | |||||
Total long-term debt, less current portion | $ | 1,324 | $ | 1,339 | $ | 1,250 |
(1) | Our 2016 Notes, due March 15, 2016, were classified in our current portion of long-term debt as of January 30, 2016 and October 31, 2015, respectively. In March 2016, we repaid the 2016 Notes using existing cash resources. |
|
October 29, 2016 | January 30, 2016 | October 31, 2015 | |||||||||||||||||||||
Contract Type | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||
Derivatives designated as net investment hedges(1) | $ | 4 | $ | 3 | $ | 15 | $ | 1 | $ | 12 | $ | — | |||||||||||
Derivatives designated as interest rate swaps(2) | 13 | — | 25 | — | 10 | — | |||||||||||||||||
No hedge designation (foreign exchange forward contracts)(1) | 1 | — | 3 | — | 2 | — | |||||||||||||||||
Total | $ | 18 | $ | 3 | $ | 43 | $ | 1 | $ | 24 | $ | — |
(1) | The fair value is recorded in other current assets or accrued liabilities. |
(2) | The fair value is recorded in other assets or long-term liabilities. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||
October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | ||||||||||||||||||||||||||||
Contract Type | Pre-tax Gain(Loss) Recognized in OCI | Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) | Pre-tax Gain(Loss) Recognized in OCI | Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) | Pre-tax Gain(Loss) Recognized in OCI | Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) | Pre-tax Gain(Loss) Recognized in OCI | Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) | |||||||||||||||||||||||
Derivatives designated as net investment hedges | $ | 6 | $ | — | $ | — | $ | — | $ | (10 | ) | $ | — | $ | 6 | $ | — |
Gain (Loss) Recognized within SG&A | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
Contract Type | October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | |||||||||||
No hedge designation (foreign exchange forward contracts) | $ | 1 | $ | 1 | $ | (2 | ) | $ | (3 | ) |
Gain (Loss) Recognized within Interest Expense | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
Contract Type | October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | |||||||||||
Interest rate swap gain | $ | (14 | ) | $ | (3 | ) | $ | (12 | ) | $ | 9 | ||||
Adjustments to carrying value of long-term debt | 14 | 3 | 12 | (9 | ) | ||||||||||
Net impact on Condensed Consolidated Statements of Earnings | $ | — | $ | — | $ | — | $ | — |
Notional Amount | |||||||||||
Contract Type | October 29, 2016 | January 30, 2016 | October 31, 2015 | ||||||||
Derivatives designated as net investment hedges | $ | 203 | $ | 208 | $ | 222 | |||||
Derivatives designated as interest rate swaps | 750 | 750 | 750 | ||||||||
No hedge designation (foreign exchange forward contracts) | 59 | 94 | 195 | ||||||||
Total | $ | 1,012 | $ | 1,052 | $ | 1,167 |
|
Foreign Currency Translation | |||
Balances at July 30, 2016 | $ | 296 | |
Foreign currency translation adjustments | (19 | ) | |
Balances at October 29, 2016 | $ | 277 | |
Foreign Currency Translation | |||
Balances at January 30, 2016 | $ | 271 | |
Foreign currency translation adjustments | 6 | ||
Balances at October 29, 2016 | $ | 277 | |
Foreign Currency Translation | |||
Balances at August 1, 2015 | $ | 298 | |
Foreign currency translation adjustments | (2 | ) | |
Balances at October 31, 2015 | $ | 296 | |
Foreign Currency Translation | |||
Balances at January 31, 2015 | $ | 382 | |
Foreign currency translation adjustments | (19 | ) | |
Reclassification of foreign currency translation adjustments into earnings due to sale of business | (67 | ) | |
Balances at October 31, 2015 | $ | 296 |
|
Three Months Ended | Nine Months Ended | ||||||||||||||
October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | ||||||||||||
Total cost of shares repurchased | |||||||||||||||
Open market(1) | $ | 206 | $ | 64 | $ | 483 | $ | 388 | |||||||
Settlement of January 2016 ASR | — | — | 45 | — | |||||||||||
Total | $ | 206 | $ | 64 | $ | 528 | $ | 388 | |||||||
Average price per share | |||||||||||||||
Open market | $ | 37.67 | $ | 35.17 | $ | 33.52 | $ | 34.20 | |||||||
Settlement of January 2016 ASR | $ | — | $ | — | $ | 28.55 | $ | — | |||||||
Average | $ | 37.67 | $ | 35.17 | $ | 33.03 | $ | 34.20 | |||||||
Number of shares repurchased and retired | |||||||||||||||
Open market(1) | 5.5 | 1.8 | 14.4 | 11.3 | |||||||||||
Settlement of January 2016 ASR | — | — | 1.6 | — | |||||||||||
Total | 5.5 | 1.8 | 16.0 | 11.3 |
(1) | As of October 29, 2016, $11 million, or 0.3 million shares, in trades remained unsettled. As of October 31, 2015, $3 million, or 0.1 million shares, in trades remained unsettled. The liability for unsettled trades is included in Accrued liabilities in the Condensed Consolidated Balance Sheets. |
|
Three Months Ended | Nine Months Ended | ||||||||||||||
October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | ||||||||||||
Domestic | $ | 8,192 | $ | 8,090 | $ | 23,910 | $ | 23,858 | |||||||
International | 753 | 729 | 2,011 | 2,047 | |||||||||||
Total revenue | $ | 8,945 | $ | 8,819 | $ | 25,921 | $ | 25,905 |
Three Months Ended | Nine Months Ended | ||||||||||||||
October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | ||||||||||||
Domestic | $ | 298 | $ | 244 | $ | 959 | $ | 857 | |||||||
International | 14 | (14 | ) | 14 | (253 | ) | |||||||||
Total operating income | 312 | 230 | 973 | 604 | |||||||||||
Other income (expense) | |||||||||||||||
Gain on sale of investments | — | — | 2 | 2 | |||||||||||
Investment income and other | 8 | 3 | 22 | 14 | |||||||||||
Interest expense | (16 | ) | (20 | ) | (54 | ) | (60 | ) | |||||||
Earnings from continuing operations before income tax expense | $ | 304 | $ | 213 | $ | 943 | $ | 560 |
October 29, 2016 | January 30, 2016 | October 31, 2015 | |||||||||
Domestic | $ | 13,115 | $ | 12,318 | $ | 13,817 | |||||
International | 1,427 | 1,201 | 1,352 | ||||||||
Total assets | $ | 14,542 | $ | 13,519 | $ | 15,169 |
|
|
Balance Sheet | October 31, 2015 Reported | ASU 2015-03 & 2015-15 Adjustments | ASU 2015-17 Adjustments | October 31, 2015 Adjusted | |||||||||||
Other current assets | $ | 676 | $ | (2 | ) | $ | (265 | ) | $ | 409 | |||||
Other assets | 636 | (4 | ) | 265 | 897 | ||||||||||
Total assets | $ | 15,175 | $ | (6 | ) | $ | — | $ | 15,169 | ||||||
Long-term debt | $ | 1,256 | $ | (6 | ) | $ | — | $ | 1,250 | ||||||
Total liabilities & equity | $ | 15,175 | $ | (6 | ) | $ | — | $ | 15,169 |
|
Three Months Ended | Nine Months Ended | ||||||||||||||
October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | ||||||||||||
Revenue | $ | — | $ | — | $ | — | $ | 217 | |||||||
Gain (loss) from discontinued operations before income tax benefit (expense) | 2 | (4 | ) | 28 | (14 | ) | |||||||||
Income tax benefit (expense) | — | — | (7 | ) | 3 | ||||||||||
Gain on sale of discontinued operations | — | — | — | 99 | |||||||||||
Net gain (loss) from discontinued operations | $ | 2 | $ | (4 | ) | $ | 21 | $ | 88 |
|
Fair Value at | |||||||||||||
Fair Value Hierarchy | October 29, 2016 | January 30, 2016 | October 31, 2015 | ||||||||||
ASSETS | |||||||||||||
Cash and cash equivalents | |||||||||||||
Money market funds | Level 1 | $ | 97 | $ | 51 | $ | 2 | ||||||
Commercial paper | Level 2 | — | 265 | 108 | |||||||||
Time deposits | Level 2 | 11 | 306 | 222 | |||||||||
Short-term investments | |||||||||||||
Corporate bonds | Level 2 | — | 193 | 333 | |||||||||
Commercial paper | Level 2 | 250 | 122 | 288 | |||||||||
Time deposits | Level 2 | 1,527 | 990 | 1,029 | |||||||||
Other current assets | |||||||||||||
Money market funds | Level 1 | 3 | — | — | |||||||||
Commercial paper | Level 2 | 60 | — | — | |||||||||
Foreign currency derivative instruments | Level 2 | 5 | 18 | 14 | |||||||||
Time deposits | Level 2 | 100 | 79 | 79 | |||||||||
Other assets | |||||||||||||
Interest rate swap derivative instruments | Level 2 | 13 | 25 | 10 | |||||||||
Auction rate securities | Level 3 | — | 2 | 2 | |||||||||
Marketable securities that fund deferred compensation | Level 1 | 96 | 96 | 96 | |||||||||
LIABILITIES | |||||||||||||
Accrued Liabilities | |||||||||||||
Foreign currency derivative instruments | Level 2 | 3 | 1 | — |
Impairments | Remaining Net Carrying Value(1) | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | ||||||||||||||||||
Property and equipment (non-restructuring) | $ | 8 | $ | 9 | $ | 16 | $ | 34 | $ | — | $ | 10 | |||||||||||
Restructuring activities(2) | |||||||||||||||||||||||
Tradename | — | — | — | 40 | — | — | |||||||||||||||||
Property and equipment | 1 | — | 8 | 30 | — | — | |||||||||||||||||
Total | $ | 9 | $ | 9 | $ | 24 | $ | 104 | $ | — | $ | 10 |
(1) | Remaining net carrying value approximates fair value. Because assets subject to long-lived asset impairment are not measured at fair value on a recurring basis, certain fair value measurements presented in the table may reflect values at earlier measurement dates and may no longer represent the fair values at October 29, 2016, and October 31, 2015. |
(2) | See Note 5, Restructuring Charges, for additional information. |
|
Goodwill | Indefinite-lived Tradenames | ||||||||||||||
Domestic | Domestic | International | Total | ||||||||||||
Balances at January 31, 2015 | $ | 425 | $ | 18 | $ | 39 | $ | 57 | |||||||
Changes in foreign currency exchange rates | — | — | 1 | 1 | |||||||||||
Canada brand restructuring(1) | — | — | (40 | ) | (40 | ) | |||||||||
Balances at October 31, 2015 | $ | 425 | $ | 18 | $ | — | $ | 18 |
(1) | Represents the Future Shop tradename impairment as a result of the Canadian brand consolidation in the first quarter of fiscal 2016. See Note 5, Restructuring Charges, for further discussion of the Canadian brand consolidation. |
October 29, 2016 | January 30, 2016 | October 31, 2015 | |||||||||||||||||||||
Gross Carrying Amount | Cumulative Impairment | Gross Carrying Amount | Cumulative Impairment | Gross Carrying Amount | Cumulative Impairment | ||||||||||||||||||
Goodwill | $ | 1,100 | $ | (675 | ) | $ | 1,100 | $ | (675 | ) | $ | 1,100 | $ | (675 | ) |
|
Three Months Ended | Nine Months Ended | ||||||||||||||
October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | ||||||||||||
Renew Blue Phase 2 | $ | 1 | $ | — | $ | 26 | $ | — | |||||||
Canadian brand consolidation | (2 | ) | 5 | (1 | ) | 189 | |||||||||
Renew Blue(1) | 1 | — | 4 | (2 | ) | ||||||||||
Other restructuring activities(2) | 1 | 2 | 1 | 2 | |||||||||||
Total restructuring charges | $ | 1 | $ | 7 | $ | 30 | $ | 189 |
(1) | Represents activity related to our remaining vacant space liability, primarily in our International segment, for our Renew Blue restructuring program, which began in the fourth quarter of fiscal 2013. We may continue to incur immaterial adjustments to the liability for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated. The remaining vacant space liability was $10 million at October 29, 2016. |
(2) | Represents activity related to our remaining vacant space liability for U.S. large-format store closures in fiscal 2013. We may continue to incur immaterial adjustments to the liability for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated. The remaining vacant space liability was $12 million at October 29, 2016. |
Domestic | |||||||
October 29, 2016 | |||||||
Three Months Ended | Nine Months Ended | ||||||
Property and equipment impairments | $ | 1 | $ | 8 | |||
Termination benefits | — | 18 | |||||
Total Renew Blue Phase 2 restructuring charges | $ | 1 | $ | 26 |
Termination Benefits | |||
Balances at January 30, 2016 | $ | — | |
Charges | 19 | ||
Cash payments | (16 | ) | |
Adjustments(1) | (2 | ) | |
Balances at October 29, 2016 | $ | 1 |
International | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | Cumulative Amount | |||||||||||||||
Inventory write-downs | $ | — | $ | (1 | ) | $ | — | $ | 4 | $ | 3 | ||||||||
Property and equipment impairments | — | — | — | 30 | 30 | ||||||||||||||
Tradename impairment | — | — | — | 40 | 40 | ||||||||||||||
Termination benefits | — | 2 | — | 26 | 25 | ||||||||||||||
Facility closure and other costs | (2 | ) | 4 | (1 | ) | 89 | 101 | ||||||||||||
Total Canadian brand consolidation restructuring charges | $ | (2 | ) | $ | 5 | $ | (1 | ) | $ | 189 | $ | 199 |
Termination Benefits | Facility Closure and Other Costs | Total | |||||||||
Balances at January 30, 2016 | $ | 2 | $ | 64 | $ | 66 | |||||
Charges | — | 1 | 1 | ||||||||
Cash payments | (2 | ) | (29 | ) | (31 | ) | |||||
Adjustments(1) | — | (2 | ) | (2 | ) | ||||||
Changes in foreign currency exchange rates | — | 3 | 3 | ||||||||
Balances at October 29, 2016 | $ | — | $ | 37 | $ | 37 |
Termination Benefits | Facility Closure and Other Costs | Total | |||||||||
Balances at January 31, 2015 | $ | — | $ | — | $ | — | |||||
Charges | 28 | 113 | 141 | ||||||||
Cash payments | (22 | ) | (28 | ) | (50 | ) | |||||
Adjustments(1) | (2 | ) | (9 | ) | (11 | ) | |||||
Changes in foreign currency exchange rates | — | (3 | ) | (3 | ) | ||||||
Balances at October 31, 2015 | $ | 4 | $ | 73 | $ | 77 |
|
October 29, 2016 | January 30, 2016 | October 31, 2015 | |||||||||
2016 Notes | $ | — | $ | 350 | $ | 350 | |||||
2018 Notes | 500 | 500 | 500 | ||||||||
2021 Notes | 650 | 650 | 649 | ||||||||
Interest rate swap valuation adjustments | 13 | 25 | 10 | ||||||||
Subtotal | 1,163 | 1,525 | 1,509 | ||||||||
Debt discounts and issuance costs | (5 | ) | (7 | ) | (6 | ) | |||||
Financing lease obligations | 180 | 178 | 88 | ||||||||
Capital lease obligations | 29 | 38 | 42 | ||||||||
Total long-term debt | 1,367 | 1,734 | 1,633 | ||||||||
Less: current portion(1) | (43 | ) | (395 | ) | (383 | ) | |||||
Total long-term debt, less current portion | $ | 1,324 | $ | 1,339 | $ | 1,250 |
(1) | Our 2016 Notes, due March 15, 2016, were classified in our current portion of long-term debt as of January 30, 2016 and October 31, 2015, respectively. In March 2016, we repaid the 2016 Notes using existing cash resources. |
|
October 29, 2016 | January 30, 2016 | October 31, 2015 | |||||||||||||||||||||
Contract Type | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||
Derivatives designated as net investment hedges(1) | $ | 4 | $ | 3 | $ | 15 | $ | 1 | $ | 12 | $ | — | |||||||||||
Derivatives designated as interest rate swaps(2) | 13 | — | 25 | — | 10 | — | |||||||||||||||||
No hedge designation (foreign exchange forward contracts)(1) | 1 | — | 3 | — | 2 | — | |||||||||||||||||
Total | $ | 18 | $ | 3 | $ | 43 | $ | 1 | $ | 24 | $ | — |
(1) | The fair value is recorded in other current assets or accrued liabilities. |
(2) | The fair value is recorded in other assets or long-term liabilities. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||
October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | ||||||||||||||||||||||||||||
Contract Type | Pre-tax Gain(Loss) Recognized in OCI | Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) | Pre-tax Gain(Loss) Recognized in OCI | Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) | Pre-tax Gain(Loss) Recognized in OCI | Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) | Pre-tax Gain(Loss) Recognized in OCI | Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) | |||||||||||||||||||||||
Derivatives designated as net investment hedges | $ | 6 | $ | — | $ | — | $ | — | $ | (10 | ) | $ | — | $ | 6 | $ | — |
Gain (Loss) Recognized within SG&A | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
Contract Type | October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | |||||||||||
No hedge designation (foreign exchange forward contracts) | $ | 1 | $ | 1 | $ | (2 | ) | $ | (3 | ) |
Gain (Loss) Recognized within Interest Expense | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
Contract Type | October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | |||||||||||
Interest rate swap gain | $ | (14 | ) | $ | (3 | ) | $ | (12 | ) | $ | 9 | ||||
Adjustments to carrying value of long-term debt | 14 | 3 | 12 | (9 | ) | ||||||||||
Net impact on Condensed Consolidated Statements of Earnings | $ | — | $ | — | $ | — | $ | — |
Notional Amount | |||||||||||
Contract Type | October 29, 2016 | January 30, 2016 | October 31, 2015 | ||||||||
Derivatives designated as net investment hedges | $ | 203 | $ | 208 | $ | 222 | |||||
Derivatives designated as interest rate swaps | 750 | 750 | 750 | ||||||||
No hedge designation (foreign exchange forward contracts) | 59 | 94 | 195 | ||||||||
Total | $ | 1,012 | $ | 1,052 | $ | 1,167 |
|
Foreign Currency Translation | |||
Balances at July 30, 2016 | $ | 296 | |
Foreign currency translation adjustments | (19 | ) | |
Balances at October 29, 2016 | $ | 277 | |
Foreign Currency Translation | |||
Balances at January 30, 2016 | $ | 271 | |
Foreign currency translation adjustments | 6 | ||
Balances at October 29, 2016 | $ | 277 | |
Foreign Currency Translation | |||
Balances at August 1, 2015 | $ | 298 | |
Foreign currency translation adjustments | (2 | ) | |
Balances at October 31, 2015 | $ | 296 | |
Foreign Currency Translation | |||
Balances at January 31, 2015 | $ | 382 | |
Foreign currency translation adjustments | (19 | ) | |
Reclassification of foreign currency translation adjustments into earnings due to sale of business | (67 | ) | |
Balances at October 31, 2015 | $ | 296 |
|
Three Months Ended | Nine Months Ended | ||||||||||||||
October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | ||||||||||||
Total cost of shares repurchased | |||||||||||||||
Open market(1) | $ | 206 | $ | 64 | $ | 483 | $ | 388 | |||||||
Settlement of January 2016 ASR | — | — | 45 | — | |||||||||||
Total | $ | 206 | $ | 64 | $ | 528 | $ | 388 | |||||||
Average price per share | |||||||||||||||
Open market | $ | 37.67 | $ | 35.17 | $ | 33.52 | $ | 34.20 | |||||||
Settlement of January 2016 ASR | $ | — | $ | — | $ | 28.55 | $ | — | |||||||
Average | $ | 37.67 | $ | 35.17 | $ | 33.03 | $ | 34.20 | |||||||
Number of shares repurchased and retired | |||||||||||||||
Open market(1) | 5.5 | 1.8 | 14.4 | 11.3 | |||||||||||
Settlement of January 2016 ASR | — | — | 1.6 | — | |||||||||||
Total | 5.5 | 1.8 | 16.0 | 11.3 |
(1) | As of October 29, 2016, $11 million, or 0.3 million shares, in trades remained unsettled. As of October 31, 2015, $3 million, or 0.1 million shares, in trades remained unsettled. The liability for unsettled trades is included in Accrued liabilities in the Condensed Consolidated Balance Sheets. |
|
Three Months Ended | Nine Months Ended | ||||||||||||||
October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | ||||||||||||
Domestic | $ | 8,192 | $ | 8,090 | $ | 23,910 | $ | 23,858 | |||||||
International | 753 | 729 | 2,011 | 2,047 | |||||||||||
Total revenue | $ | 8,945 | $ | 8,819 | $ | 25,921 | $ | 25,905 |
Three Months Ended | Nine Months Ended | ||||||||||||||
October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | ||||||||||||
Domestic | $ | 298 | $ | 244 | $ | 959 | $ | 857 | |||||||
International | 14 | (14 | ) | 14 | (253 | ) | |||||||||
Total operating income | 312 | 230 | 973 | 604 | |||||||||||
Other income (expense) | |||||||||||||||
Gain on sale of investments | — | — | 2 | 2 | |||||||||||
Investment income and other | 8 | 3 | 22 | 14 | |||||||||||
Interest expense | (16 | ) | (20 | ) | (54 | ) | (60 | ) | |||||||
Earnings from continuing operations before income tax expense | $ | 304 | $ | 213 | $ | 943 | $ | 560 |
October 29, 2016 | January 30, 2016 | October 31, 2015 | |||||||||
Domestic | $ | 13,115 | $ | 12,318 | $ | 13,817 | |||||
International | 1,427 | 1,201 | 1,352 | ||||||||
Total assets | $ | 14,542 | $ | 13,519 | $ | 15,169 |
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