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• | ASU 2015-11, Inventory: Simplifying the Measurement of Inventory. The new guidance replaces the current inventory measurement requirement of lower of cost or market with the lower of cost or net realizable value. The adoption did not have a material impact on our results of operations, cash flows or financial position. |
• | ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The new guidance changed certain aspects of accounting for share-based payments including accounting for income taxes, forfeitures and classifications in the statement of cash flows. Beginning with the first quarter of fiscal 2018, excess tax benefits and tax deficiencies are recognized in our provision for income taxes as a discrete event rather than directly to stockholders’ equity. This change is adopted prospectively, with no change to prior periods. We recognized an excess tax benefit of $2 million for the first quarter ended April 29, 2017. In addition, with the adoption of this standard we elected to change our policy for accounting for forfeitures. Previously, we recorded forfeitures (which reduce stock-based compensation expense) based on forward-looking estimates. Beginning this quarter, we have elected to record forfeitures as they occur. The cumulative effect of this policy change amounted to $12 million, net of tax. This was recorded as a reduction of opening retained earnings. We elected to present the statements of cash flows on a retrospective transition method, and prior periods have been adjusted to present excess tax benefits as cash flows from operating activities. See cash flow reconciliation below for prior period impacts. |
• | ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, and ASU 2016-18, Statement of Cash Flows: Restricted Cash. ASU 2016-15 provides classification requirements for specific transactions within the statement of cash flows, while ASU 2016-18 requires that restricted cash balances be included in the beginning and ending cash balance within the statement of cash flows. The adoption increased our beginning and ending cash balance within our statement of cash flows, and we have provided a reconciliation of these amounts to the corresponding balance sheet captions, below. The adoption had no other material impacts to our cash flow statement and had no impact on our results of operations or financial position. |
April 30, 2016 Reported | ASU 2016-09 Adjustment | ASU 2016-15 Adjustment | ASU 2016-18 Adjustment | April 30, 2016 Adjusted | ||||||||||||||||
Operating activities | ||||||||||||||||||||
Other, net | $ | (12 | ) | $ | 9 | $ | — | $ | — | $ | (3 | ) | ||||||||
Total cash provided by operating activities | 483 | 9 | — | — | 492 | |||||||||||||||
Investing activities | ||||||||||||||||||||
Change in restricted assets | (2 | ) | — | — | 2 | — | ||||||||||||||
Total cash used in investing activities | (42 | ) | — | — | 2 | (40 | ) | |||||||||||||
Financing activities | ||||||||||||||||||||
Other, net | 19 | (9 | ) | — | — | 10 | ||||||||||||||
Total cash used in financing activities | (612 | ) | (9 | ) | — | — | (621 | ) | ||||||||||||
Decrease in cash, cash equivalents and restricted cash | (131 | ) | — | — | 2 | (129 | ) | |||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 1,976 | — | — | 185 | 2,161 | |||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 1,845 | $ | — | $ | — | $ | 187 | $ | 2,032 |
April 29, 2017 | January 28, 2017 | April 30, 2016 | |||||||||
Cash and cash equivalents | $ | 1,651 | $ | 2,240 | $ | 1,845 | |||||
Restricted cash included in Other current assets | 183 | 193 | 187 | ||||||||
Total cash, cash equivalents and restricted cash | $ | 1,834 | $ | 2,433 | $ | 2,032 |
|
Three Months Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Income tax benefit | — | 3 | |||||
Net gain from discontinued operations | $ | — | $ | 3 |
|
• | 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 | April 29, 2017 | January 28, 2017 | April 30, 2016 | ||||||||||
ASSETS | |||||||||||||
Cash and cash equivalents | |||||||||||||
Money market funds | Level 1 | $ | 24 | $ | 290 | $ | 56 | ||||||
Commercial paper | Level 2 | 260 | — | 93 | |||||||||
Time deposits | Level 2 | 11 | 15 | 454 | |||||||||
Short-term investments | |||||||||||||
Corporate bonds | Level 2 | — | — | 78 | |||||||||
Commercial paper | Level 2 | 150 | 349 | 110 | |||||||||
Time deposits | Level 2 | 1,798 | 1,332 | 1,032 | |||||||||
Other current assets | |||||||||||||
Money market funds | Level 1 | 2 | 7 | — | |||||||||
Commercial paper | Level 2 | 60 | 60 | — | |||||||||
Foreign currency derivative instruments | Level 2 | 7 | 2 | — | |||||||||
Time deposits | Level 2 | 101 | 100 | 79 | |||||||||
Other assets | |||||||||||||
Interest rate swap derivative instruments | Level 2 | 4 | 13 | 15 | |||||||||
Auction rate securities | Level 3 | — | — | 2 | |||||||||
Marketable securities that fund deferred compensation | Level 1 | 97 | 96 | 96 | |||||||||
LIABILITIES | |||||||||||||
Accrued liabilities | |||||||||||||
Foreign currency derivative instruments | Level 2 | — | 3 | 13 | |||||||||
Long-term liabilities | |||||||||||||
Interest rate swap derivative instruments | Level 2 | 1 | — | — |
Impairments | Remaining Net Carrying Value(1) | ||||||||||||||
Three Months Ended | |||||||||||||||
April 29, 2017 | April 30, 2016 | April 29, 2017 | April 30, 2016 | ||||||||||||
Property and equipment (non-restructuring) | $ | 5 | $ | 5 | $ | — | $ | — | |||||||
Property and equipment (restructuring)(2) | — | 7 | — | — | |||||||||||
Total | $ | 5 | $ | 12 | $ | — | $ | — |
(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 April 29, 2017, and April 30, 2016. |
(2) | See Note 5, Restructuring Charges, for additional information. |
|
April 29, 2017 | January 28, 2017 | April 30, 2016 | |||||||||||||||||||||
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 | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Renew Blue Phase 2 | $ | — | $ | 27 | |||
Canadian brand consolidation | — | (1 | ) | ||||
Renew Blue(1) | — | 3 | |||||
Other restructuring activities(2) | — | — | |||||
Total restructuring charges | $ | — | $ | 29 |
(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 $8 million at April 29, 2017. |
(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 $11 million at April 29, 2017. |
Domestic | |||||||||||
Three Months Ended | Cumulative Amount | ||||||||||
April 29, 2017 | April 30, 2016 | ||||||||||
Property and equipment impairments | $ | — | $ | 7 | $ | 8 | |||||
Termination benefits | — | 20 | 18 | ||||||||
Total Renew Blue Phase 2 restructuring charges | $ | — | $ | 27 | $ | 26 |
Termination Benefits | |||
Balances at January 30, 2016 | $ | — | |
Charges | 19 | ||
Cash payments | (4 | ) | |
Balances at April 30, 2016 | $ | 15 |
Three Months Ended | Cumulative Amount | ||||||||||
April 29, 2017 | April 30, 2016 | ||||||||||
Inventory write-downs | $ | — | $ | — | $ | 3 | |||||
Property and equipment impairments | — | — | 30 | ||||||||
Tradename impairment | — | — | 40 | ||||||||
Termination benefits | — | — | 25 | ||||||||
Facility closure and other costs | — | (1 | ) | 105 | |||||||
Total Canadian brand consolidation restructuring charges | $ | — | $ | (1 | ) | $ | 203 |
Termination Benefits | Facility Closure and Other Costs | Total | |||||||||
Balances at January 28, 2017 | $ | — | $ | 34 | $ | 34 | |||||
Cash payments | — | (6 | ) | (6 | ) | ||||||
Changes in foreign currency exchange rates | — | (1 | ) | (1 | ) | ||||||
Balances at April 29, 2017 | $ | — | $ | 27 | $ | 27 |
Termination Benefits | Facility Closure and Other Costs | Total | |||||||||
Balances at January 30, 2016 | $ | 2 | $ | 64 | $ | 66 | |||||
Cash payments | (1 | ) | (11 | ) | (12 | ) | |||||
Adjustments(1) | — | (1 | ) | (1 | ) | ||||||
Changes in foreign currency exchange rates | — | 6 | 6 | ||||||||
Balances at April 30, 2016 | $ | 1 | $ | 58 | $ | 59 |
(1) | Adjustments to facility closure and other costs represent changes in sublease assumptions. Adjustments to termination benefits represent changes in retention assumptions. |
|
April 29, 2017 | January 28, 2017 | April 30, 2016 | |||||||||
2018 Notes | $ | 500 | $ | 500 | $ | 500 | |||||
2021 Notes | 650 | 650 | 650 | ||||||||
Interest rate swap valuation adjustments | 3 | 13 | 15 | ||||||||
Subtotal | 1,153 | 1,163 | 1,165 | ||||||||
Debt discounts and issuance costs | (4 | ) | (5 | ) | (6 | ) | |||||
Financing lease obligations | 171 | 177 | 184 | ||||||||
Capital lease obligations | 27 | 30 | 35 | ||||||||
Total long-term debt | 1,347 | 1,365 | 1,378 | ||||||||
Less: current portion | (45 | ) | (44 | ) | (44 | ) | |||||
Total long-term debt, less current portion | $ | 1,302 | $ | 1,321 | $ | 1,334 |
|
April 29, 2017 | January 28, 2017 | April 30, 2016 | |||||||||||||||||||||
Contract Type | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||
Derivatives designated as net investment hedges(1) | $ | 6 | $ | — | $ | 2 | $ | 2 | $ | — | $ | 11 | |||||||||||
Derivatives designated as interest rate swaps(2) | 4 | 1 | 13 | — | 15 | — | |||||||||||||||||
No hedge designation (foreign exchange forward contracts)(1) | 1 | — | — | 1 | — | 2 | |||||||||||||||||
Total | $ | 11 | $ | 1 | $ | 15 | $ | 3 | $ | 15 | $ | 13 |
(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 | |||||||||||||||
April 29, 2017 | April 30, 2016 | ||||||||||||||
Contract Type | Pre-tax Gain Recognized in OCI | Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) | Pre-tax Loss Recognized in OCI | Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) | |||||||||||
Derivatives designated as net investment hedges | $ | 8 | $ | — | $ | (22 | ) | $ | — |
Gain (Loss) Recognized within SG&A | |||||||
Three Months Ended | |||||||
Contract Type | April 29, 2017 | April 30, 2016 | |||||
No hedge designation (foreign exchange forward contracts) | $ | 1 | $ | (5 | ) |
Gain (Loss) Recognized within Interest expense | |||||||
Three Months Ended | |||||||
Contract Type | April 29, 2017 | April 30, 2016 | |||||
Interest rate swap loss | $ | (10 | ) | $ | (10 | ) | |
Adjustments to carrying value of long-term debt | 10 | 10 | |||||
Net impact | $ | — | $ | — |
Notional Amount | |||||||||||
Contract Type | April 29, 2017 | January 28, 2017 | April 30, 2016 | ||||||||
Derivatives designated as net investment hedges | $ | 206 | $ | 205 | $ | 204 | |||||
Derivatives designated as interest rate swaps | 825 | 750 | 750 | ||||||||
No hedge designation (foreign exchange forward contracts) | 36 | 43 | 95 | ||||||||
Total | $ | 1,067 | $ | 998 | $ | 1,049 |
|
Foreign Currency Translation | |||
Balances at January 28, 2017 | $ | 279 | |
Foreign currency translation adjustments | (13 | ) | |
Balances at April 29, 2017 | $ | 266 | |
Foreign Currency Translation | |||
Balances at January 30, 2016 | $ | 271 | |
Foreign currency translation adjustments | 45 | ||
Balances at April 30, 2016 | $ | 316 |
|
Three Months Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Total cost of shares repurchased | |||||||
Open market(1) | $ | 384 | $ | 56 | |||
Settlement of January 2016 ASR(2) | — | 45 | |||||
Total | $ | 384 | $ | 101 | |||
Average price per share | |||||||
Open market | $ | 46.3 | $ | 32.41 | |||
Settlement of January 2016 ASR(2) | $ | — | $ | 28.55 | |||
Average | $ | 46.3 | $ | 30.55 | |||
Number of shares repurchased and retired | |||||||
Open market(1) | 8.3 | 1.7 | |||||
Settlement of January 2016 ASR(2) | — | 1.6 | |||||
Total | 8.3 | 3.3 |
(1) | As of April 29, 2017, $19 million, or 0.3 million shares, in trades remained unsettled. As of April 30, 2016, $4 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. |
(2) | See Note 7, Shareholders' Equity, in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 28, 2017, for additional information regarding the January 2016 ASR. |
|
Three Months Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Domestic | $ | 7,912 | $ | 7,829 | |||
International | 616 | 614 | |||||
Total revenue | $ | 8,528 | $ | 8,443 |
Three Months Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Domestic | $ | 298 | $ | 372 | |||
International | 2 | — | |||||
Total operating income | 300 | 372 | |||||
Other income (expense) | |||||||
Gain on sale of investments | — | 2 | |||||
Investment income and other | 11 | 6 | |||||
Interest expense | (19 | ) | (20 | ) | |||
Earnings from continuing operations before income tax expense | $ | 292 | $ | 360 |
April 29, 2017 | January 28, 2017 | April 30, 2016 | |||||||||
Domestic | $ | 11,691 | $ | 12,496 | $ | 11,562 | |||||
International | 1,264 | 1,360 | 1,339 | ||||||||
Total assets | $ | 12,955 | $ | 13,856 | $ | 12,901 |
|
|
April 30, 2016 Reported | ASU 2016-09 Adjustment | ASU 2016-15 Adjustment | ASU 2016-18 Adjustment | April 30, 2016 Adjusted | ||||||||||||||||
Operating activities | ||||||||||||||||||||
Other, net | $ | (12 | ) | $ | 9 | $ | — | $ | — | $ | (3 | ) | ||||||||
Total cash provided by operating activities | 483 | 9 | — | — | 492 | |||||||||||||||
Investing activities | ||||||||||||||||||||
Change in restricted assets | (2 | ) | — | — | 2 | — | ||||||||||||||
Total cash used in investing activities | (42 | ) | — | — | 2 | (40 | ) | |||||||||||||
Financing activities | ||||||||||||||||||||
Other, net | 19 | (9 | ) | — | — | 10 | ||||||||||||||
Total cash used in financing activities | (612 | ) | (9 | ) | — | — | (621 | ) | ||||||||||||
Decrease in cash, cash equivalents and restricted cash | (131 | ) | — | — | 2 | (129 | ) | |||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 1,976 | — | — | 185 | 2,161 | |||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 1,845 | $ | — | $ | — | $ | 187 | $ | 2,032 |
April 29, 2017 | January 28, 2017 | April 30, 2016 | |||||||||
Cash and cash equivalents | $ | 1,651 | $ | 2,240 | $ | 1,845 | |||||
Restricted cash included in Other current assets | 183 | 193 | 187 | ||||||||
Total cash, cash equivalents and restricted cash | $ | 1,834 | $ | 2,433 | $ | 2,032 |
|
Three Months Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Income tax benefit | — | 3 | |||||
Net gain from discontinued operations | $ | — | $ | 3 |
|
Fair Value at | |||||||||||||
Fair Value Hierarchy | April 29, 2017 | January 28, 2017 | April 30, 2016 | ||||||||||
ASSETS | |||||||||||||
Cash and cash equivalents | |||||||||||||
Money market funds | Level 1 | $ | 24 | $ | 290 | $ | 56 | ||||||
Commercial paper | Level 2 | 260 | — | 93 | |||||||||
Time deposits | Level 2 | 11 | 15 | 454 | |||||||||
Short-term investments | |||||||||||||
Corporate bonds | Level 2 | — | — | 78 | |||||||||
Commercial paper | Level 2 | 150 | 349 | 110 | |||||||||
Time deposits | Level 2 | 1,798 | 1,332 | 1,032 | |||||||||
Other current assets | |||||||||||||
Money market funds | Level 1 | 2 | 7 | — | |||||||||
Commercial paper | Level 2 | 60 | 60 | — | |||||||||
Foreign currency derivative instruments | Level 2 | 7 | 2 | — | |||||||||
Time deposits | Level 2 | 101 | 100 | 79 | |||||||||
Other assets | |||||||||||||
Interest rate swap derivative instruments | Level 2 | 4 | 13 | 15 | |||||||||
Auction rate securities | Level 3 | — | — | 2 | |||||||||
Marketable securities that fund deferred compensation | Level 1 | 97 | 96 | 96 | |||||||||
LIABILITIES | |||||||||||||
Accrued liabilities | |||||||||||||
Foreign currency derivative instruments | Level 2 | — | 3 | 13 | |||||||||
Long-term liabilities | |||||||||||||
Interest rate swap derivative instruments | Level 2 | 1 | — | — |
Impairments | Remaining Net Carrying Value(1) | ||||||||||||||
Three Months Ended | |||||||||||||||
April 29, 2017 | April 30, 2016 | April 29, 2017 | April 30, 2016 | ||||||||||||
Property and equipment (non-restructuring) | $ | 5 | $ | 5 | $ | — | $ | — | |||||||
Property and equipment (restructuring)(2) | — | 7 | — | — | |||||||||||
Total | $ | 5 | $ | 12 | $ | — | $ | — |
(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 April 29, 2017, and April 30, 2016. |
(2) | See Note 5, Restructuring Charges, for additional information. |
|
April 29, 2017 | January 28, 2017 | April 30, 2016 | |||||||||||||||||||||
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 | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Renew Blue Phase 2 | $ | — | $ | 27 | |||
Canadian brand consolidation | — | (1 | ) | ||||
Renew Blue(1) | — | 3 | |||||
Other restructuring activities(2) | — | — | |||||
Total restructuring charges | $ | — | $ | 29 |
(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 $8 million at April 29, 2017. |
(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 $11 million at April 29, 2017. |
Domestic | |||||||||||
Three Months Ended | Cumulative Amount | ||||||||||
April 29, 2017 | April 30, 2016 | ||||||||||
Property and equipment impairments | $ | — | $ | 7 | $ | 8 | |||||
Termination benefits | — | 20 | 18 | ||||||||
Total Renew Blue Phase 2 restructuring charges | $ | — | $ | 27 | $ | 26 |
Termination Benefits | |||
Balances at January 30, 2016 | $ | — | |
Charges | 19 | ||
Cash payments | (4 | ) | |
Balances at April 30, 2016 | $ | 15 |
Three Months Ended | Cumulative Amount | ||||||||||
April 29, 2017 | April 30, 2016 | ||||||||||
Inventory write-downs | $ | — | $ | — | $ | 3 | |||||
Property and equipment impairments | — | — | 30 | ||||||||
Tradename impairment | — | — | 40 | ||||||||
Termination benefits | — | — | 25 | ||||||||
Facility closure and other costs | — | (1 | ) | 105 | |||||||
Total Canadian brand consolidation restructuring charges | $ | — | $ | (1 | ) | $ | 203 |
Termination Benefits | Facility Closure and Other Costs | Total | |||||||||
Balances at January 28, 2017 | $ | — | $ | 34 | $ | 34 | |||||
Cash payments | — | (6 | ) | (6 | ) | ||||||
Changes in foreign currency exchange rates | — | (1 | ) | (1 | ) | ||||||
Balances at April 29, 2017 | $ | — | $ | 27 | $ | 27 |
Termination Benefits | Facility Closure and Other Costs | Total | |||||||||
Balances at January 30, 2016 | $ | 2 | $ | 64 | $ | 66 | |||||
Cash payments | (1 | ) | (11 | ) | (12 | ) | |||||
Adjustments(1) | — | (1 | ) | (1 | ) | ||||||
Changes in foreign currency exchange rates | — | 6 | 6 | ||||||||
Balances at April 30, 2016 | $ | 1 | $ | 58 | $ | 59 |
(1) | Adjustments to facility closure and other costs represent changes in sublease assumptions. Adjustments to termination benefits represent changes in retention assumptions. |
|
April 29, 2017 | January 28, 2017 | April 30, 2016 | |||||||||
2018 Notes | $ | 500 | $ | 500 | $ | 500 | |||||
2021 Notes | 650 | 650 | 650 | ||||||||
Interest rate swap valuation adjustments | 3 | 13 | 15 | ||||||||
Subtotal | 1,153 | 1,163 | 1,165 | ||||||||
Debt discounts and issuance costs | (4 | ) | (5 | ) | (6 | ) | |||||
Financing lease obligations | 171 | 177 | 184 | ||||||||
Capital lease obligations | 27 | 30 | 35 | ||||||||
Total long-term debt | 1,347 | 1,365 | 1,378 | ||||||||
Less: current portion | (45 | ) | (44 | ) | (44 | ) | |||||
Total long-term debt, less current portion | $ | 1,302 | $ | 1,321 | $ | 1,334 |
|
April 29, 2017 | January 28, 2017 | April 30, 2016 | |||||||||||||||||||||
Contract Type | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||
Derivatives designated as net investment hedges(1) | $ | 6 | $ | — | $ | 2 | $ | 2 | $ | — | $ | 11 | |||||||||||
Derivatives designated as interest rate swaps(2) | 4 | 1 | 13 | — | 15 | — | |||||||||||||||||
No hedge designation (foreign exchange forward contracts)(1) | 1 | — | — | 1 | — | 2 | |||||||||||||||||
Total | $ | 11 | $ | 1 | $ | 15 | $ | 3 | $ | 15 | $ | 13 |
(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 | |||||||||||||||
April 29, 2017 | April 30, 2016 | ||||||||||||||
Contract Type | Pre-tax Gain Recognized in OCI | Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) | Pre-tax Loss Recognized in OCI | Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) | |||||||||||
Derivatives designated as net investment hedges | $ | 8 | $ | — | $ | (22 | ) | $ | — |
Gain (Loss) Recognized within SG&A | |||||||
Three Months Ended | |||||||
Contract Type | April 29, 2017 | April 30, 2016 | |||||
No hedge designation (foreign exchange forward contracts) | $ | 1 | $ | (5 | ) |
Gain (Loss) Recognized within Interest expense | |||||||
Three Months Ended | |||||||
Contract Type | April 29, 2017 | April 30, 2016 | |||||
Interest rate swap loss | $ | (10 | ) | $ | (10 | ) | |
Adjustments to carrying value of long-term debt | 10 | 10 | |||||
Net impact | $ | — | $ | — |
Notional Amount | |||||||||||
Contract Type | April 29, 2017 | January 28, 2017 | April 30, 2016 | ||||||||
Derivatives designated as net investment hedges | $ | 206 | $ | 205 | $ | 204 | |||||
Derivatives designated as interest rate swaps | 825 | 750 | 750 | ||||||||
No hedge designation (foreign exchange forward contracts) | 36 | 43 | 95 | ||||||||
Total | $ | 1,067 | $ | 998 | $ | 1,049 |
|
Foreign Currency Translation | |||
Balances at January 28, 2017 | $ | 279 | |
Foreign currency translation adjustments | (13 | ) | |
Balances at April 29, 2017 | $ | 266 | |
Foreign Currency Translation | |||
Balances at January 30, 2016 | $ | 271 | |
Foreign currency translation adjustments | 45 | ||
Balances at April 30, 2016 | $ | 316 |
|
Three Months Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Total cost of shares repurchased | |||||||
Open market(1) | $ | 384 | $ | 56 | |||
Settlement of January 2016 ASR(2) | — | 45 | |||||
Total | $ | 384 | $ | 101 | |||
Average price per share | |||||||
Open market | $ | 46.3 | $ | 32.41 | |||
Settlement of January 2016 ASR(2) | $ | — | $ | 28.55 | |||
Average | $ | 46.3 | $ | 30.55 | |||
Number of shares repurchased and retired | |||||||
Open market(1) | 8.3 | 1.7 | |||||
Settlement of January 2016 ASR(2) | — | 1.6 | |||||
Total | 8.3 | 3.3 |
(1) | As of April 29, 2017, $19 million, or 0.3 million shares, in trades remained unsettled. As of April 30, 2016, $4 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. |
(2) | See Note 7, Shareholders' Equity, in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 28, 2017, for additional information regarding the January 2016 ASR. |
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Three Months Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Domestic | $ | 7,912 | $ | 7,829 | |||
International | 616 | 614 | |||||
Total revenue | $ | 8,528 | $ | 8,443 |
Three Months Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Domestic | $ | 298 | $ | 372 | |||
International | 2 | — | |||||
Total operating income | 300 | 372 | |||||
Other income (expense) | |||||||
Gain on sale of investments | — | 2 | |||||
Investment income and other | 11 | 6 | |||||
Interest expense | (19 | ) | (20 | ) | |||
Earnings from continuing operations before income tax expense | $ | 292 | $ | 360 |
April 29, 2017 | January 28, 2017 | April 30, 2016 | |||||||||
Domestic | $ | 11,691 | $ | 12,496 | $ | 11,562 | |||||
International | 1,264 | 1,360 | 1,339 | ||||||||
Total assets | $ | 12,955 | $ | 13,856 | $ | 12,901 |
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