☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 94-1697231 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
Two Folsom Street, San Francisco, California | 94105 | |
(Address of principal executive offices) | (Zip code) |
• | the impact of the adoption of new accounting standards; |
• | total store closures in fiscal 2016, including closure of Old Navy stores in Japan and closure of select Banana Republic stores, primarily internationally; |
• | the impact of store closures and streamlining measures, including annualized savings, lost sales, tax expense, and restructuring costs; |
• | recognition of unrealized gains and losses from designated cash flow hedges into income; |
• | the impact of the potential settlement of outstanding tax matters and the closing of audits; |
• | the impact of losses due to indemnification obligations; |
• | the outcome of proceedings, lawsuits, disputes, and claims; |
• | the impact of the Fishkill distribution center fire, including anticipated insurance recoveries for certain related costs; |
• | Old Navy’s near-term growth ambitions anchored in North America and Mexico, as well as China and its franchise operations; |
• | continuing investment in our mobile digital capabilities; |
• | further enhancing our shopping experience for our customers; |
• | creation of a more efficient operating model; |
• | the impact of foreign exchange rate fluctuations on our financial results; |
• | current cash balances and cash flows being sufficient to support our business operations, including growth initiatives and planned capital expenditures; |
• | ability to supplement near-term liquidity, if necessary, with our $500 million revolving credit facility or other available market instruments; |
• | the impact of the seasonality of our operations; |
• | dividend payments in fiscal 2016; and |
• | the impact of changes in internal control over financial reporting. |
• | the risk that adoption of new accounting pronouncements will impact future results; |
• | the risk that we or our franchisees will be unsuccessful in gauging apparel trends and changing consumer preferences; |
• | the risk that changes in global economic conditions or consumer spending patterns could adversely impact our results of operations; |
• | the highly competitive nature of our business in the United States and internationally; |
• | the risk that if we are unable to manage our inventory effectively, our gross margins will be adversely affected; |
• | the risk that the failure to attract and retain key personnel, or effectively manage succession, could have an adverse impact on our results of operations; |
• | the risk that we are subject to data or other security breaches that may result in increased costs, violations of law, significant legal and financial exposure, and a loss of confidence in our security measures, which could have an adverse effect on our results of operations and our reputation; |
• | the risks to our efforts to expand internationally, including our ability to operate under a global brand structure and operating in regions where we have less experience; |
• | the risk that foreign currency exchange rate fluctuations could adversely impact our financial results; |
• | the risks to our business, including our costs and supply chain, associated with global sourcing and manufacturing; |
• | the risks to our reputation or operations associated with importing merchandise from foreign countries, including failure of our vendors to adhere to our Code of Vendor Conduct; |
• | the risk that trade matters could increase the cost or reduce the supply of apparel available to us and adversely affect our business, financial condition, and results of operations; |
• | the risk that our franchisees’ operation of franchise stores is not directly within our control and could impair the value of our brands; |
• | the risk that we or our franchisees will be unsuccessful in identifying, negotiating, and securing new store locations and renewing, modifying, or terminating leases for existing store locations effectively; |
• | the risk that our investments in omni-channel shopping initiatives may not deliver the results we anticipate; |
• | the risk that comparable sales and margins will experience fluctuations; |
• | the risk that changes in our credit profile or deterioration in market conditions may limit our access to the capital markets and adversely impact our financial results or our business initiatives; |
• | the risk that updates or changes to our information technology (“IT”) systems may disrupt our operations; |
• | the risk that failure to maintain, enhance, and protect our brand image could have an adverse effect on our results of operations; |
• | the risk that natural disasters, public health crises, political crises, or other catastrophic events could adversely affect our operations and financial results, or those of our franchisees or vendors; |
• | the risk that changes in the regulatory or administrative landscape could adversely affect our financial condition, strategies, and results of operations; |
• | the risk that we do not repurchase some or all of the shares we anticipate purchasing pursuant to our repurchase program; and |
• | the risk that we will not be successful in defending various proceedings, lawsuits, disputes, claims, and audits. |
Page | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 6. |
Item 1. | Financial Statements. |
($ and shares in millions except par value) | October 29, 2016 | January 30, 2016 | October 31, 2015 | ||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 1,522 | $ | 1,370 | $ | 1,042 | |||||
Merchandise inventory | 2,398 | 1,873 | 2,498 | ||||||||
Other current assets | 751 | 742 | 821 | ||||||||
Total current assets | 4,671 | 3,985 | 4,361 | ||||||||
Property and equipment, net of accumulated depreciation of $5,900, $5,644, and $5,673 | 2,662 | 2,850 | 2,814 | ||||||||
Other long-term assets | 674 | 638 | 631 | ||||||||
Total assets | $ | 8,007 | $ | 7,473 | $ | 7,806 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current maturities of debt | $ | 424 | $ | 421 | $ | 421 | |||||
Accounts payable | 1,413 | 1,112 | 1,327 | ||||||||
Accrued expenses and other current liabilities | 1,059 | 979 | 997 | ||||||||
Income taxes payable | 19 | 23 | 23 | ||||||||
Total current liabilities | 2,915 | 2,535 | 2,768 | ||||||||
Long-term liabilities: | |||||||||||
Long-term debt | 1,320 | 1,310 | 1,331 | ||||||||
Lease incentives and other long-term liabilities | 1,046 | 1,083 | 1,098 | ||||||||
Total long-term liabilities | 2,366 | 2,393 | 2,429 | ||||||||
Commitments and contingencies (see Note 12) | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock $0.05 par value | |||||||||||
Authorized 2,300 shares for all periods presented; Issued and Outstanding 399, 397, and 404 shares | 20 | 20 | 20 | ||||||||
Additional paid-in capital | 57 | — | — | ||||||||
Retained earnings | 2,621 | 2,440 | 2,484 | ||||||||
Accumulated other comprehensive income | 28 | 85 | 105 | ||||||||
Total stockholders’ equity | 2,726 | 2,545 | 2,609 | ||||||||
Total liabilities and stockholders’ equity | $ | 8,007 | $ | 7,473 | $ | 7,806 |
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||
($ and shares in millions except per share amounts) | October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | |||||||||||
Net sales | $ | 3,798 | $ | 3,857 | $ | 11,087 | $ | 11,412 | |||||||
Cost of goods sold and occupancy expenses | 2,305 | 2,417 | 6,948 | 7,132 | |||||||||||
Gross profit | 1,493 | 1,440 | 4,139 | 4,280 | |||||||||||
Operating expenses | 1,104 | 1,026 | 3,249 | 3,111 | |||||||||||
Operating income | 389 | 414 | 890 | 1,169 | |||||||||||
Interest expense | 20 | 19 | 57 | 41 | |||||||||||
Interest income | (3 | ) | (1 | ) | (6 | ) | (3 | ) | |||||||
Income before income taxes | 372 | 396 | 839 | 1,131 | |||||||||||
Income taxes | 168 | 148 | 383 | 425 | |||||||||||
Net income | $ | 204 | $ | 248 | $ | 456 | $ | 706 | |||||||
Weighted-average number of shares - basic | 399 | 406 | 398 | 415 | |||||||||||
Weighted-average number of shares - diluted | 400 | 408 | 400 | 417 | |||||||||||
Earnings per share - basic | $ | 0.51 | $ | 0.61 | $ | 1.15 | $ | 1.70 | |||||||
Earnings per share - diluted | $ | 0.51 | $ | 0.61 | $ | 1.14 | $ | 1.69 | |||||||
Cash dividends declared and paid per share | $ | 0.23 | $ | 0.23 | $ | 0.69 | $ | 0.69 |
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||
($ in millions) | October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | |||||||||||
Net income | $ | 204 | $ | 248 | $ | 456 | $ | 706 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Foreign currency translation | (10 | ) | (2 | ) | (1 | ) | (9 | ) | |||||||
Change in fair value of derivative financial instruments, net of tax (tax benefit) of $4, $(4) , $(5) and $9 | 39 | (4 | ) | (57 | ) | 22 | |||||||||
Reclassification adjustment for (gains) losses on derivative financial instruments, net of tax of $-, $(14), $(6) and $(31) | — | (33 | ) | 1 | (73 | ) | |||||||||
Other comprehensive income (loss), net of tax | 29 | (39 | ) | (57 | ) | (60 | ) | ||||||||
Comprehensive income | $ | 233 | $ | 209 | $ | 399 | $ | 646 |
39 Weeks Ended | |||||||
($ in millions) | October 29, 2016 | October 31, 2015 | |||||
Cash flows from operating activities: | |||||||
Net income | $ | 456 | $ | 706 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 449 | 438 | |||||
Amortization of lease incentives | (47 | ) | (48 | ) | |||
Share-based compensation | 55 | 58 | |||||
Tax benefit from exercise of stock options and vesting of stock units | (4 | ) | 22 | ||||
Excess tax benefit from exercise of stock options and vesting of stock units | (1 | ) | (24 | ) | |||
Non-cash and other items | 101 | (45 | ) | ||||
Deferred income taxes | (10 | ) | (6 | ) | |||
Changes in operating assets and liabilities: | |||||||
Merchandise inventory | (513 | ) | (615 | ) | |||
Other current assets and other long-term assets | (52 | ) | 30 | ||||
Accounts payable | 294 | 149 | |||||
Accrued expenses and other current liabilities | 10 | (24 | ) | ||||
Income taxes payable, net of prepaid and other tax-related items | 80 | 69 | |||||
Lease incentives and other long-term liabilities | (18 | ) | 24 | ||||
Net cash provided by operating activities | 800 | 734 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (383 | ) | (505 | ) | |||
Other | (1 | ) | (4 | ) | |||
Net cash used for investing activities | (384 | ) | (509 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of short-term debt | — | 400 | |||||
Proceeds from issuances under share-based compensation plans | 25 | 60 | |||||
Withholding tax payments related to vesting of stock units | (18 | ) | (68 | ) | |||
Repurchases of common stock | — | (822 | ) | ||||
Excess tax benefit from exercise of stock options and vesting of stock units | 1 | 24 | |||||
Cash dividends paid | (275 | ) | (285 | ) | |||
Other | — | (1 | ) | ||||
Net cash used for financing activities | (267 | ) | (692 | ) | |||
Effect of foreign exchange rate fluctuations on cash and cash equivalents | 3 | (6 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 152 | (473 | ) | ||||
Cash and cash equivalents at beginning of period | 1,370 | 1,515 | |||||
Cash and cash equivalents at end of period | $ | 1,522 | $ | 1,042 | |||
Non-cash investing activities: | |||||||
Purchases of property and equipment not yet paid at end of period | $ | 63 | $ | 85 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest during the period | $ | 80 | $ | 76 | |||
Cash paid for income taxes during the period, net of refunds | $ | 318 | $ | 338 |
Costs Incurred | Estimated Costs to be Incurred | |||||||||||
($ in millions) | 13 Weeks Ended October 29, 2016 | Cumulative as of October 29, 2016 | Remainder of Fiscal 2016 | Total | ||||||||
Costs recorded in cost of goods sold and occupancy expenses: | ||||||||||||
Accelerated depreciation, net of reversal of depreciation expense related to asset retirement obligations | $ | (6 | ) | $ | (2 | ) | $ (5) - 0 | $ about (5) | ||||
Employee related costs | 1 | 12 | Less than 5 | about 15 | ||||||||
Other | (2 | ) | (2 | ) | (5) - 0 | about (5) | ||||||
Total costs recorded in cost of goods sold and occupancy expenses | (7 | ) | 8 | about (5) | about 5 | |||||||
Costs recorded in operating expenses: | ||||||||||||
Lease termination fees and lease losses | 28 | 62 | 15 - 40 | 75 - 100 | ||||||||
Employee related costs | 2 | 32 | 15 - 20 | 45 - 50 | ||||||||
Store asset impairment | 2 | 54 | — | about 55 | ||||||||
Other | 4 | 23 | about 5 | about 30 | ||||||||
Total costs recorded in operating expenses | 36 | 171 | 35 - 65 | 205 - 235 | ||||||||
Total restructuring costs | $ | 29 | $ | 179 | $ 31 - 61 | $ 210 - 240 |
($ in millions) | Lease Termination Fees and Lease Losses | Employee Related Costs | Other | Total | |||||||||||
Balance at April 30, 2016 | $ | — | $ | — | $ | — | $ | — | |||||||
13 Weeks Ended July 30, 2016: | |||||||||||||||
Provision | 34 | 41 | 12 | 87 | |||||||||||
Cash payments | — | — | (6 | ) | (6 | ) | |||||||||
Balance at July 30, 2016 | 34 | 41 | 6 | 81 | |||||||||||
13 Weeks Ended October 29, 2016: | |||||||||||||||
Provision | 28 | 7 | 4 | 39 | |||||||||||
Adjustments | — | (4 | ) | — | (4 | ) | |||||||||
Cash payments | (8 | ) | (10 | ) | (8 | ) | (26 | ) | |||||||
Balance at October 29, 2016 | $ | 54 | $ | 34 | $ | 2 | $ | 90 |
($ in millions) | October 29, 2016 | January 30, 2016 | October 31, 2015 | ||||||||
Notes | $ | 1,248 | $ | 1,248 | $ | 1,248 | |||||
Japan Term Loan | 96 | 83 | 104 | ||||||||
Total long-term debt | 1,344 | 1,331 | 1,352 | ||||||||
Less: Current portion | (24 | ) | (21 | ) | (21 | ) | |||||
Total long-term debt, less current portion | $ | 1,320 | $ | 1,310 | $ | 1,331 |
Fair Value Measurements at Reporting Date Using | |||||||||||||||
($ in millions) | October 29, 2016 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 596 | $ | 106 | $ | 490 | $ | — | |||||||
Derivative financial instruments | 62 | — | 62 | — | |||||||||||
Deferred compensation plan assets | 41 | 41 | — | — | |||||||||||
Total | $ | 699 | $ | 147 | $ | 552 | $ | — | |||||||
Liabilities: | |||||||||||||||
Derivative financial instruments | $ | 49 | $ | — | $ | 49 | $ | — | |||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||
($ in millions) | January 30, 2016 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 517 | $ | 204 | $ | 313 | $ | — | |||||||
Derivative financial instruments | 93 | — | 93 | — | |||||||||||
Deferred compensation plan assets | 37 | 37 | — | — | |||||||||||
Total | $ | 647 | $ | 241 | $ | 406 | $ | — | |||||||
Liabilities: | |||||||||||||||
Derivative financial instruments | $ | 3 | $ | — | $ | 3 | $ | — | |||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||
($ in millions) | October 31, 2015 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 174 | $ | 62 | $ | 112 | $ | — | |||||||
Derivative financial instruments | 84 | — | 84 | — | |||||||||||
Deferred compensation plan assets | 41 | 41 | — | — | |||||||||||
Total | $ | 299 | $ | 103 | $ | 196 | $ | — | |||||||
Liabilities: | |||||||||||||||
Derivative financial instruments | $ | 8 | $ | — | $ | 8 | $ | — |
($ in millions) | October 29, 2016 | January 30, 2016 | October 31, 2015 | ||||||||
Derivatives designated as cash flow hedges | $ | 1,201 | $ | 1,220 | $ | 1,349 | |||||
Derivatives designated as net investment hedges | 31 | 30 | 31 | ||||||||
Derivatives not designated as hedging instruments | 664 | 324 | 394 | ||||||||
Total | $ | 1,896 | $ | 1,574 | $ | 1,774 |
($ in millions) | October 29, 2016 | January 30, 2016 | October 31, 2015 | ||||||||
Derivatives designated as cash flow hedges: | |||||||||||
Other current assets | $ | 35 | $ | 71 | $ | 56 | |||||
Other long-term assets | $ | 13 | $ | 8 | $ | 12 | |||||
Accrued expenses and other current liabilities | $ | 26 | $ | 1 | $ | 3 | |||||
Lease incentives and other long-term liabilities | $ | 8 | $ | 1 | $ | 3 | |||||
Derivatives designated as net investment hedges: | |||||||||||
Other current assets | $ | 1 | $ | 1 | $ | — | |||||
Other long-term assets | $ | — | $ | — | $ | — | |||||
Accrued expenses and other current liabilities | $ | — | $ | — | $ | — | |||||
Lease incentives and other long-term liabilities | $ | — | $ | — | $ | — | |||||
Derivatives not designated as hedging instruments: | |||||||||||
Other current assets | $ | 13 | $ | 13 | $ | 16 | |||||
Other long-term assets | $ | — | $ | — | $ | — | |||||
Accrued expenses and other current liabilities | $ | 14 | $ | 1 | $ | 2 | |||||
Lease incentives and other long-term liabilities | $ | 1 | $ | — | $ | — | |||||
Total derivatives in an asset position | $ | 62 | $ | 93 | $ | 84 | |||||
Total derivatives in a liability position | $ | 49 | $ | 3 | $ | 8 |
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||
($ in millions) | October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | |||||||||||
Derivatives in cash flow hedging relationships: | |||||||||||||||
Gain (loss) recognized in other comprehensive income | $ | 43 | $ | (8 | ) | $ | (62 | ) | $ | 31 | |||||
Gain reclassified into cost of goods sold and occupancy expenses | $ | 2 | $ | 45 | $ | 15 | $ | 99 | |||||||
Gain (loss) reclassified into operating expenses | $ | (2 | ) | $ | 2 | $ | (10 | ) | $ | 5 | |||||
Derivatives in net investment hedging relationships: | |||||||||||||||
Gain (loss) recognized in other comprehensive income | $ | 1 | $ | — | $ | (1 | ) | $ | 1 |
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||
($ in millions) | October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | |||||||||||
Gain (loss) recognized in operating expenses | $ | 12 | $ | — | $ | (5 | ) | $ | — |
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||
($ and shares in millions except average per share cost) | October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | |||||||||||
Number of shares repurchased | — | 6.2 | — | 21.8 | |||||||||||
Total cost | $ | — | $ | 200 | $ | — | $ | 807 | |||||||
Average per share cost including commissions | $ | — | $ | 32.17 | $ | — | $ | 36.93 |
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||
($ in millions) | October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | |||||||||||
Stock units | $ | 14 | $ | 12 | $ | 43 | $ | 46 | |||||||
Stock options | 4 | 2 | 9 | 8 | |||||||||||
Employee stock purchase plan | 1 | 1 | 3 | 4 | |||||||||||
Share-based compensation expense | 19 | 15 | 55 | 58 | |||||||||||
Less: Income tax benefit | (8 | ) | (6 | ) | (25 | ) | (22 | ) | |||||||
Share-based compensation expense, net of tax | $ | 11 | $ | 9 | $ | 30 | $ | 36 |
($ in millions) | Foreign Currency Translation | Cash Flow Hedges | Total | ||||||||
Balance at January 30, 2016 | $ | 22 | $ | 63 | $ | 85 | |||||
13 Weeks Ended April 30, 2016: | |||||||||||
Foreign currency translation | 31 | — | 31 | ||||||||
Change in fair value of derivative financial instruments | — | (89 | ) | (89 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income | — | (7 | ) | (7 | ) | ||||||
Other comprehensive income (loss), net | 31 | (96 | ) | (65 | ) | ||||||
Balance at April 30, 2016 | 53 | (33 | ) | 20 | |||||||
13 Weeks Ended July 30, 2016: | |||||||||||
Foreign currency translation | (22 | ) | — | (22 | ) | ||||||
Change in fair value of derivative financial instruments | — | (7 | ) | (7 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income | — | 8 | 8 | ||||||||
Other comprehensive income (loss), net | (22 | ) | 1 | (21 | ) | ||||||
Balance at July 30, 2016 | 31 | (32 | ) | (1 | ) | ||||||
13 Weeks Ended October 29, 2016: | |||||||||||
Foreign currency translation | (10 | ) | — | (10 | ) | ||||||
Change in fair value of derivative financial instruments | — | 39 | 39 | ||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | ||||||||
Other comprehensive loss, net | (10 | ) | 39 | 29 | |||||||
Balance at October 29, 2016 | $ | 21 | $ | 7 | $ | 28 | |||||
($ in millions) | Foreign Currency Translation | Cash Flow Hedges | Total | ||||||||
Balance at January 31, 2015 | $ | 60 | $ | 105 | $ | 165 | |||||
13 Weeks Ended May 2, 2015: | |||||||||||
Foreign currency translation | 6 | — | 6 | ||||||||
Change in fair value of derivative financial instruments | — | (10 | ) | (10 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income | — | (21 | ) | (21 | ) | ||||||
Other comprehensive income (loss), net | 6 | (31 | ) | (25 | ) | ||||||
Balance at May 2, 2015 | 66 | 74 | 140 | ||||||||
13 Weeks Ended August 1, 2015: | |||||||||||
Foreign currency translation | (13 | ) | — | (13 | ) | ||||||
Change in fair value of derivative financial instruments | — | 36 | 36 | ||||||||
Amounts reclassified from accumulated other comprehensive income | — | (19 | ) | (19 | ) | ||||||
Other comprehensive income (loss), net | (13 | ) | 17 | 4 | |||||||
Balance at August 1, 2015 | 53 | 91 | 144 | ||||||||
13 Weeks Ended October 31, 2015: | |||||||||||
Foreign currency translation | (2 | ) | — | (2 | ) | ||||||
Change in fair value of derivative financial instruments | — | (4 | ) | (4 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income | — | (33 | ) | (33 | ) | ||||||
Other comprehensive loss, net | (2 | ) | (37 | ) | (39 | ) | |||||
Balance at October 31, 2015 | $ | 51 | $ | 54 | $ | 105 |
13 Weeks Ended | 39 Weeks Ended | ||||||||||
(shares in millions) | October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | |||||||
Weighted-average number of shares - basic | 399 | 406 | 398 | 415 | |||||||
Common stock equivalents | 1 | 2 | 2 | 2 | |||||||
Weighted-average number of shares - diluted | 400 | 408 | 400 | 417 |
13 Weeks Ended | |||
($ in millions) | October 29, 2016 | ||
Loss on inventory | $ | 86 | |
Loss on property, plant, and equipment | 12 | ||
Other fire-related costs | 19 | ||
Total | 117 | ||
Less: Expected insurance recoveries | (117 | ) | |
Fire-related costs, net | $ | — |
($ in millions) | Gap Global | Old Navy Global | Banana Republic Global | Other (2) | Total | Percentage of Net Sales | |||||||||||||||||
13 Weeks Ended October 29, 2016 | |||||||||||||||||||||||
U.S. (1) | $ | 756 | $ | 1,507 | $ | 479 | $ | 172 | $ | 2,914 | 77 | % | |||||||||||
Canada | 102 | 131 | 55 | 1 | 289 | 8 | |||||||||||||||||
Europe | 150 | — | 14 | — | 164 | 4 | |||||||||||||||||
Asia | 296 | 55 | 25 | — | 376 | 10 | |||||||||||||||||
Other regions | 36 | 12 | 7 | — | 55 | 1 | |||||||||||||||||
Total | $ | 1,340 | $ | 1,705 | $ | 580 | $ | 173 | $ | 3,798 | 100 | % | |||||||||||
Sales growth (decline) | (7 | )% | 5 | % | (7 | )% | 9 | % | (2 | )% | |||||||||||||
($ in millions) | Gap Global | Old Navy Global | Banana Republic Global | Other (2) | Total | Percentage of Net Sales | |||||||||||||||||
13 Weeks Ended October 31, 2015 | |||||||||||||||||||||||
U.S. (1) | $ | 838 | $ | 1,449 | $ | 520 | $ | 159 | $ | 2,966 | 77 | % | |||||||||||
Canada | 94 | 118 | 56 | — | 268 | 7 | |||||||||||||||||
Europe | 182 | — | 17 | — | 199 | 5 | |||||||||||||||||
Asia | 300 | 50 | 26 | — | 376 | 10 | |||||||||||||||||
Other regions | 34 | 6 | 8 | — | 48 | 1 | |||||||||||||||||
Total | $ | 1,448 | $ | 1,623 | $ | 627 | $ | 159 | $ | 3,857 | 100 | % | |||||||||||
Sales growth (decline) | (7 | )% | 4 | % | (11 | )% | 4 | % | (3 | )% | |||||||||||||
($ in millions) | Gap Global | Old Navy Global | Banana Republic Global | Other (2) | Total | Percentage of Net Sales | |||||||||||||||||
39 Weeks Ended October 29, 2016 | |||||||||||||||||||||||
U.S. (1) | $ | 2,203 | $ | 4,335 | $ | 1,456 | $ | 550 | $ | 8,544 | 77 | % | |||||||||||
Canada | 264 | 358 | 159 | 2 | 783 | 7 | |||||||||||||||||
Europe | 453 | — | 45 | — | 498 | 5 | |||||||||||||||||
Asia | 856 | 171 | 80 | — | 1,107 | 10 | |||||||||||||||||
Other regions | 100 | 32 | 23 | — | 155 | 1 | |||||||||||||||||
Total | $ | 3,876 | $ | 4,896 | $ | 1,763 | $ | 552 | $ | 11,087 | 100 | % | |||||||||||
Sales growth (decline) | (6 | )% | 1 | % | (8 | )% | 8 | % | (3 | )% | |||||||||||||
($ in millions) | Gap Global | Old Navy Global | Banana Republic Global | Other (3) | Total | Percentage of Net Sales | |||||||||||||||||
39 Weeks Ended October 31, 2015 | |||||||||||||||||||||||
U.S. (1) | $ | 2,368 | $ | 4,352 | $ | 1,598 | $ | 511 | $ | 8,829 | 77 | % | |||||||||||
Canada | 251 | 344 | 167 | 2 | 764 | 7 | |||||||||||||||||
Europe | 522 | — | 54 | — | 576 | 5 | |||||||||||||||||
Asia | 855 | 142 | 80 | — | 1,077 | 10 | |||||||||||||||||
Other regions | 128 | 12 | 26 | — | 166 | 1 | |||||||||||||||||
Total | $ | 4,124 | $ | 4,850 | $ | 1,925 | $ | 513 | $ | 11,412 | 100 | % | |||||||||||
Sales growth (decline) | (8 | )% | 4 | % | (7 | )% | (2 | )% | (3 | )% |
(1) | U.S. includes the United States, Puerto Rico, and Guam. |
(2) | Includes Athleta and Intermix. |
(3) | Includes Athleta, Intermix, and Piperlime, which was discontinued as of the first quarter of fiscal 2015. |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations. |
• | Net sales for the third quarter of fiscal 2016 decreased 2 percent compared with the third quarter of fiscal 2015. |
• | Comparable sales for the third quarter of fiscal 2016 decreased 3 percent, including an estimated negative impact from the Fishkill distribution center fire of approximately 2 percentage points, compared with a 2 percent decrease for the third quarter of fiscal 2015. |
• | Operating margin for the third quarter of fiscal 2016 was 10.2 percent compared with 10.7 percent for the third quarter of fiscal 2015. Operating margin is defined as operating income as a percentage of net sales. |
• | Net income for the third quarter of fiscal 2016 was $204 million compared with $248 million for the third quarter of fiscal 2015, and diluted earnings per share was $0.51 for the third quarter of fiscal 2016 compared with $0.61 for the third quarter of fiscal 2015. Diluted earnings per share for the third quarter of fiscal 2016 included about $0.09 impact of restructuring costs incurred in the third quarter of fiscal 2016. |
• | During the first three quarters of fiscal 2016, we distributed $275 million to shareholders through dividends. |
13 Weeks Ended | 39 Weeks Ended | ||||||||||
October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | ||||||||
Gap Global | (8 | )% | (4 | )% | (5 | )% | (7 | )% | |||
Old Navy Global | 3 | % | 4 | % | (1 | )% | 3 | % | |||
Banana Republic Global | (8 | )% | (12 | )% | (9 | )% | (8 | )% | |||
The Gap, Inc. | (3 | )% | (2 | )% | (3 | )% | (3 | )% |
13 Weeks Ended | 39 Weeks Ended | |||||||||||||
October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | |||||||||||
Net sales per average square foot (1) | $ | 81 | $ | 82 | 240 | $ | 246 |
(1) | Excludes net sales associated with our online and franchise businesses. |
January 30, 2016 | 39 Weeks Ended October 29, 2016 | October 29, 2016 | ||||||||||||
Number of Store Locations | Number of Stores Opened | Number of Stores Closed | Number of Store Locations | Square Footage (in millions) | ||||||||||
Gap North America | 866 | 11 | 19 | 858 | 9.0 | |||||||||
Gap Asia | 305 | 18 | 8 | 315 | 3.0 | |||||||||
Gap Europe | 175 | 1 | 10 | 166 | 1.4 | |||||||||
Old Navy North America | 1,030 | 19 | 10 | 1,039 | 17.4 | |||||||||
Old Navy Asia | 65 | 5 | 10 | 60 | 0.9 | |||||||||
Banana Republic North America | 612 | 7 | 7 | 612 | 5.1 | |||||||||
Banana Republic Asia | 51 | — | 2 | 49 | 0.2 | |||||||||
Banana Republic Europe | 10 | — | — | 10 | 0.1 | |||||||||
Athleta North America | 120 | 10 | — | 130 | 0.5 | |||||||||
Intermix North America | 41 | 2 | 1 | 42 | 0.1 | |||||||||
Company-operated stores total | 3,275 | 73 | 67 | 3,281 | 37.7 | |||||||||
Franchise | 446 | 52 | 37 | 461 | N/A | |||||||||
Total | 3,721 | 125 | 104 | 3,742 | 37.7 | |||||||||
Decrease over prior year | (1.4 | )% | (2.3 | )% | ||||||||||
January 31, 2015 | 39 Weeks Ended October 31, 2015 | October 31, 2015 | ||||||||||||
Number of Store Locations | Number of Stores Opened | Number of Stores Closed | Number of Store Locations | Square Footage (in millions) | ||||||||||
Gap North America | 960 | 25 | 46 | 939 | 9.8 | |||||||||
Gap Asia | 266 | 34 | 1 | 299 | 2.9 | |||||||||
Gap Europe | 189 | 5 | 10 | 184 | 1.6 | |||||||||
Old Navy North America | 1,013 | 27 | 13 | 1,027 | 17.4 | |||||||||
Old Navy Asia | 43 | 14 | — | 57 | 0.8 | |||||||||
Banana Republic North America | 610 | 18 | 10 | 618 | 5.2 | |||||||||
Banana Republic Asia | 44 | 6 | — | 50 | 0.2 | |||||||||
Banana Republic Europe | 11 | — | — | 11 | 0.1 | |||||||||
Athleta North America | 101 | 17 | — | 118 | 0.5 | |||||||||
Intermix North America | 42 | 2 | 1 | 43 | 0.1 | |||||||||
Piperlime North America | 1 | — | 1 | — | — | |||||||||
Company-operated stores total | 3,280 | 148 | 82 | 3,346 | 38.6 | |||||||||
Franchise | 429 | 42 | 23 | 448 | N/A | |||||||||
Total | 3,709 | 190 | 105 | 3,794 | 38.6 | |||||||||
Increase over prior year | 3.1 | % | 1.6 | % |
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||
($ in millions) | October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | |||||||||||
Cost of goods sold and occupancy expenses | $ | 2,305 | $ | 2,417 | $ | 6,948 | $ | 7,132 | |||||||
Gross profit | $ | 1,493 | $ | 1,440 | $ | 4,139 | $ | 4,280 | |||||||
Cost of goods sold and occupancy expenses as a percentage of net sales | 60.7 | % | 62.7 | % | 62.7 | % | 62.5 | % | |||||||
Gross margin | 39.3 | % | 37.3 | % | 37.3 | % | 37.5 | % |
• | Cost of goods sold decreased 2.2 percent as a percentage of net sales in the third quarter of fiscal 2016 compared with the third quarter of fiscal 2015, primarily driven by improved product acceptance resulting in improved margins at Old Navy. |
• | Occupancy expenses increased 0.2 percentage points in the third quarter of fiscal 2016 compared with the third quarter of fiscal 2015, primarily driven by the decrease in net sales without a corresponding decrease in occupancy expenses. |
• | Cost of goods sold decreased 0.3 percent as a percentage of net sales during the first three quarters of fiscal 2016 compared with the first three quarters of fiscal 2015, primarily driven by improved product acceptance resulting in improved margins at Old Navy. |
• | Occupancy expenses increased 0.5 percentage points during the first three quarters of fiscal 2016 compared with the first three quarters of fiscal 2015, primarily driven by the decrease in net sales without a corresponding decrease in occupancy expenses. |
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||
($ in millions) | October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | |||||||||||
Operating expenses | $ | 1,104 | $ | 1,026 | $ | 3,249 | $ | 3,111 | |||||||
Operating expenses as a percentage of net sales | 29.1 | % | 26.6 | % | 29.3 | % | 27.3 | % | |||||||
Operating margin | 10.2 | % | 10.7 | % | 8.0 | % | 10.2 | % |
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||
($ in millions) | October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | |||||||||||
Interest expense | $ | 20 | $ | 19 | $ | 57 | $ | 41 |
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||
($ in millions) | October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | |||||||||||
Income taxes | $ | 168 | $ | 148 | $ | 383 | $ | 425 | |||||||
Effective tax rate | 45.2 | % | 37.4 | % | 45.6 | % | 37.6 | % |
• | an increase of $146 million related to non-cash and other items primarily due to the reclassification of gain related to our derivative financial instruments in the first three quarters of fiscal 2015 and an increase in store asset impairment in the first three quarters of fiscal 2016 compared with the first three quarters of fiscal 2015; |
• | an increase of $145 million related to accounts payable primarily due to the timing of merchandise payments; and |
• | an increase of $102 million related to merchandise inventory primarily due to the volume and timing of receipts; partially offset by |
• | a decrease of $250 million in net income; and |
• | a decrease of $82 million related to other current assets and other long-term assets in part due to the insurance claim receivable from the fire of the company-owned distribution center in Fishkill, New York on August 29, 2016. |
• | no repurchases of common stock in the first three quarters of fiscal 2016 compared with $822 million cash outflows related to repurchases of common stock in the first three quarters of fiscal 2015; partially offset by |
• | $400 million proceeds from the issuance of short-term debt in fiscal 2015. |
39 Weeks Ended | |||||||
($ in millions) | October 29, 2016 | October 31, 2015 | |||||
Net cash provided by operating activities | $ | 800 | $ | 734 | |||
Less: Purchases of property and equipment | (383 | ) | (505 | ) | |||
Free cash flow | $ | 417 | $ | 229 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. | Controls and Procedures. |
Item 1. | Legal Proceedings. |
Item 1A. | Risk Factors. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Total Number of Shares Purchased | Average Price Paid Per Share Including Commissions | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or approximate dollar amount) of Shares that May Yet be Purchased Under the Plans or Programs (1) | ||||||||||
Month #1 (July 31-August 27) | — | $ | — | — | $ | 1,000 | million | ||||||
Month #2 (August 28 - October 1) | — | $ | — | — | $ | 1,000 | million | ||||||
Month #3 (October 2 - October 29) | — | $ | — | — | $ | 1,000 | million | ||||||
Total | — | $ | — | — |
(1) | On February 26, 2015, we announced that the Board of Directors approved a $1 billion share repurchase authorization. On February 25, 2016, we announced that the Board of Directors approved a new $1 billion share repurchase authorization. The February 2015 repurchase program, which had $302 million remaining, was superseded and replaced by the February 2016 repurchase program, which has no expiration date. |
Item 6. | Exhibits. |
10.1 | Letter Amendment No. 1 to the Amended and Restated Revolving Credit Agreement dated August 31, 2016, filed as Exhibit 10.2 to Registrant's Form 10-Q for the quarter ended July 30, 2016. | |
31.1 | Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer of The Gap, Inc. (Section 302 of the Sarbanes-Oxley Act of 2002). (1) | |
31.2 | Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer of The Gap, Inc. (Section 302 of the Sarbanes-Oxley Act of 2002). (1) | |
32.1 | Certification of the Chief Executive Officer of The Gap, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (2) | |
32.2 | Certification of the Chief Financial Officer of The Gap, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (2) | |
101 | The following materials from The Gap, Inc.’s Quarterly Report on Form 10-Q for the quarter ended October 29, 2016, formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Income, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements. (1) |
(1) | Filed herewith. |
(2) | Furnished herewith. |
THE GAP, INC. | |||
Date: | December 5, 2016 | By | /s/ Arthur Peck |
Arthur Peck | |||
Chief Executive Officer | |||
Date: | December 5, 2016 | By | /s/ Sabrina L. Simmons |
Sabrina L. Simmons | |||
Executive Vice President and Chief Financial Officer |
10.1 | Letter Amendment No. 1 to the Amended and Restated Revolving Credit Agreement dated August 31, 2016, filed as Exhibit 10.2 to Registrant's Form 10-Q for the quarter ended July 30, 2016. | |
31.1 | Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer of The Gap, Inc. (Section 302 of the Sarbanes-Oxley Act of 2002). (1) | |
31.2 | Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer of The Gap, Inc. (Section 302 of the Sarbanes-Oxley Act of 2002). (1) | |
32.1 | Certification of the Chief Executive Officer of The Gap, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (2) | |
32.2 | Certification of the Chief Financial Officer of The Gap, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (2) | |
101 | The following materials from The Gap, Inc.’s Quarterly Report on Form 10-Q for the quarter ended October 29, 2016, formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Income, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements. (1) |
(1) | Filed herewith. |
(2) | Furnished herewith. |
1. | I have reviewed this quarterly report on Form 10-Q of The Gap, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors: |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | December 5, 2016 | |
/s/ Arthur Peck | ||
Arthur Peck | ||
Chief Executive Officer | ||
(Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of The Gap, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors: |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | December 5, 2016 | |
/s/ Sabrina L. Simmons | ||
Sabrina L. Simmons | ||
Executive Vice President and Chief Financial Officer | ||
(Principal Financial Officer) |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | December 5, 2016 | |
/s/ Arthur Peck | ||
Arthur Peck | ||
Chief Executive Officer | ||
(Principal Executive Officer) |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | December 5, 2016 | |
/s/ Sabrina L. Simmons | ||
Sabrina L. Simmons | ||
Executive Vice President and Chief Financial Officer | ||
(Principal Financial Officer) |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Oct. 29, 2016 |
Nov. 25, 2016 |
|
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 29, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | GPS | |
Entity Registrant Name | GAP INC | |
Entity Central Index Key | 0000039911 | |
Current Fiscal Year End Date | --01-28 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 398,881,367 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions |
Oct. 29, 2016 |
Jan. 30, 2016 |
Oct. 31, 2015 |
---|---|---|---|
Property and equipment, accumulated depreciation | $ 5,900 | $ 5,644 | $ 5,673 |
Common stock, par value (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.05 |
Common stock, shares authorized (in shares) | 2,300 | 2,300 | 2,300 |
Common stock, shares issued (in shares) | 399 | 397 | 404 |
Common stock, shares outstanding (in shares) | 399 | 397 | 404 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 29, 2016 |
Oct. 31, 2015 |
Oct. 29, 2016 |
Oct. 31, 2015 |
|
Net sales | $ 3,798 | $ 3,857 | $ 11,087 | $ 11,412 |
Cost of goods sold and occupancy expenses | 2,305 | 2,417 | 6,948 | 7,132 |
Gross profit | 1,493 | 1,440 | 4,139 | 4,280 |
Operating expenses | 1,104 | 1,026 | 3,249 | 3,111 |
Operating income | 389 | 414 | 890 | 1,169 |
Interest expense | 20 | 19 | 57 | 41 |
Interest income | (3) | (1) | (6) | (3) |
Income before income taxes | 372 | 396 | 839 | 1,131 |
Income taxes | 168 | 148 | 383 | 425 |
Net income | $ 204 | $ 248 | $ 456 | $ 706 |
Weighted-average number of shares - basic (in shares) | 399 | 406 | 398 | 415 |
Weighted-average number of shares - diluted (in shares) | 400 | 408 | 400 | 417 |
Earnings per share - basic (in dollars per share) | $ 0.51 | $ 0.61 | $ 1.15 | $ 1.70 |
Earnings per share - diluted (in dollars per share) | 0.51 | 0.61 | 1.14 | 1.69 |
Cash dividends declared and paid per share (in dollars per share) | $ 0.23 | $ 0.23 | $ 0.69 | $ 0.69 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 29, 2016 |
Oct. 31, 2015 |
Oct. 29, 2016 |
Oct. 31, 2015 |
|
Net income | $ 204 | $ 248 | $ 456 | $ 706 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation | (10) | (2) | (1) | (9) |
Change in fair value of derivative financial instruments, net of tax (tax benefit) of $4, $(4), $(5) and $9 | 39 | (4) | (57) | 22 |
Reclassification adjustment for (gains) or losses on derivative financial instruments, net of tax of $-, $(14), $(6) and $(31) | 0 | (33) | 1 | (73) |
Other comprehensive income (loss), net of tax | 29 | (39) | (57) | (60) |
Comprehensive income | $ 233 | $ 209 | $ 399 | $ 646 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 29, 2016 |
Oct. 31, 2015 |
Oct. 29, 2016 |
Oct. 31, 2015 |
|
Change in fair value of derivative financial instruments, tax (tax benefit) | $ 4 | $ (4) | $ (5) | $ 9 |
Reclassification adjustment for (gains) losses on derivative financial instruments, tax | $ 0 | $ (14) | $ (6) | $ (31) |
Basis of Presentation |
9 Months Ended |
---|---|
Oct. 29, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Condensed Consolidated Balance Sheets as of October 29, 2016 and October 31, 2015, the Condensed Consolidated Statements of Income and the Condensed Consolidated Statements of Comprehensive Income for the thirteen and thirty-nine weeks ended October 29, 2016 and October 31, 2015, and the Condensed Consolidated Statements of Cash Flows for the thirty-nine weeks ended October 29, 2016 and October 31, 2015 have been prepared by The Gap, Inc. (the “Company,” “we,” and “our”). In the opinion of management, such statements include all adjustments (which include normal recurring adjustments) considered necessary to present fairly our financial position, results of operations, and cash flows as of October 29, 2016 and October 31, 2015 and for all periods presented. The Condensed Consolidated Balance Sheet as of January 30, 2016 has been derived from our audited financial statements. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and disclosures normally included in the notes to the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted from these interim financial statements, although the Company believes that the disclosures made are adequate to make the information not misleading. We suggest that you read these Condensed Consolidated Financial Statements in conjunction with the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2016. The results of operations for the thirteen and thirty-nine weeks ended October 29, 2016 are not necessarily indicative of the operating results that may be expected for the 52-week period ending January 28, 2017. |
Recent Accounting Pronouncements |
9 Months Ended |
---|---|
Oct. 29, 2016 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") No. 2014-09, Revenue from Contracts with Customers, to clarify the principles of recognizing revenue and create common revenue recognition guidance between U.S. GAAP and International Financial Reporting Standards. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers, Deferral of the Effective Date, which defers the effective date of the new revenue recognition standard by one year. As a result, the ASU No. 2014-09 is effective retrospectively for fiscal years and interim periods within those years beginning after December 15, 2017. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations, which is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, which clarifies the identification of performance obligations and the licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-11, Revenue Recognition and Derivatives and Hedging: Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting, which rescinds SEC paragraphs pursuant to SEC staff announcements. These rescissions include changes to topics pertaining to accounting for shipping and handling fees and costs and accounting for consideration given by a vendor to a customer. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients, which provides clarifying guidance in certain narrow areas and adds some practical expedients. The effective dates for these ASUs are the same as the effective date for ASU No. 2014-09. We are currently assessing the potential impact of these ASUs on our Condensed Consolidated Financial Statements. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes, which changes how deferred taxes are classified on the balance sheet. The ASU eliminates the requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2016. Early adoption is permitted under this ASU. We adopted ASU No. 2015-17 prospectively effective January 30, 2016, which resulted in a reclassification of our net current deferred tax assets to the net noncurrent deferred tax assets in our Consolidated Balance Sheet. In accordance with the provisions of the ASU, prior periods were not retrospectively adjusted. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance is intended to improve the recognition and measurement of financial instruments. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2017. We do not expect the adoption of this ASU to have a material impact on our Condensed Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, Leases. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases (with the exception of short-term leases) at the commencement date. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2018. We are currently assessing the impact of this ASU on our Condensed Consolidated Financial Statements, but expect that it will result in a significant increase in our long-term assets and liabilities. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The amendments are intended to improve the accounting for employee share-based payments and affect all organizations that issue share-based payment awards to their employees. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2016. We are currently assessing the potential impact of this ASU on our Condensed Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. The amendments require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2019. We do not expect the adoption of this ASU to have a material impact on our Condensed Consolidated Financial Statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments. The amendments provide guidance for eight specific cash flow issues and are intended to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective retrospectively for fiscal years and interim periods within those years beginning after December 15, 2017. We will adopt the presentation and disclosure provisions of this ASU in the first quarter of fiscal 2018. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other than Inventory. The amendments remove the prohibition against the recognition of current and deferred income tax effects of intra-entity transfers of assets other than inventory until the asset has been sold to an outside party. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2017. We do not expect the adoption of this ASU to have a material impact on our Condensed Consolidated Financial Statements. In October 2016, the FASB issued ASU No. 2016-17, Consolidation: Interests Held through Related Parties That Are Under Common Control. The amendments change how a reporting entity that is the single decision maker of a variable interest entity should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that variable interest entity. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2016. We do not expect the adoption of this ASU to have a material impact on our Condensed Consolidated Financial Statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash. The amendments address diversity in practice that exists in the classification and presentation of changes in restricted cash and require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The ASU is effective retrospectively for fiscal years and interim periods within those years beginning after December 15, 2017. We will adopt the presentation and disclosure provisions of this ASU in the first quarter of fiscal 2018. |
Store Closing and Other Operating Charges Restructuring (Notes) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | Store Closing and Other Operating Charges In May 2016, the Company announced measures to better align talent and financial resources against its most important priorities; these measures include (i) focusing each brand on geographies with the greatest potential and (ii) streamlining the Company’s operating model. The measures will result in the closure of its fleet of 53 Old Navy stores in Japan, the closure of select Banana Republic stores, primarily internationally, and the creation of a more efficient global brand structure. Including the Old Navy closures in Japan, the Company expects to close about 75 stores in total related to these measures in fiscal 2016. As of October 29, 2016, the Company has closed 10 stores related to these measures. In connection with the decision to close stores and streamline the Company's operations, the Company incurred $29 million and $179 million in restructuring costs, on a pre-tax basis, during the thirteen and thirty-nine weeks ended October 29, 2016, respectively. The summary of the costs incurred during the thirteen weeks ended October 29, 2016 and cumulative amount incurred as of October 29, 2016, as well as the Company’s current estimates of the pre-tax amount expected to be incurred during the remainder of fiscal 2016, are as follows:
In addition to the total pre-tax amount estimated above, the Company also expects to incur incremental tax expense related to the restructuring costs and resulting valuation allowances on certain foreign deferred tax assets. The Company’s estimates of future charges associated with the store closures and streamlining of its operating model could change as the Company’s plans evolve and become finalized. The actual amounts will also depend on the timing of closures and negotiations on lease termination fees during the remainder of fiscal 2016. The following table summarizes activities related to certain restructuring costs that will be settled with cash payments and the related liability balances as of October 29, 2016:
We expect that the majority of the liability balance related to the lease termination fees and lease losses will be settled with cash payments by the end of fiscal 2016 as the stores are closed. The remaining liability balances are expected to settle with cash payments through fiscal 2017. |
Debt and Credit Facilities |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and Credit Facilities | Debt and Credit Facilities Long-term debt consists of the following:
As of October 29, 2016, January 30, 2016, and October 31, 2015, the estimated fair value of our $1.25 billion aggregate principal amount of 5.95 percent notes (the "Notes”) due April 2021 was $1.34 billion, $1.29 billion, and $1.33 billion, respectively, and was based on the quoted market price of the Notes (level 1 inputs) as of the last business day of the respective fiscal quarter. The aggregate principal amount of the Notes is recorded in long-term debt in the Condensed Consolidated Balance Sheets, net of the unamortized discount. As of October 29, 2016, January 30, 2016, and October 31, 2015, the carrying amount of our 15 billion Japanese yen, four-year, unsecured term loan ("Japan Term Loan") approximated its fair value, as the interest rate varies depending on quoted market rates (level 1 inputs). Repayments of 2.5 billion Japanese yen ($24 million as of October 29, 2016) are payable on January 15 of each year, and commenced on January 15, 2015, with a final repayment of 7.5 billion Japanese yen ($72 million as of October 29, 2016) due on January 15, 2018. Interest is payable at least quarterly based on an interest rate equal to the Tokyo Interbank Offered Rate plus a fixed margin. In October 2015, we entered into a $400 million unsecured term loan (the “Term Loan”). The Term Loan was originally scheduled to mature, and was payable in full, on October 15, 2016, but had an option to be extended until October 15, 2017. In August 2016, the Company exercised the option to extend the Term Loan. As of October 29, 2016, the carrying amount of our $400 million Term Loan approximated its fair value due to the short-term nature of the loan. Interest is payable at least quarterly based on an interest rate equal to the London Interbank Offered Rate plus a fixed margin. The Term Loan is included in current maturities of debt in the Condensed Consolidated Balance Sheet. We have a $500 million, five-year, unsecured revolving credit facility (the “Facility”), which is scheduled to expire in May 2020. There were no borrowings and no material outstanding standby letters of credit under the Facility as of October 29, 2016. We maintain multiple agreements with third parties that make unsecured revolving credit facilities available for our operations in foreign locations (the “Foreign Facilities”). These Foreign Facilities are uncommitted and are generally available for borrowings, overdraft borrowings, and the issuance of bank guarantees. The total capacity of the Foreign Facilities was $46 million as of October 29, 2016. As of October 29, 2016, there were no borrowings under the Foreign Facilities. There were $12 million in bank guarantees issued and outstanding primarily related to store leases under the Foreign Facilities as of October 29, 2016. We have bilateral unsecured standby letter of credit agreements that are uncommitted and do not have expiration dates. As of October 29, 2016, we had $18 million in standby letters of credit issued under these agreements. |
Fair Value Measurements |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements There were no purchases, sales, issuances, or settlements related to recurring level 3 measurements during the thirteen and thirty-nine weeks ended October 29, 2016 or October 31, 2015. There were no transfers of financial assets or liabilities into or out of level 1 and level 2 during the thirteen and thirty-nine weeks ended October 29, 2016 or October 31, 2015. Financial Assets and Liabilities Financial assets and liabilities measured at fair value on a recurring basis and cash equivalents are as follows:
We have highly liquid investments classified as cash equivalents, which are placed primarily in time deposits, money market funds, and commercial paper. These investments are classified as held-to-maturity based on our positive intent and ability to hold the securities to maturity. We value these investments at their original purchase prices plus interest that has accrued at the stated rate. Derivative financial instruments primarily include foreign exchange forward contracts. The currencies hedged against changes in the U.S. dollar are Japanese yen, Canadian dollars, British pounds, Euro, Mexican pesos, Hong Kong dollars, Chinese yuan, and Taiwan dollars. The fair value of the Company’s derivative financial instruments is determined using pricing models based on current market rates. Derivative financial instruments in an asset position are recorded in other current assets or other long-term assets in the Condensed Consolidated Balance Sheets. Derivative financial instruments in a liability position are recorded in accrued expenses and other current liabilities or lease incentives and other long-term liabilities in the Condensed Consolidated Balance Sheets. We maintain the Gap Inc. Deferred Compensation Plan (“DCP”), which allows eligible employees and non-employee directors to defer compensation up to a maximum amount. Plan investments are recorded at market value and are designated for the DCP. The fair value of the Company’s DCP assets is determined based on quoted market prices, and the assets are recorded in other long-term assets in the Condensed Consolidated Balance Sheets. Nonfinancial Assets We review the carrying amount of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The fair value of the long-lived assets is determined using level 3 inputs and based on discounted future cash flows of the asset or asset group using a discount rate commensurate with the risk. The asset group is defined as the lowest level for which identifiable cash flows are available and largely independent of the cash flows of other groups of assets, which for our retail stores is primarily at the store level. We also review the carrying amount of goodwill and other indefinite-lived intangible assets for impairment annually and whenever events or changes in circumstances indicate that it is more likely than not that the carrying amount may not be recoverable. We recorded a charge for the impairment of long-lived assets of $33 million for the thirteen weeks ended October 29, 2016, which reduced the then carrying amount of the applicable long-lived assets of $34 million to their fair value of $1 million. The impairment charges were recorded in operating expenses in the Condensed Consolidated Statement of Income. In May 2016, the Company announced measures that will result in the closure of its fleet of 53 Old Navy stores in Japan and select Banana Republic stores, primarily internationally. During the thirty-nine weeks ended October 29, 2016, we recorded a charge for the impairment of long-lived assets of $54 million related to the announced store closures, and an additional $35 million for long-lived assets that were unrelated to the announced measures. The impairment charges were recorded in operating expenses in the Condensed Consolidated Statement of Income and reduced the then carrying amount of the applicable long-lived assets of $102 million to their fair value of $13 million. There were no impairment charges recorded for goodwill or other indefinite-lived intangible assets for the thirteen and thirty-nine weeks ended October 29, 2016. We recorded a charge for the impairment of long-lived assets of $6 million for the thirteen weeks ended October 31, 2015, which reduced the then carrying amount of the applicable long-lived assets of $6 million to their fair value of zero. The impairment charges were recorded in operating expenses in the Condensed Consolidated Statement of Income. In June 2015, the Company announced a series of strategic actions to position Gap brand for improved business performance in the future, including its decision to close about 175 Gap brand specialty stores in North America and a limited number of international stores. As a result of the announced strategic actions, we reviewed the global Gap brand specialty fleet for impairment and recorded a charge for the impairment of long-lived assets of $38 million for the thirty-nine weeks ended October 31, 2015, primarily related to Gap brand, and an additional $5 million for long-lived assets that were unrelated to the strategic actions. We also recorded an impairment charge of $5 million related to an indefinite-lived intangible asset. The impairment charges were recorded in operating expenses in the Condensed Consolidated Statement of Income and reduced the then carrying amount of the applicable long-lived assets of $49 million to their fair value of $6 million and the applicable indefinite-lived intangible asset of $6 million to its fair value of $1 million during the thirty-nine weeks ended October 31, 2015. There were no impairment charges recorded for goodwill for the thirteen and thirty-nine weeks ended October 31, 2015. |
Derivative Financial Instruments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments We operate in foreign countries, which exposes us to market risk associated with foreign currency exchange rate fluctuations. We use derivative financial instruments to manage our exposure to foreign currency exchange rate risk and do not enter into derivative financial contracts for trading purposes. Consistent with our risk management guidelines, we hedge a portion of our transactions related to merchandise purchases for foreign operations and certain intercompany transactions using foreign exchange forward contracts. These contracts are entered into with large, reputable financial institutions that are monitored for counterparty risk. The currencies hedged against changes in the U.S. dollar are Japanese yen, Canadian dollars, British pounds, Euro, Mexican pesos, Hong Kong dollars, Chinese yuan, and Taiwan dollars. Cash flows from derivative financial instruments are classified as cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows. Cash Flow Hedges We designate the following foreign exchange forward contracts as cash flow hedges: (1) forward contracts used to hedge forecasted merchandise purchases and related costs denominated in U.S. dollars made by our international subsidiaries whose functional currencies are their local currencies; (2) forward contracts used to hedge forecasted intercompany royalty payments denominated in foreign currencies received by entities whose functional currencies are U.S. dollars; and (3) forward contracts used to hedge forecasted intercompany revenue transactions related to merchandise sold from our regional purchasing entities, whose functional currency is the U.S. dollar, to certain international subsidiaries in their local currencies. The foreign exchange forward contracts entered into to hedge forecasted merchandise purchases and related costs, intercompany royalty payments, and intercompany revenue transactions generally have terms of up to 24 months. The effective portion of the gain or loss on the derivative financial instruments is reported as a component of other comprehensive income and is recognized in income in the period in which the underlying transaction impacts the income statement. There were no material amounts recorded in the Condensed Consolidated Statements of Income for the thirteen and thirty-nine weeks ended October 29, 2016 or October 31, 2015 as a result of our analysis of hedge ineffectiveness or hedge components excluded from the assessment of effectiveness. There were no material amounts reclassified into earnings during the thirteen and thirty-nine weeks ended October 29, 2016 or October 31, 2015 as a result of the discontinuance of cash flow hedges because the forecasted transactions were no longer probable. Net Investment Hedges We also use foreign exchange forward contracts to hedge the net assets of international subsidiaries to offset the foreign currency translation and economic exposures related to our investment in the subsidiaries. There were no material amounts recorded in the Condensed Consolidated Statements of Income for the thirteen and thirty-nine weeks ended October 29, 2016 or October 31, 2015 as a result of our analysis of hedge ineffectiveness or hedge components excluded from the assessment of effectiveness. Other Derivatives Not Designated as Hedging Instruments We enter into foreign exchange forward contracts to hedge our market risk exposure associated with foreign currency exchange rate fluctuations for certain intercompany balances denominated in currencies other than the functional currency of the entity with the intercompany balance. The gain or loss on the derivative financial instruments that represent economic hedges, as well as the remeasurement impact of the underlying intercompany balances, is recorded in operating expenses in the Condensed Consolidated Statements of Income in the same period and generally offset. Outstanding Notional Amounts We had foreign exchange forward contracts outstanding in the following notional amounts:
Quantitative Disclosures about Derivative Financial Instruments The fair values of foreign exchange forward contracts are as follows:
The majority of the unrealized gains and losses from designated cash flow hedges as of October 29, 2016 will be recognized in income within the next 12 months at the then-current values, which may differ from the fair values as of October 29, 2016 shown above. Our foreign exchange forward contracts are subject to master netting arrangements with each of our counterparties and such arrangements are enforceable in the event of default or early termination of the contract. We do not elect to offset the fair values of our derivative financial instruments in the Condensed Consolidated Balance Sheets, and as such, the fair values shown above represent gross amounts. The amounts subject to enforceable master netting arrangements are $9 million, $2 million, and $5 million as of October 29, 2016, January 30, 2016, and October 31, 2015, respectively. If we did elect to offset, the net amounts of our derivative financial instruments in an asset position would be $53 million, $91 million, and $79 million and the net amounts of the derivative financial instruments in a liability position would be $40 million, $1 million, and $3 million as of October 29, 2016, January 30, 2016 and October 31, 2015, respectively. See Note 5 of Notes to Condensed Consolidated Financial Statements for disclosures on the fair value measurements of our derivative financial instruments. The effective portion of gains and losses on foreign exchange forward contracts in cash flow hedging and net investment hedging relationships recorded in other comprehensive income and the Condensed Consolidated Statements of Income, on a pre-tax basis, are as follows:
For the thirteen and thirty-nine weeks ended October 29, 2016 and October 31, 2015, there were no amounts of gain or loss reclassified from accumulated other comprehensive income into net income for derivative financial instruments in net investment hedging relationships, as we did not sell or liquidate (or substantially liquidate) any of our hedged subsidiaries during the periods. Gains and losses on foreign exchange forward contracts not designated as hedging instruments recorded in the Condensed Consolidated Statements of Income, on a pre-tax basis, are as follows:
|
Share Repurchases |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Share Repurchase Activity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Repurchases | Share Repurchases Share repurchase activity is as follows:
In October 2014, we announced that the Board of Directors approved a $500 million share repurchase authorization, all of which was completed by the end of May 2015. In February 2015, we announced that the Board of Directors approved a $1.0 billion share repurchase authorization (the "February 2015 repurchase program"). In February 2016, we announced that the Board of Directors approved a new $1.0 billion share repurchase authorization (the "February 2016 repurchase program"). The February 2015 repurchase program, which had $302 million remaining, was superseded and replaced by the February 2016 repurchase program. The February 2016 repurchase program still had $1.0 billion remaining as of October 29, 2016, as there were no shares repurchased during the thirteen and thirty-nine weeks ended October 29, 2016. All of the share repurchases were paid for as of January 30, 2016 and October 31, 2015. All common stock repurchased is immediately retired. |
Share-Based Compensation |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation Share-based compensation expense recognized in the Condensed Consolidated Statements of Income, primarily in operating expenses, is as follows:
|
Accumulated Other Comprehensive Income |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Changes in accumulated other comprehensive income by component, net of tax, are as follows:
See Note 6 of Notes to Condensed Consolidated Financial Statements for additional disclosures about reclassifications out of accumulated other comprehensive income and their corresponding effects on the respective line items in the Condensed Consolidated Statements of Income. |
Income Taxes |
9 Months Ended |
---|---|
Oct. 29, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company conducts business globally, and as a result, files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world, including such major jurisdictions as the United States, Canada, France, the United Kingdom, China, Hong Kong, Japan, and India. We are no longer subject to U.S. federal income tax examinations for fiscal years before 2009, and with few exceptions, we are also no longer subject to U.S. state, local, or non-U.S. income tax examinations for fiscal years before 2008. The Company engages in continual discussions with taxing authorities regarding tax matters in the various U.S. and foreign jurisdictions in the normal course of business. As of October 29, 2016, it is reasonably possible that we will recognize a decrease in gross unrecognized tax benefits within the next 12 months of up to $2 million, primarily due to the closing of audits. If we do recognize such a decrease, the net impact on the Condensed Consolidated Statement of Income would not be material. The effective income tax rate was 45.2 percent for the thirteen weeks ended October 29, 2016, compared with 37.4 percent for the thirteen weeks ended October 31, 2015. The effective income tax rate was 45.6 percent for the thirty-nine weeks ended October 29, 2016, compared with 37.6 percent for the thirty-nine weeks ended October 31, 2015. The increase in the effective tax rates was primarily due to the impact of restructuring costs incurred for foreign subsidiaries during the thirteen and thirty-nine weeks ended October 29, 2016 and resulting valuation allowances on certain foreign deferred tax assets. |
Earnings Per Share |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Weighted-average number of shares used for earnings per share is as follows:
The above computations of weighted-average number of shares – diluted exclude 8 million and 4 million shares related to stock options and other stock awards for the thirteen weeks ended October 29, 2016 and October 31, 2015, respectively, and 7 million and 3 million shares related to stock options and other stock awards for the thirty-nine weeks ended October 29, 2016 and October 31, 2015, respectively, as their inclusion would have an anti-dilutive effect on earnings per share. |
Commitments and Contingencies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 | |||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies We are a party to a variety of contractual agreements under which we may be obligated to indemnify the other party for certain matters. These contracts primarily relate to our commercial contracts, operating leases, trademarks, intellectual property, financial agreements, and various other agreements. Under these contracts, we may provide certain routine indemnifications relating to representations and warranties (e.g., ownership of assets, environmental or tax indemnifications) or personal injury matters. The terms of these indemnifications range in duration and may not be explicitly defined. Generally, the maximum obligation under such indemnifications is not explicitly stated, and as a result, the overall amount of these obligations cannot be reasonably estimated. Historically, we have not made significant payments for these indemnifications. We believe that if we were to incur a loss in any of these matters, the loss would not have a material effect on our Condensed Consolidated Financial Statements taken as a whole. As a multinational company, we are subject to various proceedings, lawsuits, disputes, and claims (“Actions”) arising in the ordinary course of our business. Many of these Actions raise complex factual and legal issues and are subject to uncertainties. As of October 29, 2016, Actions filed against us included commercial, intellectual property, customer, employment, and data privacy claims, including class action lawsuits. The plaintiffs in some Actions seek unspecified damages or injunctive relief, or both. Actions are in various procedural stages and some are covered in part by insurance. As of October 29, 2016, January 30, 2016, and October 31, 2015, we recorded a liability for an estimated loss if the outcome of an Action is expected to result in a loss that is considered probable and reasonably estimable. The liability recorded as of October 29, 2016, January 30, 2016, and October 31, 2015 was not material for any individual Action or in total. Subsequent to October 29, 2016 and through the filing date of this Quarterly Report on Form 10-Q, no information has become available that indicates a change is required that would be material to our Condensed Consolidated Financial Statements taken as a whole. We cannot predict with assurance the outcome of Actions brought against us. Accordingly, developments, settlements, or resolutions may occur and impact income in the quarter of such development, settlement, or resolution. However, we do not believe that the outcome of any current Action would have a material effect on our Condensed Consolidated Financial Statements taken as a whole. Fire at the Fishkill Distribution Center On August 29, 2016, a fire occurred in one of the buildings at a Company-owned distribution center campus in Fishkill, New York. The impacted building primarily held Gap and Banana Republic products for distribution to stores and fulfilled online orders for Gap and Old Navy in the Northeast region of the United States. The other building, which processes Old Navy products, has returned to normal operation. The Company maintains property and business interruption insurance coverage. Certain incremental costs incurred related to the fire and related insurance recovery for the thirteen weeks ended October 29, 2016 are as follows:
Based on the provisions of the Company's insurance policies, the Company has determined that recovery of certain fire-related costs incurred as of October 29, 2016 is probable and recorded $117 million of insurance recoveries. During the thirteen weeks ended October 29, 2016, the Company received $73 million of insurance proceeds, representing an advance of funds. As a result, the insurance receivable balance was $44 million as of October 29, 2016 and was recorded in other current assets in the Condensed Consolidated Balance Sheet. In November 2016, the Company received an additional advance of about $25 million. |
Segment Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Gap, Inc. is a global retailer that sells apparel, accessories, and personal care products under the Gap, Old Navy, Banana Republic, Athleta, and Intermix brands. We identify our operating segments according to how our business activities are managed and evaluated. As of October 29, 2016, our operating segments included Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Intermix. The operating results for the thirty-nine weeks ended October 31, 2015 also include Piperlime, which was discontinued as of the first quarter of fiscal 2015. We have determined that each of our operating segments share similar economic and other qualitative characteristics, and therefore the results of our operating segments are aggregated into one reportable segment as of October 29, 2016. Net sales by brand and region are as follows:
__________
Net sales by region are allocated based on the location of the store where the customer paid for and received the merchandise or the distribution center or store from which the products were shipped. |
Store Closing and Other Operating Charges Restructuring (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs [Table Text Block] | The summary of the costs incurred during the thirteen weeks ended October 29, 2016 and cumulative amount incurred as of October 29, 2016, as well as the Company’s current estimates of the pre-tax amount expected to be incurred during the remainder of fiscal 2016, are as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes activities related to certain restructuring costs that will be settled with cash payments and the related liability balances as of October 29, 2016:
|
Debt and Credit Facilities Long Term Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long Term Debt | Long-term debt consists of the following:
|
Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets And Liabilities Measured At Fair Value On Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis and cash equivalents are as follows:
|
Derivative Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | Gains and losses on foreign exchange forward contracts not designated as hedging instruments recorded in the Condensed Consolidated Statements of Income, on a pre-tax basis, are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign Exchange Forward Contracts Outstanding | We had foreign exchange forward contracts outstanding in the following notional amounts:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Asset and Liability Derivative Financial Instruments | The fair values of foreign exchange forward contracts are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effects of Derivative Financial Instruments on OCI and Condensed Consolidated Statements of Income | The effective portion of gains and losses on foreign exchange forward contracts in cash flow hedging and net investment hedging relationships recorded in other comprehensive income and the Condensed Consolidated Statements of Income, on a pre-tax basis, are as follows:
|
Share Repurchases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Share Repurchase Activity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Repurchase Activity | Share repurchase activity is as follows:
|
Share-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation Expense | Share-based compensation expense recognized in the Condensed Consolidated Statements of Income, primarily in operating expenses, is as follows:
|
Accumulated Other Comprehensive Income (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income by Component | Changes in accumulated other comprehensive income by component, net of tax, are as follows:
|
Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-Average Number of Shares | Weighted-average number of shares used for earnings per share is as follows:
|
Commitments and Contingencies Commitments and Contigencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 | |||||||||||||||||||||||||||||||||||||||||
Nonrecurring Item [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Costs Related to Nonrecurring Event [Table Text Block] | The Company maintains property and business interruption insurance coverage. Certain incremental costs incurred related to the fire and related insurance recovery for the thirteen weeks ended October 29, 2016 are as follows:
|
Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales by Brand and Region | Net sales by brand and region are as follows:
__________
|
Store Closing and Other Operating Charges Restructuring - Additional Information (Details) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Oct. 29, 2016
USD ($)
|
Oct. 29, 2016
USD ($)
|
|
Restructuring [Abstract] | ||
Number of Old Navy Japan Stores Expected to Close Related to Restructuring | 53 | 53 |
Number of Total Stores Expected to Close Related to Restructuring | 75 | 75 |
Number of Total Stores Closed Related to Restructuring | 10 | 10 |
Restructuring Charges | $ 29 | $ 179 |
Debt and Credit Facilities Long Term Debt (Details) - USD ($) $ in Millions |
Oct. 29, 2016 |
Jan. 30, 2016 |
Oct. 31, 2015 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Notes | $ 1,248 | $ 1,248 | $ 1,248 |
Japan Term Loan | 96 | 83 | 104 |
Total long-term debt | 1,344 | 1,331 | 1,352 |
Less: Current portion | (24) | (21) | (21) |
Total long-term debt, less current portion | $ 1,320 | $ 1,310 | $ 1,331 |
Derivative Financial Instruments - Foreign Exchange Contracts Outstanding to Sell Various Currencies (Details) - USD ($) $ in Millions |
Oct. 29, 2016 |
Jan. 30, 2016 |
Oct. 31, 2015 |
---|---|---|---|
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 1,896 | $ 1,574 | $ 1,774 |
Derivatives in cash flow hedging relationships | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 1,201 | 1,220 | 1,349 |
Derivatives in net investment hedging relationships | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 31 | 30 | 31 |
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 664 | $ 324 | $ 394 |
Share Repurchase Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 29, 2016 |
Oct. 31, 2015 |
Oct. 29, 2016 |
Oct. 31, 2015 |
|
Disclosure Share Repurchase Activity [Abstract] | ||||
Number of shares repurchased | 0.0 | 6.2 | 0.0 | 21.8 |
Total cost | $ 0 | $ 200 | $ 0 | $ 807 |
Average per share cost including commissions (in dollars per share) | $ 0.00 | $ 32.17 | $ 0.00 | $ 36.93 |
Share Repurchases - Additional Information (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Oct. 29, 2016 |
Oct. 31, 2015 |
Oct. 29, 2016 |
Oct. 31, 2015 |
Feb. 25, 2016 |
Jan. 30, 2016 |
Feb. 26, 2015 |
Oct. 16, 2014 |
|
Disclosure Share Repurchases Additional Information [Abstract] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 1,000 | $ 1,000 | $ 500 | |||||
Share repurchases, remaining amount | $ 1,000 | $ 1,000 | $ 302 | |||||
Stock Repurchase Program Amount Not Paid | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||
Number of shares repurchased | 0.0 | 6.2 | 0.0 | 21.8 |
Share-Based Compensation Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 29, 2016 |
Oct. 31, 2015 |
Oct. 29, 2016 |
Oct. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 19 | $ 15 | $ 55 | $ 58 |
Less: Income tax benefit | (8) | (6) | (25) | (22) |
Share-based compensation expense, net of tax | 11 | 9 | 30 | 36 |
Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 14 | 12 | 43 | 46 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 4 | 2 | 9 | 8 |
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1 | $ 1 | $ 3 | $ 4 |
Income Taxes - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 29, 2016 |
Oct. 31, 2015 |
Oct. 29, 2016 |
Oct. 31, 2015 |
|
Income Tax Disclosure [Abstract] | ||||
Decrease In Gross Unrecognized Tax Benefits Within The Next 12 Months | $ 2 | $ 2 | ||
Benefit To Income Taxes If Decrease In Gross Unrecognized Tax Benefits Within 12 Months Are Recognized | $ 0 | |||
Effective Income Tax Rate Reconciliation, Percent | 45.20% | 37.40% | 45.60% | 37.60% |
Earnings Per Share - Weighted Average Number of Shares (Details) - shares shares in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 29, 2016 |
Oct. 31, 2015 |
Oct. 29, 2016 |
Oct. 31, 2015 |
|
Earnings Per Share [Abstract] | ||||
Weighted-average number of shares - basic (in shares) | 399 | 406 | 398 | 415 |
Common stock equivalents (in shares) | 1 | 2 | 2 | 2 |
Weighted-average number of shares - diluted (in shares) | 400 | 408 | 400 | 417 |
Earnings Per Share - Additional Information (Details) - shares shares in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 29, 2016 |
Oct. 31, 2015 |
Oct. 29, 2016 |
Oct. 31, 2015 |
|
Earnings Per Share [Abstract] | ||||
Shares excluded from the computations of weighted-average number of shares - diluted | 8 | 4 | 7 | 3 |
Commitments and Contingencies Commitments and Contingencies - Fire (Details) - Fire [Member] $ in Millions |
3 Months Ended |
---|---|
Oct. 29, 2016
USD ($)
| |
Commitments and Contingencies [Line Items] | |
Loss on inventory | $ 86 |
Loss on property, plant, and equipment | 12 |
Other fire-related costs | 19 |
Total fire-related costs | 117 |
Expected insurance recoveries | (117) |
Fire-related costs, net | $ 0 |
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Oct. 29, 2016 |
Jan. 30, 2016 |
Oct. 31, 2015 |
|
Commitments and Contingencies [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | $ 0 | $ 0 | $ 0 |
Fire [Member] | |||
Commitments and Contingencies [Line Items] | |||
Expected insurance recoveries | 117 | ||
Insurance Proceeds, Advance of Funds | 73 | ||
Insurance Settlements Receivable | $ 44 |
Commitments and Contingencies Commitments and Contigencies - Additional Details - Cash Proceeds after quarter-end (Details) - Fire [Member] - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended |
---|---|---|
Nov. 26, 2016 |
Oct. 29, 2016 |
|
Subsequent Event [Line Items] | ||
Insurance Proceeds, Advance of Funds | $ 73 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Insurance Proceeds, Advance of Funds | $ 25 |
Segment Information - Additional Information (Details) |
9 Months Ended |
---|---|
Oct. 29, 2016
Segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments (in segments) | 1 |
E G3)=M"VUCO0Q5NE]#='@Y<65KZ]MCZE=T
M]JJJ;U!+ P04 " ;;X5)F5R<(Q & "<)P $P 'AL+W1H96UE+W1H
M96UE,2YX;6SM6EMSVC@4?N^OT'AG]FT+QC:!MK03