Additional Financial Statement Information

Cash and Cash Equivalents

Cash and cash equivalents consist of the following:



($ in millions)	February 3, 2018		January 28, 2017
Cash (1)	$	1,256	$	1,086
Bank certificates of deposit and time deposits	490		416
Money market funds	37		256
Domestic commercial paper	—		25
Cash equivalents	527		697
Cash and cash equivalents	$	1,783	$	1,783

__________


(1)	Cash includes $72 million and $58 million of amounts in transit from banks for customer credit card and debit card transactions as of February 3, 2018 and January 28, 2017, respectively.

Other Current Assets

Other current assets consist of the following:



($ in millions)	February 3, 2018		January 28, 2017
Accounts receivable	$	282	$	335
Prepaid income taxes	237		89
Prepaid minimum rent and occupancy expenses	158		154
Derivative financial instruments	14		41
Other	97		83
Other current assets	$	788	$	702

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation and consist of the following:



($ in millions)	February 3, 2018			January 28, 2017
Leasehold improvements	$	3,140		$	3,099
Furniture and equipment	2,623			2,508
Software	1,703			1,600
Land, buildings, and building improvements	1,037			1,000
Construction-in-progress	264			222
Property and equipment, at cost	8,767			8,429
Less: Accumulated depreciation	(5,962		)	(5,813		)
Property and equipment, net of accumulated depreciation	$	2,805		$	2,616

Depreciation expense for property and equipment was $556 million, $590 million, and $588 million for fiscal 2017, 2016, and 2015, respectively.

Interest of $9 million, $9 million, and $8 million related to assets under construction was capitalized in fiscal 2017, 2016, and 2015, respectively.

We recorded a charge for the impairment of long-lived assets of $28 million, $107 million, and $54 million for fiscal 2017, 2016, and 2015, respectively, related to store assets which is recorded in operating expenses in the Consolidated Statements of Income.

Other Long-Term Assets

Other long-term assets consist of the following:



($ in millions)	February 3, 2018		January 28, 2017
Long-term income tax-related assets	$	233	$	282
Goodwill	109		109
Trade names	95		95
Other	179		193
Other long-term assets	$	616	$	679

In fiscal 2016, we recorded a charge for the impairment of goodwill related to the Intermix reporting unit of $71 million, which was recorded in operating expenses in the Consolidated Statement of Income. No goodwill impairment charges were recorded in fiscal 2017 or 2015. See Note 3 of Notes to Consolidated Financial Statements for additional disclosures on goodwill and other intangible assets.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:



($ in millions)	February 3, 2018		January 28, 2017
Accrued compensation and benefits	$	462	$	312
Unredeemed gift cards, gift certificates, and credit vouchers, net of breakage	247		256
Short-term deferred rent and tenant allowances	103		99
Accrued advertising	43		46
Other	415		400
Accrued expenses and other current liabilities	$	1,270	$	1,113

No other individual items accounted for greater than five percent of total current liabilities as of February 3, 2018 or January 28, 2017.

Lease Incentives and Other Long-Term Liabilities

Lease incentives and other long-term liabilities consist of the following:



($ in millions)	February 3, 2018		January 28, 2017
Long-term deferred rent and tenant allowances	$	749	$	748
Long-term income tax-related liabilities	152		32
Long-term asset retirement obligations	52		51
Other	182		174
Lease incentives and other long-term liabilities	$	1,135	$	1,005

The activity related to asset retirement obligations includes adjustments to the asset retirement obligation balance and fluctuations in foreign currency exchange rates.

Sales Return Allowance

A summary of activity in the sales return allowance account is as follows:



($ in millions)	February 3, 2018			January 28, 2017			January 30, 2016
Balance at beginning of fiscal year	$	30		$	27		$	29
Additions	955			861			865
Returns	(952		)	(858		)	(867		)
Balance at end of fiscal year	$	33		$	30		$	27

Sales return allowances are recorded in accrued expenses and other current liabilities in the Consolidated Balance Sheets.