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CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Millions, $ in Millions
3 Months Ended 9 Months Ended
Nov. 03, 2018
Oct. 28, 2017
Nov. 03, 2018
Oct. 28, 2017
Net Sales [1] $ 4,089 $ 3,838 $ 11,957 $ 11,077
Cost of goods sold and occupancy expenses 2,466 2,313 7,280 6,770
Gross profit 1,623 1,525 4,677 4,307
Operating Expenses 1,260 1,147 3,687 3,224
Operating income 363 378 990 1,083
Interest Expense 21 18 54 53
Interest income (8) (4) (21) (11)
Income before income taxes 350 364 957 1,041
Income taxes 84 135 230 398
Net income $ 266 $ 229 $ 727 $ 643
Weighted-average number of shares - basic (in shares) 384 391 387 395
Weighted-average number of shares - diluted (in shares) 387 393 390 397
Earnings per share - basic (in dollars per share) $ 0.69 $ 0.59 $ 1.88 $ 1.63
Earnings per share - diluted (in dollars per share) 0.69 0.58 1.86 1.62
Cash dividends declared and paid per share (in dollars per share) $ 0.2425 $ 0.23 $ 0.7275 $ 0.69
[1] Net sales for the thirteen and thirty-nine weeks ended November 3, 2018 reflect the adoption of the new revenue recognition standard, which resulted in an increase to net sales of $170 million and $449 million, respectively, for revenue sharing and reimbursements of loyalty program discounts associated with the Company's credit card programs, as well as breakage revenue for our gift cards and credit vouchers. Prior period amounts have not been restated and continue to be reported under accounting standards in effect for those periods.