Additional Financial Statement Information

12 Months Ended

Feb. 01, 2020

Additional Financial Statement Information [Abstract]

Additional Financial Information Disclosure [Text Block]

Additional Financial Statement Information

Cash and Cash Equivalents

Cash and cash equivalents consist of the following:

($ in millions)	February 1, 2020		February 2, 2019
Cash (1)	$	1,053	$	708
Bank certificates of deposit and time deposits	286		341
Money market funds	19		26
Domestic commercial paper and other	6		6
Cash and cash equivalents	$	1,364	$	1,081

__________

(1) Cash includes $61 million and $68 million of amounts in transit from banks for customer credit card and debit card transactions as of February 1, 2020 and February 2, 2019, respectively.

Short-Term Investments

Short-term investments consist of the following:

($ in millions)	February 1, 2020		February 2, 2019
U.S. agency securities	$	25	$	22
Corporate securities	148		141
U.S. treasury securities	117		125
Short-term investments	$	290	$	288

Other Current Assets

Other current assets consist of the following:

($ in millions)	February 1, 2020		February 2, 2019
Accounts receivable	$	316	$	321
Prepaid income taxes	77		102
Prepaid minimum rent and occupancy expenses	148		157
Right of return asset	36		38
Derivative financial instruments	10		20
Other	119		113
Other current assets	$	706	$	751

Property and Equipment

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

($ in millions)	February 1, 2020			February 2, 2019
Leasehold improvements	$	2,923		$	3,104
Furniture and equipment	2,802			2,732
Software	1,626			1,525
Land, buildings, and building improvements	1,408			1,123
Construction-in-progress	202			183
Property and equipment, at cost	8,961			8,667
Less: Accumulated depreciation	(5,839		)	(5,755		)
Property and equipment, net of accumulated depreciation	$	3,122		$	2,912

Depreciation expense for property and equipment was $554 million, $575 million, and $556 million for fiscal 2019, 2018, and 2017, respectively.

Interest of $7 million, $10 million, and $9 million related to assets under construction was capitalized in fiscal 2019, 2018, and 2017, respectively.

We recorded a total charge for the impairment of store assets of $98 million, $14 million, and $28 million for fiscal 2019, 2018, and 2017, respectively, which is recorded in operating expenses on the Consolidated Statements of Income.

See Note 7 of Notes to Consolidated Financial Statements for information regarding impairment charges.

Other Long-Term Assets

Other long-term assets consist of the following:

($ in millions)	February 1, 2020		February 2, 2019
Long-term income tax-related assets	$	256	$	151
Goodwill	109		109
Trade names	121		92
Restricted cash (1)	17		338
Other	136		196
Other long-term assets	$	639	$	886

__________

(1) Fiscal 2018 included $320 million of consideration held by a third party in connection with the purchase of a building completed in fiscal 2019.

No goodwill impairment or trade name impairment charges were recorded in fiscal 2019, 2018, or 2017.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

($ in millions)	February 1, 2020		February 2, 2019
Accrued compensation and benefits	$	291	$	254
Deferred revenue	226		227
Short-term deferred rent and tenant allowances (1)	—		101
Sales return allowance	74		78
Accrued advertising	57		41
Derivative financial instruments	10		11
Other	409		312
Accrued expenses and other current liabilities	$	1,067	$	1,024

__________

(1) Beginning in fiscal 2019, short-term deferred rent and tenant allowances no longer reflects lease incentives due to the adoption of the new lease accounting standard. Prior period amounts have not been restated and continue to be reported under accounting standards in effect for those periods.

Lease Incentives and Other Long-Term Liabilities

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

($ in millions)	February 1, 2020		February 2, 2019
Long-term deferred rent and tenant allowances (1)	$	50	$	736
Long-term income tax-related liabilities	152		118
Long-term asset retirement obligations	56		52
Other	139		167
Lease incentives and other long-term liabilities	$	397	$	1,073

__________

(1) Beginning in fiscal 2019, long-term deferred rent and tenant allowances no longer reflects lease incentives due to the adoption of the new lease accounting standard. Prior period amounts have not been restated and continue to be reported under accounting standards in effect for those periods.

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