Summary of Significant Accounting Policies (Tables)

12 Months Ended

Feb. 01, 2019

Summary of Significant Accounting Policies

Changes in the carrying amount of goodwill

The changes in the carrying amount of goodwill for 2018, 2017, and 2016 were as follows:

(In millions)	2018			2017		2016
Goodwill, balance at beginning of year	$	1,307		$	1,082	$	154
Acquisitions 1	—			160		1,015
Impairment	(952		)	—		(46		)
Other adjustments 2	(52		)	65		(41		)
Goodwill, balance at end of year	$	303		$	1,307	$	1,082

¹  Goodwill recorded for 2017 acquisitions relates to Maintenance Supply Headquarters. Goodwill recorded for 2016 acquisitions primarily relates to RONA. See Note 4 for additional information regarding these acquisitions.

²  Other adjustments primarily consist of changes in the goodwill balance as a result of foreign currency translation.

Gross carrying amounts and cumulative goodwill impairment losses

Gross carrying amounts and cumulative goodwill impairment losses are as follows:

	February 1, 2019					February 2, 2018
(In millions)	Gross Carrying Amount		Cumulative Impairment			Gross Carrying Amount		Cumulative Impairment
Goodwill	$	1,302	$	(999	)	$	1,354	$	(47	)

Other current liabilities

Other Current Liabilities - Other current liabilities on the consolidated balance sheets consist of:

(In millions)	February 1, 2019		February 2, 2018
Accrued dividends	$	385	$	340
Self-insurance liabilities	378		347
Sales return reserve	194		71
Accrued interest	184		184
Sales tax liabilities	179		144
Accrued property taxes	108		109
Other	997		755
Total	$	2,425	$	1,950

Schedule of Accounting Pronouncements Recently Adopted

The impact of adopting the new revenue recognition guidance on our consolidated statement of earnings is as follows:

	Twelve Months Ended February 1, 2019
Consolidated Statement of Earnings (in millions)	As Reported		Under Historical Guidance		Impact of Adopting ASU 2014-09
Net Sales	$	71,309	$	70,586	$	723
Cost of sales	48,401		48,481		(80		)
Gross margin	22,908		22,105		803
Selling, general and administrative	17,413		16,610		803
Operating income	4,018		4,018		—
Pre-tax earnings	3,394		3,394		—
Net earnings	2,314		2,314		—

The impact of adopting the new revenue recognition guidance to assets and liabilities on our consolidated balance sheet are as follows:

	Balance at February 1, 2019
	As Reported		Under Historical Guidance		Impact of Adopting ASU 2014-09
Assets
Other current assets	$	938	$	811	$	127
Liabilities
Accounts payable	8,279		8,272		7
Deferred revenue	1,299		1,371		(72		)
Other current liabilities	2,425		2,281		144