Accounts Receivable

6 Months Ended

Aug. 01, 2015

Accounts Receivable, Net [Abstract]

Accounts Receivable

ACCOUNTS RECEIVABLE

We entered into an agreement in May 2015 to sell substantially all of our U.S. Visa and private label credit card portfolio. These receivables are now classified as "held for sale" and recorded at the lower of cost (par) or fair value. Our receivables are held at cost as of August 1, 2015 (see Note 2: Credit Card Receivable Transaction and Note 6: Fair Value Measurements). The components of accounts receivable are as follows:

	August 1, 2015			January 31, 2015			August 2, 2014
Credit card receivables held for investment	$	120		$	2,284		$	2,420
Allowance for credit losses	(1		)	(75		)	(80		)
Other accounts receivable1	122			97			114
Accounts receivable, net	$	241		$	2,306		$	2,454
Accounts receivable held for sale	$	2,391		$	—		$	—

¹ Other accounts receivable consist primarily of debit card receivables and third-party receivables.

As our U.S. Visa and private label receivables have been reclassified as "held for sale," the allowance for credit losses on these receivables has been reversed as of August 1, 2015. Activity in the allowance for credit losses is as follows:

	Quarter Ended						Six Months Ended
	August 1, 2015			August 2, 2014			August 1, 2015			August 2, 2014
Allowance at beginning of period	$	70		$	80		$	75		$	80
Bad debt expense	10			7			20			22
Write-offs	(18		)	(19		)	(38		)	(38		)
Recoveries	3			12			8			16
Reversal of allowance on receivables held for sale	(64		)	—			(64		)	—
Allowance at end of period	$	1		$	80		$	1		$	80

Under certain circumstances, we may make modifications to payment terms for a customer experiencing financial difficulties in an effort to help the customer avoid a charge-off or bankruptcy and to maximize our recovery of the outstanding balance. These modifications, which meet the accounting definition of troubled debt restructurings ("TDRs"), include reduced or waived fees and finance charges, and/or reduced minimum payments. Receivables classified as TDRs are as follows:

	August 1, 2015			January 31, 2015			August 2, 2014
Credit card receivables classified as TDRs	$	30		$	34		$	38
Percent of total credit card receivables classified as TDRs	1.2		%	1.5		%	1.6		%

Credit Quality

The primary indicators of the credit quality of our credit card receivables are aging and delinquency, particularly the levels of account balances delinquent 30 days or more, as these are the accounts most likely to be written off. The following table illustrates the aging and delinquency status of our credit card receivables "held for sale" and "held for investment":

	August 1, 2015				January 31, 2015				August 2, 2014
	Balance		% of total		Balance		% of total		Balance		% of total
Current	$	2,377	94.7	%	$	2,134	93.4	%	$	2,301	95.1	%
1 – 29 days delinquent	91		3.6	%	103		4.5	%	82		3.4	%
30 days or more delinquent:
30 – 59 days delinquent	15		0.6	%	16		0.7	%	15		0.6	%
60 – 89 days delinquent	10		0.4	%	10		0.5	%	9		0.4	%
90 days or more delinquent	18		0.7	%	21		0.9	%	13		0.5	%
Total 30 days or more delinquent	43		1.7	%	47		2.1	%	37		1.5	%
Total credit card receivables	$	2,511	100.0	%	$	2,284	100.0	%	$	2,420	100.0	%
Receivables not accruing finance charges	$	10			$	13			$	11
Receivables 90 days or more delinquent and still accruing finance charges	12				13				7

We also evaluate credit quality using FICO credit scores. The following table illustrates the distribution of our credit card receivables "held for sale" and "held for investment" across FICO score ranges:

	August 1, 2015				January 31, 2015				August 2, 2014
FICO Score Range1	Balance		% of total		Balance		% of total		Balance		% of total
801+	$	497	19.8	%	$	369	16.2	%	$	481	19.8	%
660 – 800	1,513		60.3	%	1,435		62.8	%	1,478		61.1	%
001 – 659	395		15.7	%	392		17.1	%	365		15.1	%
Other2	106		4.2	%	88		3.9	%	96		4.0	%
Total credit card receivables	$	2,511	100.0	%	$	2,284	100.0	%	$	2,420	100.0	%

¹ Credit scores for our credit cardholders are updated at least every 90 days. Amounts listed in the table reflect the most recently obtained credit scores as of the dates indicated.

² Other consists of amounts not yet posted to customers' accounts and receivables from customers for whom FICO scores are temporarily unavailable.