Basis of Presentation Basis of Presentation (Tables)

9 Months Ended

Nov. 03, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The cumulative effect of the changes made to our Condensed Consolidated Balance Sheets on February 4, 2018, for the adoption of this standard was as follows ($ in millions):

	February 3, 2018 As Reported		ASU 2014-09 Adjustment on February 4, 2018			February 4, 2018 Adjusted
Assets
Other assets	$	374	$	(19	)	$	355
Liabilities
Unredeemed gift card liabilities	385		(69		)	316
Deferred revenue	453		(26		)	427
Accrued liabilities	864		(3		)	861
Accrued income taxes	137		6			143
Equity
Retained earnings	3,270		73			3,343

The following tables reflect the impact of adopting this standard on our Condensed Consolidated Balance Sheets as of November 3, 2018, and our Condensed Consolidated Statements of Earnings for the three and nine months ended November 3, 2018 ($ in millions, except per share amounts):

	November 3, 2018
Impact of Changes to Condensed Consolidated Balance Sheets	As Reported		Balances without Adoption of ASU 2014-09		Effect of Change Higher/(Lower)(1)
Assets
Other current assets	$	508	$	459	$	49
Other assets	653		672		(19		)
Liabilities
Unredeemed gift card liabilities	281		349		(68		)
Deferred revenue	449		472		(23		)
Accrued liabilities	823		777		46
Accrued income taxes	21		15		6
Equity
Retained earnings	2,685		2,616		69

(1) Effect of change includes the opening retained earnings adjustment as detailed within the table above.

	Three Months Ended November 3, 2018
Impact of Changes to Condensed Consolidated Statements of Earnings	As Reported		Balances without Adoption of ASU 2014-09		Effect of Change Higher/(Lower)
Revenue	$	9,590	$	9,575	$	15
Cost of goods sold	7,266		7,250		16
Gross profit	2,324		2,325		(1		)
Operating income	322		323		(1		)
Income tax expense	53		53		—
Net earnings	277		278		(1		)
Basic earnings per share	$	1.01	$	1.01	$	—
Diluted earnings per share	$	0.99	$	0.99	$	—

	Nine Months Ended November 3, 2018
Impact of Changes to Condensed Consolidated Statements of Earnings	As Reported		Balances without Adoption of ASU 2014-09		Effect of Change Higher/(Lower)
Revenue	$	28,078	$	28,043	$	35
Cost of goods sold	21,400		21,361		39
Gross profit	6,678		6,682		(4		)
Operating income	922		926		(4		)
Income tax expense	187		188		(1		)
Net earnings	729		732		(3		)
Basic earnings per share	$	2.62	$	2.63	$	(0.01	)
Diluted earnings per share	$	2.57	$	2.58	$	(0.01	)

SEC Disclosure Update

In the third quarter of fiscal 2019, the U.S. Securities and Exchange Commission ("SEC") adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that have become redundant, duplicative, overlapping, outdated or superseded. Other than the amendment's expanded disclosure requirement for interim financial statements to include both current and comparative quarter- and year-to-date reconciliations of changes in shareholders' equity, it did not have a material impact on our interim disclosures or financial statements, nor do we expect it to have a material impact on our annual disclosures or financial statements.

Total Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the total shown within the Condensed Consolidated Statements of Cash Flows as of November 3, 2018, February 3, 2018, and October 28, 2017 ($ in millions):

	November 3, 2018		February 3, 2018		October 28, 2017
Cash and cash equivalents	$	1,228	$	1,101	$	1,103
Restricted cash included in Other current assets	211		199		197
Total cash, cash equivalents and restricted cash	$	1,439	$	1,300	$	1,300