Shareholders' Equity Shareholders' Equity (Tables)
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12 Months Ended |
Feb. 02, 2019 |
Equity [Abstract] |
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Stock-based compensation expense |
Stock-based compensation expense was as follows in fiscal 2019, fiscal 2018 and fiscal 2017 ($ in millions): | | | | | | | | | | | | | | 2019 | | 2018 | | 2017 | Stock options | $ | 3 |
| | $ | 6 |
| | $ | 9 |
| Share awards: | | | | | | Market-based | 15 |
| | 19 |
| | 15 |
| Performance-based | 20 |
| | 13 |
| | 6 |
| Time-based | 85 |
| | 91 |
| | 78 |
| Total | $ | 123 |
| | $ | 129 |
| | $ | 108 |
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Stock option activity |
Stock option activity was as follows in fiscal 2019: | | | | | | | | | | | | | | | Stock Options | | Weighted-Average Exercise Price per Share | | Weighted-Average Remaining Contractual Term (in years) | | Aggregate Intrinsic Value (in millions) | Outstanding at February 3, 2018 | 3,069,000 |
| | $ | 32.32 |
| | | | |
| Granted | 161,000 |
| | $ | 66.59 |
| | | | |
| Exercised | (869,000 | ) | | $ | 35.54 |
| | | | |
| Forfeited/canceled | (3,000 | ) | | $ | 33.01 |
| | | | |
| Outstanding at February 2, 2019 | 2,358,000 |
| | $ | 33.47 |
| | 4.9 | | $ | 60 |
| Vested or expected to vest at February 2, 2019 | 2,358,000 |
| | $ | 33.47 |
| | 4.9 | | $ | 60 |
| Exercisable at February 2, 2019 | 2,006,000 |
| | $ | 30.21 |
| | 4.3 | | $ | 57 |
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Black Scholes valuation model assumptions |
In fiscal 2019, fiscal 2018 and fiscal 2017, we estimated the fair value of each stock option on the date of grant using a lattice or Black Scholes valuation model (for certain individuals) with the following assumptions: | | | | | | | | | | Valuation Assumptions | 2019 | | 2018 | | 2017 | Risk-free interest rate(1) | 1.9% – 2.8% |
| | 0.9% – 2.6% |
| | 0.5% – 2.0% |
| Expected dividend yield | 2.7 | % | | 3.0 | % | | 3.5 | % | Expected stock price volatility(2) | 39 | % | | 38 | % | | 37 | % | Expected life of stock options (in years)(3) | 6.5 |
| | 6.0 |
| | 6.0 |
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| | (1) | Based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of our stock options. |
| | (2) | In projecting expected stock price volatility, we consider both the historical volatility of our stock price as well as implied volatilities from exchange-traded options on our stock. |
| | (3) | We estimate the expected life of stock options based upon historical experience. |
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Summary of the status of nonvested market-based share awards |
A summary of the status of our nonvested market-based share awards at February 2, 2019, and changes during fiscal 2019, were as follows: | | | | | | | | Market-Based Share Awards | Shares | | Weighted-Average Fair Value per Share | Outstanding at February 3, 2018 | 1,422,000 |
| | $ | 36.35 |
| Granted | 371,000 |
| | $ | 74.27 |
| Vested | (557,000 | ) | | $ | 42.04 |
| Forfeited/canceled | (49,000 | ) | | $ | 40.33 |
| Outstanding at February 2, 2019 | 1,187,000 |
| | $ | 40.07 |
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Summary of the status of nonvested time-based share awards |
A summary of the status of our nonvested time-based share awards at February 2, 2019, and changes during fiscal 2019, were as follows: | | | | | | | | Time-Based Share Awards | Shares | | Weighted-Average Fair Value per Share | Outstanding at February 3, 2018 | 5,050,000 |
| | $ | 36.17 |
| Granted | 1,543,000 |
| | $ | 68.96 |
| Vested | (2,208,000 | ) | | $ | 37.30 |
| Forfeited/canceled | (287,000 | ) | | $ | 47.56 |
| Outstanding at February 2, 2019 | 4,098,000 |
| | $ | 47.13 |
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Summary of the status of nonvested performance-based share awards |
A summary of the status of our nonvested performance-based share awards at February 2, 2019, and changes during fiscal 2019, were as follows: | | | | | | | | Performance-Based Share Awards | Shares | | Weighted-Average Fair Value per Share | Outstanding at February 3, 2018 | 685,000 |
| | $ | 37.04 |
| Granted | 354,000 |
| | $ | 72.11 |
| Vested | (217,000 | ) | | $ | 34.15 |
| Forfeited/canceled | (3,000 | ) | | $ | 72.05 |
| Outstanding at February 2, 2019 | 819,000 |
| | $ | 52.78 |
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Summary of stock options outstanding |
At February 2, 2019, options to purchase 2.4 million shares of common stock were outstanding as follows (shares in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Exercisable | | Unexercisable | | Total | | Shares | | % | | Weighted- Average Price per Share | | Shares | | % | | Weighted- Average Price per Share | | Shares | | % | | Weighted- Average Price per Share | In-the-money | 2.0 |
| | 100 | % | | $ | 30.21 |
| | 0.3 |
| | 75 | % | | $ | 43.86 |
| | 2.3 |
| | 96 | % | | $ | 31.72 |
| Out-of-the-money | — |
| | — | % | | $ | — |
| | 0.1 |
| | 25 | % | | $ | 71.52 |
| | 0.1 |
| | 4 | % | | $ | 71.52 |
| Total | 2.0 |
| | 100 | % | | $ | 30.21 |
| | 0.4 |
| | 100 | % | | $ | 52.01 |
| | 2.4 |
| | 100 | % | | $ | 33.47 |
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Reconciliation of the numerators and denominators of basic and diluted earnings per share |
The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share from continuing operations in fiscal 2019, fiscal 2018 and fiscal 2017 ($ and shares in millions, except per share amounts): | | | | | | | | | | | | | | 2019 | | 2018 | | 2017 | Numerator | | | | | | Net earnings from continuing operations | $ | 1,464 |
| | $ | 999 |
| | $ | 1,207 |
| Denominator | | | | | | Weighted-average common shares outstanding | 276.4 |
| | 300.4 |
| | 318.5 |
| Effect of potentially dilutive securities: | | | | | | Stock options and other | 5.0 |
| | 6.7 |
| | 4.1 |
| Weighted-average common shares outstanding, assuming dilution | 281.4 |
| | 307.1 |
| | 322.6 |
| | | | | | | Anti-dilutive securities excluded from Weighted-average common shares outstanding, assuming dilution | 0.2 |
| | — |
| | 4.5 |
| | | | | | | Net earnings per share from continuing operations | | | | | | Basic | $ | 5.30 |
| | $ | 3.33 |
| | $ | 3.79 |
| Diluted | $ | 5.20 |
| | $ | 3.26 |
| | $ | 3.74 |
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Repurchases of common stock |
The following table presents information regarding the shares we repurchased and retired in fiscal 2019, fiscal 2018 and fiscal 2017 ($ and shares in millions, except per share amounts): | | | | | | | | | | | | | | 2019 | | 2018 | | 2017 | Total cost of shares repurchased | | | | | | Open market | $ | 1,493 |
| | $ | 2,009 |
| | $ | 706 |
| January 2016 ASR | — |
| | — |
| | 45 |
| Total | $ | 1,493 |
| | $ | 2,009 |
| | $ | 751 |
| | | | | | | Average price per share | | | | | | Open market | $ | 70.28 |
| | $ | 57.16 |
| | $ | 36.11 |
| January 2016 ASR | $ | — |
| | $ | — |
| | $ | 28.55 |
| Average | $ | 70.28 |
| | $ | 57.16 |
| | $ | 33.54 |
| | | | | | | Number of shares repurchased and retired | | | | | | Open market(1) | 21.2 |
| | 35.1 | | 19.5 | January 2016 ASR | — |
| | — |
| | 1.6 | Total | 21.2 |
| | 35.1 | | 21.1 |
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Components of accumulated other comprehensive income, net of tax |
The following table provides a reconciliation of the components of accumulated other comprehensive income, net of tax, for fiscal 2019, fiscal 2018 and fiscal 2017, respectively ($ in millions): | | | | | | Foreign Currency Translation | Balance at January 30, 2016 | $ | 271 |
| Foreign currency translation adjustments | 10 |
| Reclassification of foreign currency translation adjustments into earnings due to sale of business | (2 | ) | Balance at January 28, 2017 | 279 |
| Foreign currency translation adjustments | 35 |
| Balance at February 3, 2018 | 314 |
| Foreign currency translation adjustments | (20 | ) | Balance at February 2, 2019 | $ | 294 |
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