Segment Information (Tables)

6 Months Ended

Aug. 04, 2018

Sales and Division Operating Results for Reportable Segments

The Company evaluates performance based on several factors, of which the primary financial measure is the banner’s financial results referred to as division profit. Division profit reflects income before income taxes, pension litigation charge, corporate expense, non-operating income, and net interest income. The following table summarizes our results:



	Thirteen weeks ended				Twenty-six weeks ended
	August 4,		July 29,		August 4,		July 29,
	2018		2017		2018		2017
	($ in millions)
Sales	$	1,782	$	1,701	$	3,807	$	3,702

Operating Results
Division profit		131		129		378		412
Less: Pension litigation (1)		3		50		15		50
Less: Corporate expense (2)		16		7		27		22
Income from operations		112		72		336		340
Interest income, net		(1)		(1)		(3)		(1)
Other income (3)		2		—		5		1
Income before income taxes	$	115	$	73	$	344	$	342


(1)	Included in the thirteen and twenty-six weeks ended August 4, 2018 are pre-tax charges of $3 million and $15 million, respectively, relating to a pension litigation matter described further in Note 14, Legal Proceedings. Included in the thirteen and twenty-six weeks ended July 29, 2017 are pre-tax charges of $50 million in both periods relating to the same matter.
(2)	Corporate expense consists of unallocated selling, general and administrative expenses as well as depreciation and amortization related to the Company’s corporate headquarters, centrally managed departments, unallocated insurance and benefit programs, certain foreign exchange transaction gains and losses, and other items.
(3)	Other income includes non-operating items, such as lease termination gains, royalty income, changes in fair value, premiums paid, realized gains and losses associated with foreign currency option contracts, changes in the market value of our available-for-sale security, and net benefit expense related to our pension and postretirement programs excluding the service cost component.