Summary of Significant Accounting Policies (Tables)

12 Months Ended

Feb. 01, 2020

Significant Accounting Policies [Line Items]

Activity of Gift Card Liability Balance

The table below presents the activity of our gift card liability balance:

	2019		2018
	($ in millions)
Gift card liability at beginning of year	$	35	$	38
Redemptions		(105)		(96)
Cumulative catch-up adjustment to retained earnings from the adoption of Topic 606		—		(4)
Breakage recognized in sales		(7)		(6)
Activations		112		104
Foreign currency fluctuations		—		(1)
Gift card liability at end of year	$	35	$	35

Computation of Basic and Diluted Earnings Per Share

	2019		2018		2017
	(in millions, except per share data)
Net Income	$	491	$	541	$	284
Weighted-average common shares outstanding		108.7		115.6		127.2
Dilutive effect of potential common shares		0.4		0.5		0.7
Weighted-average common shares outstanding assuming dilution		109.1		116.1		127.9
Earnings per share - basic	$	4.52	$	4.68	$	2.23
Earnings per share - diluted	$	4.50	$	4.66	$	2.22
Anti-dilutive share-based awards excluded from diluted calculation		2.2		1.9		1.6

Reconciliation of Cash and Cash Equivalents

The following table provides the reconciliation of cash, cash equivalents, and restricted cash, as reported on our consolidated statements of cash flows.

	2019		2018		2017
	($ in millions)
Cash and cash equivalents (1)	$	907	$	891	$	849
Restricted cash included in other current assets (2)		6		59		1
Restricted cash included in other non-current assets (2)		29		31		181
Cash, cash equivalents, and restricted cash	$	942	$	981	$	1,031

(1) Includes cash equivalents of $878 million, $834 million, and $780 million for the year ended February 1, 2020, February 2, 2019, and February 3, 2018, respectively.

(2) In connection with the pension matter, as further discussed in Note 3, Impairment and Other Charges, we deposited $150 million to a qualified settlement fund during 2017, classified as long-term at that time. The qualified settlement fund was used in 2018 to pay $97 million in class counsel fees. The balance of the fund and related interest was $55 million and was included in the current portion of restricted cash as of February 2, 2019. The remaining fund was contributed to the pension plan in 2019.

Estimated Useful Lives

Depreciation and amortization are computed on a straight-line basis over the following estimated useful lives:

Buildings

Advertising Expense [Member]

Significant Accounting Policies [Line Items]

Costs Included as Component of Selling, General and Administrative Expenses

Advertising costs, including digital advertising, which are included as a component of SG&A, were as follows:

	2019		2018		2017
	($ in millions)
Advertising expenses (1)	$	91	$	111	$	108
Digital advertising expenses		95		96		96
Cooperative advertising reimbursements		(20)		(25)		(20)
Net advertising expense	$	166	$	182	$	184

Catalog Expense [Member]

Significant Accounting Policies [Line Items]

Costs Included as Component of Selling, General and Administrative Expenses

Catalog costs, which are included as a component of SG&A, were as follows:

	2019		2018		2017
	($ in millions)
Catalog costs	$	15	$	18	$	19
Cooperative reimbursements		—		—		(2)
Net catalog expense	$	15	$	18	$	17