XML 26 R12.htm IDEA: XBRL DOCUMENT

Segment Information

9 Months Ended

Oct. 31, 2020

Segment Information [Abstract]

Segment Information

3. Segment Information

We have integrated all available shopping channels including stores, websites, apps, social channels, and catalogs. Store sales are primarily fulfilled from the store’s inventory but may also be shipped from any of our distribution centers or from a different store location if an item is not available at the original store. Direct-to-customer orders are generally shipped to our customers through our distribution centers but may also be shipped from any store or a combination of our distribution centers and stores depending on the availability of particular items.

We evaluate performance based on several factors, primarily the banner’s financial results, referred to as division profit. Division profit reflects income before income taxes, impairment and other charges, corporate expense, non-operating income, and net interest (expense) income. The following table summarizes our results:


		Thirteen weeks ended					Thirty-nine weeks ended
		October 31,			November 2,		October 31,			November 2,
($ in millions)		2020			2019		2020			2019
Sales		$	2,106		$	1,932	$	5,359		$	5,784

Operating Results
Division profit			198			184		244			549
Less: Impairment and other charges ⁽¹⁾			4			1		58			16
Less: Corporate expense ⁽²⁾			16			19		44			60
Income from operations			178			164		142			473
Interest (expense) income, net			(2)			3		(5)			9
Other income, net ⁽³⁾			193			4		197			8
Income before income taxes		$	369		$	171	$	334		$	490

(1)	During the thirteen and thirty-nine weeks ended October 31, 2020 and November 2, 2019, we recorded pre-tax charges as detailed in Note 4, Impairment and Other Charges.

(2)

Corporate expense consists of unallocated selling, general and administrative expenses, as well as depreciation and amortization related to our corporate headquarters, centrally managed departments, unallocated insurance and benefit programs, certain foreign exchange transaction gains and losses, and other items.

(3)	One of our minority investments, which is measured using the fair value measurement alternative, received additional funding in the third quarter at a higher valuation than our initial investment. As a result, we recorded a $190 million non-cash gain during the third quarter of 2020.