Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 30, 2021

Significant Accounting Policies [Line Items]

Activity of Gift Card Liability Balance

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

($ in millions)	2020		2019
Gift card liability at beginning of year	$	35	$	35
Redemptions		(118)		(105)
Breakage recognized in sales		(8)		(7)
Activations		131		112
Foreign currency fluctuations		1		—
Gift card liability at end of year	$	41	$	35

Computation of Basic and Diluted Earnings Per Share

(in millions, except per share data)	2020		2019		2018
Net income	$	323	$	491	$	541
Weighted-average common shares outstanding		104.3		108.7		115.6
Dilutive effect of potential common shares		0.8		0.4		0.5
Weighted-average common shares outstanding assuming dilution		105.1		109.1		116.1
Earnings per share - basic	$	3.10	$	4.52	$	4.68
Earnings per share - diluted	$	3.08	$	4.50	$	4.66
Anti-dilutive share-based awards excluded from diluted calculation		2.5		2.2		1.9

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:

	January 30,		February 1,		February 2,
($ in millions)	2021		2020		2019
Cash and cash equivalents (1)	$	1,680	$	907	$	891
Restricted cash included in other current assets (2)		8		6		59
Restricted cash included in other non-current assets		30		29		31
Cash, cash equivalents, and restricted cash	$	1,718	$	942	$	981

(1) Includes cash equivalents of $503 million, $366 million, and $476 million for the years ended January 30, 2021, February 1, 2020, and February 2, 2019, respectively.

(2) The remaining balance of the qualified settlement fund related to the pension matter of $55 million was included in the current portion of restricted cash as of February 2, 2019 and 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	Maximum of 50 years
Store leasehold improvements	Shorter of the asset useful life or expected term of the lease
Furniture, fixtures, and equipment	3‑10 years
Software	2‑5 years

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:

($ in millions)	2020		2019		2018
Advertising expenses (1)	$	69	$	91	$	111
Digital advertising expenses		89		95		96
Cooperative advertising reimbursements		(14)		(20)		(25)
Net advertising expense	$	144	$	166	$	182

(1) Effective with the adoption of the new lease standard in 2019, advertising costs that are required by some of our mall-based leases are recorded as an element of rent expense. These costs were $14 million for 2018.

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:

($ in millions)	2020		2019		2018
Catalog costs	$	7	$	15	$	18