Segment Information

6 Months Ended

Jul. 30, 2022

Segment Information [Abstract]

Segment Information

4. Segment Information

We have integrated all available shopping channels including stores, websites, apps, and social channels. 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 availability.

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.

	Thirteen weeks ended				Twenty-six weeks ended
	July 30,		July 31,		July 30,		July 31,
($ in millions)	2022		2021		2022		2021
Sales	$	2,065	$	2,275	$	4,240	$	4,428
Operating Results
Division profit		184		332	$	444	$	647
Less: Impairment and other charges (1)		12		36		18		40
Less: Corporate expense (2)		33		32		70		61
Income from operations		139		264		356		546
Interest expense, net		(5)		(2)		(10)		(4)
Other income / (expense), net (3)		9		325		(13)		329
Income before income taxes	$	143	$	587	$	333	$	871

(1) See Note 5, Impairment and Other Charges for further detail.

(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) Other income / (expense), net for the thirteen weeks and twenty-six weeks ended July 30, 2022 represented primarily the loss on the change in fair value of our investment in Retailors, Ltd., a publicly-listed entity, which was partially offset by other income. See Note 6, Other Income / (Expense), net.