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Segment Information (Tables)
12 Months Ended
Feb. 02, 2019
Segment Information [Abstract]  
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:

 

 

 

 

 

 

 

 

 

 

 

    

2018

    

2017

    

2016

 

 

($ in millions)

Division profit (1)

 

 

789

 

 

810

 

 

1,070

Less: Pension litigation and reorganization charges (2), (3)

 

 

18

 

 

191

 

 

 —

Less: Corporate expense (4)

 

 

72

 

 

48

 

 

70

Income from operations

 

 

699

 

 

571

 

 

1,000

Interest income (expense), net

 

 

 9

 

 

 2

 

 

(2)

Other income

 

 

 5

 

 

 5

 

 

 6

Income before income taxes

 

$

713

 

$

578

 

$

1,004

 

(1)

Included in the results for 2018, 2017, and 2016 are non-cash impairment charges of $19 million, $20 million, and $6 million, respectively.

During 2018, the Company recorded a charge totaling $4 million to write down store fixtures and leasehold improvements related to Runners Point, Sidestep, and SIX:02. Additionally, the Company recorded a charge of $15 million to write down the values of the trademarks/ trade names associated with Runners Point.

The 2017 amount includes a charge of $16 million to write down long-lived store assets of SIX:02, and a charge of $4 million to write down primarily long-lived store assets of Runners Point and Sidestep.

The 2016 amounts reflect charges to write down long-lived store assets of Runners Point and Sidestep. See Note 3, Litigation and Other Charges for additional information.

(2)

Included in the 2018 and 2017 amounts are pre-tax charge of $18 million and $178 million, respectively, relating to a pension litigation matter described further in Note 22, Legal Proceedings.

(3)

Included in the 2017 amount is $13 million in pre-tax reorganization costs related to the reduction and reorganization of division and corporate staff that occurred in the third quarter of 2017, described more fully in Note 3, Litigation and Other Charges

(4)

Corporate expense for all years presented reflects the reallocation of expense between corporate and the operating divisions. Based upon annual internal studies of corporate expense, the allocation of such expenses to the operating divisions was increased by $40 million for 2018,  $4 million for 2017, and $9 million for 2016, thereby reducing corporate expense.

Disaggregation of Revenue

 

 

 

 

 

 

 

 

 

 

 

    

2018

    

2017

    

2016

 

 

($ in millions)

Sales

 

 

 

 

 

 

 

 

 

Stores

 

$

6,714

 

$

6,673

 

$

6,744

Direct-to-customers

 

 

1,225

 

 

1,109

 

 

1,022

Total sales

 

$

7,939

 

$

7,782

 

$

7,766

 

Sales and Long-Lived Asset Information by Geographic Area

 

 

 

 

 

 

 

 

 

 

 

    

2018

    

2017

    

2016

 

 

($ in millions)

Sales

 

 

 

 

 

 

 

 

 

United States

 

$

5,647

 

$

5,532

 

$

5,562

International

 

 

2,292

 

 

2,250

 

 

2,204

Total sales

 

$

7,939

 

$

7,782

 

$

7,766

 

 

 

 

 

 

 

 

 

 

Long-Lived Assets

 

 

 

 

 

 

 

 

 

United States

 

$

602

 

$

607

 

$

575

International

 

 

234

 

 

259

 

 

190

Total long-lived assets

 

$

836

 

$

866

 

$

765

 

Segment Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization

 

Capital Expenditures (1)

 

Total Assets

 

    

2018

    

2017

    

2016

    

2018

    

2017

    

2016

    

2018

    

2017

    

2016

 

 

($ in millions)

Division

 

$

160

 

$

157

 

$

144

 

$

112

 

$

205

 

$

197

 

$

2,900

 

$

3,132

 

$

3,140

Corporate

 

 

18

 

 

16

 

 

14

 

 

75

 

 

69

 

 

69

 

 

920

 

 

829

 

 

700

Total Company

 

$

178

 

$

173

 

$

158

 

$

187

 

$

274

 

$

266

 

$

3,820

 

$

3,961

 

$

3,840