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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
12 Months Ended
Feb. 02, 2019
Feb. 03, 2018
Jan. 28, 2017
From Operating Activities      
Net income/(loss) $ 541 [1],[2],[3] $ 284 [1],[2],[3] $ 664
Adjustments to reconcile net income to net cash provided by operating activities:      
Non-cash impairment charges 19 20 6
Depreciation and amortization 178 173 158
Deferred income taxes 9 105 (1)
Share-based compensation expense 22 15 22
Qualified pension plan contributions (128) (25) (36)
Change in assets and liabilities:      
Merchandise inventories (16) 69 (25)
Accounts payable 135   (31)
Accrued and other liabilities 39 (30) 27
Pension litigation accrual 13 178  
Class counsel fees paid in connection with pension litigation (97)    
Other, net 66 24 60
Net cash provided by operating activities 781 813 844
From Investing Activities      
Capital expenditures (187) (274) (266)
Cash paid for a cost method investment (89) (15)  
Purchase of business, net of cash acquired 2    
Net cash used in investing activities (274) (289) (266)
From Financing Activities      
Purchase of treasury shares (375) (467) (432)
Dividends paid on common stock (158) (157) (147)
Proceeds from exercise of stock options 5 13 29
Treasury stock reissued under employee stock plan 2 5 4
Shares of common stock repurchased to satisfy tax withholding (1) (10) (7)
Payment of revolving credit agreement costs     (2)
Reduction in obligations under capital leases     (1)
Net cash used in financing activities (527) (616) (556)
Effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash (30) 50 3
Net change in cash, cash equivalents, and restricted cash (50) (42) 25
Cash, cash equivalents, restricted cash at beginning of year 1,031 1,073 1,048
Cash, cash equivalents, restricted cash at end of year 981 1,031 1,073
Cash Paid During the Year:      
Interest 11 11 11
Income taxes $ 184 $ 237 $ 341
[1] During the fourth quarter of 2017, the Company recorded a provisional $99 million tax liability for the mandatory deemed repatriation of foreign sourced net earnings and a corresponding change in our permanent reinvestment assertion under ASC 74030. During second, third, and fourth quarters 2018, the Company recorded benefits of $1 million, $23 million, and $4 million from the completion of the accounting for the Tax Act. See Note 17, Income Taxes for further information.Quarterly income per share amounts do not total to the annual amount due to changes in weighted-average shares outstanding during the year. Additionally, stock options and other potentially dilutive common shares were excluded from the computation of diluted earnings per common share for the quarter ended February 3, 2018 as the Company reported a net loss.
[2] During the fourth quarters of 2018 and 2017, the Company recorded pre-tax non-cash impairment charges totaling $19 million and $20 million, respectively. See Note 3, Litigation and Other Charges for further information.
[3] During the third quarter of 2017, the Company recorded a pre-tax charge of $13 million associated with the reorganization and the reduction in staff taken to improve efficiency. See Note 3, Litigation and Other Charges for further information.