Segment Information (Tables)

3 Months Ended

May 04, 2019

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 charges, corporate expense, non-operating income, and net interest income.

The following table summarizes our results:


	Thirteen weeks ended
	May 4,		May 5,
	2019		2018
	($ in millions)
Sales	$	2,078	$	2,025

Operating Results
Division profit		250		247
Less: Pension litigation charges (1)		1		12
Less: Corporate expense (2)		21		11
Income from operations		228		224
Interest income, net		4		2
Other income		2		3
Income before income taxes	$	234	$	229

3. Segment Information – (continued)

(1)

The Company recorded pre-tax charges of $1 million and $12 million for the quarters ended May 4, 2019 and May 5, 2018, respectively, related to a pension litigation matter and the related plan reformation. The charge in the current period reflects professional fees in connection with the plan reformation. The prior year charge reflected adjustments to the value of the judgment and interest that continued to accrue, as required by the provisions of the required plan reformation.

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