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Basis of Presentation Basis of Accounting (Policies) | 6 Months Ended
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Aug. 04, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Basis of Accounting, Policy [Policy Text Block] | In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments necessary for a fair presentation as prescribed by accounting principles generally accepted in the United States (“GAAP”). All adjustments were comprised of normal recurring adjustments, except as noted in these Notes to Condensed Consolidated Financial Statements. Historically, we have generated a large proportion of our revenue and earnings in the fiscal fourth quarter, which includes the majority of the holiday shopping season in the U.S., Canada and Mexico. Due to the seasonal nature of our business, interim results are not necessarily indicative of results for the entire fiscal year. The interim financial statements and the related notes included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended February 3, 2018. The first six months of fiscal 2019 and fiscal 2018 included 26 weeks. In order to align our fiscal reporting periods and comply with statutory filing requirements, we consolidate the financial results of our Mexico operations on a one-month lag. Our policy is to accelerate recording the effect of events occurring in the lag period that significantly affect our condensed consolidated financial statements. No such events were identified for the reported periods. In preparing the accompanying condensed consolidated financial statements, we evaluated the period from August 5, 2018, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. Other than as disclosed in Note 13, Subsequent Event, no such events were identified for the reported periods.
Fiscal Period, Policy [Policy Text Block] | The first six months of fiscal 2019 and fiscal 2018 included 26 weeks. In order to align our fiscal reporting periods and comply with statutory filing requirements, we consolidate the financial results of our Mexico operations on a one-month lag. Our policy is to accelerate recording the effect of events occurring in the lag period that significantly affect our condensed consolidated financial statements.
New Accounting Pronouncements, Policy [Policy Text Block] | Unadopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases, which will require lessees to recognize most leases on their balance sheets related to the rights and obligations created by those leases, and will expand disclosure requirements. The new guidance was issued to increase transparency and comparability among companies. In July 2018, the FASB approved an amendment to the new guidance that allows companies the option of using the effective date of the new standard as the initial application (at the beginning of the period in which is it adopted, rather than at the beginning of the earliest comparative period). Based on the effective dates, we expect to adopt the new guidance in the first quarter of fiscal 2020 using the prospective method and have begun implementing required upgrades to our existing lease systems. While we expect adoption to lead to a material increase in the assets and liabilities recorded on our consolidated balance sheet and an increase to our footnote disclosures related to leases, we are still evaluating the impact on our consolidated statement of earnings. We also expect that adoption of the new standard will require changes to our internal controls over financial reporting. Adopted Accounting Pronouncements In the first quarter of fiscal 2019, we prospectively adopted the following ASUs, all of which had an immaterial impact on our results of operations, cash flows and financial position.
• | ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory
• | ASU 2017-12, Derivatives and Hedging
• | ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
In the first quarter of fiscal 2019, we also adopted ASU 2014-09, Revenue from Contracts with Customers. The new guidance establishes a single comprehensive model for entities to use in accounting for revenue and supersedes most revenue recognition guidance. It introduces a five-step process for revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards under previous guidance. We elected the modified retrospective method of adoption, which we applied to contracts not completed at the date of adoption. Under this method, we recorded an increase to opening retained earnings of $73 million, net of tax, due to the cumulative impact of these changes. The impact was primarily related to the timing of revenue recognition related to our gift cards, the sale of certain software licenses and our loyalty programs. We did not make any adjustment to prior period financial statements. We expect the impact of adoption to be immaterial to our revenue, net earnings and cash flows on an ongoing basis. As part of the adoption, we also modified certain control procedures and processes, none of which had a material effect on our internal controls over financial reporting. The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet on February 4, 2018, for the adoption of this standard was as follows ($ in millions):
| February 3, 2018 As Reported |  | ASU 2014-09 Adjustment on February 4, 2018 |  | February 4, 2018 Adjusted
Assets |  |  |  |  |
Other assets | $ | 374 |  |  | $ | (19 | ) |  | $ | 355 |
Liabilities |  |  |  |  |
Unredeemed gift card liabilities | 385 |  |  | (69 | ) |  | 316 |
Deferred revenue | 453 |  |  | (26 | ) |  | 427 |
Accrued liabilities | 864 |  |  | (3 | ) |  | 861 |
Accrued income taxes | 137 |  |  | 6 |  |  | 143 |
Equity |  |  |  |  |
Retained earnings | 3,270 |  |  | 73 |  |  | 3,343 |
The following tables reflect the impact of adopting this standard on our Condensed Consolidated Balance Sheets as of August 4, 2018, and our Condensed Consolidated Statements of Earnings for the three and six months ended August 4, 2018 ($ in millions, except per share amounts):
| August 4, 2018
Impact of Changes to Condensed Consolidated Balance Sheets | As Reported |  | Balances without Adoption of ASU 2014-09 |  | Effect of Change Higher/(Lower)(1)
Assets |  |  |  |  |
Other current assets | $ | 510 |  |  | $ | 461 |  |  | $ | 49 |
Other assets | 365 |  |  | 384 |  |  | (19 | )
Liabilities |  |  |  |  |
Unredeemed gift card liabilities | 275 |  |  | 344 |  |  | (69 | )
Deferred revenue | 438 |  |  | 462 |  |  | (24 | )
Accrued liabilities | 801 |  |  | 754 |  |  | 47 |
Accrued income taxes | 12 |  |  | 6 |  |  | 6 |
Equity |  |  |  |  |
Retained earnings | 2,863 |  |  | 2,793 |  |  | 70 |
(1) | Effect of change includes the opening retained earnings adjustment as detailed within the table above.
| Three Months Ended August 4, 2018
Impact of Changes to Condensed Consolidated Statements of Earnings | As Reported |  | Balances without Adoption of ASU 2014-09 |  | Effect of Change Higher/(Lower)
Revenue | $ | 9,379 |  |  | $ | 9,368 |  |  | $ | 11 |
Cost of goods sold | 7,150 |  |  | 7,138 |  |  | 12 |
Gross profit | 2,229 |  |  | 2,230 |  |  | (1 | )
Operating income | 335 |  |  | 336 |  |  | (1 | )
Income tax expense | 85 |  |  | 85 |  |  | — |
Net earnings | 244 |  |  | 245 |  |  | (1 | )
Basic earnings per share | $ | 0.88 |  |  | $ | 0.88 |  |  | $ | — |
Diluted earnings per share | $ | 0.86 |  |  | $ | 0.86 |  |  | $ | — |
| Six Months Ended August 4, 2018
Impact of Changes to Condensed Consolidated Statements of Earnings | As Reported |  | Balances without Adoption of ASU 2014-09 |  | Effect of Change Higher/(Lower)
Revenue | $ | 18,488 |  |  | $ | 18,468 |  |  | $ | 20 |
Cost of goods sold | 14,134 |  |  | 14,111 |  |  | 23 |
Gross profit | 4,354 |  |  | 4,357 |  |  | (3 | )
Operating income | 600 |  |  | 603 |  |  | (3 | )
Income tax expense | 134 |  |  | 135 |  |  | (1 | )
Net earnings | 452 |  |  | 454 |  |  | (2 | )
Basic earnings per share | $ | 1.61 |  |  | $ | 1.62 |  |  | $ | (0.01 | )
Diluted earnings per share | $ | 1.58 |  |  | $ | 1.59 |  |  | $ | (0.01 | )
Total Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the total shown within the Condensed Consolidated Statements of Cash Flows as of August 4, 2018, February 3, 2018, and July 29, 2017 ($ in millions):
| August 4, 2018 |  | February 3, 2018 |  | July 29, 2017
Cash and cash equivalents | $ | 1,865 |  |  | $ | 1,101 |  |  | $ | 1,365 |
Restricted cash included in Other current assets | 203 |  |  | 199 |  |  | 196 |
Total cash, cash equivalents and restricted cash | $ | 2,068 |  |  | $ | 1,300 |  |  | $ | 1,561 |
Amounts included in restricted cash are pledged as collateral or restricted to use for general liability insurance and workers' compensation insurance.

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