XML 26 R12.htm IDEA: XBRL DOCUMENT
v3.22.4

Restructuring | 12 Months Ended
--- | ---
Jan. 28, 2023
Restructuring [Abstract] |
Restructuring | 3. Restructuring Restructuring charges were as follows ($ in millions):
|  |  |  |  |  | 2023 |  | 2022 |  | 2021
Fiscal 2023 Resource Optimization Initiative |  |  | $ | 145 |  |  | $ | - |  |  | $ | - |
Mexico Exit and Strategic Realignment(1) |  |  |  | 2 |  |  |  | (41) |  |  |  | 277 |
Fiscal 2020 U.S. Retail Operating Model Changes |  | - |  |  |  | 1 |  |  |  | - |
Total |  |  |  |  |  | $ | 147 |  |  | $ | (40) |  |  | $ | 277 |
(1)Includes ($6) million and $23 million related to inventory markdowns recorded in Cost of sales on our Consolidated Statements of Earnings in fiscal 2022 and fiscal 2021, respectively. Fiscal 2023 Resource Optimization Initiative In light of ongoing changes in business trends, during the second quarter of fiscal 2023, we commenced an enterprise-wide initiative to better align our spending with critical strategies and operations, as well as to optimize our cost structure. Charges incurred relate to employee termination benefits within our Domestic and International segments of $140 million and $5 million, respectively. We currently do not expect the remaining charges in fiscal 2024 related to this initiative to be material to the results of our operations. All charges incurred related to this initiative were from continuing operations and were presented within Restructuring charges on our Consolidated Statements of Earnings. Restructuring accrual activity related to the fiscal 2023 resource optimization initiative described above was as follows ($ in millions):
|  |  |  |  |  | Termination Benefits
|  |  |  |  |  | Domestic |  | International |  | Total
Balances as of January 29, 2022 |  |  |  |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Charges |  |  |  |  |  |  | 145 |  |  |  | 5 |  |  |  | 150 |
Cash payments |  |  |  |  |  |  | (38) |  |  |  | - |  |  |  | (38) |
Adjustments(1) |  |  |  |  |  |  | (5) |  |  |  | - |  |  |  | (5) |
Balances as of January 28, 2023 |  |  |  |  |  | $ | 102 |  |  | $ | 5 |  |  | $ | 107 |
(1)Represents adjustments to previously planned organizational changes and higher-than-expected employee retention. Mexico Exit and Strategic Realignment In the third quarter of fiscal 2021, we made the decision to exit our operations in Mexico and began taking other actions to more broadly align our organizational structure in support of our strategy. Charges incurred in our International segment primarily related to our decision to exit our operations in Mexico. All of our former stores in Mexico were closed as of the end of the first quarter of fiscal 2022. Charges incurred in our Domestic segment primarily related to actions taken to align our organizational structure in support of our strategy. We do not expect to incur material future restructuring charges related to this initiative and no material liability remains as of January 28, 2023. All charges incurred related to the exit from Mexico and strategic realignment described above were from continuing operations and were presented as follows ($ in millions):
| Statement of | 2022 |  | 2021
| Earnings Location |  | Domestic |  | International |  | Total |  | Domestic |  | International |  | Total
Inventory markdowns | Cost of sales | $ | - |  |  | $ | (6) |  |  | $ | (6) |  |  | $ | - |  |  | $ | 23 |  |  | $ | 23 |
Asset impairments(1) | Restructuring charges |  | - |  |  |  | 6 |  |  |  | 6 |  |  |  | 10 |  |  |  | 57 |  |  |  | 67 |
Termination benefits | Restructuring charges |  | (40) |  |  |  | (1) |  |  |  | (41) |  |  |  | 123 |  |  |  | 20 |  |  |  | 143 |
Currency translation adjustment | Restructuring charges |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 39 |  |  |  | 39 |
Other(2) | Restructuring charges |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 5 |  |  |  | 5 |
|  |  |  |  |  | $ | (40) |  |  | $ | (1) |  |  | $ | (41) |  |  | $ | 133 |  |  | $ | 144 |  |  | $ | 277 |
|  |  |  |  |  | Cumulative Amount as of January 28, 2023
| Statement of Earnings Location | Domestic |  | International |  | Total
Inventory markdowns | Cost of sales | $ | - |  |  | $ | 17 |  |  | $ | 17 |
Asset impairments(1) | Restructuring charges |  | 10 |  |  |  | 63 |  |  |  | 73 |
Termination benefits | Restructuring charges |  | 83 |  |  |  | 20 |  |  |  | 103 |
Currency translation adjustment | Restructuring charges |  | - |  |  |  | 39 |  |  |  | 39 |
Other(2) | Restructuring charges |  | - |  |  |  | 6 |  |  |  | 6 |
|  |  |  |  |  | $ | 93 |  |  | $ | 145 |  |  | $ | 238 |
(1)Remaining net carrying value of asset impairments approximates fair value and was immaterial as of January 28, 2023. (2)Other charges are primarily comprised of contract termination costs. No material restructuring accrual activity occurred in fiscal 2023 related to the exit from Mexico and strategic realignment described above. Restructuring accrual activity in fiscal 2022 related to this initiative was as follows ($ in millions):
|  |  |  |  |  | Termination Benefits
|  |  |  |  |  | Domestic |  | International |  | Total
Balances as of January 30, 2021 |  |  |  |  |  | $ | 104 |  |  | $ | 20 |  |  | $ | 124 |
Charges |  |  |  |  |  |  | 4 |  |  |  | - |  |  |  | 4 |
Cash payments |  |  |  |  |  |  | (57) |  |  |  | (18) |  |  |  | (75) |
Adjustments(1) |  |  |  |  |  |  | (44) |  |  |  | (1) |  |  |  | (45) |
Changes in foreign currency exchange rates |  |  |  | - |  |  |  | (1) |  |  |  | (1) |
Balances as of January 29, 2022 |  |  |  |  |  | $ | 7 |  |  | $ | - |  |  | $ | 7 |
(1)Represents adjustments to previously planned organizational changes in our Domestic segment and higher-than-expected employee retention in both our Domestic and International segments.

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI https://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI https://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration