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Restructuring | 12 Months Ended
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Feb. 03, 2024
Restructuring [Abstract] |
Restructuring | 3. Restructuring Restructuring charges were as follows ($ in millions):
|  |  |  |  |  | 2024 |  | 2023 |  | 2022
Fiscal 2024 Restructuring Initiative |  |  |  |  |  | $ | 171 |  |  | $ | - |  |  | $ | - |
Fiscal 2023 Resource Optimization Initiative |  |  |  |  |  |  | (18) |  |  |  | 145 |  |  |  | - |
Mexico Exit and Strategic Realignment(1) |  |  |  |  |  |  | - |  |  |  | 2 |  |  |  | (41) |
Fiscal 2020 U.S. Retail Operating Model Changes |  |  |  |  |  |  | - |  |  |  | - |  |  |  | 1 |
Total |  |  |  |  |  | $ | 153 |  |  | $ | 147 |  |  | $ | (40) |
(1)Includes ($6) million related to inventory markdowns recorded in Cost of sales on our Consolidated Statements of Earnings in fiscal 2022. Fiscal 2024 Restructuring Initiative During the fourth quarter of fiscal 2024, we commenced an enterprise-wide restructuring initiative intended to accomplish the following: (1) align field labor resources with where customers want to shop to optimize the customer experience; (2) redirect corporate resources for better alignment with our strategy; and (3) right-size resources to better align with our revenue outlook for fiscal 2025. All charges incurred related to this plan were comprised of employee termination benefits from continuing operations, including $163 million and $8 million within our Domestic and International segments, respectively, and were presented within Restructuring charges on our Consolidated Statements of Earnings. We currently expect to incur additional charges in fiscal 2025, primarily within our Domestic segment, of approximately $10 million to $30 million related to this plan. There were no cash payments related to this plan during fiscal 2024 and our termination benefits liability as of February 3, 2024, was $171 million, comprised of $163 million in our Domestic segment and $8 million in our International segment. We expect to pay up to $135 million of employee termination benefits during fiscal 2025, with the remainder being paid in fiscal 2026. Fiscal 2023 Resource Optimization Initiative During the second quarter of fiscal 2023, we commenced an enterprise-wide initiative to better align our spending with critical strategies and operations, as well as to optimize our cost structure. We do not expect to incur material future restructuring charges related to this plan. All charges incurred related to this plan were comprised of employee termination benefits from continuing operations and were presented within Restructuring charges on our Consolidated Statements of Earnings as follows ($ in millions):
|  |  |  |  |  | 2024 |  | 2023 |  | Cumulative Amount as of ‎February 3, 2024
Domestic |  |  |  |  |  | $ | (16) |  |  | $ | 140 |  |  | $ | 124 |
International |  |  |  |  |  |  | (2) |  |  |  | 5 |  |  |  | 3 |
Total |  |  |  |  |  | $ | (18) |  |  | $ | 145 |  |  | $ | 127 |
‎ Restructuring accrual activity related to this plan was as follows ($ in millions):
|  |  |  |  |  | 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 |
Cash payments |  |  |  |  |  |  | (70) |  |  |  | (3) |  |  |  | (73) |
Adjustments(1) |  |  |  |  |  |  | (16) |  |  |  | (2) |  |  |  | (18) |
Balances as of February 3, 2024 |  |  |  |  |  | $ | 16 |  |  | $ | - |  |  | $ | 16 |
(1)Represents adjustments primarily related to higher-than-expected employee retention from previously planned organizational changes. 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 February 3, 2024. All charges incurred related to this plan were from continuing operations and presented as follows ($ in millions):
| Statement of | 2022 |  | Cumulative Amount as of ‎February 3, 2024
| Earnings Location |  | Domestic |  | International |  | Total |  | Domestic |  | International |  | Total
Inventory markdowns | Cost of sales | $ | - |  |  | $ | (6) |  |  | $ | (6) |  |  | $ | - |  |  | $ | 17 |  |  | $ | 17 |
Asset impairments(1) | Restructuring charges |  | - |  |  |  | 6 |  |  |  | 6 |  |  |  | 10 |  |  |  | 63 |  |  |  | 73 |
Termination benefits | Restructuring charges |  | (40) |  |  |  | (1) |  |  |  | (41) |  |  |  | 83 |  |  |  | 20 |  |  |  | 103 |
Currency translation adjustment | Restructuring charges |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 39 |  |  |  | 39 |
Other(2) | Restructuring charges |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 6 |  |  |  | 6 |
|  |  |  |  |  | $ | (40) |  |  | $ | (1) |  |  | $ | (41) |  |  | $ | 93 |  |  | $ | 145 |  |  | $ | 238 |
(1)Remaining net carrying value of asset impairments approximates fair value and was immaterial as of February 3, 2024. (2)Other charges are primarily comprised of contract termination costs. No material restructuring accrual activity occurred in fiscal 2024 or fiscal 2023 related to this plan.

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- 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 -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//420/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479823/420-10-S99-2 + Details
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