XML 37 R25.htm IDEA: XBRL DOCUMENT
v3.24.3

Revision of Consolidated Financial Statements for Correction of Immaterial Misstatement (Tables) | 9 Months Ended
--- | ---
Nov. 02, 2024
Accounting Changes and Error Corrections [Abstract] |
Revision of Consolidated Financial Statements for Correction of Immaterial Misstatement | Revision of Consolidated Financial Statements for Correction of Immaterial Misstatement During the preparation of the Company's unaudited consolidated financial statements for the fiscal quarter ended November 2, 2024, the Company identified an issue related to delivery expenses, a component of cost of sales, in one of its accrual accounts. The Company consequently initiated an independent investigation. As a result of the independent investigation and forensic analysis, the Company identified that a single employee with responsibility for small package delivery expense accounting intentionally made erroneous accounting accrual entries and falsified underlying documentation to hide approximately $151 million of cumulative delivery expenses from the fourth quarter of 2021 through the third quarter of 2024. The Company concluded that revisions should be made to its historical consolidated financial statements that were impacted by these misstatements to properly reflect delivery expense, the related accrual and tax effects. The total misstatement to delivery expense for the first half of fiscal 2024 amounted to approximately $9 million, which was adjusted in total during the third quarter of 2024. In accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, the Company evaluated the errors and determined that the related impact was not material to results of operations or financial position for any historical annual or interim period. Specifically, the errors identified did not impact net sales which the Company believes is a key financial metric of the users of the financial statements and do not impact trends in profitability or key financial statement operating metrics. The errors also did not impact the company’s cash management activities or vendor payments, net cash flows from operating activities or the Company’s compliance with its debt covenants. Based on this assessment and the consideration of both quantitative and qualitative factors, management determined that the errors are not material to any prior period. However, the Company is correcting such errors in the financial statements of this Form 10-Q by adjusting prior period financial statemen ts. As a result, the Company has revised, within this Form 10-Q, its consolidated financial statements as of and for each of the quarterly and year-to-date periods as shown below. Additionally, Note 2 – Earnings Per Share, has been adjusted to reflect the correction of the immaterial errors. Revised Consolidated Statements of Operations and Comprehensive Income (Loss)
|  | 52 Weeks Ended January 29, 2022 |  | 52 Weeks Ended January 28, 2023
|  | As Reported |  | Adjustment |  | As Corrected |  | As Reported |  | Adjustment |  | As Corrected
|  | (millions, except per share figures)
Cost of sales |  | $ | (14,956) |  |  | $ | (15) |  |  | $ | (14,971) |  |  | $ | (15,306) |  |  | $ | (41) |  |  | $ | (15,347) |
Operating income |  | 2,350 |  |  | (15) |  |  | 2,335 |  |  | 1,730 |  |  | (41) |  |  | 1,689 |
Income before income taxes |  | 1,866 |  |  | (15) |  |  | 1,851 |  |  | 1,518 |  |  | (41) |  |  | 1,477 |
Federal, state and local income tax expense |  | (436) |  |  | 4 |  |  | (432) |  |  | (341) |  |  | 10 |  |  | (331) |
Net income |  | 1,430 |  |  | (11) |  |  | 1,419 |  |  | 1,177 |  |  | (31) |  |  | 1,146 |
Basic earnings per share |  | 4.66 |  |  | (0.04) |  |  | 4.62 |  |  | 4.28 |  |  | (0.11) |  |  | 4.17 |
Diluted earnings per share |  | 4.55 |  |  | (0.03) |  |  | 4.52 |  |  | 4.19 |  |  | (0.11) |  |  | 4.08 |
Comprehensive income |  | 1,596 |  |  | (11) |  |  | 1,585 |  |  | 1,181 |  |  | (31) |  |  | 1,150 |
|  | 13 Weeks Ended April 29, 2023 |
|  | As Reported |  | Adjustment |  | As Corrected |
|  | (millions, except per share figures) |
Cost of sales |  | $ | (2,988) |  |  | $ | (4) |  |  | $ | (2,992) |  |
Operating income |  | 244 |  |  | (4) |  |  | 240 |  |
Income before income taxes |  | 211 |  |  | (4) |  |  | 207 |  |
Federal, state and local income tax expense |  | (56) |  |  | — |  |  | (56) |  |
Net income |  | 155 |  |  | (4) |  |  | 151 |  |
Basic earnings per share |  | 0.57 |  |  | (0.02) |  |  | 0.55 |  |
Diluted earnings per share |  | 0.56 |  |  | (0.01) |  |  | 0.55 |  |
Comprehensive income |  | 156 |  |  | (4) |  |  | 152 |  |
|  | 13 Weeks Ended July 29, 2023 |  | 26 Weeks Ended July 29, 2023
|  | As Reported |  | Adjustment |  | As Corrected |  | As Reported |  | Adjustment |  | As Corrected
|  | (millions, except per share figures)
Cost of sales |  | $ | (3,176) |  |  | $ | 4 |  |  | $ | (3,172) |  |  | $ | (6,164) |  |  | $ | (1) |  |  | $ | (6,165) |
Operating income |  | 124 |  |  | 4 |  |  | 128 |  |  | 368 |  |  | (1) |  |  | 367 |
Income (loss) before income taxes |  | (30) |  |  | 4 |  |  | (26) |  |  | 181 |  |  | (1) |  |  | 180 |
Federal, state and local income tax (expense) benefit |  | 8 |  |  | (1) |  |  | 7 |  |  | (48) |  |  | — |  |  | (48) |
Net income (loss) |  | (22) |  |  | 3 |  |  | (19) |  |  | 133 |  |  | (1) |  |  | 132 |
Basic earnings (loss) per share |  | (0.08) |  |  | 0.01 |  |  | (0.07) |  |  | 0.49 |  |  | (0.01) |  |  | 0.48 |
Diluted earnings (loss) per share |  | (0.08) |  |  | 0.01 |  |  | (0.07) |  |  | 0.48 |  |  | — |  |  | 0.48 |
Comprehensive income |  | 69 |  |  | 3 |  |  | 72 |  |  | 225 |  |  | (1) |  |  | 224 |
|  | 13 Weeks Ended October 28, 2023 |  | 39 Weeks Ended October 28, 2023
|  | As Reported |  | Adjustment |  | As Corrected |  | As Reported |  | Adjustment |  | As Corrected
|  | (millions, except per share figures)
Cost of sales |  | $ | (2,902) |  |  | $ | (3) |  |  | $ | (2,905) |  |  | $ | (9,067) |  |  | $ | (3) |  |  | $ | (9,070) |
Operating income |  | 86 |  |  | (3) |  |  | 83 |  |  | 453 |  |  | (3) |  |  | 450 |
Income before income taxes |  | 46 |  |  | (3) |  |  | 43 |  |  | 226 |  |  | (3) |  |  | 223 |
Federal, state and local income tax expense |  | (3) |  |  | 1 |  |  | (2) |  |  | (51) |  |  | 1 |  |  | (50) |
Net income |  | 43 |  |  | (2) |  |  | 41 |  |  | 175 |  |  | (2) |  |  | 173 |
Basic earnings per share |  | 0.16 |  |  | (0.01) |  |  | 0.15 |  |  | 0.64 |  |  | (0.01) |  |  | 0.63 |
Diluted earnings per share |  | 0.15 |  |  | — |  |  | 0.15 |  |  | 0.63 |  |  | (0.01) |  |  | 0.62 |
Comprehensive income |  | 10 |  |  | (2) |  |  | 8 |  |  | 234 |  |  | (2) |  |  | 232 |
|  | 13 Weeks Ended February 3, 2024 |  | 53 Weeks Ended February 3, 2024
|  | As Reported |  | Adjustment |  | As Corrected |  | As Reported |  | Adjustment |  | As Corrected
|  | (in millions, except share figures)
Cost of sales |  | $ | (5,076) |  |  | $ | (77) |  |  | $ | (5,153) |  |  | $ | (14,143) |  |  | $ | (81) |  |  | $ | (14,224) |
Operating income (loss) |  | (72) |  |  | (77) |  |  | (149) |  |  | 382 |  |  | (81) |  |  | 301 |
Income (loss) before income taxes |  | (103) |  |  | (77) |  |  | (180) |  |  | 124 |  |  | (81) |  |  | 43 |
Federal, state and local income tax (expense) benefit |  | 32 |  |  | 20 |  |  | 52 |  |  | (19) |  |  | 21 |  |  | 2 |
Net income (loss) |  | (71) |  |  | (57) |  |  | (128) |  |  | 105 |  |  | (60) |  |  | 45 |
Basic earnings (loss) per share |  | (0.26) |  |  | (0.21) |  |  | (0.47) |  |  | 0.38 |  |  | (0.22) |  |  | 0.16 |
Diluted earnings (loss) per share |  | (0.26) |  |  | (0.20) |  |  | (0.46) |  |  | 0.38 |  |  | (0.22) |  |  | 0.16 |
Comprehensive income (loss) |  | (7) |  |  | (57) |  |  | (64) |  |  | 227 |  |  | (60) |  |  | 167 |
Revised Consolidated Balance Sheets
| October 28, 2023
| As Reported |  | Adjustment |  | As Corrected
| (millions)
Current Assets: |  |  |  |  |
Income taxes | $ | 73 |  |  | $ | 15 |  |  | $ | 88 |
Total Current Assets | 7,070 |  |  | 15 |  |  | 7,085 |
Total Assets | 18,111 |  |  | 15 |  |  | 18,126 |
Current Liabilities: |  |  |  |  |
Accounts payable and accrued liabilities | 2,388 |  |  | 60 |  |  | 2,448 |
Total Current Liabilities | 6,014 |  |  | 60 |  |  | 6,074 |
Shareholders’ Equity: |  |  |  |  |
Accumulated equity | 6,261 |  |  | (45) |  |  | 6,216 |
Total Shareholders' Equity | 4,144 |  |  | (45) |  |  | 4,099 |
Total Liabilities and Shareholders’ Equity | 18,111 |  |  | 15 |  |  | 18,126 |
| February 3, 2024
| As Reported |  | Adjustment |  | As Corrected
| (millions)
Current Liabilities: |  |  |  |  |
Accounts payable and accrued liabilities | $ | 2,434 |  |  | $ | 137 |  |  | $ | 2,571 |
Income taxes | 83 |  |  | (35) |  |  | 48 |
Total Current Liabilities | 4,430 |  |  | 102 |  |  | 4,532 |
Shareholders’ Equity: |  |  |  |  |
Accumulated equity | 6,190 |  |  | (102) |  |  | 6,088 |
Total Shareholders' Equity | 4,137 |  |  | (102) |  |  | 4,035 |
| May 4, 2024
| As Reported |  | Adjustment |  | As Corrected
| (millions)
Current Liabilities: |  |  |  |  |
Accounts payable and accrued liabilities | $ | 2,088 |  |  | $ | 137 |  |  | $ | 2,225 |
Income taxes | 115 |  |  | (35) |  |  | 80 |
Total Current Liabilities | 4,550 |  |  | 102 |  |  | 4,652 |
Shareholders’ Equity: |  |  |  |  |
Accumulated equity | 6,227 |  |  | (102) |  |  | 6,125 |
Total Shareholders' Equity | 4,186 |  |  | (102) |  |  | 4,084 |
| August 3, 2024
| As Reported |  | Adjustment |  | As Corrected
| (millions)
Current Assets: |  |  |  |  |
Income taxes | $ | 12 |  |  | $ | 35 |  |  | $ | 47 |
Total Current Assets | 5,707 |  |  | 35 |  |  | 5,742 |
Total Assets | 15,833 |  |  | 35 |  |  | 15,868 |
Current Liabilities: |  |  |  |  |
Accounts payable and accrued liabilities | 1,990 |  |  | 137 |  |  | 2,127 |
Total Current Liabilities | 3,867 |  |  | 137 |  |  | 4,004 |
Shareholders’ Equity: |  |  |  |  |
Accumulated equity | 6,328 |  |  | (102) |  |  | 6,226 |
Total Shareholders' Equity | 4,303 |  |  | (102) |  |  | 4,201 |
Total Liabilities and Shareholders’ Equity | 15,833 |  |  | 35 |  |  | 15,868 |
Revised Consolidated Statement of Cash Flows
| 39 Weeks Ended October 28, 2023
| As Reported |  | Adjustment |  | As Corrected
| (millions)
Cash flows from operating activities: |  |  |  |  |
Net income | $ | 175 |  |  | $ | (2) |  |  | $ | 173 |
Changes in assets and liabilities: |  |  |  |  |
Decrease in accounts payable and accrued liabilities | (305) |  |  | 3 |  |  | (302) |
Decrease in current income taxes | (123) |  |  | (1) |  |  | (124) |
| 52 Weeks Ended January 28, 2023 |  | 53 Weeks Ended February 3, 2024
| As Reported |  | Adjustment |  | As Corrected |  | As Reported |  | Adjustment |  | As Corrected
| (millions)
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |
Net income | $ | 1,177 |  |  | $ | (31) |  |  | $ | 1,146 |  |  | $ | 105 |  |  | $ | (60) |  |  | $ | 45 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |  |
Decrease in accounts payable and accrued liabilities | (174) |  |  | 41 |  |  | (133) |  |  | (347) |  |  | 81 |  |  | (266) |
Decrease in current income taxes | (75) |  |  | (10) |  |  | (85) |  |  | 24 |  |  | (21) |  |  | 3 |

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

X
- Definition Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483443/250-10-50-8 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483443/250-10-50-7 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483443/250-10-50-9 + Details
Name: | us-gaap_ScheduleOfErrorCorrectionsAndPriorPeriodAdjustmentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration