0000850209-20-000027 | 10-Q | XBRL Viewer

Twenty-six weeks ended

August 1, 2020

August 3, 2019

($ in millions)

Outstanding

Outstanding and exercisable

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Aug. 01, 2020	Aug. 28, 2020
Document And Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Aug. 01, 2020
Entity File Number	1-10299
Entity Registrant Name	FOOT LOCKER, INC.
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	13-3513936
Entity Address, Address Line One	330 West 34th Street
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10001
City Area Code	212
Local Phone Number	720-3700
Title of 12(b) Security	Common Stock
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		104,391,265
Entity Central Index Key	0000850209
Current Fiscal Year End Date	--01-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false
Trading Symbol	FL
Entity Interactive Data Current	Yes
Document Quarterly Report	true
Document Transition Report	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions

Aug. 01, 2020

Feb. 01, 2020

^[1]

Aug. 03, 2019

Current assets:

Cash and cash equivalents

$ 1,373

$ 907

$ 939

Merchandise inventories

1,194

1,208

1,227

Other current assets

266

271

280

Assets, current, total

2,833

2,386

2,446

Property and equipment, net

782

824

796

Operating lease right-of-use assets

2,810

2,899

2,976

Deferred taxes

Goodwill

158

156

Other intangible assets, net

Other assets

240

223

233

Total assets

6,912

6,589

6,720

Current liabilities:

Accounts payable

630

333

420

Accrued and other liabilities

455

343

312

Current portion of lease obligations

587

518

497

Liabilities, current, total

1,672

1,194

1,229

Long-term debt and obligations under finance leases

124

122

123

Long-term lease obligations

2,579

2,678

2,750

Other liabilities

134

122

106

Total liabilities

4,509

4,116

4,208

Shareholders' equity:

Common stock and paid-in capital: 104,391,691; 113,119,460; and 104,187,310 shares outstanding, respectively

774

764

825

Retained earnings

1,996

2,103

2,226

Accumulated other comprehensive loss

(367)

(394)

(384)

Less: Treasury stock at cost: 426; 3,578,395; and -- shares, respectively

(155)

Total shareholders' equity

2,403

2,473

2,512

Liabilities and equity, total

$ 6,912

$ 6,589

$ 6,720

[1]

The balance sheet at February 1, 2020 has been derived from the previously reported audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in Foot Locker, Inc.’s Annual Report on Form 10-K for the year ended February 1, 2020.

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Aug. 01, 2020	Feb. 01, 2020	Aug. 03, 2019
CONSOLIDATED BALANCE SHEETS [Abstract]
Common Stock, Shares Outstanding, Issued, Total	104,391,691	104,187,310	113,119,460
Treasury Stock, Shares	426		3,578,395

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
Sales	$ 2,077	$ 1,774	$ 3,253	$ 3,852
Cost of sales	1,539	1,240	2,444	2,629
Selling, general and administrative expenses	387	393	703	809
Depreciation and amortization	44	46	88	90
Impairment and other charges	38	14	54	15
Income from operations	69	81	(36)	309
Interest (expense) income, net	(2)	2	(3)	6
Other income, net	3	2	4	4
(Loss) Income before income taxes	70	85	(35)	319
Income tax expense	25	25	30	87
Net (loss) income	$ 45	$ 60	$ (65)	$ 232
Basic earnings per share	$ 0.43	$ 0.55	$ (0.62)	$ 2.09
Weighted-average shares outstanding	104.5	110.8	104.4	111.6
Diluted earnings per share	$ 0.43	$ 0.55	$ (0.62)	$ 2.08
Weighted-average shares outstanding, assuming dilution	105.1	111.1	104.4	112.1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net Income (loss)	$ 45	$ 60	$ (65)	$ 232
Foreign currency translation adjustment:
Translation adjustment arising during the period, net of income tax of $4, $-, $2, and $1, respectively	36	(6)	20	(21)
Cash flow hedges:
Change in fair value of derivatives, net of income tax benefit of $-, $-, $1, and $- respectively		5	3	3
Pension and postretirement adjustments:
Amortization of net actuarial gain/loss and prior service cost included in net periodic benefit costs, net of income tax expense of $1, $-, $2 and $-, respectively	1	1	4	4
Comprehensive income	$ 82	$ 60	$ (38)	$ 218

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net income tax benefit on translation adjustment	$ 4	$ 0	$ 2	$ 1
Change in fair value of derivatives, income tax benefit	0	0	1	0
Amortization of net actuarial gain/loss and prior service cost included in net periodic benefit costs, income tax expense	$ 1	$ 0	$ 2	$ 0

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)
$ in Millions

Additional Paid-In Capital & Common Stock

Treasury Stock

Retained Earnings

Accumulated Other Comprehensive Loss

Total

Beginning Balance at Feb. 02, 2019

$ 809

$ (37)

$ 2,104

$ (370)

$ 2,506

Beginning Balance (in shares) at Feb. 02, 2019

112,933,000

Beginning Balance (in treasury shares) at Feb. 02, 2019

(711,000)

Restricted stock issued (in shares)

88,000

Issued under director and stock plans

$ 3

Issued under director and stock plans (in shares)

179,000

Share-based compensation expense

$ 13

Shares of common stock used to satisfy tax withholding obligations

$ (2)

(2)

Shares of common stock used to satisfy tax withholding obligations (in shares)

(32,000)

Share repurchases

$ (122)

(122)

Share repurchases (in shares)

(2,932,000)

Reissued - employee stock purchase plan

$ 6

Reissued - employee stock purchase plan (in shares)

96,000

Net Income (loss)

232

Cash dividends declared on common stock ($0.40 and $0.38 per share as of August 1, 2020 and August 3, 2019 respectively)

(84)

Translation adjustment, net of tax

(21)

Change in cash flow hedges, net of tax

Pension and postretirement adjustments, net of tax

Cumulative effect of the adoption new ASUs

(26)

Ending Balance at Aug. 03, 2019

$ 825

$ (155)

2,226

(384)

$ 2,512

Ending Balance (in shares) at Aug. 03, 2019

113,200,000

Ending Balance (in treasury shares) at Aug. 03, 2019

(3,579,000)

(3,578,395)

Beginning Balance at May. 04, 2019

$ 820

$ (41)

2,207

(384)

$ 2,602

Beginning Balance (in shares) at May. 04, 2019

113,161,000

Beginning Balance (in treasury shares) at May. 04, 2019

(774,000)

Restricted stock issued (in shares)

16,000

Issued under director and stock plans

$ (1)

(1)

Issued under director and stock plans (in shares)

23,000

Share-based compensation expense

$ 6

Shares of common stock used to satisfy tax withholding obligations (in shares)

(1,000)

Share repurchases

$ (120)

(120)

Share repurchases (in shares)

(2,900,000)

Reissued - employee stock purchase plan

$ 6

Reissued - employee stock purchase plan (in shares)

96,000

Net Income (loss)

Cash dividends declared on common stock ($0.40 and $0.38 per share as of August 1, 2020 and August 3, 2019 respectively)

(41)

Translation adjustment, net of tax

(6)

Change in cash flow hedges, net of tax

Pension and postretirement adjustments, net of tax

Ending Balance at Aug. 03, 2019

$ 825

$ (155)

2,226

(384)

$ 2,512

Ending Balance (in shares) at Aug. 03, 2019

113,200,000

Ending Balance (in treasury shares) at Aug. 03, 2019

(3,579,000)

(3,578,395)

Beginning Balance at Feb. 01, 2020

$ 764

2,103

(394)

$ 2,473

^[1]

Beginning Balance (in shares) at Feb. 01, 2020

104,188,000

Beginning Balance (in treasury shares) at Feb. 01, 2020

Restricted stock issued (in shares)

67,000

Issued under director and stock plans

$ 3

Issued under director and stock plans (in shares)

137,000

Share-based compensation expense

$ 7

Shares of common stock used to satisfy tax withholding obligations (in shares)

(23,000)

Reissued - employee stock purchase plan (in shares)

23,000

Net Income (loss)

(65)

Cash dividends declared on common stock ($0.40 and $0.38 per share as of August 1, 2020 and August 3, 2019 respectively)

(42)

Translation adjustment, net of tax

Change in cash flow hedges, net of tax

Pension and postretirement adjustments, net of tax

Ending Balance at Aug. 01, 2020

$ 774

1,996

(367)

$ 2,403

Ending Balance (in shares) at Aug. 01, 2020

104,392,000

Ending Balance (in treasury shares) at Aug. 01, 2020

(426)

Beginning Balance at May. 02, 2020

$ 767

1,951

(404)

$ 2,314

Beginning Balance (in shares) at May. 02, 2020

104,245,000

Beginning Balance (in treasury shares) at May. 02, 2020

(23,000)

Restricted stock issued (in shares)

13,000

Issued under director and stock plans

$ 3

Issued under director and stock plans (in shares)

134,000

Share-based compensation expense

$ 4

Reissued - employee stock purchase plan (in shares)

23,000

Net Income (loss)

Translation adjustment, net of tax

Pension and postretirement adjustments, net of tax

Ending Balance at Aug. 01, 2020

$ 774

$ 1,996

$ (367)

$ 2,403

Ending Balance (in shares) at Aug. 01, 2020

104,392,000

Ending Balance (in treasury shares) at Aug. 01, 2020

(426)

[1]

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended	6 Months Ended
	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
Statement of Stockholders' Equity [Abstract]
Cash dividends declared on common stock, per share	$ 0.38	$ 0.40	$ 0.76

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019
From operating activities:
Net Income (loss)	$ (65)	$ 232
Adjustments to reconcile net income to net cash provided by operating activities:
Impairment charges	31
Depreciation and amortization	88	90
Deferred income taxes	22	(10)
Share-based compensation expense	7	13
Qualified pension plan contributions		(55)
Change in assets and liabilities:
Merchandise inventories	12	32
Accounts payable	291	37
Accrued and other liabilities	142	(40)
Other, net	78	29
Net cash provided by operating activities	606	328
From investing activities:
Capital expenditures	(83)	(81)
Minority investments	(8)	(45)
Net cash used in investing activities	(91)	(126)
From financing activities:
Proceeds from the revolving credit facility	330
Repayment of the revolving credit facility	(330)
Payment of revolving credit agreement costs	(4)
Purchase of treasury shares		(122)
Dividends paid on common stock	(42)	(84)
Issuance of common stock		4
Treasury stock reissued under employee stock plan		3
Proceeds from common stock issued under employee stock plans	2
Shares of common stock repurchased to satisfy tax withholding obligations		(2)
Net cash used in financing activities	(44)	(201)
Effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash	(3)	(8)
Net change in cash, cash equivalents, and restricted cash	468	(7)
Cash, cash equivalents, and restricted cash at beginning of year	942	981
Cash, cash equivalents, and restricted cash at end of period	1,410	974
Cash paid during the year:
Interest	7	5
Income taxes	11	111
Non-cash investing and financing activities:
Capital Lease Obligations Exchanged for Finance Lease Liability	4
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	135	114
Operating Lease, Payments	$ 279	$ 338

Summary of Significant Accounting Policies

6 Months Ended

Aug. 01, 2020

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

1. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements contained in this report are unaudited. In the opinion of management, the condensed consolidated financial statements include all normal, recurring adjustments necessary for a fair presentation of the results for the interim periods presented. As used in these Notes to Condensed Consolidated Financial Statements (Unaudited) the terms “Foot Locker,” “Company,” “we,” “our,” and “us” refer to Foot Locker, Inc. and its consolidated subsidiaries.

The preparation of financial statements in accordance with generally accepted accounting principles requires us to make estimates and assumptions that affect the amounts reported in the accompanying Unaudited Condensed Consolidated Financial Statements and these Notes and related disclosures. Actual results may differ from those estimates. The results of operations for any interim period are not necessarily indicative of the results expected for the year. The results of operations for the periods ended August 1, 2020 are not necessarily indicative of the results to be expected for the full fiscal year due to the continued uncertainty of general economic conditions that may affect us for the remainder of 2020. Specifically, we are uncertain of the extent to which the coronavirus (“COVID-19”) pandemic will affect our sales, traffic to our stores, including our distribution capabilities and those of our suppliers.

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Notes to Consolidated Financial Statements contained in Foot Locker, Inc.’s Form 10-K for the year ended February 1, 2020, as filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 27, 2020.

Other than the changes to the Goodwill policies as a result of the recently adopted accounting standards discussed below, there were no significant changes to the policies disclosed in Note 1, Summary of Significant Accounting Policies of our Annual Report on Form 10-K for the year ended February 1, 2020.

Recent Accounting Pronouncements

On February 2, 2020, we adopted FASB guidance on the accounting for implementation costs of a cloud computing arrangement that is considered to be a service contract, that requires companies to follow the guidance for internal-use software to determine which costs to capitalize in a cloud computing arrangement that is a service contract. Under this guidance, such implementation costs will be capitalized in Other assets on the Condensed Consolidated Balance Sheet, with the related amortization presented in Selling, general and administrative expenses on the Condensed Consolidated Statement of Operations. This guidance was applied prospectively to implementation costs incurred after February 2, 2020. The adoption of this guidance did not have a significant effect on our condensed consolidated financial statements.

On February 2, 2020, we adopted FASB’s updated guidance on the accounting for performing goodwill impairment tests. This update eliminates the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. In testing goodwill for impairment, an entity may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment indicates that goodwill impairment is more likely than not, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit to its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Refer to our updated accounting policy in Note 6, Goodwill.

Other recently issued accounting pronouncements did not, or are not believed by management to, have a material effect on our present or future consolidated financial statements.

Revenue

6 Months Ended

Aug. 01, 2020

Revenue [Abstract]

Revenue

2. Revenue

The following table presents sales disaggregated based upon sales channel.


	Thirteen weeks ended				Twenty-six weeks ended
	August 1,		August 3,		August 1,		August 3,
($ in millions)	2020		2019		2020		2019
Sales by Channel
Stores	$	1,388	$	1,521	$	2,202	$	3,279
Direct-to-customers		689		253		1,051		573
Total sales	$	2,077	$	1,774	$	3,253	$	3,852

Sales disaggregated based upon geographic area is presented in the table below. Sales are attributable to the geographic area in which the sales transaction is fulfilled.


	Thirteen weeks ended				Twenty-six weeks ended
	August 1,		August 3,		August 1,		August 3,
($ in millions)	2020		2019		2020		2019
Sales by Geography
United States	$	1,529	$	1,209	$	2,440	$	2,761
International		548		565		813		1,091
Total sales	$	2,077	$	1,774	$	3,253	$	3,852

Contract Liabilities

We sell gift cards which do not have expiration dates. Revenue from gift card sales is recorded when the gift cards are redeemed by customers. Breakage income is recognized as revenue in proportion to the pattern of rights exercised by the customer. The table below presents the activity of our gift card liability balance:



($ in millions)	August 1, 2020		August 3, 2019
Gift card liability at beginning of year	$	35	$	35
Redemptions		(37)		(47)
Breakage recognized in sales		(3)		(3)
Activations		36		43
Gift card liability	$	31	$	28

We elected not to disclose the information about remaining performance obligations since the amount of gift cards redeemed after 12 months is not significant.

Segment Information

6 Months Ended

Aug. 01, 2020

Segment Information [Abstract]

Segment Information

3. Segment Information

We have integrated all available shopping channels including stores, websites, apps, social channels, and catalogs. Store sales are primarily fulfilled from the store’s inventory but may also be shipped from any of our distribution centers or from a different store location if an item is not available at the original store. Direct-to-customer orders are generally shipped to our customers through our distribution centers but may also be shipped from any store or a combination of our distribution centers and stores depending on the availability of particular items.

We evaluate 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, impairment and other charges, corporate expense, non-operating income, and net interest (expense) income. The following table summarizes our results:


	Thirteen weeks ended				Twenty-six weeks ended
	August 1,		August 3,		August 1,		August 3,
($ in millions)	2020		2019		2020		2019
Sales	$	2,077	$	1,774	$	3,253	$	3,852

Operating Results
Division profit		125		115	$	46	$	365
Less: Impairment and other charges ⁽¹⁾		38		14		54		15
Less: Corporate expense ⁽²⁾		18		20		28		41
Income (loss) from operations		69		81		(36)		309
Interest (expense) income, net		(2)		2		(3)		6
Other income, net		3		2		4		4
Income (loss) before income taxes	$	70	$	85	$	(35)	$	319

(1)	During the thirteen and twenty-six weeks ended August 1, 2020 and August 3, 2019, we recorded pre-tax charges as detailed in Note 4, Impairment and Other Charges.

(2)

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

Impairment and Other Charges

6 Months Ended

Aug. 01, 2020

Impairment and Other Charges [Abstract]

Impairment and Other Charges

4. Impairment and Other Charges


	Thirteen weeks ended				Twenty-six weeks ended
	August 1,		August 3,		August 1,		August 3,
($ in millions)	2020		2019		2020		2019
Losses related to social unrest	$	18	$	—	$	18	$	—
Runners Point shut down		16		—		16		—
Impairment of long-lived assets and right-of-use assets		—		—		15		—
Eastbay reorganization		3		—		3		—
Pension litigation related charges		1		1		2		2
Lease termination costs		—		13		—		13
Total impairment and other charges	$	38	$	14	$	54	$	15

We recorded charges of $18 million related to social unrest in the second quarter, which resulted in physical damage and inventory loss to approximately 135 stores. This charge included inventory losses of $14 million, damages to store property of $2 million, and repairs and other costs of $2 million. We are currently working with our insurers to determine the amount of our covered losses under our property insurance policy. Insurance recovery for losses in excess of our deductible will be recorded in the period in which we conclude our settlement discussions with our insurance providers.

In May 2020, we made the strategic decision to shut down our Runners Point business and to consolidate our Sidestep support staff into our other operations in Europe. Also, as part of the next phase of the Champs Sports and Eastbay strategic initiative, we restructured positions and aligned several functions across the banners and plan to consolidate certain Eastbay operations from Wausau, Wisconsin into the Champs Sports headquarters in Bradenton, Florida. We recorded charges of $16 million related to the shutdown of the Runners Point business and $3 million related to the reorganization associated with Eastbay.

As part of the decision to close the Runners Point banner, certain Runners Point stores will convert to other banners and approximately 40 Runners Point and Sidestep stores will close prior to their natural lease expiration. The following table presents a rollforward of our restructuring liability, which is recorded in Accrued and other liabilities on the Condensed Consolidated Balance Sheets. The remaining restructuring liability at August 1, 2020, which primarily relates to severance payments, is expected to be substantially paid within the next twelve months.


($ in millions)	Runners Point		Eastbay		Total
Balance as of February 1, 2020	$	—	$	—	$	—
Charges		16		3		19
Payments		(2)		(2)		(4)
Foreign currency fluctuations		1		—		1
Balance as of August 1, 2020	$	15	$	1	$	16

Due to the COVID-19 pandemic and its effect on our actual and projected results, during the first quarter of 2020 we determined that a triggering event occurred for certain underperforming stores operating in Europe and, therefore, we conducted an impairment review. We evaluated the long-lived assets, including the right-of-use assets, of 70 stores and recorded non-cash charges of $15 million to write down store fixtures, leasehold improvements, and right-of-use assets.

The Company and its U.S. pension plan were involved in litigation related to the conversion of the plan to a cash balance plan. The court entered its final judgment in 2018, which required the plan to be reformed as directed by the court order. We recorded charges of $2 million for both the twenty-six weeks ended August 1, 2020 and August 3, 2019 related to administrative expenses in connection with the reformation. For the twenty-six weeks ended August 3, 2019, we incurred $13 million of lease termination costs related to the closure of our SIX:02 locations.

Cash, Cash Equivalents, and Restricted Cash

6 Months Ended

Aug. 01, 2020

Restricted Cash [Abstract]

Cash, Cash Equivalents, and Restricted Cash

5. Cash, Cash Equivalents, and Restricted Cash

The following table provides a reconciliation of cash and cash equivalents, as reported on our Condensed Consolidated Balance Sheets, to cash, cash equivalents, and restricted cash, as reported on our Condensed Consolidated Statements of Cash Flows.


	August 1,		August 3,		February 1,
($ in millions)	2020		2019		2020
Cash and cash equivalents	$	1,373	$	939	$	907
Restricted cash included in other current assets		7		5		6
Restricted cash included in other non-current assets		30		30		29
Cash, cash equivalents, and restricted cash	$	1,410	$	974	$	942

Amounts included in restricted cash primarily relate to amounts held in escrow in connection with various leasing arrangements in Europe and deposits held in insurance trusts to satisfy the requirement to collateralize part of the self-insured workers’ compensation and liability claims.

Goodwill

6 Months Ended

Aug. 01, 2020

Goodwill and Other Intangible Assets, Net [Abstract]

Goodwill

6. Goodwill

We review goodwill for impairment annually during the first quarter of each fiscal year, or more frequently if impairment indicators arise. The review of impairment consists of either using a qualitative approach to determine whether it is more likely than not that the fair value of the assets is less than their respective carrying values or a one-step quantitative impairment test.

In performing the qualitative assessment, we consider many factors in evaluating whether the carrying value of goodwill may not be recoverable, including declines in our stock price and market capitalization in relation to the book value of the Company and macroeconomic conditions affecting retail. If, based on the results of the qualitative assessment, it is concluded that it is not more likely than not that the fair value of a reporting unit exceeds its carrying value, additional quantitative impairment testing is performed. The quantitative test requires that the carrying value of each reporting unit be compared with its estimated fair value. If the carrying value of a reporting unit is greater than its fair value, a goodwill impairment charge will be recorded for the difference (up to the carrying value of goodwill).

We use a discounted cash flow approach to determine the fair value of a reporting unit. The determination of discounted cash flows of the reporting units and assets and liabilities within the reporting units requires significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to, the discount rate, terminal growth rates, earnings before depreciation and amortization, and capital expenditures forecasts. Due to the inherent uncertainty involved in making these estimates, actual results could differ from those estimates. We evaluate the merits of each significant assumption, both individually and in the aggregate, used to determine the fair value of the reporting units, as well as the fair values of the corresponding assets and liabilities within the reporting units.

In addition to performing our qualitative assessment of as the beginning of the year, we performed an additional quantitative assessment during the first quarter due to the COVID-19 pandemic and its effect on our results and stock price. Neither assessment resulted in the recognition of impairment.

Other Intangible Assets, Net

6 Months Ended

Aug. 01, 2020

Goodwill and Other Intangible Assets, Net [Abstract]

Other Intangible Assets, Net

7. Other Intangible Assets, net

The components of finite-lived intangible assets and intangible assets not subject to amortization are as follows:


		August 1, 2020						August 3, 2019						February 1, 2020
	Gross		Accum.		Net		Gross		Accum.		Net		Gross		Accum.		Net
($ in millions)	value		amort.		value		value		amort.		value		value		amort.		value
Amortized intangible assets: ⁽¹⁾
Lease acquisition costs	$	119	$	(113)	$	6	$	116	$	(108)	$	8	$	115	$	(108)	$	7
Trademarks / trade names		20		(16)		4		20		(15)		5		20		(16)		4
	$	139	$	(129)	$	10	$	136	$	(123)	$	13	$	135	$	(124)	$	11

Indefinite life intangible assets: ⁽¹⁾
Trademarks / trade names					$	9					$	8					$	9
Other intangible assets, net					$	19					$	21					$	20

(1)	The change in the ending balances also reflects the effect of foreign currency fluctuations due primarily to movements of the euro in relation to the U.S. dollar.

The annual review of intangible assets with indefinite lives performed during the first quarter of 2020 did not result in the recognition of impairment.

Amortization expense recorded is as follows:


	Thirteen weeks ended					Twenty-six weeks ended
	August 1,		August 3,			August 1,	August 3,
($ in millions)	2020		2019			2020	2019
Amortization expense	$	1	$	1	$	2	$	2

Estimated future amortization expense for finite-life intangible assets is as follows:


	($ in millions)
Remainder of 2020	$	2
2021		2
2022		2
2023		2
2024		1
2025		1

Revolving Credit Facility

6 Months Ended

Aug. 01, 2020

Revolving Credit Facility [Abstract]

Revolving Credit Facility

8. Revolving Credit Facility

In the first quarter of 2020, we borrowed $330 million under our revolving credit facility. During the second quarter of 2020, we repaid the amount borrowed. On July 14, 2020, we amended to our credit agreement with the banks (as amended, “2020 Credit Agreement”). The 2020 Credit Agreement now provides for a $600 million asset-based revolving credit facility maturing on July 14, 2025.

At our option, interest is determined by either (1) the eurodollar rate, determined by reference to LIBOR, plus a margin of 1.75 percent to 2.25 percent per annum, or (2) the base rate, determined by reference to the federal funds rate, plus a margin of 0.75 percent to 1.25 percent, in each case, depending on availability under the 2020 Credit Agreement. In addition, we are paying a commitment fee of 0.50 percent per annum on the unused portion of the commitments under the 2020 Credit Agreement.

If certain specified events of default have occurred and are continuing, or if availability under the 2020 Credit Agreement is less than or equal to the greater of $60 million and 10 percent of the Loan Cap (as defined in the 2020 Credit Agreement), we are required to test compliance with a minimum consolidated fixed charge coverage ratio of 1.00 as of the end of each fiscal quarter.

Long-Term Debt

6 Months Ended

Aug. 01, 2020

Long-Term Debt [Abstract]

Long-Term Debt

9. Long-Term Debt and Obligations Under Finance Leases

The components of long-term debt and obligations under finance leases are as follows:


($ in millions)	August 1, 2020		August 3, 2019		February 1, 2020
8.5% debentures payable 2022	$	118	$	118	$	118
Unamortized gain related to interest rate swaps⁽¹⁾		3		5		4
Obligations under finance leases		3		—		—
	$	124	$	123	$	122

(1)	In 2009, we terminated an interest rate swap at a gain. This gain is being amortized as part of interest expense over the remaining term of the debt using the effective-yield method.

The current portion of obligations under finance leases was $1 million at August 1, 2020 and is included in Accrued and Other liabilities.

Accumulated Other Comprehensive Loss

6 Months Ended

Aug. 01, 2020

Accumulated Other Comprehensive Loss [Abstract]

Accumulated Other Comprehensive Loss

10. Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss (“AOCL”), net of tax, is comprised of the following:


	August 1,		August 3,		February 1,
($ in millions)	2020		2019		2020
Foreign currency translation adjustments	$	(84)	$	(105)	$	(104)
Cash flow hedges		—		3		(3)
Unrecognized pension cost and postretirement benefit		(283)		(282)		(287)
	$	(367)	$	(384)	$	(394)

The changes in AOCL for the twenty-six weeks ended August 1, 2020 were as follows:


	Foreign				Items Related
	Currency				to Pension and
	Translation		Cash Flow		Postretirement
($ in millions)	Adjustments		Hedges		Benefits		Total
Balance as of February 1, 2020	$	(104)	$	(3)	$	(287)	$	(394)

OCI before reclassification		20		3		—		23
Amortization of pension actuarial loss, net of tax		—		—		4		4
Other comprehensive income		20		3		4		27
Balance as of August 1, 2020	$	(84)	$	—	$	(283)	$	(367)

Reclassifications from AOCL for the twenty-six weeks ended August 1, 2020 were as follows:


	($ in millions)
Amortization of actuarial loss:
Pension benefits	$	6
Income tax benefit		(2)
Total, net of tax	$	4

Fair Value Measurements

6 Months Ended

Aug. 01, 2020

Fair Value Measurements [Abstract]

Fair Value Measurements

11. Fair Value Measurements

Our financial assets are recorded at fair value, using a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are categorized as follows:

Level 1 –

Quoted prices for identical instruments in active markets.

Level 2 –

Observable inputs other than quoted prices included within Level 1, including quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets.

Level 3 –

Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable.

The fair value of the auction rate security, classified as available-for-sale, is determined by using quoted prices for similar instruments in active markets and accordingly is classified as a Level 2 instrument.

Our derivative financial instruments are valued using market-based inputs to valuation models. These valuation models require a variety of inputs, including contractual terms, market prices, yield curves, and measures of volatility and therefore are classified as Level 2 instruments.

Assets and Liabilities Measured at Fair Value on a Recurring Basis


	As of August 1, 2020						As of August 3, 2019						As of February 1, 2020
($ in millions)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Available-for-sale security		—		7		—		—		6		—		—		7		—
Foreign exchange forward contracts				1				—		4		—		—		—		—
Total Assets	$	—	$	8	$	—	$	—	$	10	$	—	$	—	$	7	$	—

Liabilities
Foreign exchange forward contracts		—		4		—		—		—		—		—		4		—
Total Liabilities	$	—	$	4	$	—	$	—	$	—	$	—	$	—	$	4	$	—

There were no transfers into or out of Level 1, Level 2, or Level 3 assets and liabilities for any of the periods presented.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Assets and liabilities recognized or disclosed at fair value on the consolidated financial statements on a nonrecurring basis include items such as property, plant and equipment, operating lease right-of-use assets, goodwill, other intangible assets, and minority investments that are not accounted for under the equity method of accounting. These assets are measured using Level 3 inputs, if determined to be impaired.

Minority interests measured using the fair value measurement alternative had a carrying value of $137 million, $133 million, and $137 million as of August 1, 2020, August 3, 2019, and February 1, 2020, respectively, and are included within Other assets. During the fourth quarter of 2019, we recorded a non-cash charge of $7 million related to the write-down of such minority investments.

Long-Term Debt

The fair value of long-term debt is determined by using model-derived valuations in which all significant inputs or significant value drivers are observable in active markets and therefore are classified as Level 2. The carrying value and estimated fair value of long-term debt were as follows:


($ in millions)	August 1, 2020		August 3, 2019		February 1, 2020
Carrying value	$	121	$	123	$	122
Fair value	$	129	$	136	$	135

The carrying values of cash and cash equivalents, and other current receivables and payables approximate their fair value.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Earnings Per Share

6 Months Ended

Aug. 01, 2020

Earnings Per Share [Abstract]

Earnings Per Share

12. Earnings Per Share

We account for earnings per share (“EPS”) using the treasury stock method. Basic EPS is computed by dividing net income (loss) for the period by the weighted-average number of common shares outstanding at the end of the period. Diluted earnings per share reflects the weighted-average number of common shares outstanding during the period used in the basic EPS computation plus dilutive common stock equivalents. The computation of diluted earnings per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect on EPS.

The computation of basic and diluted EPS is as follows:


	Thirteen weeks ended				Twenty-six weeks ended
	August 1,		August 3,		August 1,		August 3,
	2020		2019		2020		2019
	(in millions, except per share data)
Net income (loss)	$	45	$	60	$	(65)	$	232

Weighted-average common shares outstanding		104.5		110.8		104.4		111.6
Dilutive effect of potential common shares		0.6		0.3		—		0.5
Weighted-average common shares outstanding assuming dilution		105.1		111.1		104.4		112.1

Earnings (loss) per share - basic	$	0.43	$	0.55	$	(0.62)	$	2.09
Earnings (loss) per share - diluted	$	0.43	$	0.55	$	(0.62)	$	2.08

Anti-dilutive share-based awards excluded from diluted calculation		2.7		2.4		2.7		1.8

Restricted stock units related to our long-term incentive programs of 0.5 million and 0.7 million have been excluded from diluted weighted-average shares for the periods ended August 1, 2020 and August 3, 2019, respectively. The issuance of these shares are contingent on our performance metrics as compared to the pre-established performance goals, which have not been achieved.

Pension

6 Months Ended

Aug. 01, 2020

Pension [Abstract]

Pension

13. Pension

We have a defined benefit pension plan covering certain of our North American employees.

The components of net periodic pension benefit cost are presented in the table below. Service cost is recognized as part of SG&A expense, while the other components are recognized as part of Other income, net.


	Thirteen weeks ended				Twenty-six weeks ended
		August 1,		August 3,		August 1,		August 3,
($ in millions)		2020		2019		2020		2019
Service cost	$	3	$	5	$	7	$	10
Interest cost		6		6		11		13
Expected return on plan assets		(10)		(9)		(19)		(18)
Amortization of net loss		3		3		6		6
Net benefit expense	$	2	$	5	$	5	$	11

Share-Based Compensation

6 Months Ended

Aug. 01, 2020

Share-Based Compensation [Abstract]

Share-Based Compensation

14. Share-Based Compensation

Total compensation expense, included in SG&A, and the associated tax benefits recognized related to our share-based compensation plans, were as follows:


	Thirteen weeks ended				Twenty-six weeks ended
($ in millions)	August 1, 2020		August 3, 2019		August 1, 2020		August 3, 2019
Options and shares purchased under stock purchase plan	$	2	$	2	$	4	$	4
Restricted stock units		2		4		3		9
Total share-based compensation expense	$	4	$	6	$	7	$	13

Tax benefit recognized	$	1	$	—	$	1	$	1

Valuation Model and Assumptions

We use the Black-Scholes option-pricing model to estimate the fair value of share-based awards. The Black-Scholes option-pricing model incorporates various and subjective assumptions, including expected term and expected volatility.

The following table shows assumptions used to compute share-based compensation expense for awards granted during the twenty-six weeks ended August 1, 2020 and August 3, 2019:


		Stock Option Plans						Stock Purchase Plan
	August 1,			August 3,			August 1,			August 3,
	2020			2019			2020			2019
Weighted-average risk free rate of interest		0.6	%		2.2	%		2.0	%		2.3	%
Expected volatility		42	%		38	%		48	%		57	%
Weighted-average expected award life (in years)		5.5			5.5			1.0			1.0
Dividend yield		4.9	%		2.6	%		4.0	%		2.8	%
Weighted-average fair value	$	5.03		$	17.19		$	15.03		$	20.33

The information in the following table covers option activity under our stock option plans for the twenty-six weeks ended August 1, 2020:


		Weighted-		Weighted-
	Number	Average		Average
	of	Remaining		Exercise
	Shares	Contractual Life		Price
	(in thousands)	(in years)		(per share)
Options outstanding at the beginning of the year	2,881			$	54.21
Granted	1,069				21.61
Exercised	(4)				15.10
Expired or cancelled	(57)				48.53
Options outstanding at August 1, 2020	3,889		6.4	$	45.37
Options exercisable at August 1, 2020	2,473		4.8	$	54.67
Options available for future grant at August 1, 2020	5,655

The total fair value of options vested during the thirteen weeks ended August 1, 2020 and August 3, 2019 was $5 million and $6 million, respectively. The cash received and related tax benefits realized from option exercises during the thirteen and twenty-six weeks ended August 1, 2020 was not significant.

The total intrinsic value of options exercised (the difference between the market price of our common stock on the exercise date and the price paid by the optionee to exercise the option) is presented below:


	Thirteen weeks ended				Twenty-six weeks ended
($ in millions)	August 1, 2020		August 3, 2019		August 1, 2020		August 3, 2019
Exercised	$	—	$	—	$	—	$	5

The aggregate intrinsic value for stock options outstanding, and outstanding and exercisable (the difference between our closing stock price on the last trading day of the period and the exercise price of the options, multiplied by the number of in-the-money stock options) is presented below:

As of August 1, 2020 there was $6 million of total unrecognized compensation cost related to nonvested stock options, which is expected to be recognized over a remaining weighted-average period of 1.6 years.

The following table summarizes information about stock options outstanding and exercisable at August 1, 2020:


	Options Outstanding				Options Exercisable
		Weighted-
		Average	Weighted-			Weighted-
		Remaining	Average			Average
Range of Exercise	Number	Contractual	Exercise		Number	Exercise
Prices	Outstanding	Life	Price		Exercisable	Price
	(in thousands, except prices per share and contractual life)
$18.84 to $23.09	1,176	8.8	$	21.33	117	$	18.84
$24.75 to $36.51	376	2.6		32.13	333		31.77
$44.78 to $45.75	561	5.7		44.91	454		44.94
$46.64 to $62.11	904	5.8		60.00	697		60.51
$63.33 to $73.21	872	5.9		68.60	872		68.60
	3,889	6.4	$	45.37	2,473	$	54.67

Restricted Stock Units

Restricted stock units (“RSU”) may be awarded to certain officers and key employees of the Company. Additionally, RSU awards are made to employees in connection with our long-term incentive program, and to nonemployee directors. Each RSU award represents the right to receive one share of our common stock provided that the applicable performance and vesting conditions are satisfied.

Generally, awards fully vest after the passage of time, typically three years. However, RSU awards made in connection with our performance-based long-term incentive program are earned after the attainment of certain performance metrics and, with regards to certain awards, vest after an additional one-year period. No dividends are paid or accumulated on any RSU awards.

Compensation expense is recognized using the market value at the date of grant and is amortized over the vesting period, provided the recipient continues to be employed by the Company.

RSU activity for the twenty-six weeks ended August 1, 2020 is summarized as follows:


			Weighted-Average
	Number		Remaining		Weighted-Average
	of		Contractual		Grant Date
	Shares		Life		Fair Value
		(in thousands)		(in years)		(per share)
Nonvested at beginning of year		936			$	49.25
Granted		416				22.59
Vested		(67)				65.83
Performance adjustment ⁽¹⁾		(132)
Forfeited		(44)				43.45
Nonvested at August 1, 2020		1,109		1.4	$	37.65

Aggregate value ($ in millions)	$	42

(1)	This represents adjustments made to performance-based RSU awards and reflect changes in estimates based upon our current performance against predefined financial targets.

The total value of awards that vested during the twenty-six weeks ended August 1, 2020 and August 3, 2019 was $4 million and $5 million, respectively. As of August 1, 2020, there was $17 million of total unrecognized compensation cost related to nonvested awards.

Income Taxes

6 Months Ended

Aug. 01, 2020

Income Taxes [Abstract]

Income Taxes

15. Income Taxes

For the thirteen and twenty-six weeks ended August 1, 2020, we recorded income tax expense of $25 million and $30 million, respectively, and represented an effective tax rate of 35.4 percent and negative 85.5 percent on a pretax income and pretax loss, respectively. The effective tax rates were adversely impacted by valuation allowances related to losses in certain foreign jurisdictions. Additionally, in the first quarter we recorded a $27 million tax charge related to the revaluation of certain intellectual property rights pursuant to a non-U.S. advance pricing agreement. Due to the improved financial outlook during the second quarter of 2020, we reversed $2 million of the revaluation charge.

We have historically calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the full fiscal year income, excluding unusual or infrequently occurring discrete items, for the reporting period. In accordance with the authoritative guidance, we used a discrete effective tax rate method to calculate income taxes for the first quarter of 2020 because small changes in the estimated level and mix of annual income or loss by jurisdiction would result in significant changes in the estimated annual effective tax rate making the historical method unreliable. However, during the second quarter we returned to the historical practice of using an annual effective rate.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law in the U.S. to provide certain relief as a result of the COVID-19 pandemic. In addition, governments around the world enacted or implemented various forms of tax relief measures in response to the economic conditions in the wake of COVID-19. We are required to recognize the effects of tax law changes in the period of enactment. We have assessed the applicability of the CARES Act and changes to income tax laws or regulations in other jurisdictions and determined there is no significant affect to our income tax provision for the twenty-six weeks ended August 1, 2020. We continue to assess the effect of the CARES Act and ongoing government guidance related to COVID-19 that may be issued.

Legal Proceedings

6 Months Ended

Aug. 01, 2020

Legal Proceedings [Abstract]

Legal Proceedings

16. Legal Proceedings

Legal proceedings pending against the Company or its consolidated subsidiaries consist of ordinary, routine litigation, including administrative proceedings, incidental to the business of the Company or businesses that have been sold or discontinued by the Company in past years. These legal proceedings include commercial, intellectual property, customer, environmental, and employment-related claims.

We do not believe that the outcome of any such legal proceedings pending against the Company or its consolidated subsidiaries, as described above, would have a material adverse effect on our consolidated financial position, liquidity, or results of operations, taken as a whole, based upon current knowledge and taking into consideration current accruals. Litigation is inherently unpredictable. Judgments could be rendered or settlements made that could adversely affect the Company’s operating results or cash flows in a particular period.

Subsequent Events

6 Months Ended

Aug. 01, 2020

Subsequent Events [Abstract]

Subsequent Events

17. Subsequent Events

During the first quarter, we suspended our second quarter dividend as a result of the economic uncertainty as a result of the COVID-19 pandemic. On August 20, 2020, our Board of Directors approved the reinstatement of our quarterly dividend program at a rate of $0.15 per share, which will be payable on October 30, 2020 to shareholders of record on October 16, 2020. The Board will continue to evaluate the dividend program on a quarterly basis.

One of our minority investments, which is measured using the fair value measurement alternative, received additional funding in August at a higher valuation than our initial investment. This transaction is expected to generate a significant non-cash gain during the third quarter.

Summary of Significant Accounting Policies (Policy)	6 Months Ended
Summary of Significant Accounting Policies (Policy)	Aug. 01, 2020
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements contained in this report are unaudited. In the opinion of management, the condensed consolidated financial statements include all normal, recurring adjustments necessary for a fair presentation of the results for the interim periods presented. As used in these Notes to Condensed Consolidated Financial Statements (Unaudited) the terms “Foot Locker,” “Company,” “we,” “our,” and “us” refer to Foot Locker, Inc. and its consolidated subsidiaries. The preparation of financial statements in accordance with generally accepted accounting principles requires us to make estimates and assumptions that affect the amounts reported in the accompanying Unaudited Condensed Consolidated Financial Statements and these Notes and related disclosures. Actual results may differ from those estimates. The results of operations for any interim period are not necessarily indicative of the results expected for the year. The results of operations for the periods ended August 1, 2020 are not necessarily indicative of the results to be expected for the full fiscal year due to the continued uncertainty of general economic conditions that may affect us for the remainder of 2020. Specifically, we are uncertain of the extent to which the coronavirus (“COVID-19”) pandemic will affect our sales, traffic to our stores, including our distribution capabilities and those of our suppliers. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Notes to Consolidated Financial Statements contained in Foot Locker, Inc.’s Form 10-K for the year ended February 1, 2020, as filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 27, 2020. Other than the changes to the Goodwill policies as a result of the recently adopted accounting standards discussed below, there were no significant changes to the policies disclosed in Note 1, Summary of Significant Accounting Policies of our Annual Report on Form 10-K for the year ended February 1, 2020.
Recent Accounting Pronouncements	Recent Accounting Pronouncements On February 2, 2020, we adopted FASB guidance on the accounting for implementation costs of a cloud computing arrangement that is considered to be a service contract, that requires companies to follow the guidance for internal-use software to determine which costs to capitalize in a cloud computing arrangement that is a service contract. Under this guidance, such implementation costs will be capitalized in Other assets on the Condensed Consolidated Balance Sheet, with the related amortization presented in Selling, general and administrative expenses on the Condensed Consolidated Statement of Operations. This guidance was applied prospectively to implementation costs incurred after February 2, 2020. The adoption of this guidance did not have a significant effect on our condensed consolidated financial statements. On February 2, 2020, we adopted FASB’s updated guidance on the accounting for performing goodwill impairment tests. This update eliminates the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. In testing goodwill for impairment, an entity may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment indicates that goodwill impairment is more likely than not, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit to its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Refer to our updated accounting policy in Note 6, Goodwill. Other recently issued accounting pronouncements did not, or are not believed by management to, have a material effect on our present or future consolidated financial statements.

Goodwill (Policy)

6 Months Ended

Aug. 01, 2020

Goodwill and Other Intangible Assets, Net [Abstract]

Goodwill

Revenue (Tables)

6 Months Ended

Aug. 01, 2020

Revenue [Abstract]

Disaggregation of Revenue


	Thirteen weeks ended				Twenty-six weeks ended
	August 1,		August 3,		August 1,		August 3,
($ in millions)	2020		2019		2020		2019
Sales by Channel
Stores	$	1,388	$	1,521	$	2,202	$	3,279
Direct-to-customers		689		253		1,051		573
Total sales	$	2,077	$	1,774	$	3,253	$	3,852

Revenue from External Customers by Geographic Areas

Sales disaggregated based upon geographic area is presented in the table below. Sales are attributable to the geographic area in which the sales transaction is fulfilled.


	Thirteen weeks ended				Twenty-six weeks ended
	August 1,		August 3,		August 1,		August 3,
($ in millions)	2020		2019		2020		2019
Sales by Geography
United States	$	1,529	$	1,209	$	2,440	$	2,761
International		548		565		813		1,091
Total sales	$	2,077	$	1,774	$	3,253	$	3,852

Activity of Gift Card Liability Balance



($ in millions)	August 1, 2020		August 3, 2019
Gift card liability at beginning of year	$	35	$	35
Redemptions		(37)		(47)
Breakage recognized in sales		(3)		(3)
Activations		36		43
Gift card liability	$	31	$	28

Segment Information (Tables)

6 Months Ended

Aug. 01, 2020

Segment Information [Abstract]

Sales and Division Operating Results for Reportable Segments


	Thirteen weeks ended				Twenty-six weeks ended
	August 1,		August 3,		August 1,		August 3,
($ in millions)	2020		2019		2020		2019
Sales	$	2,077	$	1,774	$	3,253	$	3,852

Operating Results
Division profit		125		115	$	46	$	365
Less: Impairment and other charges ⁽¹⁾		38		14		54		15
Less: Corporate expense ⁽²⁾		18		20		28		41
Income (loss) from operations		69		81		(36)		309
Interest (expense) income, net		(2)		2		(3)		6
Other income, net		3		2		4		4
Income (loss) before income taxes	$	70	$	85	$	(35)	$	319

(1)	During the thirteen and twenty-six weeks ended August 1, 2020 and August 3, 2019, we recorded pre-tax charges as detailed in Note 4, Impairment and Other Charges.

(2)

Disaggregation of Revenue


	Thirteen weeks ended				Twenty-six weeks ended
	August 1,		August 3,		August 1,		August 3,
($ in millions)	2020		2019		2020		2019
Sales by Channel
Stores	$	1,388	$	1,521	$	2,202	$	3,279
Direct-to-customers		689		253		1,051		573
Total sales	$	2,077	$	1,774	$	3,253	$	3,852

Impairment and Other Charges (Tables)

6 Months Ended

Aug. 01, 2020

Impairment and Other Charges [Abstract]

Schedule of Impairment and Other Charges


	Thirteen weeks ended				Twenty-six weeks ended
	August 1,		August 3,		August 1,		August 3,
($ in millions)	2020		2019		2020		2019
Losses related to social unrest	$	18	$	—	$	18	$	—
Runners Point shut down		16		—		16		—
Impairment of long-lived assets and right-of-use assets		—		—		15		—
Eastbay reorganization		3		—		3		—
Pension litigation related charges		1		1		2		2
Lease termination costs		—		13		—		13
Total impairment and other charges	$	38	$	14	$	54	$	15

Schedule of Reorganization Accrual


($ in millions)	Runners Point		Eastbay		Total
Balance as of February 1, 2020	$	—	$	—	$	—
Charges		16		3		19
Payments		(2)		(2)		(4)
Foreign currency fluctuations		1		—		1
Balance as of August 1, 2020	$	15	$	1	$	16

Cash, Cash Equivalents, and Restricted Cash (Tables)

6 Months Ended

Aug. 01, 2020

Restricted Cash [Abstract]

Reconciliation of Cash and Cash Equivalents


	August 1,		August 3,		February 1,
($ in millions)	2020		2019		2020
Cash and cash equivalents	$	1,373	$	939	$	907
Restricted cash included in other current assets		7		5		6
Restricted cash included in other non-current assets		30		30		29
Cash, cash equivalents, and restricted cash	$	1,410	$	974	$	942

Other Intangible Assets, Net (Tables)

6 Months Ended

Aug. 01, 2020

Goodwill and Other Intangible Assets, Net [Abstract]

Components of Finite-Lived Intangible Assets and Intangible Assets Not Subject to Amortization

The components of finite-lived intangible assets and intangible assets not subject to amortization are as follows:


		August 1, 2020						August 3, 2019						February 1, 2020
	Gross		Accum.		Net		Gross		Accum.		Net		Gross		Accum.		Net
($ in millions)	value		amort.		value		value		amort.		value		value		amort.		value
Amortized intangible assets: ⁽¹⁾
Lease acquisition costs	$	119	$	(113)	$	6	$	116	$	(108)	$	8	$	115	$	(108)	$	7
Trademarks / trade names		20		(16)		4		20		(15)		5		20		(16)		4
	$	139	$	(129)	$	10	$	136	$	(123)	$	13	$	135	$	(124)	$	11

Indefinite life intangible assets: ⁽¹⁾
Trademarks / trade names					$	9					$	8					$	9
Other intangible assets, net					$	19					$	21					$	20

(1)	The change in the ending balances also reflects the effect of foreign currency fluctuations due primarily to movements of the euro in relation to the U.S. dollar.

Amortization Expense

Amortization expense recorded is as follows:


	Thirteen weeks ended					Twenty-six weeks ended
	August 1,		August 3,			August 1,	August 3,
($ in millions)	2020		2019			2020	2019
Amortization expense	$	1	$	1	$	2	$	2

Estimated Future Expected Amortization Expense for Finite Life Intangible Assets

Estimated future amortization expense for finite-life intangible assets is as follows:


	($ in millions)
Remainder of 2020	$	2
2021		2
2022		2
2023		2
2024		1
2025		1

Long-Term Debt (Tables)

6 Months Ended

Aug. 01, 2020

Long-Term Debt [Abstract]

Schedule of Debt


($ in millions)	August 1, 2020		August 3, 2019		February 1, 2020
8.5% debentures payable 2022	$	118	$	118	$	118
Unamortized gain related to interest rate swaps⁽¹⁾		3		5		4
Obligations under finance leases		3		—		—
	$	124	$	123	$	122

Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Aug. 01, 2020

Accumulated Other Comprehensive Loss [Abstract]

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss (“AOCL”), net of tax, is comprised of the following:


	August 1,		August 3,		February 1,
($ in millions)	2020		2019		2020
Foreign currency translation adjustments	$	(84)	$	(105)	$	(104)
Cash flow hedges		—		3		(3)
Unrecognized pension cost and postretirement benefit		(283)		(282)		(287)
	$	(367)	$	(384)	$	(394)

Changes in Accumulated Other Comprehensive Loss

The changes in AOCL for the twenty-six weeks ended August 1, 2020 were as follows:


	Foreign				Items Related
	Currency				to Pension and
	Translation		Cash Flow		Postretirement
($ in millions)	Adjustments		Hedges		Benefits		Total
Balance as of February 1, 2020	$	(104)	$	(3)	$	(287)	$	(394)

OCI before reclassification		20		3		—		23
Amortization of pension actuarial loss, net of tax		—		—		4		4
Other comprehensive income		20		3		4		27
Balance as of August 1, 2020	$	(84)	$	—	$	(283)	$	(367)

Reclassification from Accumulated Other Comprehensive Loss

Reclassifications from AOCL for the twenty-six weeks ended August 1, 2020 were as follows:


	($ in millions)
Amortization of actuarial loss:
Pension benefits	$	6
Income tax benefit		(2)
Total, net of tax	$	4

Fair Value Measurements (Tables)

6 Months Ended

Aug. 01, 2020

Fair Value Measurements [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and Liabilities Measured at Fair Value on a Recurring Basis


	As of August 1, 2020						As of August 3, 2019						As of February 1, 2020
($ in millions)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Available-for-sale security		—		7		—		—		6		—		—		7		—
Foreign exchange forward contracts				1				—		4		—		—		—		—
Total Assets	$	—	$	8	$	—	$	—	$	10	$	—	$	—	$	7	$	—

Liabilities
Foreign exchange forward contracts		—		4		—		—		—		—		—		4		—
Total Liabilities	$	—	$	4	$	—	$	—	$	—	$	—	$	—	$	4	$	—

Carrying Value and Estimated Fair Value of Long-Term Debt


($ in millions)	August 1, 2020		August 3, 2019		February 1, 2020
Carrying value	$	121	$	123	$	122
Fair value	$	129	$	136	$	135

Earnings Per Share (Tables)

6 Months Ended

Aug. 01, 2020

Earnings Per Share [Abstract]

Basic and Diluted Weighted-Average Number of Common Shares Outstanding

The computation of basic and diluted EPS is as follows:


	Thirteen weeks ended				Twenty-six weeks ended
	August 1,		August 3,		August 1,		August 3,
	2020		2019		2020		2019
	(in millions, except per share data)
Net income (loss)	$	45	$	60	$	(65)	$	232

Weighted-average common shares outstanding		104.5		110.8		104.4		111.6
Dilutive effect of potential common shares		0.6		0.3		—		0.5
Weighted-average common shares outstanding assuming dilution		105.1		111.1		104.4		112.1

Earnings (loss) per share - basic	$	0.43	$	0.55	$	(0.62)	$	2.09
Earnings (loss) per share - diluted	$	0.43	$	0.55	$	(0.62)	$	2.08

Anti-dilutive share-based awards excluded from diluted calculation		2.7		2.4		2.7		1.8

Pension (Tables)

6 Months Ended

Aug. 01, 2020

Pension [Abstract]

Net Benefit Expense (Income)


	Thirteen weeks ended				Twenty-six weeks ended
		August 1,		August 3,		August 1,		August 3,
($ in millions)		2020		2019		2020		2019
Service cost	$	3	$	5	$	7	$	10
Interest cost		6		6		11		13
Expected return on plan assets		(10)		(9)		(19)		(18)
Amortization of net loss		3		3		6		6
Net benefit expense	$	2	$	5	$	5	$	11

Share-Based Compensation (Tables)

6 Months Ended

Aug. 01, 2020

Share-Based Compensation [Abstract]

Total Compensation Expense and the Related Tax Benefits Recognized

Total compensation expense, included in SG&A, and the associated tax benefits recognized related to our share-based compensation plans, were as follows:


	Thirteen weeks ended				Twenty-six weeks ended
($ in millions)	August 1, 2020		August 3, 2019		August 1, 2020		August 3, 2019
Options and shares purchased under stock purchase plan	$	2	$	2	$	4	$	4
Restricted stock units		2		4		3		9
Total share-based compensation expense	$	4	$	6	$	7	$	13

Tax benefit recognized	$	1	$	—	$	1	$	1

Assumptions used to Compute Share-Based Compensation Expense

The following table shows assumptions used to compute share-based compensation expense for awards granted during the twenty-six weeks ended August 1, 2020 and August 3, 2019:


		Stock Option Plans						Stock Purchase Plan
	August 1,			August 3,			August 1,			August 3,
	2020			2019			2020			2019
Weighted-average risk free rate of interest		0.6	%		2.2	%		2.0	%		2.3	%
Expected volatility		42	%		38	%		48	%		57	%
Weighted-average expected award life (in years)		5.5			5.5			1.0			1.0
Dividend yield		4.9	%		2.6	%		4.0	%		2.8	%
Weighted-average fair value	$	5.03		$	17.19		$	15.03		$	20.33

Options Granted under Stock Option Plans

The information in the following table covers option activity under our stock option plans for the twenty-six weeks ended August 1, 2020:


		Weighted-		Weighted-
	Number	Average		Average
	of	Remaining		Exercise
	Shares	Contractual Life		Price
	(in thousands)	(in years)		(per share)
Options outstanding at the beginning of the year	2,881			$	54.21
Granted	1,069				21.61
Exercised	(4)				15.10
Expired or cancelled	(57)				48.53
Options outstanding at August 1, 2020	3,889		6.4	$	45.37
Options exercisable at August 1, 2020	2,473		4.8	$	54.67
Options available for future grant at August 1, 2020	5,655

Total Intrinsic Value of Options Exercised


	Thirteen weeks ended				Twenty-six weeks ended
($ in millions)	August 1, 2020		August 3, 2019		August 1, 2020		August 3, 2019
Exercised	$	—	$	—	$	—	$	5

Aggregate Intrinsic Value for Stock Options Outstanding and Exercisable

Information about Stock Options Outstanding and Exercisable

The following table summarizes information about stock options outstanding and exercisable at August 1, 2020:


	Options Outstanding				Options Exercisable
		Weighted-
		Average	Weighted-			Weighted-
		Remaining	Average			Average
Range of Exercise	Number	Contractual	Exercise		Number	Exercise
Prices	Outstanding	Life	Price		Exercisable	Price
	(in thousands, except prices per share and contractual life)
$18.84 to $23.09	1,176	8.8	$	21.33	117	$	18.84
$24.75 to $36.51	376	2.6		32.13	333		31.77
$44.78 to $45.75	561	5.7		44.91	454		44.94
$46.64 to $62.11	904	5.8		60.00	697		60.51
$63.33 to $73.21	872	5.9		68.60	872		68.60
	3,889	6.4	$	45.37	2,473	$	54.67

Restricted Share and Unit Activity

RSU activity for the twenty-six weeks ended August 1, 2020 is summarized as follows:


			Weighted-Average
	Number		Remaining		Weighted-Average
	of		Contractual		Grant Date
	Shares		Life		Fair Value
		(in thousands)		(in years)		(per share)
Nonvested at beginning of year		936			$	49.25
Granted		416				22.59
Vested		(67)				65.83
Performance adjustment ⁽¹⁾		(132)
Forfeited		(44)				43.45
Nonvested at August 1, 2020		1,109		1.4	$	37.65

Aggregate value ($ in millions)	$	42

(1)	This represents adjustments made to performance-based RSU awards and reflect changes in estimates based upon our current performance against predefined financial targets.

Revenue (Schedule of Sales Disaggregated by Sales Channel) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
Sales	$ 2,077	$ 1,774	$ 3,253	$ 3,852
Store Sales Channel [Member]
Sales	1,388	1,521	2,202	3,279
Direct to Customers Sales Channel [Member]
Sales	$ 689	$ 253	$ 1,051	$ 573

Revenue (Schedule of Sales Disaggregated by Geographic Area) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
Sales	$ 2,077	$ 1,774	$ 3,253	$ 3,852
United States of America [Member]
Sales	1,529	1,209	2,440	2,761
International [Member]
Sales	$ 548	$ 565	$ 813	$ 1,091

Revenue (Activity of Gift Card Liability Balance) (Details) - USD ($) $ in Millions	6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019
Accrued gift card liability at beginning of period	$ 35	$ 35
Accrued gift card liability at end of period	31	28
Gift Card Redemption Revenue [Member]
Revenue recognized	(37)	(47)
Gift Card Breakage Revenue [Member]
Revenue recognized	(3)	(3)
Gift Card Activations [Member]
Activations	$ 36	$ 43

Segment Information (Sales and Division Operating Results for Reportable Segments) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
Segment Information [Abstract]
Sales	$ 2,077	$ 1,774	$ 3,253	$ 3,852
Division profit	125	115	46	365
Less: Impairment and other charges	38	14	54	15
Less: Corporate expense	18	20	28	41
Income from operations	69	81	(36)	309
Interest income, net	(2)	2	(3)	6
Other income, net	3	2	4	4
(Loss) Income before income taxes	$ 70	$ 85	(35)	$ 319
Impairment of long-lived assets and right-of-use assets			$ 15

Impairment and Other Charges (Schedule of Impairment and Other Charges) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019	Feb. 01, 2020
Losses related to social unrest	$ 18		$ 18
Impairment of long-lived assets and right-of-use assets			15
Pension litigation related charges	1	$ 1	2	$ 2
Lease termination costs		13		13
Reorganization costs			19
Total impairment and other charges	38	$ 14	54	$ 15
Restructuring Reserve	16		16		$ 0
Payments for Restructuring			4
Runners Point Group [Member]
Reorganization costs	16		16
Restructuring Reserve	15		15		0
Payments for Restructuring			2
Eastbay [Member]
Reorganization costs	3		3
Restructuring Reserve	$ 1		1		$ 0
Payments for Restructuring			$ 2

Impairment and Other Charges (Narrative) (Details) $ in Millions	3 Months Ended		6 Months Ended
	Aug. 01, 2020 USD ($)	Aug. 03, 2019 USD ($)	Aug. 01, 2020 USD ($) store	Aug. 03, 2019 USD ($)
Impairment and Other Charges [Line Items]
Pension litigation charge	$ (1)	$ (1)	$ (2)	$ (2)
Impairment of assets			$ 15
Lease termination costs		$ 13		$ 13
Number of stores with non-cash impairment charge \| store			70
Reorganization costs			$ 19
Losses related to social unrest	18		$ 18
Number of stores damaged related to social unrest \| store			135
Social Unrest [Member]
Impairment and Other Charges [Line Items]
Losses related to social unrest	18		$ 18
Inventory Losses Related to Social Unrest [Member]
Impairment and Other Charges [Line Items]
Losses related to social unrest	14		14
Damages to Store Property Related to Social Unrest [Member]
Impairment and Other Charges [Line Items]
Losses related to social unrest	2		2
Repairs and Other Costs Related to Social Unrest [Member]
Impairment and Other Charges [Line Items]
Losses related to social unrest	2		$ 2
Runners Point and Sidestep [Member]
Impairment and Other Charges [Line Items]
Number of stores closing prior to their natural lease expiration \| store			40
Runners Point Group [Member]
Impairment and Other Charges [Line Items]
Reorganization costs	16		$ 16
Eastbay [Member]
Impairment and Other Charges [Line Items]
Reorganization costs	$ 3		$ 3

Impairment and Other Charges (Restructuring Charges) (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Aug. 01, 2020	Aug. 01, 2020
Restructuring Reserve, Beginning Balance		$ 0
Reorganization Items		19
Payments		(4)
Foreign currency fluctuations		1
Restructuring Reserve, Ending Balance	$ 16	16
Runners Point Group [Member]
Restructuring Reserve, Beginning Balance		0
Reorganization Items	16	16
Payments		(2)
Foreign currency fluctuations		1
Restructuring Reserve, Ending Balance	15	15
Eastbay [Member]
Restructuring Reserve, Beginning Balance		0
Reorganization Items	3	3
Payments		(2)
Restructuring Reserve, Ending Balance	$ 1	$ 1

Cash, Cash Equivalents, and Restricted Cash (Reconciliation of Cash and Cash Equivalents) (Details) - USD ($)
$ in Millions

Aug. 01, 2020

Feb. 01, 2020

Aug. 03, 2019

Feb. 02, 2019

Restricted Cash [Abstract]

Cash and cash equivalents

$ 1,373

$ 907

^[1]

$ 939

Restricted cash included in other current assets

Restricted cash included in other non-current assets

Cash, cash equivalents, and restricted cash

$ 1,410

$ 942

$ 974

$ 981

[1]

Other Intangible Assets, Net (Schedule of Other Intangible Assets) (Details) - USD ($)
$ in Millions

Aug. 01, 2020

Feb. 01, 2020

Aug. 03, 2019

Intangible Assets by Major Class [Line Items]

Amortized intangible assets, Gross value

$ 139

$ 135

$ 136

Amortized intangible assets, Accum. amort.

(129)

(124)

(123)

Amortized intangible assets, Net value

Other intangible assets, net

^[1]

Lease Acquisition Costs [Member]

Intangible Assets by Major Class [Line Items]

Amortized intangible assets, Gross value

119

115

116

Amortized intangible assets, Accum. amort.

(113)

(108)

Amortized intangible assets, Net value

Trademarks and Trade Names [Member]

Intangible Assets by Major Class [Line Items]

Amortized intangible assets, Gross value

Amortized intangible assets, Accum. amort.

(16)

(15)

Amortized intangible assets, Net value

Trademarks and Trade Names [Member]

Intangible Assets by Major Class [Line Items]

Indefinite life intangible assets, Net Value

$ 9

$ 8

[1]

Other Intangible Assets, Net (Amortization Expense) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
Goodwill and Other Intangible Assets, Net [Abstract]
Amortization expense	$ 1	$ 1	$ 2	$ 2

Other Intangible Assets, Net (Estimated Future Amortization Expense for Finite Lived Intangibles) (Details) $ in Millions	Aug. 01, 2020 USD ($)
Goodwill and Other Intangible Assets, Net [Abstract]
Remainder of 2020	$ 2
2021	2
2022	2
2023	2
2024	1
2025	$ 1

Revolving Credit Facility (Narrative) (Details) $ in Millions	6 Months Ended
	Aug. 01, 2020 USD ($)
Line of Credit Facility [Line Items]
Debt Instrument Fixed Coverage Ratio	1.00
Credit agreement start date	Jul. 14, 2020
Revolving credit facility	$ 600
Revolving credit facility maturity date	Jul. 14, 2025
Proceeds from Lines of Credit	$ 330
Minimum threshold of availability under the credit agreement before the company needs to comply with financial covenants	$ 60
Minimum percentage threshold of credit availability to Loan Cap before the company needs to comply with financial covenants	10.00%
Facility fees on unused portion of credit facility	0.50%
Federal Funds Rate [Member] \| Revolving Credit Facility [Member] \| Maximum [Member]
Line of Credit Facility [Line Items]
Debt, basis spread on variable rate	1.25%
Federal Funds Rate [Member] \| Revolving Credit Facility [Member] \| Minimum [Member]
Line of Credit Facility [Line Items]
Debt, basis spread on variable rate	0.75%
London Interbank Offered Rate (LIBOR) [Member] \| Revolving Credit Facility [Member] \| Maximum [Member]
Line of Credit Facility [Line Items]
Debt, basis spread on variable rate	2.25%
London Interbank Offered Rate (LIBOR) [Member] \| Revolving Credit Facility [Member] \| Minimum [Member]
Line of Credit Facility [Line Items]
Debt, basis spread on variable rate	1.75%

Long-Term Debt (Narrative) (Details) $ in Millions	Aug. 01, 2020 USD ($)
Long-Term Debt [Abstract]
Finance Lease, Liability, Current	$ 1

Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($)
$ in Millions

Aug. 01, 2020

Feb. 01, 2020

Aug. 03, 2019

Long-Term Debt [Abstract]

8.5% debentures payable 2022

$ 118

Unamortized gain related to interest rate swaps

Long-term debt and obligations under finance leases

124

$ 122

^[1]

$ 123

Finance Lease, Liability

$ 3

[1]

Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($)
$ in Millions

Aug. 01, 2020

Feb. 01, 2020

Aug. 03, 2019

Accumulated Other Comprehensive Loss [Abstract]

Foreign currency translation adjustments

$ (84)

$ (104)

$ (105)

Cash flow hedges

(3)

Unrecognized pension cost and postretirement benefit

(283)

(287)

(282)

Accumulated other comprehensive loss ("AOCL"), net of tax

$ (367)

$ (394)

^[1]

$ (384)

[1]

- Definition

Accumulated adjustment, net of tax, that results from the process of translating subsidiary financial statements and foreign equity investments into the reporting currency from the functional currency of the reporting entity, net of reclassification of realized foreign currency translation gains or losses.

+ References + Details

Accumulated Other Comprehensive Loss (Changes in Accumulated Other Comprehensive Loss) (Details)
$ in Millions

6 Months Ended

Aug. 01, 2020

USD ($)

Accumulated Other Comprehensive Income (Loss) [Line Items]

Beginning Balance

$ (394)

^[1]

OCI before reclassification

Amortization of pension actuarial (gain)/loss, net of tax

Other comprehensive income

Ending Balance

(367)

Foreign Currency Translation Adjustments [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Beginning Balance

(104)

OCI before reclassification

Amortization of pension actuarial (gain)/loss, net of tax

Other comprehensive income

Ending Balance

(84)

Cash Flow Hedges Parent[Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Beginning Balance

(3)

OCI before reclassification

Amortization of pension actuarial (gain)/loss, net of tax

Other comprehensive income

Accumulated Other Comprehensive Income (Loss) [Line Items]

Beginning Balance

(287)

Amortization of pension actuarial (gain)/loss, net of tax

Other comprehensive income

Ending Balance

$ (283)

[1]

Accumulated Other Comprehensive Loss (Reclassifications from Accumulated Other Comprehensive Loss) (Details) $ in Millions	6 Months Ended
	Aug. 01, 2020 USD ($)
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Income tax benefit	$ (2)
Total, net of tax	4
Pension Benefits [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Pension benefits	$ 6

Fair Value Measurements (Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions	Aug. 01, 2020	Feb. 01, 2020	Aug. 03, 2019
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Assets measured at fair value on recurring basis
Liabilities measured at fair value on recurring basis
Level 1 [Member] \| Available-for-sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Assets measured at fair value on recurring basis
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Assets measured at fair value on recurring basis	8	7	10
Liabilities measured at fair value on recurring basis	4	4
Level 2 [Member] \| Available-for-sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Assets measured at fair value on recurring basis	7	7	6
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Assets measured at fair value on recurring basis
Liabilities measured at fair value on recurring basis
Level 3 [Member] \| Available-for-sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Assets measured at fair value on recurring basis
Forward Foreign Exchange Contracts [Member] \| Level 1 [Member] \| Derivative Financial Instruments, Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Liabilities measured at fair value on recurring basis
Forward Foreign Exchange Contracts [Member] \| Level 1 [Member] \| Derivative Financial Instruments, Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Assets measured at fair value on recurring basis
Forward Foreign Exchange Contracts [Member] \| Level 2 [Member] \| Derivative Financial Instruments, Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Liabilities measured at fair value on recurring basis	4	4
Forward Foreign Exchange Contracts [Member] \| Level 2 [Member] \| Derivative Financial Instruments, Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Assets measured at fair value on recurring basis	1		4
Forward Foreign Exchange Contracts [Member] \| Level 3 [Member] \| Derivative Financial Instruments, Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Liabilities measured at fair value on recurring basis
Forward Foreign Exchange Contracts [Member] \| Level 3 [Member] \| Derivative Financial Instruments, Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Assets measured at fair value on recurring basis

Fair Value Measurements (Carrying Value and Estimated Fair Value of Long-Term Debt) (Details) - USD ($) $ in Millions	Aug. 01, 2020	Feb. 01, 2020	Aug. 03, 2019
Fair Value Measurements [Abstract]
Long-term debt, Carrying value	$ 121	$ 122	$ 123
Long-term debt, Fair value	$ 129	$ 135	$ 136

Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Feb. 02, 2019	Aug. 01, 2020	Feb. 01, 2020	Aug. 03, 2019
Fair Value Measurements [Abstract]
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount		$ 0		$ 0
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount		0		0
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount		0		0
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount		0		0
Minority interests		$ 137	$ 137	$ 133
Increase (decrease) in minority interests	$ (7)

Earnings Per Share (Narrative) (Details) - shares shares in Millions	6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019
Earnings Per Share [Abstract]
Contingently issuable shares excluded from diluted earnings per share	0.5	0.7

Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income/(loss)	$ 45	$ 60	$ (65)	$ 232
Weighted-average common shares outstanding	104.5	110.8	104.4	111.6
Dilutive effect of potential common shares	0.6	0.3		0.5
Weighted-average common shares outstanding assuming dilution	105.1	111.1	104.4	112.1
Earnings per share - basic	$ 0.43	$ 0.55	$ (0.62)	$ 2.09
Earnings per share - diluted	$ 0.43	$ 0.55	$ (0.62)	$ 2.08
Stock Option Plans [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive share-based awards excluded from diluted calculation	2.7	2.4	2.7	1.8

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Pension (Net Benefit Expense (Income)) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
Pension [Abstract]
Service cost	$ 3	$ 5	$ 7	$ 10
Interest cost	6	6	11	13
Expected return on plan assets	(10)	(9)	(19)	(18)
Amortization of net loss (gain)	3	3	6	6
Net benefit expense (income)	$ 2	$ 5	$ 5	$ 11

Share-Based Compensation (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 17
Stock Option Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of options vested	5	$ 6
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of awards	4	$ 5
Nonvested Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 6
Unrecognized compensation cost related to nonvested stock options, weighted-average period expected to be recognized	1 year 7 months 6 days
2013 ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average expected award life (in years)	1 year	1 year

Share-Based Compensation (Total Compensation Expense Included in SG&A and the Related Tax Benefits Recognized) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
Share-Based Compensation [Abstract]
Options and shares purchased under the employee stock purchase plan	$ 2	$ 2	$ 4	$ 4
Restricted stock and restricted stock units	2	4	3	9
Total share-based compensation expense	4	$ 6	7	13
Tax benefit recognized	$ 1		$ 1	$ 1

Share-Based Compensation (Assumptions Used to Compute Share-Based Compensation Expense) (Details) - $ / shares	6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019
Stock Option Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average risk free rate of interest	0.60%	2.20%
Expected volatility	42.00%	38.00%
Weighted-average expected award life (in years)	5 years 6 months	5 years 6 months
Dividend yield	4.90%	2.60%
Weighted-average fair value	$ 5.03	$ 17.19
2013 ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average risk free rate of interest	2.00%	2.30%
Expected volatility	48.00%	57.00%
Weighted-average expected award life (in years)	1 year	1 year
Dividend yield	4.00%	2.80%
Weighted-average fair value	$ 15.03	$ 20.33

Share-Based Compensation (Options Granted Under Stock Option Plans) (Details) shares in Thousands	6 Months Ended
	Aug. 01, 2020 $ / shares shares
Number of Shares
Options outstanding at beginning of year	2,881
Granted	1,069
Exercised	(4)
Expired or cancelled	(57)
Options outstanding at end of period	3,889
Options exercisable at end of period	2,473
Options available for future grant at end of period	5,655
Weighted-Average Exercise Price
Options outstanding at beginning of year \| $ / shares	$ 54.21
Granted \| $ / shares	21.61
Exercised \| $ / shares	15.10
Expired or cancelled \| $ / shares	48.53
Options outstanding at end of period \| $ / shares	45.37
Options exercisable at end of period \| $ / shares	$ 54.67
Options outstanding, weighted-average remaining contractual life	6 years 4 months 24 days
Options exercisable at end of period, Weighted-average remaining contractual life	4 years 9 months 18 days

Share-Based Compensation (Total Intrinsic Value of Options Exercised) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
Intrinsic value of stock options
Exercised	$ 0	$ 0	$ 0	$ 5

Share-Based Compensation (Aggregate Intrinsic Value for Stock Options Outstanding and Exercisable) (Details) - USD ($) $ in Millions	Aug. 01, 2020	Aug. 03, 2019
Share-Based Compensation [Abstract]
Outstanding	$ 10	$ 5
Outstanding and exercisable	$ 1	$ 5

Share-Based Compensation (Information about Stock Options Outstanding and Exercisable) (Details) - $ / shares shares in Thousands	6 Months Ended
	Aug. 01, 2020	Feb. 01, 2020
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Number of Shares	3,889	2,881
Options outstanding, weighted-average remaining contractual life	6 years 4 months 24 days
Options Outstanding, Weighted-Average Exercise Price	$ 45.37	$ 54.21
Options Exercisable, Number of Shares	2,473
Options Exercisable, Weighted-Average Exercise Price	$ 54.67
$18.84 to $23.09 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit	18.84
Range of Exercise Prices, Upper Limit	$ 23.09
Options Outstanding, Number of Shares	1,176
Options outstanding, weighted-average remaining contractual life	8 years 9 months 18 days
Options Outstanding, Weighted-Average Exercise Price	$ 21.33
Options Exercisable, Number of Shares	117
Options Exercisable, Weighted-Average Exercise Price	$ 18.84
$24.75 to $36.51 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit	24.75
Range of Exercise Prices, Upper Limit	$ 36.51
Options Outstanding, Number of Shares	376
Options outstanding, weighted-average remaining contractual life	2 years 7 months 6 days
Options Outstanding, Weighted-Average Exercise Price	$ 32.13
Options Exercisable, Number of Shares	333
Options Exercisable, Weighted-Average Exercise Price	$ 31.77
$44.78 to $45.75 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit	44.78
Range of Exercise Prices, Upper Limit	$ 45.75
Options Outstanding, Number of Shares	561
Options outstanding, weighted-average remaining contractual life	5 years 8 months 12 days
Options Outstanding, Weighted-Average Exercise Price	$ 44.91
Options Exercisable, Number of Shares	454
Options Exercisable, Weighted-Average Exercise Price	$ 44.94
$46.64 to $62.11 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit	46.64
Range of Exercise Prices, Upper Limit	$ 62.11
Options Outstanding, Number of Shares	904
Options outstanding, weighted-average remaining contractual life	5 years 9 months 18 days
Options Outstanding, Weighted-Average Exercise Price	$ 60.00
Options Exercisable, Number of Shares	697
Options Exercisable, Weighted-Average Exercise Price	$ 60.51
$63.33 to $73.21 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit	63.33
Range of Exercise Prices, Upper Limit	$ 73.21
Options Outstanding, Number of Shares	872
Options outstanding, weighted-average remaining contractual life	5 years 10 months 24 days
Options Outstanding, Weighted-Average Exercise Price	$ 68.60
Options Exercisable, Number of Shares	872
Options Exercisable, Weighted-Average Exercise Price	$ 68.60

Share-Based Compensation (Changes in Nonvested Options) (Details) - Restricted Stock Units [Member]
$ / shares in Units, shares in Thousands, $ in Millions

6 Months Ended

Aug. 01, 2020

USD ($)

$ / shares

Number of Shares

Nonvested, Beginning Balance

936

Granted

416

Vested

(67)

Performance adjustment

(132)

Expired or cancelled

(44)

^[1]

Nonvested, Ending Balance

1,109

Aggregate value | $

$ 42

Wtg. Avg. remaining contractual life (in years)

1 year 4 months 24 days

Weighted-Average Grant Date Fair Value per Share

Nonvested, Beginning Balance | $ / shares

$ 49.25

Granted | $ / shares

22.59

Vested | $ / shares

65.83

Cancelled | $ / shares

43.45

^[1]

Nonvested, Ending Balance | $ / shares

$ 37.65

[1]	This represents adjustments made to performance-based RSU awards and reflect changes in estimates based upon our current performance against predefined financial targets.

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
Income Taxes (Narrative) (Details) - USD ($) $ in Millions	Aug. 01, 2020	Aug. 01, 2020
Income Taxes [Abstract]
Other Income Tax Expense (Benefit), Continuing Operations	$ 25	$ 30
Effective Income Tax Rate Continuing Operations	35.40%	(85.50%)
Tax charge related to the revaluation of intellectual property rights	$ (2)	$ 27

Subsequent Events (Details) - Subsequent Event [Member]	Aug. 20, 2020 $ / shares
Dividends, date declared	Aug. 20, 2020
Dividends, amount per share	$ 0.15
Dividends, date to be paid	Oct. 30, 2020
Dividends, date of record	Oct. 16, 2020