Three Months Ended | |||||||||
(In millions) | May 2, 2020 | May 4, 2019 | |||||||
Total net sales | $ | 1,082 | $ | 2,439 | |||||
Credit income and other | 114 | 116 | |||||||
Total revenues | 1,196 | 2,555 | |||||||
Costs and expenses/(income): | |||||||||
Cost of goods sold (exclusive of depreciation and amortization shown separately below) | 813 | 1,630 | |||||||
Selling, general and administrative (SG&A) | 572 | 856 | |||||||
Depreciation and amortization | 135 | 147 | |||||||
Real estate and other, net | (2 | ) | (5 | ) | |||||
Restructuring and management transition (1) | 155 | 20 | |||||||
Total costs and expenses | 1,673 | 2,648 | |||||||
Operating income/(loss) | (477 | ) | (93 | ) | |||||
Other components of net periodic pension cost/(income) | (23 | ) | (13 | ) | |||||
Net interest expense | 75 | 73 | |||||||
Loss due to discontinuance of hedge accounting | 77 | — | |||||||
Income/(loss) before income taxes | (606 | ) | (153 | ) | |||||
Income tax expense/(benefit) | (60 | ) | 1 | ||||||
Net income/(loss) | $ | (546 | ) | $ | (154 | ) | |||
Earnings/(loss) per share - basic | $ | (1.69 | ) | $ | (0.48 | ) | |||
Earnings/(loss) per share - diluted | $ | (1.69 | ) | $ | (0.48 | ) |
Three Months Ended | ||||||||
(In millions) | May 2, 2020 | May 4, 2019 | ||||||
Net income/(loss) | $ | (546 | ) | $ | (154 | ) | ||
Other comprehensive income/(loss), net of tax: | ||||||||
Retirement benefit plans | ||||||||
Reclassification for amortization of prior service (credit)/cost | 1 | 2 | ||||||
Cash flow hedges | ||||||||
Gain/(loss) on interest rate swaps | — | (11 | ) | |||||
Reclassification for periodic settlements | — | (2 | ) | |||||
Total other comprehensive income/(loss), net of tax | 1 | (11 | ) | |||||
Total comprehensive income/(loss), net of tax | $ | (545 | ) | $ | (165 | ) |
May 2, 2020 | May 4, 2019 | February 1, 2020 | |||||||||
(In millions, except per share data) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash in banks and in transit | $ | 62 | $ | 160 | $ | 108 | |||||
Cash short-term investments | 636 | 11 | 278 | ||||||||
Cash and cash equivalents | 698 | 171 | 386 | ||||||||
Merchandise inventory | 2,221 | 2,477 | 2,166 | ||||||||
Prepaid expenses and other | 272 | 287 | 174 | ||||||||
Total current assets | 3,191 | 2,935 | 2,726 | ||||||||
Property and equipment, net | 3,344 | 3,669 | 3,488 | ||||||||
Operating lease assets | 934 | 917 | 998 | ||||||||
Prepaid pension | 138 | 156 | 120 | ||||||||
Other assets | 616 | 665 | 657 | ||||||||
Total assets | $ | 8,223 | $ | 8,342 | $ | 7,989 | |||||
Liabilities and stockholders' equity | |||||||||||
Current liabilities: | |||||||||||
Merchandise accounts payable | $ | 579 | $ | 842 | $ | 786 | |||||
Other accounts payable and accrued expenses | 829 | 925 | 931 | ||||||||
Current operating lease liabilities | 84 | 84 | 67 | ||||||||
Current portion of finance leases and note payable | — | 2 | 1 | ||||||||
Current portion of long-term debt, net | 4,884 | 92 | 147 | ||||||||
Total current liabilities | 6,376 | 1,945 | 1,932 | ||||||||
Noncurrent operating lease liabilities | 1,086 | 1,082 | 1,108 | ||||||||
Long-term debt | — | 3,826 | 3,574 | ||||||||
Deferred taxes | 48 | 119 | 116 | ||||||||
Other liabilities | 365 | 336 | 430 | ||||||||
Total liabilities | 7,875 | 7,308 | 7,160 | ||||||||
Stockholders' equity | |||||||||||
Common stock (1) | 161 | 158 | 160 | ||||||||
Additional paid-in capital | 4,725 | 4,715 | 4,723 | ||||||||
Reinvested earnings/(accumulated deficit) | (4,215 | ) | (3,553 | ) | (3,667 | ) | |||||
Accumulated other comprehensive income/(loss) | (323 | ) | (286 | ) | (387 | ) | |||||
Total stockholders’ equity | 348 | 1,034 | 829 | ||||||||
Total liabilities and stockholders' equity | $ | 8,223 | $ | 8,342 | $ | 7,989 |
(In millions) | Number of Common Shares | Common Stock | Additional Paid-in Capital | Reinvested Earnings/(Accumulated Deficit) | Accumulated Other Comprehensive Income/(Loss) | Total Stockholders' Equity | ||||||||||||||||
February 1, 2020 | 320.5 | $ | 160 | $ | 4,723 | $ | (3,667 | ) | $ | (387 | ) | $ | 829 | |||||||||
Net income/(loss) | — | — | — | (546 | ) | — | (546 | ) | ||||||||||||||
Discontinuance of hedge accounting | 63 | 63 | ||||||||||||||||||||
Other comprehensive income/(loss) | — | — | — | 1 | 1 | |||||||||||||||||
Stock-based compensation and other | 1.4 | 1 | 2 | (2 | ) | — | 1 | |||||||||||||||
May 2, 2020 | 321.9 | $ | 161 | $ | 4,725 | $ | (4,215 | ) | $ | (323 | ) | $ | 348 |
(In millions) | Number of Common Shares | Common Stock | Additional Paid-in Capital | Reinvested Earnings/(Accumulated Deficit) | Accumulated Other Comprehensive Income/(Loss) | Total Stockholders' Equity | ||||||||||||||||
February 2, 2019 | 316.1 | $ | 158 | $ | 4,713 | $ | (3,373 | ) | $ | (328 | ) | $ | 1,170 | |||||||||
ASC 842 (Leases) and ASU 2018-02 (Stranded Taxes) adoption (See Note 2) | — | — | — | (26 | ) | 53 | 27 | |||||||||||||||
Net income/(loss) | — | — | — | (154 | ) | — | (154 | ) | ||||||||||||||
Other comprehensive income/(loss) | — | — | — | — | (11 | ) | (11 | ) | ||||||||||||||
Stock-based compensation and other | 0.7 | — | 2 | — | — | 2 | ||||||||||||||||
May 4, 2019 | 316.8 | $ | 158 | $ | 4,715 | $ | (3,553 | ) | $ | (286 | ) | $ | 1,034 |
Three Months Ended | |||||||
(In millions) | May 2, 2020 | May 4, 2019 | |||||
Cash flows from operating activities: | |||||||
Net income/(loss) | $ | (546 | ) | $ | (154 | ) | |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||||
Restructuring and management transition | 139 | 15 | |||||
Net gain on sale of operating assets | — | (4 | ) | ||||
Discontinuance of hedge accounting | 77 | — | |||||
Depreciation and amortization | 135 | 147 | |||||
Benefit plans | (22 | ) | (14 | ) | |||
Stock-based compensation | 2 | 2 | |||||
Deferred taxes | (60 | ) | (3 | ) | |||
Change in cash from: | |||||||
Inventory | (55 | ) | (40 | ) | |||
Prepaid expenses and other assets | (98 | ) | (98 | ) | |||
Merchandise accounts payable | (207 | ) | (5 | ) | |||
Income taxes | (1 | ) | 3 | ||||
Accrued expenses and other | (178 | ) | (54 | ) | |||
Net cash provided by/(used in) operating activities | (814 | ) | (205 | ) | |||
Cash flows from investing activities: | |||||||
Capital expenditures | (33 | ) | (71 | ) | |||
Proceeds from sale of operating assets | — | 8 | |||||
Net cash provided by/(used in) investing activities | (33 | ) | (63 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from borrowings under the credit facility | 1,950 | 408 | |||||
Payments of borrowings under the credit facility | (771 | ) | (290 | ) | |||
Payments of finance leases and note payable | (1 | ) | (1 | ) | |||
Payments of long-term debt | (19 | ) | (11 | ) | |||
Net cash provided by/(used in) financing activities | 1,159 | 106 | |||||
Net increase/(decrease) in cash and cash equivalents | 312 | (162 | ) | ||||
Cash and cash equivalents at beginning of period | 386 | 333 | |||||
Cash and cash equivalents at end of period | $ | 698 | $ | 171 |