Segment Reporting (Tables)

6 Months Ended

Jul. 30, 2011

Segment Reporting

Business Segment Results and Total Assets by Segment

Business Segment Results	Three Months Ended July 30, 2011										Three Months Ended July 31, 2010
	U.S.		U.S. Credit								U.S.		U.S. Credit
(millions)	Retail		Card		Canadian			Total			Retail		Card		Canadian		Total
Sales/Credit card revenues	$	15,895	$	345	$	—		$	16,240		$	15,126	$	406	$	—	$	15,532
Cost of sales	10,872		—		—			10,872			10,293		—		—		10,293
Bad debt expense(a)	—		15		—			15			—		138		—		138
Selling, general and administrative/ Operations and marketing expenses(a), (b)	3,382		137		25			3,544			3,246		93		—		3,339
Depreciation and amortization	494		4		11			509			491		5		—		496
Earnings/(loss) before interest expense and income taxes	1,147		189		(36		)	1,300			1,096		170		—		1,266
Interest expense on nonrecourse debt collateralized by credit card receivables	—		18		—			18			—		21		—		21
Segment profit/(loss)	$	1,147	$	171	$	(36	)	1,282			$	1,096	$	149	$	—	$	1,245
Unallocated (income) and expenses
Other interest expense								174									165
Interest income								(1		)							(1		)
Earnings before income taxes								$	1,109								$	1,081

	Six Months Ended July 30, 2011										Six Months Ended July 31, 2010
	U.S.		U.S. Credit								U.S.		U.S. Credit
(millions)	Retail		Card		Canadian			Total			Retail		Card		Canadian		Total
Sales/Credit card revenues	$	31,475	$	700	$	—		$	32,175		$	30,283	$	841	$	—	$	31,124
Cost of sales	21,710		—		—			21,710			20,705		—		—		20,705
Bad debt expense(a)	—		27		—			27			—		335		—		335
Selling, general and administrative/ Operations and marketing expenses(a), (b)	6,554		262		36			6,852			6,370		193		—		6,563
Depreciation and amortization	1,002		9		11			1,022			1,003		9		—		1,012
Earnings/(loss) before interest expense and income taxes	2,209		402		(47		)	2,564			2,205		304		—		2,508
Interest expense on nonrecourse debt collateralized by credit card receivables	—		37		—			37			—		44		—		44
Segment profit/(loss)	$	2,209	$	365	$	(47	)	2,527			$	2,205	$	260	$	—	2,465
Unallocated (income) and expenses
Other interest expense								338									330
Interest income								(1		)							(1		)
Earnings before income taxes								$	2,190								$	2,135

(a)The combination of bad debt expense and operations and marketing expenses, less amounts reimbursed to the U.S. Retail Segment, within the U.S. Credit Card Segment represent credit card expenses on the Consolidated Statements of Operations.

(b)Loyalty Program discounts are recorded as reductions to sales in our U.S. Retail Segment. Effective with the October 2010 nationwide launch of our new 5% REDcard Rewards loyalty program, we changed the formula under which our U.S. Credit Card Segment reimburses our U.S. Retail Segment to better align with the attributes of the new program. In the three and six months ended July 30, 2011, these reimbursed amounts were $66 million and $115 million compared with $17 million and $34 million in the corresponding periods in 2010. In all periods these amounts were recorded as reductions to SG&A expenses within the U.S. Retail Segment and increases to operations and marketing expenses within the U.S. Credit Card Segment.

Note: The sum of the segment amounts may not equal the total amounts due to rounding.

Total Assets by Segment
(millions)	July 30, 2011		January 29, 2011		July 31, 2010
U.S. Retail	$	36,823	$	37,324	$	37,182
U.S. Credit Card	5,931		6,381		6,473
Canadian	2,745		—		—
Total	$	45,499	$	43,705	$	43,655