Change in Accounting Policy

3 Months Ended

May 03, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Change in Accounting Policy

CHANGE IN ACCOUNTING POLICY

During the first quarter of fiscal 2015, the Company changed its accounting policy for shipping and handling costs from the Company's stores, locations or distribution centers to customers and for online fulfillment center costs. Under the new accounting policy, these costs are included in Cost of Sales, whereas they were previously included in Operating Expenses. Including these expenses in Cost of Sales will better align these costs with the related revenue in the gross profit calculation. This change in accounting policy will be applied retrospectively.

The Consolidated Statements of Earnings for the first quarter of fiscal 2014 have been reclassified to reflect this change in accounting policy. The impact of this reclassification was an increase of $128 million to Cost of Sales and a corresponding decrease of $128 million to Operating Expenses for the first quarter of fiscal 2014. This reclassification had no impact on Net Sales, Operating Income, Net Earnings or Earnings per Share.