QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Page | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 6. |
($ and shares in millions except par value) | May 1, 2021 | January 30, 2021 | May 2, 2020 | ||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Short-term investments | |||||||||||||||||
Merchandise inventory | |||||||||||||||||
Other current assets | |||||||||||||||||
Total current assets | |||||||||||||||||
Property and equipment, net of accumulated depreciation of $ | |||||||||||||||||
Operating lease assets | |||||||||||||||||
Other long-term assets | |||||||||||||||||
Total assets | $ | $ | $ | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Revolving credit facility | $ | $ | $ | ||||||||||||||
Accounts payable | |||||||||||||||||
Accrued expenses and other current liabilities | |||||||||||||||||
Current portion of operating lease liabilities | |||||||||||||||||
Income taxes payable | |||||||||||||||||
Total current liabilities | |||||||||||||||||
Long-term liabilities: | |||||||||||||||||
Long-term debt | |||||||||||||||||
Long-term operating lease liabilities | |||||||||||||||||
Other long-term liabilities | |||||||||||||||||
Total long-term liabilities | |||||||||||||||||
Commitments and contingencies (see Note 9) | |||||||||||||||||
Stockholders’ equity: | |||||||||||||||||
Common stock $ | |||||||||||||||||
Authorized | |||||||||||||||||
Additional paid-in capital | |||||||||||||||||
Retained earnings | |||||||||||||||||
Accumulated other comprehensive income | |||||||||||||||||
Total stockholders’ equity | |||||||||||||||||
Total liabilities and stockholders’ equity | $ | $ | $ |
13 Weeks Ended | |||||||||||
($ and shares in millions except per share amounts) | May 1, 2021 | May 2, 2020 | |||||||||
Net sales | $ | $ | |||||||||
Cost of goods sold and occupancy expenses | |||||||||||
Gross profit | |||||||||||
Operating expenses | |||||||||||
Operating income (loss) | ( | ||||||||||
Interest expense | |||||||||||
Interest income | ( | ( | |||||||||
Income (loss) before income taxes | ( | ||||||||||
Income taxes | ( | ||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Weighted-average number of shares - basic | |||||||||||
Weighted-average number of shares - diluted | |||||||||||
Earnings (loss) per share - basic | $ | $ | ( | ||||||||
Earnings (loss) per share - diluted | $ | $ | ( | ||||||||
13 Weeks Ended | |||||||||||
($ in millions) | May 1, 2021 | May 2, 2020 | |||||||||
Net income (loss) | $ | $ | ( | ||||||||
Other comprehensive income (loss), net of tax | |||||||||||
Foreign currency translation | ( | ( | |||||||||
Change in fair value of derivative financial instruments, net of tax of $ | ( | ||||||||||
Reclassification adjustment for losses (gains) on derivative financial instruments, net of tax of $ | ( | ||||||||||
Other comprehensive income (loss), net of tax | ( | ||||||||||
Comprehensive income (loss) | $ | $ | ( |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | |||||||||||||||||||||||||||||||||||
($ and shares in millions except per share amounts) | Shares | Amount | Total | |||||||||||||||||||||||||||||||||||
Balance as of January 30, 2021 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
Net income for the thirteen weeks ended May 1, 2021 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation | ( | ( | ||||||||||||||||||||||||||||||||||||
Change in fair value of derivative financial instruments | ( | ( | ||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock related to stock options and employee stock purchase plans | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock and withholding tax payments related to vesting of stock units | ( | ( | ||||||||||||||||||||||||||||||||||||
Share-based compensation, net of forfeitures | ||||||||||||||||||||||||||||||||||||||
Balance as of May 1, 2021 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
Balance as of February 1, 2020 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
Net loss for the thirteen weeks ended May 2, 2020 | ( | ( | ||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation | ( | ( | ||||||||||||||||||||||||||||||||||||
Change in fair value of derivative financial instruments | ||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | ( | ( | ||||||||||||||||||||||||||||||||||||
Issuance of common stock related to stock options and employee stock purchase plans | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock and withholding tax payments related to vesting of stock units | ( | ( | ||||||||||||||||||||||||||||||||||||
Share-based compensation, net of forfeitures | ||||||||||||||||||||||||||||||||||||||
Common stock dividends declared ($ | ( | ( | ||||||||||||||||||||||||||||||||||||
Balance as of May 2, 2020 | $ | $ | $ | $ | $ |
13 Weeks Ended | |||||||||||
($ in millions) | May 1, 2021 | May 2, 2020 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Share-based compensation | |||||||||||
Impairment of operating lease assets | |||||||||||
Impairment of store assets | |||||||||||
Amortization of debt issuance costs | |||||||||||
Non-cash and other items | |||||||||||
Loss on divestiture activity | |||||||||||
Deferred income taxes | ( | ||||||||||
Changes in operating assets and liabilities: | |||||||||||
Merchandise inventory | ( | ||||||||||
Other current assets and other long-term assets | |||||||||||
Accounts payable | ( | ( | |||||||||
Accrued expenses and other current liabilities | ( | ||||||||||
Income taxes payable, net of receivables and other tax-related items | ( | ( | |||||||||
Other long-term liabilities | ( | ||||||||||
Operating lease assets and liabilities, net | ( | ( | |||||||||
Net cash provided by (used for) operating activities | ( | ||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Proceeds from divestiture activity | |||||||||||
Purchases of short-term investments | ( | ( | |||||||||
Proceeds from sales and maturities of short-term investments | |||||||||||
Net cash provided by (used for) investing activities | ( | ||||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from revolving credit facility | |||||||||||
Proceeds from issuances under share-based compensation plans | |||||||||||
Withholding tax payments related to vesting of stock units | ( | ( | |||||||||
Cash dividends paid | ( | ||||||||||
Net cash provided by (used for) financing activities | ( | ||||||||||
Effect of foreign exchange rate fluctuations on cash, cash equivalents, and restricted cash | ( | ( | |||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | ( | ||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | $ | |||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid for interest during the period | $ | $ | |||||||||
Cash paid for income taxes during the period, net of refunds | $ | $ | |||||||||
($ in millions) | May 1, 2021 | January 30, 2021 | May 2, 2020 | ||||||||||||||
Cash and cash equivalents, per Condensed Consolidated Balance Sheets | $ | $ | $ | ||||||||||||||
Restricted cash included in other current assets | |||||||||||||||||
Restricted cash included in other long-term assets | |||||||||||||||||
Total cash, cash equivalents, and restricted cash, per Condensed Consolidated Statements of Cash Flows | $ | $ | $ |
13 Weeks Ended | |||||||||||
($ in millions) | May 1, 2021 | May 2, 2020 | |||||||||
Store sales (1) | $ | $ | |||||||||
Online sales (2) | |||||||||||
Total net sales | $ | $ | |||||||||
($ in millions) | Old Navy Global | Gap Global | Banana Republic Global | Athleta (2) | Other (3) | Total | ||||||||||||||||||||||||||||||||
13 Weeks Ended May 1, 2021 | ||||||||||||||||||||||||||||||||||||||
U.S. (1) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Canada | ||||||||||||||||||||||||||||||||||||||
Europe | ||||||||||||||||||||||||||||||||||||||
Asia | ||||||||||||||||||||||||||||||||||||||
Other regions | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
($ in millions) | Old Navy Global | Gap Global | Banana Republic Global | Athleta (2) | Other (4) | Total | ||||||||||||||||||||||||||||||||
13 Weeks Ended May 2, 2020 | ||||||||||||||||||||||||||||||||||||||
U.S. (1) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Canada | ||||||||||||||||||||||||||||||||||||||
Europe | ||||||||||||||||||||||||||||||||||||||
Asia | ||||||||||||||||||||||||||||||||||||||
Other regions | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
($ in millions) | May 1, 2021 | January 30, 2021 | May 2, 2020 | ||||||||||||||
2021 Notes | $ | $ | $ | ||||||||||||||
2023 Notes | |||||||||||||||||
2025 Notes | |||||||||||||||||
2027 Notes | |||||||||||||||||
Less: Unamortized debt issuance costs | ( | ( | |||||||||||||||
Total long-term debt | $ | $ | $ |
Scheduled Maturity ($ in millions) | Principal | Interest Rate | Interest Payments | ||||||||||||||
Senior Secured Notes (1) | |||||||||||||||||
May 15, 2023 | $ | % | |||||||||||||||
May 15, 2025 | % | ||||||||||||||||
May 15, 2027 | % | ||||||||||||||||
Total issuance | $ |
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||
($ in millions) | May 1, 2021 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents | $ | $ | — | $ | $ | ||||||||||||||||||
Short-term investments | |||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
Deferred compensation plan assets | |||||||||||||||||||||||
Other assets | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivative financial instruments | $ | $ | $ | $ | |||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||
($ in millions) | January 30, 2021 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Short-term investments | |||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
Deferred compensation plan assets | |||||||||||||||||||||||
Other assets | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivative financial instruments | $ | $ | $ | $ | |||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||
($ in millions) | May 2, 2020 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents | $ | $ | — | $ | $ | ||||||||||||||||||
Short-term investments | |||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
Deferred compensation plan assets | |||||||||||||||||||||||
Other assets | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivative financial instruments | $ | $ | $ | $ |
($ in millions) | May 1, 2021 | January 30, 2021 | May 2, 2020 | ||||||||||||||
Derivatives designated as cash flow hedges | $ | $ | $ | ||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||
Total | $ | $ | $ |
($ in millions) | May 1, 2021 | January 30, 2021 | May 2, 2020 | ||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||
Other current assets | $ | $ | $ | ||||||||||||||
Accrued expenses and other current liabilities | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Other current assets | |||||||||||||||||
Accrued expenses and other current liabilities | |||||||||||||||||
Total derivatives in an asset position | $ | $ | $ | ||||||||||||||
Total derivatives in a liability position | $ | $ | $ |
Location and Amount of (Gain) Loss Recognized in Net Income (Loss) | |||||||||||||||||||||||
13 Weeks Ended May 1, 2021 | 13 Weeks Ended May 2, 2020 | ||||||||||||||||||||||
($ in millions) | Cost of goods sold and occupancy expenses | Operating expenses | Cost of goods sold and occupancy expenses | Operating expenses | |||||||||||||||||||
Total amount of expense line items presented in the Condensed Consolidated Statements of Operations in which the effects of derivatives are recorded | $ | $ | $ | $ | |||||||||||||||||||
(Gain) loss recognized in net income (loss) | |||||||||||||||||||||||
Derivatives designated as cash flow hedges | ( | ||||||||||||||||||||||
Derivatives not designated as hedging instruments | ( | ||||||||||||||||||||||
Total (gain) loss recognized in net income (loss) | $ | $ | $ | ( | $ | ( |
13 Weeks Ended | |||||||||||
(shares in millions) | May 1, 2021 | May 2, 2020 | |||||||||
Weighted-average number of shares - basic | |||||||||||
Common stock equivalents (1) | |||||||||||
Weighted-average number of shares - diluted |
13 Weeks Ended | |||||
May 1, 2021 | |||||
Old Navy Global | 35 | % | |||
Gap Global | 29 | % | |||
Banana Republic Global | (4) | % | |||
Athleta | 27 | % | |||
The Gap, Inc. | 28 | % |
January 30, 2021 | 13 Weeks Ended May 1, 2021 | May 1, 2021 | |||||||||||||||||||||||||||
Number of Store Locations | Number of Stores Opened | Number of Stores Closed (1) | Number of Store Locations | Square Footage (in millions) | |||||||||||||||||||||||||
Old Navy North America | 1,220 | 24 | 2 | 1,242 | 19.9 | ||||||||||||||||||||||||
Gap North America | 556 | 1 | 5 | 552 | 5.8 | ||||||||||||||||||||||||
Gap Asia | 340 | 5 | 8 | 337 | 2.9 | ||||||||||||||||||||||||
Gap Europe | 117 | 1 | 2 | 116 | 1.0 | ||||||||||||||||||||||||
Banana Republic North America | 471 | 1 | 3 | 469 | 4.0 | ||||||||||||||||||||||||
Banana Republic Asia | 47 | 3 | 2 | 48 | 0.2 | ||||||||||||||||||||||||
Athleta North America | 199 | 3 | — | 202 | 0.8 | ||||||||||||||||||||||||
Intermix North America | 31 | — | — | 31 | 0.1 | ||||||||||||||||||||||||
Janie and Jack North America (2) | 119 | — | — | — | — | ||||||||||||||||||||||||
Company-operated stores total | 3,100 | 38 | 22 | 2,997 | 34.7 | ||||||||||||||||||||||||
Franchise | 615 | 36 | 77 | 574 | N/A | ||||||||||||||||||||||||
Total | 3,715 | 74 | 99 | 3,571 | 34.7 | ||||||||||||||||||||||||
Decrease over prior year | (8.7) | % | (5.4) | % | |||||||||||||||||||||||||
February 1, 2020 | 13 Weeks Ended May 2, 2020 | May 2, 2020 | |||||||||||||||||||||||||||
Number of Store Locations | Number of Stores Opened | Number of Stores Closed (1) | Number of Store Locations | Square Footage (in millions) | |||||||||||||||||||||||||
Old Navy North America | 1,207 | 4 | 3 | 1,208 | 19.5 | ||||||||||||||||||||||||
Old Navy Asia | 17 | — | 17 | — | — | ||||||||||||||||||||||||
Gap North America | 675 | — | 8 | 667 | 7.1 | ||||||||||||||||||||||||
Gap Asia | 358 | 5 | 2 | 361 | 3.2 | ||||||||||||||||||||||||
Gap Europe | 137 | — | 7 | 130 | 1.1 | ||||||||||||||||||||||||
Banana Republic North America | 541 | — | 2 | 539 | 4.5 | ||||||||||||||||||||||||
Banana Republic Asia | 48 | 1 | 3 | 46 | 0.2 | ||||||||||||||||||||||||
Athleta North America | 190 | 1 | — | 191 | 0.8 | ||||||||||||||||||||||||
Intermix North America | 33 | — | — | 33 | 0.1 | ||||||||||||||||||||||||
Janie and Jack North America | 139 | — | 1 | 138 | 0.2 | ||||||||||||||||||||||||
Company-operated stores total | 3,345 | 11 | 43 | 3,313 | 36.7 | ||||||||||||||||||||||||
Franchise | 574 | 29 | 5 | 598 | N/A | ||||||||||||||||||||||||
Total | 3,919 | 40 | 48 | 3,911 | 36.7 | ||||||||||||||||||||||||
Increase (decrease) over prior year | 1.6 | % | (0.3) | % |
13 Weeks Ended | |||||||||||
($ in millions) | May 1, 2021 | May 2, 2020 | |||||||||
Cost of goods sold and occupancy expenses | $ | 2,361 | $ | 1,839 | |||||||
Gross profit | $ | 1,630 | $ | 268 | |||||||
Cost of goods sold and occupancy expenses as a percentage of net sales | 59.2 | % | 87.3 | % | |||||||
Gross margin | 40.8 | % | 12.7 | % |
13 Weeks Ended | |||||||||||
($ in millions) | May 1, 2021 | May 2, 2020 | |||||||||
Operating expenses | $ | 1,390 | $ | 1,512 | |||||||
Operating expenses as a percentage of net sales | 34.8 | % | 71.8 | % | |||||||
Operating margin | 6.0 | % | (59.0) | % |
13 Weeks Ended | |||||||||||
($ in millions) | May 1, 2021 | May 2, 2020 | |||||||||
Interest expense | $ | 54 | $ | 19 |
13 Weeks Ended | |||||||||||
($ in millions) | May 1, 2021 | May 2, 2020 | |||||||||
Income taxes | $ | 21 | $ | (327) | |||||||
Effective tax rate | 11.2 | % | 26.0 | % |
($ in millions) | Source of Liquidity | Outstanding Indebtedness | Total Available Liquidity | ||||||||||||||
Cash and cash equivalents | $ | 2,066 | $ | — | $ | 2,066 | |||||||||||
Short-term investments | 475 | — | 475 | ||||||||||||||
Debt | |||||||||||||||||
8.375 percent 2023 Notes | 500 | 500 | — | ||||||||||||||
8.625 percent 2025 Notes | 750 | 750 | — | ||||||||||||||
8.875 percent 2027 Notes | 1,000 | 1,000 | — | ||||||||||||||
Total | $ | 4,791 | $ | 2,250 | $ | 2,541 |
13 Weeks Ended | |||||||||||
($ in millions) | May 1, 2021 | May 2, 2020 | |||||||||
Net cash provided by (used for) operating activities | $ | 340 | $ | (940) | |||||||
Less: Purchases of property and equipment | (124) | (122) | |||||||||
Free cash flow | $ | 216 | $ | (1,062) |
Incorporated by Reference | ||||||||||||||||||||||||||||||||||||||
Exhibit No. | Exhibit Description | Form | File No. | Exhibit | Filing Date | Filed/ Furnished Herewith | ||||||||||||||||||||||||||||||||
3.1 | Amended and Restated Certificate of Incorporation (P) | 10-K | 1-7562 | 3.1 | April 26, 1993 | |||||||||||||||||||||||||||||||||
Certificate of Amendment of Amended and Restated Certificate of Incorporation | 10-K | 1-7562 | 3.2 | April 4, 2000 | ||||||||||||||||||||||||||||||||||
Amended and Restated Bylaws (effective March 23, 2020) | 8-K | 1-7562 | 3.1 | March 5, 2020 | ||||||||||||||||||||||||||||||||||
10.1† | 2021 Form of Non-Qualified Stock Option Agreement under the 2016 Long-Term Incentive Plan | 8-K | 1-7562 | 10.1 | March 9, 2021 | |||||||||||||||||||||||||||||||||
10.2† | 2021 Form of Restricted Stock Unit Award Agreement under the 2016 Long-Term Incentive Plan | 8-K | 1-7562 | 10.2 | March 9, 2021 | |||||||||||||||||||||||||||||||||
10.3† | 2021 Form of Performance Share Agreement under the 2016 Long-Term Incentive Plan | 8-K | 1-7562 | 10.3 | March 9, 2021 | |||||||||||||||||||||||||||||||||
10.4* | Credit Card Program Agreement, dated as of April 8, 2021, by and among Registrant, Old Navy, LLC, Banana Republic, LLC, Athleta LLC and Barclays Bank Delaware | X | ||||||||||||||||||||||||||||||||||||
Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer of The Gap, Inc. (Section 302 of the Sarbanes-Oxley Act of 2002) | X | |||||||||||||||||||||||||||||||||||||
Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer of The Gap, Inc. (Section 302 of the Sarbanes-Oxley Act of 2002) | X | |||||||||||||||||||||||||||||||||||||
Certification of the Chief Executive Officer of The Gap, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | |||||||||||||||||||||||||||||||||||||
Certification of the Chief Financial Officer of The Gap, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | |||||||||||||||||||||||||||||||||||||
101 | The following materials from The Gap, Inc.’s Quarterly Report on Form 10-Q for the quarter ended May 1, 2021, formatted in Inline XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income (Loss), (iv) the Condensed Consolidated Statements of Stockholders' Equity; (v) the Condensed Consolidated Statements of Cash Flows; and (vi) Notes to Condensed Consolidated Financial Statements | X | ||||||||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) | X |
THE GAP, INC. | |||||||||||
Date: | May 28, 2021 | By | /s/ Sonia Syngal | ||||||||
Sonia Syngal | |||||||||||
Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
Date: | May 28, 2021 | By | /s/ Katrina O'Connell | ||||||||
Katrina O'Connell | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
(Principal Financial and Accounting Officer) |
Page | ||||||||
ARTICLE I. | DEFINITIONS | 1 | ||||||
1.1 | Definitions | 1 | ||||||
1.2 | Rules of Construction | 8 | ||||||
1.3 | Obligation Effectiveness | 10 | ||||||
ARTICLE II. | THE PROGRAM AND PROGRAM CARDS | 11 | ||||||
2.1 | Generally | 11 | ||||||
2.2 | Program Card Products and Value Propositions | 11 | ||||||
2.3 | Product Innovations | 11 | ||||||
2.4 | Program Exclusivity | 11 | ||||||
2.5 | Conversion of Back Book Assets | 11 | ||||||
ARTICLE III. | MARKETING AND PROMOTION OF PROGRAM | 12 | ||||||
3.1 | Annual Marketing Plan | 12 | ||||||
3.2 | Marketing | 13 | ||||||
3.3 | Barclays Marketing Obligations | 13 | ||||||
3.4 | Marketing Fund and Usage | 14 | ||||||
3.5 | Ancillary Products | 14 | ||||||
ARTICLE IV. | GAP LOYALTY PROGRAM | 14 | ||||||
4.1 | Operation of Gap Loyalty Program | 14 | ||||||
4.2 | Cardholder Enrollment | 14 | ||||||
ARTICLE V. | OPERATION OF THE PROGRAM | 15 | ||||||
5.1 | Operating Requirements | 15 | ||||||
5.2 | Systems | 15 | ||||||
5.3 | Application and Fulfillment Process | 16 | ||||||
5.4 | Cardholder Terms | 16 | ||||||
5.5 | Value Proposition | 17 | ||||||
5.6 | Approval Rates & Risk Management | 17 | ||||||
5.7 | Network | 17 | ||||||
5.8 | BIN Identifiers | 17 | ||||||
5.9 | Authorization and Settlement | 17 | ||||||
5.10 | Account Retention and Cross-Sells | 17 | ||||||
5.11 | Program Website | 18 | ||||||
5.12 | Account Servicing Requirements | 18 | ||||||
5.13 | Cardholder Payments | 18 | ||||||
5.14 | Cardholder Complaints and Disputes | 18 | ||||||
5.15 | Service Levels | 18 | ||||||
5.16 | Account Documentation | 18 | ||||||
5.17 | Audit Rights | 18 | ||||||
5.18 | Audits by Government Authorities | 19 | ||||||
5.19 | Records | 19 | ||||||
5.20 | Compliance | 19 | ||||||
5.21 | Business Continuation/Disaster Recovery Plan | 19 | ||||||
5.22 | Fraud | 20 | ||||||
5.23 | Prohibition on Illegal Gambling | 20 |
5.24 | Program Card Reissuance | 20 | ||||||
5.25 | Similarly Situated Portfolios | 20 | ||||||
5.26 | Comparable Retailer Programs | 20 | ||||||
ARTICLE VI. | PROGRAM GOVERNANCE AND MANAGEMENT | 20 | ||||||
6.1 | Joint Management Committee | 20 | ||||||
6.2 | General Managers | 20 | ||||||
6.3 | Barclays Personnel to Support the Program | 20 | ||||||
6.4 | Dispute Resolution | 21 | ||||||
6.5 | Compliance Responsibilities | 21 | ||||||
6.6 | Reports | 21 | ||||||
ARTICLE VII. | INFORMATION USE AND SECURITY | 21 | ||||||
7.1 | Definition of Confidential Information | 21 | ||||||
7.2 | Use of Confidential Information | 22 | ||||||
7.3 | Program Information and Gap Customer Data | 22 | ||||||
7.4 | Data Security | 22 | ||||||
7.5 | Non-Public Personal Information | 24 | ||||||
7.6 | Post-Termination Destruction | 24 | ||||||
ARTICLE VIII. | OWNERSHIP AND LICENSING OF INTELLECTUAL PROPERTY | 24 | ||||||
8.1 | License to Gap Marks | 24 | ||||||
8.2 | License to Barclays Marks | 25 | ||||||
8.3 | Other Intellectual Property | 25 | ||||||
8.4 | Ownership of Accounts; Account Documentation | 26 | ||||||
ARTICLE IX. | FINANCIAL TERMS | 26 | ||||||
ARTICLE X. | REPRESENTATIONS AND WARRANTIES | 26 | ||||||
10.1 | Organization | 26 | ||||||
10.2 | Authorization, Validity and Non-Contravention | 26 | ||||||
10.3 | Additional Representations, Warranties and Covenants | 26 | ||||||
ARTICLE XI. | INDEMNIFICATION & LIMITATION OF LIABILITY | 27 | ||||||
11.1 | Indemnification Obligations | 27 | ||||||
11.2 | Notice of Indemnification Claim | 28 | ||||||
11.3 | Right to Control Defense | 28 | ||||||
11.4 | Cooperation | 28 | ||||||
11.5 | 28 | |||||||
11.6 | NO WARRANTIES | 29 | ||||||
11.7 | Liquidated Damages | 30 | ||||||
ARTICLE XII. | TERM AND TERMINATION | 30 | ||||||
12.1 | Term and Expiration | 30 | ||||||
12.2 | Initial Program Period Renewal | 30 | ||||||
12.3 | Termination By Barclays | 30 | ||||||
12.4 | Termination By Gap | 30 | ||||||
12.5 | 31 | |||||||
12.6 | Effect of Termination | 31 | ||||||
12.7 | Program Assets Purchase Right | 31 | ||||||
ARTICLE XIII. | MISCELLANEOUS | 31 | ||||||
13.1 | Entire Agreement | 31 |
13.2 | No Waiver | 31 | ||||||
13.3 | Severability | 31 | ||||||
13.4 | Counterparts | 31 | ||||||
13.5 | Incorporation by Reference | 31 | ||||||
13.6 | Drafting | 31 | ||||||
13.7 | Public Announcements | 31 | ||||||
13.8 | Assignment | 32 | ||||||
13.9 | Successors and Assigns | 32 | ||||||
13.10 | Subcontractors | 32 | ||||||
13.11 | Notices | 32 | ||||||
13.12 | Governing Law | 33 | ||||||
13.13 | Force Majeure | 33 | ||||||
13.14 | Taxes | 33 | ||||||
13.15 | Survival of Obligations, Rights and Remedies | 34 | ||||||
13.16 | Independent Contractor | 34 | ||||||
13.17 | Specific Performance | 34 | ||||||
13.18 | Further Assurances | 34 | ||||||
13.19 | Third Parties | 34 | ||||||
13.20 | Credit Reporting Agency | 34 |
If to Barclays: | If to Gap: | ||||
Attn: Bill Crabtree Managing Director Retail Partnerships Barclays Bank Delaware 125 S. West Street Wilmington, DE 19801 With a Copy to: Attn: General Counsel Barclays Bank Delaware 125 S. West Street Wilmington, DE 19801 | Attn: Chris Samway SVP & General Manager Loyalty & Payments The Gap, Inc. 2 Folsom Street San Francisco, CA 94105 With a copy to: Attn: Global General Counsel Corporate Law Department The Gap, Inc. 2 Folsom Street San Francisco, CA 94105 With a copy to: Trevor Salter Morrison & Foerster LLP 2100 L ST, NW, Suite 900 Washington, DC 20037 |
The Gap, Inc. | ||
By: /s/ John F Strain | ||
Printed Name: John F Strain | ||
Title: Executive Vice President | ||
Old Navy, LLC | ||
By: /s/ John F Strain | ||
Printed Name: John F Strain | ||
Title: Executive Vice President | ||
Banana Republic, LLC | ||
By: /s/ John F Strain | ||
Printed Name: John F Strain | ||
Title: Executive Vice President | ||
Athleta LLC | ||
By: /s/ John F Strain | ||
Printed Name: John F Strain | ||
Title: Executive Vice President |
Barclays Bank Delaware | ||
By: /s/ Bill Crabtree | ||
Printed Name: Bill Crabtree | ||
Title: Managing Director, Retail Partnership |
Schedule | Name of Schedule | ||||
1.1(a) | Comparable Retailer Programs as of the Effective Date | ||||
1.1(b) | Similarly Situated Portfolios as of the Effective Date | ||||
2.1(c) | Customer Service | ||||
2.2(a) | Program Card Products and Program Value Propositions as of the Effective Date | ||||
2.2(c) | Additional Terms Relating to Program Cards and the Program Value Proposition | ||||
2.3(a) | Product Innovations | ||||
2.3(b) | Additional Terms Relating to Product Innovations | ||||
2.4 | Program Exclusivity | ||||
2.5(a) | Additional Terms Relating to the Conversion of the Back Book Assets | ||||
2.5(b) | Back Book Conversion Milestones | ||||
2.6 | Extraordinary Costs | ||||
3.2 | Additional Terms Relating to Marketing | ||||
3.3 | Additional Terms Relating to Barclays Marketing Obligations | ||||
3.4 | Additional Terms Relating to Marketing Fund and Usage | ||||
4.1 | Operation of the Gap Loyalty Program | ||||
5.4 | Cardholder Terms | ||||
5.4(c) | Additional Terms Relating to Cardholder Terms | ||||
5.6 | Approval Rates and Risk Management | ||||
5.6(b) | Approval Rates | ||||
5.15 | Service Levels | ||||
5.24 | Program Card Reissuance | ||||
6.3 | Barclays Personnel to Support the Program | ||||
6.5 | Compliance Responsibilities | ||||
6.6 | Barclays Provided Reports | ||||
7.3 | Program Information and Gap Customer Data | ||||
7.3(b)(iii) | Program Privacy Policy | ||||
7.3(b)(v) | Program Information Sharing | ||||
7.4 | Privacy and Data Security Policies | ||||
8.1 | Licensed Gap Marks | ||||
8.2 | Licensed Barclays Marks | ||||
9 | Financial Terms | ||||
9.1 | Additional Financial Terms | ||||
Exhibit A | Gain Share Statement | ||||
Exhibit B | Examples of Gain Share Payment Calculation | ||||
10.3 | Additional Representations and Warranties | ||||
11.5 | Limitation of Liability | ||||
11.7 | Liquidated Damages | ||||
12.5 | Additional Termination Rights | ||||
12.6 | Effective of Termination |
12.7 | Program Assets Purchase Right | ||||
12.7(a) | Form of Confidentiality Agreement | ||||
12.7(b)(i) | Key Portfolio Data | ||||
12.7(b)(ii) | Account-Level Data | ||||
12.7(e) | Determination of Purchase Price for Co-Branded Accounts | ||||
12.7(f) | Designated Retailers |
Date: | May 28, 2021 | |||||||
/s/ Sonia Syngal | ||||||||
Sonia Syngal | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: | May 28, 2021 | |||||||
/s/ Katrina O'Connell | ||||||||
Katrina O'Connell | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) |
Date: | May 28, 2021 | |||||||
/s/ Sonia Syngal | ||||||||
Sonia Syngal | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: | May 28, 2021 | |||||||
/s/ Katrina O'Connell | ||||||||
Katrina O'Connell | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Millions |
May 01, 2021 |
Jan. 30, 2021 |
May 02, 2020 |
---|---|---|---|
Property and equipment, accumulated depreciation | $ 5,616 | $ 5,608 | $ 5,886 |
Common stock, par value (in dollars per share) | $ 50,000.00 | $ 50,000.00 | $ 50,000.00 |
Common stock, shares authorized (in shares) | 2,300,000 | 2,300,000 | 2,300,000 |
Common stock, shares issued (in shares) | 377,000 | 374,000 | 373,000 |
Common stock, shares outstanding (in shares) | 377,000 | 374,000 | 373,000 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
May 01, 2021 |
May 02, 2020 |
|
Net Sales | $ 3,991 | $ 2,107 |
Cost of goods sold and occupancy expenses | 2,361 | 1,839 |
Gross profit | 1,630 | 268 |
Operating Expenses | 1,390 | 1,512 |
Operating income (loss) | 240 | (1,244) |
Interest Expense | 54 | 19 |
Interest income | (1) | (4) |
Income (loss) before income taxes | 187 | (1,259) |
Income taxes | 21 | (327) |
Net income (loss) | $ 166 | $ (932) |
Weighted-average number of shares - basic (in shares) | 376 | 372 |
Weighted-average number of shares - diluted (in shares) | 385 | 372 |
Earnings (loss) per share - basic (in dollars per share) | $ 0.44 | $ (2.51) |
Earnings (loss) per share - diluted (in dollars per share) | $ 0.43 | $ (2.51) |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
May 01, 2021 |
May 02, 2020 |
|
Net income (loss) | $ 166 | $ (932) |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation | (3) | (9) |
Change in fair value of derivative financial instruments, net of tax of $- and $2 | (7) | 19 |
Reclassification adjustment for gains on derivative financial instruments, net of tax of $- and $- | 3 | (4) |
Other comprehensive income (loss), net of tax | (7) | 6 |
Comprehensive income (loss) | 159 | (926) |
Change in fair value of derivative financial instruments, net of tax (tax benefit) | 0 | 2 |
Reclassification adjustment for (gains) losses on derivative financial instruments, net of (tax) tax benefit | $ 0 | $ 0 |
Accounting Policies |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Accounting Policies [Text Block] | Note 1. Accounting Policies Basis of Presentation In the opinion of The Gap, Inc. (the “Company,” “we,” and “our”) management, the accompanying unaudited Condensed Consolidated Financial Statements contain all normal and recurring adjustments (except as otherwise disclosed) considered necessary to present fairly our financial position, results of operations, comprehensive income (loss), stockholders' equity, and cash flows as of May 1, 2021 and May 2, 2020 and for all periods presented. The Condensed Consolidated Balance Sheet as of January 30, 2021 has been derived from our audited financial statements. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and disclosures normally included in the notes to the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted from these interim financial statements, although the Company believes that the disclosures made are adequate to make the information not misleading. We suggest that you read these Condensed Consolidated Financial Statements in conjunction with the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2021. The results of operations for the thirteen weeks ended May 1, 2021 are not necessarily indicative of the operating results that may be expected for the 52-week period ending January 29, 2022. COVID-19 In March 2020, the World Health Organization declared the coronavirus disease ("COVID-19") a global pandemic and recommended containment and mitigation measures worldwide. Fiscal 2020 results were significantly impacted as we temporarily closed our North America retail stores and a large number of our stores globally. During the thirteen weeks ending May 1, 2021, there continued to be residual impacts from store closures in international markets and in our supply chain as a result of COVID-19. We continue to consider the impact of COVID-19 on the assumptions and estimates used when preparing these quarterly financial statements. Restricted Cash As of May 1, 2021, restricted cash primarily included consideration that serves as collateral for our insurance obligations. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within our Condensed Consolidated Balance Sheets to the total shown on our Condensed Consolidated Statements of Cash Flows:
Accounting Pronouncements Recently Adopted In April 2020, the Financial Accounting Standards Board ("FASB") provided guidance on accounting for rent concessions resulting from the COVID-19 pandemic. We considered the FASB's guidance regarding lease modifications as a result of the effects of COVID-19 and elected to apply the temporary practical expedient to account for lease changes as variable rent unless an amendment results in a substantial change in the Company's lease obligations. The impact of applying the temporary practical expedient was not material to our Condensed Consolidated Financial Statements for the thirteen weeks ending May 1, 2021. ASU No. 2019-12, Simplifying the Accounting for Income Taxes In December 2019, the FASB issued accounting standards update ("ASU") No. 2019-12, Simplifying the Accounting for Income Taxes. The ASU is intended to enhance and simplify aspects of the income tax accounting guidance in Accounting Standards Codification Topic 740 as part of the FASB's simplification initiative. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2020 with early adoption permitted. The Company adopted this ASU on January 31, 2021 on a prospective basis and the adoption of this standard did not have a material impact on our Condensed Consolidated Financial Statements. Accounting Pronouncements Not Yet Adopted The Company has considered all recent accounting pronouncements and concluded that there are no recent accounting pronouncements that may have a material impact on our Condensed Consolidated Financial Statements, based on current information.
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May 01, 2021
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities, Other than Long-term Debt, Noncurrent | $ 45 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Text Block] | Revenue Disaggregation of Net Sales We disaggregate our net sales between stores and online and also by brand and region. Net sales by region are allocated based on the location of the store where the customer paid for and received the merchandise or the distribution center or store from which the products were shipped. The COVID-19 pandemic and resulting temporary closure of our stores negatively affected our net sales for the first quarter of fiscal 2020. Net sales disaggregated for stores and online sales are as follows:
__________ (1)Store sales primarily include sales made at our Company-operated stores and franchise sales. (2)Online sales primarily include sales originating from our online channel including those that are picked up or shipped from stores. Additionally, sales from the business-to-business program are also included during the thirteen weeks ended May 1, 2021. Net sales disaggregated by brand and region are as follows:
__________ (1)U.S. includes the United States, Puerto Rico, and Guam. (2)Previously, net sales for the Athleta brand were grouped within the "Other" column. Beginning in fiscal 2021, we have made a change for all periods presented to break out Athleta net sales into its own column. (3)Primarily consists of net sales for the Intermix brand. Also includes net sales for the Janie and Jack brand through April 7, 2021. (4)Primarily consists of net sales for the Intermix, Janie and Jack, and Hill City brands. Deferred Revenue We defer revenue when cash payments are received in advance of performance for unsatisfied obligations related to our gift cards, credit vouchers, licensing agreements, outstanding loyalty points, and reimbursements of loyalty program discounts associated with our credit card agreement. For the thirteen weeks ended May 1, 2021, the opening balance of deferred revenue for these obligations was $231 million, of which $89 million was recognized as revenue during the period. The closing balance of deferred revenue for these obligations was $222 million as of May 1, 2021. We expect that the majority of our revenue deferrals as of the quarter ended May 1, 2021, will be recognized as revenue in the next twelve months as our performance obligations are satisfied. For the thirteen weeks ended May 2, 2020, the opening balance of deferred revenue for these obligations was $226 million, of which $79 million was recognized as revenue during the period. The closing balance of deferred revenue for these obligations was $198 million as of May 2, 2020. During the thirteen weeks ended May 1, 2021, the Company entered into new long-term credit card program agreements with Barclays and Mastercard. Barclays will become the exclusive issuer of Gap Inc.’s co-branded and private label credit card program in the U.S. beginning in May 2022. Accordingly, our previous private label credit card program with Synchrony Financial will be discontinued in April 2022. During the thirteen weeks ended May 1, 2021, the Company received a $45 million payment relating to the new agreement, which was recorded in other long-term liabilities on our Condensed Consolidated Balance Sheet as of May 1, 2021.
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Debt and Credit Facilities |
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Debt and Credit Facilities | Debt and Credit Facilities Long-term debt recorded on the Condensed Consolidated Balance Sheets consists of the following:
The scheduled maturity of the Notes is as follows:
__________ (1)Includes an option to call the Notes in whole or in part at any time, subject to a make-whole premium. As of May 1, 2021, the aggregate estimated fair value of the notes due 2023 ("2023 Notes), 2025 (“2025 Notes”), and 2027 (“2027 Notes”) (collectively, the “Notes”) was $2.57 billion and was based on the quoted market price for each of the Notes (level 1 inputs) as of the last business day of the fiscal quarter. The aggregate principal amount of the Notes is recorded in long-term debt on the Condensed Consolidated Balance Sheet, net of the unamortized debt issuance cost. In May 2020, we entered into the senior secured asset-based revolving credit agreement (the "ABL Facility"), which has a $1.8675 billion borrowing capacity and bears interest at a base rate (typically LIBOR) plus a margin depending on borrowing base availability. The ABL Facility is scheduled to expire in May 2023. We also have the ability to issue letters of credit on our ABL Facility. As of May 1, 2021, we had $52 million in standby letters of credit issued under the ABL Facility. There were no borrowings under the ABL Facility as of May 1, 2021. As of May 1, 2021, we were in compliance with the applicable financial covenants and expect to maintain compliance for the next twelve months. We also had a $500 million, five-year, revolving credit facility, which was scheduled to expire in May 2023. On March 25, 2020, we drew down the entire amount under the revolving credit facility resulting in a total of $500 million outstanding as of May 2, 2020, which was repaid in full on May 7, 2020. The borrowings accrued interest at a base rate (typically LIBOR) plus a margin based on our long-term senior unsecured credit ratings and our leverage ratio. The draw-down proceeds were recorded in revolving credit facility on the Condensed Consolidated Balance Sheet. There were no material outstanding letters of credit under the revolving credit facility as of May 2, 2020. We also maintain multiple agreements with third parties that make unsecured revolving credit facilities available for our operations in foreign locations (the “Foreign Facilities”). The Foreign Facilities are uncommitted and had a total capacity of $49 million as of May 1, 2021. As of May 1, 2021, there were no borrowings under the Foreign Facilities. There were $11 million in bank guarantees issued and outstanding primarily related to store leases under the Foreign Facilities as of May 1, 2021. We have bilateral unsecured standby letter of credit agreements that are uncommitted and do not have expiration dates. There were no material standby letters of credit issued under these agreements as of May 1, 2021.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The Company measures certain financial assets and liabilities at fair value on a recurring basis, including derivatives and available-for-sale debt securities. The Company categorizes financial assets and liabilities recorded at fair value based upon a three-level hierarchy that considers the related valuation techniques. There were no material purchases, sales, issuances, or settlements related to recurring level 3 measurements during the thirteen weeks ended May 1, 2021 or May 2, 2020. There were no transfers of financial assets or liabilities into or out of level 1, level 2, and level 3 during the thirteen weeks ended May 1, 2021 or May 2, 2020. Financial Assets and Liabilities Financial assets and liabilities measured at fair value on a recurring basis and cash equivalents are as follows:
We have highly liquid fixed and variable income investments classified as cash equivalents. With the exception of our available-for-sale investments noted below, we value these investments at their original purchase prices plus interest that has accrued at the stated rate. Our investments in cash equivalents are placed primarily in time deposits, money market funds, and debt securities. Our available-for-sale securities are comprised of investments in debt securities and are recorded in both short-term investments and cash and cash equivalents on the Condensed Consolidated Balance Sheets. These securities are recorded at fair value using market prices. As of May 1, 2021, January 30, 2021, and May 2, 2020, the Company held $475 million, $410 million, and $51 million, respectively, of available-for-sale debt securities with maturity dates greater than three months and less than two years within short-term investments on the Condensed Consolidated Balance Sheets. In addition, as of May 1, 2021, January 30, 2021, and May 2, 2020, the Company held $25 million, $90 million and $1 million, respectively, of available-for-sale debt securities with maturities of three months or less at the time of purchase within cash and cash equivalents on the Condensed Consolidated Balance Sheet. Unrealized gains and losses on available-for-sale debt securities included within accumulated other comprehensive income were not material as of May 1, 2021 and May 2, 2020. The Company regularly reviews its available-for-sale debt securities for other-than-temporary impairment. For the thirteen weeks ended May 1, 2021 or May 2, 2020, the Company did not consider any of its securities to be other-than-temporarily impaired and, accordingly, did not recognize any impairment loss. Derivative financial instruments primarily include foreign exchange forward contracts. The fair value of the Company’s derivative financial instruments is determined using pricing models based on current market rates. See Note 6 of Notes to Condensed Consolidated Financial Statements for information regarding currencies hedged against the U.S. dollar. We maintain the Gap, Inc. Deferred Compensation Plan (“DCP”), which allows eligible employees to defer base compensation and bonus up to a maximum percentage, and non-employee directors to defer receipt of a portion of their Board fees. Plan investments are directed by participants and are recorded at market value and designated for the DCP. The fair value of the Company’s DCP assets is determined based on quoted market prices, and the assets are recorded in other long-term assets on the Condensed Consolidated Balance Sheets. Nonfinancial Assets We review the carrying amount of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The fair value of the long-lived assets is determined using level 3 inputs and based on discounted future cash flows of the asset or asset group using a discount rate commensurate with the risk. The asset group is defined as the lowest level for which identifiable cash flows are available and largely independent of the cash flows of other groups of assets, which for our retail stores is at the store level. During the thirteen weeks ended May 1, 2021, the Company recorded impairment of operating lease assets of $5 million. The impairment of the operating lease assets reduced the carrying amount of the applicable long-lived assets of $15 million to their fair value of $10 million. The impairment charges were recorded in operating expenses on the Condensed Consolidated Statement of Operations. There were no material impairment charges recorded for store long-lived assets during the thirteen weeks ended May 1, 2021. During fiscal 2020, the impact of COVID-19 resulted in a qualitative indication of impairment related to our store long-lived assets. For store locations, we analyzed our store asset recoverability. During the thirteen weeks ended May 2, 2020, the Company recorded impairment of store assets of $124 million and impairment of operating lease assets of $360 million. The impairment of the store assets reduced the carrying amount of the applicable long-lived assets of $127 million to their fair value of $3 million. The impairment of the operating lease assets reduced the carrying amount of the applicable long-lived assets of $1,358 million to their fair value of $998 million. The impairment charges were recorded in operating expenses on the Condensed Consolidated Statement of Operations. We review the carrying amount of goodwill and other indefinite-lived intangible assets for impairment annually and whenever events or changes in circumstances indicate that it is more likely than not that the carrying amount may not be recoverable. There were no impairment charges recorded for goodwill or other indefinite-lived intangible assets for the thirteen weeks ended May 1, 2021 or May 2, 2020.
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Fair Value Disclosures | Our available-for-sale securities are comprised of investments in debt securities and are recorded in both short-term investments and cash and cash equivalents on the Condensed Consolidated Balance Sheets. These securities are recorded at fair value using market prices. As of May 1, 2021, January 30, 2021, and May 2, 2020, the Company held $475 million, $410 million, and $51 million, respectively, of available-for-sale debt securities with maturity dates greater than three months and less than two years within short-term investments on the Condensed Consolidated Balance Sheets. In addition, as of May 1, 2021, January 30, 2021, and May 2, 2020, the Company held $25 million, $90 million and $1 million, respectively, of available-for-sale debt securities with maturities of three months or less at the time of purchase within cash and cash equivalents on the Condensed Consolidated Balance Sheet. Unrealized gains and losses on available-for-sale debt securities included within accumulated other comprehensive income were not material as of May 1, 2021 and May 2, 2020. The Company regularly reviews its available-for-sale debt securities for other-than-temporary impairment. For the thirteen weeks ended May 1, 2021 or May 2, 2020, the Company did not consider any of its securities to be other-than-temporarily impaired and, accordingly, did not recognize any impairment loss. Derivative financial instruments primarily include foreign exchange forward contracts. The fair value of the Company’s derivative financial instruments is determined using pricing models based on current market rates. See Note 6 of Notes to Condensed Consolidated Financial Statements for information regarding currencies hedged against the U.S. dollar. We maintain the Gap, Inc. Deferred Compensation Plan (“DCP”), which allows eligible employees to defer base compensation and bonus up to a maximum percentage, and non-employee directors to defer receipt of a portion of their Board fees. Plan investments are directed by participants and are recorded at market value and designated for the DCP. The fair value of the Company’s DCP assets is determined based on quoted market prices, and the assets are recorded in other long-term assets on the Condensed Consolidated Balance Sheets. Nonfinancial Assets We review the carrying amount of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The fair value of the long-lived assets is determined using level 3 inputs and based on discounted future cash flows of the asset or asset group using a discount rate commensurate with the risk. The asset group is defined as the lowest level for which identifiable cash flows are available and largely independent of the cash flows of other groups of assets, which for our retail stores is at the store level. During the thirteen weeks ended May 1, 2021, the Company recorded impairment of operating lease assets of $5 million. The impairment of the operating lease assets reduced the carrying amount of the applicable long-lived assets of $15 million to their fair value of $10 million. The impairment charges were recorded in operating expenses on the Condensed Consolidated Statement of Operations. There were no material impairment charges recorded for store long-lived assets during the thirteen weeks ended May 1, 2021. During fiscal 2020, the impact of COVID-19 resulted in a qualitative indication of impairment related to our store long-lived assets. For store locations, we analyzed our store asset recoverability. During the thirteen weeks ended May 2, 2020, the Company recorded impairment of store assets of $124 million and impairment of operating lease assets of $360 million. The impairment of the store assets reduced the carrying amount of the applicable long-lived assets of $127 million to their fair value of $3 million. The impairment of the operating lease assets reduced the carrying amount of the applicable long-lived assets of $1,358 million to their fair value of $998 million. The impairment charges were recorded in operating expenses on the Condensed Consolidated Statement of Operations. We review the carrying amount of goodwill and other indefinite-lived intangible assets for impairment annually and whenever events or changes in circumstances indicate that it is more likely than not that the carrying amount may not be recoverable. There were no impairment charges recorded for goodwill or other indefinite-lived intangible assets for the thirteen weeks ended May 1, 2021 or May 2, 2020.
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Income Taxes |
3 Months Ended |
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May 01, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe effective income tax rate was 11.2 percent for the thirteen weeks ended May 1, 2021, compared with 26.0 percent for the thirteen weeks ended May 2, 2020. The decrease in the effective tax rate is primarily due to a tax benefit resulting from divestiture activity during the first quarter of fiscal 2021. |
Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments We operate in foreign countries, which exposes us to market risk associated with foreign currency exchange rate fluctuations. We use derivative financial instruments to manage our exposure to foreign currency exchange rate risk and do not enter into derivative financial contracts for trading purposes. Consistent with our risk management guidelines, we hedge a portion of our transactions related to merchandise purchases for foreign operations and certain intercompany transactions using foreign exchange forward contracts. These contracts are entered into with large, reputable, financial institutions that are monitored for counterparty risk. The currencies hedged against changes in the U.S. dollar are Canadian dollar, British pound, Japanese yen, Euro, Mexican peso, Taiwan dollar, and Chinese yuan. Cash flows from derivative financial instruments are classified as cash flows from operating activities on the Condensed Consolidated Statements of Cash Flows. Cash Flow Hedges We designate the following foreign exchange forward contracts as cash flow hedges: (1) forward contracts used to hedge forecasted merchandise purchases and related costs denominated in U.S. dollars made by our international subsidiaries whose functional currencies are their local currencies; and (2) forward contracts used to hedge forecasted intercompany revenue transactions related to merchandise sold from our regional purchasing entity, whose functional currency is the U.S. dollar, to certain international subsidiaries in their local currencies. The foreign exchange forward contracts entered into to hedge forecasted merchandise purchases and related costs, and intercompany revenue transactions generally have terms of up to 24 months. The effective portion of the gain or loss on the derivative financial instruments is reported as a component of other comprehensive income and is recognized into net income (loss) during the period in which the underlying transaction impacts the Condensed Consolidated Statements of Operations. Other Derivatives Not Designated as Hedging Instruments We use foreign exchange forward contracts to hedge our market risk exposure associated with foreign currency exchange rate fluctuations for certain intercompany balances denominated in currencies other than the functional currency of the entity with the intercompany balance. The gain or loss on the derivative financial instruments that represent economic hedges, as well as the remeasurement impact of the underlying intercompany balances, is recorded in operating expenses on the Condensed Consolidated Statements of Operations in the same period and generally offset each other. Outstanding Notional Amounts We had foreign exchange forward contracts outstanding in the following notional amounts:
Quantitative Disclosures about Derivative Financial Instruments The fair values of foreign exchange forward contracts are as follows:
All of the unrealized gains and losses from designated cash flow hedges as of May 1, 2021 will be recognized into net income within the next twelve months at the then-current values, which may differ from the fair values as of May 1, 2021 shown above. Our foreign exchange forward contracts are subject to master netting arrangements with each of our counterparties and such arrangements are enforceable in the event of default or early termination of the contract. We do not elect to offset the fair values of our derivative financial instruments on the Condensed Consolidated Balance Sheets, and as such, the fair values shown above represent gross amounts. The amounts subject to enforceable master netting arrangements were not material for all periods presented. See Note 4 of Notes to Condensed Consolidated Financial Statements for disclosures on the fair value measurements of our derivative financial instruments. The pre-tax amounts recognized in net income (loss) related to derivative instruments are as follows:
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Share Repurchases |
3 Months Ended |
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May 01, 2021 | |
Disclosure Share Repurchase Activity [Abstract] | |
Share Repurchases | Share RepurchasesIn February 2019, the Board of Directors approved a $1.0 billion share repurchase authorization (the "February 2019 repurchase program"). The February 2019 repurchase program had $800 million remaining as of May 1, 2021. There were no shares repurchased during the thirteen weeks ended May 1, 2021 or May 2, 2020. |
Earnings (Loss) Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings (Loss) Per Share Weighted-average number of shares used for earnings (loss) per share is as follows:
__________ (1)For the thirteen weeks ended May 2, 2020, the dilutive impact of outstanding options and awards was excluded from dilutive shares as a result of the Company’s net loss for the respective period. The anti-dilutive shares related to stock options and other stock awards excluded from the computation of weighted-average number of shares – diluted were 7 million and 15 million for the thirteen weeks ended May 1, 2021 and May 2, 2020, respectively, as their inclusion would have an anti-dilutive effect on earnings (loss) per share.
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Commitments and Contingencies |
3 Months Ended |
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May 01, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesWe are a party to a variety of contractual agreements under which we may be obligated to indemnify the other party for certain matters. These contracts primarily relate to our commercial contracts, operating leases, trademarks, intellectual property, financial agreements, and various other agreements. Under these contracts, we may provide certain routine indemnifications relating to representations and warranties (e.g., ownership of assets, environmental or tax indemnifications), or personal injury matters. The terms of these indemnifications range in duration and may not be explicitly defined. Generally, the maximum obligation under such indemnifications is not explicitly stated, and as a result, the overall amount of these obligations cannot be reasonably estimated. Historically, we have not made significant payments for these indemnifications. We believe that if we were to incur a loss in any of these matters, the loss would not have a material effect on our Condensed Consolidated Financial Statements taken as a whole. As a multinational company, we are subject to various proceedings, lawsuits, disputes, and claims ("Actions") arising in the ordinary course of our business. Many of these Actions raise complex factual and legal issues and are subject to uncertainties. As of May 1, 2021, Actions filed against us included commercial, intellectual property, customer, employment, and data privacy claims, including class action lawsuits. The plaintiffs in some Actions seek unspecified damages or injunctive relief, or both. Actions are in various procedural stages and some are covered in part by insurance. As of May 1, 2021, January 30, 2021, and May 2, 2020, we recorded a liability for an estimated loss if the outcome of an Action is expected to result in a loss that is considered probable and reasonably estimable. The liability recorded was not material for any individual Action or in total for all periods presented. Subsequent to May 1, 2021, and through the filing date of this Quarterly Report on Form 10-Q, no information has become available that indicates a change is required that would be material to our Condensed Consolidated Financial Statements taken as a whole. We cannot predict with assurance the outcome of Actions brought against us. However, we do not believe that the outcome of any current Action would have a material effect on our Condensed Consolidated Financial Statements taken as a whole.
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Segment Information |
3 Months Ended |
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May 01, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We identify our operating segments according to how our business activities are managed and evaluated. As of May 1, 2021, our operating segments included: Old Navy Global, Gap Global, Banana Republic Global, and Athleta. Each operating segment has a brand president who is responsible for various geographies and channels. Each of our brands serves customer demand through well-located stores and digital advantaged online channels, leveraging our omni-channel capabilities that allow customers to shop seamlessly across all of our brands. We have determined that each of our operating segments share similar economic and other qualitative characteristics, and therefore the results of our operating segments are aggregated into one reportable segment as of May 1, 2021. We continually monitor and review our segment reporting structure in accordance with authoritative guidance to determine whether any changes have occurred that would impact our reportable segments. See Note 2 of Notes to Condensed Consolidated Financial Statements for disaggregation of revenue for stores and online and by brand and region.
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Divestitures |
3 Months Ended |
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May 01, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure | Note 11. Divestitures As part of a strategic review of the Company's brands and businesses, the Company entered into agreements to sell its Janie and Jack and Intermix brands. The sale of Janie and Jack was completed on April 8, 2021. The sale of Intermix was completed on May 21, 2021. The Company reclassified $109 million of assets and $112 million of liabilities for the Intermix brand as held for sale within other current assets and accrued expenses and other current liabilities, respectively, on the Condensed Consolidated Balance Sheet as of May 1, 2021 and measured the disposal group at its estimated fair value less costs to sell. The aggregate carrying amount of assets and liabilities for amounts classified as held for sale primarily consist of $61 million of net operating lease assets, $19 million of inventory, and $97 million of operating lease liabilities. As a result of these transactions, the Company recognized a pre-tax loss of $56 million within operating expenses on the Condensed Consolidated Statements of Operations during the thirteen weeks ended May 1, 2021.
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Accounting Policies (Tables) |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | As of May 1, 2021, restricted cash primarily included consideration that serves as collateral for our insurance obligations. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within our Condensed Consolidated Balance Sheets to the total shown on our Condensed Consolidated Statements of Cash Flows:
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Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Table Text Block] | Net sales disaggregated for stores and online sales are as follows:
__________ (1)Store sales primarily include sales made at our Company-operated stores and franchise sales. (2)Online sales primarily include sales originating from our online channel including those that are picked up or shipped from stores. Additionally, sales from the business-to-business program are also included during the thirteen weeks ended May 1, 2021.
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Net Sales by Brand and Region | Net sales disaggregated by brand and region are as follows:
__________ (1)U.S. includes the United States, Puerto Rico, and Guam. (2)Previously, net sales for the Athleta brand were grouped within the "Other" column. Beginning in fiscal 2021, we have made a change for all periods presented to break out Athleta net sales into its own column. (3)Primarily consists of net sales for the Intermix brand. Also includes net sales for the Janie and Jack brand through April 7, 2021. (4)Primarily consists of net sales for the Intermix, Janie and Jack, and Hill City brands.
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Debt and Credit Facilities Long Term Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long Term Debt | Long-term debt recorded on the Condensed Consolidated Balance Sheets consists of the following:
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Schedule of Maturities of Long-term Debt [Table Text Block] | The scheduled maturity of the Notes is as follows:
__________ (1)Includes an option to call the Notes in whole or in part at any time, subject to a make-whole premium.
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets And Liabilities Measured At Fair Value On Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis and cash equivalents are as follows:
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Derivative Financial Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign Exchange Forward Contracts Outstanding | We had foreign exchange forward contracts outstanding in the following notional amounts:
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Fair Values of Asset and Liability Derivative Financial Instruments | The fair values of foreign exchange forward contracts are as follows:
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Effects of Derivative Financial Instruments on OCI and Condensed Consolidated Statements of Income | The pre-tax amounts recognized in net income (loss) related to derivative instruments are as follows:
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Earnings (Loss) Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-Average Number of Shares | Weighted-average number of shares used for earnings (loss) per share is as follows:
__________ (1)For the thirteen weeks ended May 2, 2020, the dilutive impact of outstanding options and awards was excluded from dilutive shares as a result of the Company’s net loss for the respective period.
|
Accounting Policies Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Millions |
May 01, 2021 |
Jan. 30, 2021 |
May 02, 2020 |
Feb. 01, 2020 |
---|---|---|---|---|
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 2,066 | $ 1,988 | $ 1,028 | |
Restricted Cash, Current | 0 | 4 | 0 | |
Restricted Cash, Noncurrent | 30 | 24 | 20 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents end of period | 2,096 | 2,016 | 1,048 | $ 1,381 |
Reconciliation of Cash Flow Cash, Cash Equiv. and Restricted Cash to Balance Sheet | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | 2,066 | 1,988 | 1,028 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents end of period | $ 2,096 | $ 2,016 | $ 1,048 |
Accounting Policies Covid-19 (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
May 01, 2021 |
May 02, 2020 |
|
Accounting Policies [Abstract] | ||
Debt Instrument, Face Amount | $ 2,250 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 | |
Impact of lease practical expedient COVID19 | $ 0 |
Revenue Disaggregation (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
May 01, 2021 |
May 02, 2020 |
|||
Disaggregation of Revenue | ||||
Revenues | $ 3,991 | $ 2,107 | ||
Store Sales | ||||
Disaggregation of Revenue | ||||
Revenues | [1] | 2,384 | 1,108 | |
Online Sales | ||||
Disaggregation of Revenue | ||||
Revenues | $ 1,607 | $ 999 | ||
|
Revenue - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
May 01, 2021 |
May 02, 2020 |
Jan. 30, 2021 |
Feb. 01, 2020 |
|
Revenue from Contract with Customer [Abstract] | ||||
Contract with Customer, Liability | $ 222 | $ 198 | $ 231 | $ 226 |
Contract with Customer, Liability, Revenue Recognized | 89 | $ 79 | ||
Liabilities, Other than Long-term Debt, Noncurrent | $ 45 |
Debt and Credit Facilities Long Term Debt (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
May 01, 2021 |
Jan. 30, 2021 |
May 02, 2020 |
|
Debt Instrument [Line Items] | |||
Document Period End Date | May 01, 2021 | ||
Notes | $ 2,218 | $ 2,216 | $ 1,250 |
Total long-term debt | 2,218 | 2,216 | 1,250 |
Unamortized Debt Issuance Expense | (32) | (34) | 0 |
2021 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Notes | 0 | 0 | 1,250 |
2023 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Notes | 500 | 500 | 0 |
2025 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Notes | 750 | 750 | 0 |
2027 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Notes | $ 1,000 | $ 1,000 | $ 0 |
Debt and Credit Facilities Scheduled Maturity of Notes (Details) $ in Millions |
3 Months Ended |
---|---|
May 01, 2021
USD ($)
| |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 2,250 |
2027 Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 1,000 |
Debt Instrument, Interest Rate, Stated Percentage | 8.875% |
Debt Instrument, Payment Terms | Semi-Annual |
2025 Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 750 |
Debt Instrument, Interest Rate, Stated Percentage | 8.625% |
Debt Instrument, Payment Terms | Semi-Annual |
2023 Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 500 |
Debt Instrument, Interest Rate, Stated Percentage | 8.375% |
Debt Instrument, Payment Terms | Semi-Annual |
Fair Value Measurements - Additional Information (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
May 01, 2021 |
May 02, 2020 |
Jan. 30, 2021 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other Asset Impairment Charges | $ 0 | $ 124,000,000 | |
Other indefinite-lived intangible assets impairment charges | 0 | 0 | |
Transfers into or out of level 2 | 0 | 0 | |
Fair Value Asset Level 3 Transfer Amount | 0 | 0 | |
Transfers into or out of level 1 | 0 | 0 | |
Purchases, sales, issuances, or settlements related to recurring level 3 measurements | 0 | 0 | |
Available-for-sale Securities, Current | 475,000,000 | 51,000,000 | $ 410,000,000 |
Cash and Cash Equivalents, Fair Value Disclosure | 25,000,000 | 1,000,000 | $ 90,000,000 |
Debt Securities, Available-for-sale, Unrealized Gain (Loss) | 0 | 0 | |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale | $ 0 | $ 0 |
Fair Value Measurements Long Lived Assets Impairments (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
May 01, 2021 |
May 02, 2020 |
|
Long Lived Assets [Line Items] | ||
Goodwill, Impairment Loss | $ 0 | $ 0 |
Other indefinite-lived intangible assets impairment charges | 0 | 0 |
Store Assets [Member] | ||
Long Lived Assets [Line Items] | ||
Total Impairment Charges | 124 | |
Long Lived Asset Carrying Value | 127 | |
Impaired Asset at Fair Value | 3 | |
Operating lease Impairment [Member] | ||
Long Lived Assets [Line Items] | ||
Total Impairment Charges | 5 | 360 |
Long Lived Asset Carrying Value | 15 | 1,358 |
Impaired Asset at Fair Value | $ 10 | $ 998 |
Income Taxes - Additional Information (Details) |
3 Months Ended | |
---|---|---|
May 01, 2021 |
May 02, 2020 |
|
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate, Percent | 11.20% | (26.00%) |
Derivative Financial Instruments - Foreign Exchange Contracts Outstanding to Sell Various Currencies (Details) - USD ($) $ in Millions |
May 01, 2021 |
Jan. 30, 2021 |
May 02, 2020 |
---|---|---|---|
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 1,026 | $ 1,319 | $ 1,104 |
Derivatives in cash flow hedging relationships | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 343 | 508 | 319 |
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 683 | $ 811 | $ 785 |
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Millions |
May 01, 2021 |
Jan. 30, 2021 |
May 02, 2020 |
---|---|---|---|
Derivative [Line Items] | |||
Amounts Subject to Enforceable Master Netting Arrangements | $ 0 | $ 0 | $ 0 |
Share Repurchase Activity (Details) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
May 01, 2021 |
May 02, 2020 |
|
Disclosure Share Repurchase Activity [Abstract] | ||
Number of shares repurchased | 0 | 0 |
Share Repurchases - Additional Information (Details) - USD ($) |
May 01, 2021 |
Feb. 26, 2019 |
---|---|---|
Disclosure Share Repurchases Additional Information [Abstract] | ||
Stock Repurchase Program, Authorized Amount | $ 1,000,000,000.0 | |
Share repurchases, remaining amount | $ 800,000,000 |
Earnings (Loss) Per Share - Weighted Average Number of Shares (Details) - shares shares in Millions |
3 Months Ended | |||
---|---|---|---|---|
May 01, 2021 |
May 02, 2020 |
|||
Earnings Per Share [Abstract] | ||||
Weighted-average number of shares - basic (in shares) | 376 | 372 | ||
Common stock equivalents (in shares) | [1] | 9 | 0 | |
Weighted-average number of shares - diluted (in shares) | 385 | 372 | ||
|
Earnings (Loss) Per Share - Additional Information (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
May 01, 2021 |
May 02, 2020 |
|
Earnings Per Share [Abstract] | ||
Shares excluded from the computations of weighted-average number of shares - diluted | 7 | 15 |
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions |
May 01, 2021 |
Jan. 30, 2021 |
May 02, 2020 |
---|---|---|---|
Commitments and Contingencies [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | $ 0 | $ 0 | $ 0 |
Segment Information - Additional Information (Details) |
3 Months Ended |
---|---|
May 01, 2021
Segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments (in segments) | 1 |
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