Shareholders' Equity Shareholders' Equity (Tables)

12 Months Ended

Feb. 03, 2018

Equity [Abstract]

Stock-based compensation expense

Stock-based compensation expense was as follows in fiscal 2018, 2017 and 2016 ($ in millions):

	2018		2017		2016
Stock options	$	6	$	9	$	15
Share awards:
Market-based	19		15		16
Performance-based	13		6		—
Time-based	91		78		73
Total	$	129	$	108	$	104

Stock option activity

Stock option activity was as follows in fiscal 2018:

	Stock Options		Weighted-Average Exercise Price per Share		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 28, 2017	6,987,000		$	36.61
Granted	176,000		$	44.85
Exercised	(3,931,000	)	$	40.05
Forfeited/canceled	(163,000	)	$	43.50
Outstanding at February 3, 2018	3,069,000		$	32.32	5.1	$	119
Vested or expected to vest at February 3, 2018	3,069,000		$	32.32	5.1	$	119
Exercisable at February 3, 2018	2,434,000		$	30.40	3.5	$	99

Black Scholes valuation model assumptions

In fiscal 2018, 2017 and 2016, we estimated the fair value of each stock option on the date of grant using a lattice or Black Scholes valuation model (for certain individuals) with the following assumptions:

Valuation Assumptions	2018		2017		2016
Risk-free interest rate(1)	0.9% – 2.6%		0.5% – 2.0%		0.1% – 2.1%
Expected dividend yield	3.0	%	3.5	%	2.3	%
Expected stock price volatility(2)	38	%	37	%	37	%
Expected life of stock options (in years)(3)	6.0		6.0		6.0

(1) Based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of our stock options.

(2) In projecting expected stock price volatility, we consider both the historical volatility of our stock price as well as implied volatilities from exchange-traded options on our stock.

(3) We estimate the expected life of stock options based upon historical experience.

Summary of the status of nonvested market-based share awards

A summary of the status of our nonvested market-based share awards at February 3, 2018, and changes during fiscal 2018, were as follows:

Market-Based Share Awards	Shares		Weighted-Average Fair Value per Share
Outstanding at January 28, 2017	1,552,000		$	32.99
Granted	564,000		$	42.40
Vested	(640,000	)	$	29.46
Forfeited/canceled	(54,000	)	$	35.81
Outstanding at February 3, 2018	1,422,000		$	36.35

Summary of the status of nonvested time-based share awards

A summary of the status of our nonvested time-based share awards at February 3, 2018, and changes during fiscal 2018, were as follows:

Time-Based Share Awards	Shares		Weighted-Average Fair Value per Share
Outstanding at January 28, 2017	5,365,000		$	31.57
Granted	2,326,000		$	43.52
Vested	(2,242,000	)	$	32.79
Forfeited/canceled	(399,000	)	$	36.07
Outstanding at February 3, 2018	5,050,000		$	36.17

Summary of the status of nonvested performance-based share awards

A summary of the status of our nonvested performance-based share awards at February 3, 2018, and changes during fiscal 2018, were as follows:

Performance-Based Share Awards	Shares		Weighted-Average Fair Value per Share
Outstanding at January 28, 2017	438,000		$	28.98
Granted	416,000		$	42.31
Vested	(146,000	)	$	28.98
Forfeited/canceled	(23,000	)	$	29.66
Outstanding at February 3, 2018	685,000		$	37.04

Summary of stock options outstanding

At February 3, 2018, options to purchase 3.1 million shares of common stock were outstanding as follows (shares in millions):

	Exercisable					Unexercisable					Total
	Shares	%		Weighted- Average Price per Share		Shares	%		Weighted- Average Price per Share		Shares	%		Weighted- Average Price per Share
In-the-money	2.4	100	%	$	30.40	0.7	100	%	$	39.71	3.1	100	%	$	32.32

Reconciliation of the numerators and denominators of basic and diluted earnings per share

The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share from continuing operations in fiscal 2018, 2017 and 2016 ($ and shares in millions, except per share amounts):

	2018		2017		2016
Numerator
Net earnings from continuing operations	$	999	$	1,207	$	807
Denominator
Weighted-average common shares outstanding	300.4		318.5		346.5
Effect of potentially dilutive securities:
Stock options and other	6.7		4.1		4.2
Weighted-average common shares outstanding, assuming dilution	307.1		322.6		350.7
Net earnings per share from continuing operations
Basic	$	3.33	$	3.79	$	2.33
Diluted	$	3.26	$	3.74	$	2.30

Repurchases of common stock

The following table presents information regarding the shares we repurchased and retired in fiscal 2018, 2017 and 2016 ($ and shares in millions, except per share amounts):

	2018		2017		2016
Total cost of shares repurchased
Open market(1)	$	2,009	$	706	$	880
January 2016 ASR	—		45		120
Total	$	2,009	$	751	$	1,000
Average price per share
Open market	$	57.16	$	36.11	$	31.03
January 2016 ASR	$	—	$	28.55	$	27.28
Average	$	57.16	$	35.54	$	30.53
Number of shares repurchased and retired
Open market(1)	35.1		19.5		28.4
January 2016 ASR	—		1.6		4.4
Total	35.1		21.1		32.8

(1) As of February 3, 2018, and January 28, 2017, $13 million and $8 million, or 0.2 million and 0.1 million shares, in trades remained unsettled. The liability for unsettled trades is included in Accrued liabilities on our Consolidated Balance Sheets.

Components of accumulated other comprehensive income, net of tax

The following table provides a reconciliation of the components of accumulated other comprehensive income, net of tax, for fiscal 2018, 2017 and 2016, respectively ($ in millions):

	Foreign Currency Translation
Balance at January 31, 2015	$	382
Foreign currency translation adjustments	(44		)
Reclassification of foreign currency translation adjustments into earnings due to sale of business	(67		)
Balance at January 30, 2016	271
Foreign currency translation adjustments	10
Reclassification of foreign currency translation adjustments into earnings due to sale of business	(2		)
Balance at January 28, 2017	279
Foreign currency translation adjustments	35
Balance at February 3, 2018	$	314