Restructuring	12 Months Ended
Jan. 29, 2022
Restructuring [Abstract]
Restructuring	3. Restructuring Restructuring charges were as follows ($ in millions): 2022 2021 2020Mexico Exit and Strategic Realignment(1) $ (41) $ 277 $ - Fiscal 2020 U.S. Retail Operating Model Changes 1 - 41 Total $ (40) $ 277 $ 41 (1)Includes ($6) million and $23 million related to inventory markdowns recorded in Cost of sales on our Consolidated Statements of Earnings in fiscal 2022 and fiscal 2021, respectively. Mexico Exit and Strategic Realignment The COVID-19 pandemic has had significant impacts on, for example, the economic conditions of the markets in which we operate, customer shopping behaviors, the role of technology in peoples’ lives and the way we meet their needs. In light of these changes, we are adapting our strategy to ensure that our focus and resources are closely aligned with the opportunities we see in front of us. As a result, in the third quarter of fiscal 2021, we made the decision to exit our operations in Mexico and began taking other actions to more broadly align our organizational structure in support of our strategy. Charges incurred in our International segment primarily related to our decision to exit our operations in Mexico. All remaining stores in Mexico were closed in the first quarter of fiscal 2022, and we do not expect to incur material future restructuring charges. Charges incurred in our Domestic segment primarily related to actions taken to align our organizational structure in support of our strategy. As we continue to evolve our strategy, it is possible that we will incur material future restructuring costs, but we are unable to forecast the timing and magnitude of such costs. All charges incurred related to the exit from Mexico and strategic realignment described above were from continuing operations and were presented as follows ($ in millions): 2022 Statement of Earnings LocationDomestic International TotalInventory markdownsCost of sales$ - $ (6) $ (6) Asset impairments(1)Restructuring charges - 6 6 Termination benefitsRestructuring charges (40) (1) (41) $ (40) $ (1) $ (41) 2021 Statement of Earnings LocationDomestic International TotalInventory markdownsCost of sales$ - $ 23 $ 23 Asset impairments(1)Restructuring charges 10 57 67 Termination benefitsRestructuring charges 123 20 143 Currency translation adjustmentRestructuring charges - 39 39 Other(2)Restructuring charges - 5 5 $ 133 $ 144 $ 277 Cumulative Amount as of January 29, 2022 Statement of Earnings LocationDomestic International TotalInventory markdownsCost of sales$ - $ 17 $ 17 Asset impairments(1)Restructuring charges 10 63 73 Termination benefitsRestructuring charges 83 19 102 Currency translation adjustmentRestructuring charges - 39 39 Other(2)Restructuring charges - 5 5 $ 93 $ 143 $ 236 (1)Remaining net carrying value of asset impairments approximates fair value and was immaterial as of January 29, 2022, and January 30, 2021.(2)Other charges are primarily comprised of contract termination costs. Restructuring accrual activity related to the exit from Mexico and strategic realignment described above was as follows ($ in millions): Termination Benefits Domestic International TotalBalances as of February 1, 2020 $ - $ - $ - Charges 123 20 143 Cash payments (19) - (19) Balances as of January 30, 2021 104 20 124 Charges 4 - 4 Cash payments (57) (18) (75) Adjustments(1) (44) (1) (45) Changes in foreign currency exchange rates - (1) (1) Balances as of January 29, 2022 $ 7 $ - $ 7 (1)Represents adjustments to previously planned organizational changes in our Domestic segment and higher-than-expected employee retention in both our Domestic and International segments. Fiscal 2020 U.S. Retail Operating Model Changes In the second quarter of fiscal 2020, we made changes primarily related to our U.S. retail operating model to increase organization effectiveness and create a more seamless customer experience across all channels. All charges incurred, including $11 million related to a voluntary early retirement offer, related to termination benefits within our Domestic segment and were presented within Restructuring charges from continuing operations on our Consolidated Statements of Earnings. As of January 29, 2022, the cumulative amount of charges incurred was $42 million and no material liability remains.

Restructuring

12 Months Ended

Jan. 29, 2022

3. Restructuring Restructuring charges were as follows ($ in millions): 2022 2021 2020Mexico Exit and Strategic Realignment(1) $ (41) $ 277 $ - Fiscal 2020 U.S. Retail Operating Model Changes 1 - 41 Total $ (40) $ 277 $ 41 (1)Includes ($6) million and $23 million related to inventory markdowns recorded in Cost of sales on our Consolidated Statements of Earnings in fiscal 2022 and fiscal 2021, respectively. Mexico Exit and Strategic Realignment The COVID-19 pandemic has had significant impacts on, for example, the economic conditions of the markets in which we operate, customer shopping behaviors, the role of technology in peoples’ lives and the way we meet their needs. In light of these changes, we are adapting our strategy to ensure that our focus and resources are closely aligned with the opportunities we see in front of us. As a result, in the third quarter of fiscal 2021, we made the decision to exit our operations in Mexico and began taking other actions to more broadly align our organizational structure in support of our strategy. Charges incurred in our International segment primarily related to our decision to exit our operations in Mexico. All remaining stores in Mexico were closed in the first quarter of fiscal 2022, and we do not expect to incur material future restructuring charges. Charges incurred in our Domestic segment primarily related to actions taken to align our organizational structure in support of our strategy. As we continue to evolve our strategy, it is possible that we will incur material future restructuring costs, but we are unable to forecast the timing and magnitude of such costs. All charges incurred related to the exit from Mexico and strategic realignment described above were from continuing operations and were presented as follows ($ in millions): 2022 Statement of Earnings LocationDomestic International TotalInventory markdownsCost of sales$ - $ (6) $ (6) Asset impairments(1)Restructuring charges - 6 6 Termination benefitsRestructuring charges (40) (1) (41) $ (40) $ (1) $ (41) 2021 Statement of Earnings LocationDomestic International TotalInventory markdownsCost of sales$ - $ 23 $ 23 Asset impairments(1)Restructuring charges 10 57 67 Termination benefitsRestructuring charges 123 20 143 Currency translation adjustmentRestructuring charges - 39 39 Other(2)Restructuring charges - 5 5 $ 133 $ 144 $ 277 Cumulative Amount as of January 29, 2022 Statement of Earnings LocationDomestic International TotalInventory markdownsCost of sales$ - $ 17 $ 17 Asset impairments(1)Restructuring charges 10 63 73 Termination benefitsRestructuring charges 83 19 102 Currency translation adjustmentRestructuring charges - 39 39 Other(2)Restructuring charges - 5 5 $ 93 $ 143 $ 236 (1)Remaining net carrying value of asset impairments approximates fair value and was immaterial as of January 29, 2022, and January 30, 2021.(2)Other charges are primarily comprised of contract termination costs. Restructuring accrual activity related to the exit from Mexico and strategic realignment described above was as follows ($ in millions): Termination Benefits Domestic International TotalBalances as of February 1, 2020 $ - $ - $ - Charges 123 20 143 Cash payments (19) - (19) Balances as of January 30, 2021 104 20 124 Charges 4 - 4 Cash payments (57) (18) (75) Adjustments(1) (44) (1) (45) Changes in foreign currency exchange rates - (1) (1) Balances as of January 29, 2022 $ 7 $ - $ 7 (1)Represents adjustments to previously planned organizational changes in our Domestic segment and higher-than-expected employee retention in both our Domestic and International segments. Fiscal 2020 U.S. Retail Operating Model Changes In the second quarter of fiscal 2020, we made changes primarily related to our U.S. retail operating model to increase organization effectiveness and create a more seamless customer experience across all channels. All charges incurred, including $11 million related to a voluntary early retirement offer, related to termination benefits within our Domestic segment and were presented within Restructuring charges from continuing operations on our Consolidated Statements of Earnings. As of January 29, 2022, the cumulative amount of charges incurred was $42 million and no material liability remains.