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Revision of Consolidated Financial Statements for Correction of Immaterial Misstatement (Tables)
 9 Months Ended
Nov. 02, 2024
Accounting Changes and Error Corrections [Abstract]  
Revision of Consolidated Financial Statements for Correction of Immaterial Misstatement Revision of Consolidated Financial Statements for Correction of Immaterial Misstatement
During the preparation of the Company's unaudited consolidated financial statements for the fiscal quarter ended November 2, 2024, the Company identified an issue related to delivery expenses, a component of cost of sales, in one of its accrual accounts. The Company consequently initiated an independent investigation. As a result of the independent investigation and forensic analysis, the Company identified that a single employee with responsibility for small package delivery expense accounting intentionally made erroneous accounting accrual entries and falsified underlying documentation to hide approximately $151 million of cumulative delivery expenses from the fourth quarter of 2021 through the third quarter of 2024. The Company concluded that revisions should be made to its historical consolidated financial statements that were impacted by these misstatements to properly reflect delivery expense, the related accrual and tax effects. The total misstatement to delivery expense for the first half of fiscal 2024 amounted to approximately $9 million, which was adjusted in total during the third quarter of 2024.

In accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, the Company evaluated the errors and determined that the related impact was not material to results of operations or financial position for any historical annual or interim period. Specifically, the errors identified did not impact net sales which the Company believes is a key financial metric of the users of the financial statements and do not impact trends in profitability or key financial statement operating metrics. The errors also did not impact the company’s cash management activities or vendor payments, net cash flows from operating activities or the Company’s compliance with its debt covenants. Based on this assessment and the consideration of both quantitative and qualitative factors, management determined that the errors are not material to any prior period. However, the Company is correcting such errors in the financial statements of this Form 10-Q by adjusting prior period financial statements. As a result, the Company has revised, within this Form 10-Q, its consolidated financial statements as of and for each of the quarterly and year-to-date periods as shown below. Additionally, Note 2 – Earnings Per Share, has been adjusted to reflect the correction of the immaterial errors.

Revised Consolidated Statements of Operations and Comprehensive Income (Loss)

52 Weeks Ended January 29, 202252 Weeks Ended January 28, 2023
As ReportedAdjustmentAs CorrectedAs ReportedAdjustmentAs Corrected
(millions, except per share figures)
Cost of sales$(14,956)$(15)$(14,971)$(15,306)$(41)$(15,347)
Operating income2,350 (15)2,335 1,730 (41)1,689 
Income before income taxes1,866 (15)1,851 1,518 (41)1,477 
Federal, state and local income tax expense(436)4 (432)(341)10 (331)
Net income1,430 (11)1,419 1,177 (31)1,146 
Basic earnings per share4.66 (0.04)4.62 4.28 (0.11)4.17 
Diluted earnings per share4.55 (0.03)4.52 4.19 (0.11)4.08 
Comprehensive income1,596 (11)1,585 1,181 (31)1,150 
13 Weeks Ended April 29, 2023
As ReportedAdjustmentAs Corrected
(millions, except per share figures)
Cost of sales$(2,988)$(4)$(2,992)
Operating income244 (4)240 
Income before income taxes211 (4)207 
Federal, state and local income tax expense(56)— (56)
Net income155 (4)151 
Basic earnings per share0.57 (0.02)0.55 
Diluted earnings per share0.56 (0.01)0.55 
Comprehensive income156 (4)152 


13 Weeks Ended July 29, 202326 Weeks Ended July 29, 2023
As ReportedAdjustmentAs CorrectedAs ReportedAdjustmentAs Corrected
(millions, except per share figures)
Cost of sales$(3,176)$4 $(3,172)$(6,164)$(1)$(6,165)
Operating income124 4 128 368 (1)367 
Income (loss) before income taxes(30)4 (26)181 (1)180 
Federal, state and local income tax (expense) benefit8 (1)7 (48)— (48)
Net income (loss)(22)3 (19)133 (1)132 
Basic earnings (loss) per share(0.08)0.01 (0.07)0.49 (0.01)0.48 
Diluted earnings (loss) per share(0.08)0.01 (0.07)0.48 — 0.48 
Comprehensive income69 3 72 225 (1)224 

13 Weeks Ended October 28, 202339 Weeks Ended October 28, 2023
As ReportedAdjustmentAs CorrectedAs ReportedAdjustmentAs Corrected
(millions, except per share figures)
Cost of sales$(2,902)$(3)$(2,905)$(9,067)$(3)$(9,070)
Operating income86 (3)83 453 (3)450 
Income before income taxes46 (3)43 226 (3)223 
Federal, state and local income tax expense(3)1 (2)(51)1 (50)
Net income43 (2)41 175 (2)173 
Basic earnings per share0.16 (0.01)0.15 0.64 (0.01)0.63 
Diluted earnings per share0.15 — 0.15 0.63 (0.01)0.62 
Comprehensive income 10 (2)8 234 (2)232 
13 Weeks Ended February 3, 202453 Weeks Ended February 3, 2024
As ReportedAdjustmentAs CorrectedAs ReportedAdjustmentAs Corrected
(in millions, except share figures)
Cost of sales$(5,076)$(77)$(5,153)$(14,143)$(81)$(14,224)
Operating income (loss)(72)(77)(149)382 (81)301 
Income (loss) before income taxes(103)(77)(180)124 (81)43 
Federal, state and local income tax (expense) benefit32 20 52 (19)21 2 
Net income (loss)(71)(57)(128)105 (60)45 
Basic earnings (loss) per share(0.26)(0.21)(0.47)0.38 (0.22)0.16 
Diluted earnings (loss) per share(0.26)(0.20)(0.46)0.38 (0.22)0.16 
Comprehensive income (loss)(7)(57)(64)227 (60)167 


Revised Consolidated Balance Sheets

October 28, 2023
As ReportedAdjustmentAs Corrected
(millions)
Current Assets:
Income taxes$73 $15 $88 
Total Current Assets7,070 15 7,085 
Total Assets18,111 15 18,126 
Current Liabilities:
Accounts payable and accrued liabilities2,388 60 2,448 
Total Current Liabilities6,014 60 6,074 
Shareholders’ Equity:
Accumulated equity6,261 (45)6,216 
Total Shareholders' Equity4,144 (45)4,099 
Total Liabilities and Shareholders’ Equity18,111 15 18,126 

February 3, 2024
As ReportedAdjustmentAs Corrected
(millions)
Current Liabilities:
Accounts payable and accrued liabilities$2,434 $137 $2,571 
Income taxes83 (35)48 
Total Current Liabilities4,430 102 4,532 
Shareholders’ Equity:
Accumulated equity6,190 (102)6,088 
Total Shareholders' Equity4,137 (102)4,035 
May 4, 2024
As ReportedAdjustmentAs Corrected
(millions)
Current Liabilities:
Accounts payable and accrued liabilities$2,088 $137 $2,225 
Income taxes115 (35)80 
Total Current Liabilities4,550 102 4,652 
Shareholders’ Equity:
Accumulated equity6,227 (102)6,125 
Total Shareholders' Equity4,186 (102)4,084 
August 3, 2024
As ReportedAdjustmentAs Corrected
(millions)
Current Assets:
Income taxes$12 $35 $47 
Total Current Assets5,707 35 5,742 
Total Assets15,833 35 15,868 
Current Liabilities:
Accounts payable and accrued liabilities1,990 137 2,127 
Total Current Liabilities3,867 137 4,004 
Shareholders’ Equity:
Accumulated equity6,328 (102)6,226 
Total Shareholders' Equity4,303 (102)4,201 
Total Liabilities and Shareholders’ Equity15,833 35 15,868 

Revised Consolidated Statement of Cash Flows
39 Weeks Ended October 28, 2023
As ReportedAdjustmentAs Corrected
(millions)
Cash flows from operating activities:
Net income$175 $(2)$173 
Changes in assets and liabilities:
Decrease in accounts payable and accrued liabilities
(305)3 (302)
Decrease in current income taxes(123)(1)(124)
52 Weeks Ended January 28, 202353 Weeks Ended February 3, 2024
As ReportedAdjustmentAs CorrectedAs ReportedAdjustmentAs Corrected
(millions)
Cash flows from operating activities:
Net income$1,177 $(31)$1,146 $105 $(60)$45 
Adjustments to reconcile net income to net cash provided by operating activities:
Decrease in accounts payable and accrued liabilities
(174)41 (133)(347)81 (266)
Decrease in current income taxes(75)(10)(85)24 (21)3