Segment Information

6 Months Ended

Aug. 01, 2020

Segment Information [Abstract]

Segment Information

3. Segment Information

We have integrated all available shopping channels including stores, websites, apps, social channels, and catalogs. Store sales are primarily fulfilled from the store’s inventory but may also be shipped from any of our distribution centers or from a different store location if an item is not available at the original store. Direct-to-customer orders are generally shipped to our customers through our distribution centers but may also be shipped from any store or a combination of our distribution centers and stores depending on the availability of particular items.

We evaluate performance based on several factors, of which the primary financial measure is the banner’s financial results referred to as division profit. Division profit reflects income before income taxes, impairment and other charges, corporate expense, non-operating income, and net interest (expense) income. The following table summarizes our results:

	Thirteen weeks ended				Twenty-six weeks ended
	August 1,		August 3,		August 1,		August 3,
($ in millions)	2020		2019		2020		2019
Sales	$	2,077	$	1,774	$	3,253	$	3,852
Operating Results
Division profit		125		115	$	46	$	365
Less: Impairment and other charges (1)		38		14		54		15
Less: Corporate expense (2)		18		20		28		41
Income (loss) from operations		69		81		(36)		309
Interest (expense) income, net		(2)		2		(3)		6
Other income, net		3		2		4		4
Income (loss) before income taxes	$	70	$	85	$	(35)	$	319

(1) During the thirteen and twenty-six weeks ended August 1, 2020 and August 3, 2019, we recorded pre-tax charges as detailed in Note 4, Impairment and Other Charges.

(2) Corporate expense consists of unallocated selling, general and administrative expenses, as well as depreciation and amortization related to our corporate headquarters, centrally managed departments, unallocated insurance and benefit programs, certain foreign exchange transaction gains and losses, and other items.