Summary of Significant Accounting Policies (Tables)

12 Months Ended

Feb. 02, 2013

Computation of Basic and Diluted Earnings Per Share

The computation of basic and diluted earnings per share is as follows:

	2012		2011		2010
	(in millions, except per share data)
Net income	$	397	$	278	$	169
Weighted-average common shares outstanding		151.2		153.0		155.7
Basic Earnings per share	$	2.62	$	1.81	$	1.08
Weighted-average common shares outstanding		151.2		153.0		155.7
Dilutive effect of potential common shares		2.8		1.4		1.0
Weighted-average common shares outstanding assuming dilution		154.0		154.4		156.7
Diluted earnings per share	$	2.58	$	1.80	$	1.07

Estimated Useful Lives

Depreciation and amortization are computed on a straight-line basis over the following estimated useful lives:

Buildings	Maximum of 50 years
Leasehold improvements	10 years or term of lease, if shorter
Furniture, fixtures, and equipment	3 – 10 years
Software	2 – 7 years

Advertising Expense

Catalog Costs Included as Component of Selling, General and Administrative Expenses

Advertising costs, which are included as a component of selling, general and administrative expenses, were as follows:

	2012			2011			2010
	(in millions)
Advertising expenses	$	132		$	121		$	97
Cooperative advertising reimbursements		(25	)		(22	)		(23	)
Net advertising expense	$	107		$	99		$	74

Catalog Expense

Catalog Costs Included as Component of Selling, General and Administrative Expenses

Catalog costs, which are included as a component of selling, general and administrative expenses, were as follows:

	2012			2011			2010
	(in millions)
Catalog costs	$	45		$	44		$	45
Cooperative reimbursements		(6	)		(5	)		(5	)
Net catalog expense	$	39		$	39		$	40