Business and Summary of Accounting Policies (Tables)

12 Months Ended

Jan. 28, 2017

Store

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Number of Stores

1,154

Schedule of fiscal period

The following fiscal periods are presented in this report.

Fiscal year	Ended	Number of Weeks
2016	January 28, 2017	52
2015	January 30, 2016	52
2014	January 31, 2015	52

Property and equipment

Property and equipment consist of the following:

(Dollars in Millions)	Jan 28, 2017			Jan 30, 2016
Land	$	1,118		$	1,110
Buildings and improvements:
Owned	8,004			7,999
Leased	1,801			1,848
Store fixtures and equipment	1,711			1,804
Computer hardware and software	1,939			1,590
Construction in progress	318			167
Total property and equipment, at cost	14,891			14,518
Less accumulated depreciation and amortization	(6,788		)	(6,210		)
Property and equipment, net	$	8,103		$	8,308

Range of useful lives

The annual provisions for depreciation and amortization generally use the following ranges of useful lives:

Buildings and improvements	5-40 years
Store fixtures and equipment	3-15 years
Computer hardware and software	3-8 years

Accrued Liabilities

Accrued liabilities consist of the following:

(Dollars in Millions)	Jan 28, 2017		Jan 30, 2016
Gift cards and merchandise return cards	$	329	$	323
Sales, property and use taxes	183		184
Payroll and related fringe benefits	147		117
Accrued capital	102		64
Marketing	82		77
Credit card liabilities	67		88
Other	314		353
Accrued liabilities	$	1,224	$	1,206

Accumulated other comprehensive loss

The tax effects of each component of other comprehensive income are as follows:

(Dollars in Millions)	2016			2015			2014
Interest rate derivatives:
Before-tax amounts	$	5		$	5		$	5
Tax expense	(2		)	(2		)	(2		)
After-tax amounts	3			3			3
Unrealized gains on investments:
Before-tax amounts	—			—			18
Tax expense	—			—			(7		)
After-tax amounts	—			—			11
Other comprehensive income	$	3		$	3		$	14

Tax effects of components of other comprehensive (loss) income

The tax effects of each component of other comprehensive income are as follows:

(Dollars in Millions)	2016			2015			2014
Interest rate derivatives:
Before-tax amounts	$	5		$	5		$	5
Tax expense	(2		)	(2		)	(2		)
After-tax amounts	3			3			3
Unrealized gains on investments:
Before-tax amounts	—			—			18
Tax expense	—			—			(7		)
After-tax amounts	—			—			11
Other comprehensive income	$	3		$	3		$	14

Advertising

costs, net of related vendor allowances, are as follows:

(Dollars in Millions)	2016			2015			2014
Gross marketing costs	$	1,164		$	1,171		$	1,189
Vendor allowances	(148		)	(160		)	(165		)
Net marketing costs	$	1,016		$	1,011		$	1,024
Net marketing costs as a percent of net sales	5.4		%	5.3		%	5.4		%

Net income per share

The information required to compute basic and diluted net income per share is as follows:

(Dollars in Millions, Except per Share Data)	2016		2015		2014
Numerator—net income	$	556	$	673	$	867
Denominator—weighted average shares
Basic	178		193		203
Impact of dilutive employee stock options (a)	1		2		1
Diluted	179		195		204
Net income per share:
Basic	$	3.12	$	3.48	$	4.28
Diluted	$	3.11	$	3.46	$	4.24

Deductible as a Percent of Losses, Minimum

200.00%