Segment Reporting (Tables)

6 Months Ended

Jul. 28, 2012

Business Segment Results and Total Assets by Segment

Business Segment Results	Three Months Ended July 28, 2012									Three Months Ended July 30, 2011
			U.S.									U.S.
	U.S.		Credit							U.S.		Credit
(millions)	Retail		Card		Canadian			Total		Retail		Card		Canadian			Total
Sales/Credit card revenues	$	16,451	$	328	$	—		$	16,779	$	15,895	$	345	$	—		$	16,240
Cost of sales	11,297		—		—			11,297		10,872		—		—			10,872
Bad debt expense(a)	—		43		—			43		—		15		—			15
Selling, general and administrative/ Operations and marketing expenses(a), (b)	3,468		139		47			3,653		3,382		137		25			3,544
Depreciation and amortization	505		3		22			531		494		4		11			509
Earnings/(loss) before interest expense and income taxes	1,181		143		(69		)	1,255		1,147		189		(36		)	1,300
Interest expense on nonrecourse debt collateralized by credit card receivables (c)	—		3		—			3		—		18		—			18
Segment profit/(loss)	$	1,181	$	140	$	(69	)	$	1,252	$	1,147	$	171	$	(36	)	$	1,282
Unallocated (income) and expenses:
Other net interest expense (c)								181									173
Earnings before income taxes								$	1,071								$	1,109

Business Segment Results	Six Months Ended July 28, 2012									Six Months Ended July 30, 2011
			U.S.									U.S.
	U.S.		Credit							U.S.		Credit
(millions)	Retail		Card		Canadian			Total		Retail		Card		Canadian			Total
Sales/Credit card revenues	$	32,989	$	657	$	—		$	33,646	$	31,475	$	700	$	—		$	32,175
Cost of sales	22,838		—		—			22,838		21,710		—		—			21,710
Bad debt expense(a)	—		95		—			95		—		27		—			27
Selling, general and administrative/ Operations and marketing expenses(a), (b)	6,762		271		81			7,114		6,554		262		36			6,852
Depreciation and amortization	1,009		7		44			1,060		1,002		9		11			1,022
Earnings/(loss) before interest expense and income taxes	2,380		284		(125		)	2,539		2,209		402		(47		)	2,564
Interest expense on nonrecourse debt collateralized by credit card receivables (c)	—		5		—			5		—		37		—			37
Segment profit/(loss)	$	2,380	$	279	$	(125	)	$	2,534	$	2,209	$	365	$	(47	)	$	2,527
Unallocated (income) and expenses:
Other net interest expense (c)								361									337
Earnings before income taxes								$	2,173								$	2,190

Note: The sum of the segment amounts may not equal the total amounts due to rounding.

(a) The combination of bad debt expense and operations and marketing expenses, less amounts the U.S. Retail Segment charges the U.S. Credit Card Segment for loyalty programs, within the U.S. Credit Card Segment represent credit card expenses on the Consolidated Statements of Operations.

(b) Loyalty program charges were $74 million and $66 million for the three months ended July 28, 2012 and July 30, 2011, respectively, and $138 million and $115 million for the six months ended July 28, 2012 and July 30, 2011, respectively. In all periods, these amounts were recorded as reductions to SG&A expenses within the U.S. Retail Segment and increases to operations and marketing expenses within the U.S. Credit Card Segment.

(c) The combination of interest expense on nonrecourse debt collateralized by credit card receivables and other net interest expense represent net interest expense on the Consolidated Statements of Operations.

Total Assets by Segment	July 28,		January 28,		July 30,
(millions)	2012		2012		2011
U.S. Retail	$	37,724	$	37,108	$	36,823
U.S. Credit Card	5,751		6,135		5,931
Canadian	3,850		3,387		2,745
Total	$	47,325	$	46,630	$	45,499

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References+ Details