2 unchanged sentences
$ in millions, except per share amounts (unaudited)
+Added: August 3, 2024
February 3, 2024
−Removed: April 29, 2023
+Added: July 29, 2023
Current assets
37 unchanged sentences
Three Months Ended
−Removed: April 29, 2023
+Added: Six Months Ended
+Added: August 3, 2024
+Added: July 29, 2023
+Added: August 3, 2024
+Added: July 29, 2023
Cost of sales
3 unchanged sentences
Other income (expense):
+Added: Gain on sale of subsidiary, net
Investment income and other
Interest expense
−Removed: Earnings before income tax expense and equity in income (loss) of affiliates
+Added: Earnings before income tax expense and equity in income of affiliates
Income tax expense
−Removed: Equity in income (loss) of affiliates
+Added: Equity in income of affiliates
Basic earnings per share
5 unchanged sentences
Three Months Ended
−Removed: April 29, 2023
+Added: Six Months Ended
+Added: August 3, 2024
+Added: July 29, 2023
+Added: August 3, 2024
+Added: July 29, 2023
Foreign currency translation adjustments, net of tax
3 unchanged sentences
$ in millions (unaudited)
−Removed: Three Months Ended
−Removed: April 29, 2023
+Added: Six Months Ended
+Added: August 3, 2024
+Added: July 29, 2023
Operating activities
−Removed: Adjustments to reconcile net earnings to total cash provided by (used in) operating activities:
+Added: Adjustments to reconcile net earnings to total cash provided by operating activities:
Depreciation and amortization
1 unchanged sentence
Stock-based compensation
+Added: Gain on sale of subsidiary, net
Changes in operating assets and liabilities:
2 unchanged sentences
Other liabilities
−Removed: Total cash provided by (used in) operating activities
+Added: Total cash provided by operating activities
Investing activities
Additions to property and equipment
+Added: Net proceeds from sale of subsidiary
Total cash used in investing activities
14 unchanged sentences
Accumulated Other Comprehensive Income (Loss)
−Removed: Balances at February 3, 2024
−Removed: Net earnings, three months ended May 4, 2024
+Added: Balances at May 4, 2024
+Added: Net earnings, three months ended August 3, 2024
Other comprehensive loss:
4 unchanged sentences
Repurchase of common stock
−Removed: Balances at May 4, 2024
−Removed: Balances at January 28, 2023
−Removed: Net earnings, three months ended April 29, 2023
+Added: Balances at August 3, 2024
+Added: Balances at February 3, 2024
+Added: Net earnings, six months ended August 3, 2024
Other comprehensive loss:
4 unchanged sentences
Repurchase of common stock
+Added: Balances at August 3, 2024
Balances at April 29, 2023
+Added: Net earnings, three months ended July 29, 2023
+Added: Other comprehensive income:
+Added: Foreign currency translation adjustments, net of tax
+Added: Stock-based compensation
+Added: Issuance of common stock
+Added: Common stock dividends, $ 0.92 per share
+Added: Repurchase of common stock
+Added: Balances at July 29, 2023
+Added: Balances at January 28, 2023
+Added: Net earnings, six months ended July 29, 2023
+Added: Stock-based compensation
+Added: Issuance of common stock
+Added: Common stock dividends, $ 1.84 per share
+Added: Repurchase of common stock
+Added: Balances at July 29, 2023
See Notes to Condensed Consolidated Financial Statements.
8 unchanged sentences
The interim financial statements and the related notes included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended February 3, 2024.
−Removed: The first three months of fiscal 2025 and fiscal 2024 included 13 weeks.
−Removed: In preparing the accompanying condensed consolidated financial statements, we evaluated the period from May 4, 2024, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure.
+Added: The first six months of fiscal 2025 and fiscal 2024 each included 26 weeks.
+Added: In preparing the accompanying condensed consolidated financial statements, we evaluated the period from August 3, 2024, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure.
No such events were identified.
+Added: Sale of Subsidiary
+Added: In the second quarter of fiscal 2024, we completed the sale of a Mexico subsidiary subsequent to our exit from operations in Mexico and recognized a $ 21 million gain within Gain on sale of subsidiary, net on our Condensed Consolidated Statements of Earnings for the three and six months ended July 29, 2023.
Recently Issued Accounting Pronouncements
10 unchanged sentences
We have a supply chain financing program with an independent financial institution, whereby some of our suppliers have the opportunity to receive accounts payable settlements early, at a discount, facilitated by the financial institution.
−Removed: Our liability associated with the funded participation in the program, which is included in Accounts payable on our Condensed Consolidated Balance Sheets, was $ 505 million, $ 426 million and $ 490 million as of May 4, 2024, February 3, 2024, and April 29, 2023, respectively.
+Added: Our liability associated with the funded participation in the program, which is primarily included in Accounts payable on our Condensed Consolidated Balance Sheets, was $ 729 million, $ 426 million and $ 609 million as of August 3, 2024, February 3, 2024, and July 29, 2023, respectively.
Total Cash, Cash Equivalents and Restricted Cash
Cash, cash equivalents and restricted cash reported on our Condensed Consolidated Balance Sheets are reconciled to the total shown on our Condensed Consolidated Statements of Cash Flows as follows ($ in millions):
+Added: August 3, 2024
February 3, 2024
−Removed: April 29, 2023
+Added: July 29, 2023
Cash and cash equivalents
1 unchanged sentence
Total cash, cash equivalents and restricted cash
−Removed: Amounts included in restricted cash are primarily restricted to cover product protection plans provided under our membership offerings and other self-insurance liabilities.
+Added: Amounts included in restricted cash are primarily restricted to cover product protection plans provided under our membership offerings and self-insurance liabilities.
+Added: Reclassification
+Added: Certain reclassifications of immaterial amounts previously reported have been made to the accompanying Condensed Consolidated Statements of Cash Flows to maintain consistency and comparability between periods presented.
Restructuring
1 unchanged sentence
Three Months Ended
−Removed: April 29, 2023
+Added: Six Months Ended
+Added: August 3, 2024
+Added: July 29, 2023
+Added: August 3, 2024
+Added: July 29, 2023
Fiscal 2024 Restructuring Initiative
7 unchanged sentences
Three Months Ended
+Added: Six Months Ended
Cumulative Amount
−Removed: As of May 4, 2024
+Added: August 3, 2024
+Added: August 3, 2024
+Added: As of August 3, 2024
International
5 unchanged sentences
Adjustments (1)
−Removed: Balances at May 4, 2024
+Added: Balances at August 3, 2024
(1) Represents adjustments primarily related to higher-than-expected employee retention from previously planned organizational changes.
2 unchanged sentences
During the second quarter of fiscal 2023, we commenced an enterprise-wide initiative to better align our spending with critical strategies and operations, as well as to optimize our cost structure.
−Removed: We do not expect to incur material future restructuring charges related to this initiative.
All charges incurred related to this initiative were comprised of employee termination benefits from continuing operations and were presented within Restructuring charges on our Condensed Consolidated Statements of Earnings.
−Removed: W e recorded reductions to employee termination benefits of $ 1 million and $ 9 million in the first quarter of fiscal 2025 and fiscal 2024, respectively, primarily related to higher-than-expected employee retention.
−Removed: Cumulative charges incurred related to this initiative as of May 4, 2024, were $ 126 million, comprised of $ 123 million and $ 3 million of employee termination benefits within our Domestic and International segments, respectively.
−Removed: Restructuring accrual activity related to this initiative was as follows ($ in millions):
−Removed: Termination Benefits
−Removed: International
−Removed: Balances at January 28, 2023
−Removed: Cash payments
−Removed: Adjustments (1)
−Removed: Balances at April 29, 2023
−Removed: Balances at February 3, 2024
−Removed: Cash payments
−Removed: Adjustments (1)
−Removed: Balances at May 4, 2024
−Removed: (1) Represents adjustments primarily related to higher-than-expected employee retention from previously planned organizational changes
+Added: We recorded reductions to employee termination benefits in all periods presented, primarily within our Domestic segment, related to higher-than-expected employee retention.
+Added: Cumulative charges incurred related to this initiative as of August 3, 2024, were $ 125 million, comprised of $ 122 million and $ 3 million within our Domestic and International segments, respectively.
+Added: We do not expect to incur material future restructuring charges related to this initiative, and no material liability remains as of August 3, 2024.
Goodwill and Intangible Assets
−Removed: Goodwill balances were as follows as of May 4, 2024, February 3, 2024, and April 29, 2023 ($ in millions):
+Added: Goodwill balances were as follows as of August 3, 2024, February 3, 2024, and July 29, 2023 ($ in millions):
Gross Carrying Amount
2 unchanged sentences
No impairment charges were recorded during the periods presented.
+Added: Indefinite-Lived Intangible Assets
+Added: In the second quarter of fiscal 2025, we reclassified our Yardbird tradename from a definite-lived intangible asset to an indefinite-lived intangible asset to better reflect our expectations of the long-term use of the tradename.
+Added: The carrying value of the tradename was $ 16 million as of August 3, 2024, and was recorded within Other assets on our Consolidated Balance Sheets.
Definite-Lived Intangible Assets
We have definite-lived intangible assets recorded within Other assets on our Condensed Consolidated Balance Sheets as follows ($ in millions):
+Added: August 3, 2024
February 3, 2024
−Removed: April 29, 2023
−Removed: Weighted-Average
+Added: July 29, 2023
Gross Carrying
4 unchanged sentences
Amortization
−Removed: Useful Life Remaining as of May 4, 2024 (in years)
+Added: Weighted-Average Useful Life Remaining
+Added: as of August 3, 2024 (in years)
Customer relationships
2 unchanged sentences
Three Months Ended
+Added: Six Months Ended
Statement of Earnings Location
−Removed: April 29, 2023
+Added: August 3, 2024
+Added: July 29, 2023
+Added: August 3, 2024
+Added: July 29, 2023
Amortization expense
+Added: Selling, general and administrative expenses
Amortization expense expected to be recognized in future periods is as follows ($ in millions):
8 unchanged sentences
Financial assets and liabilities accounted for at fair value were as follows ($ in millions):
−Removed: Fair Value at
+Added: Fair Value as of
Balance Sheet Location (1)
Fair Value Hierarchy
+Added: August 3, 2024
February 3, 2024
−Removed: April 29, 2023
+Added: July 29, 2023
Money market funds (2)
23 unchanged sentences
Long-term debt balances were as follows ($ in millions):
+Added: August 3, 2024
February 3, 2024
−Removed: April 29, 2023
+Added: July 29, 2023
Carrying Value
7 unchanged sentences
Our derivative instruments designated as net investment hedges and fair value hedges are recorded on our Condensed Consolidated Balance Sheets at fair value.
−Removed: When significant, the gross fair values of our outstanding derivative instruments and corresponding fair value classifications are included in Note 4, Fair Value Measurements .
+Added: The gross fair values of our outstanding derivative instruments and corresponding fair value classifications are included in Note 4, Fair Value Measurements .
Notional amounts of our derivative instruments were as follows ($ in millions):
Contract Type
+Added: August 3, 2024
February 3, 2024
−Removed: April 29, 2023
+Added: July 29, 2023
Derivatives designated as net investment hedges
4 unchanged sentences
Three Months Ended
+Added: Six Months Ended
Statement of Earnings Location
−Removed: April 29, 2023
+Added: August 3, 2024
+Added: July 29, 2023
+Added: August 3, 2024
+Added: July 29, 2023
Interest rate swaps
5 unchanged sentences
We have a $ 1.25 billion five-year senior unsecured revolving credit facility agreement (the “Five-Year Facility Agreement”) with a syndicate of banks that expires in April 2028.
−Removed: There were no borrowings outstanding under the Five-Year Facility Agreement as of May 4, 2024, February 3, 2024, or April 29, 2023.
+Added: There were no borrowings outstanding under the Five-Year Facility Agreement as of August 3, 2024, February 3, 2024, or July 29, 2023.
Long-Term Debt
Long-term debt consisted of the following ($ in millions):
+Added: August 3, 2024
February 3, 2024
−Removed: April 29, 2023
+Added: July 29, 2023
Notes, 4.45 %, due October 1, 2028
12 unchanged sentences
Contract balances were as follows ($ in millions):
+Added: August 3, 2024
February 3, 2024
−Removed: April 29, 2023
+Added: July 29, 2023
Receivables, net (1)
5 unchanged sentences
Long-term liabilities
−Removed: (1) Receivables are recorded net of allowances for expected credit losses of $ 17 million, $ 23 million and $ 18 million as of May 4, 2024, February 3, 2024, and April 29, 2023, respectively.
−Removed: During the first three months of fiscal 2025 and fiscal 2024, $ 642 million and $ 747 million of revenue was recognized, respectively, that was included in the contract liabilities at the beginning of the respective periods.
+Added: (1) Receivables are recorded net of allowances for expected credit losses of $ 16 million, $ 23 million and $ 18 million as of August 3, 2024, February 3, 2024, and July 29, 2023, respectively.
+Added: During the first six months of fiscal 2025 and fiscal 2024, $ 893 million and $ 1,026 million of revenue was recognized, respectively, that was included in the contract liabilities at the beginning of the respective periods.
Estimated revenue from our contract liability balances expected to be recognized in future periods if the performance of the contract is expected to have an initial duration of more than one year is as follows ($ in millions):
5 unchanged sentences
Three Months Ended
−Removed: April 29, 2023
+Added: Six Months Ended
+Added: August 3, 2024
+Added: July 29, 2023
+Added: August 3, 2024
+Added: July 29, 2023
Weighted-average common shares outstanding
9 unchanged sentences
Three Months Ended
−Removed: April 29, 2023
+Added: Six Months Ended
+Added: August 3, 2024
+Added: July 29, 2023
+Added: August 3, 2024
+Added: July 29, 2023
Total cost of shares repurchased
1 unchanged sentence
Total number of shares repurchased
−Removed: As of May 4, 2024, $ 3.7 billion of the $ 5.0 billion share repurchase authorization was available.
−Removed: Between the end of the first quarter of fiscal 2025 on May 4, 2024 and June 5, 2024, we repurchased an incremental 0.4 million shares of our common stock at a cost of $ 34 million.
+Added: As of August 3, 2024, $ 3.6 billion of the $ 5.0 billion share repurchase authorization was available.
+Added: Between the end of the second quarter of fiscal 2025 on August 3, 2024, and September 4, 2024, we repurchased an incremental 0.4 million shares of our common stock at a cost of $ 39 million.
We currently expect total share repurchases of approximately $ 500 million in fiscal 2025.
6 unchanged sentences
Three Months Ended
−Removed: April 29, 2023
+Added: Six Months Ended
+Added: August 3, 2024
+Added: July 29, 2023
+Added: August 3, 2024
+Added: July 29, 2023
Revenue by reportable segment
11 unchanged sentences
Total International revenue
−Removed: Operating income by reportable segment and the reconciliation to consolidated earnings before income tax expense and equity in income (loss) of affiliates was as follows ($ in millions):
+Added: Operating income by reportable segment and the reconciliation to consolidated earnings before income tax expense and equity in income of affiliates was as follows ($ in millions):
Three Months Ended
−Removed: April 29, 2023
+Added: Six Months Ended
+Added: August 3, 2024
+Added: July 29, 2023
+Added: August 3, 2024
+Added: July 29, 2023
International
1 unchanged sentence
Other income (expense):
+Added: Gain on sale of subsidiary, net
Investment income and other
Interest expense
−Removed: Earnings before income tax expense and equity in income (loss) of affiliates
+Added: Earnings before income tax expense and equity in income of affiliates
Assets by reportable segment were as follows ($ in millions):
+Added: August 3, 2024
February 3, 2024
−Removed: April 29, 2023
+Added: July 29, 2023
International
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.