INCOME TAXES (Tables)

12 Months Ended

Jan. 31, 2015

Income Tax Disclosure [Abstract]

Earnings before Income Taxes

(Loss) earnings before income taxes are as follows:

	Fiscal Years Ended
(In millions)	January 31, 2015			February 1, 2014			February 2, 2013
U.S.	$	(263	)	$	(851	)	$	(18	)
Foreign	7			(16		)	110
(Loss) earnings before income taxes	$	(256	)	$	(867	)	$	92

Income Tax (Benefit) Expense

Income tax expense (benefit) is as follows:

	Fiscal Years Ended
(In millions)	January 31, 2015			February 1, 2014			February 2, 2013
Current:
U.S. Federal	$	(13	)	$	(7	)	$	(28	)
Foreign	46			46			45
State	—			(3		)	—
Total current income tax expense (benefit)	$	33		$	36		$	17
Deferred:
U.S. Federal	$	1		$	42		$	(9	)
Foreign	(2		)	72			11
State	—			19			34
Total deferred income tax expense (benefit)	$	(1	)	$	133		$	36
Total income tax expense (benefit)	$	32		$	169		$	53

Effective Tax Rate Reconciliation

The effective tax rate reconciliations are as follows:

	Fiscal Years Ended
	January 31, 2015		February 1, 2014		February 2, 2013
U.S. Federal statutory tax rate	35.0	%	35.0	%	35.0	%
State taxes, net of U.S. Federal benefit	—	%	(1.2	)%	23.9	%
Foreign operations (1)	(13.5	)%	(12.3	)%	3.7	%
U.S. Federal valuation allowance	(36.6	)%	(27.9	)%	0.8	%
Unrecognized tax benefits (2)	3.0	%	—	%	(3.6	)%
Goodwill impairment (3)	—	%	(13.4	)%	—	%
Other	(0.4	)%	0.3	%	(2.2	)%
Effective tax rate	(12.5	)%	(19.5	)%	57.6	%

Summary of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to deferred tax assets and liabilities are:

(In millions)	January 31, 2015			February 1, 2014
Deferred tax assets:
U.S. Federal tax loss and other carryforwards	$	385		$	398
State tax loss and other carryforwards	84			75
Foreign tax loss and other carryforwards	169			197
Straight line rent	127			137
Inventory	52			75
Insurance loss reserve	35			36
Restructuring charges	7			10
Other	158			119
Gross deferred tax assets before valuation allowance	1,017			1,047
Valuation allowance	(621		)	(511		)
Total deferred tax assets	$	396		$	536
Deferred tax liabilities:
Fixed assets (1)	$	(67	)	$	(131	)
Undistributed earnings of foreign subsidiaries	(222		)	(291		)
Foreign currency translation	(24		)	(26		)
Other	(21		)	(14		)
Total deferred tax liabilities	$	(334	)	$	(462	)
Net deferred tax assets	$	62		$	74

Summary of Deferred Tax Assets and Liabilities Reflected in Consolidated Balance Sheets

The deferred tax assets and liabilities above are reflected in the Consolidated Balance Sheets as follows:

(In millions)	January 31, 2015			February 1, 2014
Current deferred tax assets	$	45		$	31
Current deferred tax liabilities (2)	(4		)	(13		)
Non-current deferred tax assets	133			152
Non-current deferred tax liabilities	(112		)	(96		)
	$	62		$	74

(1) Includes deferred impact of finance obligations associated with capital projects.

(2) The current deferred tax liabilities are included as components of Accrued expenses and other current liabilities in the Consolidated Balance Sheets.

Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits (Excluding Interest and Penalties)

A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits (excluding interest and penalties) is as follows:

	Fiscal Years Ended
(In millions)	January 31, 2015			February 1, 2014			February 2, 2013
Beginning balance	$	37		$	32		$	42
Additions for tax positions of the current year	4			4			5
Additions for tax positions of prior years	5			6			3
Reductions for tax positions of prior years (1)	(11		)	(1		)	(12		)
Settlements	—			—			(5		)
Currency translation adjustment	(4		)	—			—
Lapse of statute of limitations	(1		)	(4		)	(1		)
Ending balance	$	30		$	37		$	32

(1) Reductions for tax positions of prior years include amounts related to the resolution of issues in connection with resolving tax examinations, making protective elections, as well as changes to and clarifications of tax rules and regulations.