INCOME TAXES (Tables)

12 Months Ended

Feb. 02, 2014

Components of Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes

The components of Income (Loss) from Continuing Operations before Provision (Benefit) for Income Taxes are as follows (amounts in millions):

	Fiscal Year Ended

	February 2, 2014			February 3, 2013			January 29, 2012
United States	$	(171	)	$	(1,210	)	$	(503	)
Foreign		24			17			20


Total	$	(147	)	$	(1,193	)	$	(483	)

Provision (Benefit) for Income Taxes

The Provision (Benefit) for Income Taxes consisted of the following (amounts in millions):

	Fiscal Year Ended

	February 2, 2014		February 3, 2013			January 29, 2012
Current:
Federal	$	—	$	—		$	—
State		4		3			3
Foreign		4		3			—


		8		6			3
Deferred:
Federal		48		(3	)		64
State		5		(1	)		6
Foreign		1		—			(5	)
Foreign realization of tax deductible goodwill from prior acquisitions		—		2			11


		54		(2	)		76


Total	$	62	$	4		$	79

Reconciliation of Provision (Benefit) for Income Taxes from Continuing Operations at Federal Statutory Rate of 35% to Actual Tax Provision (Benefit)

The reconciliation of the provision (benefit) for income taxes from continuing operations at the federal statutory rate of 35% to the actual tax provision (benefit) for fiscal 2013, fiscal 2012, and fiscal 2011 is as follows (amounts in millions):

	Fiscal Year Ended

	February 2, 2014			February 3, 2013			January 29, 2012
Income taxes at federal statutory rate	$	(51	)	$	(419	)	$	(169	)
State income taxes, net of federal income tax benefit		(5	)		(53	)		(24	)
Foreign rate differential		(2	)		(2	)		(2	)
Non-deductible goodwill impairment		—			17			—
Non-deductible interest		—			14			15
Valuation allowance		113			442			259
Adjustments to tax reserves		8			(1	)		12
Other, net		(1	)		6			(12	)


Total provision (benefit)	$	62		$	4		$	79

Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of February 2, 2014 and February 3, 2013 were as follows (amounts in millions):

	February 2, 2014			February 3, 2013

Current:
Deferred Tax Assets:
Interest	$	—		$	131
Allowance for doubtful accounts		7			9
Inventory		42			37
Accrued compensation		3			1
Accrued self-insurance liabilities		3			5
Restructuring liabilities		4			4
Net operating loss		80			—
Other accrued liabilities		21			23
Other		2			—
Valuation allowance		(138	)		(167	)


Current deferred tax assets		24			43
Deferred Tax Liabilities:
Prepaid expense	$	(3	)	$	(1	)
Income from discharge of indebtedness		(14	)		—


Current deferred tax liabilities		(17	)		(1	)
Noncurrent:
Deferred Tax Assets:
Accrued compensation		33			33
Accrued self-insurance liabilities		13			13
Other accrued liabilities		5			7
Deferred revenue		7			8
Restructuring liabilities		26			29
Net operating loss		921			830
Fixed assets		15			23
Interest		17			13
Other		10			9
Valuation allowance		(858	)		(758	)


Noncurrent deferred tax assets		189			207
Deferred Tax Liabilities:
Deferred Financing Costs	$	(25	)	$	(8	)
Software costs		(20	)		(25	)
Intangible assets		(189	)		(193	)
Income from discharge of indebtedness		(65	)		(80	)


Noncurrent deferred tax liabilities		(299	)		(306	)


Deferred tax assets (liabilities), net	$	(103	)	$	(57	)

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits for Continuing Operations

A reconciliation of the beginning and ending amount of unrecognized tax benefits for continuing operations for fiscal 2013, fiscal 2012, and fiscal 2011 is as follows (amounts in millions):

	Fiscal Year Ended

	February 2, 2014			February 3, 2013			January 29, 2012
Unrecognized Tax Benefits beginning of period	$	193		$	196		$	192
Gross increases for tax positions in current period		—			—			—
Gross increases for tax positions in prior period		—			2			6
Gross decreases for tax positions in prior period		—			0			—
Settlements		—			(1	)		(1	)
Lapse of statutes		(1	)		(4	)		(1	)


Unrecognized Tax Benefits end of period	$	192		$	193		$	196