INCOME TAXES (Tables)

12 Months Ended

Jan. 31, 2016

INCOME TAXES

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
	January 31, 2016		February 1, 2015		February 2, 2014
United States	$	237	$	—	$	(207	)
Foreign		4		—		(1	)
Total	$	241	$	—	$	(208	)

Provision (Benefit) for Income Taxes

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

	Fiscal Year Ended
	January 31, 2016			February 1, 2015			February 2, 2014
Current:
Federal	$	(165	)	$	9		$	8
State		(12	)		(1	)		4
Foreign		4			—			—
		(173	)		8			12
Deferred:
Federal		(829	)		31			29
State		(84	)		3			3
Foreign		1			—			—
		(912	)		34			32
Total	$	(1,085	)	$	42		$	44

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 2015, fiscal 2014, and fiscal 2013 is as follows (amounts in millions):

	Fiscal Year Ended
	January 31, 2016			February 1, 2015		February 2, 2014
Income taxes at federal statutory rate	$	84		$	—	$	(73	)
State income taxes, net of federal income tax benefit		13			—		(7	)
Foreign rate differential		(1	)		—		(2	)
Non-deductible interest		14			—		—
Valuation allowance		(1,007	)		33		118
Adjustments to tax reserves		(189	)		7		8
Other, net		1			2		—
Total provision (benefit)	$	(1,085	)	$	42	$	44

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 January 31, 2016 and February 1, 2015 were as follows (amounts in millions):

	January 31, 2016			February 1, 2015
Deferred Tax Assets:
Accrued compensation	$	26		$	32
Accrued self-insurance liabilities		17			18
Other accrued liabilities		24			25
Deferred revenue		—			7
Restructuring liabilities		23			27
Net operating loss		751			960
Fixed assets		25			20
Allowance for doubtful accounts		6			7
Inventory		35			37
Tax credit carryforward		14			6
Other		5			24
Valuation allowance		(6	)		(1,013	)
Noncurrent deferred tax assets		920			150
Deferred Tax Liabilities:
Prepaid expense	$	(1	)	$	(1	)
Deferred financing costs		(9	)		(27	)
Software costs		(12	)		(17	)
Intangible assets		(166	)		(194	)
Income from discharge of indebtedness		(47	)		(63	)
Noncurrent deferred tax liabilities		(235	)		(302	)
Deferred tax assets (liabilities), net	$	685		$	(152	)

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 2015, fiscal 2014, and fiscal 2013 is as follows (amounts in millions):

	Fiscal Year Ended
	January 31, 2016			February 1, 2015			February 2, 2014
Unrecognized Tax Benefits beginning of period	$	187		$	192		$	193
Gross increases for tax positions in current period		1			1			—
Gross increases for tax positions in prior period		5			—			—
Gross decreases for tax positions in prior period		(2	)		(1	)		—
Settlements		(181	)		(5	)		—
Lapse of statutes		(1	)		—			(1	)
Unrecognized Tax Benefits end of period	$	9		$	187		$	192