INCOME TAXES (Tables)

12 Months Ended

Jan. 29, 2017

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 29, 2017		January 31, 2016		February 1, 2015
United States	$	338	$	233	$	(2	)
Foreign		5		9		—
Total	$	343	$	242	$	(2	)

Provision (Benefit) for Income Taxes

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

	Fiscal Year Ended
	January 29, 2017		January 31, 2016			February 1, 2015
Current:
Federal	$	3	$	(165	)	$	9
State		2		(12	)		(1	)
Foreign		5		4			—
		10		(173	)		8
Deferred:
Federal		118		(828	)		26
State		11		(84	)		2
Foreign		—		1			—
		129		(911	)		28
Total	$	139	$	(1,084	)	$	36

Reconciliation of the provision (benefit) for income taxes from continuing operations at the federal statutory rate of 35% to the 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 2016, fiscal 2015, and fiscal 2014 is as follows (amounts in millions):

	Fiscal year Ended
	January 29, 2017			January 31, 2016			February 1, 2015
Income taxes at federal statutory rate	$	120		$	84		$	—
State income taxes, net of federal income tax benefit		13			13			—
Foreign rate differential		(1	)		(1	)		—
Legal entity restructuring		1			14			—
Valuation allowance		(1	)		(1,007	)		28
Adjustments to tax reserves		2			(189	)		7
Other, net		5			2			1
Total provision (benefit)	$	139		$	(1,084	)	$	36

Significant portions of the 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 29, 2017 and January 31, 2016 were as follows (amounts in millions):

	January 29, 2017			January 31, 2016
Deferred Tax Assets:
Accrued compensation	$	23		$	26
Accrued self-insurance liabilities		18			17
Other accrued liabilities		21			24
Restructuring liabilities		18			23
Net operating loss carryforward		660			751
Fixed assets		10			25
Allowance for doubtful accounts		6			6
Inventory		35			35
Tax credit carryforward		19			14
Other		4			5
Valuation allowance		(5	)		(6	)
Noncurrent deferred tax assets		809			920
Deferred Tax Liabilities:
Prepaid expense	$	(1	)	$	(1	)
Deferred financing costs		(5	)		(9	)
Software costs		(11	)		(12	)
Intangible assets		(205	)		(166	)
Income from discharge of indebtedness		(31	)		(47	)
Noncurrent deferred tax liabilities		(253	)		(235	)
Deferred tax assets (liabilities), net	$	556		$	685

Reconciliation of the 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 2016, fiscal 2015, and fiscal 2014 is as follows (amounts in millions):

	Fiscal Year Ended
	January 29, 2017		January 31, 2016			February 1, 2015
Unrecognized Tax Benefits beginning of period	$	9	$	187		$	192
Gross increases for tax positions in current period		—		1			1
Gross increases for tax positions in prior period		1		5			—
Gross decreases for tax positions in prior period		—		(2	)		(1	)
Settlements		—		(181	)		(5	)
Lapse of statutes		—		(1	)		—
Unrecognized Tax Benefits end of period	$	10	$	9		$	187