INCOME TAXES	9 Months Ended
Oct. 30, 2016
INCOME TAXES
INCOME TAXES	NOTE 5 — INCOME TAXES For the nine months ended October 30, 2016, the Company’s combined federal, state, and foreign effective tax rate is an expense of 39.9%. The effective rate for continuing operations for the nine months ended November 1, 2015 was a benefit of 82.0%, mainly driven by a decrease of $189 million in the Company’s unrecognized U.S. federal and state tax benefits related to the Joint Committee on Taxation’s February 19, 2015 approval and finalization of the Company’s tentative settlement with the Internal Revenue Service’s Office of Appeals in conjunction with a Revenue Agent’s Report issued in January 2013. For additional information, please refer to the Notes to Consolidated Financial Statements of our Form 10-K for the fiscal year ended January 31, 2016. The Company’s effective tax rate will vary based on a variety of factors, including overall profitability, the geographical mix of income before taxes and the related tax rates in the jurisdictions where it operates, restructuring and other one-time charges, as well as discrete events, such as settlements of future audits. As of January 31, 2016, the Company’s unrecognized tax benefits in accordance with the income taxes principles of GAAP (ASC 740, “Income Taxes”) were $9 million. As of October 30, 2016, the Company’s unrecognized tax benefits increased by $1 million to $10 million. The Company’s ending net accrual for interest and penalties related to unrecognized tax benefits as of January 31, 2016 was zero and remained unchanged as of October 30, 2016. At October 30, 2016 and January 31, 2016, the Company’s valuation allowance on its U.S. deferred tax assets was approximately $4 million and $6 million, respectively. Each reporting period management assesses available positive and negative evidence and estimates if sufficient future taxable income will be generated to utilize the existing deferred tax assets.

INCOME TAXES

9 Months Ended

Oct. 30, 2016

NOTE 5 — INCOME TAXES

For the nine months ended October 30, 2016, the Company’s combined federal, state, and foreign effective tax rate is an expense of 39.9%. The effective rate for continuing operations for the nine months ended November 1, 2015 was a benefit of 82.0%, mainly driven by a decrease of $189 million in the Company’s unrecognized U.S. federal and state tax benefits related to the Joint Committee on Taxation’s February 19, 2015 approval and finalization of the Company’s tentative settlement with the Internal Revenue Service’s Office of Appeals in conjunction with a Revenue Agent’s Report issued in January 2013. For additional information, please refer to the Notes to Consolidated Financial Statements of our Form 10-K for the fiscal year ended January 31, 2016.

The Company’s effective tax rate will vary based on a variety of factors, including overall profitability, the geographical mix of income before taxes and the related tax rates in the jurisdictions where it operates, restructuring and other one-time charges, as well as discrete events, such as settlements of future audits.

As of January 31, 2016, the Company’s unrecognized tax benefits in accordance with the income taxes principles of GAAP (ASC 740, “Income Taxes”) were $9 million. As of October 30, 2016, the Company’s unrecognized tax benefits increased by $1 million to $10 million. The Company’s ending net accrual for interest and penalties related to unrecognized tax benefits as of January 31, 2016 was zero and remained unchanged as of October 30, 2016. At October 30, 2016 and January 31, 2016, the Company’s valuation allowance on its U.S. deferred tax assets was approximately $4 million and $6 million, respectively. Each reporting period management assesses available positive and negative evidence and estimates if sufficient future taxable income will be generated to utilize the existing deferred tax assets.