INCOME TAXES	3 Months Ended
Apr. 30, 2017
INCOME TAXES
INCOME TAXES	NOTE 5 — INCOME TAXES For the three months ended April 30, 2017, the Company’s combined federal, state, and foreign effective tax rate for continuing operations was an expense of 30.3%. The effective rate for continuing operations for the three months ended May 1, 2016 was a benefit of 36.4%. 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 audits. For the three months ended April 30, 2017, the application of ASU No. 2016-09 resulted in discrete tax benefits of $11 million from the exercise and vesting of stock based awards, which lowered the effective tax rate by 900 basis points. For additional information on the adoption of ASU 2016-09, see “Note 12, Recent Accounting Pronouncements.” As of January 29, 2017, the Company’s unrecognized tax benefits in accordance with the income taxes principles of GAAP (ASC 740, “Income Taxes”) were $10 million. As of April 30, 2017, the Company’s unrecognized tax benefits remained unchanged. The Company’s ending net accrual for interest and penalties related to unrecognized tax benefits as of January 29, 2017 was zero and remained unchanged as of April 30, 2017. As of January 29, 2017, the Company’s valuation allowance on its U.S. deferred tax assets was approximately $5 million and remained unchanged as of April 30, 2017. Each reporting period we assess available positive and negative evidence and estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets.

INCOME TAXES

3 Months Ended

Apr. 30, 2017

NOTE 5 — INCOME TAXES

For the three months ended April 30, 2017, the Company’s combined federal, state, and foreign effective tax rate for continuing operations was an expense of 30.3%. The effective rate for continuing operations for the three months ended May 1, 2016 was a benefit of 36.4%.

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 audits. For the three months ended April 30, 2017, the application of ASU No. 2016-09 resulted in discrete tax benefits of $11 million from the exercise and vesting of stock based awards, which lowered the effective tax rate by 900 basis points. For additional information on the adoption of ASU 2016-09, see “Note 12, Recent Accounting Pronouncements.”

As of January 29, 2017, the Company’s unrecognized tax benefits in accordance with the income taxes principles of GAAP (ASC 740, “Income Taxes”) were $10 million. As of April 30, 2017, the Company’s unrecognized tax benefits remained unchanged. The Company’s ending net accrual for interest and penalties related to unrecognized tax benefits as of January 29, 2017 was zero and remained unchanged as of April 30, 2017. As of January 29, 2017, the Company’s valuation allowance on its U.S. deferred tax assets was approximately $5 million and remained unchanged as of April 30, 2017. Each reporting period we assess available positive and negative evidence and estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets.