Income Taxes (Tables)

12 Months Ended

Jan. 29, 2012

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, 2012			January 30, 2011			January 31, 2010
United States	$	(503	)	$	(606	)	$	(678	)
Foreign		19			21			—
Total	$	(484	)	$	(585	)	$	(678	)

Provision (Benefit) for Income Taxes

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

	Fiscal Year Ended
	January 29, 2012			January 30, 2011		January 31, 2010
Current:
Federal	$	—		$	—	$	—
State		3			2		4
Foreign		—			6		—
		3			8		4
Deferred:
Federal		64			12		(182	)
State		6			4		(20	)
Foreign		(5	)		4		—
Foreign realization of tax deductible goodwill from prior acquisitions		11			—		—
		76			20		(202	)
Total	$	79		$	28	$	(198	)

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 2011, fiscal 2010, and fiscal 2009 is as follows (amounts in millions):

	Fiscal Year Ended
	January 29, 2012			January 30, 2011			January 31, 2010
Income taxes at federal statutory rate	$	(169	)	$	(205	)	$	(237	)
State income taxes, net of federal income tax benefit		(24	)		(15	)		(25	)
Non-deductible goodwill impairment		—			—			41
Non-deductible interest		15			13			12
Valuation allowance		259			228			7
Adjustments to tax reserves		12			4			3
Other, net		(14	)		3			1
Total provision (benefit)	$	79		$	28		$	(198	)

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, 2012 and January 30, 2011 were as follows (amounts in millions):

	January 29, 2012			January 30, 2011
Current:
Deferred Tax Assets:
Interest	$	33		$	—
Allowance for doubtful accounts		12			14
Inventory		49			60
Accrued compensation		3			2
Accrued self-insurance liabilities		5			21
Restructuring liabilities		7			31
Other accrued liabilities		27			26
Valuation allowance		(76	)		(51	)
Current deferred tax assets		60			103
Deferred Tax Liabilities:
Prepaid expense	$	(1	)	$	(1	)
Current deferred tax liabilities		(1	)		(1	)
Noncurrent:
Deferred Tax Assets:
Interest	$	212		$	180
Accrued compensation		27			18
Accrued self-insurance liabilities		15			—
Other accrued liabilities		8			8
Deferred revenue		8			8
Restructuring liabilities		32			—
Net operating loss		374			291
Net capital loss carryforward		10			—
Fixed assets		16			22
Other		21			16
Valuation allowance		(415	)		(188	)
Noncurrent deferred tax assets		308			355
Deferred Tax Liabilities:
Software costs	$	(23	)	$	(23	)
Intangible assets		(316	)		(357	)
Income from discharge of indebtedness		(80	)		(76	)
Noncurrent deferred tax liabilities		(419	)		(456	)
Deferred tax assets (liabilities), net	$	(52	)	$	1

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 2011, fiscal 2010, and fiscal 2009 is as follows (amounts in millions):

	Fiscal Year Ended
	January 29, 2012			January 30, 2011			January 31, 2010
Unrecognized Tax Benefits beginning of period	$	192		$	190		$	206
Gross increases for tax positions in current period		—			1			1
Gross increases for tax positions in prior period		6			4			—
Gross decreases for tax positions in prior period		—			—			(16	)
Settlements		(1	)		(3	)		—
Lapse of statutes		(1	)		—			(1	)
Unrecognized Tax Benefits end of period	$	196		$	192		$	190