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Income Taxes (Tables)

12 Months Ended

Jan. 29, 2022

The following table provides the components of the Company’s provision for income taxes for 2021, 2020 and 2019:


	2021		2020		2019
	(in millions)
Current:
U.S. Federal	$	129	$	7	$	15
U.S. State	44		16		(6)
Non-U.S.	23		7		19
Total	196		30		28
Deferred:
U.S. Federal	6		(68)		(10)
U.S. State	(4)		(14)		(1)
Non-U.S.	(1)		18		(19)
Total	1		(64)		(30)
Provision (Benefit) for Income Taxes	$	197	$	(34)	$	(2)

Reconciliation of the Statutory Federal Income Tax Rate and the Effective Tax Rate

The following table provides the reconciliation between the statutory federal income tax rate and the effective tax rate for 2021, 2020 and 2019:


	2021		2020		2019
Federal Income Tax Rate	21.0	%	21.0	%	21.0	%
State Income Taxes, Net of Federal Income Tax Effect	4.3	%	(5.8	%)	(0.6	%)
Impact of Non-U.S. Operations	(0.9	%)	(16.6	%)	(1.9	%)
Share-Based Compensation	(1.2)	%	(4.0	%)	(0.9	%)
Restructuring of Foreign Investments	0.2	%	23.3	%	—	%
Uncertain Tax Positions	(0.2	%)	19.3	%	2.4	%
U.S. Permanent Items	0.1	%	(2.8	%)	(0.1	%)
Change in Valuation Allowance	—	%	(2.6	%)	(3.6	%)
Impairment of Goodwill	—	%	—	%	(16.3	%)
Other Items, Net	—	%	0.1	%	0.2	%
Effective Tax Rate	23.3	%	31.9	%	0.2	%

Effect of Temporary Differences that Cause Deferred Income Taxes

The following table provides the effect of temporary differences that cause deferred income taxes as of January 29, 2022 and January 30, 2021. Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carryforwards at the end of the respective year.


	January 29, 2022						January 30, 2021
	Assets		Liabilities		Total		Assets		Liabilities		Total
	(in millions)
Loss Carryforwards	$	118	$	—	$	118	$	346	$	—	$	346
Leases	371		(322)		49		426		(365)		61
Share-based Compensation	11		—		11		29		—		29
Deferred Revenue	42		—		42		7		—		7
Property and Equipment	—		(79)		(79)		—		(106)		(106)
Trade Name and Other Intangibles	—		(57)		(57)		—		(64)		(64)
Other, Net	34		(11)		23		72		(28)		44
Valuation Allowance	(148)		—		(148)		(316)		—		(316)
Total Deferred Income Taxes	$	428	$	(469)	$	(41)	$	564	$	(563)	$	1

The following table summarizes the activity related to the Company’s unrecognized tax benefits for U.S. federal, state & non-U.S. tax jurisdictions for 2021, 2020 and 2019, without interest and penalties:


	2021		2020		2019
	(in millions)
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year	$	126	$	41	$	78
Decreases to Unrecognized Tax Benefits Transferred to Former Parent	(126)		—		—
Increases to Unrecognized Tax Benefits for Prior Years	—		—		2
Decreases to Unrecognized Tax Benefits for Prior Years	—		(16)		(20)
Increases to Unrecognized Tax Benefits as a Result of Current Year Activity	10		105		1
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities	—		—		(15)
Decreases to Unrecognized Tax Benefits due to Lapse of Statute of Limitations	—		(4)		(5)
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year	$	10	$	126	$	41