Income Taxes (Tables)

12 Months Ended

Jan. 28, 2023

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The following table provides the components of the Company’s Provision (Benefit) for Income Taxes for 2022, 2021 and 2020:

	2022		2021		2020
	(in millions)
Current:
U.S. Federal	$	67	$	129	$	7
U.S. State	22		44		16
Non-U.S.	18		23		7
Total	107		196		30
Deferred:
U.S. Federal	(20)		6		(68)
U.S. State	(4)		(4)		(14)
Non-U.S.	(4)		(1)		18
Total	(28)		1		(64)
Provision (Benefit) for Income Taxes	$	79	$	197	$	(34)

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 2022, 2021 and 2020:

	2022		2021		2020
Federal Income Tax Rate	21.0	%	21.0	%	21.0	%
State Income Taxes, Net of Federal Income Tax Effect	3.9	%	4.3	%	(5.8	%)
Impact of Non-U.S. Operations	(1.6	%)	(0.9	%)	(16.6	%)
Share-based Compensation	(4.6	%)	(1.2	%)	(4.0	%)
Uncertain Tax Positions	0.2	%	(0.2	%)	19.3	%
Change in Valuation Allowance	(0.1	%)	—	%	(2.6	%)
Restructuring of Foreign Investments	—	%	0.2	%	23.3	%
U.S. Permanent Items	0.3	%	0.1	%	(2.8	%)
Other Items, Net	(0.1	%)	—	%	0.1	%
Effective Tax Rate	19.0	%	23.3	%	31.9	%

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 28, 2023 and January 29, 2022. 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 28, 2023						January 29, 2022
	Assets		Liabilities		Total		Assets		Liabilities		Total
	(in millions)
Loss Carryforwards	$	133	$	—	$	133	$	118	$	—	$	118
Leases	354		(309)		45		371		(322)		49
Share-based Compensation	12		—		12		11		—		11
Deferred Revenue	43		—		43		42		—		42
Property and Equipment	—		(58)		(58)		—		(79)		(79)
Trade Name and Other Intangibles	—		(100)		(100)		—		(57)		(57)
Other	54		(11)		43		34		(11)		23
Valuation Allowance	(153)		—		(153)		(148)		—		(148)
Total Deferred Income Taxes	$	443	$	(478)	$	(35)	$	428	$	(469)	$	(41)

Activity Related to Unrecognized Tax Benefits

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 2022, 2021 and 2020, without interest and penalties:

	2022		2021		2020
	(in millions)
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year	$	10	$	126	$	41
Decreases to Unrecognized Tax Benefits Transferred to Former Parent	—		(126)		—
Increases to Unrecognized Tax Benefits as a Result of Current Year Activity	10		10		105
Increases to Unrecognized Tax Benefits for Prior Years, Including Acquisitions	11		—		—
Decreases to Unrecognized Tax Benefits for Prior Years	—		—		(16)
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities	—		—		—
Decreases to Unrecognized Tax Benefits due to Lapse of Statute of Limitations	—		—		(4)
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year	$	31	$	10	$	126