Income Taxes (Tables)

12 Months Ended

Feb. 03, 2024

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The following table provides the components of the Company’s Provision for Income Taxes for 2023, 2022 and 2021:

	2023		2022		2021
	(in millions)
Current:
U.S. Federal	$	19	$	67	$	129
U.S. State	10		22		44
Non-U.S.	18		18		23
Total	47		107		196
Deferred:
U.S. Federal	(14)		(20)		6
U.S. State	(2)		(4)		(4)
Non-U.S.	—		(4)		(1)
Total	(16)		(28)		1
Provision for Income Taxes	$	31	$	79	$	197

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 2023, 2022 and 2021:

	2023		2022		2021
Federal Income Tax Rate	21.0	%	21.0	%	21.0	%
State Income Taxes, Net of Federal Income Tax Effect	3.1	%	3.9	%	4.3	%
Foreign Rate Differential	(9.1	%)	(3.4	%)	(1.8	%)
Impact of Non-U.S. Operations	1.4	%	1.8	%	0.9	%
Share-based Compensation	1.1	%	(4.6	%)	(1.2	%)
Uncertain Tax Positions	0.7	%	0.2	%	(0.2	%)
Change in Valuation Allowance	(0.9	%)	(0.1	%)	—	%
U.S. Permanent Items	1.7	%	0.3	%	0.1	%
Adore Me Contingent Compensation	3.3	%	—	%	—	%
Restructuring of Foreign Investments	—	%	—	%	0.2	%
Other Items, Net	(0.9	%)	(0.1	%)	—	%
Effective Tax Rate	21.4	%	19.0	%	23.3	%

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 February 3, 2024 and January 28, 2023. 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.

	February 3, 2024						January 28, 2023
	Assets		Liabilities		Total		Assets		Liabilities		Total
	(in millions)
Loss Carryforwards	$	130	$	—	$	130	$	133	$	—	$	133
Leases	359		(319)		40		354		(309)		45
Deferred Revenue	51		—		51		43		—		43
Accrued Expenses	35		—		35		39		—		39
Share-based Compensation	12		—		12		12		—		12
Trade Name and Other Intangibles	—		(97)		(97)		—		(100)		(100)
Property and Equipment	—		(57)		(57)		—		(58)		(58)
Other	26		(11)		15		15		(11)		4
Valuation Allowance	(146)		—		(146)		(153)		—		(153)
Total Deferred Income Taxes	$	467	$	(484)	$	(17)	$	443	$	(478)	$	(35)

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 and non-U.S. tax jurisdictions for 2023, 2022 and 2021, without interest and penalties:

	2023		2022		2021
	(in millions)
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year	$	31	$	10	$	126
Decreases to Unrecognized Tax Benefits Transferred to Former Parent	—		—		(126)
Increases to Unrecognized Tax Benefits as a Result of Current Year Activity	9		10		10
Increases to Unrecognized Tax Benefits for Prior Years, Including Acquisitions	13		11		—
Decreases to Unrecognized Tax Benefits for Prior Years	(15)		—		—
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year	$	38	$	31	$	10