Income Taxes (Tables)

12 Months Ended

Jan. 29, 2012

Components of Earnings from Continuing Operations before Provision for Income Taxes

The components of Earnings from Continuing Operations before Provision for Income Taxes for fiscal 2011, 2010 and 2009 were as follows (amounts in millions):



	Fiscal Year Ended
	January 29, 2012		January 30, 2011		January 31, 2010
United States	$	5,508	$	4,854	$	3,586
Foreign	560		419		396
Total	$	6,068	$	5,273	$	3,982

Provision for Income Taxes

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



	Fiscal Year Ended
	January 29, 2012		January 30, 2011		January 31, 2010
Current:
Federal	$	1,566	$	1,478	$	1,157
State	234		181		184
Foreign	150		151		195
	1,950		1,810		1,536
Deferred:
Federal	199		79		(121		)
State	35		21		(24		)
Foreign	1		25		(29		)
	235		125		(174		)
Total	$	2,185	$	1,935	$	1,362

Reconciliation for Provision for Income Taxes

The reconciliation of the Provision for Income Taxes at the federal statutory rate of 35% to the actual tax expense for the applicable fiscal years was as follows (amounts in millions):



	Fiscal Year Ended
	January 29, 2012			January 30, 2011			January 31, 2010
Income taxes at federal statutory rate	$	2,125		$	1,846		$	1,394
State income taxes, net of federal income tax benefit	175			131			104
Other, net	(115		)	(42		)	(136		)
Total	$	2,185		$	1,935		$	1,362

Tax Effects of Temporary Differences

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:
Property and equipment	$	—		$	64
Accrued self-insurance liabilities	123			115
Other accrued liabilities	202			196
Deferred compensation	324			393
Current Deferred Tax Assets	649			768
Deferred Tax Liabilities:
Accelerated inventory deduction	(93		)	(106		)
Other	(105		)	(114		)
Current Deferred Tax Liabilities	(198		)	(220		)
Current Deferred Tax Assets, net	451			548
Noncurrent:
Deferred Tax Assets:
Accrued self-insurance liabilities	353			345
State income taxes	56			69
Capital loss carryover	101			141
Net operating losses	65			66
Foreign tax credit carryforward	—			30
Impairment of investment	120			120
Other	295			212
Valuation allowance	(19		)	(66		)
Noncurrent Deferred Tax Assets	971			917
Deferred Tax Liabilities:
Property and equipment	(1,192		)	(1,073		)
Goodwill and other intangibles	(94		)	(95		)
Noncurrent Deferred Tax Liabilities	(1,286		)	(1,168		)
Noncurrent Deferred Tax Liabilities, net	(315		)	(251		)
Net Deferred Tax Assets	$	136		$	297

Tax Balance Sheet Accounts

Current deferred tax assets and current deferred tax liabilities are netted by tax jurisdiction and noncurrent deferred tax assets and noncurrent deferred tax liabilities are netted by tax jurisdiction, and are included in the accompanying Consolidated Balance Sheets as follows (amounts in millions):



	January 29, 2012			January 30, 2011
Other Current Assets	$	454		$	553
Other Assets	25			21
Other Accrued Expenses	(3		)	(5		)
Deferred Income Taxes	(340		)	(272		)
Net Deferred Tax Assets	$	136		$	297

Unrecognized Tax Benefits

Reconciliations of the beginning and ending amount of gross unrecognized tax benefits for fiscal 2011, 2010 and 2009 were as follows (amounts in millions):



	January 29, 2012			January 30, 2011			January 31, 2010
Unrecognized tax benefits balance at beginning of fiscal year	$	662		$	659		$	695
Additions based on tax positions related to the current year	37			174			55
Additions for tax positions of prior years	56			84			33
Reductions for tax positions of prior years	(123		)	(181		)	(28		)
Reductions due to settlements	(4		)	(65		)	(94		)
Reductions due to lapse of statute of limitations	(7		)	(9		)	(2		)
Unrecognized tax benefits balance at end of fiscal year	$	621		$	662		$	659

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References+ Details