INCOME TAXES (Tables)

12 Months Ended

Feb. 02, 2025

Income Tax Disclosure [Abstract]

Components of Earnings Before Provision for Income Taxes

The following table presents our earnings before the provision for income taxes:

in millions	Fiscal		Fiscal		Fiscal
	2024		2023		2022
United States	$	18,119	$	18,681	$	20,990
Foreign	1,287		1,243		1,487
Total	$	19,406	$	19,924	$	22,477

Components of Provision for Income Taxes

The following table presents our provision for income taxes:

in millions	Fiscal		Fiscal		Fiscal
	2024		2023		2022
Current:
Federal	$	3,417	$	3,764	$	3,918
State	836		882		880
Foreign	386		365		436
Total current	4,639		5,011		5,234
Deferred:
Federal	(67)		(228)		102
State	25		12		61
Foreign	3		(14)		(25)
Total deferred	(39)		(230)		138
Provision for income taxes	$	4,600	$	4,781	$	5,372

Reconciliation of Provision for Income Taxes

The following table presents our combined federal, state, and foreign effective tax rates:

	Fiscal		Fiscal		Fiscal
	2024		2023		2022
Combined federal, state, and foreign effective tax rates	23.7	%	24.0	%	23.9	%

The following table presents the reconciliation of our provision for income taxes at the federal statutory rate of 21% to the actual tax expense:

in millions	Fiscal		Fiscal		Fiscal
	2024		2023		2022
Income taxes at federal statutory rate	$	4,075	$	4,184	$	4,720
State income taxes, net of federal income tax benefit	680		706		743
Other, net	(155)		(109)		(91)
Total	$	4,600	$	4,781	$	5,372

Tax Effects of Temporary Differences

The following table presents the tax effects of temporary differences that give rise to significant portions of our deferred tax assets and deferred tax liabilities:

in millions	February 2, 2025		January 28, 2024
Assets:
Deferred compensation	$	230	$	237
Accrued self-insurance liabilities	271		258
State income taxes	133		209
Merchandise inventories	—		110
Non-deductible reserves	475		474
Net operating losses	92		99
Lease liabilities	2,255		2,034
Deferred revenue	259		191
Other	77		46
Total deferred tax assets	3,792		3,658
Valuation allowance	(4)		(67)
Total deferred tax assets, net of valuation allowance	3,788		3,591
Liabilities:
Merchandise inventories	(12)		—
Property and equipment	(854)		(988)
Goodwill and other intangibles (1)	(2,200)		(1,000)
Lease right-of-use assets	(2,178)		(1,956)
Tax on unremitted earnings	(54)		(53)
Other	(183)		(144)
Total deferred tax liabilities	(5,481)		(4,141)
Net deferred tax liabilities	$	(1,693)	$	(550)

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(1)    Increase year over year primarily results from the difference in book and tax basis related to identifiable intangible assets from the SRS acquisition (See Note 13).

Schedule of Tax Balance Sheet Accounts

The following table presents our noncurrent deferred tax assets and noncurrent deferred tax liabilities, netted by tax jurisdiction, as presented on the consolidated balance sheets:

in millions	Consolidated Balance Sheet Classification	February 2, 2025		January 28, 2024
Deferred tax assets	Other assets	$	269	$	313
Deferred tax liabilities	Deferred income taxes	(1,962)		(863)
Net deferred tax liabilities		$	(1,693)	$	(550)

Schedule of Unrecognized Tax Benefits

The following table reconciles the beginning and ending amount of our gross unrecognized tax benefits:

in millions	Fiscal		Fiscal		Fiscal
	2024		2023		2022
Unrecognized tax benefits balance at beginning of fiscal year	$	689	$	643	$	570
Additions based on tax positions related to the current year	71		74		75
Additions for tax positions of prior years	3		13		22
Reductions for tax positions of prior years	(42)		(14)		(7)
Reductions due to settlements	(51)		—		(1)
Reductions due to lapse of statute of limitations	(43)		(27)		(16)
Unrecognized tax benefits balance at end of fiscal year	$	627	$	689	$	643