Income Taxes (Tables)

12 Months Ended

Jan. 31, 2020

Income Tax Disclosure [Abstract]

Effective Income Tax Rate Reconciliation

The following is a reconciliation of the federal statutory tax rate to the effective tax rate:

	2019		2018		2017
Statutory federal income tax rate 1	21.0	%	21.0	%	33.7	%
State income taxes, net of federal tax benefit	4.1		4.8		2.9
Valuation allowance	1.3		—		(0.6	)
Goodwill impairment	—		5.5		—
Mexico impairment	(1.4	)	1.5		—
Other, net	(1.1	)	(1.0	)	1.2
Effective tax rate	23.9	%	31.8	%	37.2	%

¹ 

The Company utilized a blended rate in 2017 due to the Tax Cuts and Job Act enacted on December 22, 2017.

Components of Income Tax Provision

The components of the income tax provision are as follows:

(In millions)	2019		2018			2017
Current:
Federal	$	935	$	963		$	1,734
State	268		274			252
Total current 1	1,203		1,237			1,986
Deferred:
Federal	121		(102		)	60
State	18		(55		)	(4		)
Total deferred 1	139		(157		)	56
Total income tax provision	$	1,342	$	1,080		$	2,042

¹ 

Amounts applicable to foreign income taxes were insignificant for all periods presented.

Deferred Tax Assets and Liabilities

The tax effects of cumulative temporary differences that gave rise to the deferred tax assets and liabilities were as follows:

(In millions)	January 31, 2020			February 1, 2019
Deferred tax assets:
Self-insurance	$	260		$	252
Share-based payment expense	30			31
Deferred rent	—			58
Operating lease liabilities	1,377			—
Mexico impairment	—			74
Capital loss carryforwards	225			223
Net operating losses	273			239
Other, net	131			119
Total deferred tax assets	2,296			996
Valuation allowance	(561		)	(569		)
Net deferred tax assets	1,735			427
Deferred tax liabilities:
Operating lease assets	(1,198		)	—
Property	(293		)	(76		)
Other, net	(28		)	(57		)
Total deferred tax liabilities	(1,519		)	(133		)
Net deferred tax asset	$	216		$	294

Unrecognized Tax Benefits Reconciliation

A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows:

(In millions)	2019			2018		2017
Unrecognized tax benefits, beginning of year	$	10		$	—	$	6
Additions for tax positions of prior years	2			10		—
Reductions for tax positions of prior years	(3		)	—		(2		)
Settlements	(5		)	—		(1		)
Reductions due to a lapse in applicable statute of limitations	—			—		(3		)
Unrecognized tax benefits, end of year	$	4		$	10	$	—