Income Taxes (Tables)

12 Months Ended

Feb. 01, 2014

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The following table provides the components of the Company’s provision for income taxes for 2013, 2012 and 2011:

	2013		2012			2011
	(in millions)
Current:
U.S. Federal	$	407	$	432		$	357
U.S. State	90		67			46
Non-U.S.	28		18			11
Total	525		517			414
Deferred:
U.S. Federal	11		14			6
U.S. State	3		4			1
Non-U.S.	4		(7		)	(44		)
Total	18		11			(37		)
Provision for Income Taxes	$	543	$	528		$	377

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 2013, 2012 and 2011:

	2013		2012		2011
Federal Income Tax Rate	35.0	%	35.0	%	35.0	%
State Income Taxes, Net of Federal Income Tax Effect	3.8	%	4.0	%	4.0	%
Impact of Non-U.S. Operations	(1.4	)%	1.1	%	(2.2	)%
Express Charitable Contribution	—	%	—	%	(5.0	)%
Non-deductible Impairment of Goodwill and Other Intangible Assets	—	%	2.4	%	4.3	%
Non-U.S. Portion of the Divestiture of Third-party Apparel Sourcing Business	—	%	—	%	(3.0	)%
Other Items, Net	0.1	%	(1.3	)%	(2.4	)%
Effective Tax Rate	37.5	%	41.2	%	30.7	%

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 1, 2014 and February 2, 2013. 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 1, 2014									February 2, 2013
	Assets			Liabilities			Total			Assets			Liabilities			Total
	(in millions)
Leases	$	46		$	—		$	46		$	43		$	—		$	43
Non-qualified Retirement Plan	94			—			94			86			—			86
Property and Equipment	—			(219		)	(219		)	—			(190		)	(190		)
Goodwill	—			(15		)	(15		)	—			(15		)	(15		)
Trade Names and Other Intangibles	—			(139		)	(139		)	—			(138		)	(138		)
State Net Operating Loss Carryforwards	21			—			21			23			—			23
Non-U.S. Operating Loss Carryforwards	161			—			161			151			—			151
Valuation Allowance	(183		)	—			(183		)	(171		)	—			(171		)
Other, Net	71			—			71			67			—			67
Total Deferred Income Taxes	$	210		$	(373	)	$	(163	)	$	199		$	(343	)	$	(144	)

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 2013, 2012 and 2011, without interest and penalties:

	2013			2012			2011
	(in millions)
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year	$	185		$	146		$	147
Increases in Unrecognized Tax Benefits for Prior Years	39			13			4
Decreases in Unrecognized Tax Benefits for Prior Years	(54		)	(19		)	(33		)
Increases in Unrecognized Tax Benefits as a Result of Current Year Activity	37			52			45
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities	(34		)	(1		)	(9		)
Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations	(6		)	(6		)	(8		)
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year	$	167		$	185		$	146