Income Taxes (Tables)

12 Months Ended

Jan. 28, 2017

The following table provides the components of the Company’s provision for income taxes for 2016, 2015 and 2014:



	2016		2015			2014
	(in millions)
Current:
U.S. Federal	$	345	$	553		$	454
U.S. State	62		96			69
Non-U.S.	21		21			21
Total	428		670			544
Deferred:
U.S. Federal	99		17			46
U.S. State	8		6			3
Non-U.S.	3		(12		)	1
Total	110		11			50
Provision for Income Taxes	$	538	$	681		$	594

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 2016, 2015 and 2014:



	2016		2015		2014
Federal Income Tax Rate	35.0	%	35.0	%	35.0	%
State Income Taxes, Net of Federal Income Tax Effect	3.4	%	3.4	%	3.6	%
Impact of Non-U.S. Operations	(1.2	)%	(1.7	)%	(1.3	)%
Foreign Portion of the Divestiture of Third-party Apparel Sourcing Business	—	%	(0.9	)%	—	%
Resolution of Certain Tax Matters	(4.0	)%	—	%	(0.3	)%
Other Items, Net	(1.5	)%	(0.6	)%	(0.7	)%
Effective Tax Rate	31.7	%	35.2	%	36.3	%

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 January 28, 2017 and January 30, 2016. 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.



	January 28, 2017									January 30, 2016
	Assets			Liabilities			Total			Assets			Liabilities			Total
	(in millions)
Leases	$	68		$	—		$	68		$	54		$	—		$	54
Non-qualified Retirement Plan	96			—			96			103			—			103
Property and Equipment	—			(413		)	(413		)	—			(330		)	(330		)
Goodwill	—			(15		)	(15		)	—			(15		)	(15		)
Trade Names and Other Intangibles	—			(141		)	(141		)	—			(141		)	(141		)
State Net Operating Loss Carryforwards	15			—			15			17			—			17
Non-U.S. Operating Loss Carryforwards	155			—			155			157			—			157
Valuation Allowance	(174		)	—			(174		)	(164		)	—			(164		)
Other, Net	76			—			76			92			—			92
Total Deferred Income Taxes	$	236		$	(569	)	$	(333	)	$	259		$	(486	)	$	(227	)

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 2016, 2015 and 2014, without interest and penalties:



	2016			2015			2014
	(in millions)
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year	$	248		$	193		$	167
Increases in Unrecognized Tax Benefits for Prior Years	3			8			16
Decreases in Unrecognized Tax Benefits for Prior Years	(73		)	(3		)	(14		)
Increases in Unrecognized Tax Benefits as a Result of Current Year Activity	18			54			36
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities	(98		)	—			(5		)
Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations	(8		)	(4		)	(7		)
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year	$	90		$	248		$	193