XML 70 R36.htm IDEA: XBRL DOCUMENT

Income Taxes (Tables)

12 Months Ended

Jan. 28, 2023

The following table provides the components of the Company’s provision for income taxes for 2022, 2021 and 2020:


	2022		2021		2020
	(in millions)
Current:
U.S. Federal	$	180	$	249	$	178
U.S. State	48		53		52
Non-U.S.	8		4		10
Total	236		306		240
Deferred:
U.S. Federal	10		24		6
U.S. State	—		10		5
Non-U.S.	5		8		6
Total	15		42		17
Provision for Income Taxes	$	251	$	348	$	257

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 2022, 2021 and 2020:


	2022		2021		2020
Federal Income Tax Rate	21.0	%	21.0	%	21.0	%
State Income Taxes, Net of Federal Income Tax Effect	4.1	%	4.2	%	4.9	%
Impact of Non-U.S. Operations	0.1	%	0.1	%	0.5	%
Share-based Compensation	(0.7	%)	(0.7	%)	0.7	%
Uncertain Tax Positions	(0.7	%)	(0.5	%)	(4.9	%)
Other Items, Net	0.2	%	0.4	%	0.7	%
Effective Tax Rate	24.0	%	24.5	%	22.9	%

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, 2023 and January 29, 2022:


	January 28, 2023						January 29, 2022
	Assets		Liabilities		Total		Assets		Liabilities		Total
	(in millions)
Loss Carryforwards	$	396	$	—	$	396	$	405	$	—	$	405
Leases	275		(261)		14		275		(262)		13
Share-based Compensation	9		—		9		8		—		8
Property and Equipment	—		(139)		(139)		—		(105)		(105)
Trade Names	—		(38)		(38)		—		(38)		(38)
Other Assets	—		(62)		(62)		—		(62)		(62)
Other, Net	67		(14)		53		46		(16)		30
Valuation Allowance	(364)		—		(364)		(363)		—		(363)
Total Deferred Income Taxes	$	383	$	(514)	$	(131)	$	371	$	(483)	$	(112)

The following table summarizes the activity related to the Company’s unrecognized tax benefits for U.S. federal, state and non-U.S. tax jurisdictions for 2022, 2021 and 2020, without interest and penalties:


	2022		2021		2020
	(in millions)
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year	$	147	$	152	$	88
Increases to Unrecognized Tax Benefits for Prior Years	14		5		7
Decreases to Unrecognized Tax Benefits for Prior Years	(12)		(12)		(50)
Increases to Unrecognized Tax Benefits as a Result of Current Year Activity	6		21		113
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities	(2)		(3)		—
Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations	(4)		(16)		(6)
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year	$	149	$	147	$	152