Income Taxes (Tables)

12 Months Ended

Feb. 03, 2018

Income Tax Disclosure [Abstract]

U.S. And Foreign Components Of Earnings Before Income Taxes

U.S. and foreign components of earnings before income taxes were as follows:

Fiscal year	2017			2016			2015
U.S.		$803			$687			$996
Foreign	(13		)	(3		)	(20		)
Earnings before income taxes		$790			$684			$976

Components Of Income Tax Expense

Income tax expense consists of the following:

Fiscal year	2017		2016			2015
Current income taxes:
Federal		$291		$290			$202
State and local	51		54			32
Foreign	—		1			—
Total current income tax expense	342		345			234
Deferred income taxes:
Federal	10		(17		)	123
State and local	1		(5		)	23
Foreign	—		7			(4		)
Total deferred income tax (benefit) expense	11		(15		)	142
Total income tax expense		$353		$330			$376

Reconciliation Of Statutory To Effective Tax Rate

A reconciliation of the statutory federal income tax rate to the effective tax rate on earnings before income taxes is as follows:

Fiscal year	2017		2016		2015
Statutory rate1	33.7	%	35.0	%	35.0	%
Tax Act impact	6.1	%	—		—
Goodwill impairment	—		10.1	%	—
State and local income taxes, net of federal income taxes	4.5	%	5.1	%	4.1	%
Non-deductible acquisition-related items	0.3	%	0.6	%	0.4	%
Federal credits	(0.7	%)	(0.6	%)	(0.6	%)
Other, net	0.8	%	(2.0	%)	(0.3	%)
Effective tax rate	44.7	%	48.2	%	38.6	%

Components Of Deferred Tax Assets And Liabilities

The components of deferred tax assets and liabilities are as follows:

	February 3, 2018			January 28, 2017
Compensation and benefits accruals		$148			$209
Allowance for sales returns	50			76
Credit card receivable transaction	8			13
Accrued expenses	27			39
Merchandise inventories	12			43
Gift cards	27			33
Federal benefit of state taxes	16			18
Net operating losses	22			12
(Loss) Gain on sale of interest rate swap	(1		)	4
Other	3			18
Total deferred tax assets	312			465
Valuation allowance	(51		)	(37		)
Total net deferred tax assets	261			428
Land, property and equipment basis and depreciation differences	(109		)	(258		)
Debt exchange premium	(14		)	(23		)
Total deferred tax liabilities	(123		)	(281		)
Net deferred tax assets		$138			$147

Reconciliation Of Unrecognized Tax Benefits

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

Fiscal year	2017			2016			2015
Unrecognized tax benefit at beginning of year		$32			$19			$15
Gross increase to tax positions in prior periods	2			16			6
Gross decrease to tax positions in prior periods	(7		)	—			(2		)
Gross increase to tax positions in current period	5			2			2
Lapses in statute	(1		)	(5		)	(2		)
Unrecognized tax benefit at end of year		$31			$32			$19