Income Taxes (Tables)

12 Months Ended

Feb. 01, 2020

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	2019		2018			2017
U.S.		$654		$792			$803
Foreign	28		(59		)	(13		)
Earnings before income taxes		$682		$733			$790

Components Of Income Tax Expense

Income tax expense consists of the following:

Fiscal year	2019		2018			2017
Current income taxes:
Federal		$90		$147			$291
State and local	44		56			51
Total current income tax expense	134		203			342
Deferred income taxes:
Federal	43		(5		)	10
State and local	3		(3		)	1
Foreign	6		(26		)	—
Total deferred income tax expense (benefit)	52		(34		)	11
Total income tax expense		$186		$169			$353

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	2019		2018		2017
Statutory rate	21.0	%	21.0	%	33.7	%
Tax Act impact	—		(0.1	%)	6.1	%
State and local income taxes, net of federal income taxes	5.4	%	5.8	%	4.5	%
Federal credits	(0.9	%)	(1.5	%)	(0.7	%)
Valuation allowance release	—		(1.2	%)	—
Other, net	1.8	%	(0.9	%)	1.1	%
Effective tax rate	27.3	%	23.1	%	44.7	%

Components Of Deferred Tax Assets And Liabilities

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

	February 1, 2020			February 2, 2019
Deferred tax assets:
Lease liabilities		$555			$—
Compensation and benefits accruals	145			139
Allowance for sales returns	47			52
Accrued expenses	29			28
Merchandise inventories	20			20
Gift cards	39			26
Loyalty program	10			12
Net operating losses	33			41
Other	5			5
Total deferred tax assets	883			323
Valuation allowance	(41		)	(43		)
Total net deferred tax assets	842			280
Deferred tax liabilities:
ROU assets	(377		)	—
Land, property and equipment basis and depreciation differences	(312		)	(94		)
Debt exchange premium	(13		)	(13		)
Total deferred tax liabilities	(702		)	(107		)
Net deferred tax assets		$140			$173

Reconciliation Of Unrecognized Tax Benefits

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

Fiscal year	2019			2018			2017
Unrecognized tax benefit at beginning of year		$30			$31			$32
Gross increase to tax positions in prior periods	—			9			2
Gross decrease to tax positions in prior periods	—			(14		)	(7		)
Gross increase to tax positions in current period	3			6			5
Lapses in statute	(1		)	(2		)	(1		)
Settlements	(10		)	—			—
Unrecognized tax benefit at end of year		$22			$30			$31