Income Taxes (Tables)

12 Months Ended

Jan. 29, 2022

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	2021	2020	2019
U.S.	$241	($1,210)	$654
Foreign	5	(18)	28
Earnings (loss) before income taxes	$246	($1,228)	$682

Components Of Income Tax Expense

Income tax expense (benefit) consists of the following:

Fiscal year	2021	2020	2019
Current income taxes:
Federal	$61	($501)	$90
State and local	18	(34)	44
Foreign	—	4	—
Total current income tax expense (benefit)	79	(531)	134
Deferred income taxes:
Federal	(10)	47	43
State and local	(5)	(57)	3
Foreign	4	3	6
Total deferred income tax (benefit) expense	(11)	(7)	52
Total income tax expense (benefit)	$68	($538)	$186

Reconciliation Of Statutory To Effective Tax Rate

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

Fiscal year	2021		2020		2019
Statutory rate	21.0	%	21.0	%	21.0	%
CARES Act impact	(0.9	%)	17.6	%	—
State and local income taxes, net of federal income taxes	3.4	%	6.1	%	5.4	%
Federal credits	(4.0	%)	0.5	%	(0.9	%)
Non-deductible expenses1	2.7	%	(0.3	%)	0.9	%
Stock-based compensation1	2.0	%	(1.0	%)	0.8	%
Valuation allowance1	1.8	%	(0.8	%)	(0.1	%)
Taxes on foreign operations1	1.3	%	0.4	%	1.0	%
Other, net1	0.2	%	0.3	%	(0.8	%)
Effective tax rate	27.5	%	43.8	%	27.3	%

1 We reclassified immaterial prior year amounts that were included in the other, net category to conform with current period presentation.

Components Of Deferred Tax Assets And Liabilities

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

	January 29, 2022	January 30, 2021
Deferred tax assets:
Lease liabilities	$471	$505
Compensation and benefits accruals	133	139
Allowance for sales returns	59	43
Accrued expenses	27	28
Merchandise inventories	35	22
Gift cards	25	10
The Nordy Club loyalty program	5	19
Net operating losses	81	72
Other	9	23
Total deferred tax assets	845	861
Valuation allowance	(28)	(24)
Total deferred tax assets, net of valuation allowance	817	837
Deferred tax liabilities:
ROU assets	(326)	(337)
Land, property and equipment	(327)	(341)
Debt exchange premium	(12)	(12)
Total deferred tax liabilities	(665)	(690)
Net deferred tax assets	$152	$147

Information On Approximate Net Operating Loss Carryforwards

The following sets forth information on approximate net operating loss carryforwards for income tax purposes:

	January 29, 2022	January 30, 2021
State	$1,114	$1,036
Foreign	50	54

Reconciliation Of Unrecognized Tax Benefits

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

Fiscal year	2021	2020	2019
Unrecognized tax benefit at beginning of year	$32	$22	$30
Gross increase to tax positions in prior periods	11	4	—
Gross increase to tax positions in current period	6	6	3
Lapses in statute	—	—	(1)
Settlements	(2)	—	(10)
Unrecognized tax benefit at end of year	$47	$32	$22