Income Taxes (Tables)

12 Months Ended

Feb. 01, 2014

Income Tax Disclosure [Abstract]

Reconciliation of the federal statutory income tax rate to income tax expense

The following is a reconciliation of the federal statutory income tax rate to income tax expense in fiscal 2014, 2013 (11-month) and 2012 ($ in millions):

	12-Month			11-Month			12-Month
	2014			2013			2012
Federal income tax at the statutory rate	$	380		$	(70	)	$	758
State income taxes, net of federal benefit	25			(2		)	47
(Benefit) expense from foreign operations	(13		)	49			(63		)
Other	6			5			—
Goodwill impairments (non-deductible)	—			287			—
Income tax expense	$	398		$	269		$	742
Effective income tax rate	36.7		%	(135.8		)%	34.3		%

Earning before income tax expense and equity in income (loss) of affiliates

Earnings (loss) from continuing operations before income tax expense and equity in income (loss) of affiliates by jurisdiction was as follows in fiscal 2014, 2013 (11-month) and 2012 ($ in millions):

	12-Month		11-Month			12-Month
	2014		2013			2012
United States	$	687	$	279		$	1,644
Outside the United States	400		(477		)	522
Earnings (loss) from continuing operations before income tax expense and equity in income (loss) of affiliates	$	1,087	$	(198	)	$	2,166

Components of income tax expense

Income tax expense was comprised of the following in fiscal 2014, 2013 (11-month) and 2012 ($ in millions):

	12-Month			11-Month			12-Month
	2014			2013			2012
Current:
Federal	$	306		$	204		$	520
State	45			(1		)	61
Foreign	64			66			72
	415			269			653
Deferred:
Federal	(21		)	26			86
State	1			(3		)	11
Foreign	3			(23		)	(8		)
	(17		)	—			89
Income tax expense	$	398		$	269		$	742

Deferred income tax assets and liabilities

Deferred taxes are the result of differences between the bases of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities were comprised of the following ($ in millions):

	February 1, 2014			February 2, 2013
Accrued property expenses	$	162		$	194
Other accrued expenses	133			119
Deferred revenue	81			153
Compensation and benefits	114			95
Stock-based compensation	110			137
Loss and credit carryforwards	176			266
Other	103			125
Total deferred tax assets	879			1,089
Valuation allowance	(158		)	(228		)
Total deferred tax assets after valuation allowance	721			861
Property and equipment	(286		)	(343		)
Goodwill and intangibles	(75		)	(127		)
Inventory	(60		)	(90		)
Other	(16		)	(22		)
Total deferred tax liabilities	(437		)	(582		)
Net deferred tax assets	$	284		$	279

Schedule of deferred tax assets and liabilities included in consolidated balance sheets

Deferred tax assets and liabilities included in our Consolidated Balance Sheets were as follows ($ in millions):

	February 1, 2014			February 2, 2013
Other current assets	$	261		$	228
Other assets	44			66
Other current liabilities	—			(5		)
Other long-term liabilities	(21		)	(10		)
Net deferred tax assets	$	284		$	279

Reconciliation of changes in unrecognized tax benefits

The following table provides a reconciliation of changes in unrecognized tax benefits for fiscal 2014, 2013 (11-month) and 2012 ($ in millions):

	12-Month			11-Month			12-Month
	2014			2013			2012
Balance at beginning of period	$	383		$	387		$	359
Gross increases related to prior period tax positions	38			10			69
Gross decreases related to prior period tax positions	(67		)	(22		)	(35		)
Gross increases related to current period tax positions	34			37			43
Settlements with taxing authorities	(3		)	(10		)	(20		)
Lapse of statute of limitations	(15		)	(19		)	(29		)
Balance at end of period	$	370		$	383		$	387