Income Taxes Income Taxes (Tables)

12 Months Ended

Feb. 03, 2018

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 2018, 2017 and 2016 ($ in millions):

	2018			2017			2016
Federal income tax at the statutory rate	$	613		$	635		$	458
State income taxes, net of federal benefit	44			38			38
(Benefit) expense from foreign operations	(85		)	(46		)	5
Other	(37		)	(18		)	2
Tax Reform	283			—			—
Income tax expense	$	818		$	609		$	503
Effective income tax rate	45.0		%	33.5		%	38.4		%

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

Earnings from continuing operations before income tax expense by jurisdiction was as follows in fiscal 2018, 2017 and 2016 ($ in millions):

	2018		2017		2016
United States	$	1,480	$	1,507	$	1,310
Outside the United States	337		309		—
Earnings from continuing operations before income tax expense	$	1,817	$	1,816	$	1,310

Components of income tax expense

Income tax expense was comprised of the following in fiscal 2018, 2017 and 2016 ($ in millions):

	2018		2017		2016
Current:
Federal	$	547	$	317	$	347
State	59		37		48
Foreign	50		54		60
	656		408		455
Deferred:
Federal	141		163		65
State	11		21		10
Foreign	10		17		(27		)
	162		201		48
Income tax expense	$	818	$	609	$	503

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 3, 2018			January 28, 2017
Accrued property expenses	$	52		$	91
Other accrued expenses	43			76
Deferred revenue	69			104
Compensation and benefits	32			43
Stock-based compensation	32			64
Goodwill and intangibles	102			210
Loss and credit carryforwards	120			123
Other	38			59
Total deferred tax assets	488			770
Valuation allowance	(99		)	(94		)
Total deferred tax assets after valuation allowance	389			676
Property and equipment	(163		)	(240		)
Inventory	(47		)	(97		)
Other	(20		)	(22		)
Total deferred tax liabilities	(230		)	(359		)
Net deferred tax assets	$	159		$	317

Reconciliation of changes in unrecognized tax benefits

The following table provides a reconciliation of changes in unrecognized tax benefits for fiscal 2018, 2017 and 2016 ($ in millions):

	2018			2017			2016
Balance at beginning of period	$	374		$	469		$	410
Gross increases related to prior period tax positions	19			11			30
Gross decreases related to prior period tax positions	(126		)	(144		)	(13		)
Gross increases related to current period tax positions	29			55			59
Settlements with taxing authorities	(12		)	(12		)	(9		)
Lapse of statute of limitations	(5		)	(5		)	(8		)
Balance at end of period	$	279		$	374		$	469