Income Taxes Income Taxes (Tables)

12 Months Ended

Feb. 02, 2019

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 2019, fiscal 2018 and fiscal 2017 ($ in millions):



	2019			2018			2017
Federal income tax at the statutory rate	$	396		$	613		$	635
State income taxes, net of federal benefit	58			44			38
Benefit from foreign operations	—			(85		)	(46		)
Other	(7		)	(37		)	(18		)
Tax Act	(23		)	283			—
Income tax expense	$	424		$	818		$	609
Effective income tax rate	22.4		%	45.0		%	33.5		%

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

Earnings from continuing operations before income tax expense by jurisdiction were as follows in fiscal 2019, fiscal 2018 and fiscal 2017 ($ in millions):



	2019		2018		2017
United States	$	1,574	$	1,480	$	1,507
Foreign	314		337		309
Earnings from continuing operations before income tax expense	$	1,888	$	1,817	$	1,816

Components of income tax expense

Income tax expense was comprised of the following in fiscal 2019, fiscal 2018 and fiscal 2017 ($ in millions):



	2019		2018		2017
Current:
Federal	$	275	$	547	$	317
State	75		59		37
Foreign	64		50		54
	414		656		408
Deferred:
Federal	4		141		163
State	—		11		21
Foreign	6		10		17
	10		162		201
Income tax expense	$	424	$	818	$	609

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 2, 2019			February 3, 2018
Accrued property expenses	$	46		$	52
Other accrued expenses	40			43
Deferred revenue	52			69
Compensation and benefits	74			32
Stock-based compensation	35			32
Goodwill and intangibles	—			102
Loss and credit carryforwards	134			120
Other	38			38
Total deferred tax assets	419			488
Valuation allowance	(91		)	(99		)
Total deferred tax assets after valuation allowance	328			389
Property and equipment	(184		)	(163		)
Goodwill and intangibles	(12		)	—
Inventory	(61		)	(47		)
Other	(16		)	(20		)
Total deferred tax liabilities	(273		)	(230		)
Net deferred tax assets	$	55		$	159

Reconciliation of changes in unrecognized tax benefits

The following table provides a reconciliation of changes in unrecognized tax benefits for fiscal 2019, fiscal 2018 and fiscal 2017 ($ in millions):



	2019			2018			2017
Balance at beginning of period	$	279		$	374		$	469
Gross increases related to prior period tax positions	4			19			11
Gross decreases related to prior period tax positions	(12		)	(126		)	(144		)
Gross increases related to current period tax positions	36			29			55
Settlements with taxing authorities	(1		)	(12		)	(12		)
Lapse of statute of limitations	(6		)	(5		)	(5		)
Balance at end of period	$	300		$	279		$	374