Income Taxes (Tables)

12 Months Ended

Feb. 01, 2020

Income Taxes [Abstract]

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

	2020			2019			2018
Federal income tax at the statutory rate	$	419		$	396		$	613
State income taxes, net of federal benefit		62			58			44
Benefit from foreign operations		(2)			-			(85)
Other		(27)			(7)			(37)
Tax Act		-			(23)			283
Income tax expense	$	452		$	424		$	818
Effective income tax rate		22.7	%		22.4	%		45.0	%

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

	2020		2019		2018
United States	$	1,704	$	1,574	$	1,480
Foreign		289		314		337
Earnings from continuing operations before income tax expense	$	1,993	$	1,888	$	1,817

Components of income tax expense

	2020		2019		2018
Current:
Federal	$	261	$	275	$	547
State		73		75		59
Foreign		48		64		50
		382		414		656
Deferred:
Federal		56		4		141
State		8		-		11
Foreign		6		6		10
		70		10		162
Income tax expense	$	452	$	424	$	818

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, 2020		February 2, 2019
Deferred revenue	$	57	$	52
Compensation and benefits		57		74
Stock-based compensation		34		35
Other accrued expenses		37		40
Accrued property expenses		13		46
Operating lease liabilities		734		-
Loss and credit carryforwards		127		134
Other		46		38
Total deferred tax assets		1,105		419
Valuation allowance		(96)		(91)
Total deferred tax assets after valuation allowance		1,009		328
Inventory		(40)		(61)
Property and equipment		(237)		(184)
Operating lease assets		(692)		-
Goodwill and intangibles		(45)		(12)
Other		(15)		(16)
Total deferred tax liabilities		(1,029)		(273)
Net deferred tax assets (liabilities)	$	(20)	$	55

Deferred taxes were presented as follows ($ in millions):

Balance Sheet Location	February 1, 2020		February 2, 2019
Other assets	$	9	$	55
Long-term liabilities		(29)		-
Net deferred tax assets (liabilities)	$	(20)	$	55

Reconciliation of changes in unrecognized tax benefits

	2020		2019		2018
Balances at beginning of period	$	300	$	279	$	374
Gross increases related to prior period tax positions		1		4		19
Gross decreases related to prior period tax positions		(5)		(12)		(126)
Gross increases related to current period tax positions		34		36		29
Settlements with taxing authorities		-		(1)		(12)
Lapse of statute of limitations		(12)		(6)		(5)
Balances at end of period	$	318	$	300	$	279