Income Taxes (Tables)

12 Months Ended

Jan. 28, 2023

Income Taxes [Abstract]

Reconciliation of Federal Statutory Income Tax Rate to Income Tax Expense

	2023			2022			2021
Federal income tax at the statutory rate	$	376		$	635		$	499
State income taxes, net of federal benefit		63			88			72
Change in unrecognized tax benefits		(45)			(88)			20
Expense (benefit) from foreign operations		(4)			(8)			20
Other		(20)			(53)			(32)
Income tax expense	$	370		$	574		$	579
Effective income tax rate		20.7	%		19.0	%		24.3	%

Earning Before Income Tax Expense and Equity in Income of Affiliates

	2023		2022		2021
United States	$	1,533	$	2,677	$	2,203
Foreign		255		347		174
Earnings before income tax expense and equity in income of affiliates	$	1,788	$	3,024	$	2,377

Income Tax Expense (Benefit)

	2023		2022		2021
Current:
Federal	$	213	$	367	$	447
State		64		132		117
Foreign		42		61		51
		319		560		615
Deferred:
Federal		33		22		(25)
State		19		(9)		(16)
Foreign		(1)		1		5
		51		14		(36)
Income tax expense	$	370	$	574	$	579

Deferred Income Tax Assets and Liabilities

Deferred tax assets and liabilities were comprised of the following ($ in millions):

	January 28, 2023		January 29, 2022
Deferred revenue	$	67	$	76
Compensation and benefits		41		156
Stock-based compensation		29		31
Other accrued expenses		47		46
Operating lease liabilities		729		707
Loss and credit carryforwards		161		143
Other		43		45
Total deferred tax assets		1,117		1,204
Valuation allowance		(150)		(128)
Total deferred tax assets after valuation allowance		967		1,076
Inventory		(37)		(24)
Property and equipment		(169)		(270)
Operating lease assets		(698)		(676)
Goodwill and intangibles		(71)		(64)
Other		(39)		(39)
Total deferred tax liabilities		(1,014)		(1,073)
Net deferred tax assets (liabilities)	$	(47)	$	3

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

Balance Sheet Location	January 28, 2023		January 29, 2022
Other assets	$	4	$	25
Long-term liabilities		(51)		(22)
Net deferred tax assets (liabilities)	$	(47)	$	3

Reconciliation of Changes in Unrecognized Tax Benefits

	2023		2022		2021
Balances at beginning of period	$	235	$	327	$	318
Gross increases related to prior period tax positions		28		3		17
Gross decreases related to prior period tax positions(1)		(75)		(103)		(25)
Gross increases related to current period tax positions		21		28		29
Settlements with taxing authorities		-		(7)		(1)
Lapse of statute of limitations		(46)		(13)		(11)
Balances at end of period	$	163	$	235	$	327

(1)Represents multi-jurisdiction, multi-year resolutions of certain discrete tax matters.