Income Taxes (Tables)

12 Months Ended

Feb. 03, 2024

Income Taxes [Abstract]

Reconciliation of Federal Statutory Income Tax Rate to Income Tax Expense

	2024			2023			2022
Federal income tax at the statutory rate	$	340		$	376		$	635
State income taxes, net of federal benefit		57			63			88
Change in unrecognized tax benefits		(6)			(45)			(88)
Benefit from foreign operations		(8)			(4)			(8)
Other		(2)			(20)			(53)
Income tax expense	$	381		$	370		$	574
Effective income tax rate		23.5	%		20.7	%		19.0	%

Earning Before Income Tax Expense and Equity in Income of Affiliates

	2024		2023		2022
United States	$	1,389	$	1,533	$	2,677
Foreign		232		255		347
Earnings before income tax expense and equity in income of affiliates	$	1,621	$	1,788	$	3,024

Income Tax Expense (Benefit)

	2024		2023		2022
Current:
Federal	$	452	$	213	$	367
State		104		64		132
Foreign		39		42		61
		595		319		560
Deferred:
Federal		(177)		33		22
State		(37)		19		(9)
Foreign		-		(1)		1
		(214)		51		14
Income tax expense	$	381	$	370	$	574

Deferred Income Tax Assets and Liabilities

	February 3, 2024		January 28, 2023
Deferred revenue	$	127	$	67
Compensation and benefits		91		41
Stock-based compensation		32		29
Other accrued expenses		45		47
Operating lease liabilities		730		729
Loss and credit carryforwards		173		161
Other		42		43
Total deferred tax assets		1,240		1,117
Valuation allowance		(175)		(150)
Total deferred tax assets after valuation allowance		1,065		967
Inventory		(45)		(37)
Property and equipment		(49)		(169)
Operating lease assets		(701)		(698)
Goodwill and intangibles		(81)		(71)
Other		(22)		(39)
Total deferred tax liabilities		(898)		(1,014)
Net deferred tax assets (liabilities)	$	167	$	(47)

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

Balance Sheet Location	February 3, 2024		January 28, 2023
Other assets	$	167	$	4
Long-term liabilities		-		(51)
Net deferred tax assets (liabilities)	$	167	$	(47)

Reconciliation of Changes in Unrecognized Tax Benefits

(1)

	2024		2023		2022
Balances at beginning of period	$	163	$	235	$	327
Gross increases related to prior period tax positions		10		28		3
Gross decreases related to prior period tax positions(1)		(11)		(75)		(103)
Gross increases related to current period tax positions		20		21		28
Settlements with taxing authorities		(3)		-		(7)
Lapse of statute of limitations		(39)		(46)		(13)
Balances at end of period	$	140	$	163	$	235

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