Income Taxes (Tables)

12 Months Ended

Jan. 30, 2016

Schedule of deferred tax assets and liabilities

The approximate tax effect of the significant components of Staples' deferred tax assets and liabilities are as follows (in millions):



	January 30, 2016			January 31, 2015
Deferred income tax assets:
Deferred rent	$	22		$	28
Foreign tax credit carryforwards	—			3
Net operating loss carryforwards	270			288
Capital loss carryforwards	24			27
Employee benefits	106			159
Bad debts	18			20
Inventory	15			25
Insurance	34			37
Deferred revenue	11			14
Depreciation	7			50
Financing	57			26
Accrued expenses	19			15
Store closures	35			35
Acquisition Costs	20			—
Other—net	12			14
Total deferred income tax assets	650			741
Total valuation allowance	(333		)	(350		)
Net deferred income tax assets	$	317		$	391
Deferred income tax liabilities:
Intangibles	$	(124	)	$	(142	)
Other—net	(5		)	(3		)
Total deferred income tax liabilities	(129		)	(145		)
Net deferred income tax assets	$	188		$	246

Schedule of income from continuing operations before income taxes

For financial reporting purposes, income from continuing operations before income taxes includes the following components (in millions):



	2015		2014			2013
Pretax income (loss):
United States	$	463	$	545		$	881
Foreign	29		(277		)	182
Income from continuing operations before income taxes	$	492	$	268		$	1,063

Components of income tax expense (benefit)

The provision (benefit) for income taxes related to continuing operations consists of the following (in millions):



	2015		2014			2013
Current tax expense:
Federal	$	54	$	117		$	193
State	3		36			37
Foreign	28		29			21
Deferred tax expense (benefit):
Federal	17		(52		)	73
State	1		(9		)	6
Foreign	10		12			26
Total income tax expense	$	113	$	133		$	356

Reconciliation of effective tax rate

A reconciliation of the federal statutory tax rate to Staples' effective tax rate on income from continuing operations is as follows:



	2015		2014		2013
Federal statutory rate	35.0	%	35.0	%	35.0	%
State effective rate, net of federal benefit	2.9		(1.6	)	2.3
Effect of foreign taxes	(12.9	)	(22.3	)	(9.9	)
Tax credits	(0.8	)	(1.5	)	(0.4	)
Changes in uncertain tax positions	(9.0	)	(13.7	)	2.4
Goodwill impairment	—		44.1		—
Change in valuation allowance	6.4		12.5		3.8
Other	1.4		(2.7	)	0.3
Effective tax rate	23.0	%	49.8	%	33.5	%

Summary of unrecognized tax benefits

The following summarizes the activity related to the Company's unrecognized tax benefits, including those related to discontinued operations (in millions):



	2015			2014			2013
Balance at beginning of fiscal year	$	216		$	281		$	255
Additions for tax positions related to current year	19			22			28
Additions for tax positions of prior years	5			36			4
Reductions for tax positions of prior years	(5		)	(88		)	—
Reduction for statute of limitations expiration	(69		)	(17		)	(6		)
Settlements	(30		)	(18		)	—
Balance at end of fiscal year	$	136		$	216		$	281