Income Taxes (Tables)

12 Months Ended

Jan. 29, 2022

Income Taxes [Abstract]

Domestic and International Pre-Tax Income

The domestic and international components of pre-tax income are as follows:

($ in millions)	2021		2020		2019
Domestic	$	1,244	$	647	$	591
International		(4)		(153)		81
Total pre-tax income	$	1,240	$	494	$	672

Income Tax Provision

The income tax provision consists of the following:

($ in millions)	2021		2020		2019
Current:
Federal	$	192	$	114	$	106
State and local		66		43		39
International		16		23		31
Total current tax provision		274		180		176
Deferred:
Federal		49		6		(1)
State and local		15		(2)		—
International		10		(13)		6
Total deferred tax provision		74		(9)		5
Total income tax provision	$	348	$	171	$	181

Reconciliation of Significant Differences between Federal Statutory Income Tax Rate and Effective Income Tax Rate on Pre-Tax Income from Continuing Operations

	2021		2020		2019
Federal statutory income tax rate	21.0	%	21.0	%	21.0	%
Increase in valuation allowance	0.7		6.3		1.0
State and local income taxes, net of federal tax benefit	5.4		6.6		4.5
International income taxed at varying rates	2.4		4.3		1.9
Foreign tax credits	(1.4)		(2.4)		(2.0)
Domestic/foreign tax settlements	(0.3)		(0.5)		—
Federal tax credits	(0.1)		(0.4)		(0.2)
Other, net	0.4		(0.4)		0.8
Effective income tax rate	28.1	%	34.5	%	27.0	%

Significant Portions of Deferred Tax Accounts

Items that give rise to significant portions of our deferred tax assets and liabilities are as follows:

	January 29,		January 30,
($ in millions)	2022		2021
Deferred tax assets:
Tax loss/credit carryforwards and capital loss	$	133	$	120
Employee benefits		38		52
Property and equipment		15		13
Operating leases - liabilities		720		811
Other		74		39
Total deferred tax assets	$	980	$	1,035
Valuation allowance		(80)		(76)
Total deferred tax assets, net	$	900	$	959
Deferred tax liabilities:
Merchandise inventories	$	68	$	62
Operating leases - assets		662		746
Goodwill and other intangible assets		155		13
Net investment gains		131		46
Other		22		9
Total deferred tax liabilities	$	1,038	$	876
Net deferred tax (liability) asset	$	(138)	$	83
Balance Sheet caption reported in:
Deferred taxes	$	86	$	101
Other liabilities		(224)		(18)
	$	(138)	$	83

Unrecognized Tax Benefits Activity

($ in millions)	2021		2020		2019
Unrecognized tax benefits at beginning of year	$	47	$	45	$	34
Foreign currency translation adjustments		(2)		3		(1)
Increases related to current year tax positions		3		2		3
Increases related to prior period tax positions		2		3		12
Decreases related to prior period tax positions		(3)		—		—
Settlements		(1)		(1)		(2)
Lapse of statute of limitations		(5)		(5)		(1)
Unrecognized tax benefits at end of year	$	41	$	47	$	45