Income Taxes (Tables)

12 Months Ended

Jan. 28, 2017

Income Tax Disclosure [Abstract]

Deferred income taxes

Deferred income taxes consist of the following:

(Dollars in Millions)	Jan 28, 2017		Jan 30, 2016
Deferred tax liabilities:
Property and equipment	$	1,226	$	1,319
Merchandise inventories	95		—
Total deferred tax liabilities	1,321		1,319
Deferred tax assets:
Capital lease and financing obligations	711		752
Accrued and other liabilities, including stock-based compensation	194		151
Accrued step rent liability	111		106
Federal benefit on state tax reserves	47		45
Unrealized loss on interest rate swap	9		11
Merchandise inventories	—		24
Total deferred tax assets	1,072		1,089
Net deferred tax liability	$	249	$	230

Components of the provision for income tax

The components of the provision for income taxes were as follows:

(Dollars in Millions)	2016		2015			2014
Current federal	$	272	$	397		$	400
Current state	25		34			36
Deferred federal	16		(35		)	48
Deferred state	6		(12		)	(2		)
Provision for income taxes	$	319	$	384		$	482

Items affecting statutory corporate tax rate

differs from the amount that would be provided by applying the federal statutory tax rate due to the following items:

	2016		2015		2014
Federal statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal tax benefit	2.4		2.1		1.3
Other federal tax credits	(0.9	)	(0.8	)	(0.6	)
Effective tax rate	36.5	%	36.3	%	35.7	%

Reconciliation of gross amount of unrecognized tax benefits

A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows:

(Dollars in Millions)	2016			2015
Balance at beginning of year	$	139		$	123
Increases due to:
Tax positions taken in prior years	3			16
Tax positions taken in current year	15			19
Decreases due to:
Tax positions taken in prior years	—			(6		)
Settlements with taxing authorities	(6		)	(10		)
Lapse of applicable statute of limitations	(2		)	(3		)
Balance at end of year	$	149		$	139