Income Taxes (Tables)

12 Months Ended

Jan. 28, 2023

Income Tax Disclosure [Abstract]

Schedule of Components of Deferred Income Taxes

Deferred income taxes consist of the following:

(Dollars in Millions)	January 28, 2023	January 29, 2022
Deferred tax liabilities:
Property and equipment	$542	$646
Lease assets	1,140	974
Merchandise inventories	33	24
Total deferred tax liabilities	1,715	1,644
Deferred tax assets:
Lease obligations	1,448	1,267
Accrued and other liabilities, including stock-based compensation	201	214
Federal benefit on state tax reserves	26	30
Valuation allowance	(43)	(34)
Total deferred tax assets	1,632	1,477
Net deferred tax liability	$83	$167

Schedule of Components of (Benefit) Provision for Income Taxes

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

(Dollars in Millions)	2022	2021	2020
Current federal	$39	$311	$(439)
Current state	6	63	38
Deferred federal	(70)	(59)	69
Deferred state	(14)	(34)	(51)
(Benefit) provision for income taxes	$(39)	$281	$(383)

Schedule of Items Affecting Statutory Corporate Tax Rate

The effective tax rate differs from the amount that would be provided by applying the statutory U.S. corporate tax rate due to the following items:

(Dollars in Millions)	2022	2021	2020
Taxes computed at federal statutory rate	$(12)	$256	$(115)
State income taxes, net of federal tax benefit	(1)	32	(11)
Federal NOL carryback	−	(4)	(360)
Uncertain tax positions	(16)	7	106
Federal tax credits	(8)	(14)	(2)
Other	(2)	4	(1)
Total	$(39)	$281	$(383)
Effective tax rate	68.1%	23.1%	70.2%

Schedule of Reconciliation of Gross Amount of Unrecognized Tax Benefits

(Dollars in Millions)	2022	2021
Balance at beginning of year	$276	$298
Increases due to tax positions taken in prior years	1	12
Increases due to tax positions taken in current year	7	27
Decreases due to:
Tax positions taken in prior years	(57)	(53)
Settlements with taxing authorities	(2)	(3)
Lapse of applicable statute of limitations	(6)	(5)
Balance at end of year	$219	$276