INCOME TAXES (Tables)

12 Months Ended

Jul. 30, 2022

Schedule of Components of Income Tax Expense (Benefit)

The total provision (benefit) for income taxes included in the Consolidated Statements of Operations consisted of the following:


(in millions)	2022		2021		2020
Continuing operations	$	56	$	34	$	(91)
Discontinued operations	—		(1)		(5)
Total	$	56	$	33	$	(96)

The income tax expense (benefit) in continuing operations was allocated as follows:


(in millions)	2022		2021		2020
Income tax expense (benefit)	$	56	$	34	$	(91)

Other comprehensive income	11		65		(45)
Total	$	67	$	99	$	(136)

Total federal, state, and foreign income tax (benefit) expense in continuing operations consists of the following:


(in millions)	Current		Deferred		Total
Fiscal 2022
U.S. Federal	$	(7)	$	45	$	38
State and Local	6		9		15
Foreign	2		1		3
	$	1	$	55	$	56
Fiscal 2021
U.S. Federal	$	30	$	(8)	$	22
State and Local	7		2		9
Foreign	2		1		3
	$	39	$	(5)	$	34
Fiscal 2020
U.S. Federal	$	(23)	$	(45)	$	(68)
State and Local	1		(24)		(23)
Foreign	2		(2)		—
	$	(20)	$	(71)	$	(91)

Schedule of Effective Income Tax Rate Reconciliation

Total income tax expense (benefit) in continuing operations was different than the amounts computed by applying the statutory federal income tax rate to income before income taxes because of the following:


(in millions)	2022		2021		2020
Computed “expected” tax expense	$	66	$	39	$	(72)
State and local income tax, net of Federal income tax benefit	18		10		(19)
Non-deductible expenses	13		7		3
Tax effect of share-based compensation	(31)		(3)		2
General business credits	(3)		(6)		(2)
Unrecognized tax benefits	(6)		(4)		(8)
Nondeductible goodwill impairment	—		—		44
Enhanced Inventory Donations	(2)		(3)		(2)
Impacts related to the CARES Act	—		—		(39)
Other, net	1		(6)		2
Total income tax expense (benefit)	$	56	$	34	$	(91)

Summary of Unrecognized Tax Benefits Roll Forward

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


(in millions)	2022		2021		2020
Unrecognized tax benefits at beginning of period	$	27	$	32	$	40
Unrecognized tax benefits added during the period	—		6		6
Unrecognized tax benefits assumed in a business combination	—		—		—
Decreases in unrecognized tax benefits due to statute expiration	(7)		(8)		(2)
Decreases in unrecognized tax benefits due to settlements	(1)		(3)		(12)
Unrecognized tax benefits at end of period	$	19	$	27	$	32

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets and deferred tax liabilities at July 30, 2022 and July 31, 2021 are presented below:


(in millions)	July 30, 2022		July 31, 2021
Deferred tax assets:

Compensation and benefits related	$	50	$	54
Accounts receivable, principally due to allowances for uncollectible accounts	4		6
Accrued expenses	37		37

Net operating loss carryforwards	14		16
Other tax carryforwards (interest, charitable contributions)	15		8
Foreign tax credits	1		1
Intangible assets	50		61
Lease liabilities	319		336
Interest rate swap agreements	—		25
Other deferred tax assets	—		6
Total gross deferred tax assets	490		550
Less valuation allowance	(5)		(8)
Net deferred tax assets	$	485	$	542
Deferred tax liabilities:
Plant and equipment, principally due to differences in depreciation	$	159	$	125
Inventories	29		39
Lease right of use assets	304		321
Interest rate swap agreements	1		—


Total deferred tax liabilities	493		485
Net deferred tax (liabilities) assets	$	(8)	$	57