INCOME TAXES (Tables)

12 Months Ended

Jul. 29, 2023

Schedule of Components of Income Tax Expense (Benefit)

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


(in millions)	2023		2022		2021
Continuing operations	$	(23)	$	56	$	34
Discontinued operations	—		—		(1)
Total	$	(23)	$	56	$	33

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


(in millions)	2023		2022		2021
Income tax (benefit) expense	$	(23)	$	56	$	34

Other comprehensive (loss) income	(2)		11		65
Total	$	(25)	$	67	$	99

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


(in millions)	Current		Deferred		Total
Fiscal 2023
U.S. Federal	$	23	$	(36)	$	(13)
State and Local	(11)		(1)		(12)
Foreign	1		1		2
	$	13	$	(36)	$	(23)
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

Schedule of Effective Income Tax Rate Reconciliation

Total income tax (benefit) expense 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)	2023		2022		2021
Computed “expected” tax expense	$	1	$	66	$	39
State and local income tax, net of Federal income tax benefit	(1)		18		10
Non-deductible expenses	3		13		7
Tax effect of share-based compensation	(9)		(31)		(3)
General business credits	(8)		(3)		(6)
Unrecognized tax benefits	(16)		(6)		(4)
Enhanced inventory donations	(1)		(2)		(3)
Changes in valuation allowance(1)	4		1		1
Other, net(1)	4		—		(7)
Total income tax (benefit) expense	$	(23)	$	56	$	34

(1)Immaterial prior period amounts that were included in the other, net category have been reclassified to conform with current period presentation.

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)	2023		2022		2021
Unrecognized tax benefits at beginning of period	$	19	$	27	$	32
Unrecognized tax benefits added during the period	5		—		6

Decreases in unrecognized tax benefits due to statute expiration	(5)		(7)		(8)
Decreases in unrecognized tax benefits due to settlements	(8)		(1)		(3)
Unrecognized tax benefits at end of period	$	11	$	19	$	27

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 29, 2023 and July 30, 2022 are presented below:


(in millions)	July 29, 2023		July 30, 2022
Deferred tax assets:

Compensation and benefits related	$	29	$	50
Accounts receivable, principally due to allowances for uncollectible accounts	4		4
Accrued expenses	52		37

Net operating loss carryforwards	10		14
Other tax carryforwards (interest, charitable contributions)	32		15
Foreign tax credits	1		1
Intangible assets	50		50
Lease liabilities	333		319

Other deferred tax assets	6		—
Total gross deferred tax assets	517		490
Less valuation allowance	(7)		(5)
Net deferred tax assets	$	510	$	485
Deferred tax liabilities:
Plant and equipment, principally due to differences in depreciation	$	141	$	159
Inventories	15		29
Lease right of use assets	317		304
Interest rate swap agreements	5		1


Total deferred tax liabilities	478		493
Net deferred tax assets (liabilities)	$	32	$	(8)