Taxes (Tables)

12 Months Ended

Jan. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of income before income taxes

The components of income (loss) before income taxes are as follows:

	Fiscal Years Ended January 31,
(Amounts in millions)	2021		2020		2019
U.S.	$	20,003	$	17,098	$	15,875
Non-U.S.	561		3,018		(4,415)
Total income before income taxes	$	20,564	$	20,116	$	11,460

Schedule of income tax provision

A summary of the provision for income taxes is as follows:

	Fiscal Years Ended January 31,
(Amounts in millions)	2021		2020		2019
Current:
U.S. federal	$	2,991	$	2,794	$	2,763
U.S. state and local	742		587		493
International	1,127		1,205		1,495
Total current tax provision	4,860		4,586		4,751
Deferred:
U.S. federal	2,316		663		(361)
U.S. state and local	23		35		(16)
International	(341)		(369)		(93)
Total deferred tax expense (benefit)	1,998		329		(470)
Total provision for income taxes	$	6,858	$	4,915	$	4,281

Schedule of income tax rate

A reconciliation of the significant differences between the U.S. statutory tax rate and the effective income tax rate on pre-tax income from continuing operations is as follows:

	Fiscal Years Ended January 31,
	2021		2020		2019
U.S. statutory tax rate	21.0	%	21.0	%	21.0	%
U.S. state income taxes, net of federal income tax benefit	2.9	%	2.2	%	3.0	%
Impact of the Tax Act:
One-time transition tax	—	%	—	%	3.6	%
Deferred tax effects	—	%	—	%	(0.7)	%
Income taxed outside the U.S.	(0.1)	%	(1.0)	%	(3.4)	%
Disposal and wind-down of certain business operations	7.1	%	—	%	6.7	%
Valuation allowance	2.3	%	2.3	%	6.3	%
Net impact of repatriated international earnings	(0.4)	%	0.4	%	0.8	%
Federal tax credits	(0.9)	%	(0.8)	%	(1.3)	%
Enacted change in tax laws	—	%	(1.9)	%	—	%
Change in reserve for tax contingencies	0.8	%	2.5	%	0.6	%
Other, net	0.6	%	(0.3)	%	0.8	%
Effective income tax rate	33.3	%	24.4	%	37.4	%

Schedule of deferred tax balances

The significant components of the Company's deferred tax account balances are as follows:

	January 31,
(Amounts in millions)	2021		2020
Deferred tax assets:
Loss and tax credit carryforwards	$	9,179	$	9,056
Accrued liabilities	2,582		2,483
Share-based compensation	224		250
Lease obligations	4,450		4,098
Other	589		887
Total deferred tax assets	17,024		16,774
Valuation allowances	(8,782)		(8,588)
Deferred tax assets, net of valuation allowances	8,242		8,186
Deferred tax liabilities:
Property and equipment	4,802		4,364
Acquired intangibles	1,071		1,153
Inventory	1,235		1,414
Lease right of use assets	4,390		3,998
Mark-to-market investments	2,678		723
Other	675		824
Total deferred tax liabilities	14,851		12,476
Net deferred tax liabilities	$	6,609	$	4,290

Schedule of deferred tax classification in the balance sheet

The deferred taxes noted above are classified as follows in the Company's Consolidated Balance Sheets:

	January 31,
(Amounts in millions)	2021		2020
Balance Sheet classification
Assets:
Other long-term assets	$	1,836	$	1,914
Liabilities:
Deferred income taxes and other	8,445		6,204
Net deferred tax liabilities	$	6,609	$	4,290

Reconciliation of unrecognized tax benefits from continuing operations

A reconciliation of gross unrecognized tax benefits from continuing operations is as follows:

	Fiscal Years Ended January 31,
(Amounts in millions)	2021		2020		2019
Gross unrecognized tax benefits, beginning of year	$	1,817	$	1,305	$	1,010
Increases related to prior year tax positions	92		516		620
Decreases related to prior year tax positions	(264)		(15)		(107)
Increases related to current year tax positions	1,582		66		203
Settlements during the period	(64)		(29)		(390)
Lapse in statutes of limitations	(28)		(26)		(31)
Gross unrecognized tax benefits, end of year	$	3,135	$	1,817	$	1,305