INCOME AND OTHER TAXES (Tables)

12 Months Ended

Jan. 29, 2021

Income Tax Disclosure [Abstract]

Income tax benefit from continuing operations

The following table presents components of the income tax expense (benefit) recognized for the periods indicated:

	Fiscal Year Ended
	January 29, 2021		January 31, 2020		February 1, 2019
	(in millions)
Current:
Federal	$	(526)	$	(150)	$	461
State/local	29		69		74
Foreign	1,061		887		616
Current	564		806		1,151
Deferred:
Federal	23		(862)		(1,150)
State/local	(145)		(150)		(85)
Foreign	(277)		(5,327)		(96)
Deferred	(399)		(6,339)		(1,331)
Income tax expense (benefit)	$	165	$	(5,533)	$	(180)

Loss from continuing operations before income taxes

The following table presents components of income (loss) before income taxes for the periods indicated:

	Fiscal Year Ended
	January 29, 2021		January 31, 2020		February 1, 2019
	(in millions)
Domestic	$	(1,066)	$	(3,067)	$	(4,645)
Foreign	4,736		3,063		2,284
Income (loss) before income taxes	$	3,670	$	(4)	$	(2,361)

Reconciliation of income tax benefit from continuing operations

The following table presents a reconciliation of the Company’s effective tax rate to the statutory U.S. federal tax rate for the periods indicated:

	Fiscal Year Ended
	January 29, 2021		January 31, 2020		February 1, 2019
U.S. federal statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal tax benefit	(1.5)		1194.6		0.5
Tax impact of foreign operations	2.2		(2741.3)		(19.5)
Impact of intangible property transfers	(1.6)		123367.9		—
Change in valuation allowance	0.5		1030.6		(6.6)
Indirect tax effects of adoption of new revenue standard	—		—		6.5
U.S. Tax Reform (a)	—		—		1.5
U.S. tax audit settlement	(20.3)		7615.7		—
Non-deductible transaction-related costs	0.7		(700.0)		(1.9)
Stock-based compensation	(1.6)		5873.2		4.1
U.S. R&D tax credits	(3.8)		4424.9		6.9
RSA Security divestiture	7.8		—		—
Other	1.1		(1761.6)		(4.9)
Total	4.5	%	138325.0	%	7.6	%

____________________

(a)    Impact of the Tax Cuts and Jobs Act (“U.S. Tax Reform”), which was enacted by the U.S. federal government in December 2017. The Company completed its accounting for the income tax effects of U.S. Tax Reform during the fourth quarter of the fiscal year ended February 1, 2019.

Components of net deferred tax assets (liabilities)

The following table presents the components of the Company’s net deferred tax assets (liabilities) as of the dates indicated:

	January 29, 2021		January 31, 2020
	(in millions)
Deferred tax assets:
Deferred revenue and warranty provisions	$	1,851	$	1,672
Provisions for product returns and doubtful accounts	133		107
Credit carryforwards	1,531		1,951
Loss carryforwards	614		580
Operating and compensation related accruals	774		744
Operating leases	238		239
Intangible assets	3,060		2,420
Other	361		205
Deferred tax assets	8,562		7,918
Valuation allowance	(1,709)		(1,687)
Deferred tax assets, net of valuation allowance	6,853		6,231
Deferred tax liabilities:
Leasing and financing	(375)		(369)
Operating leases	(208)		(210)
Property and equipment	(539)		(509)
Other	(303)		(205)
Deferred tax liabilities	(1,425)		(1,293)
Net deferred tax assets (liabilities)	$	5,428	$	4,938

Summary of net operating loss carryforwards, tax credit carryforwards, and other deferred tax assets

The following tables present the net operating loss carryforwards, tax credit carryforwards, and other deferred tax assets with related valuation allowances recognized as of the dates indicated:

	January 29, 2021
	Deferred Tax Assets		Valuation Allowance		Net Deferred Tax Assets		First Year Expiring
	(in millions)
Credit carryforwards	$	1,531	$	(1,219)	$	312	Fiscal 2022
Loss carryforwards	614		(265)		349		Fiscal 2022
Other deferred tax assets	6,417		(225)		6,192		NA
Total	$	8,562	$	(1,709)	$	6,853
	January 31, 2020
	Deferred Tax Assets		Valuation Allowance		Net Deferred Tax Assets		First Year Expiring
	(in millions)
Credit carryforwards	$	1,951	$	(1,257)	$	694	Fiscal 2021
Loss carryforwards	580		(348)		232		Fiscal 2021
Other deferred tax assets	5,387		(82)		5,305		NA
Total	$	7,918	$	(1,687)	$	6,231

Reconciliation of unrecognized tax benefits

The following table presents a reconciliation of the Company’s beginning and ending balances of unrecognized tax benefits for the periods indicated:

	Fiscal Year Ended
	January 29, 2021		January 31, 2020		February 1, 2019
	(in millions)
Beginning Balance	$	2,447	$	2,989	$	2,867
Increases related to tax positions of the current year	136		145		116
Increases related to tax position of prior years	393		332		288
Reductions for tax positions of prior years	(698)		(490)		(170)
Lapse of statute of limitations	(40)		(127)		(90)
Audit settlements	(405)		(402)		(22)
Ending Balance	$	1,833	$	2,447	$	2,989