Income Taxes (Tables)

12 Months Ended

Jan. 30, 2016

The following table provides the components of the Company’s provision for income taxes for 2015, 2014 and 2013:



	2015			2014		2013
	(in millions)
Current:
U.S. Federal	$	553		$	454	$	407
U.S. State	96			69		90
Non-U.S.	21			21		28
Total	670			544		525
Deferred:
U.S. Federal	17			46		11
U.S. State	6			3		3
Non-U.S.	(12		)	1		4
Total	11			50		18
Provision for Income Taxes	$	681		$	594	$	543

Reconciliation of the Statutory Federal Income Tax Rate and the Effective Tax Rate

The following table provides the reconciliation between the statutory federal income tax rate and the effective tax rate for 2015, 2014 and 2013:



	2015		2014		2013
Federal Income Tax Rate	35.0	%	35.0	%	35.0	%
State Income Taxes, Net of Federal Income Tax Effect	3.4	%	3.6	%	3.8	%
Impact of Non-U.S. Operations	(1.7	)%	(1.3	)%	(1.4	)%
Foreign Portion of the Divestiture of Third-party Apparel Sourcing Business	(0.9	)%	—	%	—	%
Other Items, Net	(0.6	)%	(1.0	)%	0.1	%
Effective Tax Rate	35.2	%	36.3	%	37.5	%

Effect of Temporary Differences that Cause Deferred Income Taxes

The following table provides the effect of temporary differences that cause deferred income taxes as of January 30, 2016 and January 31, 2015. Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carryforwards at the end of the respective year.



	January 30, 2016									January 31, 2015
	Assets			Liabilities			Total			Assets			Liabilities			Total
	(in millions)
Leases	$	54		$	—		$	54		$	49		$	—		$	49
Non-qualified Retirement Plan	103			—			103			97			—			97
Property and Equipment	—			(330		)	(330		)	—			(283		)	(283		)
Goodwill	—			(15		)	(15		)	—			(15		)	(15		)
Trade Names and Other Intangibles	—			(141		)	(141		)	—			(139		)	(139		)
State Net Operating Loss Carryforwards	17			—			17			18			—			18
Non-U.S. Operating Loss Carryforwards	157			—			157			158			—			158
Valuation Allowance	(164		)	—			(164		)	(177		)	—			(177		)
Other, Net	92			—			92			80			—			80
Total Deferred Income Taxes	$	259		$	(486	)	$	(227	)	$	225		$	(437	)	$	(212	)

The following table summarizes the activity related to the Company’s unrecognized tax benefits for U.S. federal, state & non-U.S. tax jurisdictions for 2015, 2014 and 2013, without interest and penalties:



	2015			2014			2013
	(in millions)
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year	$	193		$	167		$	185
Increases in Unrecognized Tax Benefits for Prior Years	8			16			39
Decreases in Unrecognized Tax Benefits for Prior Years	(3		)	(14		)	(54		)
Increases in Unrecognized Tax Benefits as a Result of Current Year Activity	54			36			37
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities	—			(5		)	(34		)
Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations	(4		)	(7		)	(6		)
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year	$	248		$	193		$	167