Income Taxes (Tables)

12 Months Ended

Feb. 02, 2019

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The following table provides the components of the Company’s provision for income taxes for fiscal 2018, 2017 and 2016:

	2018			2017			2016
	(in millions)
Current:
U.S. Federal	$	212		$	366		$	345
U.S. State	37			49			62
Non-U.S.	16			22			21
Total	265			437			428
Deferred:
U.S. Federal	(4		)	(114		)	99
U.S. State	2			6			8
Non-U.S.	(50		)	—			3
Total	(52		)	(108		)	110
Provision for Income Taxes	$	213		$	329		$	538

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 fiscal 2018, 2017 and 2016:

	2018		2017		2016
Federal Income Tax Rate	21.0	%	33.7	%	35.0	%
State Income Taxes, Net of Federal Income Tax Effect	6.0	%	3.6	%	3.4	%
Impact of Non-U.S. Operations	0.8	%	(1.5	%)	(1.2	%)
Divestiture of La Senza	(2.7	%)	—	%	—	%
U.S. Net Deferred Tax Liability Remeasurement	—	%	(12.1	%)	—	%
Deemed Mandatory Repatriation	—	%	5.1	%	—	%
Share-Based Compensation	1.0	%	(1.0	%)	—	%
Uncertain Tax Positions	(0.5	%)	(1.2	%)	(4.1	%)
Other Items, Net	(0.7	%)	(1.5	%)	(1.4	%)
Effective Tax Rate	24.9	%	25.1	%	31.7	%

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 February 2, 2019 and February 3, 2018. 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.

	February 2, 2019									February 3, 2018
	Assets			Liabilities			Total			Assets			Liabilities			Total
	(in millions)
Operating Loss Carryforwards	$	217		$	—		$	217		$	202		$	—		$	202
Non-qualified Retirement Plan	64			—			64			62			—			62
Leases	50			—			50			47			—			47
Share-based Compensation	47			—			47			46			—			46
Deferred Revenue	28			—			28			15			—			15
Property and Equipment	—			(278		)	(278		)	—			(266		)	(266		)
Trade Names and Other Intangibles	—			(93		)	(93		)	—			(91		)	(91		)
Other Assets	—			(60		)	(60		)	—			(60		)	(60		)
Other, Net	60			(27		)	33			57			(24		)	33
Valuation Allowance	(172		)	—			(172		)	(212		)	—			(212		)
Total Deferred Income Taxes	$	294		$	(458	)	$	(164	)	$	217		$	(441	)	$	(224	)

Activity Related to Unrecognized Tax Benefits

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 2018, 2017 and 2016, without interest and penalties:

	2018			2017			2016
	(in millions)
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year	$	67		$	90		$	248
Increases to Unrecognized Tax Benefits for Prior Years	35			3			3
Decreases to Unrecognized Tax Benefits for Prior Years	(25		)	(22		)	(73		)
Increases to Unrecognized Tax Benefits as a Result of Current Year Activity	44			7			18
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities	—			(2		)	(98		)
Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations	(7		)	(9		)	(8		)
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year	$	114		$	67		$	90