Income Taxes (Tables)

12 Months Ended

Feb. 01, 2020

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The following table provides the components of the Company’s provision for income taxes for 2019, 2018 and 2017:

	2019			2018			2017
	(in millions)
Current:
U.S. Federal	$	156		$	212		$	366
U.S. State	35			37			49
Non-U.S.	23			16			22
Total	214			265			437
Deferred:
U.S. Federal	(7		)	(4		)	(114		)
U.S. State	1			2			6
Non-U.S.	(23		)	(50		)	—
Total	(29		)	(52		)	(108		)
Provision for Income Taxes	$	185		$	213		$	329

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 2019, 2018 and 2017:

	2019		2018		2017
Federal Income Tax Rate	21.0	%	21.0	%	33.7	%
State Income Taxes, Net of Federal Income Tax Effect	(23.0	%)	6.0	%	3.6	%
Impact of Non-U.S. Operations	(5.7	%)	2.3	%	(1.4	%)
Goodwill Impairment	(80.8	%)	—	%	—	%
Change in Valuation Allowance	(18.5	%)	(1.1	%)	(0.1	%)
Divestiture of La Senza	—	%	(2.7	%)	—	%
U.S. Net Deferred Tax Liability Remeasurement	—	%	—	%	(12.1	%)
Deemed Mandatory Repatriation	—	%	—	%	5.1	%
Share-Based Compensation	(7.7	%)	1.0	%	(1.0	%)
Uncertain Tax Positions	12.3	%	(0.5	%)	(1.2	%)
Other Items, Net	0.5	%	(1.1	%)	(1.5	%)
Effective Tax Rate	(101.9	%)	24.9	%	25.1	%

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 1, 2020 and February 2, 2019. 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 1, 2020									February 2, 2019
	Assets			Liabilities			Total			Assets			Liabilities			Total
	(in millions)
Operating Loss Carryforwards	$	247		$	—		$	247		$	217		$	—		$	217
Non-qualified Retirement Plan	62			—			62			64			—			64
Leases	746			(712		)	34			50			—			50
Share-based Compensation	40			—			40			47			—			47
Deferred Revenue	20			—			20			28			—			28
Property and Equipment	—			(230		)	(230		)	—			(278		)	(278		)
Trade Names and Other Intangibles	—			(94		)	(94		)	—			(93		)	(93		)
Other Assets	—			(60		)	(60		)	—			(60		)	(60		)
Other, Net	70			(20		)	50			60			(27		)	33
Valuation Allowance	(204		)	—			(204		)	(172		)	—			(172		)
Total Deferred Income Taxes	$	981		$	(1,116	)	$	(135	)	$	294		$	(458	)	$	(164	)

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 2019, 2018 and 2017, without interest and penalties:

	2019			2018			2017
	(in millions)
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year	$	114		$	67		$	90
Increases to Unrecognized Tax Benefits for Prior Years	15			35			3
Decreases to Unrecognized Tax Benefits for Prior Years	(22		)	(25		)	(22		)
Increases to Unrecognized Tax Benefits as a Result of Current Year Activity	3			44			7
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities	(16		)	—			(2		)
Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations	(6		)	(7		)	(9		)
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year	$	88		$	114		$	67