Income Taxes (Tables)

12 Months Ended

Feb. 03, 2024

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The following table provides the components of the Company’s provision for income taxes for 2023, 2022 and 2021:

	2023		2022		2021
	(in millions)
Current:
U.S. Federal	$	214	$	180	$	249
U.S. State	49		48		53
Non-U.S.	7		8		4
Total	270		236		306
Deferred:
U.S. Federal	(19)		10		24
U.S. State	(2)		—		10
Non-U.S.	(106)		5		8
Total	(127)		15		42
Provision for Income Taxes	$	143	$	251	$	348

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 2023, 2022 and 2021:

	2023		2022		2021
Federal Income Tax Rate	21.0	%	21.0	%	21.0	%
State Income Taxes, Net of Federal Income Tax Effect	4.0	%	4.1	%	4.2	%
Impact of Non-U.S. Operations	0.2	%	0.1	%	0.1	%
Change in Valuation Allowance	(11.0	%)	—	%	—	%
Share-based Compensation	0.1	%	(0.7	%)	(0.7	%)
Uncertain Tax Positions	—	%	(0.7	%)	(0.5	%)
Other Items, Net	(0.4	%)	0.2	%	0.4	%
Effective Tax Rate	13.9	%	24.0	%	24.5	%

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 February 3, 2024 and January 28, 2023:

	February 3, 2024						January 28, 2023
	Assets		Liabilities		Total		Assets		Liabilities		Total
	(in millions)
Loss Carryforwards	$	390	$	—	$	390	$	396	$	—	$	396
Leases	280		(266)		14		275		(261)		14
Capitalized Research and Development	30		—		30		11		—		11
Share-based Compensation	9		—		9		9		—		9
Property and Equipment	—		(141)		(141)		—		(140)		(140)
Trade Names	—		(38)		(38)		—		(38)		(38)
Other Assets	—		(59)		(59)		—		(62)		(62)
Other, Net	56		(11)		45		56		(13)		43
Valuation Allowance	(253)		—		(253)		(364)		—		(364)
Total Deferred Income Taxes	$	512	$	(515)	$	(3)	$	383	$	(514)	$	(131)

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 and non-U.S. tax jurisdictions for 2023, 2022 and 2021, without interest and penalties:

	2023		2022		2021
	(in millions)
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year	$	149	$	147	$	152
Increases to Unrecognized Tax Benefits for Prior Years	1		14		5
Decreases to Unrecognized Tax Benefits for Prior Years	(7)		(12)		(12)
Increases to Unrecognized Tax Benefits as a Result of Current Year Activity	5		6		21
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities	(1)		(2)		(3)
Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations	(2)		(4)		(16)
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year	$	145	$	149	$	147