Income Taxes (Tables)

12 Months Ended

Jan. 31, 2015

Income Tax Disclosure [Abstract]

Reconciliation of the federal statutory income tax rate to income tax expense

The following is a reconciliation of the federal statutory income tax rate to income tax expense in fiscal 2015, 2014 and 2013 (11-month) ($ in millions):

	12-Month			12-Month			11-Month
	2015			2014			2013
Federal income tax at the statutory rate	$	485		$	379		$	1
State income taxes, net of federal benefit	43			26			(2		)
(Benefit) expense from foreign operations	(23		)	(23		)	45
Other	(11		)	6			5
Legal entity reorganization	(353		)	—			—
Goodwill impairments (non-deductible)	—			—			214
Income tax expense	$	141		$	388		$	263
Effective income tax rate	10.1		%	35.8		%	7,152.3		%

Earning before income tax expense and equity in income (loss) of affiliates

Earnings from continuing operations before income tax expense by jurisdiction was as follows in fiscal 2015, 2014 and 2013 (11-month) ($ in millions):

	12-Month		12-Month		11-Month
	2015		2014		2013
United States	$	1,201	$	699	$	286
Outside the United States	186		384		(282		)
Earnings from continuing operations before income tax expense	$	1,387	$	1,083	$	4

Components of income tax expense

Income tax expense was comprised of the following in fiscal 2015, 2014 and 2013 (11-month) ($ in millions):

	12-Month			12-Month			11-Month
	2015			2014			2013
Current:
Federal	$	354		$	305		$	211
State	51			46			(3		)
Foreign	33			55			49
	438			406			257
Deferred:
Federal	(275		)	(22		)	25
State	(26		)	1			(1		)
Foreign	4			3			(18		)
	(297		)	(18		)	6
Income tax expense	$	141		$	388		$	263

Deferred income tax assets and liabilities

Deferred taxes are the result of differences between the bases of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities were comprised of the following ($ in millions):

	January 31, 2015			February 1, 2014
Accrued property expenses	$	129		$	162
Other accrued expenses	91			133
Deferred revenue	93			81
Compensation and benefits	103			114
Stock-based compensation	94			110
Goodwill and intangibles	287			—
Loss and credit carryforwards	156			176
Other	88			103
Total deferred tax assets	1,041			879
Valuation allowance	(143		)	(158		)
Total deferred tax assets after valuation allowance	898			721
Property and equipment	(251		)	(286		)
Goodwill and intangibles	—			(75		)
Inventory	(54		)	(60		)
Other	(27		)	(16		)
Total deferred tax liabilities	(332		)	(437		)
Net deferred tax assets	$	566		$	284

Schedule of deferred tax assets and liabilities included in consolidated balance sheets

Deferred tax assets and liabilities included in our Consolidated Balance Sheets were as follows ($ in millions):

	January 31, 2015			February 1, 2014
Other current assets	$	252		$	261
Current assets held for sale	3			—
Other assets	322			44
Other current liabilities	—			—
Other long-term liabilities	—			(21		)
Long-term liabilities held for sale	(11		)	—
Net deferred tax assets	$	566		$	284

Reconciliation of changes in unrecognized tax benefits

The following table provides a reconciliation of changes in unrecognized tax benefits for fiscal 2015, 2014 and 2013 (11-month) ($ in millions):

	12-Month			12-Month			11-Month
	2015			2014			2013
Balance at beginning of period	$	370		$	383		$	387
Gross increases related to prior period tax positions	33			38			10
Gross decreases related to prior period tax positions	(88		)	(67		)	(22		)
Gross increases related to current period tax positions	114			34			37
Settlements with taxing authorities	(9		)	(3		)	(10		)
Lapse of statute of limitations	(10		)	(15		)	(19		)
Balance at end of period	$	410		$	370		$	383