Income Taxes (Tables)

12 Months Ended

Jan. 28, 2017

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 2017, 2016 and 2015 ($ in millions):

	2017			2016			2015
Federal income tax at the statutory rate	$	635		$	458		$	485
State income taxes, net of federal benefit	38			38			43
(Benefit) expense from foreign operations	(46		)	5			(23		)
Other	(18		)	2			(11		)
Legal entity reorganization	—			—			(353		)
Income tax expense	$	609		$	503		$	141
Effective income tax rate	33.5		%	38.4		%	10.1		%

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 2017, 2016 and 2015 ($ in millions):

	2017		2016		2015
United States	$	1,507	$	1,310	$	1,201
Outside the United States	309		—		186
Earnings from continuing operations before income tax expense	$	1,816	$	1,310	$	1,387

Components of income tax expense

Income tax expense was comprised of the following in fiscal 2017, 2016 and 2015 ($ in millions):

	2017		2016			2015
Current:
Federal	$	317	$	347		$	354
State	37		48			51
Foreign	54		60			33
	408		455			438
Deferred:
Federal	163		65			(275		)
State	21		10			(26		)
Foreign	17		(27		)	4
	201		48			(297		)
Income tax expense	$	609	$	503		$	141

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 28, 2017			January 30, 2016
Accrued property expenses	$	91		$	175
Other accrued expenses	76			78
Deferred revenue	104			99
Compensation and benefits	43			99
Stock-based compensation	64			86
Goodwill and intangibles	210			253
Loss and credit carryforwards	123			133
Other	59			86
Total deferred tax assets	770			1,009
Valuation allowance	(94		)	(108		)
Total deferred tax assets after valuation allowance	676			901
Property and equipment	(240		)	(296		)
Inventory	(97		)	(69		)
Other	(22		)	(26		)
Total deferred tax liabilities	(359		)	(391		)
Net deferred tax assets	$	317		$	510

Reconciliation of changes in unrecognized tax benefits

The following table provides a reconciliation of changes in unrecognized tax benefits for fiscal 2017, 2016 and 2015 ($ in millions):

	2017			2016			2015
Balance at beginning of period	$	469		$	410		$	370
Gross increases related to prior period tax positions	11			30			33
Gross decreases related to prior period tax positions	(144		)	(13		)	(88		)
Gross increases related to current period tax positions	55			59			114
Settlements with taxing authorities	(12		)	(9		)	(9		)
Lapse of statute of limitations	(5		)	(8		)	(10		)
Balance at end of period	$	374		$	469		$	410