Income Taxes (Tables)

12 Months Ended

Jan. 30, 2021

Income Taxes [Abstract]

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

	2021			2020			2019
Federal income tax at the statutory rate	$	499		$	419		$	396
State income taxes, net of federal benefit		79			62			58
Expense (benefit) from foreign operations		29			(2)			-
Other		(28)			(27)			(7)
Tax Act		-			-			(23)
Income tax expense	$	579		$	452		$	424
Effective income tax rate		24.3	%		22.7	%		22.4	%

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

	2021		2020		2019
United States	$	2,203	$	1,704	$	1,574
Foreign		174		289		314
Earnings before income tax expense	$	2,377	$	1,993	$	1,888

Components of income tax expense

	2021		2020		2019
Current:
Federal	$	447	$	261	$	275
State		117		73		75
Foreign		51		48		64
		615		382		414
Deferred:
Federal		(25)		56		4
State		(16)		8		-
Foreign		5		6		6
		(36)		70		10
Income tax expense	$	579	$	452	$	424

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 30, 2021		February 1, 2020
Deferred revenue	$	67	$	57
Compensation and benefits		122		57
Stock-based compensation		29		34
Other accrued expenses		64		37
Operating lease liabilities		698		734
Loss and credit carryforwards		143		127
Other		48		59
Total deferred tax assets		1,171		1,105
Valuation allowance		(127)		(96)
Total deferred tax assets after valuation allowance		1,044		1,009
Inventory		(13)		(40)
Property and equipment		(258)		(237)
Operating lease assets		(662)		(692)
Goodwill and intangibles		(55)		(45)
Other		(39)		(15)
Total deferred tax liabilities		(1,027)		(1,029)
Net deferred tax assets (liabilities)	$	17	$	(20)

Deferred taxes were presented as follows ($ in millions):

Balance Sheet Location	January 30, 2021		February 1, 2020
Other assets	$	17	$	9
Long-term liabilities		-		(29)
Net deferred tax assets (liabilities)	$	17	$	(20)

Reconciliation of changes in unrecognized tax benefits

	2021		2020		2019
Balances at beginning of period	$	318	$	300	$	279
Gross increases related to prior period tax positions		17		1		4
Gross decreases related to prior period tax positions		(25)		(5)		(12)
Gross increases related to current period tax positions		29		34		36
Settlements with taxing authorities		(1)		-		(1)
Lapse of statute of limitations		(11)		(12)		(6)
Balances at end of period	$	327	$	318	$	300