Taxes (Tables)

12 Months Ended

Jan. 28, 2017

Schedule of Income Tax Expense (Benefit)

Income tax expense is as follows:



	2016							2015						2014
	Current		Deferred			Total		Current		Deferred		Total		Current		Deferred		Total
	(millions)
Federal	$	433	$	(125	)	$	308	$	536	$	—	$	536	$	743	$	28	$	771
State and local	37		(4		)	33		72		—		72		92		1		93
	$	470	$	(129	)	$	341	$	608	$	—	$	608	$	835	$	29	$	864

Schedule of Effective Income Tax Reconciliation

The reasons for this difference and their tax effects are as follows:



	2016			2015			2014
	(millions)
Expected tax	$	333		$	587		$	836
State and local income taxes, net of federal income tax benefit	12			43			59
Historic rehabilitation tax credit	(1		)	(12		)	(20		)
Change in valuation allowance	9			3			1
Other	(12		)	(13		)	(12		)
	$	341		$	608		$	864

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:



	January 28, 2017			January 30, 2016
	(millions)
Deferred tax assets
Post employment and postretirement benefits	$	405		$	536
Accrued liabilities accounted for on a cash basis for tax purposes	379			340
Long-term debt	63			73
Unrecognized state tax benefits and accrued interest	76			79
State operating loss and credit carryforwards	79			82
Other	347			206
Valuation allowance	(36		)	(27		)
Total deferred tax assets	1,313			1,289
Deferred tax liabilities
Excess of book basis over tax basis of property and equipment	(1,381		)	(1,485		)
Merchandise inventories	(604		)	(606		)
Intangible assets	(380		)	(345		)
Other	(391		)	(330		)
Total deferred tax liabilities	(2,756		)	(2,766		)
Net deferred tax liability	$	(1,443	)	$	(1,477	)

Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



	January 28, 2017			January 30, 2016			January 31, 2015
	(millions)
Balance, beginning of year	$	178		$	172		$	189
Additions based on tax positions related to the current year	16			30			33
Additions for tax positions of prior years	—			—			—
Reductions for tax positions of prior years	(12		)	(7		)	(15		)
Settlements	(4		)	(3		)	(23		)
Statute expirations	(11		)	(14		)	(12		)
Balance, end of year	$	167		$	178		$	172
Amounts recognized in the Consolidated Balance Sheets at January 28, 2017, January 30, 2016 and January 31, 2015
Current income taxes	$	6		$	12		$	11
Long-term deferred income taxes	4			5			6
Other liabilities	157			161			155
	$	167		$	178		$	172