Income Taxes (Tables)

12 Months Ended

Feb. 01, 2020

Income Taxes [Abstract]

Domestic and International Pre-Tax Income

The domestic and international components of pre-tax income are as follows:

	2019		2018		2017
	($ in millions)
Domestic	$	591	$	629	$	432
International		81		84		146
Total pre-tax income	$	672	$	713	$	578

Income Tax Provision

The income tax provision consists of the following:

	2019		2018		2017
Current:	($ in millions)
Federal	$	106	$	91	$	129
State and local		39		42		18
International		31		30		42
Total current tax provision		176		163		189
Deferred:
Federal		(1)		(4)		98
State and local		—		1		5
International		6		12		2
Total deferred tax provision		5		9		105
Total income tax provision	$	181	$	172	$	294

Reconciliation of Significant Differences between Federal Statutory Income Tax Rate and Effective Income Tax Rate on Pre-Tax Income from Continuing Operations

A reconciliation of the significant differences between the federal statutory income tax rate and the effective income tax rate on pre-tax income is as follows:

	2019		2018		2017
Federal statutory income tax rate (1)	21.0	%	21.0	%	33.7	%
Deemed repatriation tax	—		(2.7)		17.1
Increase in valuation allowance	1.0		2.4		1.6
State and local income taxes, net of federal tax benefit	4.5		4.7		2.0
International income taxed at varying rates	1.9		1.6		(2.3)
Foreign tax credits	(2.0)		(2.1)		(2.6)
Domestic/foreign tax settlements	—		(0.7)		(0.2)
Federal tax credits	(0.2)		(0.2)		(0.2)
Other, net	0.8		0.1		1.7
Effective income tax rate	27.0	%	24.1	%	50.8	%

(1) In accordance with Section 15 of the Internal Revenue Code, the tax rate for 2017 represented a blended rate of 33.7 percent, calculated by applying a prorated percentage of the number of days prior to and subsequent to the January 1, 2018 effective date.

Significant Portions of Deferred Tax Accounts

Items that give rise to significant portions of our deferred tax assets and liabilities are as follows:2019

Unrecognized Tax Benefits Activity

	2019		2018		2017
	($ in millions)
Unrecognized tax benefits at beginning of year	$	34	$	44	$	38
Foreign currency translation adjustments		(1)		(3)		4
Increases related to current year tax positions		3		2		3
Increases related to prior period tax positions		12		9		1
Decreases related to prior period tax positions		—		(13)		—
Settlements		(2)		(3)		(1)
Lapse of statute of limitations		(1)		(2)		(1)
Unrecognized tax benefits at end of year	$	45	$	34	$	44