Income Taxes	6 Months Ended
Aug. 01, 2020
Income Taxes [Abstract]
Income Taxes	15. Income Taxes For the thirteen and twenty-six weeks ended August 1, 2020, we recorded income tax expense of $25 million and $30 million, respectively, and represented an effective tax rate of 35.4 percent and negative 85.5 percent on a pretax income and pretax loss, respectively. The effective tax rates were adversely impacted by valuation allowances related to losses in certain foreign jurisdictions. Additionally, in the first quarter we recorded a $27 million tax charge related to the revaluation of certain intellectual property rights pursuant to a non-U.S. advance pricing agreement. Due to the improved financial outlook during the second quarter of 2020, we reversed $2 million of the revaluation charge. We have historically calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the full fiscal year income, excluding unusual or infrequently occurring discrete items, for the reporting period. In accordance with the authoritative guidance, we used a discrete effective tax rate method to calculate income taxes for the first quarter of 2020 because small changes in the estimated level and mix of annual income or loss by jurisdiction would result in significant changes in the estimated annual effective tax rate making the historical method unreliable. However, during the second quarter we returned to the historical practice of using an annual effective rate. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law in the U.S. to provide certain relief as a result of the COVID-19 pandemic. In addition, governments around the world enacted or implemented various forms of tax relief measures in response to the economic conditions in the wake of COVID-19. We are required to recognize the effects of tax law changes in the period of enactment. We have assessed the applicability of the CARES Act and changes to income tax laws or regulations in other jurisdictions and determined there is no significant affect to our income tax provision for the twenty-six weeks ended August 1, 2020. We continue to assess the effect of the CARES Act and ongoing government guidance related to COVID-19 that may be issued.

Income Taxes

6 Months Ended

Aug. 01, 2020

15. Income Taxes

For the thirteen and twenty-six weeks ended August 1, 2020, we recorded income tax expense of $25 million and $30 million, respectively, and represented an effective tax rate of 35.4 percent and negative 85.5 percent on a pretax income and pretax loss, respectively. The effective tax rates were adversely impacted by valuation allowances related to losses in certain foreign jurisdictions. Additionally, in the first quarter we recorded a $27 million tax charge related to the revaluation of certain intellectual property rights pursuant to a non-U.S. advance pricing agreement. Due to the improved financial outlook during the second quarter of 2020, we reversed $2 million of the revaluation charge.

We have historically calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the full fiscal year income, excluding unusual or infrequently occurring discrete items, for the reporting period. In accordance with the authoritative guidance, we used a discrete effective tax rate method to calculate income taxes for the first quarter of 2020 because small changes in the estimated level and mix of annual income or loss by jurisdiction would result in significant changes in the estimated annual effective tax rate making the historical method unreliable. However, during the second quarter we returned to the historical practice of using an annual effective rate.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law in the U.S. to provide certain relief as a result of the COVID-19 pandemic. In addition, governments around the world enacted or implemented various forms of tax relief measures in response to the economic conditions in the wake of COVID-19. We are required to recognize the effects of tax law changes in the period of enactment. We have assessed the applicability of the CARES Act and changes to income tax laws or regulations in other jurisdictions and determined there is no significant affect to our income tax provision for the twenty-six weeks ended August 1, 2020. We continue to assess the effect of the CARES Act and ongoing government guidance related to COVID-19 that may be issued.