Income Taxes (Tables)

12 Months Ended

Jan. 30, 2021

Income Taxes [Abstract]

Domestic and International Pre-Tax Income

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

($ in millions)	2020		2019		2018
Domestic	$	647	$	591	$	629
International		(153)		81		84
Total pre-tax income	$	494	$	672	$	713

Income Tax Provision

The income tax provision consists of the following:

($ in millions)	2020		2019		2018
Current:
Federal	$	114	$	106	$	91
State and local		43		39		42
International		23		31		30
Total current tax provision		180		176		163
Deferred:
Federal		6		(1)		(4)
State and local		(2)		—		1
International		(13)		6		12
Total deferred tax (benefit) provision		(9)		5		9
Total income tax provision	$	171	$	181	$	172

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

	2020		2019		2018
Federal statutory income tax rate	21.0	%	21.0	%	21.0	%
Deemed repatriation tax	—		—		(2.7)
Increase in valuation allowance	6.3		1.0		2.4
State and local income taxes, net of federal tax benefit	6.6		4.5		4.7
International income taxed at varying rates	4.3		1.9		1.6
Foreign tax credits	(2.4)		(2.0)		(2.1)
Domestic/foreign tax settlements	(0.5)		—		(0.7)
Federal tax credits	(0.4)		(0.2)		(0.2)
Other, net	(0.4)		0.8		0.1
Effective income tax rate	34.5	%	27.0	%	24.1	%

Significant Portions of Deferred Tax Accounts

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

($ in millions)	2020		2019
Deferred tax assets:
Tax loss/credit carryforwards and capital loss	$	120	$	54
Employee benefits		52		40
Property and equipment		13		30
Goodwill and other intangible assets		—		14
Operating leases - liabilities		811		844
Other		39		29
Total deferred tax assets	$	1,035	$	1,011
Valuation allowance		(76)		(39)
Total deferred tax assets, net	$	959	$	972
Deferred tax liabilities:
Merchandise inventories	$	62	$	86
Operating leases - assets		746		794
Goodwill and other intangible assets		13		—
Net investment gains		46		—
Other		9		13
Total deferred tax liabilities	$	876	$	893
Net deferred tax asset	$	83	$	79
Balance Sheet caption reported in:
Deferred taxes	$	101	$	81
Other liabilities		(18)		(2)
	$	83	$	79

Unrecognized Tax Benefits Activity

($ in millions)	2020		2019		2018
Unrecognized tax benefits at beginning of year	$	45	$	34	$	44
Foreign currency translation adjustments		3		(1)		(3)
Increases related to current year tax positions		2		3		2
Increases related to prior period tax positions		3		12		9
Decreases related to prior period tax positions		—		—		(13)
Settlements		(1)		(2)		(3)
Lapse of statute of limitations		(5)		(1)		(2)
Unrecognized tax benefits at end of year	$	47	$	45	$	34