Income Taxes (Tables)

12 Months Ended

Feb. 03, 2024

Income Tax Disclosure [Abstract]

Schedule of Components of Deferred Income Taxes

Deferred income taxes consist of the following:

(Dollars in Millions)	February 3, 2024	January 28, 2023
Deferred tax liabilities:
Property and equipment	$521	$542
Lease assets	1,151	1,140
Merchandise inventories	45	33
Total deferred tax liabilities	1,717	1,715
Deferred tax assets:
Lease obligations	1,468	1,448
Accrued and other liabilities, including stock-based compensation	200	201
Federal benefit on state tax reserves	21	26
Valuation allowance	(47)	(43)
Total deferred tax assets	1,642	1,632
Net deferred tax liability	$75	$83

Schedule of Components of Provision (Benefit) for Income Taxes

The components of the Provision (benefit) for income taxes were as follows:

(Dollars in Millions)	2023	2022	2021
Current federal	$78	$39	$311
Current state	(14)	6	63
Deferred federal	(18)	(70)	(59)
Deferred state	10	(14)	(34)
Provision (benefit) for income taxes	$56	$(39)	$281

Schedule of Items Affecting Statutory Corporate Tax Rate

The effective tax rate differs from the amount that would be provided by applying the statutory U.S. corporate tax rate due to the following items:

(Dollars in Millions)	2023	2022	2021
Taxes computed at federal statutory rate	$78	$(12)	$256
State income taxes, net of federal tax benefit	16	(1)	32
Federal NOL carryback	—	—	(4)
Uncertain tax positions	(28)	(16)	7
Federal tax credits	(9)	(8)	(14)
Other	(1)	(2)	4
Total	$56	$(39)	$281
Effective tax rate	15.1%	68.1%	23.1%

Schedule of Reconciliation of Gross Amount of Unrecognized Tax Benefits

(Dollars in Millions)	2023	2022
Balance at beginning of year	$219	$276
Increases due to tax positions taken in prior years	10	1
Increases due to tax positions taken in current year	6	7
Decreases due to:
Tax positions taken in prior years	(32)	(57)
Settlements with taxing authorities	—	(2)
Lapse of applicable statute of limitations	(3)	(6)
Balance at end of year	$200	$219