Annual report pursuant to Section 13 and 15(d)

Taxes (Tables)

Taxes (Tables)

12 Months Ended

Jan. 29, 2022

Taxes Payable Current And Noncurrent [Abstract]

Schedule of Income Tax Expense (Benefit)

Income tax expense (benefit) is as follows:

	2021							2020									2019
	Current		Deferred			Total		Current			Deferred			Total			Current		Deferred			Total
	(millions)
Federal	$	369	$	(21	)	$	348	$	(520	)	$	(179	)	$	(699	)	$	137	$	4		$	141
State and local		48		40			88		1			(148	)		(147	)		33		(10	)		23
	$	417	$	19		$	436	$	(519	)	$	(327	)	$	(846	)	$	170	$	(6	)	$	164

Schedule of Effective Income Tax Reconciliation

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

	2021			2020			2019
	(millions)
Expected tax	$	392		$	(1,006	)	$	153
State and local income taxes, net of federal income taxes		84			(140	)		13
CARES Act carryback benefit		(29	)		(205	)		—
Goodwill impact		—			492			—
Tax impact of equity awards		—			8			1
Federal tax credits		(3	)		(5	)		(3	)
Change in valuation allowance		(15	)		24			5
Other		7			(14	)		(5	)
	$	436		$	(846	)	$	164

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 29,			January 30,
	2022			2021
	(millions)
Deferred tax assets
Post employment and postretirement benefits	$	48		$	126
Accrued liabilities accounted for on a cash basis for tax purposes		100			103
Lease liabilities		917			937
Unrecognized state tax benefits and accrued interest		38			39
State operating loss and credit carryforwards		152			194
Other		95			95
Valuation allowance		(89	)		(104	)
Total deferred tax assets		1,261			1,390
Deferred tax liabilities
Excess of book basis over tax basis of property and equipment		(914	)		(937	)
Right of use assets		(751	)		(766	)
Merchandise inventories		(300	)		(300	)
Intangible assets		(116	)		(115	)
Other		(163	)		(180	)
Total deferred tax liabilities		(2,244	)		(2,298	)
Net deferred tax liability	$	(983	)	$	(908	)

Schedule of Unrecognized Tax Benefits Roll Forward

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

	January 29,			January 30,			February 1,
	2022			2021			2020
	(millions)
Balance, beginning of year	$	113		$	133		$	149
Additions based on tax positions related to the current year		12			9			18
Additions for tax positions of prior years		—			—			11
Reductions for tax positions of prior years		(11	)		(13	)		(20	)
Settlements		(2	)		(4	)		(16	)
Statute expirations		(10	)		(12	)		(9	)
Balance, end of year	$	102		$	113		$	133
Amounts recognized in the Consolidated Balance Sheets
Current income taxes	$	14		$	6		$	12
Deferred income taxes		3			3			4
Other liabilities (a)		85			104			117
	$	102		$	113		$	133

(a)	Unrecognized tax benefits not expected to be settled within one year are included within other liabilities on the Consolidated Balance Sheets.

Summary of Income Tax Contingencies

Additional information regarding unrecognized benefits and related interest and penalties is as follow:

	January 29,		January 30,
	2022		2021
	(millions)
Amount of unrecognized tax benefits, net of deferred tax assets, that if recognized would affect the effective tax rate	$	81	$	90
Accrued federal, state and local interest and penalties		65		60
Amounts recognized in the Consolidated Balance Sheets
Current income taxes		32		3
Other liabilities		33		57