Annual report pursuant to Section 13 and 15(d)

Taxes (Tables)

Taxes (Tables)

12 Months Ended

Jan. 28, 2023

Schedule of Income Tax Expense (Benefit)

Income tax expense (benefit) is as follows:


	2022						2021						2020
	Current		Deferred		Total		Current		Deferred		Total		Current		Deferred		Total
	(millions)
Federal	$	361	$	(56)	$	305	$	369	$	(21)	$	348	$	(520)	$	(179)	$	(699)
State and local	18		18		36		48		40		88		1		(148)		(147)
	$	379	$	(38)	$	341	$	417	$	19	$	436	$	(519)	$	(327)	$	(846)

Schedule of Effective Income Tax Reconciliation

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


	2022		2021		2020
	(millions)
Expected tax	$	319	$	392	$	(1,006)
State and local income taxes, net of federal income taxes (a)	23		84		(140)
CARES Act carryback benefit	—		(29)		(205)
Goodwill impact	—		—		492
Tax impact of equity awards	—		—		8
Federal tax credits	(4)		(3)		(5)
Change in valuation allowance	5		(15)		24
Other	(2)		7		(14)
	$	341	$	436	$	(846)


(a)			2022 includes an income tax benefit from the favorable resolution of state income tax litigation.

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 28, 2023		January 29, 2022
	(millions)
Deferred tax assets
Post employment and postretirement benefits	$	50	$	48
Accrued liabilities accounted for on a cash basis for tax purposes	112		100
Lease liabilities	881		917
Unrecognized state tax benefits and accrued interest	22		38
State operating loss and credit carryforwards	132		152
Other	112		95
Valuation allowance	(94)		(89)
Total deferred tax assets	1,215		1,261
Deferred tax liabilities
Excess of book basis over tax basis of property and equipment	(872)		(914)
Right of use assets	(717)		(751)
Merchandise inventories	(351)		(300)
Intangible assets	(116)		(116)
Other	(106)		(163)
Total deferred tax liabilities	(2,162)		(2,244)
Net deferred tax liability	$	(947)	$	(983)

Schedule of Unrecognized Tax Benefits Roll Forward

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


	January 28, 2023		January 29, 2022		January 30, 2021
	(millions)
Balance, beginning of year	$	102	$	113	$	133
Additions based on tax positions related to the current year	13		12		9

Reductions for tax positions of prior years	(20)		(11)		(13)
Settlements	(4)		(2)		(4)
Statute expirations	(11)		(10)		(12)
Balance, end of year	$	80	$	102	$	113
Amounts recognized in the Consolidated Balance Sheets
Current income taxes	$	4	$	14	$	6
Deferred income taxes	1		3		3
Other liabilities (b)	75		85		104
	$	80	$	102	$	113


(b)			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 28, 2023		January 29, 2022
	(millions)
Amount of unrecognized tax benefits, net of deferred tax assets, that if recognized would affect the effective tax rate	$	63	$	81
Accrued federal, state and local interest and penalties	23		65
Amounts recognized in the Consolidated Balance Sheets
Current income taxes	4		32
Other liabilities	19		33