Annual report [Section 13 and 15(d), not S-K Item 405]

Taxes (Tables)

Taxes (Tables)

12 Months Ended

Jan. 31, 2026

Schedule of Income Tax Expense (Benefit)

Income tax expense (benefit) is as follows:


	2025						2024						2023
	Current		Deferred		Total		Current		Deferred		Total		Current		Deferred		Total
	(millions)
Federal	$	116	$	55	$	171	$	203	$	(50)	$	153	$	189	$	(193)	$	(4)
Foreign	1		—		1		—		—		—		(1)		—		(1)
State and local	28		8		36		30		(2)		28		54		(51)		3
	$	145	$	62	$	207	$	233	$	(52)	$	181	$	242	$	(244)	$	(2)

Schedule of Effective Income Tax Reconciliation

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


	2025				2024				2023


	Tax		Rate		Tax		Rate		Tax		Rate
	(dollars in millions)
Expected tax	$	178	21.0	%	$	160	21.0	%	$	9	21.0	%
State and local income taxes, net of federal income taxes (a)	29		3.4	%	26		3.4	%	2		4.7	%
Foreign tax	—		—	%	(1)		(0.1)	%	(2)		(4.7)	%
Federal tax credits	(11)		(1.3)	%	(8)		(1.0)	%	(13)		(30.2)	%

Change in unrecognized tax benefits	(2)		(0.2)	%	(4)		(0.5)	%	(1)		(2.3)	%
Tax impact of equity awards	12		1.4	%	5		0.7	%	(1)		(2.3)	%
Other	1		0.1	%	3		0.3	%	4		9.2	%
	$	207	24.4	%	$	181	23.8	%	$	(2)	(4.6)	%

(a) State taxes in California, New York and New Jersey made up the majority (greater than 50 percent) of the tax effect in this category.

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 31, 2026		February 1, 2025
	(millions)
Deferred tax assets
Post employment and postretirement benefits	$	—	$	1
Accrued liabilities accounted for on a cash basis for tax purposes	105		94
Lease liabilities	844		888
Unrecognized state tax benefits and accrued interest	20		21
State operating loss and credit carryforwards	67		110
Other	60		98
Valuation allowance	(43)		(85)
Total deferred tax assets	1,053		1,127
Deferred tax liabilities
Excess of book basis over tax basis of property and equipment	(760)		(755)
Right of use assets	(576)		(605)
Merchandise inventories	(366)		(348)
Intangible assets	(114)		(115)
Post employment and postretirement benefits	(18)		—
Other	(24)		(28)
Total deferred tax liabilities	(1,858)		(1,851)
Net deferred tax liability	$	(805)	$	(724)

Schedule of Unrecognized Tax Benefits Roll Forward

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


	January 31, 2026		February 1, 2025		February 3, 2024
	(millions)
Balance, beginning of year	$	69	$	76	$	80
Additions based on tax positions related to the current year	15		11		10

Reductions for tax positions of prior years	(6)		(4)		(2)
Settlements	(3)		(1)		—
Statute expirations	(12)		(13)		(12)
Balance, end of year	$	63	$	69	$	76
Amounts recognized in the Consolidated Balance Sheets
Current income taxes	$	4	$	3	$	4
Deferred income taxes	—		—		1
Other liabilities (b)	59		66		71
	$	63	$	69	$	76


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

Schedule of Unrecognized Benefits and Related Interest and Penalties

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


	January 31, 2026		February 1, 2025
	(millions)
Amount of unrecognized tax benefits, net of deferred tax assets, that if recognized would affect the effective tax rate	$	50	$	55
Accrued federal, state and local interest and penalties	26		25
Amounts recognized in the Consolidated Balance Sheets
Current income taxes	9		5
Other liabilities	17		20

Schedule of Cash Flow, Supplemental Disclosures

Cash paid for income taxes, net of refunds, is as follows:


	2025		2024		2023
	(millions)
Federal	$	41	$	236	$	185
Foreign	—		—		—
State and Local
California	10		21		*
New York State	5		16		17
New York City	3		*		*
Other	11		31		38
Total payments, net of refunds	$	70	$	304	$	240

* Jurisdiction was below 5 percent of total payments, net for the period presented.