Annual report pursuant to Section 13 and 15(d)

Taxes (Tables)

Taxes (Tables)

12 Months Ended

Jan. 31, 2015

Schedule of Income Tax Expense (Benefit)

Income tax expense is as follows:



	2014							2013							2012
	Current		Deferred			Total		Current		Deferred			Total		Current		Deferred			Total
	(millions)
Federal	$	767	$	5		$	772	$	859	$	(98	)	$	761	$	697	$	2		$	699
State and local	95		(3		)	92		107		(64		)	43		70		(2		)	68
	$	862	$	2		$	864	$	966	$	(162	)	$	804	$	767	$	—		$	767

Schedule of Effective Income Tax Reconciliation

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



	2014			2013			2012
	(millions)
Expected tax	$	836		$	801		$	736
State and local income taxes, net of federal income tax benefit	59			45			47
Historic rehabilitation tax credit	(20		)	(16		)	—
Change in valuation allowance	1			(16		)	(2		)
Other	(12		)	(10		)	(14		)
	$	864		$	804		$	767

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, 2015			February 1, 2014
	(millions)
Deferred tax assets
Post employment and postretirement benefits	$	586		$	392
Accrued liabilities accounted for on a cash basis for tax purposes	320			289
Long-term debt	83			90
Unrecognized state tax benefits and accrued interest	76			84
State operating loss and credit carryforwards	80			79
Other	160			160
Valuation allowance	(24		)	(23		)
Total deferred tax assets	1,281			1,071
Deferred tax liabilities
Excess of book basis over tax basis of property and equipment	(1,510		)	(1,569		)
Merchandise inventories	(585		)	(587		)
Intangible assets	(294		)	(263		)
Post employment benefits	—			(28		)
Other	(335		)	(297		)
Total deferred tax liabilities	(2,724		)	(2,744		)
Net deferred tax liability	$	(1,443	)	$	(1,673	)

Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

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



	January 31, 2015			February 1, 2014			February 2, 2013
	(millions)
Balance, beginning of year	$	189		$	170		$	179
Additions based on tax positions related to the current year	33			37			18
Additions for tax positions of prior years	—			—			18
Reductions for tax positions of prior years	(15		)	(1		)	(19		)
Settlements	(23		)	(1		)	(9		)
Statute expirations	(12		)	(16		)	(17		)
Balance, end of year	$	172		$	189		$	170
Amounts recognized in the Consolidated Balance Sheets at January 31, 2015, February 1, 2014 and February 2, 2013
Current income taxes	$	11		$	31		$	20
Long-term deferred income taxes	6			11			23
Other liabilities	155			147			127
	$	172		$	189		$	170