Annual report pursuant to Section 13 and 15(d)

Taxes (Tables)

v3.20.1
Taxes (Tables)
12 Months Ended
Feb. 01, 2020
Taxes Payable [Abstract]  
Schedule of Income Tax Expense (Benefit)
Income tax expense (benefit) is as follows:
 
 
2019
 
2018
 
2017
 
Current
 
Deferred
 
Total
 
Current
 
Deferred
 
Total
 
Current
 
Deferred
 
Total
 
(millions)
Federal
$
137

 
$
4

 
$
141

 
$
156

 
$
79

 
$
235

 
$
367

 
$
(462
)
 
$
(95
)
State and local
33

 
(10
)
 
23

 
54

 
33

 
87

 
15

 
41

 
56

 
$
170

 
$
(6
)
 
$
164

 
$
210

 
$
112

 
$
322

 
$
382

 
$
(421
)
 
$
(39
)

Schedule of Effective Income Tax Reconciliation The reasons for this difference and their tax effects are as follows:
 
 
2019
 
2018
 
2017
 
(millions)
Expected tax
$
153

 
$
300

 
$
515

State and local income taxes, net of federal income tax benefit (a)
13

 
59

 
19

Federal tax reform deferred tax remeasurement

 
(17
)
 
(584
)
Tax impact of equity awards (a)
1

 

 
14

Federal tax credits
(3
)
 
(16
)
 
(16
)
Change in valuation allowance
5

 
10

 
18

Other
(5
)
 
(14
)
 
(5
)
 
$
164

 
$
322

 
$
(39
)

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:
 
 
February 1,
2020
 
February 2,
2019
 
(millions)
Deferred tax assets
 
 
 
Post employment and postretirement benefits
$
210

 
$
208

Accrued liabilities accounted for on a cash basis for tax purposes
165

 
222

Lease liabilities
864

 

Unrecognized state tax benefits and accrued interest
40

 
39

State operating loss and credit carryforwards
102

 
103

Other
110

 
172

Valuation allowance
(80
)
 
(75
)
Total deferred tax assets
1,411

 
669

Deferred tax liabilities
 
 
 
Excess of book basis over tax basis of property and equipment
(988
)
 
(987
)
Right of use assets
(707
)
 

Merchandise inventories
(365
)
 
(398
)
Intangible assets
(309
)
 
(308
)
Other
(211
)
 
(214
)
Total deferred tax liabilities
(2,580
)
 
(1,907
)
Net deferred tax liability
$
(1,169
)
 
$
(1,238
)

Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 
 
February 1,
2020
 
February 2,
2019
 
February 3,
2018
 
(millions)
Balance, beginning of year
$
149

 
$
140

 
$
167

Additions based on tax positions related to the current year
18

 
17

 
7

Additions for tax positions of prior years
11

 
13

 

Reductions for tax positions of prior years
(20
)
 
(12
)
 
(23
)
Settlements
(16
)
 

 
(2
)
Statute expirations
(9
)
 
(9
)
 
(9
)
Balance, end of year
$
133

 
$
149

 
$
140

Amounts recognized in the Consolidated Balance Sheets
 
 
 
 
 
Current income taxes
$
12

 
$
28

 
$
11

Deferred income taxes
4

 
4

 
4

Other liabilities (a)
117

 
117

 
125

 
$
133

 
$
149

 
$
140


(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:

 
February 1,
2020
 
February 2,
2019
 
 
(millions)
Amount of unrecognized tax benefits, net of deferred tax assets, that if recognized would affect the effective tax rate
$
106

 
$
120

 
Accrued federal, state and local interest and penalties
60

 
56

 
Amounts recognized in the Consolidated Balance Sheets
 
 
 
 
Current income taxes
4

 
28

 
Other liabilities
56

 
28