Annual report pursuant to Section 13 and 15(d)

Taxes (Tables)

v3.19.1
Taxes (Tables)
12 Months Ended
Feb. 02, 2019
Taxes Payable [Abstract]  
Schedule of Income Tax Expense (Benefit)
Income tax expense (benefit) is as follows:
 
 
2018
 
2017
 
2016
 
Current
 
Deferred
 
Total
 
Current
 
Deferred
 
Total
 
Current
 
Deferred
 
Total
 
(millions)
Federal
$
156

 
$
79

 
$
235

 
$
367

 
$
(462
)
 
$
(95
)
 
$
433

 
$
(121
)
 
$
312

State and local
53

 
34

 
87

 
16

 
40

 
56

 
37

 
(3
)
 
34

 
$
209

 
$
113

 
$
322

 
$
383

 
$
(422
)
 
$
(39
)
 
$
470

 
$
(124
)
 
$
346

Schedule of Effective Income Tax Reconciliation
The reasons for this difference and their tax effects are as follows:
 
 
2018
 
2017
 
2016
 
(millions)
Expected tax
$
300

 
$
515

 
$
341

State and local income taxes, net of federal income tax benefit (a)
59

 
19

 
12

Federal tax reform deferred tax remeasurement
(17
)
 
(584
)
 

Tax impact of equity awards (a)

 
14

 

Federal tax credits
(16
)
 
(16
)
 
(12
)
Change in valuation allowance
10

 
18

 
9

Other
(14
)
 
(5
)
 
(4
)
 
$
322

 
$
(39
)
 
$
346

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 2,
2019
 
February 3,
2018
 
(millions)
Deferred tax assets
 
 
 
Post employment and postretirement benefits
$
208

 
$
188

Accrued liabilities accounted for on a cash basis for tax purposes
222

 
218

Long-term debt
18

 
25

Unrecognized state tax benefits and accrued interest
39

 
39

State operating loss and credit carryforwards
103

 
101

Other
154

 
158

Valuation allowance
(75
)
 
(65
)
Total deferred tax assets
669

 
664

Deferred tax liabilities
 
 
 
Excess of book basis over tax basis of property and equipment
(987
)
 
(923
)
Merchandise inventories
(398
)
 
(389
)
Intangible assets
(308
)
 
(276
)
Other
(214
)
 
(224
)
Total deferred tax liabilities
(1,907
)
 
(1,812
)
Net deferred tax liability
$
(1,238
)
 
$
(1,148
)
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 
 
February 2,
2019
 
February 3,
2018
 
January 28,
2017
 
(millions)
Balance, beginning of year
$
140

 
$
167

 
$
178

Additions based on tax positions related to the current year
17

 
7

 
16

Additions for tax positions of prior years
13

 

 

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

 
(2
)
 
(4
)
Statute expirations
(9
)
 
(9
)
 
(11
)
Balance, end of year
$
149

 
$
140

 
$
167

Amounts recognized in the Consolidated Balance Sheets
 
 
 
 
 
Current income taxes
$
28

 
$
11

 
$
6

Deferred income taxes
4

 
4

 
4

Other liabilities (a)
117

 
125

 
157

 
$
149

 
$
140

 
$
167


(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 2,
2019
 
February 3,
2018
 
 
(millions)
Amount of unrecognized tax benefits, net of deferred tax assets, that if recognized would affect the effective tax rate
$
120

 
$
111

 
Accrued federal, state and local interest and penalties
56

 
51

 
Amounts recognized in the Consolidated Balance Sheets
 
 
 
 
Current income taxes
28

 
27

 
Other liabilities
28

 
24