Annual report pursuant to Section 13 and 15(d)

Taxes (Tables)

v3.21.1
Taxes (Tables)
12 Months Ended
Jan. 30, 2021
Taxes Payable Current And Noncurrent [Abstract]  
Schedule of Income Tax Expense (Benefit)

Income tax expense (benefit) is as follows:

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

Current

 

 

Deferred

 

 

Total

 

 

Current

 

 

Deferred

 

 

Total

 

 

Current

 

 

Deferred

 

 

Total

 

 

 

(millions)

 

Federal

 

$

(520

)

 

$

(179

)

 

$

(699

)

 

$

137

 

 

$

4

 

 

$

141

 

 

$

156

 

 

$

79

 

 

$

235

 

State and local

 

 

1

 

 

 

(148

)

 

 

(147

)

 

 

33

 

 

 

(10

)

 

 

23

 

 

 

54

 

 

 

33

 

 

 

87

 

 

 

$

(519

)

 

$

(327

)

 

$

(846

)

 

$

170

 

 

$

(6

)

 

$

164

 

 

$

210

 

 

$

112

 

 

$

322

 

Schedule of Effective Income Tax Reconciliation The reasons for this difference and their tax effects are as follows:

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

(millions)

 

Expected tax

 

$

(1,006

)

 

$

153

 

 

$

300

 

State and local income taxes, net of federal income taxes

 

 

(140

)

 

 

13

 

 

 

59

 

CARES Act carryback benefit

 

 

(205

)

 

 

 

 

 

 

Goodwill impact

 

 

492

 

 

 

 

 

 

 

Federal tax reform deferred tax remeasurement

 

 

 

 

 

 

 

 

(17

)

Tax impact of equity awards

 

 

8

 

 

 

1

 

 

 

 

Federal tax credits

 

 

(5

)

 

 

(3

)

 

 

(16

)

Change in valuation allowance

 

 

24

 

 

 

5

 

 

 

10

 

Other

 

 

(14

)

 

 

(5

)

 

 

(14

)

 

 

$

(846

)

 

$

164

 

 

$

322

 

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 30,

 

 

February 1,

 

 

 

2021

 

 

2020

 

 

 

(millions)

 

Deferred tax assets

 

 

 

 

 

 

 

 

Post employment and postretirement benefits

 

$

126

 

 

$

210

 

Accrued liabilities accounted for on a cash basis for tax purposes

 

 

103

 

 

 

165

 

Lease liabilities

 

 

937

 

 

 

864

 

Unrecognized state tax benefits and accrued interest

 

 

39

 

 

 

40

 

State operating loss and credit carryforwards

 

 

194

 

 

 

102

 

Other

 

 

95

 

 

 

110

 

Valuation allowance

 

 

(104

)

 

 

(80

)

Total deferred tax assets

 

 

1,390

 

 

 

1,411

 

Deferred tax liabilities

 

 

 

 

 

 

 

 

Excess of book basis over tax basis of property and equipment

 

 

(937

)

 

 

(988

)

Right of use assets

 

 

(766

)

 

 

(707

)

Merchandise inventories

 

 

(300

)

 

 

(365

)

Intangible assets

 

 

(115

)

 

 

(309

)

Other

 

 

(180

)

 

 

(211

)

Total deferred tax liabilities

 

 

(2,298

)

 

 

(2,580

)

Net deferred tax liability

 

$

(908

)

 

$

(1,169

)

 

Schedule of Unrecognized Tax Benefits Roll Forward

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

 

 

 

January 30,

 

 

February 1,

 

 

February 2,

 

 

 

2021

 

 

2020

 

 

2019

 

 

 

(millions)

 

Balance, beginning of year

 

$

133

 

 

$

149

 

 

$

140

 

Additions based on tax positions related to the current year

 

 

9

 

 

 

18

 

 

 

17

 

Additions for tax positions of prior years

 

 

 

 

 

11

 

 

 

13

 

Reductions for tax positions of prior years

 

 

(13

)

 

 

(20

)

 

 

(12

)

Settlements

 

 

(4

)

 

 

(16

)

 

 

 

Statute expirations

 

 

(12

)

 

 

(9

)

 

 

(9

)

Balance, end of year

 

$

113

 

 

$

133

 

 

$

149

 

Amounts recognized in the Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

 

 

 

Current income taxes

 

$

6

 

 

$

12

 

 

$

28

 

Deferred income taxes

 

 

3

 

 

 

4

 

 

 

4

 

Other liabilities (a)

 

 

104

 

 

 

117

 

 

 

117

 

 

 

$

113

 

 

$

133

 

 

$

149

 

 

(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:

 

 

 

January 30,

 

 

February 1,

 

 

 

2021

 

 

2020

 

 

 

(millions)

 

Amount of unrecognized tax benefits, net of deferred tax assets, that if

   recognized would affect the effective tax rate

 

$

90

 

 

$

106

 

Accrued federal, state and local interest and penalties

 

 

60

 

 

 

60

 

Amounts recognized in the Consolidated Balance Sheets

 

 

 

 

 

 

 

 

Current income taxes

 

 

3

 

 

 

4

 

Other liabilities

 

 

57

 

 

 

56