XML 30 R13.htm IDEA: XBRL DOCUMENT v3.22.1
Income Taxes
 12 Months Ended
Jan. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
Provision for Income Taxes
The following table presents our earnings before the provision for income taxes:
in millionsFiscalFiscalFiscal
202120202019
United States$20,320 $16,013 $13,770 
Foreign1,417 965 945 
Total$21,737 $16,978 $14,715 
The following table presents our provision for income taxes:
in millionsFiscalFiscalFiscal
202120202019
Current:
Federal$4,066 $3,462 $2,370 
State981 928 572 
Foreign511 329 340 
Total current5,558 4,719 3,282 
Deferred:
Federal(155)(404)259 
State(11)(209)(72)
Foreign(88)6 4 
Total deferred(254)(607)191 
Provision for income taxes$5,304 $4,112 $3,473 
The following table presents our combined federal, state, and foreign effective tax rates:
FiscalFiscalFiscal
202120202019
Combined federal, state, and foreign effective tax rates24.4 %24.2 %23.6 %
The following table presents the reconciliation of our provision for income taxes at the federal statutory rate of 21% to the actual tax expense:
in millionsFiscalFiscalFiscal
202120202019
Income taxes at federal statutory rate$4,565 $3,565 $3,090 
State income taxes, net of federal income tax benefit766 568 395 
Other, net(27)(21)(12)
Total$5,304 $4,112 $3,473 
Deferred Taxes
The following table presents the tax effects of temporary differences that give rise to significant portions of our deferred tax assets and deferred tax liabilities:
in millionsJanuary 30,
2022		January 31,
2021
Assets:
Deferred compensation$471 $472 
Accrued self-insurance liabilities272 291 
State income taxes138 117 
Merchandise inventories— 41 
Non-deductible reserves250 199 
Net operating losses150 144 
Lease liabilities1,528 1,605 
Deferred revenue121 51 
Other67 104 
Total deferred tax assets2,997 3,024 
Valuation allowance(10)(8)
Total deferred tax assets, net of valuation allowance2,987 3,016 
Liabilities:
Merchandise inventories(14)— 
Property and equipment(902)(1,061)
Goodwill and other intangibles(985)(1,030)
Lease right-of-use assets(1,473)(1,555)
Tax on unremitted earnings(74)(119)
Other(104)(77)
Total deferred tax liabilities(3,552)(3,842)
Net deferred tax liabilities$(565)$(826)
The following table presents our noncurrent deferred tax assets and noncurrent deferred tax liabilities, netted by tax jurisdiction, as presented on the consolidated balance sheets:
in millionsJanuary 30,
2022		January 31,
2021
Other assets$344 $305 
Deferred income taxes(909)(1,131)
Net deferred tax liabilities$(565)$(826)
As of January 30, 2022, we recorded deferred tax assets of $150 million for net operating losses, primarily related to state jurisdictions. These losses expire at various dates beginning in 2022. We have concluded that it is more likely than not that tax benefits related to substantially all net operating losses will be realized based upon the expectation that we will generate the necessary taxable income in future periods.
Reinvestment of Unremitted Earnings
Substantially all of our current year foreign cash earnings in excess of working capital and cash needed for strategic investments are not intended to be indefinitely reinvested offshore. Therefore, the tax effects of repatriation (including applicable state and local taxes and foreign withholding taxes) of such cash earnings have been provided for in the accompanying consolidated statements of earnings. We have the intent and ability to reinvest substantially all of the $3.4 billion of non-cash unremitted earnings of our non-U.S. subsidiaries indefinitely. Accordingly, no provision for state and local taxes or foreign withholding taxes was recorded on these unremitted earnings in the accompanying consolidated statements of earnings. It is impracticable for us to determine the amount of
unrecognized deferred tax liabilities on these indefinitely reinvested earnings due to the complexities associated with the hypothetical calculation.
Tax Return Examination Status
Our income tax returns are routinely examined by U.S. federal, state and local, and foreign tax authorities. As of January 30, 2022, the Company is no longer subject to U.S. federal examinations by tax authorities for years before fiscal 2010. Our U.S. federal tax returns for fiscal years 2010 through 2018, with the exception of 2015, are currently under examination by the IRS. With respect to the fiscal years 2010 to 2014, the IRS has issued a proposed adjustment relating to transfer pricing between our entities in the U.S. and China. We are defending our position using all available remedies. There are also ongoing U.S. state and local audits and other foreign audits covering fiscal years 2012 through 2019. We do not expect the results from any ongoing income tax audit to have a material impact on our consolidated financial condition, results of operations, or cash flows.
Over the next twelve months, it is reasonably possible that the resolution of federal and state tax examinations, as well as the expiration of statutes of limitations, could reduce our unrecognized tax benefits by an immaterial amount. We do not anticipate the resolution of these matters will result in a material change to our consolidated financial condition or results of operations.
Unrecognized Tax Benefits
The following table presents reconciliations of the beginning and ending amount of our gross unrecognized tax benefits:
in millionsFiscalFiscalFiscal
202120202019
Unrecognized tax benefits balance at beginning of fiscal year$540 $473 $494 
Additions based on tax positions related to the current year80 75 96 
Additions for tax positions of prior years24 72 82 
Reductions for tax positions of prior years(40)(53)(147)
Reductions due to settlements(29)(22)(13)
Reductions due to lapse of statute of limitations(5)(5)(39)
Unrecognized tax benefits balance at end of fiscal year$570 $540 $473 
Unrecognized tax benefits that if recognized would affect our annual effective income tax rate on net earnings were $479 million, $458 million, and $407 million at January 30, 2022, January 31, 2021, and February 2, 2020, respectively.
Interest and Penalties
Net adjustments to accruals for interest and penalties associated with uncertain tax positions were immaterial in fiscal 2021, fiscal 2020, and fiscal 2019. Our total accrued interest and penalties associated with uncertain tax positions were immaterial as of January 30, 2022 and January 31, 2021.