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INCOME TAXES (Tables)

12 Months Ended

Jan. 29, 2023

Income Tax Disclosure [Abstract]

Components of earnings before provision for income taxes

The following table presents our earnings before the provision for income taxes:

in millions			Fiscal						Fiscal						Fiscal
			2022						2021						2020
United States			$	20,990					$	20,320					$	16,013
Foreign			1,487						1,417						965
Total			$	22,477					$	21,737					$	16,978

Components of provision for income taxes

The following table presents our provision for income taxes:

in millions			Fiscal						Fiscal						Fiscal
			2022						2021						2020
Current:
Federal			$	3,918					$	4,066					$	3,462
State			880						981						928
Foreign			436						511						329
Total current			5,234						5,558						4,719
Deferred:
Federal			102						(155)						(404)
State			61						(11)						(209)
Foreign			(25)						(88)						6
Total deferred			138						(254)						(607)
Provision for income taxes			$	5,372					$	5,304					$	4,112

Reconciliation of provision for income taxes

The following table presents our combined federal, state, and foreign effective tax rates:

			Fiscal						Fiscal						Fiscal
			2022						2021						2020
Combined federal, state, and foreign effective tax rates			23.9		%				24.4		%				24.2		%

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 millions			Fiscal						Fiscal						Fiscal
			2022						2021						2020
Income taxes at federal statutory rate			$	4,720					$	4,565					$	3,565
State income taxes, net of federal income tax benefit			743						766						568
Other, net			(91)						(27)						(21)
Total			$	5,372					$	5,304					$	4,112

On August 16, 2022, the Inflation Reduction Act of 2022 (“2022 Tax Act”) was enacted into law. The key tax provisions include a 15% minimum tax on adjusted financial statement income. We do not expect any impact to the Company’s effective tax rate as a result of the new 15% minimum tax under the 2022 Tax Act.

Tax effects of temporary differences

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 millions			January 29, 2023						January 30, 2022
Assets:
Deferred compensation			$	236					$	471
Accrued self-insurance liabilities			276						272
State income taxes			149						138
Merchandise inventories			30						—
Non-deductible reserves			318						250
Net operating losses			115						150
Lease liabilities			1,879						1,528
Deferred revenue			148						121
Other			56						67
Total deferred tax assets			3,207						2,997
Valuation allowance			(5)						(10)
Total deferred tax assets, net of valuation allowance			3,202						2,987
Liabilities:
Merchandise inventories			—						(14)
Property and equipment			(992)						(902)
Goodwill and other intangibles			(953)						(985)
Lease right-of-use assets			(1,799)						(1,473)
Tax on unremitted earnings			(63)						(74)
Other			(95)						(104)
Total deferred tax liabilities			(3,902)						(3,552)
Net deferred tax liabilities			$	(700)					$	(565)

Schedule of tax balance sheet accounts

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 millions			Consolidated Balance Sheet Classification						January 29, 2023						January 30, 2022
Deferred tax assets			Other assets						$	319					$	344
Deferred tax liabilities			Deferred income taxes						(1,019)						(909)
Net deferred tax liabilities									$	(700)					$	(565)

Schedule of unrecognized tax benefits

The following table reconciles the beginning and ending amount of our gross unrecognized tax benefits:

in millions			Fiscal						Fiscal						Fiscal
			2022						2021						2020
Unrecognized tax benefits balance at beginning of fiscal year			$	570					$	540					$	473
Additions based on tax positions related to the current year			75						80						75
Additions for tax positions of prior years			22						24						72
Reductions for tax positions of prior years			(7)						(40)						(53)
Reductions due to settlements			(1)						(29)						(22)
Reductions due to lapse of statute of limitations			(16)						(5)						(5)
Unrecognized tax benefits balance at end of fiscal year			$	643					$	570					$	540

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