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Income Taxes | 12 Months Ended
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Jan. 31, 2015
Income Taxes | Note L. Income Taxes For financial reporting purposes, components of income before income taxes are as follows:
|  | Fiscal Year Ended |
In thousands |  | January 31, 2015 |  |  | February 1, 2014 |  |  | February 2, 2013 |
|  | (53 weeks) |
United States |  | $ | 2,943,745 |  |  | $ | 2,746,925 |  |  | $ | 2,517,696 |
Foreign |  |  | 606,139 |  |  |  | 572,564 |  |  |  | 559,655 |
Income before provision for income taxes |  | $ | 3,549,884 |  |  | $ | 3,319,489 |  |  | $ | 3,077,351 |
The provision for income taxes includes the following:
|  | Fiscal Year Ended |
In thousands |  | January 31, 2015 |  |  | February 1, 2014 |  |  | February 2, 2013 |
|  | (53 weeks) |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 896,672 |  |  | $ | 815,811 |  |  | $ | 842,149 |
State |  |  | 180,616 |  |  |  | 177,009 |  |  |  | 162,200 |
Foreign |  |  | 155,398 |  |  |  | 136,626 |  |  |  | 153,083 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 87,057 |  |  |  | 73,206 |  |  |  | 22,394 |
State |  |  | 14,231 |  |  |  | 5,928 |  |  |  | 1,583 |
Foreign |  |  | 782 |  |  |  | (26,487 | ) |  |  | (10,745 | )
Provision for income taxes |  | $ | 1,334,756 |  |  | $ | 1,182,093 |  |  | $ | 1,170,664 |
TJX had net deferred tax (liabilities) assets as follows:
|  | Fiscal Year Ended |
In thousands |  | January 31, 2015 |  |  | February 1, 2014 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryforward |  | $ | 18,305 |  |  | $ | 25,711 |
Reserves for lease obligations and computer intrusion |  |  | 16,242 |  |  |  | 29,108 |
Pension, stock compensation, postretirement and employee benefits |  |  | 351,171 |  |  |  | 280,381 |
Leases |  |  | 47,464 |  |  |  | 43,966 |
Other |  |  | 74,451 |  |  |  | 66,984 |
Total gross deferred tax assets |  |  | 507,633 |  |  |  | 446,150 |
Valuation allowance |  |  | (5,122 | ) |  |  | (4,359 | )
Net deferred tax asset |  | $ | 502,511 |  |  | $ | 441,791 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property, plant and equipment |  | $ | 474,179 |  |  | $ | 432,262 |
Capitalized inventory |  |  | 50,536 |  |  |  | 48,612 |
Tradename/intangibles |  |  | 47,443 |  |  |  | 45,528 |
Undistributed foreign earnings |  |  | 181,822 |  |  |  | 217,916 |
Other |  |  | 8,884 |  |  |  | 10,397 |
Total deferred tax liabilities |  | $ | 762,864 |  |  | $ | 754,715 |
Net deferred tax (liability) |  | $ | (260,353 | ) |  | $ | (312,924 | )
Current asset |  | $ | 137,617 |  |  | $ | 101,639 |
Non-current asset |  |  | 24,546 |  |  |  | 31,508 |
Non-current liability |  |  | (422,516 | ) |  |  | (446,071 | )
Total |  | $ | (260,353 | ) |  | $ | (312,924 | )
TJX has provided for deferred U.S. taxes on all undistributed earnings through January 31, 2015 from its subsidiaries in Canada, Puerto Rico, Italy, India, Hong Kong, and Australia. For all other foreign subsidiaries, no income taxes have been provided on the approximately $566.6 million of undistributed earnings as of January 31, 2015 because such earnings are considered to be indefinitely reinvested in the business. A determination of the amount of unrecognized deferred tax liability related to the undistributed earnings is not practicable because of the complexities associated with the hypothetical calculations. As of January 31, 2015, TJX had available for state income tax purposes net operating loss carryforwards of $61.5 million which expire, if unused, in the years 2016 through 2034. As of February 1, 2014, TJX had available for state income tax purposes net operating loss carryforwards of $35.9 million. TJX has analyzed the realization of the state net operating loss carryforwards on an individual state basis. For those states where the Company has determined that it is more likely than not that the state net operating loss carryforwards will not be realized, a valuation allowance of $5.1 million has been provided for the deferred tax asset as of January 31, 2015, and $4.4 million as of February 1, 2014. As of January 31, 2015, TJX had available for foreign income tax purposes (primarily related to Germany and Poland) net operating loss carryforwards of $48.3 million, of which $2.8 million will expire, if unused, in the years 2016 through 2018. The remaining loss carryforwards do not expire. As of February 1, 2014, TJX had available for foreign income tax purposes (primarily related to Germany and Poland) net operating loss carryforwards of $77.1 million. The difference between the U.S. federal statutory income tax rate and TJX’s worldwide effective income tax rate is reconciled below:
|  | Fiscal Year Ended |
|  | January 31, 2015 |  |  | February 1, 2014 |  |  | February 2, 2013 |
|  |  |  |  |  |  |  | (53 weeks) |
U.S. federal statutory income tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Effective state income tax rate |  |  | 3.6 |  |  |  | 3.6 |  |  |  | 3.5 |
Impact of foreign operations |  |  | (0.9 | ) |  |  | (0.8 | ) |  |  | (0.3 | )
All other |  |  | (0.1 | ) |  |  | (2.2 | ) |  |  | (0.2 | )
Worldwide effective income tax rate |  |  | 37.6 | % |  |  | 35.6 | % |  |  | 38.0 | %
TJX’s effective income tax rate increased for fiscal 2015 as compared to fiscal 2014 primarily due to the impact of last year’s tax benefits of approximately $80 million, primarily due to a reduction in our reserve for uncertain tax positions as a result of settlements with state taxing authorities and the reversal of valuation allowances against foreign net operating loss carryforwards. TJX had net unrecognized tax benefits (net of federal benefit on state issues) of $32.7 million as of January 31, 2015, $26.2 million as of February 1, 2014 and $125.3 million as of February 2, 2013. A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows:
|  | Fiscal Year Ended |
In thousands |  | January 31, 2015 |  |  | February 1, 2014 |  |  | February 2, 2013 |
Balance at beginning of year |  | $ | 48,680 |  |  | $ | 148,777 |  |  | $ | 144,505 |
Additions for uncertain tax positions taken in current year |  |  | 4,771 |  |  |  | 4,212 |  |  |  | 1,949 |
Additions for uncertain tax positions taken in prior years |  |  | 5,278 |  |  |  | 5,096 |  |  |  | 3,009 |
Reductions for uncertain tax positions taken in prior years |  |  | (2,747 | ) |  |  | (69,292 | ) |  |  | — |
Reductions resulting from lapse of statute of limitations |  |  | — |  |  |  | (317 | ) |  |  | (129 | )
Settlements with tax authorities |  |  | (363 | ) |  |  | (39,796 | ) |  |  | (557 | )
Balance at end of year |  | $ | 55,619 |  |  | $ | 48,680 |  |  | $ | 148,777 |
Included in the gross amount of unrecognized tax benefits are items that will impact future effective tax rates upon recognition. These items amounted to $34.8 million as of January 31, 2015, $27.8 million as of February 1, 2014 and $129.0 million as of February 2, 2013. TJX is subject to U.S. federal income tax as well as income tax in multiple state, local and foreign jurisdictions. In the U.S., fiscal years through 2010 are no longer subject to examination. In Canada, the fiscal years through 2006 are no longer subject to examination. In all other jurisdictions, the tax years through fiscal 2006 are no longer subject to examination. TJX’s accounting policy is to classify interest and penalties related to income tax matters as part of income tax expense. The amount of interest and penalties expensed was $1.9 million for the year ended January 31, 2015, $4.0 million for the year ended February 1, 2014 and $4.7 million for the year ended February 2, 2013. The accrued amounts for interest and penalties are $10.1 million as of January 31, 2015, $8.1 million as of February 1, 2014 and $38.6 million as of February 2, 2013. Based on the final resolution of tax examinations, judicial or administrative proceedings, changes in facts or law, expirations of statute of limitations in specific jurisdictions or other resolutions of, or changes in, tax positions, it is reasonably possible that unrecognized tax benefits for certain tax positions taken on previously filed tax returns may change materially from those represented on the financial statements as of January 31, 2015. During the next twelve months, it is reasonably possible that such circumstances may occur that would have a material effect on previously unrecognized tax benefits. As a result, the total net amount of unrecognized tax benefits may decrease, which would reduce the provision for taxes on earnings by a range estimated at $0 million to $14.4 million.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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