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Income Taxes | 12 Months Ended
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Jan. 29, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income TaxesFor financial reporting purposes, components of income before income taxes are as follows:
| Fiscal Year Ended
In thousands | January 29, 2022 | January 30, 2021 | February 1, 2020
United States | $ | 3,934,151 |  | $ | 642,482 |  | $ | 3,742,227 |
Foreign | 463,457 |  | (553,219) |  | 663,956 |
Income before income taxes | $ | 4,397,608 |  | $ | 89,263 |  | $ | 4,406,183 |
The provision (benefit) for income taxes includes the following:
| Fiscal Year Ended
In thousands | January 29, 2022 | January 30, 2021 | February 1, 2020
Current: |  |  |
Federal | $ | 766,200 |  | $ | 189,854 |  | $ | 708,508 |
State | 270,480 |  | 36,246 |  | 250,830 |
Foreign | 122,325 |  | 4,985 |  | 181,061 |
Deferred: |  |  |
Federal | (32,562) |  | (97,705) |  | 9,409 |
State | (25,723) |  | (25,406) |  | (8,203) |
Foreign | 14,073 |  | (109,181) |  | (7,615) |
Provision (benefit) provision for income taxes | $ | 1,114,793 |  | $ | (1,207) |  | $ | 1,133,990 |
TJX had net deferred tax assets (liabilities) as follows:
| Fiscal Year Ended
In thousands | January 29, 2022 | January 30, 2021
Deferred tax assets: |  |
Net operating loss carryforward | $ | 159,154 |  | $ | 171,568 |
Pension, stock compensation, postretirement and employee benefits | 368,060 |  | 272,872 |
Operating lease liabilities | 2,379,024 |  | 2,409,392 |
Accruals and reserves | 236,642 |  | 239,696 |
Other | 13,253 |  | 14,750 |
Total gross deferred tax assets | $ | 3,156,133 |  | $ | 3,108,278 |
Valuation allowance | (85,497) |  | (76,682) |
Total deferred tax asset | $ | 3,070,636 |  | $ | 3,031,596 |
Deferred tax liabilities: |  |
Property, plant and equipment | $ | 553,138 |  | $ | 530,675 |
Capitalized inventory | 48,413 |  | 47,769 |
Operating lease right of use assets | 2,288,985 |  | 2,321,733 |
Tradename/intangibles | 19,077 |  | 17,391 |
Undistributed foreign earnings | 8,718 |  | 4,789 |
Other | 11,509 |  | 19,212 |
Total deferred tax liabilities | $ | 2,929,840 |  | $ | 2,941,569 |
Net deferred tax asset | $ | 140,796 |  | $ | 90,027 |
Non-current asset | $ | 184,971 |  | $ | 127,191 |
Non-current liability | (44,175) |  | (37,164) |
Total | $ | 140,796 |  | $ | 90,027 |
TJX has provided for all applicable state and foreign withholding taxes on all undistributed earnings of its foreign subsidiaries in Canada, Puerto Rico, Italy, India, Hong Kong and Vietnam through January 29, 2022. The Company has not provided for federal, state, or foreign withholding taxes on the approximately $1 billion of undistributed earnings related to all other foreign subsidiaries as such earnings are considered to be indefinitely reinvested in the business. The net amount of unrecognized state and foreign withholding tax liabilities related to the undistributed earnings is not material. As of January 29, 2022 and January 30, 2021, for state income tax purposes, TJX had net operating loss carryforwards of $291 million and $224 million respectively, which expire, if unused, in the years 2023 through 2042. 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 $14 million has been provided for the deferred tax asset as of January 29, 2022 and $14 million as of January 30, 2021. The Company had available for foreign income tax purposes (related to Australia, Austria, Germany, the Netherlands, Poland and the U.K.) net operating loss carryforwards of $534 million as of January 29, 2022, and $626 million as of January 30, 2021. Of the net operating loss carryforwards as of January 29, 2022, $5 million will expire, if unused, in fiscal year 2026. The remaining loss carryforwards do not expire. For the deferred tax assets associated with the net operating loss carryforwards for which management has determined it is more likely than not that the deferred tax assets will not be realized, TJX had valuation allowances recorded of approximately $71 million as of January 29, 2022, and approximately $62 million as of January 30, 2021. 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 29, 2022 | January 30, 2021 | February 1, 2020
U.S. federal statutory income tax rate | 21.0 | % | 21.0 | % | 21.0 | %
Effective state income tax rate | 4.6 |  | 28.1 |  | 4.6 |
Impact of foreign operations | 0.9 |  | 21.4 |  | 0.8 |
Excess share-based compensation | (1.2) |  | (59.4) |  | (1.3) |
Tax credits | (0.3) |  | (8.9) |  | — |
Nondeductible/nontaxable items | 0.2 |  | (3.3) |  | — |
All other | 0.2 |  | (0.3) |  | 0.6 |
Worldwide effective income tax rate | 25.4 | % | (1.4) | % | 25.7 | %
TJX’s effective income tax rate increased for fiscal 2022 as compared to fiscal 2021. The increase in the fiscal 2022 effective income tax rate is primarily due to the significant increase in profit in fiscal 2022 as compared to the mix of income and losses by jurisdictions in fiscal 2021. TJX had net unrecognized tax benefits of $288 million as of January 29, 2022, $272 million as of January 30, 2021 and $255 million as of February 1, 2020. A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows:
| Fiscal Year Ended
In thousands | January 29, 2022 | January 30, 2021 | February 1, 2020
Balance, beginning of year | $ | 269,371 |  | $ | 259,359 |  | $ | 244,195 |
Additions for uncertain tax positions taken in current year | 9,272 |  | 11,751 |  | 21,559 |
Additions for uncertain tax positions taken in prior years | 3,032 |  | 834 |  | 722 |
Reductions resulting from lapse of statute of limitations | (1,989) |  | (2,352) |  | (4,022) |
Settlements with tax authorities | — |  | (221) |  | (3,095) |
Balance, end of year | $ | 279,686 |  | $ | 269,371 |  | $ | 259,359 |
Included in the gross amount of unrecognized tax benefits are items that will impact future effective tax rates upon recognition. These items amounted to $260 million as of January 29, 2022, $250 million as of January 30, 2021 and $240 million as of February 1, 2020. 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. and India, fiscal years through 2010 are no longer subject to examination. In all other jurisdictions, fiscal years through 2011 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 $7 million for the year ended January 29, 2022, $8 million for the year ended January 30, 2021 and $5 million for the year ended February 1, 2020. The accrued amounts for interest and penalties are $43 million as of January 29, 2022, $36 million as of January 30, 2021 and $28 million as of February 1, 2020. Based on the final resolution of tax examinations, judicial or administrative proceedings, changes in facts or law, expirations of statutes 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 consolidated financial statements as of January 29, 2022. During the next twelve months, it is reasonably possible that tax audit resolutions may reduce unrecognized tax benefits by up to $45 million, which would reduce the provision for taxes on earnings.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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