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Income Taxes | 12 Months Ended
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Jan. 28, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes In August 2022, the Inflation Reduction Act of 2022 (IRA) was signed into law. Among other things, the IRA imposes a 15% corporate alternative minimum tax (the “Corporate AMT”) for tax years beginning after December 31, 2022 and levies a 1% excise tax on net stock repurchases after December 31, 2022. The excise tax on the net stock repurchase portion of the IRA did not have an impact on our results of operations or financial position in fiscal 2023 and the Company does not expect the Corporate AMT, excise tax, or other provisions of the IRA to have a material impact on its consolidated financial statements. For financial reporting purposes, components of income before income taxes are as follows:
| Fiscal Year Ended
In millions | January 28, 2023 | January 29, 2022 | January 30, 2021
United States | $ | 4,029 |  | $ | 3,934 |  | $ | 642 |
Foreign | 607 |  | 464 |  | (553) |
Income before income taxes | $ | 4,636 |  | $ | 4,398 |  | $ | 89 |
The provision (benefit) for income taxes includes the following:
| Fiscal Year Ended
In millions | January 28, 2023 | January 29, 2022 | January 30, 2021
Current: |  |  |
Federal | $ | 656 |  | $ | 766 |  | $ | 190 |
State | 233 |  | 271 |  | 36 |
Foreign | 185 |  | 122 |  | 5 |
Deferred: |  |  |
Federal | 52 |  | (32) |  | (98) |
State | 0 |  | (26) |  | (25) |
Foreign | 12 |  | 14 |  | (109) |
Provision (benefit) for income taxes | $ | 1,138 |  | $ | 1,115 |  | $ | (1) |
TJX had net deferred tax assets (liabilities) as follows:
| Fiscal Year Ended
In millions | January 28, 2023 | January 29, 2022
Deferred tax assets: |  |
Net operating loss carryforward | $ | 156 |  | $ | 159 |
Pension, stock compensation, postretirement and employee benefits | 326 |  | 368 |
Operating lease liabilities | 2,500 |  | 2,379 |
Accruals and reserves | 245 |  | 237 |
Other | 14 |  | 13 |
Total gross deferred tax assets | $ | 3,241 |  | $ | 3,156 |
Valuation allowance | (86) |  | (85) |
Total deferred tax asset | $ | 3,155 |  | $ | 3,071 |
Deferred tax liabilities: |  |
Property, plant and equipment | $ | 628 |  | $ | 553 |
Capitalized inventory | 61 |  | 48 |
Operating lease right of use assets | 2,404 |  | 2,289 |
Tradename/intangibles | 21 |  | 19 |
Undistributed foreign earnings | 5 |  | 9 |
Other | 5 |  | 12 |
Total deferred tax liabilities | $ | 3,124 |  | $ | 2,930 |
Net deferred tax asset | $ | 31 |  | $ | 141 |
Non-current asset | $ | 158 |  | $ | 185 |
Non-current liability | (127) |  | (44) |
Total | $ | 31 |  | $ | 141 |
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 28, 2023. The Company has not provided for federal, state, or foreign withholding taxes on the approximately $1.2 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 28, 2023 and January 29, 2022, for state income tax purposes, TJX had net operating loss carryforwards of $328 million and $291 million respectively, which expire, if unused, in the years 2024 through 2043. 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 $16 million has been provided for the deferred tax asset as of January 28, 2023 and $14 million as of January 29, 2022. 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 $508 million as of January 28, 2023 and $534 million as of January 29, 2022. The full amount of the 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 both January 28, 2023 and January 29, 2022. 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 28, 2023 | January 29, 2022 | January 30, 2021
U.S. federal statutory income tax rate | 21.0 | % | 21.0 | % | 21.0 | %
Effective state income tax rate | 4.3 |  | 4.6 |  | 28.1 |
Impact of foreign operations | 1.1 |  | 0.9 |  | 21.4 |
Excess share-based compensation | (1.0) |  | (1.2) |  | (59.4) |
Tax credits | (0.3) |  | (0.3) |  | (8.9) |
Nondeductible/nontaxable items | (0.1) |  | 0.2 |  | (3.3) |
All other | (0.5) |  | 0.2 |  | (0.3) |
Worldwide effective income tax rate | 24.5 | % | 25.4 | % | (1.4) | %
TJX’s effective income tax rate decreased for fiscal 2023 compared to fiscal 2022. The decrease in the fiscal 2023 effective income tax rate is primarily due to the lapse of statutes of limitations and resolution of various tax matters, and the change of jurisdictional mix of profits and losses, partially offset by a reduction of excess tax benefits from share-based compensation. TJX had net unrecognized tax benefits of $265 million as of January 28, 2023, $288 million as of January 29, 2022 and $272 million as of January 30, 2021. A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows:
| Fiscal Year Ended
In millions | January 28, 2023 | January 29, 2022 | January 30, 2021
Balance, beginning of year | $ | 280 |  | $ | 269 |  | $ | 259 |
Additions for uncertain tax positions taken in current year | 8 |  | 10 |  | 12 |
Additions for uncertain tax positions taken in prior years | 7 |  | 3 |  | 1 |
Reductions for uncertain tax positions taken in prior years | (2) |  | — |  | — |
Reductions resulting from lapse of statute of limitations | (18) |  | (2) |  | (3) |
Settlements with tax authorities | (9) |  | — |  | 0 |
Balance, end of year | $ | 266 |  | $ | 280 |  | $ | 269 |
Included in the gross amount of unrecognized tax benefits are items that will impact future effective tax rates upon recognition. These items amounted to $251 million as of January 28, 2023, $260 million as of January 29, 2022 and $250 million as of January 30, 2021. 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 both of the fiscal years ended January 28, 2023 and January 29, 2022, and $8 million for the fiscal year ended January 30, 2021. The accrued amounts for interest and penalties are $37 million as of January 28, 2023, $43 million as of January 29, 2022 and $36 million as of January 30, 2021. 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 28, 2023. During the next twelve months, it is reasonably possible that tax audit resolutions may reduce unrecognized tax benefits by up to $52 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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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