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Income Taxes | 12 Months Ended
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Jan. 30, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Earnings from continuing operations before income taxes were $4,923 million, $3,653 million, and $4,121 million during 2015, 2014, and 2013, including $373 million, $261 million, and $196 million earned by our foreign entities subject to tax outside of the U.S.
Tax Rate Reconciliation – Continuing Operations | 2015 |  | 2014 |  | 2013 |
Federal statutory rate | 35.0 | % | 35.0 | % | 35.0 | %
State income taxes, net of the federal tax benefit | 3.0 |  | 2.2 |  | 2.4 |
International | (2.3 | ) | (2.3 | ) | (1.2 | )
Change in valuation allowance | (2.3 | ) | — |  | — |
Other | (0.9 | ) | (1.9 | ) | (1.6 | )
Effective tax rate | 32.5 | % | 33.0 | % | 34.6 | %
Provision for Income Taxes (millions) | 2015 |  | 2014 |  | 2013 |
Current: |  |  |
Federal | $ | 1,652 |  | $ | 1,074 |  | $ | 1,206 |
State | 265 |  | 116 |  | 150 |
International | 7 |  | 7 |  | 13 |
Total current | 1,924 |  | 1,197 |  | 1,369 |
Deferred: |  |  |
Federal | (272 | ) | (2 | ) | 56 |
State | (50 | ) | 10 |  | — |
International | — |  | (1 | ) | 2 |
Total deferred | (322 | ) | 7 |  | 58 |
Total provision | $ | 1,602 |  | $ | 1,204 |  | $ | 1,427 |
Net Deferred Tax Asset/(Liability) (millions) | January 30, 2016 |  | January 31, 2015 |
Gross deferred tax assets: |  |
Accrued and deferred compensation | $ | 476 |  | $ | 531 |
Accruals and reserves not currently deductible | 323 |  | 316 |
Self-insured benefits | 199 |  | 223 |
Prepaid store-in-store lease income | 270 |  | — |
Other | 90 |  | 176 |
Total gross deferred tax assets | 1,358 |  | 1,246 |
Gross deferred tax liabilities: |  |
Property and equipment | (1,790 | ) | (1,946 | )
Inventory | (190 | ) | (307 | )
Other | (168 | ) | (123 | )
Total gross deferred tax liabilities | (2,148 | ) | (2,376 | )
Total net deferred tax liability | $ | (790 | ) | $ | (1,130 | )
In 2014, we incurred a tax effected capital loss of $112 million within discontinued operations from our exit from Canada. At that time, we neither had nor anticipated sufficient capital gains to absorb this capital loss, and established a full valuation allowance within discontinued operations. In 2015, we released the entire $112 million valuation allowance due to a capital gain resulting from the sale of our pharmacy and clinic businesses. The benefit of the valuation allowance release is recorded in continuing operations. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted income tax rates in effect for the year the temporary differences are expected to be recovered or settled. Tax rate changes affecting deferred tax assets and liabilities are recognized in income at the enactment date. We have not recorded deferred taxes when earnings from foreign operations are considered to be indefinitely invested outside the U.S. These accumulated net earnings relate to certain ongoing operations and were $685 million at January 30, 2016 and $328 million at January 31, 2015. It is not practicable to determine the income tax liability that would be payable if such earnings were repatriated. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. ASU 2015-17 amended ASC 740, Income Taxes, to simplify the presentation of deferred taxes by requiring deferred tax assets and liabilities be classified as noncurrent on the balance sheet. We have retrospectively adopted this ASU for the year ended January 30, 2016. As a result, $289 million and $188 million of current deferred tax assets from continuing operations have been reclassified from other current assets to deferred income taxes in our Consolidated Statements of Financial Position as of January 30, 2016 and January 31, 2015, respectively, and $74 million and $274 million of current deferred tax assets from discontinued operations have been reclassified from assets of discontinued operations to noncurrent assets of discontinued operations, respectively. We file a U.S. federal income tax return and income tax returns in various states and foreign jurisdictions. The U.S. Internal Revenue Service has completed exams on the U.S. federal income tax returns for years 2012 and prior. With few exceptions, we are no longer subject to state and local or non-U.S. income tax examinations by tax authorities for years before 2003.
Reconciliation of Liability for Unrecognized Tax Benefits (millions) | 2015 |  | 2014 |  | 2013 |
Balance at beginning of period | $ | 155 |  | $ | 183 |  | $ | 216 |
Additions based on tax positions related to the current year | 10 |  | 10 |  | 15 |
Additions for tax positions of prior years | 14 |  | 17 |  | 28 |
Reductions for tax positions of prior years | (26 | ) | (42 | ) | (57 | )
Settlements | — |  | (13 | ) | (19 | )
Balance at end of period | $ | 153 |  | $ | 155 |  | $ | 183 |
If we were to prevail on all unrecognized tax benefits recorded, $99 million of the $153 million reserve would benefit the effective tax rate. In addition, the reversal of accrued penalties and interest would also benefit the effective tax rate. Interest and penalties associated with unrecognized tax benefits are recorded within income tax expense. During the years ended January 30, 2016, January 31, 2015, and February 1, 2014, we recorded a net expense/(benefit) from accrued penalties and interest of $5 million, $(12) million, and $(1) million, respectively. As of January 30, 2016, January 31, 2015, and February 1, 2014 total accrued interest and penalties were $44 million, $40 million, and $58 million, respectively. It is reasonably possible that the amount of the unrecognized tax benefits with respect to our other unrecognized tax positions will increase or decrease during the next twelve months; however, an estimate of the amount or range of the change cannot be made at this time.

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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 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 2: 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 Reference 3: 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 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 + Details
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