XML 35 R18.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Income Taxes | 12 Months Ended
--- | ---
Jan. 28, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The following table provides the components of the Company’s provision for income taxes for 2016, 2015 and 2014:
| 2016 |  | 2015 |  | 2014
| (in millions)
Current: |  |  |  |  |
U.S. Federal | $ | 345 |  |  | $ | 553 |  |  | $ | 454 |
U.S. State | 62 |  |  | 96 |  |  | 69 |
Non-U.S. | 21 |  |  | 21 |  |  | 21 |
Total | 428 |  |  | 670 |  |  | 544 |
Deferred: |  |  |  |  |
U.S. Federal | 99 |  |  | 17 |  |  | 46 |
U.S. State | 8 |  |  | 6 |  |  | 3 |
Non-U.S. | 3 |  |  | (12 | ) |  | 1 |
Total | 110 |  |  | 11 |  |  | 50 |
Provision for Income Taxes | $ | 538 |  |  | $ | 681 |  |  | $ | 594 |
The non-U.S. component of pre-tax income, arising principally from overseas operations, was income of $134 million, $267 million and $152 million for 2016, 2015 and 2014, respectively. The Company's income taxes payable has been reduced by the excess tax benefits from employee stock plan awards. For stock options, the Company receives an excess income tax benefit calculated as the tax effect of the difference between the fair market value of the stock at the time of grant and exercise. For restricted stock, the Company receives an excess income tax benefit calculated as the tax effect of the difference between the fair market value of the stock at the time of grant and vesting. The Company had net excess tax benefits from equity awards of $42 million, $70 million and $43 million in 2016, 2015 and 2014, respectively, which were reflected as increases to equity. The following table provides the reconciliation between the statutory federal income tax rate and the effective tax rate for 2016, 2015 and 2014:
| 2016 |  | 2015 |  | 2014
Federal Income Tax Rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State Income Taxes, Net of Federal Income Tax Effect | 3.4 | % |  | 3.4 | % |  | 3.6 | %
Impact of Non-U.S. Operations | (1.2 | )% |  | (1.7 | )% |  | (1.3 | )%
Foreign Portion of the Divestiture of Third-party Apparel Sourcing Business | — | % |  | (0.9 | )% |  | — | %
Resolution of Certain Tax Matters | (4.0 | )% |  | — | % |  | (0.3 | )%
Other Items, Net | (1.5 | )% |  | (0.6 | )% |  | (0.7 | )%
Effective Tax Rate | 31.7 | % |  | 35.2 | % |  | 36.3 | %
Deferred Taxes The following table provides the effect of temporary differences that cause deferred income taxes as of January 28, 2017 and January 30, 2016. Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carryforwards at the end of the respective year.
| January 28, 2017 |  | January 30, 2016
| Assets |  | Liabilities |  | Total |  | Assets |  | Liabilities |  | Total
| (in millions)
Leases | $ | 68 |  |  | $ | — |  |  | $ | 68 |  |  | $ | 54 |  |  | $ | — |  |  | $ | 54 |
Non-qualified Retirement Plan | 96 |  |  | — |  |  | 96 |  |  | 103 |  |  | — |  |  | 103 |
Property and Equipment | — |  |  | (413 | ) |  | (413 | ) |  | — |  |  | (330 | ) |  | (330 | )
Goodwill | — |  |  | (15 | ) |  | (15 | ) |  | — |  |  | (15 | ) |  | (15 | )
Trade Names and Other Intangibles | — |  |  | (141 | ) |  | (141 | ) |  | — |  |  | (141 | ) |  | (141 | )
State Net Operating Loss Carryforwards | 15 |  |  | — |  |  | 15 |  |  | 17 |  |  | — |  |  | 17 |
Non-U.S. Operating Loss Carryforwards | 155 |  |  | — |  |  | 155 |  |  | 157 |  |  | — |  |  | 157 |
Valuation Allowance | (174 | ) |  | — |  |  | (174 | ) |  | (164 | ) |  | — |  |  | (164 | )
Other, Net | 76 |  |  | — |  |  | 76 |  |  | 92 |  |  | — |  |  | 92 |
Total Deferred Income Taxes | $ | 236 |  |  | $ | (569 | ) |  | $ | (333 | ) |  | $ | 259 |  |  | $ | (486 | ) |  | $ | (227 | )
As of January 28, 2017, the Company had available for state income tax purposes net operating loss carryforwards which expire, if unused, in the years 2017 through 2036. 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 has been provided. As of January 28, 2017, the Company had available for non-U.S. tax purposes net operating loss carryforwards which expire, if unused, in the years 2027 through 2036. For certain jurisdictions where the Company has determined that it is more likely than not that the net operating loss carryforwards will not be realized, a valuation allowance has been provided on those net operating loss carryforwards as well as other net deferred tax assets. As of January 28, 2017, we have not provided deferred U.S. income taxes on approximately $571 million of undistributed earnings from non-U.S. subsidiaries. Any unrecognized deferred income tax liability resulting from these amounts is not expected to reverse in the foreseeable future; furthermore, the undistributed foreign earnings are permanently reinvested. If the Company elects to distribute these foreign earnings in the future, they could be subject to additional income taxes. Determination of the amount of any unrecognized deferred income tax liability is not practicable because such liability, if any, is dependent on circumstances existing if and when remittance occurs. Income tax payments were $469 million for 2016, $507 million for 2015 and $526 million for 2014. Uncertain Tax Positions The following table summarizes the activity related to the Company’s unrecognized tax benefits for U.S. federal, state & non-U.S. tax jurisdictions for 2016, 2015 and 2014, without interest and penalties:
| 2016 |  | 2015 |  | 2014
| (in millions)
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year | $ | 248 |  |  | $ | 193 |  |  | $ | 167 |
Increases in Unrecognized Tax Benefits for Prior Years | 3 |  |  | 8 |  |  | 16 |
Decreases in Unrecognized Tax Benefits for Prior Years | (73 | ) |  | (3 | ) |  | (14 | )
Increases in Unrecognized Tax Benefits as a Result of Current Year Activity | 18 |  |  | 54 |  |  | 36 |
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities | (98 | ) |  | — |  |  | (5 | )
Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations | (8 | ) |  | (4 | ) |  | (7 | )
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year | $ | 90 |  |  | $ | 248 |  |  | $ | 193 |
Of the $90 million, $248 million and $193 million of total unrecognized tax benefits at January 28, 2017, January 30, 2016, and January 31, 2015, respectively, approximately $62 million, $217 million and $170 million, respectively, represent the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. These amounts are net of the offsetting tax effects from other tax jurisdictions. Of the total unrecognized tax benefits, it is reasonably possible that $17 million could change in the next 12 months due to audit settlements, expiration of statute of limitations or other resolution of uncertainties. Due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of audits may result in amounts which could be different from this estimate. In such case, the Company will record additional tax expense or tax benefit in the period in which such matters are effectively settled. The Company recognizes interest and penalties related to unrecognized tax benefits as components of income tax expense. The Company recognized interest and penalties expense (benefit) of $(3) million, $7 million and $1 million in 2016, 2015 and 2014, respectively. The Company has accrued approximately $20 million and $38 million for the payment of interest and penalties as of January 28, 2017 and January 30, 2016, respectively. Accrued interest and penalties are included within Other Long-term Liabilities on the Consolidated Balance Sheets. The Company files U.S. federal income tax returns as well as income tax returns in various states and in non-U.S. jurisdictions. At the end of 2016, the Company was subject to examination by the IRS for 2013 through 2015. The Company is also subject to various U.S. state and local income tax examinations for the years 2009 to 2015. Finally, the Company is subject to multiple non-U.S. tax jurisdiction examinations for the years 2007 to 2015. In some situations, the Company determines that it does not have a filing requirement in a particular tax jurisdiction. Where no return has been filed, no statute of limitations applies. Accordingly, if a tax jurisdiction reaches a conclusion that a filing requirement does exist, additional years may be reviewed by the tax authority. The Company believes it has appropriately accounted for uncertainties related to this issue.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration