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Income Taxes | 12 Months Ended
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Jan. 30, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income TaxesCurrent income tax expense represents the amounts expected to be reported on the Company’s income tax returns, and deferred tax expense or benefit represents the change in net deferred tax assets and liabilities. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Valuation allowances are recorded as appropriate to reduce deferred tax assets to the amount considered likely to be realized. The following table provides the components of the Company’s provision for income taxes for 2020, 2019 and 2018:
| 2020 |  | 2019 |  | 2018
| (in millions)
Current: |  |  |  |  |
U.S. Federal | $ | 147 |  |  | $ | 156 |  |  | $ | 212 |
U.S. State | 52 |  |  | 35 |  |  | 37 |
Non-U.S. | 16 |  |  | 23 |  |  | 16 |
Total | 215 |  |  | 214 |  |  | 265 |
Deferred: |  |  |  |  |
U.S. Federal | 11 |  |  | (7) |  |  | (4) |
U.S. State | (2) |  |  | 1 |  |  | 2 |
Non-U.S. | 24 |  |  | (23) |  |  | (50) |
Total | 33 |  |  | (29) |  |  | (52) |
Provision for Income Taxes | $ | 248 |  |  | $ | 185 |  |  | $ | 213 |
The non-U.S. component of pre-tax income, arising principally from overseas operations, was income of $83 million, loss of $226 million and loss of $14 million for 2020, 2019 and 2018, respectively. The following table provides the reconciliation between the statutory federal income tax rate and the effective tax rate for 2020, 2019 and 2018:
| 2020 |  | 2019 |  | 2018
Federal Income Tax Rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State Income Taxes, Net of Federal Income Tax Effect | 5.0 | % |  | (23.0 | %) |  | 6.0 | %
Impact of Non-U.S. Operations | 1.9 | % |  | (5.7 | %) |  | 2.3 | %
Goodwill Impairment | — | % |  | (80.8 | %) |  | — | %
Change in Valuation Allowance | 0.4 | % |  | (18.5 | %) |  | (1.1 | %)
Divestiture of La Senza | — | % |  | — | % |  | (2.7 | %)
Share-Based Compensation | 1.0 | % |  | (7.7 | %) |  | 1.0 | %
Uncertain Tax Positions | (5.0 | %) |  | 12.3 | % |  | (0.5 | %)
Restructuring of Foreign Investments | (2.0 | %) |  | — | % |  | — | %
Other Items, Net | 0.4 | % |  | 0.5 | % |  | (1.1 | %)
Effective Tax Rate | 22.7 | % |  | (101.9 | %) |  | 24.9 | %
Deferred Taxes The following table provides the effect of temporary differences that cause deferred income taxes as of January 30, 2021 and February 1, 2020. 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 30, 2021 |  | February 1, 2020
| Assets |  | Liabilities |  | Total |  | Assets |  | Liabilities |  | Total
| (in millions)
Loss Carryforwards | $ | 447 |  |  | $ | — |  |  | $ | 447 |  |  | $ | 247 |  |  | $ | — |  |  | $ | 247 |
Non-qualified Retirement Plan | 38 |  |  | — |  |  | 38 |  |  | 62 |  |  | — |  |  | 62 |
Leases | 669 |  |  | (601) |  |  | 68 |  |  | 746 |  |  | (712) |  |  | 34 |
Share-based Compensation | 30 |  |  | — |  |  | 30 |  |  | 40 |  |  | — |  |  | 40 |
Deferred Revenue | 6 |  |  | — |  |  | 6 |  |  | 20 |  |  | — |  |  | 20 |
Property and Equipment | — |  |  | (216) |  |  | (216) |  |  | — |  |  | (230) |  |  | (230) |
Trade Names and Other Intangibles | — |  |  | (94) |  |  | (94) |  |  | — |  |  | (94) |  |  | (94) |
Other Assets | — |  |  | (61) |  |  | (61) |  |  | — |  |  | (60) |  |  | (60) |
Other, Net | 62 |  |  | (19) |  |  | 43 |  |  | 70 |  |  | (20) |  |  | 50 |
Valuation Allowance | (426) |  |  | — |  |  | (426) |  |  | (204) |  |  | — |  |  | (204) |
Total Deferred Income Taxes | $ | 826 |  |  | $ | (991) |  |  | $ | (165) |  |  | $ | 981 |  |  | $ | (1,116) |  |  | $ | (135) |
As of January 30, 2021, the Company had loss carryforwards of $447 million, of which $248 million has an indefinite carryforward. The remainder of the U.S. and non-U.S. carryforwards, if unused, will expire at various dates from 2021 through 2040 and 2028 through 2040, respectively. For certain jurisdictions where the Company has determined that it is more likely than not that the loss carryforwards will not be realized, a valuation allowance has been provided on those loss carryforwards as well as other net deferred tax assets. Income tax payments were $200 million for 2020, $228 million for 2019 and $324 million for 2018. 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 2020, 2019 and 2018, without interest and penalties:
| 2020 |  | 2019 |  | 2018
| (in millions)
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year | $ | 88 |  |  | $ | 114 |  |  | $ | 67 |
Increases to Unrecognized Tax Benefits for Prior Years | 7 |  |  | 15 |  |  | 35 |
Decreases to Unrecognized Tax Benefits for Prior Years | (50) |  |  | (22) |  |  | (25) |
Increases to Unrecognized Tax Benefits as a Result of Current Year Activity | 113 |  |  | 3 |  |  | 44 |
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities | — |  |  | (16) |  |  | — |
Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations | (6) |  |  | (6) |  |  | (7) |
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year | $ | 152 |  |  | $ | 88 |  |  | $ | 114 |
Of the total gross unrecognized tax benefits, approximately $142 million, $81 million and $104 million, at January 30, 2021, February 1, 2020, and February 2, 2019, 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 $122 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 an income tax benefit from interest and penalties of approximately $3 million, $1 million and $5 million in 2020, 2019 and 2018, respectively. The Company has accrued $10 million and $12 million for the payment of interest and penalties as of January 30, 2021 and February 1, 2020, 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 return as well as income tax returns in various states and in non-U.S. jurisdictions. The Company is a participant in the Compliance Assurance Process ("CAP"), which is a program made available by the Internal Revenue Service ("IRS") to certain qualifying large taxpayers, under which participants work collaboratively with the IRS to identify and resolve potential tax issues through open, cooperative and transparent interaction prior to the annual filing of their federal income tax return. The IRS is currently examining the Company's 2019 consolidated U.S. federal income tax return. The Company is also subject to various state and local income tax examinations for the years 2015 to 2019. Finally, the Company is subject to multiple non-U.S. tax jurisdiction examinations for the years 2008 to 2019. 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.

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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=84230637&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=116825942&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=84230637&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=116825942&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=84230637&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 + Details
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