	Feb 1, 2020			Feb 2, 2019
(Dollars in Millions)	Feb 1, 2020			Feb 2, 2019
Deferred tax liabilities:
Property and equipment	$	611		$	756
Lease assets		816				—
Merchandise inventories		76			73
Total deferred tax liabilities			1,503		829
Deferred tax assets:
Lease obligations			1,110		425
Accrued and other liabilities, including stock-based compensation		121			136
Accrued step rent liability			—		79
Federal benefit on state tax reserves		30			29
Total deferred tax assets			1,261		669
Net deferred tax liability	$	242		$	160

Deferred tax assets included in other long-term assets totaled $18 million as of February 1, 2020 and $24 million as of February 2, 2019.

(Dollars in Millions)		2019				2018				2017
Current federal	$		128		$		229		$		299
Current state			31				43				26
Deferred federal			60				(36	)			(86	)
Deferred state			(9	)			5				19
Provision for income taxes	$		210		$		241		$		258

On December 22, 2017, H.R. 1, originally the Tax Cuts & Jobs Act, was signed into law making significant changes to the Internal Revenue Code. Changes include a corporate rate decrease from 35% to 21%, effective January 1, 2018, as well as a variety of other changes including the acceleration of expensing of certain business assets and reductions in the amount of executive pay that could qualify as a tax deduction.

On December 22, 2017, Staff Accounting Bulletin No. 118 was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Act. As of December 22, 2018, all impacts of the Act were analyzed and recorded. Adjustments recorded in 2018 were not material.

The effective tax rate differs from the amount that would be provided by applying the statutory U.S. corporate tax rate due to the following items:

	2019			2018			2017
Provision at statutory rate		21.0	%		21.0	%		33.7	%
State income taxes, net of federal tax benefit		3.2			3.8			1.0
Re-measurement of deferred tax assets and liabilities		—			—			(10.9	)
Other federal tax credits		(1.2	)		(1.0	)		(0.7	)
Other		0.3			(0.6	)		—
Provision for income taxes		23.3	%		23.2	%		23.1	%

The re-measurement of deferred tax assets and liabilities in 2017 includes the following impacts:

We have analyzed filing positions in all of the federal and state jurisdictions where we are required to file income tax returns, as well as all open tax years in these jurisdictions. The federal returns subject to examination are the 2008 through 2019 tax years, excluding the 2014 tax year. State returns subject to examination vary depending upon the state. Generally, 2015 through 2019 tax years are subject to state examination. The earliest state open period is 2007. Certain states have proposed adjustments, which we are currently appealing. If we do not prevail on our appeals, we do not anticipate that the adjustments would result in a material change in our financial position.

A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows:

(Dollars in Millions)		2019				2018
Balance at beginning of year	$		133		$		135
Increases due to tax positions taken in prior years			7			—
Increases due to tax positions taken in current year			12				13
Decreases due to:
Tax positions taken in prior years			(14	)			(3	)
Settlements with taxing authorities			—				(3	)
Lapse of applicable statute of limitations			(3	)			(9	)
Balance at end of year	$		135		$		133

Not included in the unrecognized tax benefits reconciliation above are gross unrecognized accrued interest and penalties of $35 million at February 1, 2020 and $31 million at February 2, 2019. Interest and penalty expenses were $4 million in 2019, $5 million in 2018, and $4 million in 2017.

Our total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $112 million as of February 1, 2020 and $110 million as of February 2, 2019. It is reasonably possible that our unrecognized tax positions may change within the next 12 months, primarily as a result of ongoing audits. While it is possible that one or more of these examinations may be resolved in the next year, it is not anticipated that a significant impact to the unrecognized tax benefit balance will occur.

We have both payables and receivables for current income taxes recorded on our balance sheet. Receivables included in other current assets totaled $15 million as of February 1, 2020 and $29 million as of February 2, 2019.