Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.3.1.900
Income Taxes (Tables)
12 Months Ended
Jan. 30, 2016
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The components of our income tax expense/(benefit) were as follows:
($ in millions)
 
2015
 
2014
 
2013
Current
 
 
 
 
 
 
Federal and foreign
 
$
5

 
$
12

 
$
(16
)
State and local
 
6

 
8

 
(8
)
Total current
 
11

 
20

 
(24
)
Deferred
 
 
 
 
 
 
Federal and foreign
 
(1
)
 
9

 
(370
)
State and local
 
(1
)
 
(6
)
 
(36
)
Total deferred
 
(2
)
 
3

 
(406
)
Total
 
$
9

 
$
23

 
$
(430
)
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the statutory federal income tax rate to our effective rate is as follows:
(percent of pre-tax income/(loss))
 
2015
 
2014
 
2013
Federal income tax at statutory rate
 
(35.0
)%
 
(35.0
)%
 
(35.0
)%
State and local income tax, less federal income tax benefit
 
(4.2
)
 
(4.2
)
 
(4.0
)
Increase in valuation allowance federal and state
 
36.7

 
41.7

 
28.6

Tax benefit resulting from OCI allocation
 

 

 
(14.6
)
Other, including permanent differences and credits
 
4.3

 
0.8

 
(0.2
)
Effective tax rate
 
1.8
 %
 
3.3
 %
 
(25.2
)%
Schedule of Deferred Tax Assets and Liabilities
Our deferred tax assets and liabilities were as follows:
($ in millions)
 
2015
 
2014
Assets
 
 
 
 
Merchandise inventory
 
$
39

 
$
35

Accrued vacation pay
 
22

 
24

Gift cards
 
90

 
76

Stock-based compensation
 
77

 
76

Deferred equity adjustment
 
11

 

State taxes
 
15

 
25

Workers’ compensation/general liability
 
85

 
87

Accrued rent
 
37

 
35

Litigation exposure
 
32

 

Mirror savings plan
 
15

 
18

Pension and other retiree obligations
 
96

 

Net operating loss and tax credit carryforwards
 
1,072

 
1,100

Other
 
65

 
51

Total deferred tax assets
 
1,656

 
1,527

Valuation allowance
 
(1,025
)
 
(784
)
Total net deferred tax assets
 
631

 
743

Liabilities
 
 
 
 
Depreciation and amortization
 
(741
)
 
(851
)
Pension and other retiree obligations
 

 
(3
)
Tax benefit transfers
 
(56
)
 
(59
)
Long-lived intangible assets
 
(28
)
 
(21
)
Total deferred tax liabilities
 
(825
)
 
(934
)
Total net deferred tax liabilities
 
$
(194
)
 
$
(191
)


Deferred tax assets and liabilities included in our Consolidated Balance Sheets were as follows:
($ in millions)
 
2015
 
2014
Other current assets
 
$
231

 
$
172

Other long-term liabilities
 
(425
)
 
(363
)
Total net deferred tax liabilities
 
$
(194
)
 
$
(191
)
Summary of Income Tax Contingencies
A reconciliation of unrecognized tax benefits is as follows:
($ in millions)
 
2015
 
2014
 
2013
Beginning balance
 
$
62

 
$
70

 
$
76

Additions for tax positions of prior years
 
40

 
10

 
6

Reductions for tax positions of prior years
 

 

 
(1
)
Settlements and effective settlements with tax authorities
 
(10
)
 
(16
)
 
(9
)
Expirations of statute
 
(1
)
 
(2
)
 
(2
)
Balance at end of year 
 
$
91

 
$
62

 
$
70



Unrecognized tax benefits included in our Consolidated Balance Sheets were as follows:
($ in millions)
 
2015
 
2014
Deferred taxes (current assets)
 
$
84

 
$
49

Accounts payable and accrued expenses (Note 7)
 
3

 
5

Other liabilities (Note 8)
 
4

 
8

Total
 
$
91

 
$
62