Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.8.0.1
Income Taxes (Tables)
12 Months Ended
Feb. 03, 2018
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)
 
2017
 
2016
 
2015
Current
 
 
 
 
 
 
Federal and foreign
 
$
(64
)
 
$
(12
)
 
$
5

State and local
 
22

 
4

 
6

Total current
 
(42
)
 
(8
)
 
11

Deferred
 
 
 
 
 
 
Federal and foreign
 
(59
)
 
9

 
(1
)
State and local
 
(25
)
 

 
(1
)
Total deferred
 
(84
)
 
9

 
(2
)
Total income tax expense/(benefit)
 
$
(126
)
 
$
1

 
$
9

Schedule of Effective Income Tax Rate Reconciliation
The following table summarizes a reconciliation of income tax expense/(benefit) compared with the amounts at the U.S. federal statutory income tax rate:
($ in millions)
 
2017
 
2016
 
2015
Federal income tax at statutory rate
 
$
(82
)
 
$
1

 
$
(176
)
State and local income tax, less federal income tax benefit
 
(12
)
 
(2
)
 
(21
)
Increase/(decrease) in valuation allowance
 
33

 
(1
)
 
185

Effect of U.S. tax reform
 
(75
)
 

 

Other, including permanent differences and credits
 
10

 
3

 
21

Total income tax expense/(benefit)
 
$
(126
)
 
$
1

 
$
9

Schedule of Deferred Tax Assets and Liabilities
Our deferred tax assets and liabilities were as follows:
($ in millions)
 
2017
 
2016
Assets
 
 
 
 
Merchandise inventory
 
$
10

 
$
27

Accrued vacation pay
 
8

 
17

Gift cards
 
57

 
98

Stock-based compensation
 
30

 
58

State taxes
 
5

 
12

Workers’ compensation/general liability
 
44

 
74

Accrued rent
 
26

 
39

Litigation exposure
 
3

 
16

Mirror savings plan
 
8

 
13

Pension and other retiree obligations
 
34

 
76

Net operating loss and tax credit carryforwards
 
719

 
931

Other
 
48

 
77

Total deferred tax assets
 
992

 
1,438

Valuation allowance
 
(767
)
 
(993
)
Total net deferred tax assets
 
225

 
445

Liabilities
 
 
 
 
Depreciation and amortization
 
(310
)
 
(561
)
Tax benefit transfers
 
(31
)
 
(53
)
Long-lived intangible assets
 
(27
)
 
(35
)
Total deferred tax liabilities
 
(368
)
 
(649
)
Total net deferred tax liabilities
 
$
(143
)
 
$
(204
)


Summary of Income Tax Contingencies
A reconciliation of unrecognized tax benefits is as follows:
($ in millions)
 
2017
 
2016
 
2015
Beginning balance
 
$
79

 
$
91

 
$
62

Additions for tax positions of prior years
 
4

 
16

 
40

Reductions for tax positions of prior years
 
(45
)
 
(24
)
 

Settlements and effective settlements with tax authorities
 
(3
)
 
(4
)
 
(10
)
Expirations of statute
 

 

 
(1
)
Balance at end of year 
 
$
35

 
$
79

 
$
91



Unrecognized tax benefits included in our Consolidated Balance Sheets were as follows:
($ in millions)
 
2017
 
2016
Deferred taxes (noncurrent liability)
 
$
32

 
$
75

Accounts payable and accrued expenses (Note 7)
 
2

 
3

Other liabilities (Note 8)
 
1

 
1

Total
 
$
35

 
$
79