Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.8
Income Taxes (Tables)
12 Months Ended
Feb. 01, 2014
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)
 
2013
 
2012
 
2011
Current
 
 
 
 
 
 
Federal and foreign
 
$
(16
)
 
$
(95
)
 
$
60

State and local
 
(8
)
 
79

 
16

Total current
 
(24
)
 
(16
)
 
76

Deferred
 
 
 
 
 
 
Federal and foreign
 
(428
)
 
(465
)
 
(130
)
State and local
 
(46
)
 
(70
)
 
(23
)
Total deferred
 
(474
)
 
(535
)
 
(153
)
Total
 
$
(498
)
 
$
(551
)
 
$
(77
)
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))
 
2013
 
2012
 
2011
Federal income tax at statutory rate
 
(35.0
)%
 
(35.0
)%
 
(35.0
)%
State and local income tax, less federal income tax benefit
 
(4.1
)
 
(3.7
)
 
(1.8
)
Increase in valuation allowance federal and state
 
28.6

 
4.3

 

Tax benefit resulting from OCI allocation
 
(16.1
)
 

 

Tax effect of dividends on ESOP shares
 

 
(0.1
)
 
(1.9
)
Non-deductible management transition costs
 

 

 
11.3

Other, including permanent differences and credits
 
0.2

 
(1.4
)
 
(6.2
)
Effective tax rate
 
(26.4
)%
 
(35.9
)%
 
(33.6
)%
Schedule of Deferred Tax Assets and Liabilities
Our deferred tax assets and liabilities were as follows:
($ in millions)
 
2013
 
2012
Assets
 
 
 
 
Merchandise inventory
 
$
62

 
$
42

Accrued vacation pay
 
28

 
28

Gift cards
 
69

 
46

Stock-based compensation
 
69

 
78

State taxes
 
36

 
39

Workers’ compensation/general liability
 
93

 
92

Accrued rent
 
32

 
29

Mirror savings plan
 
21

 
22

Pension and other retiree obligations
 

 
135

Net operating loss and tax credit carryforwards
 
918

 
600

Other
 
96

 
69

Total deferred tax assets
 
1,424

 
1,180

Valuation allowance
 
(304
)
 
(66
)
Total net deferred tax assets
 
1,120

 
1,114

Liabilities
 
 
 
 
Depreciation and amortization
 
(1,024
)
 
(1,314
)
Pension and other retiree obligations
 
(172
)
 

Leveraged leases/tax benefit transfers
 
(63
)
 
(63
)
Capitalized Advertising
 
(3
)
 
(4
)
Unrealized gain on REITs
 

 
(9
)
Other
 

 
(6
)
Total deferred tax liabilities
 
(1,262
)
 
(1,396
)
Total net deferred tax liabilities
 
$
(142
)
 
$
(282
)


Deferred tax assets and liabilities included in our Consolidated Balance Sheets were as follows:
($ in millions)
 
2013
 
2012
Other current assets
 
$
193

 
$
106

Other long-term liabilities
 
(335
)
 
(388
)
Total net deferred tax liabilities
 
$
(142
)
 
$
(282
)
Summary of Income Tax Contingencies
A reconciliation of unrecognized tax benefits is as follows:
($ in millions)
 
2013
 
2012
 
2011
Beginning balance
 
$
76

 
$
110

 
$
162

Additions for tax positions related to the current year
 

 

 

Additions for tax positions of prior years
 
6

 
5

 
10

Reductions for tax positions of prior years
 
(1
)
 
(11
)
 
(14
)
Settlements and effective settlements with tax authorities
 
(9
)
 
(24
)
 
(45
)
Expirations of statute
 
(2
)
 
(4
)
 
(3
)
Balance at end of year 
 
$
70

 
$
76

 
$
110