v3.26.1
Income Taxes
 12 Months Ended
Jan. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following is a reconciliation of the federal statutory tax rate to the effective tax rate:

Years Ended
(In millions, except percentage data)January 30, 2026January 31, 2025February 2, 2024
Statutory federal income tax rate$1,837 21.0 %$1,922 21.0 %$2,137 21.0 %
State income taxes, net of federal tax benefit1
333 3.8 343 3.7 389 3.8 
Other, net(77)(0.9)(69)(0.7)(77)(0.7)
Effective tax rate$2,093 23.9 %$2,196 24.0 %$2,449 24.1 %
1    State taxes in CA, FL, PA, NY, VA, NC, TN, NJ, and SC contributed to the majority of the tax effect in this category.
The components of the income tax provision are as follows:
Years Ended
(In millions)January 30, 2026January 31, 2025February 2, 2024
Current:
Federal$1,443 $1,764 $1,955 
State386 424 489 
Total current1
1,829 2,188 2,444 
Deferred:
Federal236 — 3 
State28 8 2 
Total deferred1
264 8 5 
Total income tax provision$2,093 $2,196 $2,449 
1    Amounts applicable to foreign income taxes were insignificant for all periods presented.

The tax effects of cumulative temporary differences that gave rise to the deferred tax assets and liabilities were as follows:
(In millions)January 30, 2026January 31, 2025
Deferred tax assets:
Self-insurance$240 $233 
Share-based payment expense49 46 
Operating lease liabilities1,266 1,143 
Capital loss carryforwards691 645 
Net operating losses283 261 
Other, net559 390 
Total deferred tax assets3,088 2,718 
Valuation allowance(1,072)(1,003)
Net deferred tax assets2,016 1,715 
Deferred tax liabilities:
Operating lease right-of-use assets(1,136)(1,012)
Goodwill and Other Intangibles(1,089)(37)
Property(731)(315)
Other, net(99)(107)
Total deferred tax liabilities(3,055)(1,471)
Net deferred tax (liabilities)/assets$(1,039)$244 

As of January 30, 2026, and January 31, 2025, the Company had Canadian net operating loss carryforwards of $1.1 billion and $1.0 billion, respectively.  The net operating losses expire in 2026 through 2043.  As of January 30, 2026, and January 31, 2025, the Company had capital loss carryforwards of $2.7 billion and $2.5 billion, respectively, for Canadian tax purposes which do not expire. A valuation allowance of $1.1 billion and $1.0 billion was recorded as of January 30, 2026, and January 31, 2025, respectively.
A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows:
Years Ended
(In millions)January 30, 2026January 31, 2025February 2, 2024
Unrecognized tax benefits, beginning of year$37 $37 $37 
Additions for tax positions of prior years— — — 
Settlements— — — 
Unrecognized tax benefits, end of year$37 $37 $37 

The unrecognized tax benefits that, if recognized, would favorably impact the effective tax rate were $37 million as of January 30, 2026, and January 31, 2025.

The net interest expense recognized by the Company related to uncertain tax positions was $3 million for 2025, $1 million for 2024, and $1 million for 2023. The Company had $18 million and $15 million of accrued interest related to uncertain tax positions as of January 30, 2026, and January 31, 2025, respectively.

No penalties were recognized related to uncertain tax positions for 2025, 2024, and 2023. The Company had $4 million of accrued penalties related to uncertain tax positions as of January 30, 2026, and January 31, 2025, respectively.

The Company is subject to examination by various foreign and domestic taxing authorities. There are ongoing U.S. state audits covering tax years 2017 to 2024. Audits performed by the Canada Revenue Agency for fiscal years 2021 and 2022 are on-going. The Company remains subject to income tax examinations for fiscal years 2015 through 2024. The Company believes appropriate provisions for all outstanding issues have been made for all jurisdictions and all open years.