INCOME TAXES (Tables)

12 Months Ended

Aug. 02, 2025

Schedule of Components of Income Tax Expense (Benefit)

The income tax benefit was allocated as follows:


(in millions)	2025		2024		2023
Income tax benefit	$	(39)	$	(27)	$	(23)

Other comprehensive income (loss)	2		(6)		(2)
Total	$	(37)	$	(33)	$	(25)

Total federal, state and foreign income tax benefit consists of the following:


(in millions)	Current		Deferred		Total
Fiscal 2025
U.S. Federal	$	11	$	(42)	$	(31)
State and Local	3		(14)		(11)
Foreign	3		—		3
	$	17	$	(56)	$	(39)
Fiscal 2024
U.S. Federal	$	15	$	(41)	$	(26)
State and Local	5		(8)		(3)
Foreign	2		—		2
	$	22	$	(49)	$	(27)
Fiscal 2023
U.S. Federal	$	23	$	(36)	$	(13)
State and Local	(11)		(1)		(12)
Foreign	1		1		2
	$	13	$	(36)	$	(23)

Schedule of Effective Income Tax Rate Reconciliation

Total income tax benefit was different than the amounts computed by applying the statutory federal income tax rate to income before income taxes because of the following:


(in millions)	2025		2024		2023
Computed “expected” tax expense	$	(32)	$	(29)	$	1
State and local income tax, net of Federal income tax benefit	(10)		(9)		(1)
Non-deductible expenses	3		2		3
Tax effect of share-based compensation	—		5		(9)
General business credits	(4)		(2)		(8)
Unrecognized tax benefits	—		—		(16)
Enhanced inventory donations	(1)		(1)		(1)
Changes in valuation allowance	7		6		4
Other, net	(2)		1		4
Total income tax benefit	$	(39)	$	(27)	$	(23)

Summary of Unrecognized Tax Benefits Roll Forward

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


(in millions)	2025		2024		2023
Unrecognized tax benefits at beginning of period	$	7	$	11	$	19
Unrecognized tax benefits added during the period	2		1		5

Decreases in unrecognized tax benefits due to statute expiration	—		(3)		(5)
Decreases in unrecognized tax benefits due to settlements	(1)		(2)		(8)
Unrecognized tax benefits at end of period	$	8	$	7	$	11

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets and deferred tax liabilities at August 2, 2025 and August 3, 2024 are presented below:


(in millions)	August 2, 2025		August 3, 2024
Deferred tax assets:

Compensation and benefits related	$	33	$	35
Accounts receivable, principally due to allowances for uncollectible accounts	9		4
Accrued expenses	39		27
Capitalized research and development	56		49
Net operating loss carryforwards	18		13
Other tax carryforwards	107		59
Foreign tax credits	1		1
Intangible assets	37		45
Lease liabilities	414		381
Interest rate swap agreements	1		—
Other deferred tax assets	3		1
Total gross deferred tax assets	718		615
Less valuation allowance	(17)		(9)
Net deferred tax assets	$	701	$	606
Deferred tax liabilities:
Plant and equipment, principally due to differences in depreciation	$	126	$	133
Inventories	25		25
Lease right of use assets	388		361



Total deferred tax liabilities	539		519
Net deferred tax assets	$	162	$	87