Income Taxes |
6 Months Ended |
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Aug. 01, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The provision for income taxes is based on the current estimate of the annual effective tax rate and is adjusted as necessary for quarterly events. For the second quarter of 2026, the Company’s effective tax rate was 28.0% compared to 32.3% in the second quarter of 2025. The 2026 second quarter rate was higher than the Company’s combined estimated federal and state statutory rates primarily due to the impact of non-U.S. operations. The 2025 second quarter rate was higher than the Company’s combined estimated federal and state statutory rates largely due to the transition of certain members of the leadership team, primarily related to severance benefits. For year-to-date 2026, the Company’s effective tax rate was 8.8% compared to 29.9% for year-to-date 2025. The 2026 year-to-date rate was lower than the Company’s combined estimated federal and state statutory rates largely due to the resolution of certain tax matters. The 2025 year-to-date rate was higher than the Company’s combined estimated federal and state statutory rates largely due to accrued interest expense related to unrecognized tax benefits and the transition of certain members of the leadership team, primarily related to severance benefits. Uncertain Tax Positions The Company had unrecognized tax benefits of $131 million as of January 31, 2026, of which $75 million, if recognized, would reduce the effective income tax rate. Through August 1, 2026, the Company had a net decrease to gross unrecognized tax benefits of $85 million, primarily due to the resolution of certain tax matters. The changes to the unrecognized tax benefits resulted in a $39 million benefit in Provision for Income Taxes in the year-to-date 2026 Consolidated Statement of Income. The Company recognizes interest and penalties related to unrecognized tax benefits as components of income tax expense. The Company had accrued $8 million and $36 million as of August 1, 2026 and January 31, 2026, respectively, for the payment of interest and penalties.
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