v3.26.1
INCOME TAXES (Tables)
 12 Months Ended
Aug. 01, 2026
Income Tax Disclosure [Abstract]  
Schedule of Domestic and Foreign Components of Income (Loss)
The domestic and foreign components of income (loss) before income taxes were as follows:
(in millions)202620252024
U.S. operations$90 $(163)$(145)
Foreign operations12 9 8 
Total$102 $(154)$(137)
Schedule of Components of Income Tax Expense (Benefit)
The income tax expense (benefit) was allocated as follows:
(in millions)202620252024
Income tax expense (benefit)
$18 $(39)$(27)
Other comprehensive income (loss)2 2 (6)
Total$20 $(37)$(33)

Total income tax expense (benefit) consisted of the following:
(in millions)202620252024
Current:
U.S. Federal$(14)$11 $15 
State and Local2 3 5 
Foreign3 3 2 
Total current
(9)17 22 
Deferred:
U.S. Federal17 (42)(41)
State and Local10 (14)(8)
Foreign— — — 
Total deferred
27 (56)(49)
Total
$18 $(39)$(27)
Schedule of Effective Income Tax Rate Reconciliation The reconciliation of the provision for income taxes at the U.S. federal income tax rate to the Company’s income tax provision for the fiscal years 2026, 2025 and 2024 is as follows:
202620252024
(in millions, except percentages)AmountPercentAmountPercentAmountPercent
U.S. federal statutory income tax rate$22 21.0 %$(32)21.0 %$(29)21.0 %
State and local income tax, net of federal income tax effect(1)
10 9.9 (8)4.9 (4)2.9 
Tax credits(2)
(10)(9.3)(4)2.5 (4)2.5 
Changes in valuation allowances— — 5 (3.4)2 (1.9)
Nontaxable or nondeductible items:
Compensation related items(3)
(3)(2.6)2 (1.8)5 (3.3)
Changes in unrecognized tax benefits(6)(6.3)— — — — 
Other adjustments(4)
5 4.9 (2)2.1 3 (1.5)
Effective income tax rate$18 17.6 %$(39)25.3 %$(27)19.7 %
(1)For fiscal 2026, state taxes in Virginia, California, and Pennsylvania contributed to the majority (greater than 50%) of the tax effect in this category. For fiscal 2025, state taxes in California, Maryland and Minnesota contributed to the majority (greater than 50%) of the tax effect in this category. For fiscal 2024, state taxes in California and Minnesota contributed to the majority (greater than 50%) of the tax effect in this category.
(2)Reflects all tax credits reportable as general business credits and includes investment, research and development, and employment tax credits.
(3)This category includes the impact of share-based compensation as well as other nontaxable and nondeductible compensation items.
(4)Foreign tax effects on the effective rate are included in Other adjustments due to immateriality for all periods presented and relate to Canada.
Schedule of Cash Flow, Supplemental Disclosures
Total cash payments, net of refunds received, for income taxes consisted of the following:
(in millions)202620252024
U.S. Federal$— $— $(1)
State and Local:
California2 *(2)
Illinois*1 (9)
Maryland(1)**
Minnesota1 (4)*
New York*1 *
Pennsylvania*1 (3)
Virginia— *(1)
Other state and local (1)
3 1 1 
Foreign (2)
2 4 1 
Total$7 $4 $(14)
*The amount of income taxes paid during the year does not meet the 5% disaggregation threshold.
(1)For fiscal 2026, income taxes paid to Virginia meet the 5% disaggregation threshold but are included in Other state and local taxes due to rounding. For fiscal 2025, income taxes paid to the following jurisdictions meet the 5% disaggregation threshold but are included in Other state and local taxes due to rounding: Florida, Missouri, New Hampshire, New Jersey, New York City, and Texas.
(2)Foreign cash taxes relate to Canada for all periods presented.
Schedule of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
(in millions)202620252024
Unrecognized tax benefits at beginning of period$8 $7 $11 
Unrecognized tax benefits added during the period— 2 1 
Decreases in unrecognized tax benefits due to statute expiration(1)— (3)
Decreases in unrecognized tax benefits from a prior period(5)— — 
Decreases in unrecognized tax benefits due to settlements — (1)(2)
Unrecognized tax benefits at end of period$2 $8 $7 
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 1, 2026 and August 2, 2025 are presented below:
(in millions)August 1,
2026		August 2,
2025
Deferred tax assets:
Compensation and benefits related$28 $33 
Accounts receivable, principally due to allowances for uncollectible accounts9 9 
Accrued expenses26 39 
Capitalized research and development47 56 
Net operating loss carryforwards18 18 
Other tax carryforwards123 107 
Foreign tax credits1 1 
Intangible assets28 37 
Lease liabilities387 414 
Interest rate swap agreements— 1 
Other deferred tax assets7 3 
Total gross deferred tax assets674 718 
Less valuation allowance(20)(17)
Net deferred tax assets$654 $701 
Deferred tax liabilities:
Plant and equipment, principally due to differences in depreciation$119 $126 
Inventories22 25 
Lease right of use assets353 388 
Interest rate swap agreements2 — 
Total deferred tax liabilities496 539 
Net deferred tax assets$158 $162