From the income statement, determine the income tax expense for the year ended February 3, 2018. Tie that number to the second table in Disclosure Note 23, Provision for Income Taxes, and prepare a summary journal entry that records targets tax expense from continuing operations for the year ended February 3, 2018.

Consolidated Statements of Financial Position February 3, January 28, (millions, except footnotes) 2018 2017 Assets Cash and cash equivalents $ 2,643 $ 2,512 Inventory 8,657 8,309 Other current assets 1,264 1,169 Total current assets 12,564 11,990 Property and equipment Land 6,095 6,106 Buildings and improvements 28,396 27,611 Fixtures and equipment 5,623 5,503 Computer hardware and software 2,645 2,651 Construction-in-progress 440 200 Accumulated depreciation (18,181) (17,413) Property and equipment, net 25,018 24,658 Other noncurrent assets 1,417 783 Total assets $ 38,999 $ 37,431 Liabilities and shareholders' investment Accounts payable $ 8,677 $ 7,252 Accrued and other current liabilities 4,254 3,737 Current portion of long-term debt and other borrowings - 270 1,718 Total current liabilities 13,201 12,707 Long-term debt and other borrowings 11,317 11,031 Deferred income taxes 713 861 Other noncurrent liabilities 2,059 2,059 1,879 Total noncurrent liabilities 14,089 13,771 Shareholders' investment Common stock 45 46 Additional paid-in capital 5,858 5,661 Retained earnings 6,553 5,884 Accumulated other comprehensive loss (747) (638) Total shareholders' investment 11,709 10,953 Total liabilities and shareholders' investment $ 38,999 $ 37,431 Common Stock Authorized 6,000,000,000 shares $0.0833 par value; 541,681,670 shares issued and outstanding at February 3, 2018;556,156,228 shares issued and outstanding at January 28, 2017. Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding at February 3, 2018 or January 28, 2017 See accompanying Notes to Consolidated Financial Statements. Consolidated Statements of Operations (620) 6 (millions, except per share data) 2017 2016 2015 Sales 71,879 $ 69,495 $ 73,785 Cost of sales (a) 51,125 49,145 52,241 Gross margin 20,754 20,350 21,544 Selling, general and administrative expenses 14,248 13,356 14,665 Depreciation and amortization (exclusive of depreciation included in cost of sales) (a) 2,194 2,025 1,969 Gain on sale Earnings from continuing operations before interest expense and income taxes 4,312 4,969 5,530 Net interest expense 666 1,004 607 Earnings from continuing operations before income taxes 3,646 3,965 4,923 Provision for income taxes 718 1,296 1,602 Net earnings from continuing operations 2,928 2,669 3,321 Discontinued operations, net of tax 6842 Net earnings $ 2,934 $ 2,737 $ 3,363 Basic earnings per share Continuing operations $ 5.35 $ 4.62 $ 5.29 Discontinued operations 0.01 0.12 0.07 Net earnings per share $ 5.36 $ 4.74 $ 5.35 Diluted earnings per share Continuing operations $ 5.32 $ 4.58 $ 5.25 Discontinued operations 0.01 0.12 0.07 Net earnings per share $ 5.33 $ 4.70 $ 5.31 Weighted average common shares outstanding Basic 546.8 577.6 627.7 Dilutive effect of share-based awards 3.5 4.9 5.2 Diluted 550.3 582.5 632.9 Antidilutive shares 4.1 0.1 Dividends declared per share $ 2.46 $ 2.36 $ 2.20 Note: Per share amounts may not foot due to rounding. Refer to Note 3 for additional information about a reclassification of supply chain-related depreciation expense to Cost of Sales. See accompanying Notes to Consolidated Financial Statements. 23. Income Taxes In December 2017, the U.S. government enacted the Tax Cuts and Jobs Act tax reform legislation (the Tax Act), which among other matters reduced the U.S. corporate income tax rate from 35 percent to 21 percent effective January 1, 2018. The Tax Act implements a territorial tax system and imposes a one-time repatriation tax on deemed repatriated accumulated foreign earnings as of December 31, 2017. The one-time repatriation tax was not material because our foreign entities have an accumulated earnings deficit, driven by our discontinued operations. We recognized the income tax effects of the Tax Act in our 2017 financial statements in accordance with Staff Accounting Bulletin No. 118 (SAB 118), which provides SEC staff guidance for the application of ASC Topic 740, Income Taxes, in the reporting period in which the Tax Act was signed into law. As such, our financial results reflect the income tax effects of the Tax Act for which the accounting under ASC Topic 740 is complete and provisional amounts for those specific income tax effects of the Tax Act for which the accounting under ASC Topic 740 is incomplete but a reasonable estimate could be determined. We have not identified any items for which the income tax effects of the Tax Act could not be reasonably estimated. We have recorded a provisional $352 million net tax benefit primarily related to the remeasurement of certain deferred tax assets and liabilities, including $381 million of benefit from the new lower rate, partially offset by $29 million of 50 deferred income tax expense from our foreign operations. Additional work is necessary for a more detailed analysis of (1) certain deferred tax assets and liabilities, including 2017 accelerated depreciation deductions and (2) historical foreign earnings and outside book/tax basis differences. We do not expect subsequent adjustments to be material, but any such adjustments related to these amounts will be recorded to tax expense in the quarter of 2018 in which we complete the analysis. Earnings from continuing operations before income taxes were $3,646 million, $3,965 million, and $4,923 million during 2017, 2016, and 2015, respectively, including $722 million, $336 million, and $373 million earned by our foreign entities subject to tax outside of the U.S. Tax Rate Reconciliation - Continuing Operations 2017 2016 2015 Federal statutory rate 33.7% 35.0% 35.0% State income taxes, net of the federal tax benefit 2.2 2.7 3.0 International (4.6) (2.6) (2.3) Tax Act (6) (9.6) Excess tax benefit related to share-based payments (6) (0.1) (0.6) Change in valuation allowance (2.3) Other (1.9) (1.8) (0.9) Effective tax rate 19.7% 32.7% 32.5% For 2017, represents the blended rate of 35 percent for 11/12 of the year and 21 percent for 1/12 of the year. Represents the discrete benefit of remeasuring our net deferred tax liabilities at the new lower U.S. corporate income tax rate. Refer to Note 26. 2017 2016 2015 1,108 $ 141 746 $ 105 59 910 1,652 265 7 1,924 1,255 Provision for Income Taxes (millions) Current: Federal State International Total current Deferred: Federal State International Total deferred () Total provision For 2017, includes $352 million of benefit related to the Tax Act. (234) 28 14 (272) (50) 21 21 (1) 41 1,296 $ - (192) (322) 1,602 $ 718 $ February 3, 2018 January 28, 2017 $ 262 $ 256 109 164 Net Deferred Tax Asset/(Liability) (millions) Gross deferred tax assets: Accrued and deferred compensation Accruals and reserves not currently deductible Self-insured benefits Prepaid store-in-store lease income Other Total gross deferred tax assets Gross deferred tax liabilities: Property and equipment Inventory Other Total gross deferred tax liabilities Total net deferred tax liability 455 328 178 258 62 1,281 42 833 (1,292) (130) (91) (1,513) (680) $ (1,822) (182) (102) (2,106) (825) $ In 2014, we incurred a tax effected capital loss of $112 million within discontinued operations from our exit from Canada. At that time, we neither had nor anticipated sufficient capital gains to absorb this capital loss, and established a full valuation allowance within discontinued operations. In 2015, we released the entire $112 million valuation allowance due to a capital gain resulting from the Pharmacy Transaction. The benefit of the valuation allowance release was recorded in continuing operations in 2015. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted income tax rates in effect for the year the temporary differences are expected to be recovered or settled. Tax rate changes affecting deferred tax assets and liabilities are recognized at the enactment date. We recognized a provisional net tax benefit of $381 million in 2017 because we remeasured our net deferred tax liabilities using the new lower U.S. corporate tax rate. In 2017, due to changes effected by the Tax Act and other reasons, we have not asserted indefinite reinvestment in our foreign operations. Because of this change, we recorded a deferred tax charge of $29 million during 2017 We file a U.S. federal income tax return and income tax returns in various states and foreign jurisdictions. The U.S. Internal Revenue Service has completed exams on the U.S. federal income tax returns for years 2012 and prior. With few exceptions, we are no longer subject to state and local or non-U.S. income tax examinations by tax authorities for years before 2009. 2015 155 10 Reconciliation of Liability for Unrecognized Tax Benefits (millions) Balance at beginning of period Additions based on tax positions related to the current year Additions for tax positions of prior years Reductions for tax positions of prior years Settlements Balance at end of period 2017 2016 153 $ 153 $ 11212 1426 (71) (16) (11) (2) 325 $ 153 $ (26) $ - 153