Income Taxes (Tables)

12 Months Ended

Jan. 31, 2026

The following table provides the components of the Company’s Provision for Income Taxes for 2025, 2024 and 2023:


	2025		2024		2023
	(in millions)
Current:
U.S. Federal	$	26	$	46	$	19
U.S. State	13		17		10
Non-U.S.	29		18		18
Total	68		81		47
Deferred:
U.S. Federal	(22)		(26)		(14)
U.S. State	(6)		(6)		(2)
Non-U.S.	(21)		3		—
Total	(49)		(29)		(16)
Provision for Income Taxes	$	19	$	52	$	31

Reconciliation of the Statutory Federal Income Tax Rate and the Effective Tax Rate

The following table provides the reconciliation between the statutory federal income tax rate and the effective tax rate for 2025, 2024 and 2023:


	2025				2024				2023
	(in millions)
	Amount		Percent		Amount		Percent		Amount		Percent
U.S. Federal Statutory Tax Rate	$	44	21.0	%	$	46	21.0	%	$	31	21.0	%
State and Local Income Taxes, Net of Federal (1)	8		3.7	%	8		3.7	%	6		4.1	%
Foreign Tax Effects
China
Valuation Allowance Adjustments	(31)		(15.1	%)	(1)		(0.4	%)	(2)		(1.5	%)
Withholding Taxes and Other (2)	4		1.8	%	2		1.0	%	2		1.1	%
Hong Kong
Foreign Rate Differential	(3)		(1.2	%)	(3)		(1.3	%)	(3)		(2.3	%)
Nontaxable or Nondeductible Items	(6)		(2.6	%)	(8)		(3.6	%)	(10)		(6.8	%)
Minimum Tax	5		2.5	%	—		—	%	—		—	%
India
Withholding Taxes and Other (2)	4		1.8	%	3		1.0	%	1		0.5	%
Malta
Foreign Rate Differential	5		2.4	%	—		—	%	—		—	%
Nontaxable or Nondeductible Items	(11)		(5.1	%)	—		—	%	—		—	%
Tax Credit	(1)		(0.7	%)	—		—	%	—		—	%
Puerto Rico
Withholding Taxes and Other (2)	1		0.6	%	1		0.6	%	2		1.4	%
Other Foreign Jurisdictions
Withholding Taxes and Other (2)	8		3.7	%	8		3.4	%	6		3.9	%
Effect of Cross-Border Tax Laws
Net Controlled Foreign Corporation Income	4		1.8	%	2		0.9	%	4		2.4	%
Foreign-Derived Deduction Eligible Income	(4)		(1.7	%)	(3)		(1.2	%)	(2)		(1.2	%)
Tax Credits
Jobs Tax Credit	(2)		(0.7	%)	(2)		(0.7	%)	(2)		(1.1	%)
Foreign Tax Credit	(12)		(5.7	%)	(10)		(4.7	%)	(9)		(5.7	%)
Valuation Allowances	(3)		(1.5	%)	1		0.4	%	(2)		(1.1	%)
Nontaxable or Nondeductible Items
Share-based Compensation	1		0.6	%	3		1.4	%	1		0.8	%
Compensation, Other than Share-based	6		2.7	%	7		3.0	%	8		5.5	%
Income from Unconsolidated Affiliate	(1)		(0.6	%)	(2)		(0.9	%)	(2)		(1.1	%)
Other	2		1.0	%	—		—	%	1		0.6	%
Changes in Unrecognized Tax Benefits	1		0.5	%	—		—	%	1		0.9	%

Effective Tax Rate	$	19	9.2	%	$	52	23.6	%	$	31	21.4	%

(1) California, New York, Texas, Florida and New Jersey comprise the majority (more than 50%) of state and local income taxes in this category, net of federal income tax effects.

(2) Includes withholding taxes and other taxes which are not material to the effective tax rate reconciliation.

Effect of Temporary Differences that Cause Deferred Income Taxes

The following table provides the effect of temporary differences that cause deferred income taxes as of January 31, 2026 and February 1, 2025. Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carryforwards at the end of the respective year.


	January 31, 2026						February 1, 2025
	Assets		Liabilities		Total		Assets		Liabilities		Total
	(in millions)
Loss Carryforwards	$	113	$	—	$	113	$	120	$	—	$	120
Leases	471		(432)		39		443		(402)		41
Deferred Revenue	42		—		42		47		—		47
Accrued Expenses	44		—		44		37		—		37
Share-based Compensation	13		—		13		14		—		14
Trade Name and Other Intangibles	—		(57)		(57)		—		(91)		(91)
Property and Equipment	—		(53)		(53)		—		(42)		(42)
Other	39		(13)		26		31		(10)		21
Valuation Allowance	(107)		—		(107)		(136)		—		(136)
Total Deferred Income Taxes	$	615	$	(555)	$	60	$	556	$	(545)	$	11

Schedule of Unrecognized Tax Benefits Roll Forward

The following table summarizes the activity related to the Company’s unrecognized tax benefits for U.S. federal, state and non-U.S. tax jurisdictions for 2025, 2024 and 2023, without interest and penalties:


	2025		2024		2023
	(in millions)
Gross Unrecognized Tax Benefits, as of the Beginning of the Fiscal Year	$	43	$	38	$	31
Increases to Unrecognized Tax Benefits as a Result of Current Year Activity	2		9		9
Increases to Unrecognized Tax Benefits for Prior Years, Including Acquisitions	2		—		13
Decreases to Unrecognized Tax Benefits for Prior Years	(3)		(4)		(15)
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities	(29)		—		—
Decreases to Unrecognized Tax Benefits due to Lapse of Statute of Limitations	(4)		—		—
Gross Unrecognized Tax Benefits, as of the End of the Fiscal Year	$	11	$	43	$	38

Schedule of Income before Income Tax, Domestic and Foreign

The following table provides the components of Income Before Income Taxes for 2025, 2024 and 2023:


	2025		2024		2023
	(in millions)
U.S.	$	65	$	129	$	35
Non-U.S.	143		92		112
Income Before Income Taxes	$	208	$	221	$	147

Schedule of Cash Flow, Supplemental Disclosures

The following table provides income taxes paid by jurisdiction for 2025, 2024 and 2023:


	2025		2024		2023
	(in millions)
Federal	$	58	$	26	$	36
State	9		12		12
Foreign
Hong Kong	3		2		11
Other	17		14		15
Total Income Tax Payments	$	87	$	54	$	74

Victoria's Secret & Co. 10-K