Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.20.1
INCOME TAXES (Tables)
12 Months Ended
Feb. 01, 2020
INCOME TAXES  
Schedule of reconciliation of income tax expense computed at the U.S. federal statutory tax rate

The reconciliation of income tax expense computed at the U.S. federal statutory tax rate to income tax expense reported in our consolidated statements of comprehensive income is as follows (in thousands):

Fiscal Year

    

2019

    

2018

2017

Income taxes at statutory rate

$

75,258

21.0

%

$

87,581

21.0

%

$

204,256

33.7

%

State income taxes, net of federal benefit

 

14,716

4.1

 

13,095

3.1

 

18,224

3.0

Foreign tax rate differential

(22,740)

(6.4)

(22,718)

(5.4)

(31,570)

(5.2)

Tax Act adjustments

 

 

987

0.2

14,557

2.4

Tax on GILTI, net

 

7,865

2.2

 

3,799

0.9

Share-based compensation

4,225

1.2

843

0.2

(2,685)

(0.4)

Taxing authority examinations

5,861

1.4

Other

 

6,452

1.8

 

8,061

2.0

 

12,461

2.0

Total

$

85,776

23.9

%

$

97,509

23.4

%

$

215,243

35.5

%

Schedule of components of income tax expense

The components of our income tax expense are as follows (in thousands):

Fiscal Year

    

2019

    

2018

    

2017

Current:

Federal

  

$

58,966

  

$

61,910

  

$

186,784

State

 

12,995

 

15,502

 

26,434

Foreign

 

4,596

 

12,626

 

(2,027)

Total current income tax expense

76,557

90,038

211,191

Deferred:

Federal

 

2,762

 

9,200

 

3,961

State

 

5,632

 

1,073

 

(966)

Foreign

 

825

 

(2,802)

 

1,057

Total deferred income tax expense

9,219

7,471

4,052

Income taxes

$

85,776

$

97,509

$

215,243

Schedule of significant components of deferred income tax assets and liabilities

Significant components of deferred income tax assets and liabilities are as follows (in thousands):

February 1,

February 2,

2020

  

2019

Deferred income tax assets:

  

Operating lease liabilities

$

367,390

$

14,529

Accrued liabilities

13,804

13,031

Self-insurance

14,028

14,028

Gift cards

10,225

8,784

Share-based compensation

6,760

8,255

Interest rate swaps

4,306

1,655

Goodwill

4,760

678

Other intangible assets

3,305

638

State income taxes

 

4,540

3,949

State and foreign net operating losses

7,843

7,286

Tax credits

4,184

3,833

Other

 

2,664

768

Total gross deferred income tax assets

 

443,809

77,434

Valuation allowance

 

(9,209)

(5,430)

Total deferred income tax assets, net of valuation allowance

434,600

72,004

Deferred income tax liabilities:

Operating lease assets

(351,964)

Property and equipment

 

(49,604)

(39,046)

Merchandise inventories

(9,866)

(3,198)

Prepaid expenses

(4,965)

(4,755)

Total deferred income tax liabilities

 

(416,399)

(46,999)

Net deferred income tax assets

$

18,201

$

25,005

Schedule of reconciliation of gross unrecognized tax benefits

A reconciliation of unrecognized tax benefits from the end of fiscal 2018 through the end of fiscal 2019 is as follows (in thousands):

Balance at beginning of year

$

58,820

Additions related to the current year

 

7,076

Additions related to prior years

 

5,837

Reductions related to prior years

(2,972)

Expiration of applicable statute of limitations

 

(336)

Settlement of tax positions

(8)

Balance at end of year

$

68,417