Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.20.4
INCOME TAXES (Tables)
12 Months Ended
Jan. 30, 2021
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

    

2020

    

2019

2018

Income taxes at statutory rate

$

75,727

21.0

%

$

75,258

21.0

%

$

87,581

21.0

%

State income taxes, net of federal benefit

 

13,899

3.9

 

14,716

4.1

 

13,095

3.1

Foreign tax rate differential

(19,949)

(5.5)

(22,740)

(6.4)

(22,718)

(5.4)

U.S. tax on foreign operations

13,312

3.7

10,959

3.1

8,648

2.1

Share-based compensation

3,742

1.0

4,225

1.2

843

0.2

Taxing authority examinations

5,861

1.4

U.S. net operating loss carryback rate differential

(28,668)

(8.0)

Other

 

7,606

2.1

 

3,358

0.9

 

4,199

1.0

Total

$

65,669

18.2

%

$

85,776

23.9

%

$

97,509

23.4

%

Schedule of components of income tax expense

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

Fiscal Year

    

2020

    

2019

    

2018

Current:

Federal

  

$

(11,333)

  

$

58,966

  

$

61,910

State

 

16,977

 

12,995

 

15,502

Foreign

 

7,676

 

4,596

 

12,626

Total current income tax expense

13,320

76,557

90,038

Deferred:

Federal

 

51,878

 

2,762

 

9,200

State

 

616

 

5,632

 

1,073

Foreign

 

(145)

 

825

 

(2,802)

Total deferred income tax expense

52,349

9,219

7,471

Income taxes

$

65,669

$

85,776

$

97,509

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):

January 30,

February 1,

2021

  

2020

Deferred income tax assets:

  

Operating lease liabilities

$

447,152

$

367,390

Accrued liabilities

16,469

13,804

Self-insurance

14,073

14,028

Gift cards

12,880

10,225

Share-based compensation

5,018

6,760

State income taxes

5,068

4,540

Goodwill

4,198

4,760

Other intangible assets

3,674

3,305

Interest rate swaps

 

3,407

4,306

State and foreign net operating losses

23,513

7,843

Tax credits

6,390

4,184

Other

 

6,366

2,664

Total gross deferred income tax assets

 

548,208

443,809

Valuation allowance

 

(12,589)

(9,209)

Total deferred income tax assets, net of valuation allowance

535,619

434,600

Deferred income tax liabilities:

Operating lease assets

(417,248)

(351,964)

Tax method changes (1)

(91,701)

Property and equipment

 

(49,399)

(49,604)

Merchandise inventories

(7,697)

(9,866)

Prepaid expenses

(4,380)

(4,965)

Total deferred income tax liabilities

 

(570,425)

(416,399)

Net deferred income tax (liabilities) assets

$

(34,806)

$

18,201

(1) Future taxable income primarily related to property and equipment and gift cards.
Schedule of reconciliation of gross unrecognized tax benefits

A reconciliation of unrecognized tax benefits from the end of fiscal 2019 through the end of fiscal 2020 is as follows (in thousands):

Balance at beginning of year

$

68,417

Additions related to the current year

 

7,953

Additions related to prior years

 

1,940

Reductions related to prior years

(5,642)

Expiration of applicable statute of limitations

 

(2,019)

Settlement of tax positions

(585)

Balance at end of year

$

70,064