Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.19.1
INCOME TAXES (Tables)
12 Months Ended
Feb. 02, 2019
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

 

 

    

2018

 

    

2017

 

 

2016

 

Income taxes at statutory rate

 

$

87,581

 

21.0

%

 

$

204,256

 

33.7

%

 

$

203,621

 

35.0

%

State income taxes, net of federal benefit

 

 

13,095

 

3.1

 

 

 

18,224

 

3.0

 

 

 

10,665

 

1.8

 

Foreign tax rate differential

 

 

(22,718)

 

(5.4)

 

 

 

(31,570)

 

(5.2)

 

 

 

(8,820)

 

(1.5)

 

Tax Act adjustments

 

 

987

 

0.2

 

 

 

14,557

 

2.4

 

 

 

 —

 

 —

 

Tax on global intangible low-taxed income, net

 

 

3,799

 

0.9

 

 

 

 —

 

 —

 

 

 

 —

 

 —

 

Taxing authority examinations

 

 

5,861

 

1.4

 

 

 

 —

 

 —

 

 

 

 —

 

 —

 

Other

 

 

8,904

 

2.2

 

 

 

9,776

 

1.6

 

 

 

(1,852)

 

(0.3)

 

Total

 

$

97,509

 

23.4

%

 

$

215,243

 

35.5

%

 

$

203,614

 

35.0

%

 

Schedule of components of income tax expense

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

    

2018

    

2017

    

2016

Current:

 

 

 

 

 

 

 

 

 

Federal

  

$

61,910

  

$

186,784

  

$

171,934

State

 

 

15,502

 

 

26,434

 

 

15,970

Foreign

 

 

12,626

 

 

(2,027)

 

 

8,487

Total current income tax expense

 

 

90,038

 

 

211,191

 

 

196,391

 

 

 

 

 

 

 

 

 

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

9,200

 

 

3,961

 

 

4,055

State

 

 

1,073

 

 

(966)

 

 

1,139

Foreign

 

 

(2,802)

 

 

1,057

 

 

2,029

Total deferred income tax expense

 

 

7,471

 

 

4,052

 

 

7,223

 

 

 

 

 

 

 

 

 

 

Income taxes

 

$

97,509

 

$

215,243

 

$

203,614

 

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 2,

 

February 3,

 

 

2019

  

2018

Deferred income tax assets:

  

 

 

 

 

 

Accrued liabilities

 

$

13,031

 

$

12,378

Self-insurance

 

 

14,028

 

 

14,740

Deferred rent

 

 

14,529

 

 

14,108

Gift cards

 

 

8,784

 

 

8,392

Share-based compensation

 

 

8,255

 

 

7,119

Original issue discount

 

 

 —

 

 

2,829

State income taxes

 

 

3,949

 

 

5,033

State and foreign net operating losses

 

 

7,286

 

 

6,247

Tax credits and deferred interest

 

 

3,833

 

 

2,657

Other

 

 

3,739

 

 

1,783

Total gross deferred income tax assets

 

 

77,434

 

 

75,286

Valuation allowance

 

 

(5,430)

 

 

(2,640)

Total deferred income tax assets, net of valuation allowance

 

 

72,004

 

 

72,646

 

 

 

 

 

 

 

Deferred income tax liabilities:

 

 

 

 

 

 

Property and equipment

 

 

(39,046)

 

 

(25,398)

Merchandise inventories

 

 

(3,198)

 

 

(8,447)

Prepaid expenses

 

 

(4,755)

 

 

(2,538)

Cancellation of debt

 

 

 —

 

 

(4,783)

Total deferred income tax liabilities

 

 

(46,999)

 

 

(41,166)

 

 

 

 

 

 

 

Net deferred income tax assets

 

$

25,005

 

$

31,480

 

Schedule of reconciliation of gross unrecognized tax benefits

A reconciliation of gross unrecognized tax benefits from the end of fiscal 2017 through the end of fiscal 2018 is as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

Balance at beginning of year

 

$

46,894

Additions related to the current year

 

 

6,556

Additions related to prior years

 

 

12,870

Reductions related to prior years

 

 

(4,937)

Settlement of tax positions

 

 

(2,355)

Expiration of applicable statute of limitations

 

 

(208)

Balance at end of year

 

$

58,820