Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.6.0.2
INCOME TAXES (Tables)
12 Months Ended
Jan. 28, 2017
INCOME TAXES  
Earnings (loss) before income taxes

Earnings (loss) before income taxes (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

    

2016

    

2015

    

2014

 

United States

 

$

(9,986)

 

$

(1,242,022)

 

$

(44,346)

 

Foreign

 

 

41,567

 

 

46,261

 

 

49,722

 

Total

 

$

31,581

 

$

(1,195,761)

 

$

5,376

 

 

Provision (benefit) for income taxes

The provision (benefit) for income taxes consists of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

    

2016

    

2015

    

2014

 

Current tax expense (benefit):

 

 

    

 

 

    

 

 

    

 

Federal

 

$

18,545

 

$

5,615

 

$

7,328

 

State

 

 

912

 

 

1,877

 

 

(975)

 

Foreign

 

 

11,156

 

 

8,307

 

 

12,225

 

Deferred tax (benefit) expense:

 

 

                      

 

 

 

 

 

 

 

Federal and state

 

 

(23,135)

 

 

(185,440)

 

 

(12,450)

 

Foreign

 

 

(853)

 

 

599

 

 

(657)

 

Total

 

$

6,625

 

$

(169,042)

 

$

5,471

 

 

Effective tax rate reconciliation

A reconciliation of the statutory federal income tax rate to our effective tax rate is as follows:

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

    

2016

    

2015

    

2014

 

Federal statutory rate

 

35.0

%

(35.0)

%

35.0

%

State income taxes, net of federal benefit

 

(5.6)

 

(2.0)

 

2.2

 

Uncertain tax positions

 

1.0

 

0.1

 

(0.6)

 

Foreign tax rate differential

 

(14.3)

 

(0.5)

 

(85.0)

 

Amortizable tax goodwill

 

(5.0)

 

(0.1)

 

(32.5)

 

Goodwill impairment

 

 —

 

22.5

 

 —

 

Non-deductible transaction cost

 

 —

 

 —

 

187.8

 

Valuation allowance

 

10.3

 

0.5

 

(10.7)

 

Tax credits

 

(3.4)

 

 —

 

 —

 

Adjustments to net tax accruals

 

4.4

 

0.5

 

 —

 

Other

 

(1.4)

 

(0.1)

 

5.6

 

 

 

21.0

%

(14.1)

%

101.8

%

 

Schedule of deferred tax assets and liabilities and the related temporary differences

Total deferred tax assets and liabilities and the related temporary differences as of January 28, 2017 and January 30, 2016 were as follows (in thousands):

 

 

 

 

 

 

 

 

 

    

January 28,

    

January 30,

 

 

 

2017

 

2016

 

Deferred tax assets:

 

 

 

 

 

 

 

Accrued rent and other expenses

 

$

53,851

 

$

55,623

 

Accrued compensation

 

 

28,530

 

 

28,822

 

Accrued inventory markdowns

 

 

8,330

 

 

11,778

 

Other

 

 

2,902

 

 

2,255

 

Tax loss and other carryforwards

 

 

23,361

 

 

24,955

 

Total deferred tax assets

 

 

116,974

 

 

123,433

 

Valuation allowance

 

 

(9,830)

 

 

(6,185)

 

Net deferred tax assets

 

 

107,144

 

 

117,248

 

Deferred tax liabilities:

 

 

 

 

 

 

 

Property and equipment

 

 

(79,217)

 

 

(99,846)

 

Capitalized inventory costs

 

 

(30,977)

 

 

(40,621)

 

Intangibles

 

 

(65,776)

 

 

(65,329)

 

Other

 

 

(1,770)

 

 

(2,579)

 

Total deferred tax liabilities

 

 

(177,740)

 

 

(208,375)

 

Net deferred tax liabilities

 

$

(70,596)

 

$

(91,127)

 

 

Summary of activity related to uncertain tax positions

The following table summarizes the activity related to our uncertain tax positions (in thousands):

 

 

 

 

 

 

 

 

 

    

January 28,

    

January 30,

 

 

 

2017

 

2016

 

Gross uncertain tax positions, beginning balance

 

$

20,868

 

$

19,776

 

Increase in tax positions for prior years

 

 

2,343

 

 

24

 

Decrease in tax positions for prior years

 

 

(2,321)

 

 

 —

 

Increase in tax positions due to business combinations

 

 

 —

 

 

1,193

 

Increase in tax positions for current year

 

 

 —

 

 

 —

 

Decrease in tax positions for current year

 

 

 —

 

 

 —

 

Settlements

 

 

 —

 

 

 —

 

Lapse from statute of limitations

 

 

(1,440)

 

 

(125)

 

Gross uncertain tax positions, ending balance

 

$

19,450

 

$

20,868