Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.8.0.1
INCOME TAXES (Tables)
12 Months Ended
Feb. 03, 2018
INCOME TAXES  
Earnings (loss) before income taxes

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

    

2017

    

2016

    

2015

 

United States

 

$

90,399

 

$

(9,986)

 

$

(1,242,022)

 

Foreign

 

 

44,555

 

 

41,567

 

 

46,261

 

Total

 

$

134,954

 

$

31,581

 

$

(1,195,761)

 

 

Provision (benefit) for income taxes

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

    

2017

    

2016

    

2015

 

Current tax expense:

 

 

    

 

 

    

 

 

    

 

Federal

 

$

25,701

 

$

18,545

 

$

5,615

 

State

 

 

5,067

 

 

912

 

 

1,877

 

Foreign

 

 

13,246

 

 

11,156

 

 

8,307

 

Deferred tax (benefit) expense:

 

 

                      

 

 

 

 

 

 

 

Federal and state

 

 

(21,187)

 

 

(23,135)

 

 

(185,440)

 

Foreign

 

 

15,424

 

 

(853)

 

 

599

 

Total

 

$

38,251

 

$

6,625

 

$

(169,042)

 

 

Effective tax rate reconciliation

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

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

    

2017

    

2016

    

2015

 

Federal statutory rate

 

33.7

%

35.0

%

(35.0)

%

State income taxes, net of federal benefit

 

1.2

 

(5.6)

 

(2.0)

 

Uncertain tax positions

 

(13.6)

 

1.0

 

0.1

 

Foreign tax rate differential

 

(2.9)

 

(14.3)

 

(0.5)

 

Amortizable tax goodwill

 

(1.1)

 

(5.0)

 

(0.1)

 

Goodwill impairment

 

 —

 

 —

 

22.5

 

Valuation allowance

 

7.1

 

10.3

 

0.5

 

Tax credits

 

(9.6)

 

(3.4)

 

 —

 

Impact of change to permanent reinvestment of foreign earnings

 

12.8

 

 —

 

 —

 

Impact of Tax Reform Act

 

(0.2)

 

 —

 

 —

 

Impact of ASU 2016-09

 

2.1

 

 —

 

 —

 

Adjustments to net tax accruals

 

 —

 

4.4

 

0.5

 

Other

 

(1.2)

 

(1.4)

 

(0.1)

 

 

 

28.3

%

21.0

%

(14.1)

%

 

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 February 3, 2018 and January 28, 2017 were as follows (in thousands):

 

 

 

 

 

 

 

 

 

    

February 3,

    

January 28,

 

 

 

2018

 

2017

 

Deferred tax assets:

 

 

 

 

 

 

 

Accrued rent and other expenses

 

$

31,574

 

$

53,851

 

Accrued compensation

 

 

16,475

 

 

28,530

 

Accrued inventory markdowns

 

 

3,616

 

 

8,330

 

Other

 

 

608

 

 

2,902

 

Tax loss and other carryforwards

 

 

28,605

 

 

23,361

 

Total deferred tax assets

 

 

80,878

 

 

116,974

 

Valuation allowance

 

 

(19,472)

 

 

(9,830)

 

Net deferred tax assets

 

 

61,406

 

 

107,144

 

Deferred tax liabilities:

 

 

 

 

 

 

 

Property and equipment

 

 

(46,089)

 

 

(79,217)

 

Capitalized inventory costs

 

 

(17,950)

 

 

(30,977)

 

Intangibles

 

 

(43,686)

 

 

(65,776)

 

Investment in foreign subsidiaries

 

 

(17,314)

 

 

 —

 

Other

 

 

(5,192)

 

 

(1,770)

 

Total deferred tax liabilities

 

 

(130,231)

 

 

(177,740)

 

Net deferred tax liabilities

 

$

(68,825)

 

$

(70,596)

 

 

Summary of activity related to uncertain tax positions

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

 

 

 

 

 

 

 

 

 

    

February 3,

    

January 28,

 

 

 

2018

 

2017

 

Gross uncertain tax positions, beginning balance

 

$

19,450

 

$

20,868

 

Increase in tax positions for prior years

 

 

156

 

 

2,343

 

Decrease in tax positions for prior years

 

 

(17,908)

 

 

(2,321)

 

Increase in tax positions due to business combinations

 

 

 —

 

 

 —

 

Increase in tax positions for current year

 

 

300

 

 

 —

 

Decrease in tax positions for current year

 

 

 —

 

 

 —

 

Settlements

 

 

(350)

 

 

 —

 

Lapse from statute of limitations

 

 

(494)

 

 

(1,440)

 

Gross uncertain tax positions, ending balance

 

$

1,154

 

$

19,450