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  
Earnings (loss) before income taxes

The following table provides details on our earnings (loss) before income taxes (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

    

2018

    

2017

    

2016

 

United States

 

$

72,397

 

$

90,399

 

$

(9,986)

 

Foreign

 

 

30,279

 

 

44,555

 

 

41,567

 

Total

 

$

102,676

 

$

134,954

 

$

31,581

 

 

Provision (benefit) for income taxes

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

    

2018

    

2017

    

2016

 

Current tax expense:

 

 

    

 

 

    

 

 

    

 

Federal

 

$

6,757

 

$

25,701

 

$

18,545

 

State

 

 

4,802

 

 

5,067

 

 

912

 

Foreign

 

 

15,886

 

 

13,246

 

 

11,156

 

Deferred tax (benefit) expense:

 

 

                      

 

 

 

 

 

 

 

Federal and state

 

 

(2,929)

 

 

(21,187)

 

 

(23,135)

 

Foreign

 

 

(5,080)

 

 

15,424

 

 

(853)

 

Total

 

$

19,436

 

$

38,251

 

$

6,625

 

 

Effective tax rate reconciliation

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

    

2018

    

2017

    

2016

 

Federal statutory rate

 

21.0

%

33.7

%

35.0

%

State income taxes, net of federal benefit

 

4.6

 

1.2

 

(5.6)

 

Uncertain tax positions

 

(0.5)

 

(13.6)

 

1.0

 

Foreign tax rate differential

 

4.8

 

(2.9)

 

(14.3)

 

Amortizable tax goodwill

 

(0.4)

 

(1.1)

 

(5.0)

 

GILTI

 

2.0

 

 —

 

 —

 

Valuation allowance

 

1.2

 

7.1

 

10.3

 

Tax credits

 

(6.8)

 

(9.6)

 

(3.4)

 

Impact of change to permanent reinvestment of foreign earnings

 

1.2

 

12.8

 

 —

 

Impact of Tax Reform Act

 

(5.9)

 

(0.2)

 

 —

 

Inventory donations

 

(1.9)

 

(1.2)

 

(2.9)

 

Impact of ASU 2016-09

 

 —

 

2.1

 

 —

 

Adjustments to net tax accruals

 

 —

 

 —

 

4.4

 

Other

 

(0.4)

 

 —

 

1.5

 

 

 

18.9

%

28.3

%

21.0

%

 

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 2, 2019 and February 3, 2018 were as follows (in thousands):

 

 

 

 

 

 

 

 

 

    

February 2,

    

February 3,

 

 

 

2019

 

2018

 

Deferred tax assets:

 

 

 

 

 

 

 

Accrued rent and other expenses

 

$

36,347

 

$

31,574

 

Accrued compensation

 

 

17,667

 

 

16,475

 

Accrued inventory markdowns

 

 

5,654

 

 

3,616

 

Other

 

 

8,175

 

 

608

 

Tax loss and other carryforwards

 

 

32,030

 

 

28,605

 

Total deferred tax assets

 

 

99,873

 

 

80,878

 

Valuation allowance

 

 

(20,686)

 

 

(19,472)

 

Net deferred tax assets

 

 

79,187

 

 

61,406

 

Deferred tax liabilities:

 

 

 

 

 

 

 

Property and equipment

 

 

(47,287)

 

 

(46,089)

 

Capitalized inventory costs

 

 

(12,538)

 

 

(17,950)

 

Intangibles

 

 

(41,176)

 

 

(43,686)

 

Investment in foreign subsidiaries

 

 

(12,321)

 

 

(17,314)

 

Other

 

 

(8,863)

 

 

(5,192)

 

Total deferred tax liabilities

 

 

(122,185)

 

 

(130,231)

 

Net deferred tax liabilities

 

$

(42,998)

 

$

(68,825)

 

 

Summary of activity related to uncertain tax positions

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

 

 

 

 

 

 

 

 

 

    

February 2,

    

February 3,

 

 

 

2019

 

2018

 

Gross uncertain tax positions, beginning balance

 

$

1,154

 

$

19,450

 

Increase in tax positions for prior years

 

 

 —

 

 

156

 

Decrease in tax positions for prior years

 

 

(535)

 

 

(17,908)

 

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)

 

Gross uncertain tax positions, ending balance

 

$

619

 

$

1,154