Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.20.1
INCOME TAXES (Tables)
12 Months Ended
Feb. 01, 2020
INCOME TAXES  
Earnings (loss) before income taxes

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

Fiscal Year

 

    

2019

    

2018

    

2017

 

United States

$

(17,678)

$

73,775

$

90,629

Foreign

 

44,690

 

42,527

 

31,005

Total

$

27,012

$

116,302

$

121,634

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

Fiscal Year

 

    

2019

    

2018

    

2017

 

Current tax expense:

    

    

    

Federal

$

4,231

$

7,295

$

25,578

State

 

2,196

 

4,853

 

5,055

Foreign

 

4,726

 

13,764

 

10,049

Deferred tax (benefit) expense:

Federal and state

 

(8,919)

 

(2,472)

 

(21,607)

Foreign

 

(589)

 

(5,734)

 

15,542

Total

$

1,645

$

17,706

$

34,617

Provision (benefit) for income taxes

Fiscal Year

 

    

2019

    

2018

    

2017

 

United States

$

(17,678)

$

73,775

$

90,629

Foreign

 

44,690

 

42,527

 

31,005

Total

$

27,012

$

116,302

$

121,634

Effective tax rate reconciliation

Fiscal Year

 

    

2019

    

2018

    

2017

 

Federal statutory rate

21.0

%

21.0

%

33.7

%

State income taxes, net of federal benefit

 

(1.5)

4.1

1.4

Uncertain tax positions

 

0.1

(0.5)

(15.1)

Foreign tax rate differential

 

(21.7)

4.3

(1.9)

Amortizable tax goodwill

 

(4.3)

(1.2)

Foreign income taxed in the U.S.

15.8

1.8

Return to provision

(6.5)

(4.2)

(2.5)

Valuation allowance

 

34.5

1.0

7.9

Tax credits

 

(45.6)

(6.1)

(9.9)

Impact of change to permanent reinvestment of foreign earnings

2.1

4.6

14.2

Impact of Tax Reform Act

(5.2)

(0.2)

Inventory donations

(7.1)

(1.7)

(1.3)

Stock compensation

9.2

2.3

Impact of ASC 810

3.7

0.6

Meals and entertainment

 

2.4

0.5

0.4

Other

 

(0.3)

(0.7)

0.7

 

6.1

%

15.2

%

28.5

%

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 1, 2020 and February 2, 2019 were as follows (in thousands):

    

February 1,

    

February 2,

 

2020

2019

 

Deferred tax assets:

Accrued rent and other expenses

$

20,439

$

27,098

Accrued compensation

 

10,408

 

17,667

Accrued inventory reserves

 

8,159

 

5,654

Interest rate swap

8,649

1,558

Operating lease liabilities

 

218,257

 

9,249

Other

 

98

 

6,617

Tax attributes

 

56,955

 

32,030

Total deferred tax assets

 

322,965

 

99,873

Valuation allowance

 

(30,123)

 

(20,686)

Net deferred tax assets

 

292,842

 

79,187

Deferred tax liabilities:

Property and equipment

 

(40,656)

 

(47,287)

Capitalized inventory costs

 

(12,050)

 

(12,538)

Intangibles

 

(40,558)

 

(41,176)

Investment in foreign subsidiaries

(11,239)

(12,321)

Operating lease right-of-use assets

(206,023)

Other

(4,356)

(8,863)

Total deferred tax liabilities

 

(314,882)

 

(122,185)

Net deferred tax liabilities

$

(22,040)

$

(42,998)

Summary of activity related to uncertain tax positions

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

    

February 1,

    

February 2,

 

2020

2019

 

Gross uncertain tax positions, beginning balance

$

619

$

1,154

Increase in tax positions for prior years

 

 

Decrease in tax positions for prior years

 

 

(535)

Increase in tax positions due to business combinations

Increase in tax positions for current year

 

 

Decrease in tax positions for current year

 

 

Settlements

 

 

Lapse from statute of limitations

 

 

Gross uncertain tax positions, ending balance

$

619

$

619