INCOME TAXES (Tables)

12 Months Ended

Feb. 01, 2025

Schedule of Income before Income Tax, Domestic and Foreign

Components of Income Taxes

Income before income taxes consisted of:


(in thousands)	Fiscal 2024		Fiscal 2023		Fiscal 2022
Domestic (1)	$	757,835	$	526,967	$	152,608
Foreign	10,842		(42,668)		(85,592)
Income before income taxes	$	768,677	$	484,299	$	67,016

(1) Includes intercompany charges to foreign affiliates for management fees, cost-sharing, royalties and interest and excludes a portion of foreign income that is currently includable on the U.S. federal income tax return.

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense consisted of:


(in thousands)	Fiscal 2024		Fiscal 2023		Fiscal 2022
Current:
Federal	$	150,061	$	113,765	$	25,577
State	40,942		32,299		10,371
Foreign	15,936		7,565		9,183
Total current	$	206,939	$	153,629	$	45,131

Deferred:
Federal	$	(11,664)	$	(9,160)	$	4,586
State	(834)		(1,196)		122
Foreign	220		5,613		6,792
Total deferred	(12,278)		(4,743)		11,500
Income tax expense	$	194,661	$	148,886	$	56,631

Schedule of Effective Income Tax Rate Reconciliation

Reconciliation between the statutory federal income tax rate and the effective tax rate is as follows:


	Fiscal 2024		Fiscal 2023		Fiscal 2022
U.S. Federal income tax rate	21.0	%	21.0	%	21.0	%
State income tax, net of U.S. federal income tax effect	4.5		4.9		12.4
Foreign taxation of non-U.S. operations	1.4		1.4		16.2
Internal Revenue Code Section 162(m)	0.7		1.4		4.6
Net change in valuation allowances	0.6		3.4		30.7
Additional U.S. taxation of non-U.S. operations	0.1		0.1		1.3
Credit for increasing research activities	(0.1)		(0.5)		(2.5)
Audit and other adjustments to prior years' accruals, net	(0.2)		(0.2)		5.9
Net income attributable to noncontrolling interests	(0.2)		(0.3)		(2.4)
Tax benefit recognized on share-based compensation expense (2)	(2.5)		(0.5)		(2.6)
Other items, net	—		—		(0.1)








Total	25.3	%	30.7	%	84.5	%

(1)U.S. branch operations in Puerto Rico were subject to tax at the full U.S. tax rates. As a result, income from these operations do not create reconciling items.

(2)Refer to Note 13, “SHARE-BASED COMPENSATION,” for details on discrete income tax benefits and charges related to share-based compensation awards during Fiscal 2024, Fiscal 2023, and Fiscal 2022.

Schedule of Deferred Tax Assets and Liabilities

The effect of temporary differences that gives rise to deferred income tax assets (liabilities) were as follows:


(in thousands)	February 1, 2025		February 3, 2024
Deferred income tax assets:
Operating lease liabilities	$	241,873	$	211,863
Intangibles, foreign step-up in basis	58,755		62,464
Net operating losses (NOL), tax credit and other carryforwards	91,995		84,872
Accrued expenses and reserves	35,402		35,866

Deferred compensation	18,275		15,717
Inventory	9,996		5,518
Property and equipment and intangibles	1,129		—
Rent	509		1,874


Other	4,971		1,683
Valuation allowances	(151,810)		(146,973)
Total deferred income tax assets	$	311,095	$	272,884

Deferred income tax liabilities:
Operating lease right-of-use assets	$	(223,384)	$	(192,020)
Prepaid expenses	(2,809)		(1,832)
Store supplies	(1,835)		(2,100)
Undistributed profits of non-U.S. subsidiaries	(1,400)		(1,271)



U.S. offset to foreign deferred tax assets, excluding intangibles, foreign step-up in basis (1)	(125)		(187)

Property and equipment and intangibles	—		(7,472)
Other	(2,215)		(781)
Total deferred income tax liabilities	$	(231,768)	$	(205,663)
Net deferred income tax assets (1)	$	79,327	$	67,221

Schedule of Unrecognized Tax Benefits Roll Forward

The amount of uncertain tax positions as of February 1, 2025, February 3, 2024 and January 28, 2023, which would impact the Company’s effective tax rate if recognized and a reconciliation of the beginning and ending amounts of uncertain tax positions, excluding accrued interest and penalties, are as follows:


(in thousands)	Fiscal 2024		Fiscal 2023		Fiscal 2022
Uncertain tax positions, beginning of the year	$	2,751	$	2,293	$	1,114
Gross addition for tax positions of the current year	611		572		339
Gross addition for tax positions of prior years	1,725		75		907
Reductions of tax positions of prior years for:
Lapses of applicable statutes of limitations	(155)		(70)		(66)
Settlements during the period	(350)		(119)		(1)

Uncertain tax positions, end of year	$	4,582	$	2,751	$	2,293