Income Taxes (Tables)

12 Months Ended

Feb. 01, 2020

Schedule of components of the provision for income taxes

The components of the provision for income taxes are as follows for the fiscal years presented (in thousands):


	2019		2018		2017
Current:
Federal	$	87,263	$	94,729	$	114,443
State	24,139		22,585		20,996
Total current provision	111,402		117,314		135,439
Deferred:
Federal	(606)		(3,943)		38,805
State	(554)		(1,315)		3,648
Total deferred provision	(1,160)		(5,258)		42,453
Total provision	$	110,242	$	112,056	$	177,892

Reconciliation of the federal statutory income tax rate to the effective income tax rate

The Company’s effective income tax rate differs from the federal statutory rate as follows for the fiscal years presented:


	2019		2018		2017
Federal statutory rate	21.0	%	21.0	%	33.7	%
State tax, net of federal benefit	4.6	%	3.8	%	3.3	%
Valuation allowance	—	%	—	%	(0.8)	%
Other permanent items	1.4	%	1.1	%	(0.7)	%
Effective income tax rate	27.0	%	25.9	%	35.5	%

Schedule of the components of deferred tax assets (liabilities)

Components of deferred tax assets (liabilities) consist of the following as of the end of the fiscal years presented (in thousands):


	2019		2018
Operating lease liabilities	$	756,660	$	—
Inventory	43,499		35,487
Employee benefits	38,554		33,591
Deferred rent	—		27,648
Stock-based compensation	19,494		19,005
Gift cards	14,044		14,458
Deferred revenue currently taxable	2,450		7,263
Store closing expense	119		1,178
Other accrued expenses not currently deductible for tax purposes	6,343		5,895
Net operating loss carryforward	1,207		2,056
Non income-based tax reserves	3,675		5,464
Capital loss carryforward	922		922
Uncertain income tax positions	905		1,218
Insurance	2,175		2,298
Other	924		120
Total deferred tax assets	890,971		156,603
Operating lease assets	(597,553)		—
Property and equipment	(232,832)		(115,726)
Inventory valuation	(40,049)		(26,871)
Intangibles	(7,518)		(5,068)
Prepaid expenses	(3,928)		(3,723)
Other	(3,866)		(3,748)
Total deferred tax liabilities	(885,746)		(155,136)
Net deferred tax asset	$	5,225	$	1,467

Schedule of reconciliation of the Company's total unrecognized tax benefits balances, excluding interest and penalties

The following table provides a reconciliation of the Company’s total balance of unrecognized tax benefits, excluding interest and penalties (in thousands):


	2019		2018		2017
Beginning of fiscal year	$	4,318	$	8,047	$	8,293
Increases as a result of tax positions taken in a prior period	422		456		124
Decreases as a result of tax positions taken in a prior period	(1,532)		(411)		(142)
Decreases as a result of settlements during the current period	(422)		(2,977)		(228)
Reductions as a result of a lapse of statute of limitations during the current period	—		(797)		—
End of fiscal year	$	2,786	$	4,318	$	8,047