Income Taxes (Tables)

12 Months Ended

Jan. 30, 2021

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):


	2020		2019		2018
Current:
Federal	$	185,197	$	87,263	$	94,729
State	42,537		24,139		22,585
Total current provision	227,734		111,402		117,314
Deferred:
Federal	(37,376)		(606)		(3,943)
State	(8,874)		(554)		(1,315)
Total deferred provision	(46,250)		(1,160)		(5,258)
Total provision	$	181,484	$	110,242	$	112,056

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:


	2020		2019		2018
Federal statutory rate	21.0	%	21.0	%	21.0	%
State tax, net of federal benefit	3.8	%	4.6	%	3.8	%

Other permanent items	0.7	%	1.4	%	1.1	%
Effective income tax rate	25.5	%	27.0	%	25.9	%

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):


	2020		2019
Operating lease liabilities	$	718,349	$	756,660
Inventory	29,744		43,499
Employee benefits and withholdings	56,245		38,554

Stock-based compensation	18,123		19,494
Gift cards	16,474		14,044
Deferred revenue currently taxable	1,948		2,450
Other accrued expenses not currently deductible for tax purposes	12,304		6,343
Net operating loss carryforward	527		1,207
Non income-based tax reserves	4,107		3,675
Capital loss carryforward	920		922
Uncertain income tax positions	497		905
Insurance	2,486		2,175
Convertible senior notes	1,382		—
Other	832		1,043
Total deferred tax assets	863,938		890,971
Operating lease assets	(553,997)		(597,553)
Property and equipment	(217,204)		(232,832)
Inventory valuation	(26,298)		(40,049)
Intangibles	(7,880)		(7,518)
Prepaid expenses	(4,338)		(3,928)
Other	(2,746)		(3,866)
Total deferred tax liabilities	(812,463)		(885,746)
Net deferred tax asset	$	51,475	$	5,225

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):


	2020		2019		2018
Beginning of fiscal year	$	2,786	$	4,318	$	8,047
Increases as a result of tax positions taken in a prior period	35		422		456
Decreases as a result of tax positions taken in a prior period	—		(1,532)		(411)
Decreases as a result of settlements during the current period	(1,380)		(422)		(2,977)
Reductions as a result of a lapse of statute of limitations during the current period	(383)		—		(797)
End of fiscal year	$	1,058	$	2,786	$	4,318