Income Taxes

12 Months Ended

Jan. 29, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Deferred income taxes reflect the net tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon generation of future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible.

As of January 29, 2022, there were no material valuation allowances that have been provided for net deferred tax assets as management believes that it is more likely than not that the Company will realize all material deferred tax assets before any expirations as of January 29, 2022.

The components of the income tax expense are as follows (in thousands): 

	Fiscal Year
	2021		2020		2019
Current:
Federal	$	68,224	$	2,276	$	25,069
State	12,424		7,235		6,602
	80,648		9,511		31,671
Deferred:
Federal	6,088		21,954		13,487
State	1,157		(1,759)		1,355
	7,245		20,195		14,842
Income tax expense	$	87,893	$	29,706	$	46,513

The reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows:

	Fiscal Year
	2021		2020		2019
Statutory federal tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	2.9		2.8		2.8
Other (1)	0.1		(4.4)		(2.8)
	24.0	%	19.4	%	21.0	%

(1)Other line includes excess tax benefits relating to share-based payment accounting.

 The effective tax rate for fiscal 2021 compared to fiscal 2020 was primarily driven by discrete items, which includes the impact of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting" with respect to the requirements to recognize excess income tax benefits or deficiencies as income tax benefit or expense in the consolidated statements of operations rather than as additional paid-in capital in the consolidated balance sheets and the impact of the CARES Act in fiscal 2020. The effective tax rate for fiscal 2020 compared to fiscal 2019 was primarily driven by discrete items, which includes the impact of the CARES Act, partially offset by a reduction of the benefit of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting."

The tax effects of temporary differences that give rise to deferred tax assets and liabilities are (in thousands):

	January 29, 2022		January 30, 2021
Deferred tax assets:
Net operating loss carryforwards	$	—	$	1,139
Inventories	18,561		10,626
Deferred revenue	1,821		851
Accrued bonus	8,224		1,128
Deferred rent	—		—
Operating lease liabilities	335,960		287,351
Other	7,947		4,662
Deferred tax assets	372,513		305,757
Valuation allowance	(1,383)		—
Deferred tax assets, net of valuation allowance	371,130		305,757
Deferred tax liabilities:
Property and equipment	(107,953)		(81,129)
Operating lease assets	(297,786)		(252,541)
Other	(1,547)		(998)
Deferred tax liabilities	(407,286)		(334,668)
	$	(36,156)	$	(28,911)

The Company had no material accrual for uncertain tax positions or interest or penalties related to income taxes on the Company’s balance sheets as of January 29, 2022 and January 30, 2021, and has not recognized any material uncertain tax positions or interest and/or penalties related to income taxes in the consolidated statements of operations for fiscal 2021, fiscal 2020, or fiscal 2019.

The Company files a federal income tax return as well as state tax returns. The Company’s U.S. federal income tax returns for the fiscal years ended February 2, 2019 and thereafter remain subject to examination by the U.S. Internal Revenue Service. State returns are filed in various state jurisdictions, as appropriate, with varying statutes of limitation and remain subject to examination for varying periods up to three years to four years depending on the state.