Income Taxes

12 Months Ended

Jan. 29, 2022

Income Tax Disclosure [Abstract]

Income Taxes

15. Income Taxes

The components of earnings before income taxes are (in thousands):

	Fiscal Year Ended
	January 29, 2022			January 30, 2021			February 1, 2020
United States	$	166,999		$	108,412		$	93,737
Foreign		(6,488	)		(5,955	)		(2,744	)
Total earnings before income taxes	$	160,511		$	102,457		$	90,993

The components of the provision for income taxes are (in thousands):

	Fiscal Year Ended
	January 29, 2022			January 30, 2021			February 1, 2020
Current:
Federal	$	31,231		$	22,576		$	17,634
State and local		6,521			5,946			4,376
Foreign		1,273			1,598			1,220
Total current		39,025			30,120			23,230
Deferred:
Federal		1,328			(1,198	)		241
State and local		873			(808	)		277
Foreign		(4	)		(1,884	)		364
Total deferred		2,197			(3,890	)		882
Provision for income taxes	$	41,222		$	26,230		$	24,112

The reconciliation of the income tax provision at the U.S. federal statutory rate to our effective income tax rate is as follows:

	Fiscal Year Ended
	January 29, 2022			January 30, 2021			February 1, 2020
U.S. federal statutory tax rate		21.0	%		21.0	%		21.0	%
State and local income taxes, net of federal effect		3.9			3.8			4.0
Change in valuation allowance		1.4			1.1			2.1
Foreign earnings, net		(0.2	)		(0.5	)		(0.2	)
Stock-based compensation		(1.1	)		(0.2	)		(0.1	)
Other		0.7			0.4			(0.3	)
Effective tax rate		25.7	%		25.6	%		26.5	%

The components of deferred income taxes are (in thousands):

	January 29, 2022			January 30, 2021
Deferred tax assets:
Lease Liability	$	66,315		$	80,744
Net operating losses		19,093			17,889
Employee benefits, including stock-based compensation		2,046			4,290
Accrued liabilities		2,091			2,014
Inventory		964			1,367
Other		1,468			(310	)
Total deferred tax assets		91,977			105,994
Deferred tax liabilities:
Property and equipment		(5,429	)		(7,385	)
Right of Use Asset		(55,300	)		(67,919	)
Goodwill and other intangibles		(10,897	)		(10,850	)
Other		(1,660	)		(1,203	)
Total deferred tax liabilities		(73,286	)		(87,357	)
Net valuation allowances		(10,032	)		(8,710	)
Net deferred tax assets	$	8,659		$	9,927

At January 29, 2022 and January 30, 2021, we had foreign net operating loss carryovers that could be utilized to reduce future years’ tax liabilities of $75.7 million and $72.0 million, respectively. The tax-effected foreign net operating loss carryovers were $19.1 million and $17.9 million at January 29, 2022 and January 30, 2021, respectively.  The net operating loss carryovers have an indefinite carryforward period and currently will not expire.

At January 29, 2022 and January 30, 2021, we had valuation allowances on our deferred tax assets of $10.0 million and $8.7 million, respectively, primarily due to the uncertainty of the realization of certain deferred tax assets related to foreign net operating loss carryovers.

We file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions.  Our U.S. federal income tax returns are no longer subject to examination for years before fiscal year 2018 and with few exceptions, we are no longer subject to U.S. state examinations for years before fiscal 2016. We are no longer subject to examination for all foreign income tax returns before fiscal 2015.