Income Taxes (Tables)

12 Months Ended

Jan. 28, 2018

Company's Current and Deferred Taxes from Federal, State and Foreign Sources

The Company's domestic and foreign income before income tax expense and current and deferred income taxes from federal, state, and foreign sources are as follows:



	Fiscal Year Ended
	January 28, 2018			January 29, 2017			January 31, 2016
	(In thousands)
Income (loss) before income tax expense
Domestic	$	123,942		$	(30,955	)	$	84,286
Foreign	336,056			453,684			284,209
	$	459,998		$	422,729		$	368,495
Current income tax expense (recovery)
Federal	$	79,724		$	36,245		$	(18,662	)
State	11,573			6,690			3,363
Foreign	109,322			94,581			110,372
	$	200,619		$	137,516		$	95,073
Deferred income tax expense (recovery)
Federal	$	14,443		$	(11,065	)	$	8,719
State	3,988			(1,840		)	425
Foreign	(17,714		)	(5,263		)	(1,769		)
	717			(18,168		)	7,375
Income tax expense	$	201,336		$	119,348		$	102,448

Schedule of Effective Income Tax Rate Reconciliation

The Company's income tax expense for fiscal 2017, fiscal 2016 and fiscal 2015 include certain discrete tax amounts, as follows:



	Fiscal Year Ended
	January 28, 2018			January 29, 2017			January 31, 2016
	(In thousands)
U.S. tax reform:
One-time transition tax	$	58,896		$	—		$	—
Deferred income tax effects	398			—			—
Tax recovery on ivivva restructuring costs	(12,741		)	—			—
Transfer pricing and repatriation taxes:
Transfer pricing adjustments, net	—			(10,706		)	(4,826		)
Tax on repatriation of foreign earnings	—			(38		)	7,838
Tax adjustment on foreign tax credit calculations	—			—			(10,455		)
Total tax adjustments	$	46,553		$	(10,744	)	$	(7,443	)

A summary reconciliation of the effective tax rate is as follows:



	Fiscal Year Ended
	January 28, 2018		January 29, 2017		January 31, 2016
	(Percentages)
Federal income tax at statutory rate	33.9	%	35.0	%	35.0	%
Foreign tax rate differentials	(5.9	)	(7.0	)	(6.9	)
U.S. state taxes	1.5		1.6		0.8
Non-deductible compensation expense	0.9		0.6		0.6
Permanent and other	0.5		0.5		—
U.S. tax reform	12.9		—		—
Transfer pricing adjustments, net	—		(2.5	)	(1.0	)
Tax on repatriation of foreign earnings	—		—		2.1
Tax adjustment on foreign tax credit calculations	—		—		(2.8	)
Effective tax rate	43.8	%	28.2	%	27.8	%

Tax Effects of Temporary Differences of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities as of January 28, 2018 and January 29, 2017 are presented below:



	January 28, 2018			January 29, 2017
	(In thousands)
Deferred income tax assets:
Net operating loss carryforwards	$	37,436		$	16,280
Inventories	4,691			4,811
Deferred lease liabilities	7,956			9,373
Tenant inducements	7,386			8,453
Stock-based compensation	740			2,354
Foreign tax credits	877			6,818
Other	5,309			2,920
Deferred income tax assets	64,395			51,009
Valuation allowance	(1,843		)	(91		)
Deferred income tax assets, net of valuation allowance	$	62,552		$	50,918
Deferred income tax liabilities:
Property and equipment, net	$	(30,429	)	$	(31,153	)
Other	(968		)	(771		)
Deferred income tax liabilities	(31,397		)	(31,924		)
Net deferred income tax assets	$	31,155		$	18,994

Balance sheet classification:
Deferred income tax assets	$	32,491		$	26,256
Deferred income tax liabilities	(1,336		)	(7,262		)
Net deferred income tax assets	$	31,155		$	18,994