Income Taxes (Tables)

12 Months Ended

Feb. 02, 2025

Summary of 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:


	2024		2023		2022
	(In thousands)
Income (loss) before income tax expense
Domestic	$	479,956	$	458,041	$	(98,764)
Foreign	2,096,121		1,717,694		1,431,335
	$	2,576,077	$	2,175,735	$	1,332,571
Current income tax expense
Federal	$	86,851	$	140,726	$	34,752
State	31,983		42,476		33,369
Foreign	584,248		469,090		400,250
	$	703,082	$	652,292	$	468,371
Deferred income tax expense (recovery)
Federal	$	61,386	$	(14,741)	$	8,932
State	14,047		(3,097)		2,363
Foreign	(17,054)		(8,909)		(1,895)
	$	58,379	$	(26,747)	$	9,400
Income tax expense	$	761,461	$	625,545	$	477,771

Schedule of Effective Income Tax Rate Reconciliation

The Company's income tax expense for 2023 and 2022 include certain discrete tax amounts, as follows:


	2024		2023		2022
	(In thousands)
Impairment of goodwill and other assets, restructuring costs	$	—	$	(26,085)	$	(28,171)
Gain on disposal of assets	—		—		1,661

Total discrete income tax expense (recovery)	$	—	$	(26,085)	$	(26,510)

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


	2024		2023		2022
	(Percentage)
Federal income tax at statutory rate	21.0	%	21.0	%	21.0	%
Foreign tax rate differentials	4.3		4.1		6.8
U.S. state taxes	0.9		1.0		(0.4)
Non-deductible compensation expense	0.5		0.6		0.7
Excess tax benefits from stock-based compensation	(0.1)		(0.4)		(0.5)
Tax on unremitted foreign earnings	2.6		2.6		1.4
Impairment of goodwill and other assets, gain on disposal of assets	—		—		7.8
Permanent and other	0.4		(0.1)		(0.9)
Effective tax rate	29.6	%	28.8	%	35.9	%

Summary of 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 February 2, 2025 and January 28, 2024 are presented below:


	February 2, 2025		January 28, 2024
	(In thousands)
Deferred income tax assets:
Net operating loss carryforwards	$	2,174	$	2,385
Inventories	33,801		43,157
Accrued bonuses	9,376		19,075
Unredeemed gift card liability	18,956		15,580
Non-current lease liabilities	308,796		286,528
Research and experimental expenditures	71,579		48,922
Stock-based compensation	20,883		20,057
Other	22,415		16,802
Deferred income tax assets	487,980		452,506
Valuation allowance	(7,902)		(2,334)
Deferred income tax assets, net of valuation allowance	$	480,078	$	450,172
Deferred income tax liabilities:
Property and equipment, net	$	(180,664)	$	(162,312)

Right-of-use lease assets	(269,089)		(265,157)
Unremitted foreign earnings	(106,986)		(41,198)
Other	(4,442)		(1,851)
Deferred income tax liabilities	(561,181)		(470,518)
Net deferred income tax liabilities	$	(81,103)	$	(20,346)

Balance sheet classification:
Deferred income tax assets	$	17,085	$	9,176
Deferred income tax liabilities	(98,188)		(29,522)
Net deferred income tax liabilities	$	(81,103)	$	(20,346)