INCOME TAXES (Tables)

12 Months Ended

Jan. 28, 2023

Schedule of Components of Income Tax Expense (Benefit)


($ thousands)	2022		2021		2020
Federal
Current	$	11,506	$	36,388	$	(37,140)
Deferred		6,975		(227)		(45,145)
Total federal income tax provision (benefit)		18,481		36,161		(82,285)
State
Current		6,660		4,012		1,532
Deferred		3,421		6,531		(9,038)
Total state income tax provision (benefit)		10,081		10,543		(7,506)
International
Current		4,759		4,615		2,288
Deferred		18		(238)		9,386
Total international income tax provision		4,777		4,377		11,674
Total income tax provision (benefit)	$	33,339	$	51,081	$	(78,117)

Schedule of Effective Income Tax Rate Reconciliation


($ thousands)	2022		2021		2020
Income taxes at statutory rate	$	44,737	$	39,741	$	(108,593)
State income taxes, net of federal tax benefit		8,981		8,361		(17,433)
International earnings taxed at differing rates from U.S. statutory		(1,974)		(3,588)		(5,210)
Share-based compensation		(602)		94		1,094
Provision for valuation allowance, net of utilization		(20,743)		8,978		41,019
Non-deductibility of 162(m) limitations		3,363		3,377		1,005
GILTI, BEAT and FDII provisions		422		346		—
Non-deductibility of goodwill impairment		—		—		20,179
Impairment of international trade name taxed at higher rate		—		—		(1,440)
CARES Act NOL, net carryback benefit ⁽¹⁾		—		365		(8,203)
International entity restructuring ⁽²⁾		—		(6,697)		—
Other ⁽³⁾		(845)		104		(535)
Total income tax provision (benefit)	$	33,339	$	51,081	$	(78,117)

(1)

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law during 2020. Among the Internal Revenue Code provisions modified by the CARES Act was a five-year carryback period for net operating losses incurred in the 2018, 2019 and 2020 tax years; temporary removal of the 80% limitation on net operating loss usage, reinstated for tax years after 2020; a temporary increase in the interest expense limitation and acceleration of refundable AMT credit. The five-year carryback presented an opportunity to carry back net operating losses from years with a statutory 21% federal tax rate to years when the rate was 35%.

(2)	Reflects the deferred tax impacts of the liquidation of certain international subsidiaries, with related impacts presented in the provision for valuation allowance, net of utilization line in the table above.

(3)	The other category of income tax provision (benefit) principally represents the impact of expenses that are not deductible or partially deductible for federal income tax purposes and the impact of any return-to-provision adjustments.

Schedule of Deferred Tax Assets and Liabilities


($ thousands)	January 28, 2023		January 29, 2022
Deferred Tax Assets
Lease obligations	$	147,910	$	149,123
Goodwill		38,407		43,510
Net operating loss carryforward/carryback		13,303		14,441
Accrued expenses		19,478		25,314
Employee benefits, compensation and insurance		17,350		15,751
Accounts receivable		6,304		5,735
Inventory capitalization and inventory reserves		6,642		6,013
Impairment of investment in nonconsolidated affiliate		1,470		1,470
Postretirement and postemployment benefit plans		228		259
Other		1,261		1,261
Total deferred tax assets, before valuation allowance		252,353		262,877
Valuation allowance		(39,540)		(58,959)
Total deferred tax assets, net of valuation allowance	$	212,813	$	203,918

Deferred Tax Liabilities
Lease right-of-use assets	$	(136,618)	$	(134,888)
Intangible assets		(12,054)		(10,624)
LIFO inventory valuation		(46,551)		(37,675)
Retirement plans		(19,381)		(23,718)
Capitalized software		(3,309)		(5,042)
Depreciation		(10,823)		(3,818)
Other		(3,078)		(2,884)
Total deferred tax liabilities		(231,814)		(218,649)
Net deferred tax liability	$	(19,001)	$	(14,731)