Income Taxes (Tables)

12 Months Ended

Feb. 01, 2020

Income Taxes

Summary of Income Before Income Taxes

The following is a summary of the income before income taxes (in thousands):

	Year Ended
	February 1,		February 2,		February 3,
	2020		2019		2018
Domestic	$	267,538	$	157,827	$	21,241
Foreign		1,644		3,137		1,292
Total income before income taxes	$	269,182	$	160,964	$	22,533

Summary of Income Tax Expense (Benefit)

The following is a summary of the income tax expense (benefit) (in thousands):

	Year Ended
	February 1,		February 2,		February 3,
	2020		2019		2018
Current
Federal	$	45,985	$	24,012	$	18,593
State		10,806		6,275		2,761
Foreign		403		1,270		933
Total current tax expense		57,194		31,557		22,287
Deferred
Federal		(7,173)		(4,428)		3,692
State		(1,477)		(2,049)		(844)
Foreign		263		153		(3)
Total deferred tax expense (benefit)		(8,387)		(6,324)		2,845
Total income tax expense	$	48,807	$	25,233	$	25,132

Schedule of Reconciliation of Federal Statutory Tax Rate to Company's Effective Tax Rate

	Year Ended
	February 1,		February 2,		February 3,
	2020		2019		2018
Provision at federal statutory tax rate	21.0	%	21.0	%	33.7	%
State income taxes—net of federal tax impact	2.5		1.7		4.7
Tax rate adjustments	0.2		0.1		(0.8)
Meals and entertainment	0.1		0.3		1.9
Aircraft expenses	0.1		0.1		4.8
Stock compensation—excess benefits	(6.6)		(9.9)		(27.9)
Goodwill impairment	—		1.8		23.9
Non-deductible stock-based compensation	—		—		35.7
Federal statutory tax rate change	—		—		27.4
Foreign income inclusion—transition tax	—		—		4.4
Net adjustments to tax accruals and other	—		—		1.9
Valuation allowance	—		0.3		1.5
Donation of appreciated property	—		—		(0.2)
Foreign income	—		—		(1.3)
Other permanent items	0.8		0.3		1.8
Effective tax rate	18.1	%	15.7	%	111.5	%

Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

	February 1,		February 2,
	2020		2019
Non-current deferred tax assets (liabilities)
Lease liabilities	$	249,243	$	253,826
Stock-based compensation		22,400		22,721
Accrued expenses		21,362		16,657
Merchandise inventories		8,028		14,735
Deferred lease credits		6,395		1,188
Deferred revenue		2,235		—
Net operating loss carryforwards		1,763		1,654
Convertible senior notes		717		—
Other		1,846		2,591
Non-current deferred tax assets		313,989		313,372
Valuation allowance		(1,007)		(1,623)
Net non-current deferred tax assets	$	312,982	$	311,749
Property and equipment	$	(137,448)	$	(137,240)
Lease right-of-use assets		(110,075)		(118,549)
Tradename, trademarks and intangibles		(13,026)		(12,386)
Prepaid expense and other		(4,882)		(4,209)
State benefit		(2,546)		(2,556)
Convertible senior notes		—		(1,054)
Deferred revenue		—		(152)
Non-current deferred tax liabilities		(267,977)		(276,146)
Total net non-current deferred tax assets	$	45,005	$	35,603

Schedule of Reconciliation of Valuation Allowance

A reconciliation of the valuation allowance is as follows (in thousands):

	Year Ended
	February 1,		February 2,
	2020		2019
Balance at beginning of fiscal year	$	1,623	$	1,190
Net changes in deferred tax assets and liabilities		(616)		433
Balance at end of fiscal year	$	1,007	$	1,623

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the exposures related to unrecognized tax benefits is as follows (in thousands):

	Year Ended
	February 1,		February 2,		February 3,
	2020		2019		2018
Balance at beginning of fiscal year	$	8,459	$	8,152	$	2,190
Gross increases (decreases)—prior period tax positions		(2)		239		5,491
Gross increases (decreases)—current period tax positions		438		375		471
Reductions based on the lapse of the applicable statutes of limitations		(381)		(307)		—
Balance at end of fiscal year	$	8,514	$	8,459	$	8,152