Income Taxes (Tables)

12 Months Ended

Jan. 29, 2022

Income Taxes

Summary of Income Before Income Taxes

The following is a summary of our income before income taxes, inclusive of our share of equity method investments losses (in thousands):

	YEAR ENDED
	JANUARY 29,		JANUARY 30,		FEBRUARY 1,
	2022		2021		2020
Domestic	$	821,001	$	378,267	$	267,538
Foreign		1,103		(1,854)		1,644
Total	$	822,104	$	376,413	$	269,182

Summary of Income Tax Expense (Benefit)

	YEAR ENDED
	JANUARY 29,		JANUARY 30,		FEBRUARY 1,
	2022		2021		2020
Domestic	$	821,001	$	378,267	$	267,538
Foreign		1,103		(1,854)		1,644
Total	$	822,104	$	376,413	$	269,182

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

	YEAR ENDED
	JANUARY 29,		JANUARY 30,		FEBRUARY 1,
	2022		2021		2020
Provision at federal statutory tax rate	21.0	%	21.0	%	21.0	%
State income taxes—net of federal tax impact	2.4		4.2		2.5
Non-deductible stock-based compensation	0.6		6.5		—
Tax rate adjustments and other	0.2		0.3		0.4
Stock compensation—excess benefits	(8.0)		(4.9)		(6.6)
Valuation allowance	—		0.1		—
Other permanent items	—		0.6		0.8
Effective tax rate	16.2	%	27.8	%	18.1	%

Components of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities are as follows (in thousands):

	JANUARY 29,		JANUARY 30,
	2022		2021
Non-current deferred tax assets (liabilities)
Lease liabilities	$	317,971	$	275,517
Stock-based compensation		26,205		24,922
Accrued expenses		19,572		21,308
Merchandise inventories		10,318		9,097
Deferred lease credits		4,854		4,917
Net operating loss carryforwards		2,884		1,988
Deferred revenue		1,739		635
Convertible senior notes		779		914
Other		1,152		2,269
Non-current deferred tax assets—net		385,474		341,567
Valuation allowance		(1,959)		(2,049)
Non-current deferred tax assets	$	383,515	$	339,518
Property and equipment	$	(154,821)	$	(147,143)
Lease right-of-use assets		(146,368)		(122,306)
Tradename, trademarks and intangibles		(12,603)		(10,349)
Prepaid expense and other		(11,077)		(8,010)
State benefit		(1,803)		(1,786)
Non-current deferred tax liabilities		(326,672)		(289,594)
Total net non-current deferred tax assets	$	56,843	$	49,924

Schedule of Reconciliation of Valuation Allowance

	JANUARY 29,		JANUARY 30,
	2022		2021
Non-current deferred tax assets (liabilities)
Lease liabilities	$	317,971	$	275,517
Stock-based compensation		26,205		24,922
Accrued expenses		19,572		21,308
Merchandise inventories		10,318		9,097
Deferred lease credits		4,854		4,917
Net operating loss carryforwards		2,884		1,988
Deferred revenue		1,739		635
Convertible senior notes		779		914
Other		1,152		2,269
Non-current deferred tax assets—net		385,474		341,567
Valuation allowance		(1,959)		(2,049)
Non-current deferred tax assets	$	383,515	$	339,518
Property and equipment	$	(154,821)	$	(147,143)
Lease right-of-use assets		(146,368)		(122,306)
Tradename, trademarks and intangibles		(12,603)		(10,349)
Prepaid expense and other		(11,077)		(8,010)
State benefit		(1,803)		(1,786)
Non-current deferred tax liabilities		(326,672)		(289,594)
Total net non-current deferred tax assets	$	56,843	$	49,924

Schedule of Reconciliation of Unrecognized Tax Benefits

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

	YEAR ENDED
	JANUARY 29,		JANUARY 30,		FEBRUARY 1,
	2022		2021		2020
Balance at beginning of fiscal year	$	8,456	$	8,514	$	8,459
Gross increases (decreases)—prior period tax positions		(143)		(129)		(2)
Gross increases—current period tax positions		933		690		438
Reductions based on the lapse of the applicable statutes of limitations		(642)		(619)		(381)
Balance at end of fiscal year	$	8,604	$	8,456	$	8,514