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Income Taxes (Tables)
12 Months Ended
Feb. 02, 2019
Income Tax Disclosure [Abstract]  
Summary of Income Before Income Taxes

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

 

 

 

Year Ended

 

 

 

February 2,

 

 

February 3,

 

 

January 28,

 

 

 

2019

 

 

2018

 

 

2017

 

Domestic

 

$

178,016

 

 

$

28,859

 

 

$

8,370

 

Foreign

 

 

3,137

 

 

 

1,292

 

 

 

184

 

Total income before income taxes

 

$

181,153

 

 

$

30,151

 

 

$

8,554

 

Summary of Income Tax Expense (Benefit)

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

 

 

 

Year Ended

 

 

 

February 2,

 

 

February 3,

 

 

January 28,

 

 

 

2019

 

 

2018

 

 

2017

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

24,012

 

 

$

18,593

 

 

$

751

 

State

 

 

6,275

 

 

 

2,761

 

 

 

2,410

 

Foreign

 

 

1,270

 

 

 

933

 

 

 

694

 

Total current tax expense

 

 

31,557

 

 

 

22,287

 

 

 

3,855

 

Deferred

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(465

)

 

 

6,042

 

 

 

2,109

 

State

 

 

(731

)

 

 

(355

)

 

 

(2,414

)

Foreign

 

 

153

 

 

 

(3

)

 

 

(397

)

Total deferred tax expense (benefit)

 

 

(1,043

)

 

 

5,684

 

 

 

(702

)

Total income tax expense

 

$

30,514

 

 

$

27,971

 

 

$

3,153

 

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

A reconciliation of the federal statutory tax rate to the Company’s effective tax rate is as follows:

 

 

 

Year Ended

 

 

 

February 2,

 

 

February 3,

 

 

January 28,

 

 

 

2019

 

 

2018

 

 

2017

 

Provision at federal statutory tax rate

 

 

21.0

%

 

 

33.7

%

 

 

35.0

%

State income taxes—net of federal tax impact

 

 

2.1

 

 

 

4.8

 

 

 

4.8

 

Goodwill impairment

 

 

1.6

 

 

 

17.9

 

 

 

—

 

Valuation allowance

 

 

0.3

 

 

 

1.1

 

 

 

0.9

 

Meals and entertainment

 

 

0.2

 

 

 

1.5

 

 

 

5.0

 

Other permanent items

 

 

0.2

 

 

 

1.3

 

 

 

2.8

 

Aircraft expenses

 

 

0.1

 

 

 

3.6

 

 

 

3.3

 

Tax rate adjustments

 

 

0.1

 

 

 

(0.6

)

 

 

(5.8

)

Stock compensation—excess benefits

 

 

(8.8

)

 

 

(20.9

)

 

 

—

 

Non-deductible stock-based compensation

 

 

—

 

 

 

26.7

 

 

 

—

 

Federal statutory tax rate change

 

 

—

 

 

 

20.1

 

 

 

—

 

Foreign income inclusion—transition tax

 

 

—

 

 

 

3.3

 

 

 

—

 

Net adjustments to tax accruals and other

 

 

—

 

 

 

1.4

 

 

 

1.2

 

Foreign income

 

 

—

 

 

 

(0.9

)

 

 

(4.2

)

Donation of appreciated property

 

 

—

 

 

 

(0.2

)

 

 

(8.7

)

Transaction costs

 

 

—

 

 

 

—

 

 

 

2.6

 

Effective tax rate

 

 

16.8

%

 

 

92.8

%

 

 

36.9

%

Components of Deferred Tax Assets and Liabilities

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

 

 

 

February 2,

 

 

February 3,

 

 

 

2019

 

 

2018

 

Non-current deferred tax assets (liabilities)

 

 

 

 

 

 

 

 

Stock-based compensation

 

$

22,721

 

 

$

25,047

 

Deferred lease credits

 

 

20,900

 

 

 

18,355

 

Accrued expense

 

 

16,657

 

 

 

10,488

 

Inventory

 

 

14,735

 

 

 

16,132

 

Net operating loss carryforwards

 

 

1,654

 

 

 

1,584

 

Property and equipment

 

 

(27,583

)

 

 

(21,869

)

Tradenames, trademarks and intangibles

 

 

(12,386

)

 

 

(14,991

)

Prepaid expense and other

 

 

(4,209

)

 

 

(12,379

)

State tax benefit

 

 

(2,250

)

 

 

(2,394

)

Convertible senior notes

 

 

(1,054

)

 

 

(1,890

)

Deferred revenue

 

 

(152

)

 

 

3,313

 

Other

 

 

2,618

 

 

 

3,105

 

Non-current deferred tax assets

 

 

31,651

 

 

 

24,501

 

Valuation allowance

 

 

(1,618

)

 

 

(1,190

)

Net non-current deferred tax assets

 

$

30,033

 

 

$

23,311

 

Schedule of Reconciliation of Valuation Allowance

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

 

 

 

Year Ended

 

 

 

February 2,

 

 

February 3,

 

 

January 28,

 

 

 

2019

 

 

2018

 

 

2017

 

Balance at beginning of fiscal year

 

$

1,190

 

 

$

760

 

 

$

158

 

Net changes in deferred tax assets and liabilities

 

 

428

 

 

 

430

 

 

 

602

 

Balance at end of fiscal year

 

$

1,618

 

 

$

1,190

 

 

$

760

 

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 2,

 

 

February 3,

 

 

January 28,

 

 

 

2019

 

 

2018

 

 

2017

 

Balance at beginning of fiscal year

 

$

8,152

 

 

$

2,190

 

 

$

921

 

Gross increases—prior period tax positions

 

 

239

 

 

 

5,491

 

 

 

53

 

Gross increases—current period tax positions

 

 

375

 

 

 

471

 

 

 

1,216

 

Lapses in statute of limitations

 

 

(307

)

 

 

—

 

 

 

—

 

Balance at end of fiscal year

 

$

8,459

 

 

$

8,152

 

 

$

2,190