INCOME TAXES (Tables)

12 Months Ended

Feb. 03, 2018

INCOME TAXES

Schedule of reconciliation of income tax expense computed at the U.S. federal statutory tax rate

The reconciliation of income tax expense computed at the U.S. federal statutory tax rate to income tax expense reported in our consolidated statements of comprehensive income is as follows (in thousands):

	Fiscal Year
	2017				2016				2015
Income taxes at statutory rate	$	204,256	33.7	%	$	203,621	35.0	%	$	200,242	35.0	%
State income taxes, net of federal benefit		18,224	3.0			10,665	1.8			19,131	3.3
Foreign tax rate differential		(31,570)	(5.2)			(8,820)	(1.5)			(2,583)	(0.4)
Enactment of Tax Act		14,557	2.4			—	—			—	—
Other		9,776	1.6			(1,852)	(0.3)			(7,582)	(1.3)
Total	$	215,243	35.5	%	$	203,614	35.0	%	$	209,208	36.6	%

Schedule of components of income tax expense

The components of our income tax expense are as follows (in thousands):

	Fiscal Year
	2017		2016		2015
Current:
Federal	$	186,784	$	171,934	$	164,384
State		26,434		15,970		27,167
Foreign		(2,027)		8,487		9,746
Total current income tax expense		211,191		196,391		201,297
Deferred:
Federal		3,961		4,055		6,300
State		(966)		1,139		2,762
Foreign		1,057		2,029		(1,151)
Total deferred income tax expense		4,052		7,223		7,911
Income taxes	$	215,243	$	203,614	$	209,208

Schedule of significant components of deferred income tax assets and liabilities

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

	February 3,		January 28,
	2018		2017
Deferred income tax assets:
Accrued liabilities	$	12,378	$	18,811
Self-insurance		14,740		24,602
Deferred rent		14,108		18,714
Gift cards		8,392		8,985
Share-based compensation		7,119		9,765
Original issue discount		2,829		8,845
State income taxes		5,033		4,077
State and foreign net operating losses		6,247		4,615
Other		1,902		2,294
Total gross deferred income tax assets		72,748		100,708
Valuation allowance		(2,640)		(3,689)
Total deferred income tax assets, net of valuation allowance		70,108		97,019
Deferred income tax liabilities:
Property and equipment		(25,398)		(37,895)
Merchandise inventories		(8,447)		(8,152)
Cancellation of debt		(4,783)		(15,143)
Total deferred income tax liabilities		(38,628)		(61,190)
Net deferred income tax assets	$	31,480	$	35,829

Schedule of reconciliation of gross unrecognized tax benefits

A reconciliation of gross unrecognized tax benefits from the end of fiscal 2016 through the end of fiscal 2017 is as follows (in thousands):

Balance at beginning of year	$	34,889
Additions related to the current year		9,916
Additions related to prior years		5,014
Reductions related to prior years		(167)
Settlement of tax positions		(112)
Expiration of applicable statute of limitations		(2,646)
Balance at end of year	$	46,894