INCOME TAXES (Tables)

12 Months Ended

Feb. 01, 2020

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
	2019				2018				2017
Income taxes at statutory rate	$	75,258	21.0	%	$	87,581	21.0	%	$	204,256	33.7	%
State income taxes, net of federal benefit		14,716	4.1			13,095	3.1			18,224	3.0
Foreign tax rate differential		(22,740)	(6.4)			(22,718)	(5.4)			(31,570)	(5.2)
Tax Act adjustments		—	—			987	0.2			14,557	2.4
Tax on GILTI, net		7,865	2.2			3,799	0.9			—	—
Share-based compensation		4,225	1.2			843	0.2			(2,685)	(0.4)
Taxing authority examinations		—	—			5,861	1.4			—	—
Other		6,452	1.8			8,061	2.0			12,461	2.0
Total	$	85,776	23.9	%	$	97,509	23.4	%	$	215,243	35.5	%

Schedule of components of income tax expense

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

	Fiscal Year
	2019		2018		2017
Current:
Federal	$	58,966	$	61,910	$	186,784
State		12,995		15,502		26,434
Foreign		4,596		12,626		(2,027)
Total current income tax expense		76,557		90,038		211,191
Deferred:
Federal		2,762		9,200		3,961
State		5,632		1,073		(966)
Foreign		825		(2,802)		1,057
Total deferred income tax expense		9,219		7,471		4,052
Income taxes	$	85,776	$	97,509	$	215,243

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 1,		February 2,
	2020		2019
Deferred income tax assets:
Operating lease liabilities	$	367,390	$	14,529
Accrued liabilities		13,804		13,031
Self-insurance		14,028		14,028
Gift cards		10,225		8,784
Share-based compensation		6,760		8,255
Interest rate swaps		4,306		1,655
Goodwill		4,760		678
Other intangible assets		3,305		638
State income taxes		4,540		3,949
State and foreign net operating losses		7,843		7,286
Tax credits		4,184		3,833
Other		2,664		768
Total gross deferred income tax assets		443,809		77,434
Valuation allowance		(9,209)		(5,430)
Total deferred income tax assets, net of valuation allowance		434,600		72,004
Deferred income tax liabilities:
Operating lease assets		(351,964)		—
Property and equipment		(49,604)		(39,046)
Merchandise inventories		(9,866)		(3,198)
Prepaid expenses		(4,965)		(4,755)
Total deferred income tax liabilities		(416,399)		(46,999)
Net deferred income tax assets	$	18,201	$	25,005

Schedule of reconciliation of gross unrecognized tax benefits

A reconciliation of unrecognized tax benefits from the end of fiscal 2018 through the end of fiscal 2019 is as follows (in thousands):

Balance at beginning of year	$	58,820
Additions related to the current year		7,076
Additions related to prior years		5,837
Reductions related to prior years		(2,972)
Expiration of applicable statute of limitations		(336)
Settlement of tax positions		(8)
Balance at end of year	$	68,417