Income Taxes (Tables)

12 Months Ended

Jan. 29, 2022

Income Tax Disclosure [Abstract]

Components of Earnings from Continuing Operations Before Income Taxes

The components of earnings from continuing operations before income taxes is comprised of the following:

	Fiscal Year
(In thousands)	2022		2021			2020
United States	$	130,517	$	(3,123	)	$	83,871
Foreign		22,474		(108,546	)		(1,436	)
Total Earnings (Loss) from Continuing Operations before Income Taxes	$	152,991	$	(111,669	)	$	82,435

Income Tax Expense

Income tax expense from continuing operations is comprised of the following:

	Fiscal Year
(In thousands)	2022			2021			2020
Current
U.S. federal	$	49,354		$	(106,397	)	$	16,313
International		3,555			1,391			322
State		3,845			10,223			3,383
Total Current Income Tax Expense (Benefit)		56,754			(94,783	)		20,018
Deferred
U.S. federal		(22,542	)		48,511			(463	)
International		54			2,773			1,145
State		3,778			(12,142	)		(22	)
Total Deferred Income Tax Expense		(18,710	)		39,142			660
Total Income Tax Expense (Benefit) – Continuing Operations	$	38,044		$	(55,641	)	$	20,678

Reconciliation of Federal Statutory Rate

Reconciliation of the United States federal statutory rate to our effective tax rate from continuing operations is as follows:

	Fiscal Year
	2022			2021			2020
U. S. federal statutory rate of tax		21.00	%		21.00	%		21.00	%
State taxes (net of federal tax benefit)		3.94			1.35			3.62
Foreign rate differential		(0.11	)		(0.25	)		(2.21	)
Change in valuation allowance		1.58			(10.70	)		3.64
Credits		(0.55	)		0.44			(0.93	)
Permanent items		(0.05	)		(0.66	)		1.72
Uncertain federal, state and foreign tax positions		—			—			(2.01	)
CARES Act		—			41.53			—
Outside Basis Difference - IRC Section 165(g) 3		—			10.34			—
Goodwill Impairment		—			(13.50	)		—
Other		(0.94	)		0.28			0.25
Effective Tax Rate		24.87	%		49.83	%		25.08	%

Note 12

Income Taxes, Continued

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities are comprised of the following:

(In thousands)	January 29, 2022			January 30, 2021
Pensions	$	553		$	229
Lease obligation		159,411			175,113
Book over tax depreciation		17,369			13,528
Expense accruals		11,965			10,388
Uniform capitalization costs		4,844			4,886
Provisions for discontinued operations and restructurings		596			650
Inventory valuation		394			2,242
Tax net operating loss and credit carryforwards		31,646			39,829
Allowances for bad debts and notes		863			888
Deferred compensation and restricted stock		2,736			2,945
Identified intangibles		1,409			1,586
Other		35			34
Gross deferred tax assets		231,821			252,318
Deferred tax asset valuation allowance		(42,195	)		(36,561	)
Deferred tax asset net of valuation allowance		189,626			215,757
Identified intangibles		(6,333	)		(4,677	)
Prepaids		(1,784	)		(1,765	)
Right of use asset		(150,554	)		(163,674	)
Tax over book depreciation		(30,421	)		(64,009	)
Other		(1,051	)		(1,120	)
Gross deferred tax liabilities		(190,143	)		(235,245	)
Net Deferred Tax Liabilities	$	(517	)	$	(19,488	)

Deferred Tax Balances

The deferred tax balances have been classified in our Consolidated Balance Sheets as follows:

	As of Fiscal Year Ended
	2022			2021
Net non-current asset	$	1,466		$	-
Net non-current liability		(1,983	)		(19,488	)
Net Deferred Tax Assets	$	(517	)	$	(19,488	)

Reconciliation of Total Amounts of Unrecognized Tax Benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits.

	Fiscal Year
(In thousands)	2022		2021		2020
Unrecognized Tax Benefit – Beginning of Period	$	178	$	178	$	1,835
Gross Increases (Decreases) – Tax Positions in a Current Period		—		—		178
Settlements		—		—		(931	)
Lapse of Statutes of Limitations		—		—		(904	)
Unrecognized Tax Benefit – End of Period	$	178	$	178	$	178