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Income Taxes
 12 Months Ended
Jan. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of earnings before income taxes, by tax jurisdiction, are as follows:  
For the Fiscal Year Ended
(In thousands)January 30,
2022		January 31,
2021		February 2,
2020
United States
$1,280,438 $773,317 $353,215 
Foreign
170,813 121,149 103,806 
Total
$1,451,251 $894,466 $457,021 
The provision for income taxes consists of the following:
For the Fiscal Year Ended
(In thousands)January 30,
2022		January 31,
2021		February 2,
2020
Current
Federal
$234,638 $171,821 $76,873 
State
61,056 39,498 14,205 
Foreign
26,685 15,494 12,438 
Total Current
$322,379 $226,813 $103,516 
Deferred
Federal
$5,896 $(7,575)$(606)
State
(741)(5,997)(870)
Foreign
(2,620)511 (1,081)
Total Deferred
$2,535 $(13,061)$(2,557)
Total provision
$324,914 $213,752 $100,959 
We have historically elected not to provide for U.S. income taxes with respect to the undistributed earnings of our foreign subsidiaries as we intended to utilize those earnings in our foreign operations for an indefinite period of time. We are permanently reinvested with respect to unremitted earnings in Canada.
A reconciliation of income taxes at the federal statutory corporate rate to the effective rate is as follows:  
For the Fiscal Year Ended
(In thousands)January 30,
2022		January 31,
2021		February 2,
2020
Federal income taxes at the statutory rate21.0 %21.0 %21.0 %
State income tax rate4.1 %3.9 %2.9 %
Officer’s compensation under Sec.162(m)2.0 %1.1 %1.0 %
Deferred true up(0.1 %)(0.6 %)(1.3 %)
Change in uncertain tax positions
(0.5 %)0.2 %0.5 %
Rate differential(0.6 %)(1.1 %)(1.8 %)
Credits(0.2 %)(0.2 %)(0.7 %)
Stock-based compensation(2.9 %)(0.2 %)0.3 %
Other(0.4 %)(0.2 %)0.2 %
Total22.4 %23.9 %22.1 %
Significant components of our deferred income tax accounts are as follows:
(In thousands)January 30, 2022January 31, 2021
Deferred tax assets (liabilities)
Operating lease liabilities
$321,649 $319,599 
 Compensation27,069 20,852 
Merchandise inventories23,513 20,631 
Gift cards21,519 19,345 
Accrued liabilities17,919 13,451 
Stock-based compensation11,879 9,926 
Executive deferred compensation10,476 8,647 
State taxes7,362 7,460 
Loyalty rewards5,246 9,609 
Federal and state net operating loss2,552 2,609 
Operating lease right-of-use assets(285,764)(283,856)
Property and equipment(76,643)(54,724)
Deferred lease incentives(28,808)(31,672)
Other
57 (317)
Valuation allowance
(2,760)(2,819)
Total deferred tax assets, net
$55,266 $58,741 
We had net state operating loss carry-forwards as of January 30, 2022. A valuation allowance has been provided against certain state net operating loss carry-forwards, as we do not expect to fully utilize the losses in future years.
The following table summarizes the activity related to our gross unrecognized tax benefits:
For the Fiscal Year Ended
(In thousands)January 30,
2022		January 31,
2021		February 2,
2020
Beginning Balance
$38,696 $36,638 $35,209 
Increases related to current year tax positions
8,573 4,593 3,438 
Increases for tax positions for prior years
1,738 848 1,405 
Decrease for tax positions for prior years
(82)(437)(308)
Settlements
— — — 
Lapse in statute of limitations
(15,313)(2,946)(3,106)
Ending Balance
$33,612 $38,696 $36,638 
As of January 30, 2022, we had $33,612,000 of gross unrecognized tax benefits, of which $28,090,000 would, if recognized, affect the effective tax rate.
We accrue interest and penalties related to unrecognized tax benefits in the provision for income taxes. As of January 30, 2022 and January 31, 2021, our accruals for the payment of interest and penalties totaled $5,723,000 and $8,225,000, respectively.
Due to the potential resolution of tax issues, it is reasonably possible that the balance of our gross unrecognized tax benefits could decrease within the next twelve months by a range of $0 to $3,300,000.
We file income tax returns in the U.S. and foreign jurisdictions. We are subject to examination by the tax authorities in these jurisdictions. Our U.S. federal taxable years for which the statute of limitations has not expired are fiscal years 2018 to 2021. Substantially all material states, local and foreign jurisdictions’ statutes of limitations are closed for taxable years prior to 2018.