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Income Taxes
 12 Months Ended
Jan. 29, 2023
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 29,
2023		January 30,
2022		January 31,
2021
United States
$1,331,492 $1,280,438 $773,317 
Foreign
169,190 170,813 121,149 
Total
$1,500,682 $1,451,251 $894,466 
The provision for income taxes consists of the following:
For the Fiscal Year Ended
(In thousands)January 29,
2023		January 30,
2022		January 31,
2021
Current
Federal
$299,015 $234,638 $171,821 
State
71,120 61,056 39,498 
Foreign
26,466 26,685 15,494 
Total Current
$396,601 $322,379 $226,813 
Deferred
Federal
$(17,293)$5,896 $(7,575)
State
(3,292)(741)(5,997)
Foreign
(3,238)(2,620)511 
Total Deferred
$(23,823)$2,535 $(13,061)
Total provision
$372,778 $324,914 $213,752 
Since the Tax Cuts and Jobs Act of 2017, we have elected not to provide for income taxes with respect to the earnings of Canada after fiscal 2017. In the second quarter of fiscal 2022, we assessed the overall forecasted cash needs and financial position of our foreign subsidiaries, and management decided to no longer assert its intent to indefinitely reinvest undistributed earnings in Canada. As a result of this change in assertion, we recorded $2.4 million of tax expense mainly related to Canadian withholding taxes.
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 29,
2023		January 30,
2022		January 31,
2021
Federal income taxes at the statutory rate21.0 %21.0 %21.0 %
State income tax rate4.2 4.1 3.9 
Officer’s compensation under Sec.162(m)1.4 2.0 1.1 
Change in uncertain tax positions0.3 (0.5)0.2 
Deferred true up0.1 (0.1)(0.6)
Rate differential(0.7)(0.6)(1.1)
Credits(0.2)(0.2)(0.2)
Stock-based compensation(1.7)(2.9)(0.2)
Other0.4 (0.4)(0.2)
Total24.8 %22.4 %23.9 %
Significant components of our deferred income tax accounts are as follows:
As of
(In thousands)January 29, 2023January 30, 2022
Deferred tax assets (liabilities)
Operating lease liabilities$359,001 $321,649 
 Merchandise inventories32,338 23,513 
Gift cards24,632 21,519 
Accrued liabilities22,356 17,919 
Compensation18,960 27,069 
Stock-based compensation14,308 11,879 
Executive deferred compensation9,605 10,476 
State taxes8,084 7,362 
Loyalty rewards3,734 5,246 
State net operating loss2,446 2,552 
Operating lease right-of-use assets(321,646)(285,764)
Property and equipment(65,039)(76,643)
Deferred lease incentives(22,400)(28,808)
Other(4,756)57 
Valuation allowance(2,635)(2,760)
Total deferred tax assets, net
$78,988 $55,266 
We had net state operating loss carry-forwards as of January 29, 2023. 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 29,
2023		January 30,
2022		January 31,
2021
Beginning Balance
$33,612 $38,696 $36,638 
Increases related to current year tax positions
8,169 8,573 4,593 
Increases for tax positions for prior years
807 1,738 848 
Decrease for tax positions for prior years
(2,237)(82)(437)
Lapse in statute of limitations
(3,283)(15,313)(2,946)
Ending Balance
$37,068 $33,612 $38,696 
As of January 29, 2023, we had $37.1 million of gross unrecognized tax benefits, of which $31.0 million 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 29, 2023 and January 30, 2022, our accruals for the payment of interest and penalties totaled $6.1 million and $5.7 million, 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 $6.2 million.
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 2022. Substantially all material states, local and foreign jurisdictions’ statutes of limitations are closed for taxable years prior to 2019.