Taxes On Earnings (Tables)

12 Months Ended

Feb. 01, 2014

The provision for income taxes consisted of the following:



($000)	2013			2012			2011
Current
Federal	$	486,203		$	485,882		$	343,550
State	35,053			31,227			30,702
	521,256			517,109			374,252
Deferred
Federal	(11,055		)	(37,178		)	25,383
State	(4,195		)	(1,850		)	(3,661		)
	(15,250		)	(39,028		)	21,722
Total	$	506,006		$	478,081		$	395,974

Provision for Taxes Effective Rate

The provision for taxes for financial reporting purposes is different from the tax provision computed by applying the statutory federal income tax rate. The differences are reconciled below:



	2013		2012		2011
Federal income taxes at the statutory rate	35	%	35	%	35	%
State income taxes (net of federal benefit) and other, net	3	%	3	%	3	%
Total	38	%	38	%	38	%

Components Of Deferred Income Taxes

The components of deferred income taxes at February 1, 2014 and February 2, 2013 are as follows:



($000)	2013			2012
Deferred Tax Assets
Accrued liabilities	$	87,835		$	72,266
Deferred compensation	31,034			28,040
Stock-based compensation	33,048			28,781
Deferred rent	17,888			16,984
California franchise taxes	16,479			13,376
Employee benefits	16,177			18,315
Other	4,992			3,686
	207,453			181,448
Deferred Tax Liabilities
Depreciation	(212,383		)	(210,343		)
Merchandise inventory	(28,558		)	(18,802		)
Supplies	(10,730		)	(9,766		)
Prepaid expenses	(4,426		)	(6,431		)
	(256,097		)	(245,342		)
Net Deferred Tax Liabilities	$	(48,644	)	$	(63,894	)

Classified as:
Current net deferred tax asset	$	10,227		$	20,407
Long-term net deferred tax liability	(58,871		)	(84,301		)
Net Deferred Tax Liabilities	$	(48,644	)	$	(63,894	)

Unrecognized Tax Benefits

The changes in amounts of unrecognized tax benefits (gross of federal tax benefits and excluding interest and penalties) at fiscal 2013, 2012, and 2011 are as follows:



($000)	2013			2012			2011
Unrecognized tax benefits - beginning of year	$	65,667		$	56,524		$	43,990
Gross increases:
Tax positions in current period	15,591			11,009			9,245
Tax positions in prior period	2,418			4,167			12,193
Gross decreases:
Tax positions in prior periods	(519		)	(1,476		)	(4,491		)
Lapse of statute limitations	(2,274		)	(1,312		)	(682		)
Settlements	(560		)	(3,245		)	(3,731		)
Unrecognized tax benefits - end of year	$	80,323		$	65,667		$	56,524

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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