Taxes on Earnings (Tables)

12 Months Ended

Jan. 28, 2017

The provision for income taxes consisted of the following:



($000)	2016			2015		2014
Current
Federal	$	632,872		$	497,710	$	499,009
State	44,333			37,030		36,547
	677,205			534,740		535,556
Deferred
Federal	(8,350		)	55,404		23,452
State	(353		)	954		1,634
	(8,703		)	56,358		25,086
Total	$	668,502		$	591,098	$	560,642

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:



	2016		2015		2014
Federal income taxes at the statutory rate	35	%	35	%	35	%
State income taxes (net of federal benefit) and other, net	2	%	2	%	3	%
Total	37	%	37	%	38	%

Components of Deferred Income Taxes

The components of deferred taxes at January 28, 2017 and January 30, 2016 are as follows:



($000)	2016			2015
Deferred Tax Assets
Accrued liabilities	$	71,796		$	69,144
Deferred compensation	36,101			29,932
Stock-based compensation	44,865			41,388
Deferred rent	25,221			23,903
State taxes and credits	28,484			21,973
Employee benefits	23,987			22,156
Other	8,223			6,835
Gross Deferred Tax Assets	238,677			215,331
Less: Valuation allowance	(3,730		)	—
Deferred Tax Assets	234,947			215,331

Deferred Tax Liabilities
Depreciation	(313,526		)	(304,191		)
Merchandise inventory	(28,853		)	(28,085		)
Supplies	(13,418		)	(12,559		)
Other	(535		)	(584		)
Deferred Tax Liabilities	(356,332		)	(345,419		)
Net Deferred Tax Liabilities	$	(121,385	)	$	(130,088	)

Unrecognized Tax Benefits

The changes in amounts of unrecognized tax benefits (gross of federal tax benefits and excluding interest and penalties) at fiscal 2016, 2015, and 2014 are as follows:



($000)	2016			2015			2014
Unrecognized tax benefits - beginning of year	$	75,372		$	78,116		$	80,323
Gross increases:
Tax positions in current period	12,394			14,990			15,441
Tax positions in prior period	2,897			—			—
Gross decreases:
Tax positions in prior periods	(3,231		)	(10,589		)	(9,432		)
Lapse of statute limitations	(6,310		)	(4,216		)	(5,732		)
Settlements	—			(2,929		)	(2,484		)
Unrecognized tax benefits - end of year	$	81,122		$	75,372		$	78,116