Taxes on Earnings (Tables)

12 Months Ended

Feb. 03, 2018

The provision for income taxes consisted of the following:



($000)	2017			2016			2015
Current
Federal	$	660,017		$	632,872		$	497,710
State	52,853			44,333			37,030
	712,870			677,205			534,740
Deferred
Federal	(40,468		)	(8,350		)	55,404
State	5,565			(353		)	954
	(34,903		)	(8,703		)	56,358
Total	$	677,967		$	668,502		$	591,098

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:



	2017		2016		2015
Federal income taxes at the statutory rate	34	%	35	%	35	%
Impact of the Tax Cuts and Jobs Act on deferred taxes	(3	)%	—		—
State income taxes (net of federal benefit) and other, net	2	%	2	%	2	%
Total	33	%	37	%	37	%

Components of Deferred Income Taxes

The components of deferred taxes at February 3, 2018 and January 28, 2017 are as follows:



($000)	2017			2016
Deferred Tax Assets
Accrued liabilities	$	46,489		$	71,796
Deferred compensation	28,094			36,101
Stock-based compensation	34,986			44,865
Deferred rent	18,013			25,221
State taxes and credits	20,206			28,484
Employee benefits	15,242			23,987
Other	5,224			8,223
Gross Deferred Tax Assets	168,254			238,677
Less: Valuation allowance	(4,659		)	(3,730		)
Deferred Tax Assets	163,595			234,947

Deferred Tax Liabilities
Depreciation	(217,332		)	(313,526		)
Merchandise inventory	(19,055		)	(28,853		)
Supplies	(9,529		)	(13,418		)
Other	(3,485		)	(535		)
Deferred Tax Liabilities	(249,401		)	(356,332		)
Net Deferred Tax Liabilities	$	(85,806	)	$	(121,385	)

Unrecognized Tax Benefits

The changes in amounts of unrecognized tax benefits (gross of federal tax benefits and excluding interest and penalties) at fiscal 2017, 2016, and 2015 are as follows:



($000)	2017			2016			2015
Unrecognized tax benefits - beginning of year	$	81,122		$	75,372		$	78,116
Gross increases:
Tax positions in current period	26,837			12,394			14,990
Tax positions in prior period	—			2,897			—
Gross decreases:
Tax positions in prior periods	(2,755		)	(3,231		)	(10,589		)
Lapse of statute limitations	(6,068		)	(6,310		)	(4,216		)
Settlements	(470		)	—			(2,929		)
Unrecognized tax benefits - end of year	$	98,666		$	81,122		$	75,372