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Taxes on Earnings
 12 Months Ended
Feb. 03, 2024
Income Tax Disclosure [Abstract]  
Taxes on Earnings Taxes on Earnings
The provision for income taxes consisted of the following:

($000)202320222021
Current
Federal$532,913 $338,479 $442,152 
State85,169 57,552 78,024 
618,082 396,031 520,176 
Deferred
Federal(16,265)74,062 21,103 
State(4,556)5,355 (5,328)
(20,821)79,417 15,775 
Total$597,261 $475,448 $535,951 

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:

202320222021
Federal income taxes at the statutory rate21.0 %21.0 %21.0 %
State income taxes (net of federal benefit) and other, net1

3.2 %2.9 %2.7 %
Total24.2 %23.9 %23.7 %
1Certain items in the prior years have been reclassified to conform to the current year’s presentation.

The components of deferred taxes at February 3, 2024 and January 28, 2023 are as follows:

($000)20232022
Deferred Tax Assets
Accrued liabilities$35,010 $31,303 
Deferred compensation39,366 40,201 
Stock-based compensation52,431 46,139 
State taxes and credits18,494 15,755 
Employee benefits33,764 24,715 
Operating lease liabilities826,566 820,219 
Other9,053 7,976 
Deferred Tax Assets1,014,684 986,308 
Deferred Tax Liabilities
Depreciation and amortization(369,529)(372,497)
Merchandise inventory(25,410)(24,493)
Supplies(14,137)(13,239)
Operating lease assets(785,608)(781,277)
Other(16,238)(11,861)
Deferred Tax Liabilities(1,210,922)(1,203,367)
Net Deferred Tax Liabilities$(196,238)$(217,059)
At the end of fiscal 2023 and 2022, the Company’s state tax credit carryforwards for income tax purposes were approximately $10.1 million and $10.0 million, respectively. The state tax credit carryforwards will begin to expire in fiscal 2032.

The changes in amounts of unrecognized tax benefits (gross of federal tax benefits and excluding interest and penalties) at fiscal 2023, 2022, and 2021 are as follows:

($000)202320222021
Unrecognized tax benefits - beginning of year$53,544 $60,547 $60,240 
Gross increases:
Tax positions in current period13,206 10,132 10,381 
Tax positions in prior period2,295 672 1,494 
Gross decreases:
Tax positions in prior periods(4,366)(6,808)(1,795)
Lapse of statutes of limitations(11,148)(9,989)(9,757)
Settlements(1,152)(1,010)(16)
Unrecognized tax benefits - end of year$52,379 $53,544 $60,547 

At the end of fiscal 2023, 2022, and 2021, the reserves for unrecognized tax benefits were $58.6 million, $60.6 million, and $68.1 million inclusive of $6.2 million, $7.1 million, and $7.6 million of related reserves for interest and penalties, respectively. The Company accounts for interest and penalties related to unrecognized tax benefits as a part of its provision for taxes on earnings. If recognized, $46.6 million would impact the Company’s effective tax rate. The difference between the total amount of unrecognized tax benefits and the amounts that would impact the effective tax rate relates to amounts attributable to deferred tax assets and liabilities. These amounts are net of federal and state income taxes.

It is reasonably possible that certain federal and state tax matters may be concluded or statutes of limitations may lapse during the next twelve months. Accordingly, the total amount of unrecognized tax benefits may decrease by up to $10.8 million.

The Company is open to audit by the Internal Revenue Service under the statute of limitations for fiscal years 2020 through 2023. The Company’s state income tax returns are generally open to audit under the various statutes of limitations for fiscal years 2019 through 2023. Certain state tax returns are currently under audit by various tax authorities. The Company does not expect the results of these audits to have a material impact on the consolidated financial statements.