Income Taxes (Tables)

12 Months Ended

Feb. 02, 2019

Summary of the entity's distribution between domestic and foreign earnings (loss) from continuing operations before income taxes and the provision (benefit) for income taxes related to continuing operations

The following table summarizes our distribution between domestic and foreign earnings (loss) before income taxes and the provision (benefit) for income taxes (in thousands):



	Fiscal 2018			Fiscal 2017		Fiscal 2016
Earnings from continuing operations before income taxes:
Domestic	$	85,050		$	78,707	$	84,843
Foreign	3,259			4,184		1,620
Earnings from continuing operations before income taxes	$	88,309		$	82,891	$	86,463

Income taxes:
Current:
Federal	$	12,543		$	11,710	$	19,704
State	4,474			3,775		4,475
Foreign	1,979			707		599
	18,996			16,192		24,778
Deferred—primarily Federal	3,141			1,690		8,108
Deferred—Foreign	(119		)	308		(922		)
Income taxes	$	22,018		$	18,190	$	31,964

Schedule of reconciliations of the United States federal statutory income tax rates and the entity's effective tax rates

Reconciliations of the United States federal statutory income tax rates and our effective tax rates are summarized as follows:



	Fiscal 2018		Fiscal 2017		Fiscal 2016
Statutory tax rate ⁽¹⁾	21.0	%	33.7	%	35.0	%
State income taxes—net of federal income tax benefit	4.6	%	3.6	%	3.8	%
Impact of foreign operations rate differential ⁽²⁾	0.7	%	(0.6	)%	(0.4	)%
Valuation allowance for foreign losses and other carry-forwards ⁽³⁾	(0.1	)%	1.1	%	(0.6	)%
U.S. Tax Reform impact of tax rate change on deferred tax amounts	—	%	(14.4	)%	—	%
Other, net	(1.3	)%	(1.5	)%	(0.8	)%
Effective tax rate for continuing operations	24.9	%	21.9	%	37.0	%
⁽¹⁾The statutory tax rate for Fiscal 2018 reflects the reduction of the federal corporate marginal tax rate to 21%, while Fiscal 2016 reflects the federal corporate marginal tax rate prior to U.S. Tax Reform of 35%. Fiscal 2017 is a blended rate that reflects the reduction of the federal corporate marginal tax rate effective January 1, 2018.
⁽²⁾Impact of foreign operations rate differential primarily reflects the rate differential between the United States and the respective foreign jurisdictions for any foreign income or losses, and the impact of any permanent differences.
⁽³⁾Valuation allowance for foreign losses and other carry-forwards primarily reflects the valuation allowance recorded due to our inability to recognize an income tax benefit related to certain operating loss carry-forwards and deferred tax assets during the period. The benefit in Fiscal 2018 and Fiscal 2016 was primarily due to the utilization of certain operating loss carryforward benefits against current year earnings and changes in our assessment of the likelihood of recognition of certain foreign operating loss carryforwards.

Schedule of deferred tax assets and liabilities included in the entity's consolidated balance sheets

Deferred tax assets and liabilities included in our consolidated balance sheets are comprised of the following (in thousands):



	February 2, 2019			February 3, 2018
Deferred Tax Assets:
Inventories	$	13,210		$	12,207
Accrued compensation and benefits	8,096			7,660
Receivable allowances and reserves	890			1,630
Deferred rent and lease obligations	3,371			3,322
Operating loss and other carry-forwards	2,785			4,218
Other, net	4,122			3,739
Deferred tax assets	32,474			32,776
Deferred Tax Liabilities:
Depreciation and amortization	(11,917		)	(10,210		)
Acquired intangible assets	(32,913		)	(31,327		)
Deferred tax liabilities	(44,830		)	(41,537		)
Valuation allowance	(5,103		)	(5,624		)
Net deferred tax liability	$	(17,459	)	$	(14,385	)

Schedule of deferred income taxes included in the line items in the entity's consolidated balance sheets

The amounts of deferred income taxes included in our consolidated balance sheets are as follows (in thousands):



	February 2, 2019			February 3, 2018
Assets:
Deferred tax assets	$	952		$	884
Liabilities:
Deferred tax liabilities	(18,411		)	(15,269		)
Net deferred tax liability	$	(17,459	)	$	(14,385	)