Income Taxes (Tables)

12 Months Ended

Feb. 03, 2024

Income Taxes

Summary of distribution between domestic and foreign earnings (loss) before income taxes

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		Fiscal		Fiscal
	2023		2022		2021
Earnings (loss) before income taxes:
Domestic	$	62,772	$	206,944	$	161,233
Foreign		12,174		8,781		3,326
Earnings (loss) before income taxes	$	74,946	$	215,725	$	164,559
Income taxes:
Current:
Federal	$	28,183	$	41,776	$	24,998
State		7,530		8,835		3,780
Foreign		2,419		1,191		409
		38,132		51,802		29,187
Deferred—Domestic		(24,083)		71		4,155
Deferred—Foreign		194		(1,883)		(104)
Income taxes	$	14,243	$	49,990	$	33,238

Summary of provision (benefit) for income taxes

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		Fiscal		Fiscal
	2023		2022		2021
Earnings (loss) before income taxes:
Domestic	$	62,772	$	206,944	$	161,233
Foreign		12,174		8,781		3,326
Earnings (loss) before income taxes	$	74,946	$	215,725	$	164,559
Income taxes:
Current:
Federal	$	28,183	$	41,776	$	24,998
State		7,530		8,835		3,780
Foreign		2,419		1,191		409
		38,132		51,802		29,187
Deferred—Domestic		(24,083)		71		4,155
Deferred—Foreign		194		(1,883)		(104)
Income taxes	$	14,243	$	49,990	$	33,238

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

	Fiscal		Fiscal		Fiscal
	2023		2022		2021
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State income taxes—net of federal income tax benefit	1.6	%	3.6	%	3.7	%
Change in reserve for uncertain tax positions & method change	1.5	%	0.2	%	(1.0)	%
Impact of foreign operations rate differential	0.3	%	0.1	%	0.1	%
U.S. federal tax credits	(3.0)	%	(0.7)	%	(0.6)	%
Impact of prior year true-ups	(1.9)	%	(0.3)	%	(0.7)	%
Excess Tax Benefit, Restricted Stock Vesting	(1.6)	%	(0.1)	%	(0.3)	%
Impact of valuation allowances related to operating losses	(0.9)	%	(1.6)	%	(0.8)	%
Impact of valuation allowances related to capital losses	—	%	—	%	1.2	%
Impact of capital losses	—	%	—	%	(2.9)	%
Other, net	2.0	%	1.0	%	0.5	%
Effective tax rate for continuing operations	19.0	%	23.2	%	20.2	%

Schedule of deferred tax assets and liabilities

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

	February 3,		January 28,
	2024		2023
Deferred Tax Assets:
Inventories	$	21,254	$	20,561
Accrued compensation and benefits		10,982		9,637
Receivable allowances and reserves		2,433		2,580
Operating lease liabilities		77,150		71,871
Operating loss and other carry-forwards		709		757
Other, net		5,902		4,901
Deferred tax assets		118,430		110,307
Deferred Tax Liabilities:
Operating lease assets		(74,004)		(66,145)
Depreciation and amortization		(16,907)		(15,289)
Acquired intangible assets		(1,051)		(26,030)
Deferred tax liabilities		(91,962)		(107,464)
Valuation allowance		(2,289)		(2,448)
Net deferred tax asset (liability)	$	24,179	$	395

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 3,		January 28,
	2024		2023
Assets:
Deferred tax assets	$	24,179	$	3,376
Liabilities:
Deferred tax liabilities		—		(2,981)
Net deferred tax asset (liability)	$	24,179	$	395

Schedule of reconciliation of changes in gross amount of unrecognized tax benefits

A reconciliation of the changes in the gross amount of unrecognized tax benefits, which are included in other non-current liabilities, is as follows (in thousands):

	Fiscal 2023		Fiscal 2022		Fiscal 2021
Balance of unrecognized tax benefits at beginning of year	$	3,664	$	3,390	$	5,261
Increase related to prior period tax positions		233		110		10
Decrease related to prior period tax positions		(2,027)		—		—
Increase related to current period tax positions		1,940		646		527
Decrease related to settlements with taxing authorities		—		—		(2,305)
Decrease related to lapse of statute of limitations		(100)		(482)		(103)
Balance of unrecognized tax benefits at end of year	$	3,710	$	3,664	$	3,390