Income Taxes (Tables)

12 Months Ended

Feb. 01, 2020

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
	2019		2018		2017
Earnings from continuing operations before income taxes:
Domestic	$	86,528	$	85,050	$	78,707
Foreign		5,902		3,259		4,184
Earnings from continuing operations before income taxes	$	92,430	$	88,309	$	82,891

Income taxes:
Current:
Federal	$	18,565	$	12,543	$	11,710
State		5,459		4,474		3,775
Foreign		1,650		1,979		707
		25,674		18,996		16,192
Deferred—Domestic		(1,870)		3,141		1,690
Deferred—Foreign		133		(119)		308
Income taxes	$	23,937	$	22,018	$	18,190

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
	2019		2018		2017
Earnings from continuing operations before income taxes:
Domestic	$	86,528	$	85,050	$	78,707
Foreign		5,902		3,259		4,184
Earnings from continuing operations before income taxes	$	92,430	$	88,309	$	82,891

Income taxes:
Current:
Federal	$	18,565	$	12,543	$	11,710
State		5,459		4,474		3,775
Foreign		1,650		1,979		707
		25,674		18,996		16,192
Deferred—Domestic		(1,870)		3,141		1,690
Deferred—Foreign		133		(119)		308
Income taxes	$	23,937	$	22,018	$	18,190

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


	Fiscal		Fiscal		Fiscal
	2019		2018		2017
Statutory tax rate ⁽¹⁾	21.0	%	21.0	%	33.7	%
State income taxes—net of federal income tax benefit	4.4	%	4.6	%	3.6	%
Impact of foreign operations rate differential ⁽²⁾	0.2	%	0.7	%	(0.6)	%
Valuation allowance for foreign losses and other carry-forwards ⁽³⁾	0.1	%	(0.1)	%	1.1	%
Impact of U.S. Tax Reform on deferred tax amounts ⁽⁴⁾	—	%	—	%	(14.4)	%
Other, net	0.2	%	(1.3)	%	(1.5)	%
Effective tax rate for continuing operations	25.9	%	24.9	%	21.9	%

(1)	The statutory tax rate for Fiscal 2019 and Fiscal 2018 reflects the federal corporate tax rate of 21%. Fiscal 2017 is a blended rate that reflects the reduction of the federal corporate marginal tax rate effective January 1, 2018 as a result of U.S. Tax Reform.

(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 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.

(4)

Impact of U.S. Tax Reform on deferred tax amounts of $12 million consists of our provisional income tax benefit amount related to the revaluation of deferred tax assets and liabilities to reflect the change in the enacted tax rate due to U.S. Tax Reform. During Fiscal 2018 as we completed our calculation of the impact of U.S. Tax Reform in accordance with Staff Accounting Bulletin No. 118, which provided us with up to one year to complete accounting for the impacts of U.S. Tax Reform, we did not recognize any material measurement period adjustments to the provisional amounts recorded in Fiscal 2017.

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 1,		February 2,
	2020		2019
Deferred Tax Assets:
Inventories	$	13,067	$	13,210
Accrued compensation and benefits		8,977		8,096
Receivable allowances and reserves		993		890
Operating lease liabilities		85,969		3,371
Operating loss and other carry-forwards		3,171		2,785
Other, net		1,546		4,122
Deferred tax assets		113,723		32,474
Deferred Tax Liabilities:
Operating lease assets		(82,186)		—
Depreciation and amortization		(8,076)		(11,917)
Acquired intangible assets		(34,019)		(32,913)
Deferred tax liabilities		(124,281)		(44,830)
Valuation allowance		(5,213)		(5,103)
Net deferred tax liability	$	(15,771)	$	(17,459)

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 1,		February 2,
	2020		2019
Assets:
Deferred tax assets	$	769	$	952
Liabilities:
Deferred tax liabilities		(16,540)		(18,411)
Net deferred tax liability	$	(15,771)	$	(17,459)