Income Taxes (Tables)

12 Months Ended

Jan. 30, 2021

Income Tax Disclosure [Abstract]

Income tax provision (benefit)

The provision for income taxes consists of the following: 

	Year Ended
	January 30,		February 1,		February 2,
(in millions)	2021		2020		2019
Current taxes:
Federal	$	279.5	$	210.1	$	245.6
State	87.4		52.5		47.8
Foreign	0.2		0.1		0.4
Total current taxes	367.1		262.7		293.8
Deferred taxes:
Federal	32.6		39.2		0.3
State	(3.8)		(5.6)		(12.3)
Foreign	2.0		(24.6)		—
Total deferred taxes	30.8		9.0		(12.0)
Provision for income taxes	$	397.9	$	271.7	$	281.8

Federal statutory tax rate reconciliation

A reconciliation of the statutory U.S. federal income tax (benefit) rate and the effective tax rate follows: 

	Year Ended
	January 30, 2021		February 1, 2020		February 2, 2019
Statutory U.S. federal income tax (benefit) rate	21.0	%	21.0	%	(21.0)	%
Effect of:
State and local income taxes, net of federal income tax benefit	3.2		3.7		3.0
Non-deductible executive compensation	0.4		—		—
Incremental tax expense (benefit) of exercises/vesting of equity-based compensation	0.2		(0.4)		0.1
State tax reserve release	(0.5)		—		—
Work Opportunity Tax Credit	(1.6)		(2.7)		(2.0)
Goodwill impairment	—		6.0		43.7
Deferred tax rate change	—		0.1		—
Change in valuation allowance	—		(2.2)		0.3
Tax Cuts and Jobs Act	—		—		(1.3)
Other, net	0.2		(0.8)		(1.3)
Effective tax rate	22.9	%	24.7	%	21.5	%

Components of Deferred Tax Assets and Liabilities

Significant components of our net deferred tax assets (liabilities) follow:

(in millions)	January 30, 2021		February 1, 2020
Deferred tax assets:
Operating lease liabilities	$	1,658.4	$	1,621.8
Accrued expenses	72.9		26.0
Net operating losses, interest expense and credit carryforwards	95.5		102.2
Accrued compensation expense	47.2		31.6
State tax election	17.4		19.3
Other	3.2		2.4
Total deferred tax assets	1,894.6		1,803.3
Valuation allowance	(16.8)		(18.5)
Deferred tax assets, net	1,877.8		1,784.8
Deferred tax liabilities:
Property and equipment	(410.5)		(304.3)
Operating lease right-of-use assets	(1,587.2)		(1,550.1)
Other intangibles	(840.4)		(852.2)
Inventory	(4.8)		(14.4)
Prepaids	(25.2)		(24.1)
Total deferred tax liabilities	(2,868.1)		(2,745.1)
Deferred income taxes, net	$	(990.3)	$	(960.3)

Reconciliation of Unrecognized Tax Benefits

The following is a reconciliation of our total gross unrecognized tax benefits:

(in millions)	January 30, 2021		February 1, 2020
Beginning Balance	$	28.9	$	35.4
Additions, based on tax positions related to current year	1.2		0.9
Additions for tax positions of prior years	3.4		4.8
Lapses in statutes of limitation	(10.9)		(12.2)
Ending balance	$	22.6	$	28.9