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Taxes on Earnings | 12 Months Ended
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Jan. 28, 2023
Income Tax Disclosure [Abstract] |
Taxes on Earnings | Taxes on Earnings The provision for income taxes consisted of the following:
($000) |  | 2022 |  | 2021 |  | 2020
Current |  |  |  |  |  |
Federal |  | $ | 338,479 |  |  | $ | 442,152 |  |  | $ | 44,164 |
State |  | 57,552 |  |  | 78,024 |  |  | 4,563 |
|  | 396,031 |  |  | 520,176 |  |  | 48,727 |
Deferred |  |  |  |  |  |
Federal |  | 74,062 |  |  | 21,103 |  |  | (27,487) |
State |  | 5,355 |  |  | (5,328) |  |  | (325) |
|  | 79,417 |  |  | 15,775 |  |  | (27,812) |
Total |  | $ | 475,448 |  |  | $ | 535,951 |  |  | $ | 20,915 |
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:
|  | 2022 |  | 2021 |  | 2020
Federal income taxes at the statutory rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes (net of federal benefit) |  | 3.2 | % |  | 3.2 | % |  | 4.1 | %
Hiring tax credits |  | (0.5) | % |  | (0.5) | % |  | (5.4) | %
Other, net |  | 0.2 | % |  | — | % |  | — | %
Total |  | 23.9 | % |  | 23.7 | % |  | 19.7 | %
The components of deferred taxes at January 28, 2023 and January 29, 2022 are as follows:
($000) |  | 2022 |  | 2021 |
Deferred Tax Assets |  |  |  |  |
Accrued liabilities |  | $ | 31,303 |  |  | $ | 34,211 |  |
Deferred compensation |  | 40,201 |  |  | 38,685 |  |
Stock-based compensation |  | 46,139 |  |  | 45,840 |  |
State taxes and credits |  | 15,755 |  |  | 18,501 |  |
Employee benefits |  | 24,715 |  |  | 28,430 |  |
Operating lease liabilities |  | 820,219 |  |  | 801,186 |  |
Other |  | 7,976 |  |  | 9,632 |  |
Gross Deferred Tax Assets |  | 986,308 |  |  | 976,485 |  |
Less: Valuation allowance |  | — |  |  | (1,931) |  |
Deferred Tax Assets |  | 986,308 |  |  | 974,554 |  |
Deferred Tax Liabilities |  |  |  |  |
Depreciation and amortization |  | (372,497) |  |  | (293,065) |  |
Merchandise inventory |  | (24,493) |  |  | (27,699) |  |
Supplies |  | (13,239) |  |  | (12,280) |  |
Operating lease assets |  | (781,277) |  |  | (764,557) |  |
Other |  | (11,861) |  |  | (14,595) |  |
Deferred Tax Liabilities |  | (1,203,367) |  |  | (1,112,196) |  |
Net Deferred Tax Liabilities |  | $ | (217,059) |  |  | $ | (137,642) |  |
At the end of fiscal 2022 and 2021, the Company’s state tax credit carryforwards for income tax purposes were approximately $10.0 million and $12.0 million, respectively. The state tax credit carryforwards will begin to expire in fiscal 2023. The changes in amounts of unrecognized tax benefits (gross of federal tax benefits and excluding interest and penalties) at fiscal 2022, 2021, and 2020 are as follows:
($000) |  | 2022 |  | 2021 |  | 2020
Unrecognized tax benefits - beginning of year |  | $ | 60,547 |  |  | $ | 60,240 |  |  | $ | 59,887 |
Gross increases: |  |  |  |  |  |
Tax positions in current period |  | 10,132 |  |  | 10,381 |  |  | 12,310 |
Tax positions in prior period |  | 672 |  |  | 1,494 |  |  | 2,860 |
Gross decreases: |  |  |  |  |  |
Tax positions in prior periods |  | (6,808) |  |  | (1,795) |  |  | (2,624) |
Lapse of statutes of limitations |  | (9,989) |  |  | (9,757) |  |  | (9,861) |
Settlements |  | (1,010) |  |  | (16) |  |  | (2,332) |
Unrecognized tax benefits - end of year |  | $ | 53,544 |  |  | $ | 60,547 |  |  | $ | 60,240 |
At the end of fiscal 2022, 2021, and 2020, the reserves for unrecognized tax benefits were $60.6 million, $68.1 million, and $67.9 million inclusive of $7.1 million, $7.6 million, and $7.7 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, $48.7 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 $13.5 million. The Company is open to audit by the Internal Revenue Service under the statute of limitations for fiscal years 2019 through 2022. The Company’s state income tax returns are generally open to audit under the various statutes of limitations for fiscal years 2018 through 2022. 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.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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