XML 36 R15.htm IDEA: XBRL DOCUMENT
v3.25.1

Taxes on Earnings | 12 Months Ended
--- | ---
Feb. 01, 2025
Income Tax Disclosure [Abstract] |
Taxes on Earnings | Taxes on Earnings The provision for income taxes consisted of the following:
($000) |  | 2024 |  | 2023 |  | 2022
Current |  |  |  |  |  |
Federal |  | $ | 580,253 |  |  | $ | 532,913 |  |  | $ | 338,479 |
State |  | 95,369 |  |  | 85,169 |  |  | 57,552 |
|  | 675,622 |  |  | 618,082 |  |  | 396,031 |
Deferred |  |  |  |  |  |
Federal |  | (7,016) |  |  | (16,265) |  |  | 74,062 |
State |  | (2,182) |  |  | (4,556) |  |  | 5,355 |
|  | (9,198) |  |  | (20,821) |  |  | 79,417 |
Total |  | $ | 666,424 |  |  | $ | 597,261 |  |  | $ | 475,448 |
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:
|  | 2024 |  | 2023 |  | 2022 |
Federal income taxes at the statutory rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | % |
State income taxes (net of federal benefit) and other, net |  | 3.2 | % |  | 3.2 | % |  | 2.9 | % |
Total |  | 24.2 | % |  | 24.2 | % |  | 23.9 | % |
The components of deferred taxes at February 1, 2025 and February 3, 2024 are as follows:
($000) |  | 2024 |  | 2023 |
Deferred Tax Assets |  |  |  |  |
Accrued liabilities |  | $ | 32,819 |  |  | $ | 35,010 |  |
Deferred compensation |  | 45,689 |  |  | 39,366 |  |
Stock-based compensation |  | 53,995 |  |  | 52,431 |  |
State taxes and credits |  | 20,534 |  |  | 18,494 |  |
Employee benefits |  | 29,549 |  |  | 33,764 |  |
Operating lease liabilities |  | 870,577 |  |  | 826,566 |  |
Other |  | 9,633 |  |  | 9,053 |  |
Gross Deferred Tax Assets |  | 1,062,796 |  |  | 1,014,684 |  |
Less: Valuation allowance |  | (583) |  |  | — |  |
Deferred Tax Assets |  | 1,062,213 |  |  | 1,014,684 |  |
Deferred Tax Liabilities |  |  |  |  |
Depreciation and amortization |  | (364,320) |  |  | (369,529) |  |
Merchandise inventory |  | (26,004) |  |  | (25,410) |  |
Supplies |  | (14,873) |  |  | (14,137) |  |
Operating lease assets |  | (826,425) |  |  | (785,608) |  |
Other |  | (17,631) |  |  | (16,238) |  |
Deferred Tax Liabilities |  | (1,249,253) |  |  | (1,210,922) |  |
Net Deferred Tax Liabilities |  | $ | (187,040) |  |  | $ | (196,238) |  |
At the end of fiscal 2024 and 2023, the Company’s state tax credit carryforwards for income tax purposes were approximately $9.6 million and $10.1 million, respectively. The state tax credit carryforwards will begin to expire in fiscal 2031. The Company has provided a valuation allowance of $0.6 million as of the end of fiscal 2024 for deferred tax assets related to state tax credits that are not expected to be realized. The changes in amounts of unrecognized tax benefits (gross of federal tax benefits and excluding interest and penalties) at fiscal 2024, 2023, and 2022 are as follows:
($000) |  | 2024 |  | 2023 |  | 2022
Unrecognized tax benefits - beginning of year |  | $ | 52,379 |  |  | $ | 53,544 |  |  | $ | 60,547 |
Gross increases: |  |  |  |  |  |
Tax positions in current period |  | 13,100 |  |  | 13,206 |  |  | 10,132 |
Tax positions in prior period |  | 1,163 |  |  | 2,295 |  |  | 672 |
Gross decreases: |  |  |  |  |  |
Tax positions in prior periods |  | (3,405) |  |  | (4,366) |  |  | (6,808) |
Lapse of statutes of limitations |  | (8,820) |  |  | (11,148) |  |  | (9,989) |
Settlements |  | (126) |  |  | (1,152) |  |  | (1,010) |
Unrecognized tax benefits - end of year |  | $ | 54,291 |  |  | $ | 52,379 |  |  | $ | 53,544 |
At the end of fiscal 2024, 2023, and 2022, the reserves for unrecognized tax benefits were $62.2 million, $58.6 million, and $60.6 million inclusive of $7.9 million, $6.2 million, and $7.1 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, $49.4 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 $7.7 million. The Company is open to audit by the Internal Revenue Service under the statute of limitations for fiscal years 2021 through 2024. The Company’s state income tax returns are generally open to audit under the various statutes of limitations for fiscal years 2020 through 2024. 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. In December 2021, the Organization for Economic Co-operation and Development released Pillar Two Model Rules (“Pillar Two”), which provide for a global minimum tax of 15% on multinational entities. Although the United States has not yet adopted Pillar Two, several countries enacted Pillar Two with an initial effective date of January 1, 2024. The impact of Pillar Two on the Company’s effective tax rate was not material for fiscal 2024. The Company will continue to monitor future Pillar Two legislation in relevant jurisdictions for any impacts to its effective tax rate.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration