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Income Taxes | 12 Months Ended
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Feb. 01, 2015
Income Taxes | Note D: Income Taxes The components of earnings before income taxes, by tax jurisdiction, are as follows:
|  | Fiscal Year Ended |
In thousands |  | Feb. 1, 2015 (52 Weeks) |  |  | Feb. 2, 2014 (52 Weeks) |  |  | Feb. 3, 2013 (53 Weeks) |
United States |  | $ | 482,739 |  |  | $ | 448,764 |  |  | $ | 401,542 |
Foreign |  |  | 19,464 |  |  |  | 3,918 |  |  |  | 8,414 |
Total earnings before income taxes |  | $ | 502,203 |  |  | $ | 452,682 |  |  | $ | 409,956 |
The provision for income taxes consists of the following: |
|  | Fiscal Year Ended |
In thousands |  | Feb. 1, 2015 (52 Weeks) |  |  | Feb. 2, 2014 (52 Weeks) |  |  | Feb. 3, 2013 (53 Weeks) |
Current |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 157,227 |  |  | $ | 173,686 |  |  | $ | 136,742 |
State |  |  | 31,959 |  |  |  | 25,748 |  |  |  | 22,072 |
Foreign |  |  | 4,411 |  |  |  | 2,690 |  |  |  | 3,441 |
Total current |  |  | 193,597 |  |  |  | 202,124 |  |  |  | 162,255 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 2,719 |  |  |  | (26,324 | ) |  |  | (7,827 | )
State |  |  | (2,547 | ) |  |  | (1,277 | ) |  |  | (1,202 | )
Foreign |  |  | (420 | ) |  |  | (743 | ) |  |  | (0 | )
Total deferred |  |  | (248 | ) |  |  | (28,344 | ) |  |  | (9,029 | )
Total provision |  | $ | 193,349 |  |  | $ | 173,780 |  |  | $ | 153,226 |
We have historically elected not to provide for U.S. income taxes with respect to the undistributed earnings of our foreign subsidiaries as we intended to utilize those earnings in our foreign operations for an indefinite period of time. As of February 1, 2015 the accumulated undistributed earnings of all foreign subsidiaries were approximately $43,300,000 and are sufficient to support our anticipated future cash needs for our foreign operations. We currently intend to utilize those undistributed earnings for an indefinite period of time and will only repatriate such earnings when it is tax effective to do so. It is currently not practical to estimate the tax liability that might be payable if these foreign earnings were to be repatriated. A reconciliation of income taxes at the federal statutory corporate rate to the effective rate is as follows:
|  | Fiscal Year Ended |
|  | Feb. 1, 2015 (52 Weeks) |  |  | Feb. 2, 2014 (52 Weeks) |  |  | Feb. 3, 2013 (53 Weeks) |
Federal income taxes at the statutory rate |  |  | 35.0% |  |  |  | 35.0% |  |  |  | 35.0% |
State income tax rate |  |  | 4.0% |  |  |  | 3.7% |  |  |  | 3.3% |
Other |  |  | (0.5% | ) |  |  | (0.3% | ) |  |  | (0.9% | )
Effective tax rate |  |  | 38.5% |  |  |  | 38.4% |  |  |  | 37.4% |
Significant components of our deferred tax accounts are as follows:
In thousands |  |  |  | Feb. 1, 2015 |  |  | Feb. 2, 2014 |
Current: |  |  |  |  |  |  |  |  |  |
Compensation |  |  |  | $ | 15,968 |  |  | $ | 14,378 |
Merchandise inventories |  |  |  |  | 30,328 |  |  |  | 27,337 |
Accrued liabilities |  |  |  |  | 28,866 |  |  |  | 26,461 |
Customer deposits |  |  |  |  | 60,989 |  |  |  | 58,479 |
Prepaid catalog expenses |  |  |  |  | (12,753 | ) |  |  | (12,576 | )
Other |  |  |  |  | 7,220 |  |  |  | 7,407 |
Total current |  |  |  |  | 130,618 |  |  |  | 121,486 |
Non-current: |  |  |  |  |  |  |  |  |  |
Depreciation |  |  |  |  | (9,888 | ) |  |  | (4,216 | )
Deferred rent |  |  |  |  | 18,925 |  |  |  | 17,500 |
Deferred lease incentives |  |  |  |  | (37,098 | ) |  |  | (33,065 | )
Stock-based compensation |  |  |  |  | 19,857 |  |  |  | 28,948 |
Executive deferral plan |  |  |  |  | 5,437 |  |  |  | 5,699 |
Uncertainties |  |  |  |  | 7,061 |  |  |  | 4,378 |
Valuation allowance |  |  |  |  | (1,568 | ) |  |  | (1,048 | )
Other |  |  |  |  | 1,539 |  |  |  | (4,372 | )
Total non-current |  |  |  |  | 4,265 |  |  |  | 13,824 |
Total deferred tax assets, net |  |  |  | $ | 134,883 |  |  | $ | 135,310 |
The following table summarizes the activity related to our gross unrecognized tax benefits:
In thousands |  | Fiscal 2014 (52 Weeks) |  |  | Fiscal 2013 (52 Weeks) |  |  | Fiscal 2012 (53 Weeks) |
Balance at beginning of year |  | $ | 10,765 |  |  | $ | 8,990 |  |  | $ | 10,023 |
Increases related to current year tax positions |  |  | 3,093 |  |  |  | 3,351 |  |  |  | 2,188 |
Increases related to prior years’ tax positions |  |  | 2,007 |  |  |  | 328 |  |  |  | 936 |
Decreases related to prior years’ tax positions |  |  | (138 | ) |  |  | (42 | ) |  |  | (171 | )
Settlements |  |  | (1,144 | ) |  |  | (170 | ) |  |  | (1,069 | )
Lapses in statute of limitations |  |  | (224 | ) |  |  | (1,692 | ) |  |  | (2,917 | )
Balance at end of year |  | $ | 14,359 |  |  | $ | 10,765 |  |  | $ | 8,990 |
As of February 1, 2015, we had $14,359,000 of gross unrecognized tax benefits, of which $9,602,000 would, if recognized, affect the effective tax rate. We accrue interest and penalties related to unrecognized tax benefits in the provision for income taxes. As of February 1, 2015 and February 2, 2014, our accruals for the payment of interest and penalties totaled $2,412,000 and $2,231,000, respectively, primarily related to interest. Due to the potential resolution of state issues, it is reasonably possible that the balance of our gross unrecognized tax benefits could decrease within the next twelve months by a range of $0 to $1,900,000. We file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Internal Revenue Service (IRS) had concluded examination of our U.S. federal income tax returns for years prior to fiscal 2011 without any significant adjustments. Substantially all material state, local and foreign income tax examinations have been concluded through fiscal 2004.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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