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Income Taxes | 12 Months Ended
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Jan. 31, 2021
Income Taxes | Note D: Income Taxes The components of earnings before income taxes, by tax jurisdiction, are as follows:
In thousands |  | Fiscal 2020 (52 weeks) |  |  |  | Fiscal 2019 (52 weeks) |  |  | Fiscal 2018 (53 weeks) |
United States |  | $ | 773,317 |  |  |  | $ | 353,215 |  |  | $ | 333,594 |
Foreign |  |  | 121,149 |  |  |  |  | 103,806 |  |  |  | 95,653 |
Total |  | $ | 894,466 |  |  |  | $ | 457,021 |  |  | $ | 429,247 |
The provision for income taxes consists of the following:
In thousands |  | Fiscal 2020 (52 weeks) |  |  | Fiscal 2019 (52 weeks) |  |  | Fiscal 2018 (53 weeks) |
Current |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 171,821 |  |  | $ | 76,873 |  |  | $ | 43,745 |
State |  |  | 39,498 |  |  |  | 14,205 |  |  |  | 15,357 |
Foreign |  |  | 15,494 |  |  |  | 12,438 |  |  |  | 12,822 |
Total Current |  | $ | 226,813 |  |  | $ | 103,516 |  |  | $ | 71,924 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (7,575 | ) |  | $ | (606 | ) |  | $ | 23,507 |
State |  |  | (5,997 | ) |  |  | (870 | ) |  |  | 1,562 |
Foreign |  |  | 511 |  |  |  | (1,081 | ) |  |  | (1,430 | )
Total Deferred |  | $ | (13,061 | ) |  | $ | (2,557 | ) |  | $ | 23,639 |
Total provision |  | $ | 213,752 |  |  | $ | 100,959 |  |  | $ | 95,563 |
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. Under Internal Revenue Code section 965 of U.S. Tax Reform, we are deemed to have distributed all the post-1986 accumulated earnings of our foreign subsidiaries to the U.S. as of December 31, 2017. In light of the U.S. Tax Cuts and Jobs Act, we re-evaluated our permanent reinvestment assertion with respect to unremitted foreign earnings. As a result, we are now permanently reinvested with respect to our foreign earnings in Canada beginning in fiscal 2018. A reconciliation of income taxes at the federal statutory corporate rate to the effective rate is as follows:
|  |  | Fiscal 2020 (52 weeks) |  |  | Fiscal 2019 (52 weeks) |  |  | Fiscal 2018 (53 weeks) |
Federal income taxes at the statutory rate |  |  | 21.0% |  |  |  |  | 21.0% |  |  |  | 21.0% |
Re-measurement of deferred tax assets and liabilities |  |  | — |  |  |  |  | — |  |  |  | (2.2% | )
Transition tax |  |  | — |  |  |  |  | — |  |  |  | (0.6% | )
State income tax rate |  |  | 3.9% |  |  |  |  | 2.9% |  |  |  | 3.8% |
Officer’s compensation under Sec.162(m) |  |  | 1.1% |  |  |  |  | 1.0% |  |  |  | — |
Change in uncertain tax positions |  |  | 0.2% |  |  |  |  | 0.5% |  |  |  | 4.1% |
Deferred true u p |  |  | (0.6% | ) |  |  |  | (1.3% | ) |  |  | — |  |
Rate differential |  |  | (1.1% | ) |  |  |  | (1.8% | ) |  |  | (2.3% | )
Research and development credits |  |  | (0.2% | ) |  |  |  | (0.7% | ) |  |  | (2.1% | )
Other |  |  | (0.4% | ) |  |  |  | 0.5% |  |  |  | 0.6% |
Total |  |  | 23.9% |  |  |  |  | 22.1% |  |  |  | 22.3% |
Significant components of our deferred income tax accounts are as follows:
In thousands |  | Jan. 31, 2021 |  |  | Feb. 2, 2020 |
Deferred tax asset (liabilities ) |  |  |  |  |  |  |  |
Operating lease liabilities |  | $ | 319,599 |  |  | $ | 347,693 |
Compensatio n |  |  | 20,852 |  |  |  | 14,350 |
Merchandise inventories |  |  | 20,631 |  |  |  | 22,311 |
Gift cards |  |  | 19,345 |  |  |  | 19,520 |
Accrued liabilities |  |  | 13,451 |  |  |  | 8,440 |
Stock-based compensation |  |  | 9,926 |  |  |  | 9,860 |
Loyalty rewards |  |  | 9,609 |  |  |  | 5,252 |
Executive deferred compensation |  |  | 8,647 |  |  |  | 7,543 |
State taxe s |  |  | 7,460 |  |  |  | 7,546 |
Federal and state net operating loss |  |  | 2,609 |  |  |  | 3,443 |
Operating lease right-of-use assets |  |  | (283,856 | ) |  |  | (309,801 | )
Deferred lease incentives |  |  | (31,672 | ) |  |  | (46,701 | )
Property and equipment |  |  | (54,724 | ) |  |  | (37,309 | )
Other |  |  | (317 | ) |  |  | (3,277 | )
Valuation allowance |  |  | (2,819 | ) |  |  | (3,648 | )
Total deferred tax assets, net |  | $ | 58,741 |  |  | $ | 45,222 |
We had net state operating loss carry-forwards as of January 31, 2021. A valuation allowance has been provided against certain state net operating carry-forwards, as we do not expect to fully utilize the losses in future years. The following table summarizes the activity related to our gross unrecognized tax benefits:
In thousands |  | Fiscal 2020 |  |  | Fiscal 2019 |  |  | Fiscal 2018 |
Beginning Balance |  | $ | 36,638 |  |  | $ | 35,209 |  |  | $ | 18,051 |
Increases related to current year tax positions |  |  | 4,593 |  |  |  | 3,438 |  |  |  | 4,694 |
Increases for tax positions for prior years |  |  | 848 |  |  |  | 1,405 |  |  |  | 14,905 |
Decrease for tax positions for prior years |  |  | (437 | ) |  |  | (308 | ) |  |  | (1,279 | )
Settlements |  |  | — |  |  |  | — |  |  |  | (376 | )
Lapse in statute of limitations |  |  | (2,946 | ) |  |  | (3,106 | ) |  |  | (786 | )
Ending Balance |  | $ | 38,696 |  |  | $ | 36,638 |  |  | $ | 35,209 |
As of January 31, 202 1 , we had $38,696,000 of gross unrecognized tax benefits, of which $34,026,000 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 January 31, 2021 and February 2, 2020, our accruals for the payment of interest and penalties totaled $8,225,000 and $7,251,000 , respectively. Due to the potential resolution of tax 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 $15,800,000. We file income tax returns in the U.S. and foreign jurisdictions. We are subject to examination by the tax authorities in these jurisdictions. Our U.S. federal taxable years for which the statute of limitations has not expired are fiscal years 2017 to 2020. Substantially all material states, local and foreign jurisdictions’ statutes of limitations are closed for taxable years prior to 2017.

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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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://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 http://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 http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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