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Income Taxes | 12 Months Ended
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Jan. 30, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of earnings before income taxes, by tax jurisdiction, are as follows:
| For the Fiscal Year Ended
(In thousands) | January 30, 2022 |  | January 31, 2021 |  | February 2, 2020
United States | $ | 1,280,438 |  |  | $ | 773,317 |  |  | $ | 353,215 |
Foreign | 170,813 |  |  | 121,149 |  |  | 103,806 |
Total | $ | 1,451,251 |  |  | $ | 894,466 |  |  | $ | 457,021 |
The provision for income taxes consists of the following:
| For the Fiscal Year Ended
(In thousands) | January 30, 2022 |  | January 31, 2021 |  | February 2, 2020
Current |  |  |  |  |
Federal | $ | 234,638 |  |  | $ | 171,821 |  |  | $ | 76,873 |
State | 61,056 |  |  | 39,498 |  |  | 14,205 |
Foreign | 26,685 |  |  | 15,494 |  |  | 12,438 |
Total Current | $ | 322,379 |  |  | $ | 226,813 |  |  | $ | 103,516 |
Deferred |  |  |  |  |
Federal | $ | 5,896 |  |  | $ | (7,575) |  |  | $ | (606) |
State | (741) |  |  | (5,997) |  |  | (870) |
Foreign | (2,620) |  |  | 511 |  |  | (1,081) |
Total Deferred | $ | 2,535 |  |  | $ | (13,061) |  |  | $ | (2,557) |
Total provision | $ | 324,914 |  |  | $ | 213,752 |  |  | $ | 100,959 |
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. We are permanently reinvested with respect to unremitted earnings in Canada. A reconciliation of income taxes at the federal statutory corporate rate to the effective rate is as follows:
| For the Fiscal Year Ended
(In thousands) | January 30, 2022 |  | January 31, 2021 |  | February 2, 2020
Federal income taxes at the statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income tax rate | 4.1 | % |  | 3.9 | % |  | 2.9 | %
Officer’s compensation under Sec.162(m) | 2.0 | % |  | 1.1 | % |  | 1.0 | %
Deferred true up | (0.1 | %) |  | (0.6 | %) |  | (1.3 | %)
Change in uncertain tax positions | (0.5 | %) |  | 0.2 | % |  | 0.5 | %
Rate differential | (0.6 | %) |  | (1.1 | %) |  | (1.8 | %)
Credits | (0.2 | %) |  | (0.2 | %) |  | (0.7 | %)
Stock-based compensation | (2.9 | %) |  | (0.2 | %) |  | 0.3 | %
Other | (0.4 | %) |  | (0.2 | %) |  | 0.2 | %
Total | 22.4 | % |  | 23.9 | % |  | 22.1 | %
Significant components of our deferred income tax accounts are as follows:
(In thousands) | January 30, 2022 |  | January 31, 2021
Deferred tax assets (liabilities) |  |  |
Operating lease liabilities | $ | 321,649 |  |  | $ | 319,599 |
Compensation | 27,069 |  |  | 20,852 |
Merchandise inventories | 23,513 |  |  | 20,631 |
Gift cards | 21,519 |  |  | 19,345 |
Accrued liabilities | 17,919 |  |  | 13,451 |
Stock-based compensation | 11,879 |  |  | 9,926 |
Executive deferred compensation | 10,476 |  |  | 8,647 |
State taxes | 7,362 |  |  | 7,460 |
Loyalty rewards | 5,246 |  |  | 9,609 |
Federal and state net operating loss | 2,552 |  |  | 2,609 |
Operating lease right-of-use assets | (285,764) |  |  | (283,856) |
Property and equipment | (76,643) |  |  | (54,724) |
Deferred lease incentives | (28,808) |  |  | (31,672) |
Other | 57 |  |  | (317) |
Valuation allowance | (2,760) |  |  | (2,819) |
Total deferred tax assets, net | $ | 55,266 |  |  | $ | 58,741 |
We had net state operating loss carry-forwards as of January 30, 2022. A valuation allowance has been provided against certain state net operating loss 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:
| For the Fiscal Year Ended
(In thousands) | January 30, 2022 |  | January 31, 2021 |  | February 2, 2020
Beginning Balance | $ | 38,696 |  |  | $ | 36,638 |  |  | $ | 35,209 |
Increases related to current year tax positions | 8,573 |  |  | 4,593 |  |  | 3,438 |
Increases for tax positions for prior years | 1,738 |  |  | 848 |  |  | 1,405 |
Decrease for tax positions for prior years | (82) |  |  | (437) |  |  | (308) |
Settlements | — |  |  | — |  |  | — |
Lapse in statute of limitations | (15,313) |  |  | (2,946) |  |  | (3,106) |
Ending Balance | $ | 33,612 |  |  | $ | 38,696 |  |  | $ | 36,638 |
As of January 30, 2022, we had $33,612,000 of gross unrecognized tax benefits, of which $28,090,000 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 30, 2022 and January 31, 2021, our accruals for the payment of interest and penalties totaled $5,723,000 and $8,225,000, 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 $3,300,000. 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 2018 to 2021. Substantially all material states, local and foreign jurisdictions’ statutes of limitations are closed for taxable years prior to 2018.

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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=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 http://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 http://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 http://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 http://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 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 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 http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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