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Income Taxes | 9 Months Ended
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Oct. 30, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | 7. Income Taxes Income tax expense was $17.9 million during the third quarter of Fiscal 2021 compared with $15.1 million during the third quarter of Fiscal 2020. The effective tax rate for the third quarter of Fiscal 2021 was 56.8% compared with 65.3% during the third quarter of Fiscal 2020. The higher income tax rate in the prior year is primarily due to the reversal of income tax benefit recorded in the first two quarters of Fiscal 2020 related to the net operating loss carry-back as permitted under the CARES Act. The decrease in income tax rate this year was partially offset by the disallowance of certain debt extinguishment costs related to partial settlement of the Convertible Notes during the third quarter of Fiscal 2021. Income tax expense was $79.8 million during the nine month period ended October 30, 2021, compared with income tax benefit of $253.3 million during the nine month period ended October 31, 2020. The effective tax rate for the nine month period ended October 30, 2021 was 21.7%, compared with 40.5% during the nine month period ended October 31, 2020. The decrease in the effective tax rate was primarily due to the Company’s pretax loss in the prior year and applying various provisions of the CARES Act, namely the benefit related to the carryback of federal NOLs in Fiscal 2020 to earlier tax years with higher tax rates. Net deferred taxes are as follows:
|  | (in thousands) |
|  | October 30, |  |  | January 30, |  |  | October 31, |
|  | 2021 |  |  | 2021 |  |  | 2020 |
Deferred tax asset |  | $ | 4,119 |  |  | $ | 4,422 |  |  | $ | 4,596 |
Deferred tax liability |  |  | 211,710 |  |  |  | 199,850 |  |  |  | 204,745 |
Net deferred tax liability |  | $ | 207,591 |  |  | $ | 195,428 |  |  | $ | 200,149 |
Net deferred tax assets relate to Puerto Rico deferred balances that have a future net benefit for tax purposes. Net deferred tax liabilities primarily relate to intangible assets and depreciation expense where the Company has a future obligation for tax purposes. As of October 30, 2021, the Company had a deferred tax asset related to net operating losses of $26.0 million, inclusive of $25.7 million related to state net operating losses that expire at various dates between 2022 and 2040, as well as $0.3 million related to Puerto Rico net operating losses that will expire in 2025. As of October 30, 2021, the Company had a deferred tax asset related to tax credit carry-forwards of $7.6 million, inclusive of $6.6 million of state tax credit carry-forwards, which will begin to expire in 2023, and $1.0 million of deferred tax assets recorded for Puerto Rico alternative minimum tax credits that have an indefinite life. As of October 30, 2021, January 30, 2021 and October 31, 2020, valuation allowances amounted to $12.1 million, $13.0 million and $12.4 million, respectively, related to state and Puerto Rico net operating losses and state tax credit carry-forwards. The Company believes that it is more likely than not that this portion of state and Puerto Rico net operating losses and state tax credit carry-forwards will not be realized.

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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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