Income Taxes

12 Months Ended

Jan. 30, 2021

Deferred income taxes reflect the net tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon generation of future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible.

As of January 30, 2021, no valuation allowance has been provided for net deferred tax assets as management believes that it is more likely than not that the Company will realize all deferred tax assets as of January 30, 2021.

The components of the income tax expense are as follows (in thousands):


	Fiscal Year
	2020		2019		2018
Current:
Federal	$	2,276	$	25,069	$	33,297
State	7,235		6,602		8,315
	9,511		31,671		41,612
Deferred:
Federal	21,954		13,487		2,000
State	(1,759)		1,355		(1,450)
	20,195		14,842		550
Income tax expense	$	29,706	$	46,513	$	42,162

The reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows:


	Fiscal Year
	2020		2019		2018
Statutory federal tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	2.8		2.8		2.8

Other (1)	(4.4)		(2.8)		(1.8)
	19.4	%	21.0	%	22.0	%

(1)Other line includes excess tax benefits relating to share-based payment accounting.

The effective tax rate for fiscal 2020 compared to fiscal 2019 was primarily driven by discrete items, which includes the impact of the CARES Act, partially offset by a reduction of the benefit of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting" with respect to the requirements to recognize excess income tax benefits or deficiencies as income tax benefit or expense in the consolidated statements of operations rather than as additional paid-in capital in the consolidated balance sheets. The effective tax rate for fiscal 2019 compared to fiscal 2018 was primarily driven by discrete items, which includes the impact of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting."

The tax effects of temporary differences that give rise to deferred tax assets and liabilities are (in thousands):


	January 30, 2021		February 1, 2020

Deferred tax assets:
Net operating loss carryforwards	$	1,139	$	—
Inventories	10,626		13,182

Deferred revenue	851		1,255
Accrued bonus	1,128		1,007
Deferred rent	—		—
Operating lease liabilities	287,351		242,432
Other	4,662		5,208
Deferred tax assets	305,757		263,084
Deferred tax liabilities:
Property and equipment	(81,129)		(55,953)
Operating lease assets	(252,541)		(214,935)
Other	(998)		(912)
Deferred tax liabilities	(334,668)		(271,800)
	$	(28,911)	$	(8,716)

The Company had no material accrual for uncertain tax positions or interest or penalties related to income taxes on the Company’s balance sheets as of January 30, 2021 and February 1, 2020, and has not recognized any material uncertain tax positions or interest and/or penalties related to income taxes in the consolidated statements of operations for fiscal 2020, fiscal 2019, or fiscal 2018.

The Company files a federal income tax return as well as state tax returns. The Company’s U.S. federal income tax returns for the fiscal years ended February 3, 2018 and thereafter remain subject to examination by the U.S. Internal Revenue Service. State returns are filed in various state jurisdictions, as appropriate, with varying statutes of limitation and remain subject to examination for varying periods up to three years to four years depending on the state.