XML 25 R14.htm IDEA: XBRL DOCUMENT v3.21.2
Income Taxes
 6 Months Ended
Jul. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income TaxesOn March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted and signed into law. The CARES Act includes a number of income tax changes, including, but not limited to, (i) permitting taxpayers a five-year carryback period for net operating losses ("NOLs") arising in tax years beginning after December 31, 2017 and before January 1, 2021, (ii) temporarily suspending the 80% of taxable income limitation on the use of NOLs for tax years beginning before January 1, 2021, thereby permitting corporate taxpayers to use NOLs to fully offset taxable income in these years regardless of the year in which the NOL arose, (iii) accelerating Alternative Minimum Tax ("AMT") credit carryover refunds, (iv) temporarily increasing the allowable business interest deduction from 30% to 50% of adjusted taxable income, and (v) providing a technical correction for depreciation as relates to the definition of qualified improvement property.
The following table summarizes the Company’s income tax expense (benefit) and effective tax rates for the thirteen and twenty-six weeks ended July 31, 2021 and August 1, 2020 (dollars in thousands):
Thirteen Weeks EndedTwenty-Six Weeks Ended
July 31, 2021August 1, 2020July 31, 2021August 1, 2020
Income (loss) before income taxes$85,097 $32,642 $147,807 $(39,411)
Income tax expense (benefit)$20,256 $3,061 $33,370 $(18,410)
Effective tax rate23.8 %9.4 %22.6 %46.7 %
The effective tax rates for the thirteen and twenty-six weeks ended July 31, 2021 and August 1, 2020 were based on the Company’s forecasted annualized effective tax rates and were adjusted for discrete items that occurred within the periods presented. The effective tax rate for the thirteen weeks ended July 31, 2021 was higher than the thirteen weeks ended August 1, 2020 primarily due to discrete items, which includes the impact of the CARES Act in the thirteen weeks ended August 1, 2020 and the impact of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting" with respect to the requirement to recognize excess income tax benefits or deficiencies as income tax benefit or expense in the Company's consolidated statements of operations. The effective tax rate for the twenty-six weeks ended July 31, 2021 was lower than the twenty-six weeks ended August 1, 2020 primarily due to discrete items, which includes the impact of the CARES Act in the twenty-six weeks ended August 1, 2020 and the impact of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting."
The Company had no material accrual for uncertain tax positions or interest and/or penalties related to income taxes on the Company’s balance sheets as of July 31, 2021, January 30, 2021, or August 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 the thirteen and twenty-six weeks ended July 31, 2021 or August 1, 2020.
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.