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Income Taxes | 12 Months Ended
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Jan. 30, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of the provision for income taxes were as follows (dollars in thousands):
| Fiscal Year Ended |
| January 30, 2021 |  | January 25, 2020 |  | January 26, 2019 |
Current: |  |  |  |  |  |
Federal | $ | 42,794 |  |  | $ | 8,389 |  |  | $ | 9,507 |  |
Foreign | (2) |  |  | (56) |  |  | 2,204 |  |
State | 10,273 |  |  | 3,727 |  |  | 4,897 |  |
| 53,065 |  |  | 12,060 |  |  | 16,608 |  |
Deferred: |  |  |  |  |  |
Federal | (24,380) |  |  | 7,257 |  |  | 8,706 |  |
Foreign | — |  |  | 568 |  |  | (446) |  |
State | (3,805) |  |  | 1,436 |  |  | 263 |  |
| (28,185) |  |  | 9,261 |  |  | 8,523 |  |
Provision for income taxes | $ | 24,880 |  |  | $ | 21,321 |  |  | $ | 25,131 |  |
In response to the COVID-19 pandemic, the Families First Coronavirus Response Act (“FFCR Act”) and the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) were signed into law on March 17, 2020 and on March 27, 2020, collectively the “Stimulus Bills.” The Stimulus Bills include tax provisions relating to refundable payroll tax credits, the deferral of employer’s social security payments, and modifications to net operating loss (“NOL”) carryback provisions. During fiscal 2021, we recognized an income tax benefit of $2.6 million from a tax loss carryback technical correction under the CARES Act. Our effective income tax rate differs from the statutory rate primarily due to the difference in income tax rates from state to state where work was performed, non-deductible and non-taxable items, and tax credits recognized. Additionally, during fiscal 2021, our effective tax rate was impacted by the $53.3 million goodwill impairment charge which was mostly non-deductible for income tax purposes, and the benefit from the $2.6 million tax loss carryback technical correction under the CARES Act. A reconciliation of the amount computed by applying our statutory income tax rate to pre-tax income to the total tax provision is as follows (dollars in thousands):
| Fiscal Year Ended |
| January 30, 2021 |  | January 25, 2020 |  | January 26, 2019 |
Statutory rate applied to pre-tax income | $ | 12,436 |  |  | $ | 16,495 |  |  | $ | 18,488 |  |
State taxes, net of federal tax benefit | 4,344 |  |  | 4,282 |  |  | 4,004 |  |
Tax Reform and related effects | (2,631) |  |  | 1,093 |  |  | — |  |
Non-deductible goodwill impairment | 10,411 |  |  | — |  |  | — |  |
Compensation limitation | 2,632 |  |  | 82 |  |  | 884 |  |
Non-deductible and non-taxable items, net | 808 |  |  | 1,351 |  |  | 1,549 |  |
Federal deficiency (benefit) of vesting and exercise of share-based awards | (436) |  |  | 875 |  |  | (200) |  |
Tax credits | (3,145) |  |  | (2,801) |  |  | (1,835) |  |
Change in accruals for uncertain tax positions | 1,189 |  |  | 891 |  |  | 464 |  |
Change in valuation allowance | 1 |  |  | 722 |  |  | 291 |  |
Effect of rates other than statutory | (4) |  |  | (197) |  |  | 1,537 |  |
Other items, net | (725) |  |  | (1,472) |  |  | (51) |  |
Provision for income taxes | $ | 24,880 |  |  | $ | 21,321 |  |  | $ | 25,131 |  |
During fiscal 2020 and 2019, our effective income tax rate differed from the statutory rate primarily as the result of the impact of non-deductible and non-taxable items, tax credits recognized, certain tax effects from the vesting and exercise of share-based awards, and impacts from Tax Reform. Deferred Income Taxes The deferred tax provision represents the change in the deferred tax assets and the liabilities representing the tax consequences of changes in the amount of temporary differences and changes in tax rates during the year. The significant components of deferred tax assets and liabilities consisted of the following (dollars in thousands):
| January 30, 2021 |  | January 25, 2020
Deferred tax assets: |  |  |
Insurance and other reserves | $ | 23,513 |  |  | $ | 22,489 |
Leases | 16,119 |  |  | 18,002 |
CARES Act tax deferral | 9,588 |  |  | — |
Stock-based compensation | 3,198 |  |  | 2,961 |
Allowance for doubtful accounts and reserves | 1,615 |  |  | 2,342 |
Net operating loss carryforwards | 1,401 |  |  | 1,487 |
Other | 3,238 |  |  | 3,098 |
Total deferred tax assets | 58,672 |  |  | 50,379 |
Valuation allowance | (1,139) |  |  | (1,126) |
Deferred tax assets, net of valuation allowance | $ | 57,533 |  |  | $ | 49,253 |
Deferred tax liabilities: |  |  |
Property and equipment | $ | 57,287 |  |  | $ | 76,385 |
Goodwill and intangibles | 30,395 |  |  | 29,563 |
Leases | 16,310 |  |  | 17,856 |
Other | 1,191 |  |  | 976 |
Deferred tax liabilities | $ | 105,183 |  |  | $ | 124,780 |
Net deferred tax liabilities | $ | 47,650 |  |  | $ | 75,527 |
The valuation allowance above reduces the deferred tax asset balances to the amount that we have determined is more likely than not to be realized. The valuation allowance primarily relates to immaterial foreign net operating loss carryforwards and immaterial state net operating loss carryforwards, which generally begin to expire in fiscal 2022 and fiscal 2023, respectively. Uncertain Tax Positions As of January 30, 2021 and January 25, 2020, we had total unrecognized tax benefits of $5.9 million and $4.7 million, respectively, resulting from uncertain tax positions. Our effective tax rate will be reduced during future periods if it is determined these unrecognized tax benefits are realizable. We had approximately $1.9 million and $1.7 million accrued for the payment of interest and penalties as of January 30, 2021 and January 25, 2020, respectively. Interest expense related to unrecognized tax benefits for the Company was not material during fiscal 2021, fiscal 2020, and fiscal 2019. A summary of unrecognized tax benefits is as follows (dollars in thousands):
| Fiscal Year Ended |
| January 30, 2021 |  | January 25, 2020 |  | January 26, 2019 |
Balance at beginning of year | $ | 4,742 |  |  | $ | 3,786 |  |  | $ | 3,322 |  |
Additions based on tax positions related to the fiscal year | 1,075 |  |  | 696 |  |  | 444 |  |
Additions based on tax positions related to prior years | 530 |  |  | 358 |  |  | 77 |  |
Reductions related to the expiration of statutes of limitation | (407) |  |  | (98) |  |  | (57) |  |
Balance at end of year | $ | 5,940 |  |  | $ | 4,742 |  |  | $ | 3,786 |  |

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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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