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Income Taxes | 12 Months Ended
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Jan. 31, 2017
Income Taxes | 9. Income Taxes The components of income before income taxes are as follows:
|  | Fiscal Year Ended January 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Domestic |  | $ | 297,347 |  |  | $ | 323,906 |  |  | $ | 328,479 |
Foreign |  |  | 40,752 |  |  |  | 26,125 |  |  |  | 34,971 |
|  | $ | 338,099 |  |  | $ | 350,031 |  |  | $ | 363,450 |
The components of the provision for income tax expense/(benefit) are as follows:
|  | Fiscal Year Ended January 31, |
| 2017 |  |  | 2016 |  |  | 2015 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 103,951 |  |  | $ | 84,274 |  |  | $ | 109,978 |
State |  |  | 15,130 |  |  |  | 21,391 |  |  |  | 19,665 |
Foreign |  |  | 5,699 |  |  |  | 6,215 |  |  |  | 3,600 |
|  | $ | 124,780 |  |  | $ | 111,880 |  |  | $ | 133,243 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (5,765 | ) |  | $ | 13,985 |  |  | $ | (3,295 | )
State |  |  | 1,029 |  |  |  | (1,218 | ) |  |  | 1,372 |
Foreign |  |  | (65 | ) |  |  | 895 |  |  |  | (298 | )
|  |  | (4,801 | ) |  |  | 13,662 |  |  |  | (2,221 | )
|  | $ | 119,979 |  |  | $ | 125,542 |  |  | $ | 131,022 |
The following table reflects the differences between the statutory U.S. federal income tax rate and the Company’s effective tax rate:
|  | Fiscal Year Ended January 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Expected provision at statutory U.S. federal tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
State and local income taxes, net of federal tax benefit |  |  | 3.1 |  |  |  | 3.7 |  |  |  | 3.7 |
Foreign taxes |  |  | (2.9 | ) |  |  | (2.0 | ) |  |  | (2.4 | )
Federal rehabilitation tax credit |  |  | 0.0 |  |  |  | (1.9 | ) |  |  | 0.0 |
Other |  |  | 0.3 |  |  |  | 1.1 |  |  |  | (0.3 | )
Effective tax rate |  |  | 35.5 | % |  |  | 35.9 | % |  |  | 36.0 | %
The significant components of deferred tax assets and liabilities as of January 31, 2017 and 2016 are as follows:
|  | January 31, |
|  | 2017 |  |  | 2016 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Prepaid expense |  | $ | (3,460 | ) |  | $ | (4,645 | )
Depreciation |  |  | (70,944 | ) |  |  | (66,936 | )
Other temporary differences |  |  | (2,024 | ) |  |  | (2,604 | )
Gross deferred tax liabilities |  |  | (76,428 | ) |  |  | (74,185 | )
Deferred tax assets: |  |  |  |  |  |  |  |
Deferred rent |  |  | 79,675 |  |  |  | 72,253 |
Inventory. |  |  | 9,760 |  |  |  | 11,031 |
Accounts receivable |  |  | 3,241 |  |  |  | 3,953 |
Net operating loss carryforwards |  |  | 2,859 |  |  |  | 4,941 |
Tax uncertainties |  |  | 1,949 |  |  |  | 2,972 |
Accrued salaries and benefits |  |  | 28,234 |  |  |  | 27,660 |
Income tax credits |  |  | 4,550 |  |  |  | 4,287 |
Other temporary differences |  |  | 5,512 |  |  |  | 7,896 |
Gross deferred tax assets, before valuation allowances |  |  | 135,780 |  |  |  | 134,993 |
Valuation allowances |  |  | (6,688 | ) |  |  | (6,560 | )
Net deferred tax assets |  | $ | 52,664 |  |  | $ | 54,248 |
Net deferred tax assets are attributed to the jurisdictions in which the Company operates. As of January 31, 2017 and 2016, respectively, $28,549 and $28,249 were attributable to U.S. federal, $14,798 and $17,391 were attributed to state jurisdictions and $9,317 and $8,608 were attributed to foreign jurisdictions. As of January 31, 2017, certain non-U.S. subsidiaries of the Company had net operating loss carryforwards for tax purposes of approximately $179 that expire from 2017 through 2022 and approximately $10,176 that do not expire. Certain U.S. subsidiaries of the Company had state net operating loss and credit carryforwards for tax purposes of approximately $5,841 that expire from 2021 through 2037 and $6,373 that expire from 2018 through 2031. As of January 31, 2017, the Company had a full valuation allowance for certain foreign net operating loss carryforwards and a partial valuation allowance against state credit carryforwards where it was uncertain the carryforwards would be utilized. The Company had no valuation allowance for certain other foreign and state net operating loss carryforwards where management believes it is more-likely-than-not the tax benefit of these carryforwards will be realized. In November 2015, the FASB issued an accounting standards update that requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet rather than separating deferred taxes into current and noncurrent amounts. The Company elected to early adopt this update and prospectively applied the update to deferred tax assets and liabilities as of January 31, 2016. The cumulative amount of the Company’s share of undistributed earnings of non-U.S. subsidiaries for which no deferred taxes have been provided was $293,160 as of January 31, 2017. These earnings are deemed to be permanently re-invested to finance growth programs. It is not practical to estimate the income tax liability that might be incurred if such earnings were remitted to the United States. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:
|  | January 31, |
Tax Benefit Reconciliation |  | 2017 |  |  | 2016 |  |  | 2015 |
Balance at the beginning of the period |  | $ | 7,838 |  |  | $ | 6,889 |  |  | $ | 4,835 |
Increases in tax positions for prior years |  |  | 21 |  |  |  | 4,053 |  |  |  | 2,518 |
Decreases in tax positions for prior years |  |  | (725 | ) |  |  | (891 | ) |  |  | (12 | )
Increases in tax positions for current year |  |  | 187 |  |  |  | 274 |  |  |  | 352 |
Settlements |  |  | (590 | ) |  |  | (1,590 | ) |  |  | (620 | )
Lapse in statute of limitations |  |  | (933 | ) |  |  | (897 | ) |  |  | (184 | )
Balance at the end of the period |  | $ | 5,798 |  |  | $ | 7,838 |  |  | $ | 6,889 |
The total amount of net unrecognized tax benefits that, if recognized, would impact the Company’s effective tax rate were $4,466 and $5,698 as of January 31, 2017 and 2016, respectively. The Company accrues interest and penalties related to unrecognized tax benefits in income tax expense in the Consolidated Statements of Income, which is consistent with the recognition of these items in prior reporting periods. During the years ended January 31, 2017, 2016 and 2015, the Company recognized expense/(benefit) of ($218), ($686) and $408, respectively, related to interest and penalties. The Company accrued $582 and $800 for the payment of interest and penalties as of January 31, 2017 and 2016, respectively. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. Certain federal, foreign and state jurisdictions are subject to audit from fiscal 2007 to 2016. It is possible that a state or foreign examination may be resolved within twelve months. Due to the potential for resolution of federal and foreign audit and state examinations, and the expiration of various statutes of limitation, it is possible that the Company’s gross unrecognized tax benefits balance may change within the next twelve months by a range of zero to $4,009.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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