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Income Taxes | 12 Months Ended
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Jan. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | 10. Income Taxes The components of income (loss) before income taxes are as follows:
|  | Fiscal Year Ended January 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Domestic |  | $ | 389,059 |  |  | $ | 13,103 |  |  | $ | 233,742 |
Foreign |  |  | 15,572 |  |  |  | (9,590 | ) |  |  | 5,978 |
|  | $ | 404,631 |  |  | $ | 3,513 |  |  | $ | 239,720 |
The components of the provision for income tax expense/(benefit) are as follows:
|  | Fiscal Year Ended January 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 75,533 |  |  | $ | 11,623 |  |  | $ | 50,507 |
State |  |  | 18,972 |  |  |  | 894 |  |  |  | 13,525 |
Foreign |  |  | 2,205 |  |  |  | 4,030 |  |  |  | 6,141 |
|  | $ | 96,710 |  |  | $ | 16,547 |  |  | $ | 70,173 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (4,151 | ) |  | $ | (7,801 | ) |  | $ | (3,260 | )
State |  |  | 498 |  |  |  | (3,325 | ) |  |  | (772 | )
Foreign |  |  | 958 |  |  |  | (3,144 | ) |  |  | 5,483 |
|  |  | (2,695 | ) |  |  | (14,270 | ) |  |  | 1,451 |
|  | $ | 94,015 |  |  | $ | 2,277 |  |  | $ | 71,624 |
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, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Expected provision at statutory U.S. federal tax rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State and local income taxes, net of federal tax benefit |  |  | 3.8 |  |  |  | (88.1 | ) |  |  | 4.2 |
Foreign taxes |  |  | (1.8 | ) |  |  | 56.9 |  |  |  | 4.0 |
Uncertain tax positions |  |  | 0.1 |  |  |  | 28.8 |  |  |  | 0.5 |
Stock compensation |  |  | (0.1 | ) |  |  | 36.1 |  |  |  | 0.2 |
Tax rate changes |  |  | 0.1 |  |  |  | 8.5 |  |  |  | 0.1 |
Prior year adjustments |  |  | 0.1 |  |  |  | 15.7 |  |  |  | (0.3 | )
Federal tax credits |  |  | (0.2 | ) |  |  | (16.0 | ) |  |  | (0.2 | )
Nondeductible expenses |  |  | 0.1 |  |  |  | 8.6 |  |  |  | 0.2 |
Tax exempt income |  |  | — |  |  |  | (3.4 | ) |  |  | — |
Other |  |  | 0.1 |  |  |  | (3.3 | ) |  |  | 0.2 |
Effective tax rate |  |  | 23.2 | % |  |  | 64.8 | % |  |  | 29.9 | %
The variance in percentages for the components of the effective tax rate for fiscal 2021 as compared to fiscal 2022 and 2020 are primarily due to the ratio of foreign taxable losses to global taxable profits and lower income before income taxes in fiscal 2021. The significant components of deferred tax assets and liabilities as of January 31, 2022 and 2021 are as follows:
|  | January 31, |
|  | 2022 |  |  | 2021 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Prepaid expense |  | $ | (3,132 | ) |  | $ | (2,191 | )
Depreciation |  |  | (50,674 | ) |  |  | (34,476 | )
Operating lease right-of-use assets |  |  | (233,299 | ) |  |  | (250,292 | )
Other temporary differences |  |  | (365 | ) |  |  | (906 | )
Gross deferred tax liabilities |  |  | (287,470 | ) |  |  | (287,865 | )
Deferred tax assets: |  |  |  |  |  |  |  |
Operating lease liabilities |  |  | 272,953 |  |  |  | 296,413 |
Deferred rent |  |  | 14,176 |  |  |  | 6,685 |
Inventory |  |  | 19,896 |  |  |  | 18,279 |
Accounts receivable |  |  | 1,252 |  |  |  | 1,930 |
Net operating loss carryforwards |  |  | 20,873 |  |  |  | 11,359 |
Tax uncertainties |  |  | 1,135 |  |  |  | 1,611 |
Accrued salaries and benefits |  |  | 25,249 |  |  |  | 16,711 |
Income tax credits |  |  | 4,714 |  |  |  | 4,494 |
Other temporary differences |  |  | 28,000 |  |  |  | 15,548 |
Gross deferred tax assets, before valuation allowances |  |  | 388,248 |  |  |  | 373,030 |
Valuation allowances |  |  | (30,852 | ) |  |  | (18,689 | )
Net deferred tax assets |  | $ | 69,926 |  |  | $ | 66,476 |
Net deferred tax assets are attributed to the jurisdictions in which the Company operates. As of January 31, 2022 and 2021, respectively, $38,718 and $34,037 were attributable to U.S. federal, $19,190 and $19,084 were attributed to state jurisdictions and $12,018 and $13,355 were attributed to foreign jurisdictions. As of January 31, 2022, certain non-U.S. subsidiaries of the Company had net operating loss carryforwards for tax purposes of approximately $7,710 that expire from 2022 through 2031 and approximately $65,193 that do not expire. Certain U.S. subsidiaries of the Company had state net operating loss carryforwards for tax purposes of approximately $31,304 that expire from 2022 through 2042 and approximately $11,218 that do not expire. Certain U.S. subsidiaries of the Company had state credit carryforwards for tax purposes of approximately $5,925 that expire from 2022 through 2031. As of January 31, 2022, the Company had full and partial valuation allowances for certain foreign and state 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. As of January 31, 2022, approximately $153,700 of cash and cash equivalents were held by the Company’s non-U.S. subsidiaries for which no deferred taxes have been provided. The Company has accumulated undistributed earnings generated by foreign subsidiaries of approximately $430,495. Since such earnings have previously been subject to the one-time deemed repatriation transition tax required by the U.S. Tax Cuts and Jobs Act or other U.S. tax requirements on undistributed foreign earnings, any additional taxes due with respect to such earnings or the excess of the amount for financial reporting over the tax basis of our foreign investments would generally be limited to foreign and state taxes. The Company continues to believe that foreign earnings are indefinitely reinvested excluding earnings that have previously been subject to the one-time deemed repatriation transition tax required by the U.S. Tax Cuts and Jobs Act. With respect to outside basis differences in all other non-U.S. subsidiaries, the Company expects that either (i) such basis differences will not reverse in the foreseeable future, or (ii) such basis differences will reverse in a tax-neutral manner. 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 |  | 2022 |  |  | 2021 |  |  | 2020 |
Balance at the beginning of the period |  | $ | 22,259 |  |  | $ | 21,924 |  |  | $ | 21,406 |
Increases in tax positions for prior years |  |  | 28 |  |  |  | 476 |  |  |  | 661 |
Decreases in tax positions for prior years |  |  | (3,178 | ) |  |  | (51 | ) |  |  | (101 | )
Increases in tax positions for current year |  |  | 249 |  |  |  | 41 |  |  |  | 125 |
Settlements |  |  | — |  |  |  | — |  |  |  | — |
Lapse in statute of limitations |  |  | (413 | ) |  |  | (131 | ) |  |  | (167 | )
Balance at the end of the period |  | $ | 18,945 |  |  | $ | 22,259 |  |  | $ | 21,924 |
The total amount of net unrecognized tax benefits that, if recognized, would impact the Company’s effective tax rate were $21,288 and $23,497 as of January 31, 2022 and 2021, 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, 2022, 2021 and 2020, the Company recognized expense/(benefit) of $630, $950 and $1,038, respectively, related to interest and penalties. The Company accrued $3,440 and $2,810 for the payment of interest and penalties as of January 31, 2022 and 2021, respectively. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Company is under audit in certain state and foreign jurisdictions. Certain federal, foreign and state jurisdictions are subject to audit from fiscal 2010 to 2021. It is possible that a state or foreign examination may be resolved within 12 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 12 months by a range of zero to $911.

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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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