XML 62 R39.htm IDEA: XBRL DOCUMENT
v3.24.1

INCOME TAXES (Tables) | 12 Months Ended
--- | ---
Feb. 03, 2024
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign | Components of Income Taxes Income before income taxes consisted of:
(in thousands) | Fiscal 2023 |  | Fiscal 2022 |  | Fiscal 2021
Domestic (1) | $ | 526,967 |  |  | $ | 152,608 |  |  | $ | 283,793 |
Foreign | (42,668) |  |  | (85,592) |  |  | 25,181 |
Income before income taxes | $ | 484,299 |  |  | $ | 67,016 |  |  | $ | 308,974 |
(1) Includes intercompany charges to foreign affiliates for management fees, cost-sharing, royalties and interest and excludes a portion of foreign income that is currently includable on the U.S. federal income tax return.
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense consisted of:
(in thousands) | Fiscal 2023 |  | Fiscal 2022 |  | Fiscal 2021
Current: |  |  |  |  |
Federal | $ | 113,765 |  |  | $ | 25,577 |  |  | $ | 51,321 |
State | 32,299 |  |  | 10,371 |  |  | 14,061 |
Foreign | 7,565 |  |  | 9,183 |  |  | 5,448 |
Total current | $ | 153,629 |  |  | $ | 45,131 |  |  | $ | 70,830 |
Deferred: |  |  |  |  |
Federal | $ | (9,160) |  |  | $ | 4,586 |  |  | $ | (15,401) |
State | (1,196) |  |  | 122 |  |  | (8,995) |
Foreign | 5,613 |  |  | 6,792 |  |  | (7,526) |
Total deferred | (4,743) |  |  | 11,500 |  |  | (31,922) |
Income tax expense | $ | 148,886 |  |  | $ | 56,631 |  |  | $ | 38,908 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation between the statutory federal income tax rate and the effective tax rate is as follows:
| Fiscal 2023 |  | Fiscal 2022 |  | Fiscal 2021
U.S. Federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income tax, net of U.S. federal income tax effect | 4.9 |  |  | 12.4 |  |  | 4.4 |
Net change in valuation allowances | 3.4 |  |  | 30.7 |  |  | (19.7) |
Foreign taxation of non-U.S. operations (1) | 1.4 |  |  | 16.2 |  |  | 3.5 |
Internal Revenue Code Section 162(m) | 1.4 |  |  | 4.6 |  |  | 1.6 |
Additional U.S. taxation of non-U.S.operations | 0.1 |  |  | 1.3 |  |  | 0.6 |
Audit and other adjustments to prior years' accruals, net | (0.2) |  |  | 5.9 |  |  | 4.7 |
Net income attributable to noncontrolling interests | (0.3) |  |  | (2.4) |  |  | (0.5) |
Credit for increasing research activities | (0.5) |  |  | (2.5) |  |  | (0.6) |
Tax benefit recognized on share-based compensation expense (2) | (0.5) |  |  | (2.6) |  |  | (1.3) |
Other items, net | — |  |  | (0.1) |  |  | 0.1 |
Other statutory tax rate and law changes | — |  |  | — |  |  | (1.2) |
Total | 30.7 | % |  | 84.5 | % |  | 12.6 | %
(1)U.S. branch operations in Puerto Rico were subject to tax at the full U.S. tax rates. As a result, income from these operations do not create reconciling items. (2)Refer to Note 13, “SHARE-BASED COMPENSATION,” for details on discrete income tax benefits and charges related to share-based compensation awards during Fiscal 2023, Fiscal 2022, and Fiscal 2021.
Schedule of Deferred Tax Assets and Liabilities | The effect of temporary differences which gives rise to deferred income tax assets (liabilities) were as follows:
(in thousands) | February 3, 2024 |  | January 28, 2023
Deferred income tax assets: |  |  |
Operating lease liabilities | $ | 211,863 |  |  | $ | 237,699 |
Intangibles, foreign step-up in basis | 62,464 |  |  | 61,030 |
Net operating losses (NOL), tax credit and other carryforwards | 84,872 |  |  | 68,874 |
Accrued expenses and reserves | 35,866 |  |  | 27,435 |
Deferred compensation | 15,717 |  |  | 16,023 |
Inventory | 5,518 |  |  | 5,475 |
Rent | 1,874 |  |  | 1,502 |
Other | 1,683 |  |  | 946 |
Valuation allowances | (146,973) |  |  | (130,622) |
Total deferred income tax assets | $ | 272,884 |  |  | $ | 288,362 |
Deferred income tax liabilities: |  |  |
Operating lease right-of-use assets | $ | (192,020) |  |  | $ | (205,827) |
Property and equipment and intangibles | (7,472) |  |  | (14,273) |
Prepaid expenses | (1,832) |  |  | (1,634) |
Store supplies | (2,100) |  |  | (1,933) |
Undistributed profits of non-U.S. subsidiaries | (1,271) |  |  | (1,111) |
U.S. offset to foreign deferred tax assets, excluding intangibles, foreign step-up in basis (1) | (187) |  |  | (175) |
Other | (781) |  |  | (428) |
Total deferred income tax liabilities | $ | (205,663) |  |  | $ | (225,381) |
Net deferred income tax assets (1) | $ | 67,221 |  |  | $ | 62,981 |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible | The amount of uncertain tax positions as of February 3, 2024, January 28, 2023 and January 29, 2022, which would impact the Company’s effective tax rate if recognized and a reconciliation of the beginning and ending amounts of uncertain tax positions, excluding accrued interest and penalties, are as follows:
(in thousands) | Fiscal 2023 |  | Fiscal 2022 |  | Fiscal 2021
Uncertain tax positions, beginning of the year | $ | 2,293 |  |  | $ | 1,114 |  |  | $ | 995 |
Gross addition for tax positions of the current year | 572 |  |  | 339 |  |  | 490 |
Gross addition (reduction) for tax positions of prior years | 75 |  |  | 907 |  |  | (136) |
Reductions of tax positions of prior years for: |  |  |  |  |
Lapses of applicable statutes of limitations | (70) |  |  | (66) |  |  | (81) |
Settlements during the period | (119) |  |  | (1) |  |  | (154) |
Uncertain tax positions, end of year | $ | 2,751 |  |  | $ | 2,293 |  |  | $ | 1,114 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 9 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-9 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 2 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 12 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-12 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of unrecognized tax benefits for which a material change is reasonably possible in the next twelve months, typically including the nature of the uncertainty, the event(s) that could cause a material change, and an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made. An unrecognized tax benefit is the difference between a tax position taken in a tax return and the amounts recognized in the financial statements for which it is more likely than not, based on the technical merits of the position, that the tax position will not be sustained upon examination. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15 + Details
Name: | us-gaap_SummaryOfPositionsForWhichSignificantChangeInUnrecognizedTaxBenefitsIsReasonablyPossibleTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration