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Income Taxes (Tables) | 12 Months Ended
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Jan. 28, 2023
Income Tax Disclosure [Abstract] |
Components of Income (Loss) Before Income Taxes | The components of income (loss) before income taxes are:
|  | For the Years Ended |
|  | January 28, |  |  | January 29, |  |  | January 30, |
(In thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
U.S. |  | $ | 138,023 |  |  | $ | 520,952 |  |  | $ | (294,208 | )
Foreign |  |  | 40,471 |  |  |  | 37,970 |  |  |  | 1,935 |
Total |  | $ | 178,494 |  |  | $ | 558,922 |  |  | $ | (292,273 | )
Components of Deferred Tax Assets and Liabilities | The significant components of the Company’s deferred tax assets and liabilities are as follows:
|  | January 28, |  |  | January 29, |
(in thousands) |  | 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |  |
Operating lease ROU assets |  | $ | 353,277 |  |  | $ | 380,117 |
Net Operating Loss |  |  | 27,604 |  |  |  | 27,643 |
Accruals not currently deductible |  |  | 11,442 |  |  |  | 11,645 |
Deferred compensation |  |  | 9,498 |  |  |  | 8,429 |
Disallowed business interest expense |  |  | 8,353 |  |  |  | — |
Other long-term assets |  |  | 8,201 |  |  |  | 8,208 |
State tax credits |  |  | 7,968 |  |  |  | 7,546 |
Inventories |  |  | 7,082 |  |  |  | 5,220 |
Gift card liability |  |  | 4,871 |  |  |  | 3,974 |
Capital Loss |  |  | 4,210 |  |  |  | 4,213 |
Capitalized research and development expenses |  |  | 4,120 |  |  |  | — |
Employee compensation and benefits |  |  | 2,896 |  |  |  | 20,521 |
Foreign tax credits |  |  | 2,761 |  |  |  | 2,982 |
General Business Credits |  |  | 1,586 |  |  |  | 751 |
Allowance for Doubtful Accounts |  |  | 911 |  |  |  | 3,201 |
Other |  |  | 744 |  |  |  | 1,032 |
Gross deferred tax assets |  |  | 455,524 |  |  |  | 485,482 |
Valuation allowance |  |  | (25,902 | ) |  |  | (25,628 | )
Total deferred tax assets |  |  | 429,622 |  |  |  | 459,854 |
Deferred tax liabilities: |  |  |  |  |  |
Operating lease liabilities |  | $ | (287,061 | ) |  | $ | (308,299 | )
Property and equipment |  |  | (100,958 | ) |  |  | (87,192 | )
Prepaid expenses |  |  | (2,988 | ) |  |  | (2,215 | )
Goodwill |  |  | (1,996 | ) |  |  | (2,045 | )
Other |  |  | (136 | ) |  |  | (552 | )
2025 Notes |  |  | — |  |  |  | (15,384 | )
Total deferred tax liabilities |  | $ | (393,139 | ) |  | $ | (415,687 | )
Total deferred tax assets, net |  | $ | 36,483 |  |  | $ | 44,167 |
Components of Provision (Benefit) for Income Taxes | Significant components of the provision (benefit) for income taxes are as follows:
|  | For the Years Ended |
|  | January 28, |  |  | January 29, |  |  | January 30, |
(In thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | (986 | ) |  | $ | 107,493 |  |  | $ | (59,080 | )
Foreign taxes |  |  | 19,701 |  |  |  | 19,671 |  |  |  | 7,443 |
State |  |  | 3,594 |  |  |  | 24,979 |  |  |  | 3,528 |
Total current |  |  | 22,309 |  |  |  | 152,143 |  |  |  | (48,109 | )
Deferred: |  |  |  |  |  |  |  |  |
Federal |  | $ | 26,758 |  |  | $ | (12,637 | ) |  | $ | (17,286 | )
Foreign taxes |  |  | (1,374 | ) |  |  | (1,284 | ) |  |  | (4,622 | )
State |  |  | 5,665 |  |  |  | 1,071 |  |  |  | (12,982 | )
Total deferred |  |  | 31,049 |  |  |  | (12,850 | ) |  |  | (34,890 | )
Provision (Benefit) for income taxes |  | $ | 53,358 |  |  | $ | 139,293 |  |  | $ | (82,999 | )
Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to our unrecognized tax benefits:
|  | For the Years Ended |
|  | January 28, |  |  | January 29, |  |  | January 30, |
(In thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
Unrecognized tax benefits, beginning of the year balance |  | $ | 3,259 |  |  | $ | 2,563 |  |  | $ | 2,781 |
Increases in current period tax positions |  |  | 681 |  |  |  | 251 |  |  |  | 602 |
Increases in tax positions of prior periods |  |  | — |  |  |  | 688 |  |  |  | 1 |
Settlements |  |  | (454 | ) |  |  | — |  |  |  | (450 | )
Lapse of statute of limitations |  |  | (277 | ) |  |  | (93 | ) |  |  | (289 | )
Decreases in tax positions of prior periods |  |  | (731 | ) |  |  | (150 | ) |  |  | (82 | )
Unrecognized tax benefits, end of the year balance |  | $ | 2,478 |  |  | $ | 3,259 |  |  | $ | 2,563 |
Reconciliation Between Statutory Federal Income Tax Rate and Effective Income Tax Rate | A reconciliation between the statutory federal income tax rate and the effective income tax rate follows:
|  | For the Years Ended |
|  | January 28, |  |  | January 29, |  |  | January 30, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Federal income tax rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State income taxes, net of federal income tax effect |  |  | 3.6 |  |  |  | 4.1 |  |  |  | 3.1 |
Foreign rate differential |  |  | 0.9 |  |  |  | 0.6 |  |  |  | 0.3 |
International provisions of Tax Act |  |  | 0.1 |  |  |  | (0.5 | ) |  |  | 0.0 |
Rate differential on CARES Act NOL carryback |  |  | 0.0 |  |  |  | 0.0 |  |  |  | 8.1 |
Valuation allowance changes, net |  |  | 0.5 |  |  |  | 0.2 |  |  |  | (2.6 | )
Non-deductible executive compensation |  |  | 2.0 |  |  |  | 1.3 |  |  |  | (2.1 | )
Change in unrecognized tax benefits |  |  | (0.1 | ) |  |  | 0.1 |  |  |  | (0.1 | )
Share Based Payments |  |  | (0.2 | ) |  |  | (0.8 | ) |  |  | 0.4 |
Note Exchanges |  |  | 1.4 |  |  |  | 0.0 |  |  |  | 0.0 |
Other |  |  | 0.7 |  |  |  | (1.1 | ) |  |  | 0.3 |
|  |  | 29.9 | % |  |  | 24.9 | % |  |  | 28.4 | %

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