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Income Taxes | 12 Months Ended
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Jan. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income tax expense (benefit) is summarized as follows (in thousands):
| Year Ended |  | Year Ended |  | Year Ended
| Jan 31, 2015 |  | Feb 1, 2014 |  | Feb 2, 2013
Federal: |  |  |  |  |
Current | $ | 37,802 |  |  | $ | 61,239 |  |  | $ | 42,365 |
Deferred | (8,566 | ) |  | (20,294 | ) |  | 10,943 |
State: |  |  |  |  |
Current | 6,242 |  |  | 6,202 |  |  | 5,853 |
Deferred | (3,262 | ) |  | (1,627 | ) |  | 1,494 |
Foreign: |  |  |  |  |
Current | 9,756 |  |  | 25,611 |  |  | 30,775 |
Deferred | 3,852 |  |  | 4,117 |  |  | 7,698 |
Total | $ | 45,824 |  |  | $ | 75,248 |  |  | $ | 99,128 |
Except where required by U.S. tax law, no provision was made for U.S. income taxes on the undistributed earnings of the foreign subsidiaries as the Company intends to utilize those earnings in the foreign operations for an indefinite period of time or repatriate such earnings only when tax-effective to do so. That portion of accumulated undistributed earnings of foreign subsidiaries as of January 31, 2015 and February 1, 2014 was approximately $772 million and $747 million, respectively. Actual income tax expense differs from expected income tax expense obtained by applying the statutory federal income tax rate to earnings before income taxes as follows (in thousands):
| Year Ended |  | Year Ended |  | Year Ended
| Jan 31, 2015 |  | Feb 1, 2014 |  | Feb 2, 2013
Computed “expected” tax expense | $ | 50,053 |  |  | $ | 81,536 |  |  | $ | 98,215 |
State taxes, net of federal benefit | 1,937 |  |  | 2,974 |  |  | 4,776 |
Incremental foreign taxes less than federal statutory tax rate | (2,603 | ) |  | (10,107 | ) |  | (13,307 | )
Net tax settlements | — |  |  | — |  |  | 12,832 |
Unrecognized tax benefit | 471 |  |  | 6,856 |  |  | 147 |
Prior year tax adjustments | (2,955 | ) |  | (3,489 | ) |  | (2,300 | )
Other | (1,079 | ) |  | (2,522 | ) |  | (1,235 | )
Total | $ | 45,824 |  |  | $ | 75,248 |  |  | $ | 99,128 |
Total income tax expense (benefit) was allocated as follows (in thousands):
| Year Ended |  | Year Ended |  | Year Ended
| Jan 31, 2015 |  | Feb 1, 2014 |  | Feb 2, 2013
Operations | $ | 45,824 |  |  | $ | 75,248 |  |  | $ | 99,128 |
Stockholders’ equity | (660 | ) |  | 3,673 |  |  | 3,703 |
Total income taxes | $ | 45,164 |  |  | $ | 78,921 |  |  | $ | 102,831 |
The tax effects of the components of other comprehensive income (loss) were allocated as follows (in thousands):
| Year Ended |  | Year Ended |  | Year Ended
| Jan 31, 2015 |  | Feb 1, 2014 |  | Feb 2, 2013
Derivative financial instruments designated as cash flow hedges | $ | 721 |  |  | $ | 237 |  |  | $ | (1,056 | )
Marketable securities | (61 | ) |  | (4 | ) |  | 85 |
Defined benefit plans | (2,335 | ) |  | 2,963 |  |  | 2,855 |
Total income tax expense (benefit) | $ | (1,675 | ) |  | $ | 3,196 |  |  | $ | 1,884 |
Total earnings before income tax expense and noncontrolling interests were comprised of the following (in thousands):
| Year Ended |  | Year Ended |  | Year Ended
| Jan 31, 2015 |  | Feb 1, 2014 |  | Feb 2, 2013
Domestic operations | $ | 98,036 |  |  | $ | 140,153 |  |  | $ | 169,755 |
Foreign operations | 44,972 |  |  | 92,806 |  |  | 110,859 |
Earnings before income tax expense and noncontrolling interests | $ | 143,008 |  |  | $ | 232,959 |  |  | $ | 280,614 |
The tax effects of temporary differences that give rise to significant portions of current and non-current deferred tax assets and deferred tax liabilities as of January 31, 2015 and February 1, 2014 are presented below (in thousands):
| Jan 31, 2015 |  | Feb 1, 2014
Deferred tax assets: |  |  |
Defined benefit plans | $ | 23,901 |  |  | $ | 21,716 |
Deferred income | 15,953 |  |  | 11,261 |
Rent expense | 12,672 |  |  | 14,986 |
Deferred compensation | 12,416 |  |  | 10,692 |
Lease incentives | 6,179 |  |  | 8,180 |
Net operating losses | 6,122 |  |  | 2,133 |
Bad debt reserve | 5,175 |  |  | 9,526 |
Uniform capitalization | 1,927 |  |  | 2,162 |
Excess of book over tax depreciation/amortization | 1,667 |  |  | — |
Accrued bonus | 1,342 |  |  | 2,954 |
Other | 15,453 |  |  | 13,111 |
Total deferred tax assets | 102,807 |  |  | 96,721 |
Deferred tax liabilities: |  |  |
Goodwill amortization | (3,627 | ) |  | (3,693 | )
Excess of tax over book depreciation/amortization | — |  |  | (9,310 | )
Other | (3,872 | ) |  | (492 | )
Valuation allowance | (7,501 | ) |  | (3,853 | )
Net deferred tax assets | $ | 87,807 |  |  | $ | 79,373 |
Included above as of January 31, 2015 and February 1, 2014, were $19.1 million and $24.4 million for current deferred tax assets, respectively, and $68.7 million and $55.0 million for non-current deferred tax assets, respectively. Based on the historical earnings of the Company and projections of future taxable earnings, management believes it is more likely than not that the results of operations will not generate sufficient taxable earnings to realize net deferred tax assets. Therefore, the Company has recorded a valuation allowance of $7.5 million, which is an in crease of $3.6 million from the prior year. As of January 31, 2015, the Company’s U.S. and certain retail operations in Asia, Europe and Brazil had net operating loss carryforwards of $40.1 million and capital loss carryforwards of $0.2 million. These are comprised of $7.1 million of operating loss carryforwards that have an unlimited carryforward life, $10.7 million of foreign operating loss carryforwards that expire between fiscal 2016 and fiscal 2024, $22.3 million of state operating loss carryforwards that expire between fiscal 2016 and fiscal 2035 and $0.2 million of U.S. capital loss carryforwards that expire in fiscal 2019. Based on the historical earnings of these operations, management believes that it is more likely than not that some of the operations will not generate sufficient earnings or capital gains to utilize all of the net operating loss and the capital loss. As of January 31, 2015 and February 1, 2014, the Company had a valuation allowance of $5.4 million and $0.7 million, respectively, related to its net operating loss carryforwards. The Company accrues an amount for its estimate of additional income tax liability which the Company, more likely than not, could incur as a result of the ultimate resolution of income tax audits (“uncertain tax positions”). The Company reviews and updates the estimates used in the accrual for uncertain tax positions as more definitive information becomes available from taxing authorities, upon completion of tax audits, upon expiration of statutes of limitation, or upon occurrence of other events. A reconciliation of the beginning and ending amount of gross unrecognized tax benefit (excluding interest and penalties) is as follows (in thousands):
| Year Ended |  | Year Ended |  | Year Ended
| Jan 31, 2015 |  | Feb 1, 2014 |  | Feb 2, 2013
Beginning balance | $ | 10,900 |  |  | $ | 4,527 |  |  | $ | 16,045 |
Additions: |  |  |  |  |
Tax positions related to the prior year | 4,224 |  |  | — |  |  | — |
Tax positions related to the current year | 1,722 |  |  | 7,501 |  |  | — |
Reductions: |  |  |  |  |
Tax positions related to the prior year | (55 | ) |  | (1,128 | ) |  | (568 | )
Tax positions related to the current year | (91 | ) |  | — |  |  | — |
Settlements | (599 | ) |  | — |  |  | (10,950 | )
Expiration of statutes of limitation | (2,461 | ) |  | — |  |  | — |
Ending balance | $ | 13,640 |  |  | $ | 10,900 |  |  | $ | 4,527 |
The amount of unrecognized tax benefit as of January 31, 2015 includes $12.6 million (net of federal benefit on state issues) which, if ultimately recognized, may reduce our future annual effective tax rate. As of January 31, 2015 and February 1, 2014, the Company had $14.4 million and $11.4 million, respectively, of aggregate accruals for uncertain tax positions, including penalties and interest. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company included interest and penalties related to uncertain tax positions of $0.3 million in net income tax expense for fiscal 2015. There were minimal interest and penalties related to uncertain tax positions included in net income tax expense for fiscal 2014. Net income tax expense for fiscal 2013 included a benefit from interest and penalties related to uncertain tax positions of $0.9 million. Total interest and penalties related to uncertain tax positions was $0.7 million and $0.5 million for the years ended January 31, 2015 and February 1, 2014, respectively. The Company and its subsidiaries are subject to U.S. federal and foreign income tax as well as income tax of multiple state and foreign local jurisdictions. From time-to-time, the Company is subject to routine income tax audits on various tax matters around the world in the ordinary course of business. Although the Company has substantially concluded all U.S. federal, foreign, state and foreign local income tax matters for years through fiscal 2009, as of January 31, 2015, several income tax audits were underway in multiple jurisdictions for various periods after fiscal 2009. The Company does not believe that the resolution of open matters will have a material effect on the Company’s financial position or liquidity. Italian Tax Settlement In January 2013, to avoid a potentially long and costly litigation process, the Company reached an agreement with the Italian tax authority regarding an ongoing audit of one of the Company’s Italian subsidiaries. The agreement covered fiscal years 2008 through 2013. As a result of the agreement during the fourth quarter of fiscal 2013, the Company recorded a settlement charge of $12.8 million (including penalty and interest and net of related offsets in other tax jurisdictions) in excess of prior uncertain tax position reserves of $11.7 million. The settlement amount was payable to the Italian tax authority in quarterly installments through fiscal 2015. The Company was advised by its Italian counsel that tax audits like this one in Italy involving proposed income adjustments greater than €2 million are automatically referred for review by a public prosecutor who may seek to pursue charges or close the matter, and that resulting criminal charges, if any, would be instituted against individuals rather than against the affected companies under Italian law. Consistent with this process, a review proceeding by a prosecutor in Italy was initiated with respect to one current and two former members of the Guess European management team and the Company’s former President (as the signing officer for certain Italian tax returns covering the relevant periods). In July 2013, the matter was closed based on the prosecutor’s recommendation.

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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 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 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=6907707&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=6907707&loc=d3e32537-109319 Reference 6: 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=6907707&loc=d3e32559-109319 + Details
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