XML 86 R71.htm IDEA: XBRL DOCUMENT v3.8.0.1
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Feb. 03, 2018
Jan. 28, 2017
Feb. 03, 2018
Jan. 28, 2017
Jan. 30, 2016
Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance [1]     $ (1,210)    
Income tax expense [2]     74,172 $ 28,212 $ 42,464
Additional income tax expense resulting from enactment of Tax Reform $ 47,900   47,900    
Provisional charge for remeasurement of U.S. deferred tax assets as a result of the enactment of the Tax Reform 24,856   24,856    
Provisional charge for the estimated effects of the transitional tax on the deemed repatriation of foreign earnings as a result of the enactment of the Tax Reform 23,034   23,034    
Federal:          
Current     34,181 8,212 23,618
Deferred     21,595 (636) 4,038
State:          
Current     1,903 2,537 3,864
Deferred     217 (1,000) (296)
Foreign:          
Current     7,333 17,055 14,259
Deferred     8,943 2,044 (3,019)
Total [2]     74,172 28,212 42,464
Differences between actual income tax expense and expected income tax expense          
Computed “expected” tax expense     23,693 18,763 44,547
State taxes, net of federal benefit     1,675 999 2,320
Non-U.S. tax expense less than federal statutory tax rate [3]     (7,396) (1,539) (6,991)
Tax Reform - repatriation tax adjustment [4]     23,034 0 0
Tax Reform - deferred tax adjustment [4]     24,856 0 0
Cumulative valuation reserve   $ 6,830 0 [5] 6,830 [5] 0 [5]
Valuation reserve [6]     9,057 5,841 3,024
Unrecognized tax benefit     537 556 1,123
Share-based compensation [7]     1,309 0 0
Net tax settlements     0 1,894 0
Sale of minority interest investment     0 (2,316) 0
Estimated exit tax charge     0 1,911 0
Prior year tax adjustments     (88) (1,790) (2,944)
Non-deductible permanent difference     (3,224) (2,284) 1,295
Other     719 (653) 90
Total [2]     74,172 28,212 42,464
Allocation of total income tax expense (benefit)          
Operations [2]     74,172 28,212 42,464
Stockholders’ equity [2]     (3,173) 1,782 4,668
Total income tax expense     70,999 29,994 47,132
Tax effects of the components of other comprehensive income (loss)          
Derivative financial instruments designated as cash flow hedges     (2,738) (864) 559
Marketable securities     0 6 (7)
Defined benefit plans     (435) (21) 2,972
Total income tax expense (benefit) [8]     (3,173) (879) 3,524
Total earnings before income tax expense and noncontrolling interests          
Domestic operations     39,112 32,944 90,141
Foreign operations     31,159 20,666 37,138
Earnings before income tax expense     70,271 53,610 $ 127,279
Deferred tax assets:          
Net operating losses 19,859 13,524 19,859 13,524  
Defined benefit plans 13,155 20,642 13,155 20,642  
Deferred compensation 10,721 12,987 10,721 12,987  
Excess of book over tax depreciation/amortization 10,704 9,018 10,704 9,018  
Rent expense 7,651 13,672 7,651 13,672  
Deferred income 7,141 6,213 7,141 6,213  
Bad debt reserve 2,529 2,124 2,529 2,124  
Lease incentives 1,814 5,545 1,814 5,545  
Uniform capitalization 974 1,900 974 1,900  
Other 30,703 28,265 30,703 28,265  
Total deferred tax assets 105,251 113,890 105,251 113,890  
Deferred tax liabilities:          
Goodwill amortization (2,303) (3,654) (2,303) (3,654)  
Excess of tax over book depreciation/amortization (135) (189) (135) (189)  
Other (4,517) (4,544) (4,517) (4,544)  
Valuation allowance (32,601) (23,255) (32,601) (23,255)  
Net deferred tax assets [9] 65,695 82,248 65,695 82,248  
Net deferred tax liabilities 2,700 $ 500 2,700 $ 500  
Increase in valuation allowance     9,300    
Accounting Standards Update 2016-09          
Income tax expense     1,309    
Foreign:          
Total     1,309    
Differences between actual income tax expense and expected income tax expense          
Total     1,309    
Allocation of total income tax expense (benefit)          
Operations     1,309    
Retained Earnings | Accounting Standards Update 2018-02          
Cumulative adjustment reclassified to retained earnings from adoption of new accounting guidance     1,210    
Accrued expenses          
Current portion of transition tax $ 1,900   $ 1,900    
Minimum | Switzerland and Korea          
Range of jurisdictional effective tax rates that are lower than the U.S. rates     8.00%    
Maximum | Switzerland and Korea          
Range of jurisdictional effective tax rates that are lower than the U.S. rates     20.00%    
[1] During the fourth quarter of fiscal 2018, the Company early adopted authoritative guidance which addresses certain stranded income tax effects in accumulated other comprehensive income (loss) resulting from the Tax Reform enacted in December 2017. As a result, the Company recorded a cumulative adjustment to increase retained earnings by $1.2 million with a corresponding reduction to accumulated other comprehensive income (loss) related to the Company’s Supplemental Executive Retirement Plan and its interest rate swap designated as a cash flow hedge based in the U.S.
[2] During fiscal 2018, the Company adopted authoritative guidance which requires all income tax effects of stock awards (resulting from an increase or decrease in the fair value of an award from grant date to the vesting date) to be recognized in the income statement when the awards vest or are settled. This is a change from previous guidance that required such activity to be recorded in paid-in capital within stockholders’ equity. As a result, the Company recorded tax shortfalls of approximately $1.3 million in the Company’s income tax expense during fiscal 2018.
[3] The jurisdictional location of pre-tax income (loss) may represent a significant component of the Company’s effective tax rate as income tax rates outside the U.S. are generally lower than the U.S. statutory income tax rate. Furthermore, the impact of changes in the jurisdictional location of pre-tax income (loss) on the Company’s effective tax rate will be greater at lower levels of consolidated pre-tax income (loss). These amounts exclude the impact of net changes in valuation allowances, audit and other adjustments related to the Company’s non-U.S. operations, as they are reported separately in the appropriate corresponding line items in the table above. The impact on the Company’s effective tax rate was primarily related to the Company’s Swiss and Korean subsidiaries which have jurisdictional effective tax rates which range from 8% to 20% lower than the U.S. rates in effect for the periods presented.
[4] During fiscal 2018, the Company recognized additional tax expense resulting from the enactment of the Tax Reform to account for the estimated effects of the transitional tax on the deemed repatriation of foreign earnings and reduced deferred tax assets due to lower future U.S. corporate tax rates.
[5] Amounts represent valuation reserves resulting from jurisdictions where there have been cumulative net operating losses, limiting the Company’s ability to consider other subjective evidence to continue to recognize the existing deferred tax assets.
[6] Amounts relate primarily to valuation reserves on non-cumulative net operating losses or other deferred tax assets arising during the respective period.
[7] During fiscal 2018, the Company adopted authoritative guidance which requires all income tax effects of stock awards (resulting from an increase or decrease in the fair value of an award from grant date to the vesting date) to be recognized in the income statement when the awards vest or are settled. This is a change from previous guidance that required such activity to be recorded in paid-in capital within stockholders’ equity.
[8] During the fourth quarter of fiscal 2018, the Company early adopted authoritative guidance which addresses certain stranded income tax effects in accumulated other comprehensive income (loss) resulting from the Tax Reform enacted in December 2017. As a result, the Company recorded a cumulative adjustment to increase retained earnings by $1.2 million with a corresponding reduction to accumulated other comprehensive income (loss) related to the Company’s Supplemental Executive Retirement Plan and its interest rate swap designated as a cash flow hedge based in the U.S. The impact from this reclassification on accumulated other comprehensive income (loss) has been excluded from the amounts provided in this table.
[9] As of February 3, 2018, amount includes net deferred tax liabilities of $2.7 million recorded in other long-term liabilities in the Company’s consolidated balance sheet. There were $0.5 million net deferred tax liabilities recorded in other long-term liabilities in the Company’s consolidated balance sheet at January 28, 2017.