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Income Taxes | 12 Months Ended
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Jan. 29, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The effective tax rate for fiscal 2022 was 21.0%, compared to 14.9% for fiscal 2021. The previous year tax provision includes higher excess tax benefits associated with share-based compensation and credits associated with the reversal of certain tax valuation allowances. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law. Intended to provide economic relief to those impacted by the COVID-19 pandemic, the CARES Act includes provisions, among others, allowing for the carryback of net operating losses generated in fiscal 2018, 2019 and 2020 and technical amendments regarding the expensing of qualified improvement property. The application of the technical amendments made by the CARES Act to qualified improvement property resulted in additional tax net operating losses which were carried back from fiscal 2020 and fiscal 2019 to years with a higher federal corporate income tax rate. During the second quarter of fiscal 2021, the Company filed the fiscal 2020 carryback claims for federal tax refunds of approximately $57,400, of which approximately $33,200 were received during fiscal 2022. Due to government delays in processing these claims, the remainder of these funds are expected to be received in fiscal 2023. The following table sets forth our income tax provision:
| January 29, 2023 |  | January 30, 2022 |  | January 31, 2021
Current provision: |  |  |  |  |
Federal | $ | 2,366 |  |  | $ | 21,899 |  |  | $ | (78,629) |
State and local | 6,459 |  |  | 4,577 |  |  | (1,360) |
Foreign | 76 |  |  | 333 |  |  | (78) |
Total current provision | 8,901 |  |  | 26,809 |  |  | (80,067) |
| January 29, 2023 |  | January 30, 2022 |  | January 31, 2021
Deferred provision (benefit): |  |  |  |  |
Federal | 25,010 |  |  | (2,354) |  |  | (5,415) |
State and local | 3,142 |  |  | (5,441) |  |  | 1,951 |
Foreign | (522) |  |  | — |  |  | 99 |
Total deferred provision (benefit) | 27,630 |  |  | (7,795) |  |  | (3,365) |
Provision for income taxes | $ | 36,531 |  |  | $ | 19,014 |  |  | $ | (83,432) |
The following table reconciles the effective tax rate to the federal income tax rate:
| January 29, 2023 |  | January 30, 2022 |  | January 31, 2021
Federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State and local income taxes, net of federal benefit | 5.7 | % |  | 5.0 | % |  | 2.7 | %
Permanent differences | 2.9 | % |  | 2.0 | % |  | (0.2) | %
Tax credits | (5.5) | % |  | (4.9) | % |  | 0.7 | %
Share-based compensation | (1.3) | % |  | (3.6) | % |  | (0.2) | %
Impact of net operating loss carryback | — | % |  | — | % |  | 7.5 | %
Other | (1.8) | % |  | (4.6) | % |  | (2.8) | %
Effective tax rate | 21.0 | % |  | 14.9 | % |  | 28.7 | %
Components of the deferred income tax liability, net consist of the following:
| January 29, 2023 |  | January 30, 2022
Deferred tax assets: |  |  |
Deferred revenue | $ | 18,148 |  |  | $ | 27,577 |
Operating lease liability | 434,877 |  |  | 380,145 |
Accrued liabilities | 9,742 |  |  | 2,961 |
Workers compensation and general liability insurance | 4,911 |  |  | 4,068 |
Share-based compensation | 6,372 |  |  | 7,614 |
Hedging transactions | — |  |  | 1,044 |
Net operating loss carryovers | 27,241 |  |  | 8,028 |
Tax credit carryovers | 4,623 |  |  | 943 |
Interest expense carryovers | 524 |  |  | — |
Indirect benefit of unrecognized tax benefits | 418 |  |  | 529 |
Other | 5,274 |  |  | 4,173 |
Subtotal | 512,130 |  |  | 437,082 |
Less: valuation allowance | (3,968) |  |  | (8,501) |
Total deferred tax assets | $ | 508,162 |  |  | $ | 428,581 |
Deferred tax liabilities: |  |  |
Trademark/tradename | $ | 43,866 |  |  | $ | 21,583 |
Property and equipment | 179,549 |  |  | 121,516 |
Operating lease right of use asset | 348,490 |  |  | 287,255 |
Other | 1,977 |  |  | 278 |
Total deferred tax liabilities | $ | 573,882 |  |  | $ | 430,632 |
Deferred tax liability, net | $ | 65,720 |  |  | $ | 2,051 |
As of January 29, 2023, we had $110,343 of state net operating loss carryforwards, which will begin to expire in 2023, foreign operating loss carryforwards of $3,388, which will begin to expire in 2030, and foreign tax credit carryovers of $973, which will begin to expire in 2028. During fiscal 2022, the decrease in the valuation allowance of $4,533 primarily relates to the use of available net operating loss carryforwards and the release of previously established allowance for certain net operating loss carryforwards due to improved operating performance. During fiscal 2021, the decrease in the valuation allowance of $5,246 primarily relates to the utilization of net operating loss carryovers. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:
| January 29, 2023 |  | January 30, 2022 |  | January 31, 2021
Balance at beginning of year | $ | 3,086 |  |  | $ | 2,564 |  |  | $ | 2,080 |
Additions for tax positions of prior years | — |  |  | 95 |  |  | 28 |
Reductions for tax positions of prior years | (757) |  |  | — |  |  | — |
Additions for tax positions of current year | — |  |  | 757 |  |  | 660 |
Lapse of statute of limitations | (381) |  |  | (330) |  |  | (204) |
Balance at end of year | $ | 1,948 |  |  | $ | 3,086 |  |  | $ | 2,564 |
The January 29, 2023 balance of unrecognized tax benefits includes $1,948, that if recognized, would affect our effective tax rate. At January 29, 2023, and January 30, 2022, we had accrued interest and penalties of $499 and $446, respectively. The Company recorded accrued interest related to the unrecognized tax benefits and penalties as a component of the provision for income taxes recognized in the Consolidated Statements of Comprehensive Income (Loss). In the next twelve months, it is reasonably possible that our unrecognized tax benefits could change due to the resolution of certain tax matters, including payments on those tax matters or due to lapse of the statute of limitations. These resolutions and payments could reduce our unrecognized tax benefits by up to $528. We file consolidated income tax returns with all our domestic subsidiaries, which are periodically audited by various federal, state and foreign jurisdictions. We are generally no longer subject to federal, state, or foreign income tax examinations for years prior to 2014. The Company recorded excess tax expense (benefits) of $(3,128), $(6,994), and $437, in fiscal 2022, fiscal 2021 and fiscal 2020, respectively, to the provision for income taxes in the Consolidated Statements of Comprehensive Income (Loss).

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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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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