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Income Taxes
 12 Months Ended
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, 2023January 30, 2022January 31, 2021
Current provision:
Federal$2,366 $21,899 $(78,629)
State and local6,459 4,577 (1,360)
Foreign76 333 (78)
Total current provision8,901 26,809 (80,067)
January 29, 2023January 30, 2022January 31, 2021
Deferred provision (benefit):
Federal25,010 (2,354)(5,415)
State and local3,142 (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, 2023January 30, 2022January 31, 2021
Federal income tax rate21.0 %21.0 %21.0 %
State and local income taxes, net of federal benefit5.7 %5.0 %2.7 %
Permanent differences2.9 %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 rate21.0 %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 liability434,877 380,145 
Accrued liabilities9,742 2,961 
Workers compensation and general liability insurance4,911 4,068 
Share-based compensation6,372 7,614 
Hedging transactions— 1,044 
Net operating loss carryovers27,241 8,028 
Tax credit carryovers4,623 943 
Interest expense carryovers524 — 
Indirect benefit of unrecognized tax benefits418 529 
Other5,274 4,173 
Subtotal512,130 437,082 
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 equipment179,549 121,516 
Operating lease right of use asset348,490 287,255 
Other1,977 278 
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, 2023January 30, 2022January 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).