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Income Taxes | 12 Months Ended
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Feb. 04, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The effective tax rate for fiscal 2024 was 16.5%, compared to 22.2% for fiscal 2023. The effective tax rate decrease for fiscal 2024 in comparison to fiscal 2023 was impacted by a significant reduction in pre-tax book income. As pre-tax income decreases, the effect of certain tax attributes and permanent items, specifically our employment tax credits become more pronounced, which cause fluctuations in the effective tax rate. The following table sets forth our income tax provision:
| February 4, 2025 |  | February 4, 2024 |  | January 29, 2023
Current provision: |  |  |  |  |
Federal | $ | 20.7 |  |  | $ | 8.3 |  |  | $ | 2.3 |
State and local | 11.4 |  |  | 9.4 |  |  | 6.5 |
Foreign | 0.5 |  |  | 1.3 |  |  | 0.1 |
Total current provision | 32.6 |  |  | 19.0 |  |  | 8.9 |
Deferred provision: |  |  |  |  |
Federal | (16.9) |  |  | 16.2 |  |  | 25.0 |
State and local | (3.9) |  |  | 2.5 |  |  | 3.1 |
Foreign | (0.2) |  |  | (1.5) |  |  | (0.5) |
Total deferred provision (benefit) | (21.0) |  |  | 17.2 |  |  | 27.6 |
Provision for income taxes | $ | 11.6 |  |  | $ | 36.2 |  |  | $ | 36.5 |
The following table reconciles the effective tax rate to the federal income tax rate:
| February 4, 2025 |  | February 4, 2024 |  | January 29, 2023
Federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State and local income taxes, net of federal benefit | 5.9 | % |  | 4.8 | % |  | 5.7 | %
Permanent differences | 3.1 | % |  | 2.3 | % |  | 2.9 | %
Tax credits | (14.2) | % |  | (7.7) | % |  | (5.5) | %
Share-based compensation | (0.3) | % |  | (0.4) | % |  | (1.3) | %
Other | 1.0 | % |  | 2.2 | % |  | (1.8) | %
Effective tax rate | 16.5 | % |  | 22.2 | % |  | 21.0 | %
Components of the deferred income tax liability, net consist of the following as of the periods indicated:
| February 4, 2025 |  | February 4, 2024
Deferred tax assets: |  |  |
Deferred revenue | $ | 13.9 |  |  | $ | 16.9 |
Long-term lease obligation | 434.0 |  |  | 426.5 |
Accrued liabilities | 3.5 |  |  | 5.1 |
Workers’ compensation and general liability insurance | 5.6 |  |  | 5.2 |
Share-based compensation | 7.8 |  |  | 6.2 |
Financing obligation | 68.0 |  |  | 20.9 |
Net operating loss carryovers | 3.0 |  |  | 4.2 |
Tax credit carryovers | 1.6 |  |  | 7.1 |
Excess business interest expense | 21.4 |  |  | 19.1 |
Other | 6.2 |  |  | 4.0 |
Subtotal | 565.0 |  |  | 515.2 |
Less: Valuation allowance | (1.6) |  |  | (1.7) |
Total deferred tax assets | $ | 563.4 |  |  | $ | 513.5 |
Deferred tax liabilities: |  |  |
Trademark/tradename | $ | 44.0 |  |  | $ | 44.1 |
Property and equipment | 229.3 |  |  | 197.0 |
Right of use assets | 344.2 |  |  | 341.8 |
Other debt related items | 5.7 |  |  | 11.9 |
Other | 3.1 |  |  | 2.5 |
Total deferred tax liabilities | $ | 626.3 |  |  | $ | 597.3 |
Deferred tax liability, net | $ | 62.9 |  |  | $ | 83.8 |
As of February 4, 2025, we had $60.9 of state net operating loss carryforwards, which will begin to expire in fiscal 2025, and foreign tax credit carryovers of $1.5, which will begin to expire in 2028. During fiscal 2024, the decrease in the valuation allowance of $0.1 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. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:
| February 4, 2025 |  | February 4, 2024 |  | January 29, 2023
Balance at beginning of year | $ | 8.6 |  |  | $ | 1.9 |  |  | $ | 3.0 |
Additions for tax positions of prior years | 0.9 |  |  | 1.1 |  |  | — |
Reductions for tax positions of prior years | (1.8) |  |  | — |  |  | (0.8) |
Settlements with tax authorities | (0.5) |  |  | — |  |  | — |
Additions for tax positions of current year | 0.6 |  |  | 6.1 |  |  | — |
Lapse of statute of limitations | (0.6) |  |  | (0.5) |  |  | (0.3) |
Balance at end of year | $ | 7.2 |  |  | $ | 8.6 |  |  | $ | 1.9 |
The February 4, 2025 balance of unrecognized tax benefits includes $2.4, that if recognized, would affect our effective tax rate. At February 4, 2025, and February 4, 2024, we had accrued interest and penalties of $1.0 and $0.6, 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. 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. The Company does not expect any significant changes in unrecognized tax benefits within twelve months of the reporting date. 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 2018. The Company recorded excess tax benefits of $1.0, $0.8, and $3.1, in fiscal 2024, fiscal 2023 and fiscal 2022, respectively, to the “Provision for income taxes” in the Consolidated Statements of Comprehensive Income.

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