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Income Taxes | 12 Months Ended
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Feb. 02, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Note 9 – Income Taxes The provision for income taxes consisted of:
(In thousands) |  | 2018 |  |  | 2017 |  |  | 2016 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 11,468 |  |  | $ | 14,579 |  |  | $ | 13,366 |
State |  |  | 1,693 |  |  |  | 2,241 |  |  |  | 1,997 |
Puerto Rico |  |  | 700 |  |  |  | 242 |  |  |  | 250 |
Total current |  |  | 13,861 |  |  |  | 17,062 |  |  |  | 15,613 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (894 | ) |  |  | 2,383 |  |  |  | (153 | )
State |  |  | (745 | ) |  |  | (965 | ) |  |  | (1,228 | )
Puerto Rico |  |  | 643 |  |  |  | 2,500 |  |  |  | (1,494 | )
Total deferred |  |  | (996 | ) |  |  | 3,918 |  |  |  | (2,875 | )
Valuation allowance |  |  | (643 | ) |  |  | (2,500 | ) |  |  | 1,494 |
Total provision |  | $ | 12,222 |  |  | $ | 18,480 |  |  | $ | 14,232 |
We realized a tax benefit of $26,100 in fiscal year 2018, tax expense of $17,800 in fiscal year 2017, and a tax benefit of $2,900 in fiscal year 2016 as a result of the exercise of stock options and the vesting of restricted stock. These amounts were recorded in tax expense in fiscal 2018 and shareholder’s equity in fiscal 2017 and fiscal 2016. Reconciliation between the statutory federal income tax rate and the effective income tax rate is as follows:
Fiscal years |  | 2018 |  |  | 2017 |  |  | 2016 |
U.S. Federal statutory tax rate |  |  | 21.0 | % |  |  | 33.7 | % |  |  | 35.0 | %
State and local income taxes, net of federal tax benefit |  |  | 3.0 |  |  |  | 3.0 |  |  |  | 2.1 |
Puerto Rico |  |  | 4.2 |  |  |  | 0.7 |  |  |  | 0.2 |
Valuation allowance |  |  | (1.3 | ) |  |  | (6.7 | ) |  |  | 4.0 |
Tax impact of foreign losses |  |  | (2.7 | ) |  |  | 6.3 |  |  |  | (3.6 | )
Remeasurement of deferred tax assets and liabilities due to the Tax Act |  |  | 0.0 |  |  |  | 11.6 |  |  |  | 0.0 |
Other |  |  | 0.1 |  |  |  | 0.8 |  |  |  | 0.0 |
Effective income tax rate |  |  | 24.3 | % |  |  | 49.4 | % |  |  | 37.7 | %
We recorded $310,000, $223,000 and $224,000 in federal employment-related tax credits in fiscal 2018, 2017 and 2016, respectively. Deferred income taxes are the result of temporary differences in the recognition of revenue and expense for tax and financial reporting purposes. The sources of these differences and the tax effect of each are as follows:
(In thousands) |  | February 2, 2019 |  |  | February 3, 2018 |
Deferred tax assets: |  |  |  |  |  |  |  |
Accrued rent |  | $ | 2,051 |  |  | $ | 2,464 |
Accrued compensation |  |  | 7,843 |  |  |  | 5,752 |
Accrued employee benefits |  |  | 129 |  |  |  | 349 |
Inventory |  |  | 787 |  |  |  | 699 |
Self-insurance reserves |  |  | 510 |  |  |  | 518 |
Lease incentives |  |  | 5,429 |  |  |  | 7,145 |
Net operating loss carry forward |  |  | 563 |  |  |  | 1,218 |
Other |  |  | 288 |  |  |  | 488 |
Total deferred tax assets |  |  | 17,600 |  |  |  | 18,633 |
Valuation allowance |  |  | (574 | ) |  |  | (1,217 | )
Total deferred tax assets – net of valuation allowance |  |  | 17,026 |  |  |  | 17,416 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property and equipment |  |  | 6,484 |  |  |  | 8,588 |
Capitalized costs |  |  | 636 |  |  |  | 646 |
Other |  |  | 284 |  |  |  | 0 |
Total deferred tax liabilities |  |  | 7,404 |  |  |  | 9,234 |
Long-term deferred income taxes, net |  | $ | 9,622 |  |  | $ | 8,182 |
At the end of fiscal 2018, we estimated foreign net operating loss carry forwards of $1.5 million, which expire between fiscal 2024 and fiscal 2027. At February 2, 2019, we had a valuation allowance of $574,000 against these net operating losses that would be realizable only upon the generation of future taxable income in the jurisdiction in which the losses were incurred. At February 2, 2019 and February 3, 2018, there were no unrecognized tax liabilities or related accrued penalties or interest in other liabilities on the consolidated balance sheets. On December 22, 2017, the U.S. government enacted the Tax Act, which made significant changes to the Internal Revenue Code of 1986, as amended, including, but not limited to, reducing the U.S. corporate statutory tax rate from 35% to 21%, and eliminating or limiting deduction of several expenses which were previously deductible. In connection with the Tax Act, the Securities and Exchange Commission staff issued Staff Accounting Bulletin 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provided a measurement period of one year from the Tax Act’s enactment date for companies to complete their accounting under the income tax guidance. For our initial analysis of the impact of the Tax Act, we recorded additional income tax expense of $4.4 million for the fiscal year ended February 3, 2018, which was related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they were expected to reverse in the future. We also calculated our fiscal 2017 income tax expense using a blended rate of 33.7%, which is based on the applicable tax rates before and after the Tax Act and the number of days in the fiscal year that the respective tax rates were in effect. We have determined that these provisions were the only provisions of the Tax Act that impacted fiscal 2017 results. In fiscal 2018, we obtained additional information and recorded an income tax benefit of $0.1 million. As of the end of fiscal 2018, we have filed our fiscal 2017 federal income tax return and have completed our assessment of the final impact of the Tax Act.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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