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Income Taxes
 12 Months Ended
Feb. 01, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 12 – Income Taxes

The provision for income taxes consisted of:

 

(In thousands)

 

2024

 

 

2023

 

 

2022

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

18,513

 

 

$

13,290

 

 

$

15,542

 

State

 

 

3,828

 

 

 

2,623

 

 

 

4,919

 

Puerto Rico

 

 

815

 

 

 

1,382

 

 

 

2,050

 

Total current

 

 

23,156

 

 

 

17,295

 

 

 

22,511

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

453

 

 

 

4,862

 

 

 

11,712

 

State and Puerto Rico

 

 

(227

)

 

 

21

 

 

 

1,878

 

Total deferred

 

 

226

 

 

 

4,883

 

 

 

13,590

 

Valuation allowance

 

 

338

 

 

 

614

 

 

 

953

 

Total provision

 

$

23,720

 

 

$

22,792

 

 

$

37,054

 

 

Reconciliation between the statutory federal income tax rate and the effective income tax rate is as follows:

 

Fiscal years

 

2024

 

 

2023

 

 

2022

 

U.S. Federal statutory tax rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

State and local income taxes, net of federal tax
   benefit

 

 

3.1

 

 

 

2.7

 

 

 

3.5

 

Puerto Rico

 

 

0.4

 

 

 

0.6

 

 

 

0.6

 

Excess tax benefit on stock-based compensation

 

 

(0.1

)

 

 

(0.9

)

 

 

(0.4

)

Other

 

 

(0.1

)

 

 

0.3

 

 

 

0.5

 

Effective income tax rate

 

 

24.3

%

 

 

23.7

%

 

 

25.2

%

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 1,
2025

 

 

February 3,
2024

 

Deferred tax assets:

 

 

 

 

 

 

Lease obligations

 

$

89,495

 

 

$

86,175

 

Accrued compensation

 

 

6,465

 

 

 

4,513

 

Inventory

 

 

438

 

 

 

639

 

Other

 

 

4,970

 

 

 

4,641

 

Total deferred tax assets

 

 

101,368

 

 

 

95,968

 

Valuation allowance

 

 

(3,588

)

 

 

(3,250

)

Total deferred tax assets – net of valuation
   allowance

 

 

97,780

 

 

 

92,718

 

Deferred tax liabilities:

 

 

 

 

 

 

Lease ROU assets

 

 

84,602

 

 

 

82,350

 

Property and equipment

 

 

23,997

 

 

 

22,769

 

Other

 

 

8,060

 

 

 

4,940

 

Total deferred tax liabilities

 

 

116,659

 

 

 

110,059

 

Net deferred tax liability

 

$

(18,879

)

 

$

(17,341

)

We have tax credit carryforwards associated with our Puerto Rico operations totaling $3.6 million at February 1, 2025 and $3.3 million at February 3, 2024. These credits expire at various times over the next nine years. We have taken

a full valuation allowance against these credits given they are not expected to be utilized due to the current differential between U.S. and Puerto Rico tax rates.

As of February 1, 2025 and February 3, 2024, there were no unrecognized tax liabilities or related accrued penalties or interest.