XML 31 R15.htm IDEA: XBRL DOCUMENT
v3.21.1

INCOME TAXES | 12 Months Ended
--- | ---
Jan. 30, 2021
INCOME TAXES |
INCOME TAXES | 7. INCOME TAXES ​ On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. The CARES Act modified certain provisions to the Internal Revenue Code. Among the provisions modified by the CARES Act was a five-year carryback period for net operating losses incurred in the 2018, 2019 and 2020 tax years; temporary removal of the 80% limitation on net operating loss usage, reinstated for tax years after 2020; a temporary increase in the interest expense limitation and acceleration of refundable AMT credit. The five-year carryback presented an opportunity to carry back net operating losses from years with a statutory 21% federal tax rate to years when the rate was 35%. During 2020, the Company recorded a net income tax benefit of $8.2 million related to the carryback of the 2020 net operating loss. The components of (loss) earnings before income taxes consisted of domestic loss before income taxes of $441.5 million in 2020 and domestic earnings before income taxes of $37.3 million and $40.0 million in 2019 and 2018, respectively. The Company’s international earnings before incomes taxes were $41.3 million in 2019 and international losses before income taxes were $75.6 million and $45.8 million in 2020 and 2018, respectively. The components of income tax (benefit) provision on (loss) earnings were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
($ thousands) |  | 2020 |  | 2019 |  | 2018
Federal |  | ​ |  |  | ​ |  |  | ​ |
Current | ​ | $ | (37,140) | ​ | $ | 4,003 | ​ | $ | 1,953
Deferred | ​ |  | (45,145) | ​ |  | 5,390 | ​ |  | 4,451
Total federal income tax (benefit) provision | ​ |  | (82,285) | ​ |  | 9,393 | ​ |  | 6,404
State | ​ |  |  | ​ |  |  | ​ |  |
Current | ​ |  | 1,532 | ​ |  | 290 | ​ |  | (718)
Deferred | ​ |  | (9,038) | ​ |  | 2,403 | ​ |  | 1,284
Total state income tax (benefit) provision | ​ |  | (7,506) | ​ |  | 2,693 | ​ |  | 566
International | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Current | ​ | ​ | 2,288 | ​ | ​ | 3,914 | ​ | ​ | 5,413
Deferred | ​ |  | 9,386 | ​ |  | 511 | ​ |  | (12,656)
Total international income tax provision (benefit) | ​ |  | 11,674 | ​ |  | 4,425 | ​ |  | (7,243)
Total income tax (benefit) provision | ​ | $ | (78,117) | ​ | $ | 16,511 | ​ | $ | (273)
​ The differences between the income tax (benefit) provision reflected in the consolidated financial statements and the amounts calculated at the federal statutory income tax rate were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
($ thousands) |  | 2020 |  | 2019 |  | 2018
Income taxes at statutory rate | ​ | $ | (108,593) | ​ | $ | 16,505 | ​ | $ | (1,208)
State income taxes, net of federal tax benefit | ​ |  | (17,433) | ​ |  | 2,218 | ​ |  | 2,519
International earnings taxed at differing rates from U.S. statutory | ​ |  | (5,210) | ​ |  | (4,071) | ​ |  | (4,210)
Share-based compensation | ​ |  | 1,094 | ​ |  | 86 | ​ |  | (347)
Non-deductibility of goodwill impairment | ​ |  | 20,179 | ​ |  | — | ​ |  | 7,989
Impairment of international trade name taxed at higher rate | ​ |  | (1,440) | ​ |  | — | ​ |  | (2,400)
Provision for valuation allowance | ​ |  | 41,019 | ​ |  | 872 | ​ |  | —
CARES Act NOL, net carryback benefit | ​ | ​ | (8,203) | ​ | ​ | — | ​ | ​ | —
Income tax reform, net benefit | ​ |  | — | ​ |  | — | ​ |  | (3,891)
GILTI, BEAT and FDII provisions | ​ |  | — | ​ |  | 668 | ​ |  | 613
Non-deductibility of acquisition costs | ​ |  | — | ​ |  | — | ​ |  | 46
Other (1) | ​ |  | 470 | ​ |  | 233 | ​ |  | 616
Total income tax (benefit) provision | ​ | $ | (78,117) | ​ | $ | 16,511 | ​ | $ | (273)
(1) | The other category of income tax (benefit) provision principally represents the impact of expenses that are not deductible or partially deductible for federal income tax purposes and the impact of any return-to-provision adjustments.
In 2020, the Company’s effective tax rate was 15.1% in 2020, compared to 21.0% in 2019. In 2020, the Company’s effective tax rate was impacted by several discrete tax items, including the non-deductibility of a portion of its goodwill impairment charges and the incremental tax provision related to the vesting of stock awards. The Company’s tax benefit also includes the favorable impact of approximately $8.2 million related to the CARES Act, which permits the Company to carry back a significant portion of our 2020 losses to years with a higher federal tax rate, as discussed above. In 2019, the Company’s effective tax rate was impacted by discrete tax benefits totaling $1.4 million, primarily reflecting adjustments to changes in tax rates in state and other international jurisdictions. In 2018, the Company’s effective tax rate was impacted by several factors, including the non-deductibility of our goodwill impairment charge of $38.0 million. In addition, discrete tax benefits totaling $5.9 million were recognized in 2018, primarily reflecting adjustments associated with the Tax Cuts and Jobs Act and related actions for state and other international jurisdictions (in aggregate, "income tax reform"). ​ Significant components of the Company’s deferred income tax assets and liabilities were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
($ thousands) |  | January 30, 2021 |  | February 1, 2020
Deferred Tax Assets |  | ​ |  |  | ​ |
Lease obligations | ​ | $ | 176,953 | ​ | $ | 200,408
Goodwill and intangible assets | ​ | ​ | 25,659 | ​ | ​ | —
Net operating loss carryforward/carryback | ​ |  | 20,736 | ​ |  | 6,671
Accrued expenses | ​ |  | 18,610 | ​ |  | 18,762
Employee benefits, compensation and insurance | ​ | ​ | 11,006 | ​ | ​ | 12,812
Accounts receivable | ​ |  | 6,149 | ​ |  | 3,109
Inventory capitalization and inventory reserves | ​ |  | 4,130 | ​ |  | 4,123
Impairment of investment in nonconsolidated affiliate | ​ |  | 1,470 | ​ |  | 1,470
Postretirement and postemployment benefit plans | ​ |  | 285 | ​ |  | 314
Capital loss carryforward | ​ |  | 14 | ​ |  | 14
Other | ​ |  | 1,245 | ​ |  | 1,349
Total deferred tax assets, before valuation allowance | ​ |  | 266,257 | ​ |  | 249,032
Valuation allowance | ​ |  | (49,981) | ​ |  | (4,809)
Total deferred tax assets, net of valuation allowance | ​ | $ | 216,276 | ​ | $ | 244,223
​ | ​ |  |  | ​ |  |
Deferred Tax Liabilities | ​ |  |  | ​ |  |
Lease right-of-use assets | ​ | $ | (151,962) | ​ | $ | (187,978)
LIFO inventory valuation | ​ |  | (38,437) | ​ |  | (44,774)
Retirement plans | ​ |  | (21,041) | ​ |  | (10,466)
Capitalized software | ​ |  | (5,331) | ​ |  | (4,420)
Depreciation | ​ |  | (4,779) | ​ |  | (8,416)
Goodwill and intangible assets | ​ |  | — | ​ |  | (29,636)
Other | ​ |  | (2,970) | ​ |  | (3,811)
Total deferred tax liabilities | ​ |  | (224,520) | ​ |  | (289,501)
Net deferred tax liability | ​ | $ | (8,244) | ​ | $ | (45,278)
​ As of January 30, 2021, the Company had various federal, state and international net operating loss (“NOL”) carryforwards with tax values totaling $20.7 million. The state NOLs totaling $11.6 million have carryforward periods ranging from one to 20 years. The planned carryback of the federal NOL released other tax attributes with a tax value of $4.4 million. The Company has NOLs in Canada and the United Kingdom of $3.0 million and $1.7 million, respectively. The Canada NOLs have carryforward periods ranging from 16 to 20 years, while the United Kingdom NOLs have no expiration. As of January 30, 2021, the Company is in a three-year cumulative loss position for federal, state and certain international tax jurisdictions. Accordingly, as of January 30, 2021, the Company increased its valuation allowances on deferred tax assets to $50.0 million, reflecting the uncertainty regarding the utilization of its deferred tax assets. ​ As of January 30, 2021, no deferred taxes have been provided on the accumulated unremitted earnings of the Company’s international subsidiaries that are not subject to United States income tax, beyond the amounts recorded for the one-time transition tax for the mandatory deemed repatriation of cumulative international earnings, as required by the Tax Cuts and Jobs Act. The Company periodically evaluates its international investment opportunities and plans, as well as its international working capital needs, to determine the level of investment required and, accordingly, determines the level of international earnings that is considered indefinitely reinvested. Based upon that evaluation, earnings of the Company’s international subsidiaries that are not otherwise subject to United States taxation are considered to be indefinitely reinvested, and accordingly, deferred taxes have not been provided. If changes occur in future investment opportunities and plans, those changes will be reflected when known and may result in providing residual United States deferred taxes on unremitted international earnings. If the Company’s unremitted international earnings were not considered indefinitely reinvested as of January 30, 2021, an immaterial amount of additional deferred taxes would have been provided. Uncertain Tax Positions ASC 740, Income Taxes, establishes a single model to address accounting for uncertain tax positions. The standard clarifies the accounting for income taxes by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. The standard also provides guidance on derecognition, measurement classification, interest and penalties, accounting in interim periods, disclosure and transition. As of January 30, 2021, February 1, 2020 and February 2, 2019, the Company had unrecognized tax benefits of $1.5 million, $1.9 million and $2.5 million, respectively, associated with international jurisdictions. For federal purposes, the Company’s tax filings for fiscal years 2017 to 2019 remain open to examination but are not currently being examined. The Company also files tax returns in various international jurisdictions and numerous states for which various tax years are subject to examination and currently involved in audits. While the Company is involved in examinations in certain jurisdictions, it does not expect any significant changes in its liability for uncertain tax positions during the next 12 months.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://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 http://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 http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration