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INCOME TAXES (Tables) | 12 Months Ended
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Jan. 29, 2022
Income Tax Disclosure [Abstract] |
Schedule of Income (Loss) Before Taxes, Domestic and Foreign | The components of Income (loss) before provision (benefit) for income taxes were as follows:
|  | Fiscal Years Ended
|  | January 29, 2022 |  | January 30, 2021 |  | February 1, 2020
|  | (in thousands)
Domestic |  | $ | 198,173 |  |  | $ | (250,876) |  |  | $ | 36,660 |
Foreign |  | 58,857 |  |  | 39,118 |  |  | 51,757 |
Total income (loss) before provision (benefit) for income taxes |  | $ | 257,030 |  |  | $ | (211,758) |  |  | $ | 88,417 |
Schedule of Components of Provision (Benefit) for Income Taxes | The components of the Company’s Provision (benefit) for income taxes consisted of the following:
|  | Fiscal Years Ended
|  | January 29, 2022 |  | January 30, 2021 |  | February 1, 2020
|  | (in thousands)
Current: |  |  |  |  |  |
Federal |  | $ | 29,406 |  | $ | (45,072) |  | $ | 1,810
State and local |  | 7,389 |  | 212 |  | 1,186
Foreign |  | 7,218 |  | 5,728 |  | 6,757
|  | 44,013 |  | (39,132) |  | 9,753
Deferred: |  |  |  |  |  |
Federal |  | 14,517 |  | (14,274) |  | 4,240
State and local |  | 8,780 |  | (15,968) |  | 1,066
Foreign |  | 2,549 |  | (2,019) |  | 58
|  | 25,846 |  | (32,261) |  | 5,364
Total provision (benefit) for income taxes |  | $ | 69,859 |  | $ | (71,393) |  | $ | 15,117
Effective tax rate |  | 27.2 | % |  | 33.7 | % |  | 17.1 | %
Schedule of Reconciliation of Tax Provision (Benefit) | A reconciliation between the calculated tax provision (benefit) based on the U.S. federal statutory rate of 21.0% and the effective tax rate for Fiscal 2021, Fiscal 2020, and Fiscal 2019 follows:
|  | Fiscal Years Ended
|  | January 29, 2022 |  | January 30, 2021 |  | February 1, 2020
|  | (in thousands)
Calculated income tax provision (benefit) at U.S. federal statutory rate |  | $ | 53,976 |  |  | $ | (44,471) |  |  | $ | 18,568 |
State and local income taxes, net of federal benefit |  | 14,394 |  |  | (12,447) |  |  | 1,779 |
Foreign tax rate differential (1) |  | (3,598) |  |  | (5,791) |  |  | (5,019) |
Non-deductible expenses |  | 7,301 |  |  | 2,654 |  |  | 1,491 |
Excess tax detriment (benefit) related to stock compensation |  | (293) |  |  | 2,051 |  |  | (1,914) |
Unrecognized tax benefits |  | 1,050 |  |  | 1,150 |  |  | 1,304 |
Change in valuation allowance |  | 358 |  |  | (10) |  |  | (21) |
Global intangible low-taxed income |  | 1,476 |  |  | 7,815 |  |  | 836 |
Federal tax credits |  | (2,882) |  |  | (1,422) |  |  | (1,790) |
CARES Act Carryback (2) |  | — |  |  | (20,954) |  |  | — |
Other |  | (1,923) |  |  | 32 |  |  | (117) |
Total provision (benefit) for income taxes |  | $ | 69,859 |  |  | $ | (71,393) |  |  | $ | 15,117 |
____________________________________________ (1) The Company has substantial operations in Hong Kong, which has a lower statutory income tax rate as compared to the U.S. The Company’s foreign effective tax rate for Fiscal 2021, Fiscal 2020, and Fiscal 2019 was 16.6%, 7.7%, and 13.2%, respectively. This rate fluctuates from year to year in response to changes in the mix of income by country, as well as changes in tax laws in foreign jurisdictions. (2) The CARES Act permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. The Fiscal 2020 tax loss of approximately $150.0 million was carried back to earlier tax years when the corporate tax rate was 35.0%, compared to the current corporate tax rate of 21.0%, resulting in a tax benefit of $21.0 million.
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences which give rise to deferred tax assets and liabilities were as follows:
|  | January 29, 2022 |  | January 30, 2021
|  | (in thousands)
Operating lease liabilities |  | $ | 59,283 |  |  | $ | 86,241 |
Right-of-use assets |  | (51,617) |  |  | (75,159) |
Stock-based compensation |  | 2,863 |  |  | 843 |
Reserves |  | 12,475 |  |  | 16,302 |
Inventory |  | 4,570 |  |  | 1,880 |
Property and equipment, net |  | (6,296) |  |  | (7,406) |
Capitalized research and development, net |  | 3,569 |  |  | 2,984 |
Tradenames and customer databases, net |  | (2,200) |  |  | (1,617) |
Prepaid expenses |  | (1,481) |  |  | (817) |
Foreign and state tax on unremitted earnings |  | (1,554) |  |  | (1,554) |
Net operating loss carryforward |  | 2,900 |  |  | 11,240 |
Tax credits |  | 1,746 |  |  | 10,581 |
Charitable contributions |  | — |  |  | 2,977 |
Valuation allowance |  | (1,149) |  |  | (916) |
Total deferred tax asset, net |  | $ | 23,109 |  |  | $ | 45,579 |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible | A reconciliation of the gross amounts of unrecognized tax benefits, excluding accrued interest and penalties, is as follows:
|  | Fiscal Years Ended
|  | January 29, 2022 |  | January 30, 2021
|  | (in thousands)
Beginning Balance |  | $ | 8,060 |  |  | $ | 6,655 |
Additions for current year tax positions |  | 1,155 |  |  | 1,256 |
Additions for prior year tax positions |  | 67 |  |  | 120 |
Reductions for prior year tax positions |  | (317) |  |  | — |
Impact of foreign currency translation |  | (28) |  |  | 29 |
Ending Balance |  | $ | 8,937 |  |  | $ | 8,060 |

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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
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