Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.19.1
INCOME TAXES (Tables)
 12 Months Ended
Feb. 03, 2018
Income Tax Disclosure [Abstract]  
Income Tax Expense (Benefit), Intraperiod Tax Allocation Table
S
Income tax provision (benefit) Table
The provision for income taxes consists of the following: 
 
 
Year Ended
 
 
February 2,
 
February 3,
 
January 28,
(in millions)
 
2019
 
2018
 
2017
Current taxes:
 
 
 
 
 
 
Federal
 
$
245.6

 
$
439.3

 
$
480.5

State
 
47.8

 
23.8

 
79.5

Foreign
 
0.4

 
0.3

 
0.8

Total current taxes
 
293.8

 
463.4

 
560.8

Deferred taxes:
 
 
 
 
 
 
Federal
 
0.3

 
(456.0
)
 
(37.7
)
State
 
(12.3
)
 
(17.7
)
 
(89.9
)
Total deferred taxes
 
(12.0
)
 
(473.7
)
 
(127.6
)
Provision for income taxes
 
$
281.8

 
$
(10.3
)
 
$
433.2

Federal statutory tax rate reconciliation Table
A reconciliation of the statutory U.S. federal income tax (benefit) rate and the effective tax (benefit) rate follows: 
 
 
Year Ended
 
 
February 2, 2019
 
February 3, 2018
 
January 28, 2017
Statutory U.S. federal income tax (benefit) rate
 
(21.0
)%
 
33.7
 %
 
35.0
 %
Effect of:
 
 
 
 
 
 
Goodwill impairment
 
43.7

 
—

 
—

State and local income taxes, net of federal income tax benefit
 
3.0

 
2.5

 
3.0

Work Opportunity Tax Credit
 
(2.0
)
 
(1.3
)
 
(1.6
)
State tax election
 
—

 
—

 
(1.4
)
Deferred tax rate change
 
—

 
(0.6
)
 
(1.6
)
Incremental tax expense (benefit) of exercises/vesting of
equity-based compensation
 
0.1

 
(0.8
)
 
(0.6
)
Change in valuation allowance
 
0.3

 
(0.1
)
 
0.1

Tax Cuts and Jobs Act
 
(1.3
)
 
(33.0
)
 
—

Other, net
 
(1.3
)
 
(1.0
)
 
(0.3
)
Effective tax (benefit) rate
 
21.5
 %
 
(0.6
)%
 
32.6
 %
Components of Deferred Tax Assets and Liabilities Table
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
Significant components of the Company’s net deferred tax assets (liabilities) follow:
(in millions)
 
February 2,
2019
 
February 3,
2018
Deferred tax assets:
 
 
 
 
Deferred rent
 
$
44.3

 
$
42.7

Accrued expenses
 
18.0

 
17.8

Net operating losses, interest expense and credit carryforwards
 
90.7

 
75.6

Accrued compensation expense
 
31.6

 
23.2

State tax election
 
20.9

 
22.8

Other
 
3.0

 
—

Total deferred tax assets
 
208.5

 
182.1

Valuation allowance
 
(42.6
)
 
(38.6
)
Deferred tax assets, net
 
165.9

 
143.5

Deferred tax liabilities:
 
 

 
 

Property and equipment
 
(235.5
)
 
(218.5
)
Other intangibles
 
(864.0
)
 
(880.5
)
Inventory
 
(17.8
)
 
(27.1
)
Prepaids
 
(21.8
)
 
—

Other
 
—

 
(2.6
)
Total deferred tax liabilities
 
(1,139.1
)
 
(1,128.7
)
Deferred income taxes, net
 
$
(973.2
)
 
$
(985.2
)
Reconciliation of Unrecognized Tax Benefits Table
The following is a reconciliation of the Company’s total gross unrecognized tax benefits:
(in millions)
 
February 2, 2019
 
February 3, 2018
Beginning Balance
 
$
43.8

 
$
71.2

Additions, based on tax positions related to current year
 
4.6

 
2.5

Additions for tax positions of prior years
 
4.5

 
9.8

Reductions for tax positions of prior years
 
—

 
(31.7
)
Settlements
 
(2.2
)
 
(2.9
)
Lapses in statutes of limitation
 
(15.3
)
 
(5.1
)
Ending balance
 
$
35.4

 
$
43.8