Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.4
Income Taxes (Tables)
12 Months Ended
Jan. 30, 2021
Income Tax Disclosure [Abstract]  
Income tax provision (benefit)
The provision for income taxes consists of the following: 
  Year Ended
  January 30, February 1, February 2,
(in millions) 2021 2020 2019
Current taxes:
Federal $ 279.5  $ 210.1  $ 245.6 
State 87.4  52.5  47.8 
Foreign 0.2  0.1  0.4 
Total current taxes 367.1  262.7  293.8 
Deferred taxes:
Federal 32.6  39.2  0.3 
State (3.8) (5.6) (12.3)
Foreign 2.0  (24.6) — 
Total deferred taxes 30.8  9.0  (12.0)
Provision for income taxes $ 397.9  $ 271.7  $ 281.8 
Federal statutory tax rate reconciliation
A reconciliation of the statutory U.S. federal income tax (benefit) rate and the effective tax rate follows: 
  Year Ended
January 30, 2021 February 1, 2020 February 2, 2019
Statutory U.S. federal income tax (benefit) rate 21.0  % 21.0  % (21.0) %
Effect of:
State and local income taxes, net of federal income tax benefit 3.2  3.7  3.0 
Non-deductible executive compensation 0.4  —  — 
Incremental tax expense (benefit) of exercises/vesting of equity-based
compensation
0.2  (0.4) 0.1 
State tax reserve release (0.5) —  — 
Work Opportunity Tax Credit (1.6) (2.7) (2.0)
Goodwill impairment —  6.0  43.7 
Deferred tax rate change —  0.1  — 
Change in valuation allowance —  (2.2) 0.3 
Tax Cuts and Jobs Act —  —  (1.3)
Other, net 0.2  (0.8) (1.3)
Effective tax rate 22.9  % 24.7  % 21.5  %
Components of Deferred Tax Assets and Liabilities
Significant components of our net deferred tax assets (liabilities) follow:
(in millions) January 30,
2021
February 1,
2020
Deferred tax assets:    
Operating lease liabilities $ 1,658.4  $ 1,621.8 
Accrued expenses 72.9  26.0 
Net operating losses, interest expense and credit carryforwards 95.5  102.2 
Accrued compensation expense 47.2  31.6 
State tax election 17.4  19.3 
Other 3.2  2.4 
Total deferred tax assets 1,894.6  1,803.3 
Valuation allowance (16.8) (18.5)
Deferred tax assets, net 1,877.8  1,784.8 
Deferred tax liabilities:    
Property and equipment (410.5) (304.3)
Operating lease right-of-use assets (1,587.2) (1,550.1)
Other intangibles (840.4) (852.2)
Inventory (4.8) (14.4)
Prepaids (25.2) (24.1)
Total deferred tax liabilities (2,868.1) (2,745.1)
Deferred income taxes, net $ (990.3) $ (960.3)
Reconciliation of Unrecognized Tax Benefits
The following is a reconciliation of our total gross unrecognized tax benefits:
(in millions) January 30, 2021 February 1, 2020
Beginning Balance $ 28.9  $ 35.4 
Additions, based on tax positions related to current year 1.2  0.9 
Additions for tax positions of prior years 3.4  4.8 
Lapses in statutes of limitation (10.9) (12.2)
Ending balance $ 22.6  $ 28.9