Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.4
Income Taxes (Tables)
12 Months Ended
Jan. 28, 2023
Income Tax Disclosure [Abstract]  
Provision For Income Taxes
The provision for income taxes consists of the following: 
  Year Ended
  January 28, January 29, January 30,
(in millions) 2023 2022 2021
Current taxes:
Federal $ 322.0  $ 271.1  $ 279.5 
State 50.2  56.3  87.4 
Foreign 0.1  0.1  0.2 
Total current taxes 372.3  327.5  367.1 
Deferred taxes:
Federal 88.1  50.3  32.6 
State 30.3  (76.5) (3.8)
Foreign 4.5  3.0  2.0 
Total deferred taxes 122.9  (23.2) 30.8 
Provision for income taxes $ 495.2  $ 304.3  $ 397.9 
Effective Income Tax Rate Reconciliation
A reconciliation of the statutory U.S. federal income tax rate and the effective tax rate follows: 
  Year Ended
January 28, 2023 January 29, 2022 January 30, 2021
Statutory U.S. federal income tax rate 21.0  % 21.0  % 21.0  %
Effect of:
State and local income taxes, net of federal income tax benefit 3.7  3.7  3.2 
Non-deductible executive compensation 0.7  0.4  0.4 
State tax reserve release (0.3) (0.4) (0.5)
Incremental tax expense (benefit) of exercises/vesting of equity-based
   compensation
(0.6) (0.5) 0.2 
Work Opportunity Tax Credit (1.4) (1.8) (1.6)
Deferred tax rate change 0.7  (3.8) — 
Change in valuation allowance (0.3) —  — 
Other, net —  —  0.2 
Effective tax rate 23.5  % 18.6  % 22.9  %
Components of Deferred Tax Assets and Liabilities
Significant components of our net deferred tax assets (liabilities) follow:
(in millions) January 28,
2023
January 29,
2022
Deferred tax assets:    
Operating lease liabilities $ 1,703.5  $ 1,647.3 
Net operating losses, interest expense and credit carryforwards 69.3  91.5 
Accrued expenses 31.0  50.7 
Accrued compensation expense 33.9  34.9 
Inventory —  24.4 
State tax election 14.3  15.8 
Other 2.5  2.4 
Total deferred tax assets 1,854.5  1,867.0 
Valuation allowance (4.0) (13.0)
Deferred tax assets, net 1,850.5  1,854.0 
Deferred tax liabilities:    
Operating lease right-of-use assets (1,630.9) (1,578.4)
Other intangibles (760.4) (780.9)
Property and equipment (509.2) (435.6)
Prepaids (25.9) (26.0)
Inventory (14.8) — 
Total deferred tax liabilities (2,941.2) (2,820.9)
Deferred income taxes, net $ (1,090.7) $ (966.9)
Reconciliation of Unrecognized Tax Benefits
The following is a reconciliation of our total gross unrecognized tax benefits:
(in millions) January 28, 2023 January 29, 2022
Beginning Balance $ 20.9  $ 22.6 
Additions for tax positions of prior years 2.3  4.6 
Additions, based on tax positions related to current year 4.0  2.7 
Settlements (0.1) — 
Lapses in statutes of limitation (9.7) (9.0)
Ending balance $ 17.4  $ 20.9