Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.24.1
Income Taxes (Tables)
12 Months Ended
Feb. 03, 2024
Income Tax Disclosure [Abstract]  
Provision For Income Taxes
The provision for income taxes consists of the following: 
  Year Ended
(in millions) February 3, 2024 January 28, 2023 January 29, 2022
Current taxes:
Federal $ 222.2  $ 322.0  $ 271.1 
State 46.1  50.2  56.3 
Foreign —  0.1  0.1 
Total current taxes 268.3  372.3  327.5 
Deferred taxes:
Federal (225.3) 88.1  50.3 
State (39.2) 30.3  (76.5)
Foreign 5.9  4.5  3.0 
Total deferred taxes (258.6) 122.9  (23.2)
Provision for income taxes $ 9.7  $ 495.2  $ 304.3 
Effective Income Tax Rate Reconciliation
A reconciliation of the statutory U.S. federal income tax rate and the effective tax rate follows: 
  Year Ended
February 3, 2024 January 28, 2023 January 29, 2022
Statutory U.S. federal income tax rate 21.0  % 21.0  % 21.0  %
Effect of:
Goodwill impairment (22.7) —  — 
State and local income taxes, net of federal income tax benefit (1.0) 3.7  3.7 
Non-deductible expenses (1.0) 0.1  0.1 
Work Opportunity Tax Credit 3.0  (1.4) (1.8)
Deferred tax rate change —  0.7  (3.8)
Other, net (0.3) (0.6) (0.6)
Effective tax rate (1.0) % 23.5  % 18.6  %
Components of Deferred Tax Assets and Liabilities
Significant components of our net deferred tax assets (liabilities) follow:
(in millions) February 3,
2024
January 28,
2023
Deferred tax assets:    
Operating lease liabilities $ 1,800.4  $ 1,703.5 
Net operating losses, interest expense and credit carryforwards 72.8  69.3 
Accrued expenses 35.7  31.0 
Accrued compensation expense 39.3  33.9 
State tax election 13.1  14.3 
Other 4.7  2.5 
Total deferred tax assets 1,966.0  1,854.5 
Valuation allowance (17.3) (4.0)
Deferred tax assets, net 1,948.7  1,850.5 
Deferred tax liabilities:    
Operating lease ROU assets (1,639.7) (1,630.9)
Other intangibles (529.1) (760.4)
Property and equipment (571.8) (509.2)
Prepaids (35.8) (25.9)
Inventory (4.4) (14.8)
Total deferred tax liabilities (2,780.8) (2,941.2)
Deferred income taxes, net $ (832.1) $ (1,090.7)
Reconciliation of Unrecognized Tax Benefits
The following is a reconciliation of our total gross unrecognized tax benefits:
(in millions) February 3, 2024 January 28, 2023
Beginning Balance $ 17.4  $ 20.9 
Additions for tax positions of prior years 5.6  2.3 
Additions, based on tax positions related to current year 2.3  4.0 
Settlements (0.3) (0.1)
Lapses in statutes of limitation (3.0) (9.7)
Ending balance $ 22.0  $ 17.4