Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v2.4.0.8
INCOME TAXES (Tables)
 12 Months Ended
Feb. 01, 2014
Income Tax Disclosure [Abstract]  
Income Tax Expense (Benefit), Intraperiod Tax Allocation Table
Total income taxes were allocated as follows:
 
Year Ended
 
February 1, 2014
 
February 2, 2013
 
January 28, 2012
(in millions)
 
 
 
 
 
Income from continuing operations
$
357.6

 
$
359.6

 
$
291.2

Accumulated other comprehensive loss
 

 
 

 
 

marking derivative financial instruments
 

 
 

 
 

to fair value
—

 
—

 
(0.1
)
Shareholders' equity, tax benefit on
 

 
 

 
 

exercises/vesting of equity-based
 

 
 

 
 

compensation
(9.8
)
 
(21.3
)
 
(13.8
)
 
$
347.8

 
$
338.3

 
$
277.3

Income tax provision (benefit) Table
The provision for income taxes consists of the following: 
 
Year Ended
 
February 1,
 
February 2,
 
January 28,
(in millions)
2014
 
2013
 
2012
Federal - current
$
304.6

 
$
324.5

 
$
240.4

State - current
45.9

 
42.4

 
39.4

Foreign - current
0.4

 
0.5

 
0.3

Total current
350.9

 
367.4

 
280.1

 
 
 
 
 
 
Federal - deferred
10.5

 
0.3

 
14.9

State - deferred
0.9

 
(3.5
)
 
0.1

Foreign - deferred
(4.7
)
 
(4.6
)
 
(3.9
)
Total deferred
$
6.7

 
$
(7.8
)
 
$
11.1

Federal statutory tax rate reconciliation Table
A reconciliation of the statutory federal income tax rate and the effective rate follows: 
 
Year Ended
 
February 1, 2014
 
February 2, 2013
 
January 28, 2012
Statutory tax rate
35.0
 %
 
35.0
 %
 
35.0
 %
Effect of:
 

 
 

 
 

State and local income taxes,
 

 
 

 
 

net of federal income tax benefit
3.3

 
3.0

 
3.4

Other, net
(0.8
)
 
(1.3
)
 
(1.0
)
Effective tax rate
37.5
 %
 
36.7
 %
 
37.4
 %
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.  Deferred tax assets and liabilities are classified on the accompanying consolidated balance sheets based on the classification of the underlying asset or liability.  Significant components of the Company's net deferred tax assets (liabilities) follow:
 
February 1,
2014
 
February 2,
2013
(in millions)
 
 
 
Deferred tax assets:
 
 
 
Deferred rent
$
38.2

 
$
35.6

Accrued expenses
34.2

 
32.6

Net operating losses and credit carryforwards
19.3

 
14.4

Accrued compensation expense
29.5

 
28.2

Other
0.6

 
0.8

Total deferred tax assets
121.8

 
111.6

Valuation allowance
(6.0
)
 
(4.3
)
Deferred tax assets, net
115.8

 
107.3

Deferred tax liabilities:
 

 
 

Property and equipment
(46.6
)
 
(32.8
)
Goodwill
(16.9
)
 
(15.9
)
Prepaid expenses
(3.7
)
 
(4.0
)
Inventory
(5.6
)
 
(3.8
)
Total deferred tax liabilities
(72.8
)
 
(56.5
)
Net deferred tax asset
$
43.0

 
$
50.8

Reconciliation of Unrecognized Tax Benefits Table
The balance for unrecognized tax benefits at February 1, 2014, was $5.5 million.  The total amount of unrecognized tax benefits at February 1, 2014, that, if recognized, would affect the effective tax rate was $3.6 million (net of the federal tax benefit).  The following is a reconciliation of the Company’s total gross unrecognized tax benefits for the year ended February 1, 2014:
 
February 1, 2014
 
February 2, 2013
Beginning Balance
$
5.6

 
$
15.5

Additions, based on tax positions related to current year
0.2

 
2.5

Additions for tax positions of prior years
0.8

 
2.1

Reductions for tax positions of prior years
(0.2
)
 
(3.1
)
Settlements
(0.3
)
 
(1.9
)
Lapses in statutes of limitation
(0.6
)
 
(9.5
)
Ending balance
$
5.5

 
$
5.6