Quarterly report pursuant to Section 13 or 15(d)

INCOME TAXES (Tables)

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INCOME TAXES (Tables)
 6 Months Ended
Aug. 01, 2015
Income Tax Disclosure [Abstract]  
Schedule of Deferred Tax Assets and Liabilities
Significant components of the Company's net deferred tax assets (liabilities) follow:

(in millions)
August 1,
2015
 
January 31,
2015
Deferred tax assets:
 
 
 
Deferred rent
$
43.5

 
$
41.0

Accrued expenses
64.2

 
37.6

Net operating losses and credit carryforwards
49.9

 
31.0

Accrued compensation expense
63.2

 
33.8

Other
1.4

 
5.1

Total deferred tax assets
222.2

 
148.5

Valuation allowance
(22.1
)
 
(13.8
)
Deferred tax assets, net
200.1

 
134.7

Deferred tax liabilities:
 

 
 

Property and equipment
(317.8
)
 
(48.7
)
Other intangibles
(1,434.0
)
 
(18.7
)
Prepaid expenses
(3.1
)
 
(3.0
)
Inventory
(14.9
)
 
(5.4
)
Total deferred tax liabilities
(1,769.8
)
 
(75.8
)
Net deferred tax asset (liability)
$
(1,569.7
)
 
$
58.9

Reconciliation of Unrecognized Tax Benefits
The following is a reconciliation of the Company’s total gross unrecognized tax benefits:
 
August 1, 2015
 
January 31, 2015
Beginning Balance
$
6.5

 
$
5.5

   Additions, acquisition of Family Dollar
28.2

 
—

   Additions, based on tax positions related to current year
0.1

 
0.6

   Additions for tax positions of prior years
—

 
0.9

   Reductions for tax positions of prior years
—

 
—

   Settlements
—

 
—

   Lapses in statutes of limitation
(0.4
)
 
(0.5
)
Ending balance
$
34.4

 
$
6.5

During fiscal 2015, the Company acquired Family Dollar Stores, Inc. The increase in unrecognized tax benefits for fiscal 2015 is primarily related to the Acquisition.
United States income taxes have not been provided on accumulated but undistributed earnings of Dollar Tree’s foreign subsidiaries as the Company intends to permanently reinvest the earnings. To date, the earnings and related taxes of the legacy Dollar Tree foreign subsidiaries are negligible. The Company has provided United States income taxes on accumulated but undistributed earnings for Family Dollar’s foreign subsidiaries as of the July 6, 2015 acquisition date.