Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.8.0.1
INCOME TAXES (Tables)
 12 Months Ended
Feb. 03, 2018
Income Tax Disclosure [Abstract]  
Income Tax Expense (Benefit), Intraperiod Tax Allocation Table
Total income taxes were allocated as follows:
 
 
Year Ended
(in millions)
 
February 3, 2018
 
January 28, 2017
 
January 30, 2016
Income from continuing operations
 
$
(10.3
)
 
$
433.2

 
$
165.8

Shareholders' equity, tax benefit on exercises/vesting of equity-based
compensation
 
—

 
—

 
(12.8
)
 
 
$
(10.3
)
 
$
433.2

 
$
153.0

Income tax provision (benefit) Table
The provision for income taxes consists of the following: 
 
 
Year Ended
 
 
February 3,
 
January 28,
 
January 30,
(in millions)
 
2018
 
2017
 
2016
Federal - current
 
$
439.3

 
$
480.5

 
$
126.9

State - current
 
23.8

 
79.5

 
14.6

Foreign - current
 
0.3

 
0.8

 
0.5

Total current
 
$
463.4

 
$
560.8

 
$
142.0

 
 
 
 
 
 
 
Federal - deferred
 
(456.0
)
 
(37.7
)
 
7.4

State - deferred
 
(17.7
)
 
(89.9
)
 
3.3

Foreign - deferred
 
—

 
—

 
13.1

Total deferred
 
$
(473.7
)
 
$
(127.6
)
 
$
23.8

Federal statutory tax rate reconciliation Table
A reconciliation of the statutory federal income tax rate and the effective rate follows: 
 
 
Year Ended
 
 
February 3, 2018
 
January 28, 2017
 
January 30, 2016
Statutory tax rate
 
33.7
 %
 
35.0
 %
 
35.0
 %
Effect of:
 
 

 
 

 
 

State and local income taxes, net of federal income tax benefit
 
2.5

 
3.0

 
3.0

Work Opportunity Tax Credit
 
(1.3
)
 
(1.6
)
 
(3.8
)
State tax election
 
—

 
(1.4
)
 
—

Deferred tax rate change
 
(0.6
)
 
(1.6
)
 
—

Incremental tax benefit of exercises/vesting of equity-based
compensation
 
(0.8
)
 
(0.6
)
 
—

International taxes
 
—

 
—

 
(4.5
)
Change in valuation allowance
 
(0.1
)
 
0.1

 
4.1

Nondeductible acquisition costs
 
—

 
—

 
1.5

Tax Cuts and Jobs Act
 
(33.0
)
 
—

 
—

Other, net
 
(1.0
)
 
(0.3
)
 
1.7

Effective tax rate
 
(0.6
)%
 
32.6
 %
 
37.0
 %
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. All deferred tax assets and liabilities are classified on the accompanying consolidated balance sheets as noncurrent in accordance with ASU 2015-17 "Income Taxes (Topic 740)" and are netted based on taxing jurisdiction.  
Significant components of the Company's net deferred tax assets (liabilities) follow:
(in millions)
 
February 3,
2018
 
January 28,
2017
Deferred tax assets:
 
 
 
 
Deferred rent
 
$
42.7

 
$
59.9

Accrued expenses
 
17.8

 
71.4

Net operating losses and credit carryforwards
 
75.6

 
71.4

Accrued compensation expense
 
23.2

 
71.3

State tax election
 
22.8

 
20.4

Other
 
—

 
3.4

Total deferred tax assets
 
182.1

 
297.8

Valuation allowance
 
(38.6
)
 
(49.7
)
Deferred tax assets, net
 
143.5

 
248.1

Deferred tax liabilities:
 
 

 
 

Property and equipment
 
(218.5
)
 
(331.3
)
Other intangibles
 
(880.5
)
 
(1,368.7
)
Inventory
 
(27.1
)
 
(7.0
)
Other
 
(2.6
)
 
—

Total deferred tax liabilities
 
(1,128.7
)
 
(1,707.0
)
Net deferred tax liability
 
$
(985.2
)
 
$
(1,458.9
)
Reconciliation of Unrecognized Tax Benefits Table
The following is a reconciliation of the Company’s total gross unrecognized tax benefits:
(in millions)
 
February 3, 2018
 
January 28, 2017
Beginning Balance
 
$
71.2

 
$
71.4

Additions, based on tax positions related to current year
 
2.5

 
5.9

Additions for tax positions of prior years
 
9.8

 
3.7

Reductions for tax positions of prior years
 
(31.7
)
 
—

Settlements
 
(2.9
)
 
(2.2
)
Lapses in statutes of limitation
 
(5.1
)
 
(7.6
)
Ending balance
 
$
43.8

 
$
71.2