INCOME TAXES (Tables)

12 Months Ended

Jan. 28, 2017

Schedule of Income before Income Tax, Domestic and Foreign

Income (loss) before taxes was comprised of:



(in thousands)	Fiscal 2016			Fiscal 2015		Fiscal 2014
Domestic	$	(52,041	)	$	8,412	$	100,115
Foreign	48,563			46,178		(961		)
Income (loss) before taxes	$	(3,478	)	$	54,590	$	99,154

Schedule of Components of Income Tax Expense (Benefit)

Income tax (benefit) expense consisted of:



(in thousands)	Fiscal 2016			Fiscal 2015			Fiscal 2014
Current:
Federal	$	(18,888	)	$	(3,124	)	$	21,287
State	(74		)	(434		)	1,944
Foreign	15,633			12,120			28,614
	(3,329		)	8,562			51,845
Deferred:
Federal	(5,787		)	9,224			8,971
State	(346		)	3,297			1,783
Foreign	(1,734		)	(5,052		)	(15,266		)
	(7,867		)	7,469			(4,512		)
Income tax (benefit) expense	$	(11,196	)	$	16,031		$	47,333

Schedule of Effective Income Tax Rate Reconciliation

Reconciliation between the statutory federal income tax rate and the effective tax rate is as follows:



	Fiscal 2016⁽¹⁾		Fiscal 2015		Fiscal 2014
U.S. Federal income tax rate	35.0	%	35.0	%	35.0	%
State income tax, net of U.S. federal income tax effect	5.0		4.6		4.3
Foreign taxation of non-U.S. operations	248.9		(10.2	)	5.4
U.S. taxation of non-U.S. operations⁽²⁾	(212.6	)	20.0		—
Net change in valuation allowances	(16.5	)	(8.7	)	6.6
Audit and other adjustments to prior years’ accruals	(0.1	)	(8.7	)	(1.3	)
Statutory tax rate and law changes	94.3		4.2		0.2
Permanent items	122.3		(4.6	)	(1.1	)
Credit items	43.8		(2.3	)	(1.2	)
Other items, net	1.8		0.1		(0.2	)
Total	321.9	%	29.4	%	47.7	%

⁽¹⁾

Given the low level of income in absolute dollars in Fiscal 2016, effective tax rate reconciling items that may have been considered de minimis in prior years in terms of absolute dollars and on a percentage basis are amplified on a percentage basis in the current year even as the absolute dollar value of the reconciling items are similar to prior years. Accordingly, year over year comparability may be difficult as a result of the amplifying effect of the lower levels of income.


⁽²⁾	U.S. branch operations in Canada and Puerto Rico are subject to tax at the full U.S. tax rates. As a result, income from these operations do not create reconciling items.

Schedule of Deferred Tax Assets and Liabilities

The effect of temporary differences which gives rise to deferred income tax assets (liabilities) were as follows:



(in thousands)	January 28, 2017			January 30, 2016
Deferred tax assets:
Deferred compensation	$	54,552		$	62,679
Accrued expenses and reserves	13,168			19,862
Rent	33,917			36,929
Net operating losses (NOL), tax credit and other carryforwards	26,812			14,248
Investments in subsidiaries	8,791			2,895
Other	3,030			619
Valuation allowances	(2,429		)	(1,643		)
Total deferred tax assets	$	137,841		$	135,589
Deferred tax liabilities:
Property, equipment and intangibles	$	(20,177	)	$	(20,708	)
Inventory	(11,955		)	(9,480		)
Store supplies	(4,892		)	(6,054		)
Prepaid expenses	(3,262		)	(3,653		)
Undistributed net income of non-U.S. subsidiaries	(5,609		)	(4,390		)
Other	(950		)	(1,011		)
Total deferred tax liabilities	(46,845		)	(45,296		)
Net deferred income tax assets	$	90,996		$	90,293

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible

A reconciliation of the beginning and ending amounts of uncertain tax positions is as follows:



(in thousands)	Fiscal 2016			Fiscal 2015			Fiscal 2014
Uncertain tax positions, beginning of the year	$	2,455		$	3,212		$	4,182
Gross addition for tax positions of the current year	67			13			152
Gross addition for tax positions of prior years	19			598			33
Reductions of tax positions of prior years for:
Lapses of applicable statutes of limitations	(1,211		)	(986		)	(348		)
Settlements during the period	(40		)	(64		)	(4		)
Changes in judgment/ excess reserve	(51		)	(318		)	(803		)
Uncertain tax positions, end of year	$	1,239		$	2,455		$	3,212