INCOME TAXES (Tables)
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12 Months Ended |
Feb. 03, 2024 |
INCOME TAXES |
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Summary of Income Before Income Taxes |
| | | | | | | | | | | | YEAR ENDED | | | FEBRUARY 3, | | JANUARY 28, | | JANUARY 29, | | | 2024 | | 2023 | | 2022 | | | | (in thousands) | Domestic | | $ | 143,509 | | $ | 418,216 | | $ | 821,001 | Foreign | | | 12,313 | | | 19,068 | | | 1,103 | Total | | $ | 155,822 | | $ | 437,284 | | $ | 822,104 |
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Summary of Income Tax Expense (Benefit) |
| | | | | | | | | | | | YEAR ENDED | | | FEBRUARY 3, | | JANUARY 28, | | JANUARY 29, | | | 2024 | | 2023 | | 2022 | | | | (in thousands) | Current | | | | | | | | | | Federal | | $ | (3,249) | | $ | (6,773) | | $ | 111,975 | State | | | 6,032 | | | 1,013 | | | 28,141 | Foreign | | | 179 | | | 7,012 | | | 363 | Total current tax expense | | | 2,962 | | | 1,252 | | | 140,479 | Deferred | | | | | | | | | | Federal | | | 22,236 | | | (78,032) | | | (3,841) | State | | | (1,339) | | | (18,639) | | | (2,885) | Foreign | | | 4,402 | | | 4,061 | | | (195) | Total deferred tax expense (benefit) | | | 25,299 | | | (92,610) | | | (6,921) | Total income tax expense (benefit) | | $ | 28,261 | | $ | (91,358) | | $ | 133,558 |
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Schedule of Reconciliation of Federal Statutory Tax Rate to Company's Effective Tax Rate |
| | | | | | | | | | YEAR ENDED | | | | FEBRUARY 3, | | JANUARY 28, | | JANUARY 29, | | | | 2024 | | 2023 | | 2022 | | Provision at federal statutory tax rate | | 21.0 | % | 21.0 | % | 21.0 | % | State income taxes—net of federal tax impact | | 2.1 | | (2.8) | | 2.4 | | Federal rehabilitation tax credit(1) | | (7.3) | | (0.9) | | — | | Stock compensation—excess benefits | | (3.4) | | (50.0) | | (8.0) | | Non-deductible stock-based compensation | | 1.3 | | 0.9 | | 0.6 | | U.S. impact of foreign operations(1) | | 0.8 | | 0.6 | | (0.2) | | Valuation allowance | | 0.2 | | 0.5 | | — | | Tax impact of convertible senior notes repurchase | | 0.1 | | 9.4 | | — | | Tax rate adjustments and other(1) | | 1.0 | | — | | — | | Other permanent items(1) | | 2.3 | | 0.4 | | 0.4 | | Effective tax rate | | 18.1 | % | (20.9) | % | 16.2 | % |
(1) | Prior year rates have been adjusted to conform to the current period presentation. |
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Components of Deferred Tax Assets and Liabilities |
| | | | | | | | | FEBRUARY 3, | | JANUARY 28, | | | 2024 | | 2023 | | | | (in thousands) | Non-current deferred tax assets (liabilities) | | | | | | | Lease liabilities | | $ | 341,767 | | $ | 339,911 | Interest expense carryforwards | | | 72,765 | | | 28,584 | Net operating loss carryforwards | | | 60,143 | | | 120,586 | Accrued expenses | | | 25,906 | | | 30,108 | Stock-based compensation | | | 19,090 | | | 14,974 | Merchandise inventories | | | 13,881 | | | 13,346 | Deferred revenue | | | 3,847 | | | 3,242 | Other | | | — | | | 4,483 | Non-current deferred tax assets | | | 537,399 | | | 555,234 | Valuation allowance | | | (4,442) | | | (4,202) | Non-current deferred tax assets—net | | $ | 532,957 | | $ | 551,032 | Property and equipment | | $ | (182,580) | | $ | (212,424) | Lease right-of-use assets | | | (165,423) | | | (142,199) | Prepaid expense and other | | | (29,927) | | | (15,894) | Tradename, trademarks and intangibles | | | (11,379) | | | (11,452) | State benefit | | | (8,104) | | | (8,339) | Non-current deferred tax liabilities | | | (397,413) | | | (390,308) | Total non-current deferred tax assets—net | | $ | 135,544 | | $ | 160,724 |
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Schedule of Reconciliation of Valuation Allowance |
| | | | | | | | | | | | YEAR ENDED | | | FEBRUARY 3, | | JANUARY 28, | | JANUARY 29, | | | 2024 | | 2023 | | 2022 | | | | (in thousands) | Balance at beginning of fiscal year | | $ | 4,202 | | $ | 1,959 | | $ | 2,049 | Net changes in deferred tax assets and liabilities | | | 240 | | | 2,243 | | | (90) | Balance at end of fiscal year | | $ | 4,442 | | $ | 4,202 | | $ | 1,959 |
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Schedule of reconciliation of the exposures related to unrecognized tax benefits |
| | | | | | | | | | | | YEAR ENDED | | | FEBRUARY 3, | | JANUARY 28, | | JANUARY 29, | | | 2024 | | 2023 | | 2022 | | | | (in thousands) | Balance at beginning of fiscal year | | $ | 8,151 | | $ | 8,604 | | $ | 8,456 | Gross decreases—prior period tax positions | | | — | | | — | | | (143) | Gross increases—current period tax positions | | | 515 | | | — | | | 933 | Reductions based on the lapse of the applicable statutes of limitations | | | (62) | | | (453) | | | (642) | Balance at end of fiscal year | | $ | 8,604 | | $ | 8,151 | | $ | 8,604 |
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