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Taxes on Earnings
 12 Months Ended
Jan. 28, 2023
Income Tax Disclosure [Abstract]  
Taxes on Earnings Taxes on Earnings
The provision for income taxes consisted of the following:

($000)202220212020
Current
Federal$338,479 $442,152 $44,164 
State57,552 78,024 4,563 
396,031 520,176 48,727 
Deferred
Federal74,062 21,103 (27,487)
State5,355 (5,328)(325)
79,417 15,775 (27,812)
Total$475,448 $535,951 $20,915 

The provision for taxes for financial reporting purposes is different from the tax provision computed by applying the statutory federal income tax rate. The differences are reconciled below:

202220212020
Federal income taxes at the statutory rate21.0 %21.0 %21.0 %
State income taxes (net of federal benefit)
3.2 %3.2 %4.1 %
Hiring tax credits(0.5)%(0.5)%(5.4)%
Other, net0.2 %— %— %
Total23.9 %23.7 %19.7 %
The components of deferred taxes at January 28, 2023 and January 29, 2022 are as follows:

($000)20222021
Deferred Tax Assets
Accrued liabilities$31,303 $34,211 
Deferred compensation40,201 38,685 
Stock-based compensation46,139 45,840 
State taxes and credits15,755 18,501 
Employee benefits24,715 28,430 
Operating lease liabilities820,219 801,186 
Other7,976 9,632 
Gross Deferred Tax Assets986,308 976,485 
Less: Valuation allowance— (1,931)
Deferred Tax Assets986,308 974,554 
Deferred Tax Liabilities
Depreciation and amortization(372,497)(293,065)
Merchandise inventory(24,493)(27,699)
Supplies(13,239)(12,280)
Operating lease assets(781,277)(764,557)
Other(11,861)(14,595)
Deferred Tax Liabilities(1,203,367)(1,112,196)
Net Deferred Tax Liabilities$(217,059)$(137,642)

At the end of fiscal 2022 and 2021, the Company’s state tax credit carryforwards for income tax purposes were approximately $10.0 million and $12.0 million, respectively. The state tax credit carryforwards will begin to expire in fiscal 2023.

The changes in amounts of unrecognized tax benefits (gross of federal tax benefits and excluding interest and penalties) at fiscal 2022, 2021, and 2020 are as follows:

($000)202220212020
Unrecognized tax benefits - beginning of year$60,547 $60,240 $59,887 
Gross increases:
Tax positions in current period10,132 10,381 12,310 
Tax positions in prior period672 1,494 2,860 
Gross decreases:
Tax positions in prior periods(6,808)(1,795)(2,624)
Lapse of statutes of limitations(9,989)(9,757)(9,861)
Settlements(1,010)(16)(2,332)
Unrecognized tax benefits - end of year$53,544 $60,547 $60,240 

At the end of fiscal 2022, 2021, and 2020, the reserves for unrecognized tax benefits were $60.6 million, $68.1 million, and $67.9 million inclusive of $7.1 million, $7.6 million, and $7.7 million of related reserves for interest and penalties, respectively. The Company accounts for interest and penalties related to unrecognized tax benefits as a part of its provision for taxes on earnings. If recognized, $48.7 million would impact the Company’s effective tax rate. The difference between the total amount of unrecognized tax benefits and the amounts that would impact the effective tax rate relates to amounts attributable to deferred tax assets and liabilities. These amounts are net of federal and state income taxes.
It is reasonably possible that certain federal and state tax matters may be concluded or statutes of limitations may lapse during the next twelve months. Accordingly, the total amount of unrecognized tax benefits may decrease by up to $13.5 million.

The Company is open to audit by the Internal Revenue Service under the statute of limitations for fiscal years 2019 through 2022. The Company’s state income tax returns are generally open to audit under the various statutes of limitations for fiscal years 2018 through 2022. Certain state tax returns are currently under audit by various tax authorities. The Company does not expect the results of these audits to have a material impact on the consolidated financial statements.