Income Taxes (Tables)

12 Months Ended

Jan. 30, 2021

Income Taxes

Summary of distribution between domestic and foreign earnings (loss) before income taxes

The following table summarizes our distribution between domestic and foreign earnings (loss) before income taxes and the provision (benefit) for income taxes (in thousands):

	Fiscal		Fiscal		Fiscal
	2020		2019		2018
Earnings from continuing operations before income taxes:
Domestic	$	(129,129)	$	86,528	$	85,050
Foreign		3,252		5,902		3,259
Earnings from continuing operations before income taxes	$	(125,877)	$	92,430	$	88,309
Income taxes:
Current:
Federal	$	(11,498)	$	18,565	$	12,543
State		(1,060)		5,459		4,474
Foreign		735		1,650		1,979
		(11,823)		25,674		18,996
Deferred—Domestic		(17,780)		(1,870)		3,141
Deferred—Foreign		(582)		133		(119)
Income taxes	$	(30,185)	$	23,937	$	22,018

Summary of provision (benefit) for income taxes

The following table summarizes our distribution between domestic and foreign earnings (loss) before income taxes and the provision (benefit) for income taxes (in thousands):

	Fiscal		Fiscal		Fiscal
	2020		2019		2018
Earnings from continuing operations before income taxes:
Domestic	$	(129,129)	$	86,528	$	85,050
Foreign		3,252		5,902		3,259
Earnings from continuing operations before income taxes	$	(125,877)	$	92,430	$	88,309
Income taxes:
Current:
Federal	$	(11,498)	$	18,565	$	12,543
State		(1,060)		5,459		4,474
Foreign		735		1,650		1,979
		(11,823)		25,674		18,996
Deferred—Domestic		(17,780)		(1,870)		3,141
Deferred—Foreign		(582)		133		(119)
Income taxes	$	(30,185)	$	23,937	$	22,018

Schedule of reconciliations of the United States federal statutory income tax rates and the entity's effective tax rates

	Fiscal		Fiscal		Fiscal
	2020		2019		2018
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State income taxes—net of federal income tax benefit	3.6	%	4.4	%	4.6	%
Impact of foreign operations rate differential	(0.2)	%	0.2	%	0.7	%
Impairment of non-deductible Southern Tide goodwill	(3.7)	%	—	%	—	%
Change in reserve for uncertain tax positions	(2.5)	%	—	%	—	%
Rate benefit from NOL carryback to pre-U.S. Tax Reform periods due to the CARES Act	5.5	%	—	%	—	%
Other, net	0.3	%	0.3	%	(1.4)	%
Effective tax rate for continuing operations	24.0	%	25.9	%	24.9	%

Schedule of deferred tax assets and liabilities

Deferred tax assets and liabilities included in our consolidated balance sheets are comprised of the following (in thousands):

	January 30,		February 1,
	2021		2020
Deferred Tax Assets:
Inventories	$	16,338	$	13,067
Accrued compensation and benefits		8,759		8,977
Receivable allowances and reserves		2,109		993
Operating lease liabilities		73,917		85,969
Operating loss and other carry-forwards		4,617		3,171
Other, net		3,686		1,546
Deferred tax assets		109,426		113,723
Deferred Tax Liabilities:
Operating lease assets		(66,341)		(82,186)
Depreciation and amortization		(9,682)		(8,076)
Acquired intangible assets		(25,047)		(34,019)
Deferred tax liabilities		(101,070)		(124,281)
Valuation allowance		(5,668)		(5,213)
Net deferred tax asset (liability)	$	2,688	$	(15,771)

Schedule of deferred income taxes included in the line items in the entity's consolidated balance sheets

The amounts of deferred income taxes included in our consolidated balance sheets are as follows (in thousands):

	January 30,		February 1,
	2021		2020
Assets:
Deferred tax assets	$	2,688	$	769
Liabilities:
Deferred tax liabilities		—		(16,540)
Net deferred tax asset (liability)	$	2,688	$	(15,771)

Schedule of reconciliation of changes in gross amount of unrecognized tax benefits

A reconciliation of the changes in the gross amount of unrecognized tax benefits, which are included in other non-current liabilities, is as follows (in thousands):

	Fiscal 2020		Fiscal 2019		Fiscal 2018
Balance of unrecognized tax benefits at beginning of year	$	1,212	$	975	$	335
Increase related to prior period tax positions		303		—		206
Decrease related to prior period tax positions		(1)		(27)		—
Increase related to current period tax positions		3,960		287		440
Decrease related to settlements with taxing authorities		—		—		—
Decrease related to lapse of statute of limitations		(213)		(23)		(6)
Balance of unrecognized tax benefits at end of year	$	5,261	$	1,212	$	975