INCOME TAXES (Tables)

12 Months Ended

Feb. 03, 2018

INCOME TAXES

Earnings (loss) before income taxes

Earnings (loss) before income taxes (in thousands):

	Fiscal Year
	2017		2016		2015
United States	$	90,399	$	(9,986)	$	(1,242,022)
Foreign		44,555		41,567		46,261
Total	$	134,954	$	31,581	$	(1,195,761)

Provision (benefit) for income taxes

The provision (benefit) for income taxes consists of the following (in thousands):

	Fiscal Year
	2017		2016		2015
Current tax expense:
Federal	$	25,701	$	18,545	$	5,615
State		5,067		912		1,877
Foreign		13,246		11,156		8,307
Deferred tax (benefit) expense:
Federal and state		(21,187)		(23,135)		(185,440)
Foreign		15,424		(853)		599
Total	$	38,251	$	6,625	$	(169,042)

Effective tax rate reconciliation

A reconciliation of the statutory federal income tax rate to our effective tax rate is as follows:

	Fiscal Year
	2017		2016		2015
Federal statutory rate	33.7	%	35.0	%	(35.0)	%
State income taxes, net of federal benefit	1.2		(5.6)		(2.0)
Uncertain tax positions	(13.6)		1.0		0.1
Foreign tax rate differential	(2.9)		(14.3)		(0.5)
Amortizable tax goodwill	(1.1)		(5.0)		(0.1)
Goodwill impairment	—		—		22.5
Valuation allowance	7.1		10.3		0.5
Tax credits	(9.6)		(3.4)		—
Impact of change to permanent reinvestment of foreign earnings	12.8		—		—
Impact of Tax Reform Act	(0.2)		—		—
Impact of ASU 2016-09	2.1		—		—
Adjustments to net tax accruals	—		4.4		0.5
Other	(1.2)		(1.4)		(0.1)
	28.3	%	21.0	%	(14.1)	%

Schedule of deferred tax assets and liabilities and the related temporary differences

Total deferred tax assets and liabilities and the related temporary differences as of February 3, 2018 and January 28, 2017 were as follows (in thousands):

	February 3,		January 28,
	2018		2017
Deferred tax assets:
Accrued rent and other expenses	$	31,574	$	53,851
Accrued compensation		16,475		28,530
Accrued inventory markdowns		3,616		8,330
Other		608		2,902
Tax loss and other carryforwards		28,605		23,361
Total deferred tax assets		80,878		116,974
Valuation allowance		(19,472)		(9,830)
Net deferred tax assets		61,406		107,144
Deferred tax liabilities:
Property and equipment		(46,089)		(79,217)
Capitalized inventory costs		(17,950)		(30,977)
Intangibles		(43,686)		(65,776)
Investment in foreign subsidiaries		(17,314)		—
Other		(5,192)		(1,770)
Total deferred tax liabilities		(130,231)		(177,740)
Net deferred tax liabilities	$	(68,825)	$	(70,596)

Summary of activity related to uncertain tax positions

The following table summarizes the activity related to our uncertain tax positions (in thousands):

	February 3,		January 28,
	2018		2017
Gross uncertain tax positions, beginning balance	$	19,450	$	20,868
Increase in tax positions for prior years		156		2,343
Decrease in tax positions for prior years		(17,908)		(2,321)
Increase in tax positions due to business combinations		—		—
Increase in tax positions for current year		300		—
Decrease in tax positions for current year		—		—
Settlements		(350)		—
Lapse from statute of limitations		(494)		(1,440)
Gross uncertain tax positions, ending balance	$	1,154	$	19,450