INCOME TAXES (Tables)

12 Months Ended

Feb. 02, 2019

INCOME TAXES

Earnings (loss) before income taxes

The following table provides details on our earnings (loss) before income taxes (in thousands):

	Fiscal Year
	2018		2017		2016
United States	$	72,397	$	90,399	$	(9,986)
Foreign		30,279		44,555		41,567
Total	$	102,676	$	134,954	$	31,581

Provision (benefit) for income taxes

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

	Fiscal Year
	2018		2017		2016
Current tax expense:
Federal	$	6,757	$	25,701	$	18,545
State		4,802		5,067		912
Foreign		15,886		13,246		11,156
Deferred tax (benefit) expense:
Federal and state		(2,929)		(21,187)		(23,135)
Foreign		(5,080)		15,424		(853)
Total	$	19,436	$	38,251	$	6,625

Effective tax rate reconciliation

	Fiscal Year
	2018		2017		2016
Federal statutory rate	21.0	%	33.7	%	35.0	%
State income taxes, net of federal benefit	4.6		1.2		(5.6)
Uncertain tax positions	(0.5)		(13.6)		1.0
Foreign tax rate differential	4.8		(2.9)		(14.3)
Amortizable tax goodwill	(0.4)		(1.1)		(5.0)
GILTI	2.0		—		—
Valuation allowance	1.2		7.1		10.3
Tax credits	(6.8)		(9.6)		(3.4)
Impact of change to permanent reinvestment of foreign earnings	1.2		12.8		—
Impact of Tax Reform Act	(5.9)		(0.2)		—
Inventory donations	(1.9)		(1.2)		(2.9)
Impact of ASU 2016-09	—		2.1		—
Adjustments to net tax accruals	—		—		4.4
Other	(0.4)		—		1.5
	18.9	%	28.3	%	21.0	%

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 2, 2019 and February 3, 2018 were as follows (in thousands):

	February 2,		February 3,
	2019		2018
Deferred tax assets:
Accrued rent and other expenses	$	36,347	$	31,574
Accrued compensation		17,667		16,475
Accrued inventory markdowns		5,654		3,616
Other		8,175		608
Tax loss and other carryforwards		32,030		28,605
Total deferred tax assets		99,873		80,878
Valuation allowance		(20,686)		(19,472)
Net deferred tax assets		79,187		61,406
Deferred tax liabilities:
Property and equipment		(47,287)		(46,089)
Capitalized inventory costs		(12,538)		(17,950)
Intangibles		(41,176)		(43,686)
Investment in foreign subsidiaries		(12,321)		(17,314)
Other		(8,863)		(5,192)
Total deferred tax liabilities		(122,185)		(130,231)
Net deferred tax liabilities	$	(42,998)	$	(68,825)

Summary of activity related to uncertain tax positions

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

	February 2,		February 3,
	2019		2018
Gross uncertain tax positions, beginning balance	$	1,154	$	19,450
Increase in tax positions for prior years		—		156
Decrease in tax positions for prior years		(535)		(17,908)
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)
Gross uncertain tax positions, ending balance	$	619	$	1,154