INCOME TAXES (Tables)

12 Months Ended

Feb. 01, 2020

INCOME TAXES

Earnings (loss) before income taxes

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

	Fiscal Year
	2019		2018		2017
United States	$	(17,678)	$	73,775	$	90,629
Foreign		44,690		42,527		31,005
Total	$	27,012	$	116,302	$	121,634

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

	Fiscal Year
	2019		2018		2017
Current tax expense:
Federal	$	4,231	$	7,295	$	25,578
State		2,196		4,853		5,055
Foreign		4,726		13,764		10,049
Deferred tax (benefit) expense:
Federal and state		(8,919)		(2,472)		(21,607)
Foreign		(589)		(5,734)		15,542
Total	$	1,645	$	17,706	$	34,617

Provision (benefit) for income taxes

	Fiscal Year
	2019		2018		2017
United States	$	(17,678)	$	73,775	$	90,629
Foreign		44,690		42,527		31,005
Total	$	27,012	$	116,302	$	121,634

Effective tax rate reconciliation

	Fiscal Year
	2019		2018		2017
Federal statutory rate	21.0	%	21.0	%	33.7	%
State income taxes, net of federal benefit	(1.5)		4.1		1.4
Uncertain tax positions	0.1		(0.5)		(15.1)
Foreign tax rate differential	(21.7)		4.3		(1.9)
Amortizable tax goodwill	—		(4.3)		(1.2)
Foreign income taxed in the U.S.	15.8		1.8		—
Return to provision	(6.5)		(4.2)		(2.5)
Valuation allowance	34.5		1.0		7.9
Tax credits	(45.6)		(6.1)		(9.9)
Impact of change to permanent reinvestment of foreign earnings	2.1		4.6		14.2
Impact of Tax Reform Act	—		(5.2)		(0.2)
Inventory donations	(7.1)		(1.7)		(1.3)
Stock compensation	9.2		—		2.3
Impact of ASC 810	3.7		0.6		—
Meals and entertainment	2.4		0.5		0.4
Other	(0.3)		(0.7)		0.7
	6.1	%	15.2	%	28.5	%

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 1, 2020 and February 2, 2019 were as follows (in thousands):

	February 1,		February 2,
	2020		2019
Deferred tax assets:
Accrued rent and other expenses	$	20,439	$	27,098
Accrued compensation		10,408		17,667
Accrued inventory reserves		8,159		5,654
Interest rate swap		8,649		1,558
Operating lease liabilities		218,257		9,249
Other		98		6,617
Tax attributes		56,955		32,030
Total deferred tax assets		322,965		99,873
Valuation allowance		(30,123)		(20,686)
Net deferred tax assets		292,842		79,187
Deferred tax liabilities:
Property and equipment		(40,656)		(47,287)
Capitalized inventory costs		(12,050)		(12,538)
Intangibles		(40,558)		(41,176)
Investment in foreign subsidiaries		(11,239)		(12,321)
Operating lease right-of-use assets		(206,023)		—
Other		(4,356)		(8,863)
Total deferred tax liabilities		(314,882)		(122,185)
Net deferred tax liabilities	$	(22,040)	$	(42,998)

Summary of activity related to uncertain tax positions

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

	February 1,		February 2,
	2020		2019
Gross uncertain tax positions, beginning balance	$	619	$	1,154
Increase in tax positions for prior years		—		—
Decrease in tax positions for prior years		—		(535)
Increase in tax positions due to business combinations		—		—
Increase in tax positions for current year		—		—
Decrease in tax positions for current year		—		—
Settlements		—		—
Lapse from statute of limitations		—		—
Gross uncertain tax positions, ending balance	$	619	$	619