INCOME TAXES (Tables)

12 Months Ended

Feb. 03, 2018

Income Tax Expense (Benefit), Intraperiod Tax Allocation Table

Total income taxes were allocated as follows:



	Year Ended
(in millions)	February 3, 2018			January 28, 2017		January 30, 2016
Income from continuing operations	$	(10.3	)	$	433.2	$	165.8
Shareholders' equity, tax benefit on exercises/vesting of equity-based compensation	—			—		(12.8		)
	$	(10.3	)	$	433.2	$	153.0

Income tax provision (benefit) Table

The provision for income taxes consists of the following:



	Year Ended
	February 3,			January 28,			January 30,
(in millions)	2018			2017			2016
Federal - current	$	439.3		$	480.5		$	126.9
State - current	23.8			79.5			14.6
Foreign - current	0.3			0.8			0.5
Total current	$	463.4		$	560.8		$	142.0

Federal - deferred	(456.0		)	(37.7		)	7.4
State - deferred	(17.7		)	(89.9		)	3.3
Foreign - deferred	—			—			13.1
Total deferred	$	(473.7	)	$	(127.6	)	$	23.8

Federal statutory tax rate reconciliation Table

A reconciliation of the statutory federal income tax rate and the effective rate follows:



	Year Ended
	February 3, 2018		January 28, 2017		January 30, 2016
Statutory tax rate	33.7	%	35.0	%	35.0	%
Effect of:
State and local income taxes, net of federal income tax benefit	2.5		3.0		3.0
Work Opportunity Tax Credit	(1.3	)	(1.6	)	(3.8	)
State tax election	—		(1.4	)	—
Deferred tax rate change	(0.6	)	(1.6	)	—
Incremental tax benefit of exercises/vesting of equity-based compensation	(0.8	)	(0.6	)	—
International taxes	—		—		(4.5	)
Change in valuation allowance	(0.1	)	0.1		4.1
Nondeductible acquisition costs	—		—		1.5
Tax Cuts and Jobs Act	(33.0	)	—		—
Other, net	(1.0	)	(0.3	)	1.7
Effective tax rate	(0.6	)%	32.6	%	37.0	%

Components of Deferred Tax Assets and Liabilities Table

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. All deferred tax assets and liabilities are classified on the accompanying consolidated balance sheets as noncurrent in accordance with ASU 2015-17 "Income Taxes (Topic 740)" and are netted based on taxing jurisdiction.

Significant components of the Company's net deferred tax assets (liabilities) follow:



(in millions)	February 3, 2018			January 28, 2017
Deferred tax assets:
Deferred rent	$	42.7		$	59.9
Accrued expenses	17.8			71.4
Net operating losses and credit carryforwards	75.6			71.4
Accrued compensation expense	23.2			71.3
State tax election	22.8			20.4
Other	—			3.4
Total deferred tax assets	182.1			297.8
Valuation allowance	(38.6		)	(49.7		)
Deferred tax assets, net	143.5			248.1
Deferred tax liabilities:
Property and equipment	(218.5		)	(331.3		)
Other intangibles	(880.5		)	(1,368.7		)
Inventory	(27.1		)	(7.0		)
Other	(2.6		)	—
Total deferred tax liabilities	(1,128.7		)	(1,707.0		)
Net deferred tax liability	$	(985.2	)	$	(1,458.9	)

Reconciliation of Unrecognized Tax Benefits Table

The following is a reconciliation of the Company’s total gross unrecognized tax benefits:



(in millions)	February 3, 2018			January 28, 2017
Beginning Balance	$	71.2		$	71.4
Additions, based on tax positions related to current year	2.5			5.9
Additions for tax positions of prior years	9.8			3.7
Reductions for tax positions of prior years	(31.7		)	—
Settlements	(2.9		)	(2.2		)
Lapses in statutes of limitation	(5.1		)	(7.6		)
Ending balance	$	43.8		$	71.2