The provision for income taxes consists of:
|
| | | | | | | | | | | |
| Fiscal Years Ended |
| January 28,
2017 | | January 30,
2016 | | January 31,
2015 |
Current income tax expense: | | | | | |
Federal | $ | 55,541 |
| | $ | 78,956 |
| | $ | 87,679 |
|
State | 6,029 |
| | 9,802 |
| | 11,128 |
|
Deferred income tax expense (benefit) | (3,260 | ) | | (1,217 | ) | | (1,675 | ) |
Total | $ | 58,310 |
| | $ | 87,541 |
| | $ | 97,132 |
|
Total income tax expense for the year varies from the amount which would be provided by applying the statutory income tax rate to earnings before income taxes. The primary reasons for this difference (expressed as a percent of pre-tax income) are as follows:
|
| | | | | | | | |
| Fiscal Years Ended |
| January 28,
2017 | | January 30,
2016 | | January 31,
2015 |
| | | | | |
Statutory rate | 35.0 | % | | 35.0 | % | | 35.0 | % |
State income tax effect | 2.5 |
| | 2.8 |
| | 2.8 |
|
Tax exempt interest income | (0.1 | ) | | (0.1 | ) | | (0.1 | ) |
Other | (0.1 | ) | | (0.4 | ) | | (0.3 | ) |
Effective tax rate | 37.3 | % | | 37.3 | % | | 37.4 | % |
Deferred income tax assets and liabilities are comprised of the following:
|
| | | | | | | |
| January 28,
2017 | | January 30,
2016 |
Deferred income tax assets (liabilities): | | | |
Inventory | $ | 6,626 |
| | $ | 6,141 |
|
Stock-based compensation | 3,304 |
| | 3,596 |
|
Accrued compensation | 5,716 |
| | 4,896 |
|
Accrued store operating costs | 4,070 |
| | 1,140 |
|
Realized and unrealized loss on securities | 119 |
| | 1,173 |
|
Gift certificates redeemable | 1,887 |
| | 1,784 |
|
Allowance for doubtful accounts | 1 |
| | 3 |
|
Deferred rent liability | 13,912 |
| | 14,672 |
|
Property and equipment | (31,195 | ) | | (31,561 | ) |
Less: Valuation allowance | — |
| | (518 | ) |
Net deferred income tax asset (liability) | $ | 4,440 |
| | $ | 1,326 |
|
As of January 28, 2017 and January 30, 2016, respectively, the net deferred income tax assets of $4,440 and $1,326 are classified in "other assets." There were no unrecognized tax benefits recorded in the Company’s consolidated financial statements as of January 28, 2017 or January 30, 2016. Fiscal years 2015 and 2016 remain subject to potential federal examination. Additionally, fiscal years 2013 through 2016 are subject to potential examination by various state taxing authorities.
Valuation allowances are recorded to reduce the value of deferred tax assets to the amount that is more likely than not to be realized. As of January 28, 2017, the Company had $215 in deferred tax assets for capital loss carryforwards, which expire in periods from fiscal 2017 through fiscal 2021, and a related valuation allowance of $0. As of January 30, 2016, the Company had a deferred tax asset of $760 for capital loss carryforwards and a related valuation allowance of $(518).