The deferred tax assets and liabilities consisted of the following:
|
| | | | | | | |
| January 31, |
(in thousands) | 2017 | | 2016 |
Deferred tax assets: | | | |
Allowance for doubtful accounts | $ | 64,642 |
| | $ | 57,585 |
|
Deferred rent | 9,185 |
| | 7,479 |
|
Deferred gains on sale-leaseback transactions | 3,014 |
| | 3,295 |
|
Deferred revenue | 1,695 |
| | 4,168 |
|
Inventories | 3,568 |
| | 3,494 |
|
Stock-based compensation | 1,840 |
| | 1,845 |
|
State net operating loss carryforwards | 992 |
| | 1,324 |
|
State margin tax | 1,039 |
| | 1,008 |
|
Other | 5,255 |
| | 3,422 |
|
Total deferred tax assets | 91,230 |
| | 83,620 |
|
Deferred tax liabilities: | |
| | |
|
Sales tax receivable | (7,481 | ) | | (9,316 | ) |
Property and equipment | (10,319 | ) | | (1,717 | ) |
Other | (1,988 | ) | | (2,368 | ) |
Total deferred tax liabilities | (19,788 | ) | | (13,401 | ) |
Net deferred tax asset | $ | 71,442 |
| | $ | 70,219 |
|
Our state net operating loss carryforwards begin to expire in the fiscal year ending January 31, 2028. Realization of our net deferred tax asset ultimately depends on the existence of sufficient taxable income, which may include future taxable income, taxable income in prior carryback years, and tax planning strategies. Based on the weight of available evidence at January 31, 2017, we believe that it is more likely than not that we will generate sufficient taxable income, in addition to realize available taxable income in prior carryback years, to utilize all of our net deferred tax asset.
We had no uncertain tax positions at either January 31, 2017 or 2016.
Provision for income taxes consisted of the following:
|
| | | | | | | | | | | |
| Year ended January 31, |
(in thousands) | 2017 | | 2016 | | 2015 |
Current: | | | | | |
Federal | $ | (11,251 | ) | | $ | 32,820 |
| | $ | 54,959 |
|
State | 3,519 |
| | 2,242 |
| | 2,570 |
|
Total current | (7,732 | ) | | 35,062 |
| | 57,529 |
|
Deferred: | |
| | |
| | |
|
Federal | (1,435 | ) | | (16,032 | ) | | (23,712 | ) |
State | 212 |
| | (642 | ) | | (1,828 | ) |
Total deferred | (1,223 | ) | | (16,674 | ) | | (25,540 | ) |
Provision for income taxes | $ | (8,955 | ) | | $ | 18,388 |
| | $ | 31,989 |
|
A reconciliation of the (benefit) provision for income taxes at the U.S. federal statutory tax rate and the total tax (benefit) provision for each of the periods presented in the statements of operations follows:
|
| | | | | | | | | | | |
| Year ended January 31, |
(in thousands) | 2017 | | 2016 | | 2015 |
Income tax (benefit) provision at U.S. federal statutory rate | $ | (12,081 | ) | | $ | 17,235 |
| | $ | 31,676 |
|
State income taxes, net of federal benefit | 2,363 |
| | 1,180 |
| | 1,893 |
|
Change in valuation allowance | — |
| | — |
| | (2,180 | ) |
Deferred tax adjustment | 771 |
| | — |
| | — |
|
Other | (8 | ) | | (27 | ) | | 600 |
|
| $ | (8,955 | ) | | $ | 18,388 |
| | $ | 31,989 |
|
As of January 31, 2014, we had a valuation allowance related to individual state net operating loss carryforwards due to the cumulative jurisdiction losses incurred over the three-year period then ended. Based upon our review of all evidence in existence at January 31, 2015, the valuation allowance was reversed as we believed it is more-likely-than-not that all established deferred tax assets will be fully realized based primarily on carry backs, the reversal of existing taxable temporary differences and projected future taxable income.
Federal tax returns for fiscal years subsequent to January 31, 2013, remain open for examination. State returns subject to examination vary depending upon the state. Generally, state tax returns for fiscal years subsequent to January 31, 2013 are subject to state examination.