Income Taxes (Tables)

12 Months Ended

Jan. 28, 2023

The following table presents the (benefit) provision for income taxes from continuing operations:


	Fiscal
	2022		2021		2020
Current tax (benefit) expense:
Federal	$	(2.1)	$	(13.2)	$	(154.9)
State	4.0		7.6		(1.5)
Foreign	11.7		7.8		18.8
	13.6		2.2		(137.6)
Deferred tax (benefit) expense:
Federal	—		—		45.5
State	—		—		7.6
Foreign	(2.6)		(16.3)		29.2
	(2.6)		(16.3)		82.3
Total income tax expense (benefit)	$	11.0	$	(14.1)	$	(55.3)

Schedule of Components of Earnings Before Income Tax expense

The following table presents the components of loss from continuing operations before income taxes:


	Fiscal
	2022		2021		2020
United States	$	(272.7)	$	(362.7)	$	(224.6)
International	(29.4)		(32.7)		(45.3)
Total	$	(302.1)	$	(395.4)	$	(269.9)

Schedule of Difference in Income Tax Provided and Amounts Determined by Applying Statutory Rate to Income Before Income Taxes

The following is a reconciliation of income tax expense (benefit) from continuing operations computed at the U.S. Federal statutory tax rate to income tax (benefit) expense reported in our Consolidated Statements of Operations:


	Fiscal
	2022		2021		2020
Federal statutory tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal effect	2.3		3.1		5.0
Foreign income tax rate differential	0.2		0.4		(3.9)
Change in valuation allowance	(27.2)		(33.6)		(41.8)
Change in unrecognized tax benefits	(0.4)		(1.4)		—
Withholding tax expense	(0.3)		(0.3)		(0.3)
Stock-based compensation	(0.2)		6.4		—
U.S. impact of foreign operations	—		—		7.6
Incremental benefit of net operating loss carryback	1.1		3.6		23.5
Loss on worthless debt and related investment	—		5.5		10.7
Other (including permanent differences)(1)	(0.1)		(1.1)		(1.3)
	(3.6)	%	3.6	%	20.5	%

__________________

(1) Other is comprised of numerous items, none of which is individually or in the aggregate greater than 5% of income tax expense calculated at the statutory rate.

Schedule of Components of Deferred Tax Assets and Liabilities

Differences between financial accounting principles and tax laws cause differences between the bases of certain assets and liabilities for financial reporting purposes and tax purposes. The tax effects of these differences, to the extent they are temporary, are recorded as deferred tax assets and liabilities which are presented in the table below.


	January 28, 2023		January 29, 2022
Deferred tax asset:
Inventory	$	6.8	$	8.6
Deferred rents	1.0		0.9
Operating lease liabilities	162.9		180.0
Stock-based compensation	10.0		4.7
Net operating losses and other loss carryforwards	280.7		219.8
Customer liabilities	34.3		15.1
Credits	25.2		25.1
Accrued compensation	6.4		9.3
Intangible assets	13.9		25.5
Goodwill	0.7		0.9
Other	48.4		48.1
Total deferred tax assets	590.3		538.0
Valuation allowance	(408.5)		(338.3)
Total deferred tax assets, net	181.8		199.7
Deferred tax liabilities:
Property and equipment	(4.8)		(5.4)
Prepaid expenses	(0.2)		(0.9)
Operating lease right-of-use assets	(157.8)		(177.1)
Other	(0.8)		—
Total deferred tax liabilities	(163.6)		(183.4)
Net deferred tax assets	$	18.2	$	16.3
The above amounts are reflected in the consolidated financial statements as:
Deferred income taxes - assets	$	18.3	$	16.3
Deferred income taxes - liabilities	$	—	$	—

Schedule of Reconciliation of Changes in Gross Balances of Unrecognized Tax Benefits

The following table presents a reconciliation of the changes in the gross balances of unrecognized tax benefits:


	Fiscal
	2022		2021		2020
Beginning balance of unrecognized tax benefits	$	9.1	$	5.7	$	6.5
Increases related to current period tax positions	0.1		4.0		—
Increases related to prior period tax positions	1.6		0.7		1.2

Reductions as a result of a lapse of the applicable statute of limitations	(1.3)		(0.8)		(0.6)
Reductions as a result of settlements with taxing authorities	—		(0.5)		(1.4)
Ending balance of unrecognized tax benefits	$	9.5	$	9.1	$	5.7