v3.26.1
Income Taxes (Tables)
 12 Months Ended
Feb. 01, 2026
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) The following table provides additional information about the Company’s income tax provision (benefit) (in millions):
Fiscal Year
202520242023
Current
Federal$1.3 $4.1 $3.3 
State10.6 12.4 5.4 
Total current provision$11.9 $16.5 $8.7 
Deferred
Federal$31.0 $(210.0)$— 
State(2.4)(47.5)— 
Total deferred provision (benefit)28.6 (257.5)— 
Income tax provision (benefit)$40.5 $(241.0)$8.7 
Schedule of Effective Income Tax Rate Reconciliation
The Company’s consolidated income (loss) from continuing operations before income taxes is primarily attributable to its U.S. operations. A reconciliation of the U.S. federal statutory rate to the Company’s effective income tax rate for the fiscal year ended February 1, 2026, pursuant to the disclosure requirements of ASU 2023-09 is as follows (in millions, except percentages):

Fiscal Year
2025
U.S. federal tax at statutory rate$55.3 21.0 %
State and local income tax, net of federal effect (1)
6.5 2.5 %
Foreign tax effects7.0 2.7 %
Tax credits
Research and development tax credit(27.0)(10.3)%
Other tax credits(1.5)(0.6)%
Nontaxable or nondeductible items
Share-based compensation(15.9)(6.0)%
Executive compensation7.3 2.8 %
Others2.3 0.8 %
Changes in unrecognized tax benefits6.5 2.5 %
Effective tax rate$40.5 15.4 %
(1) State and local taxes in California and Florida made up greater than 50% of the tax effect in this category

A reconciliation of the U.S. federal statutory rate to the Company’s effective income tax rate for Fiscal Years 2024 and 2023, prior to the adoption of ASU 2023-09, is as follows:

Fiscal Year
20242023
Federal statutory rate21.0 %21.0 %
State income taxes, net of federal tax benefits8.3 %(4.1)%
Foreign earnings, net of taxes1.8 %2.8 %
Tax credits(23.5)%(43.7)%
Share-based compensation and other nondeductible expenses5.2 %16.8 %
Others(5.3)%0.9 %
Provision to return(4.5)%— %
Change in valuation allowance(176.3)%24.2 %
Changes in unrecognized tax benefits14.4 %— %
Effective rate(158.9)%17.9 %
Schedule of Deferred Tax Assets and Liabilities
The temporary differences which comprise the Company’s deferred taxes are as follows for the periods presented (in millions):
As of
February 1, 2026February 2, 2025
Deferred tax assets:
Operating lease liabilities $144.3 $139.2 
Inventories14.8 13.2 
Share-based compensation25.2 12.5 
Accrued expenses and reserves18.8 15.5 
Net operating loss carryforwards54.6 73.7 
Tax credit carryforwards86.8 60.5 
Capitalized research expenditures128.2 164.0 
Others14.2 7.6 
Total deferred tax assets486.9 486.2 
Less: valuation allowance27.4 21.8 
Deferred tax assets, net of valuation allowance459.5 464.4 
Deferred tax liabilities:
Operating lease right-of-use assets121.2 116.9 
Depreciation94.9 80.5 
Prepaids and Others11.2 9.5 
Total deferred tax liabilities227.3 206.9 
Net deferred tax assets$232.2 $257.5 
Schedule of Valuation Allowance
The following summarizes the activity related to valuation allowances on deferred tax assets (in millions):

Fiscal Year
202520242023
Valuation allowance, as of beginning of period$21.8 $281.1 $230.7 
Valuation allowances established8.0 16.4 50.4 
Changes to existing valuation allowances(2.4)(275.7)— 
Valuation allowance, as of end of period$27.4 $21.8 $281.1 
Schedule of Operating Loss Carryforwards
The table below presents deferred tax assets with respect to NOL and tax credit carryforwards, before any valuation allowance, recorded on the consolidated balance sheets (in millions):

Deferred Tax Assets
Expiration Date
As of February 1, 2026
NOL carryforwards
Foreign
2043 - 2044
$25.2 
State2026 - 20435.7 
Federal and state
Indefinite
23.7 
Total NOL carryforwards$54.6 
Tax credit carryforwards
Federal and state2026 - 2048$86.8 
Total tax credit carryforwards
$86.8 
Schedule of Tax Credit Carryforwards
The table below presents deferred tax assets with respect to NOL and tax credit carryforwards, before any valuation allowance, recorded on the consolidated balance sheets (in millions):

Deferred Tax Assets
Expiration Date
As of February 1, 2026
NOL carryforwards
Foreign
2043 - 2044
$25.2 
State2026 - 20435.7 
Federal and state
Indefinite
23.7 
Total NOL carryforwards$54.6 
Tax credit carryforwards
Federal and state2026 - 2048$86.8 
Total tax credit carryforwards
$86.8 
Schedule of Unrecognized Tax Benefits Roll Forward
The following table provides a summary of gross unrecognized tax benefits (in millions):

Fiscal Year
20252024
Beginning balance$40.1 $18.3 
Increases related to tax positions taken during the current year
7.5 8.2 
Increases related to tax positions taken during the prior year
4.2 13.6 
Decreases related to expiration of statute of limitations(3.4)— 
Ending balance$48.4 $40.1