Academy Sports & Outdoors, Inc. Income Taxes Disclosure
| Fiscal Year Ended | ||||||||||||||||||||
| February 1, 2025 | February 3, 2024 | January 28, 2023 | ||||||||||||||||||
| Current expense: | ||||||||||||||||||||
| Federal | $ | 62,162 | $ | 125,325 | $ | 127,823 | ||||||||||||||
| State | 19,717 | 22,869 | 20,645 | |||||||||||||||||
| Foreign | 64 | 19 | 20 | |||||||||||||||||
Total current expense(a) | 81,943 | 148,213 | 148,488 | |||||||||||||||||
| Deferred expense (benefit): | ||||||||||||||||||||
| Federal | 36,750 | (3,395) | 37,971 | |||||||||||||||||
| State | 1,085 | (817) | 3,853 | |||||||||||||||||
| Foreign | — | (35) | 7 | |||||||||||||||||
Total deferred expense(a) | 37,835 | (4,247) | 41,831 | |||||||||||||||||
| Income tax expense | $ | 119,778 | $ | 143,966 | $ | 190,319 | ||||||||||||||
(a) | The Company purchased $38.1 million of energy credits under the new Inflation Reduction Act related to tax years ending February 3, 2024 and February 1, 2025 for a total purchase price of $35.8 million, resulting in a net tax benefit of $2.3 million. | |||||||||||||||||||
| Fiscal Year Ended | |||||||||||||||||
| February 1, 2025 | February 3, 2024 | January 28, 2023 | |||||||||||||||
| Federal income tax at the statutory rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
| State income tax, net of federal benefit | 3.1 | 2.5 | 2.5 | ||||||||||||||
| Nondeductible excess compensation | 0.3 | 0.5 | 0.6 | ||||||||||||||
| Excess tax benefit for share-based compensation | (0.4) | (1.1) | (0.7) | ||||||||||||||
| Tax credits | (1.3) | (0.5) | (0.1) | ||||||||||||||
| Effect of other permanent items | (0.4) | (0.7) | — | ||||||||||||||
| Effective income tax rate | 22.3 | % | 21.7 | % | 23.3 | % | |||||||||||
| February 1, 2025 | February 3, 2024 | ||||||||||
| Deferred tax assets: | |||||||||||
| Accounts receivable | $ | 643 | $ | 620 | |||||||
| Accrued liabilities and reserves | 19,824 | 18,810 | |||||||||
| Equity compensation | 9,934 | 7,672 | |||||||||
| Other | 1,389 | — | |||||||||
| Total deferred tax assets | 31,790 | 27,102 | |||||||||
| Deferred tax liabilities: | |||||||||||
| Inventory | (21,199) | (34,313) | |||||||||
| Prepaid items | (15,551) | (6,554) | |||||||||
| Property and equipment | (2,048) | (13,983) | |||||||||
| Intangible assets | (249,804) | (227,027) | |||||||||
| Other | (3) | (21) | |||||||||
| Total deferred tax liabilities | (288,605) | (281,898) | |||||||||
| Net deferred tax liability | $ | (256,815) | $ | (254,796) | |||||||
Want the next Academy Sports & Outdoors, Inc. income taxes disclosure the moment it drops?
Set a Sentinel and we'll alert you the moment Academy Sports & Outdoors, Inc.'s next filing hits EDGAR. No credit card, your email never gets sold.
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.