BUCKLE INC Income Taxes Disclosure
| Fiscal Years Ended | |||||||||||||||||
| February 1, 2025 | February 3, 2024 | January 28, 2023 | |||||||||||||||
| Current income tax expense: | |||||||||||||||||
| Federal | $ | 52,846 | $ | 59,652 | $ | 68,003 | |||||||||||
| State | 8,826 | 10,733 | 11,285 | ||||||||||||||
| Deferred income tax expense (benefit) | 637 | (1,089) | 1,142 | ||||||||||||||
| Total | $ | 62,309 | $ | 69,296 | $ | 80,430 | |||||||||||
| Fiscal Years Ended | |||||||||||||||||
| February 1, 2025 | February 3, 2024 | January 28, 2023 | |||||||||||||||
| Statutory rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
| State income tax effect | 2.7 | 2.9 | 2.7 | ||||||||||||||
| Other | 0.5 | 0.1 | 0.3 | ||||||||||||||
| Effective tax rate | 24.2 | % | 24.0 | % | 24.0 | % | |||||||||||
| February 1, 2025 | February 3, 2024 | ||||||||||
| Deferred income tax assets (liabilities): | |||||||||||
| Inventory | $ | 5,641 | $ | 5,458 | |||||||
| Stock-based compensation | 5,657 | 5,417 | |||||||||
| Accrued compensation | 7,002 | 6,318 | |||||||||
| Accrued store operating costs | 2,880 | 2,880 | |||||||||
| Unrealized (gain)/loss on securities | (624) | (207) | |||||||||
| Gift certificates redeemable | 1,188 | 1,015 | |||||||||
| Deferred rent liability | — | — | |||||||||
| Property and equipment | (21,744) | (19,802) | |||||||||
| Operating lease right-of-use assets | (69,550) | (67,395) | |||||||||
| Operating lease liabilities | 78,303 | 75,697 | |||||||||
| Capitalized research and development costs | 51 | 60 | |||||||||
| Net deferred income tax asset | $ | 8,804 | $ | 9,441 | |||||||
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.