Ollie's Bargain Outlet Holdings, Inc.OLLI
Ollie's Bargain Outlet Holdings, Inc. Income Taxes Disclosure
| (8) |
Income Taxes
|
The components of the income tax provision (benefit) are as follows:
|
Fiscal year ended
|
||||||||||||
|
January 31,
2026
|
February 1,
2025
|
February 3,
2024
|
||||||||||
|
(in thousands)
|
||||||||||||
|
Current:
|
||||||||||||
|
Federal
|
$
|
51,013 |
$
|
43,127 |
$
|
45,871 |
||||||
|
State
|
15,975 |
13,678 |
13,930 |
|||||||||
| 66,988 |
56,805 |
59,801 |
||||||||||
|
Deferred:
|
||||||||||||
|
Federal
|
10,095 |
8,571 |
1,915 |
|||||||||
|
State
|
(1,295 |
)
|
676 |
(670 |
)
|
|||||||
| 8,800 |
9,247 |
1,245 |
||||||||||
|
Income tax expense
|
$
|
75,788 |
$
|
66,052 |
$
|
61,046 |
||||||
As further described in Note 1 “Recently Adopted Accounting Pronouncements,” the Company has elected to prospectively adopt the guidance in ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Taxes Disclosures,” or ASU 2023-09. The following table is a reconciliation of the U.S. federal statutory rate of 21.0% to the Company’s effective income tax rate for the year ended January 31, 2026 in accordance with the guidance in ASU No. 2023-09:
|
Fiscal year ended January 31,
2026
|
||||||||
|
Amount (in
thousands)
|
Percent
|
|||||||
|
Provision for income taxes at U.S. federal statutory rate
|
$
|
66,445 |
21.0 |
%
|
||||
|
State and local income taxes, net of federal benefit(a)
|
11,597 |
3.7 |
||||||
|
Excess tax benefits related to stock-based compensation
|
(3,461 |
)
|
(1.1 |
)
|
||||
|
Tax credits
|
(2,117 |
)
|
(0.7 |
)
|
||||
|
Nontaxable/nondeductible items
|
3,324 |
1.1 |
||||||
|
Total tax provision and effective tax rate
|
$
|
75,788 |
24.0 |
%
|
||||
| (a) | During the year ended January 31, 2026, state and local income taxes in comprised greater than 50% of the tax effect in this category. |
As previously disclosed for the years ended February 1, 2025 and February 3, 2024, prior to the adoption of ASU 2023-09, the following table is a reconciliation of the U.S. federal statutory rate of 21.0% to the Company’s effective income tax rate:
|
Fiscal year ended
|
||||||||
|
February 1,
2025
|
February 3,
2024
|
|||||||
|
Statutory federal rate
|
21.0 |
%
|
21.0 |
%
|
||||
|
State taxes, net of federal benefit
|
4.3 |
4.3 |
||||||
|
Excess tax benefits related to stock-based compensation
|
(1.1 |
)
|
(0.3 |
)
|
||||
|
Other
|
0.7 |
0.2 |
||||||
| 24.9 |
%
|
25.2 |
%
|
|||||
The following table presents income taxes paid (net of refunds received) for the year ended January 31, 2026 (in thousands):
|
Income Taxes Paid
|
||||
|
U.S. Federal
|
$
|
43,222 |
||
|
U.S. State
|
||||
|
Pennsylvania
|
3,950 |
|||
|
Other
|
12,231 |
|||
|
U.S. State Subtotal
|
16,181 |
|||
|
Total
|
$
|
59,403 |
||
Deferred income taxes reflect the effect of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the carrying amounts used for income tax reporting purposes. Significant components of deferred tax assets and liabilities are as follows:
|
January 31,
2026
|
February 1,
2025
|
|||||||
|
(in thousands)
|
||||||||
|
Deferred tax assets:
|
||||||||
|
Inventory reserves
|
$
|
1,332 |
$
|
999 |
||||
|
Lease liabilities
|
169,746 |
141,654 |
||||||
|
Stock-based compensation
|
2,921 |
3,746 |
||||||
|
Deferred revenue
|
3,368 |
3,329 |
||||||
|
Other
|
3,228 |
3,548 |
||||||
|
Total deferred tax assets
|
180,595 |
153,276 |
||||||
|
Deferred tax liabilities:
|
||||||||
|
Tradename
|
(57,160 |
)
|
(57,964 |
)
|
||||
|
Depreciation
|
(48,642 |
)
|
(36,932 |
)
|
||||
|
Operating lease right-of-use assets
|
(164,717 |
)
|
(139,504 |
)
|
||||
|
Total deferred tax liabilities
|
(270,519 |
)
|
(234,400 |
)
|
||||
|
Net deferred tax liabilities
|
$
|
(89,924 |
)
|
$
|
(81,124 |
)
|
||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The
ultimate realization of deferred tax assets is dependent on the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities
(including the impact of available carryback and carryforward periods), projected future taxable income, and tax-planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable
income and the scheduled reversal of deferred liabilities over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deductible differences
as of January 31, 2026 and February 1, 2025.
Ollie’s has no material accrual for uncertain tax positions or interest or penalties related to income taxes on the Company’s consolidated balance sheets as of January 31, 2026 or February 1, 2025, and has not recognized any material uncertain tax positions or interest or penalties related to income taxes in the consolidated statements of income for 2025, 2024 or 2023.
On July 4, 2025, the U.S. federal government enacted the “One Big Beautiful Bill Act” resulting in significant changes to the federal tax code, most notably the permanent extension of certain
expiring provisions of the Tax Cuts and Jobs Act of 2017 and the restoration of favorable tax treatment for certain business provisions. The Company has evaluated and incorporated the effects of the legislation in its income tax provision for
the fifty-two weeks ended January 31, 2026.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 19, 2026 | Showing above |
| 2025 | Mar 26, 2025 | |
| 2024 | Mar 27, 2024 | |
| 2023 | Mar 24, 2023 | |
| 2022 | Mar 25, 2022 | |
| 2021 | Mar 24, 2021 | |
| 2020 | Mar 25, 2020 | |
| 2019 | Mar 29, 2019 | |
| 2018 | Apr 4, 2018 | |
| 2017 | Mar 29, 2017 | |
| 2016 | Apr 11, 2016 | |
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.