Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Ulta Beauty Inc., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
Federal	315,763)	280,300)	67,724)	163,596)	137,255)	230,006)
State	69,719)	55,358)	11,534)	31,106)	29,247)	28,714)
Current	385,482)	335,658)	79,258)	194,702)	166,502)	258,720)
Federal	11,800)	(22,936)	(19,631)	1,182)	29,374)	(26,256)
State	3,854)	(2,730)	(4,377)	4,321)	4,706)	(839)
Deferred	15,654)	(25,666)	(24,008)	5,503)	34,080)	(27,095)
Provision for income taxes	401,136)	309,992)	55,250)	200,205)	200,582)	231,625)

Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Ulta Beauty Inc. current increased from 2021 to 2022 and from 2022 to 2023.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Ulta Beauty Inc. deferred decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Ulta Beauty Inc. provision for income taxes increased from 2021 to 2022 and from 2022 to 2023.

Ulta Beauty Inc., effective income tax rate (EITR) reconciliation

	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
Federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	33.70%
State effective rate, net of federal tax benefit	3.60%	3.30%	2.90%	3.10%	3.10%	2.40%
Executive compensation limitation	0.30%	0.50%	1.20%	0.20%	0.20%	0.00%
Re-measurement of deferred tax liabilities	0.00%	0.00%	0.00%	0.00%	0.00%	-4.90%
Excess deduction of stock compensation	-0.20%	-0.50%	-0.30%	-1.10%	-0.60%	-1.20%
Other	-0.30%	-0.40%	-0.90%	-1.10%	-0.40%	-0.60%
Effective tax rate	24.40%	23.90%	23.90%	22.10%	23.30%	29.40%

Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

Ulta Beauty Inc., components of deferred tax assets and liabilities

US$ in thousands

	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
Operating lease liability	487,824)	471,687)	484,780)	496,977)	—)	—)
Reserves not currently deductible	52,133)	47,059)	32,590)	35,626)	30,669)	23,789)
Accrued liabilities	39,989)	33,289)	31,056)	27,363)	34,391)	14,625)
Employee benefits	27,395)	24,355)	23,687)	22,907)	18,491)	15,273)
Property and equipment	16,600)	1,710)	—)	—)	—)	—)
Credit carryforwards	338)	334)	291)	224)	237)	343)
NOL carryforwards	265)	303)	255)	288)	413)	—)
Inventory valuation	—)	—)	8,386)	4,021)	4,107)	847)
Other	—)	—)	—)	1,019)	—)	—)
Deferred tax assets	624,544)	578,737)	581,045)	588,425)	88,308)	54,877)
Operating lease asset	(591,007)	(561,137)	(561,605)	(567,198)	—)	—)
Prepaid expenses	(69,248)	(45,815)	(46,013)	(45,354)	(39,915)	(10,552)
Receivables not currently includable	(15,644)	(5,398)	(3,720)	(2,863)	(1,449)	—)
Inventory valuation	(1,538)	(3,490)	—)	—)	—)	—)
Intangibles	(145)	(366)	(585)	(807)	(1,018)	—)
Property and equipment	—)	—)	(32,812)	(61,570)	(69,265)	(54,210)
Deferred rent obligation	—)	—)	—)	—)	(60,525)	(49,518)
Other	(2,308)	(2,224)	(1,669)	—)	—)	—)
Deferred tax liabilities	(679,890)	(618,430)	(646,404)	(677,792)	(172,172)	(114,280)
Net deferred tax asset (liability)	(55,346)	(39,693)	(65,359)	(89,367)	(83,864)	(59,403)

Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).

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Item	Description	The company
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Ulta Beauty Inc. deferred tax assets decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Net deferred tax asset (liability)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Ulta Beauty Inc. net deferred tax asset (liability) increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Ulta Beauty Inc., deferred tax assets and liabilities, classification

US$ in thousands

		Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
	Deferred tax liabilities	55,346)	39,693)	65,359)	89,367)	83,864)	59,403)

Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).

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Item	Description	The company
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Ulta Beauty Inc. deferred tax liabilities decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Ulta Beauty Inc., adjustments to financial statements

US$ in thousands

	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
Adjustment to Total Liabilities
Total liabilities (as reported)	3,410,600)	3,229,006)	3,090,420)	2,961,778)	1,370,954)	1,134,470)
Less: Noncurrent deferred tax liabilities, net	55,346)	39,693)	65,359)	89,367)	83,864)	59,403)
Total liabilities (adjusted)	3,355,254)	3,189,313)	3,025,061)	2,872,411)	1,287,090)	1,075,067)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	1,959,811)	1,535,373)	1,999,549)	1,902,094)	1,820,218)	1,774,217)
Less: Net deferred tax assets (liabilities)	(55,346)	(39,693)	(65,359)	(89,367)	(83,864)	(59,403)
Stockholders’ equity (adjusted)	2,015,157)	1,575,066)	2,064,908)	1,991,461)	1,904,082)	1,833,620)
Adjustment to Net Income
Net income (as reported)	1,242,408)	985,837)	175,835)	705,945)	658,559)	555,234)
Add: Deferred income tax expense (benefit)	15,654)	(25,666)	(24,008)	5,503)	34,080)	(27,095)
Net income (adjusted)	1,258,062)	960,171)	151,827)	711,448)	692,639)	528,139)

Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).

Ulta Beauty Inc., Financial Data: Reported vs. Adjusted

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Ulta Beauty Inc., adjusted financial ratios

	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
Net Profit Margin
Reported net profit margin	12.17%	11.42%	2.86%	9.54%	9.80%	9.44%
Adjusted net profit margin	12.32%	11.12%	2.47%	9.62%	10.31%	8.98%
Financial Leverage
Reported financial leverage	2.74	3.10	2.55	2.56	1.75	1.64
Adjusted financial leverage	2.67	3.02	2.46	2.44	1.68	1.59
Return on Equity (ROE)
Reported ROE	63.39%	64.21%	8.79%	37.11%	36.18%	31.29%
Adjusted ROE	62.43%	60.96%	7.35%	35.72%	36.38%	28.80%
Return on Assets (ROA)
Reported ROA	23.13%	20.69%	3.45%	14.51%	20.64%	19.09%
Adjusted ROA	23.43%	20.15%	2.98%	14.63%	21.70%	18.16%

Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Ulta Beauty Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Ulta Beauty Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Ulta Beauty Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Ulta Beauty Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Ulta Beauty Inc., Financial Ratios: Reported vs. Adjusted

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	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,242,408)	985,837)	175,835)	705,945)	658,559)	555,234)
Net sales	10,208,580)	8,630,889)	6,151,953)	7,398,068)	6,716,615)	5,884,506)
Profitability Ratio
Net profit margin¹	12.17%	11.42%	2.86%	9.54%	9.80%	9.44%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	1,258,062)	960,171)	151,827)	711,448)	692,639)	528,139)
Net sales	10,208,580)	8,630,889)	6,151,953)	7,398,068)	6,716,615)	5,884,506)
Profitability Ratio
Adjusted net profit margin²	12.32%	11.12%	2.47%	9.62%	10.31%	8.98%

Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Net sales
= 100 × 1,242,408 ÷ 10,208,580 = 12.17%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Net sales
= 100 × 1,258,062 ÷ 10,208,580 = 12.32%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Ulta Beauty Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets	5,370,411)	4,764,379)	5,089,969)	4,863,872)	3,191,172)	2,908,687)
Stockholders’ equity	1,959,811)	1,535,373)	1,999,549)	1,902,094)	1,820,218)	1,774,217)
Solvency Ratio
Financial leverage¹	2.74	3.10	2.55	2.56	1.75	1.64
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Total assets	5,370,411)	4,764,379)	5,089,969)	4,863,872)	3,191,172)	2,908,687)
Adjusted stockholders’ equity	2,015,157)	1,575,066)	2,064,908)	1,991,461)	1,904,082)	1,833,620)
Solvency Ratio
Adjusted financial leverage²	2.67	3.02	2.46	2.44	1.68	1.59

Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).

2023 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 5,370,411 ÷ 1,959,811 = 2.74

² Adjusted financial leverage = Total assets ÷ Adjusted stockholders’ equity
= 5,370,411 ÷ 2,015,157 = 2.67

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Ulta Beauty Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,242,408)	985,837)	175,835)	705,945)	658,559)	555,234)
Stockholders’ equity	1,959,811)	1,535,373)	1,999,549)	1,902,094)	1,820,218)	1,774,217)
Profitability Ratio
ROE¹	63.39%	64.21%	8.79%	37.11%	36.18%	31.29%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	1,258,062)	960,171)	151,827)	711,448)	692,639)	528,139)
Adjusted stockholders’ equity	2,015,157)	1,575,066)	2,064,908)	1,991,461)	1,904,082)	1,833,620)
Profitability Ratio
Adjusted ROE²	62.43%	60.96%	7.35%	35.72%	36.38%	28.80%

Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).

2023 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,242,408 ÷ 1,959,811 = 63.39%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 1,258,062 ÷ 2,015,157 = 62.43%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Ulta Beauty Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.

	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,242,408)	985,837)	175,835)	705,945)	658,559)	555,234)
Total assets	5,370,411)	4,764,379)	5,089,969)	4,863,872)	3,191,172)	2,908,687)
Profitability Ratio
ROA¹	23.13%	20.69%	3.45%	14.51%	20.64%	19.09%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	1,258,062)	960,171)	151,827)	711,448)	692,639)	528,139)
Total assets	5,370,411)	4,764,379)	5,089,969)	4,863,872)	3,191,172)	2,908,687)
Profitability Ratio
Adjusted ROA²	23.43%	20.15%	2.98%	14.63%	21.70%	18.16%

Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 1,242,408 ÷ 5,370,411 = 23.13%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 1,258,062 ÷ 5,370,411 = 23.43%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Ulta Beauty Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Ulta Beauty Inc. (NASDAQ:ULTA)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Ulta Beauty Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Ulta Beauty Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)