Income Taxes

6 Months Ended

Jul. 28, 2012

Income Taxes [Abstract]

Income Taxes

(7) Income Taxes

Income tax expense for the three months ended July 28, 2012 was $14.9 million, or 35.2% of pre-tax income, compared to $12.8 million, or 33.9%, for the three months ended July 30, 2011. The increase in the rate was due primarily to the $0.7 million release of a portion of the valuation allowance in the prior year due to projected utilization of state income tax net operating losses.

Income tax expense for the six months ended July 28, 2012 was $37.5 million, or 35.7% of pre-tax income, compared to $25.6 million, or 31.0%, for the six months ended July 30, 2011. The increase in the rate was due primarily to a $2.3 million reduction in the accrual for uncertain tax reserves during the first quarter of fiscal year 2012, which was the result of expired state related statutes of limitations.

Due to a change in an IRS audit policy regarding capitalization of costs relating to tangible property, the Company, during the first quarter of fiscal year 2013, reduced the overall reserve for uncertain tax positions by $6.5 million, which resulted in a reduction in deferred tax assets with no effect on current period income tax expense. The overall reserve was $22.0 million for the fiscal year ended January 28, 2012 and $16.7 million as of July 28, 2012.