Income Taxes

12 Months Ended

Feb. 02, 2013

Income Taxes [Abstract]

Income Taxes

Note 4 — Income Taxes

The Company’s income tax expense is computed based on the federal statutory rates and the state statutory rates, net of related federal benefit. Income tax expense consists of the following (in thousands):

	53 Weeks Ended			52 Weeks Ended
	February 2, 2013			January 28, 2012			January 29, 2011
Current
Federal	$	3,753		$	7,249		$	10,413
State		(346	)		2,003			2,345
Deferred
Federal		3,278			2,772			2,547
State		1,014			(569	)		432
	$	7,699		$	11,455		$	15,737

Income tax expense differs from the amount computed by applying the statutory federal income tax rate to pre-tax income. A reconciliation of income tax expense at the statutory federal income tax rate to the amount provided is as follows (in thousands):

	53 Weeks Ended			52 Weeks Ended
	February 2, 2013			January 28, 2012			January 29, 2011
Tax at federal statutory rate	$	7,550		$	10,699		$	14,760
State income taxes (net of federal benefit)		402			773			2,042
Adjustment to prior year income tax provision		—			—			(1,025	)
Tax credits		(563	)		—			—
Other		310			(17	)		(40	)
Income tax expense	$	7,699		$	11,455		$	15,737

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

	February 2, 2013			January 28, 2012
Deferred tax assets:
Accruals	$	1,909		$	2,355
Inventory valuation		186			246
Deferred rent and other		7,971			6,664
Total deferred tax assets		10,066			9,265
Deferred tax liabilities:
Depreciation		(11,060	)		(5,986	)
Prepaid assets		(532	)		(514	)
Total deferred tax liabilities		(11,592	)		(6,500	)
Net deferred tax assets (liabilities)	$	(1,526	)	$	2,765

Future utilization of the deferred tax assets is evaluated by the Company and any valuation allowance is adjusted accordingly. At February 2, 2013 and January 28, 2012, there was no valuation allowance against the Company’s deferred tax assets.

The Company and one or more of its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. The Company is no longer subject to U.S. federal income tax examinations by authorities for years prior to 2008. With few exceptions, the Company is no longer subject to state and local income tax examinations for years prior to 2006. The Company has no ongoing U.S. federal, state or local income tax examinations.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	53 Weeks Ended			52 Weeks Ended
	February 2, 2013			January 28, 2012
	(In thousands)
Balance at the beginning of the year	$	712		$	712
Additions based on tax positions related to the current year		—			—
Additions for tax positions of prior years		—			—
Reductions for tax positions of prior years		—			—
Reductions due to settlements		—			—
Reductions due to lapse of the statute of limitations		(405	)		—
Balance at the end of the year	$	307		$	712

Included in the February 2, 2013 balance and January 28, 2012 balance is $307,000 and $538,000, respectively, of unrecognized tax benefits that, if recognized, would decrease the Company’s effective tax rate.

The Company accrues interest on unrecognized tax benefits as a component of income tax expense. Penalties, if incurred, would be recognized as a component of income tax expense. The Company had $155,000 and $247,000 accrued for the payment of interest and penalties associated with unrecognized tax benefits at February 2, 2013 and January 28, 2012, respectively.