INCOME TAXES

12 Months Ended

Jan. 31, 2021

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 16 – INCOME TAXES

Our provision for income taxes was as follows for the periods indicated:

	Fifty-Two			Fifty-Two		Fifty-Three
	Weeks Ended			Weeks Ended		Weeks Ended
	January 31,			February 2,		February 3,
	2021			2020		2019
Current expense
Federal	$	5,858		$	2,312	$	10,537
Foreign		108			255		118
State		1,154			334		2,247
Total current expense		7,120			2,901		12,902
Deferred taxes
Federal		(9,554	)		1,645		(963	)
State		(1,708	)		298		(222	)
Total deferred taxes		(11,262	)		1,943		(1,185	)
Income tax (benefit)/expense	$	(4,142	)	$	4,844	$	11,717

Total tax benefit for fiscal 2021 was $4.2 million, of which $4.1 million benefit was allocated to continuing operations and $ 30,000 tax benefit was allocated to other comprehensive income. Total tax expense for fiscal 2020 was $4.5 million, of which $4.8 million expense was allocated to continuing operations and $ 300,000 tax benefit was allocated to other comprehensive income. Total tax expense for fiscal 2019 was $11.6 million, of which $11.7 million expense was allocated to continuing operations and $73,000 tax benefit was allocated to other comprehensive income.

The effective income tax rate differed from the federal statutory tax rate as follows for the periods indicated:

	Fiftty-Two			Fiftty-Two			Fiftty-Three
	Weeks Ended			Weeks Ended			Weeks Ended
	January 31,			February 2,			February 3,
	2021			2020			2019
Income taxes at statutory rate		21.0	%		21.0	%		21.0	%
Increase (decrease) in tax rate resulting from:
State taxes, net of federal benefit		3.0			2.4			3.2
Officer's life insurance		1.7			-1.1			-0.7
Consolidated Appropriation Act provisions		1.8			0.0			0.0
Other		0.9			-0.2			-0.8
Effective income tax rate		28.4	%		22.1	%		22.7	%

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities for the period indicated were:

	January 31,			February 2,
	2021			2020
Assets
Intangible assets	$	8,057		$	-
Deferred compensation		2,765			2,673
Allowance for bad debts		2,235			1,050
Employee benefits		848			607
Inventories		-			600
Capital loss carryover		411			393
Accrued liabilities		511			338
Deferred rent		444			231
Other		369			431
Total deferred tax assets		15,640			6,323
Valuation allowance		(411	)		(393	)
		15,229			5,930
Liabilities
Intangible assets		-			1,737
Property, plant and equipment		775			1,313
Inventories		281			-
Total deferred tax liabilities		1,056			3,050
Net deferred tax assets	$	14,173		$	2,880

At January 31, 2021 and February 2, 2020 our net deferred asset was $14.2 million and $2.9 million, respectively. The increase in the valuation allowance of $18,000 was due to foreign tax credit limitations. We expect to fully realize the benefit of the deferred tax assets, with the exception of the capital loss carry forward and foreign tax credit carry forward, in future periods when the amounts become deductible. The capital loss carry forward is $1.4 million and expires in fiscal 2022. The foreign tax credit carry forward is $71,000 and expires beginning in fiscal 2029.

Current accounting standards prescribe a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The guidance also addresses de-recognition, classification, interest and penalties, accounting in interim periods and disclosures.

We do not have unrecognized tax benefits as of January 31, 2021.

Tax years ending January 28, 2018 through January 31, 2021 remain subject to examination by federal and state taxing authorities.