Income Taxes (Tables)

12 Months Ended

Jan. 28, 2017

Income Taxes

Schedule of income tax (benefit) expense

Income tax (expense) benefit for fiscal 2016, 2015 and 2014 consists of the following (in thousands):

	2016		2015		2014
Current:
Federal	$	(3,759)	$	(6,805)	$	(780)
State		(779)		(1,283)		(408)
Total current		(4,538)		(8,088)		(1,188)
Deferred:
Federal		(1,541)		(806)		(1,384)
State		59		107		428
Total deferred		(1,482)		(699)		(956)
Total income tax expense	$	(6,020)	$	(8,787)	$	(2,144)

Schedule of the reconciliation of income tax (benefit) expense computed using the federal statutory rate to the reported income tax (benefit) expense

Income tax expense computed using the federal statutory rate is reconciled to the reported income tax expense as follows for fiscal 2016, 2015 and 2014 (in thousands):

	2016		2015		2014
Statutory rate applied to income before income taxes	$	(6,773)	$	(8,510)	$	(3,889)
State income taxes, net of federal benefit		(903)		(950)		(364)
State tax credits		226		186		558
State tax credits - valuation allowance (net of federal benefit)		—		—		(159)
Tax exempt interest		20		6		127
General business credits		1,605		978		1,502
Excess compensation		—		(263)		—
Other		(195)		(234)		81
Income tax expense	$	(6,020)	$	(8,787)	$	(2,144)

Schedule of the components of deferred tax assets and deferred tax liabilities

The components of deferred tax assets and deferred tax liabilities as of January 28, 2017 and January 30, 2016 are as follows (in thousands):

	January 28,		January 30,
	2017		2016
Deferred tax assets:
Deferred rent amortization	$	722	$	656
Inventory capitalization		2,895		2,707
Federal jobs credits		95		—
Book and tax depreciation differences		526		1,912
Vacation liability		921		918
State tax credits		2,161		2,063
Stock compensation		1,340		1,638
Legal expense reserve		407		513
Insurance liabilities		845		1,134
Other		481		380
Subtotal deferred tax assets		10,393		11,921
Less: State tax credits valuation allowance - net		(1,272)		(1,272)
Total deferred tax assets		9,121		10,649
Deferred tax liabilities:
Prepaid expenses		(615)		(661)
Total deferred tax liabilities		(615)		(661)
Net deferred tax asset	$	8,506	$	9,988