Income Taxes (Tables)

12 Months Ended

Feb. 01, 2020

Income Taxes

Schedule of income tax (benefit) expense

Income tax expense for fiscal 2019,  2018 and 2017 consists of the following (in thousands):

	2019		2018		2017
Current:
Federal	$	(2,650)	$	(4,326)	$	(5,249)
State		(945)		(1,390)		(948)
Total current		(3,595)		(5,716)		(6,197)
Deferred:
Federal		104		619		(3,078)
State		26		143		349
Total deferred		130		762		(2,729)
Total income tax expense	$	(3,465)	$	(4,954)	$	(8,926)

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 2019,  2018 and 2017 (in thousands):

	2019		2018		2017
Statutory rate applied to income before income taxes	$	(4,193)	$	(5,529)	$	(7,924)
Revaluation of net deferred tax assets due to the Tax Cuts and Jobs Act		—		—		(1,925)
State income taxes, net of federal benefit		(791)		(1,250)		(549)
State tax credits		308		276		252
State tax credits - valuation allowance (net of federal benefit)		(99)		10		(79)
Tax exempt interest		34		16		24
General business credits		1,456		1,409		1,273
(Deficit) Excess tax benefits from stock based compensation		(83)		140		70
Other		(97)		(26)		(68)
Income tax expense	$	(3,465)	$	(4,954)	$	(8,926)

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

The components of deferred tax assets and deferred tax liabilities as of February 1, 2020 and February 2, 2019 are as follows (in thousands):

	February 1,		February 2,
	2020		2019
Deferred tax assets:
Deferred rent amortization	$	—	$	652
Inventory capitalization		2,176		1,953
Book and tax depreciation differences		—		853
Vacation liability		705		653
Operating lease liabilities		46,595		—
State tax credits		3,038		2,863
Stock compensation		796		843
Legal expense reserve		128		178
Insurance liabilities		541		319
Other		659		412
Subtotal deferred tax assets		54,638		8,726
Less: State tax credits valuation allowance - net		(1,714)		(1,615)
Total deferred tax assets		52,924		7,111
Deferred tax liabilities:
Right of use asset		(45,095)		—
Book and tax depreciation differences		(373)		—
Prepaid expenses		(787)		(572)
Total deferred tax liabilities		(46,255)		(572)
Net deferred tax asset	$	6,669	$	6,539