Income Taxes (Tables)

12 Months Ended

Feb. 02, 2013

Summary of Income Tax Expense (Benefit)

The following is a summary of the income tax expense (benefit) (in thousands):

	Year Ended
	February 2, 2013			January 28, 2012			January 29, 2011
Current
Federal	$	—		$	—		$	53
State		236			331			837
Foreign		(387	)		595			280
Total current tax expense (benefit)		(151	)		926			1,170
Deferred
Federal		(48,745	)		(76	)		135
State		(12,903	)		223			(397	)
Foreign		(224	)		48			(223	)
Total deferred tax benefit		(61,872	)		195			(485	)
Total income tax expense (benefit)	$	(62,023	)	$	1,121		$	685

Schedule of Reconciliation of Federal Statutory Tax Rate to Company's Effective Tax Rate

A reconciliation of the federal statutory tax rate to the Company’s effective tax rate is as follows:

	Year Ended
	February 2, 2013			January 28, 2012			January 29, 2011
Provision at federal statutory tax rate		35.0	%		34.0	%		34.0	%
State income taxes—net of federal tax impact		0.7			5.6			2.1
Foreign income		0.6			(2.0	)		(3.3	)
Net adjustments to tax accruals and other		0.1			4.6			(4.4	)
Valuation allowance		76.5			(49.4	)		(32.5	)
Stock-based compensation		(30.0	)		12.4			(6.7	)
Effective tax rate		82.9	%		5.2	%		(10.8	)%

Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

	February 2, 2013			January 28, 2012
Current deferred tax assets (liabilities)
Accrued expense	$	11,026		$	9,970
State tax benefit		(931	)		(1,370	)
Inventory		14,215			11,121
Deferred revenue		20,144			12,213
Net operating loss carryforwards		12,337			27,166
Construction allowance		(1,698	)		(1,037	)
Prepaid expense and other		(18,056	)		(12,729	)
Current deferred tax assets		37,037			45,334
Valuation allowance		(31	)		(41,173	)
Net current deferred tax assets		37,006			4,161
Non-current deferred tax assets (liabilities)
State tax benefit		(2,040	)		(892	)
Stock-based compensation		21,231			—
Deferred lease credits		9,687			4,251
Property and equipment		(5,975	)		(2,061	)
Net operating loss carryforwards		262			7,525
U.S. impact of Canadian transfer pricing		2,091			3,760
Trademarks		(19,361	)		(19,275	)
Other		1,240			850
Non-current deferred tax assets (liabilities)		7,135			(5,842	)
Valuation allowance		(262	)		(16,311	)
Net non-current deferred tax assets (liabilities)		6,873			(22,153	)
Net deferred tax assets (liabilities)	$	43,879		$	(17,992	)

Schedule of Reconciliation of Valuation Allowance

A reconciliation of the valuation allowance is as follows (in thousands):

	Year Ended
	February 2, 2013			January 28, 2012			January 29, 2011
Balance at beginning of fiscal year	$	57,484		$	68,318		$	65,087
Charged to expense		(57,185	)		299			(236	)
Net changes in deferred tax assets and liabilities		(6	)		(11,133	)		3,467
Balance at end of fiscal year	$	293		$	57,484		$	68,318

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the exposures related to unrecognized tax benefits is as follows (in thousands):

	Year Ended
	February 2, 2013			January 28, 2012			January 29, 2011
Balance at beginning of fiscal year	$	2,505		$	9,015		$	8,261
Gross (decreases) increases—prior period tax positions		(57	)		—			—
Gross increases (decreases)—current period tax positions		—			(14	)		1,048
Consent for accounting method change		—			(6,496	)		—
Lapses in statute of limitations		(607	)		—			(294	)
Balance at end of fiscal year	$	1,841		$	2,505		$	9,015