Income Taxes

12 Months Ended

Feb. 02, 2013

Income Taxes [Abstract]

Income Taxes

12.  Income Taxes:

     Unrecognized tax benefits for uncertain tax positions are established in accordance with ASC 740 when, despite the fact that the tax return positions are supportable, the Company believes these positions may be challenged and the results are uncertain. The Company adjusts these liabilities in light of changing facts and circumstances. As of February 2, 2013, the Company had gross unrecognized tax benefits totaling approximately $8.9million, of which approximately $6.2 million would affect the effective tax rate if recognized. The Company had approximately $5.0 million, $4.7 million and $5.0 million of interest and penalties accrued related to uncertain tax positions as of February 2, 2013, January 28, 2012 andJanuary 29, 2011, respectively. The Company recognizes interest and penalties related to the resolution of uncertain tax positions as a component of income tax expense. The Company recognized $899,000, $956,000 and $760,000 of interest and penalties in the Consolidated Statement of Income and Comprehensive Income for the years ended February 2, 2013, January 28, 2012 and January 29, 2011, respectively.The Company is no longer subject to U.S. federal income tax examinations for years before 2008. In state and local tax jurisdictions, the Company has limited exposure before 2004. During the next 12 months, various state and local taxing authorities' statues of limitations will expire and certain state examinations may close which could result in a potential reduction of unrecognized tax benefits.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands):
	February 2, 2013		January 28, 2012		January 29, 2011
Fiscal Year Ended
Balances, beginning	$	8,689	$	8,343	$	10,331
Additions for tax positions of the current year		1,222		1,118		1,124
Additions for tax positions prior years		-		250		114
Reduction for tax positions of prior years for:
Changes in judgment		-		-		(2,779)
Settlements during the period		(581)		(685)		(122)
Lapses of applicable statue of limitations		(438)		(337)		(325)
Balance, ending	$	8,892	$	8,689	$	8,343
The provision for income taxes consists of the following (in thousands):
	February 2, 2013		January 28, 2012		January 29, 2011
Fiscal Year Ended
Current income taxes:
Federal	$	38,415	$	29,048	$	24,916
State		4,429		3,181		3,166
Total		42,844		32,229		28,082
Deferred income taxes:
Federal		(4,952)		2,867		5,217
State		(589)		341		622
Total		(5,541)		3,208		5,839
Total income tax expense	$	37,303	$	35,437	$	33,921

Significant components of the Company's deferred tax assets and liabilities as of February 2, 2013 and January 28, 2012 are as follows (in thousands):
						February 2, 2013			January 28, 2012
	Deferred tax assets:
		Allowance for doubtful accounts				$	772		$	888
		Inventory valuation					1,232			-
		Capital loss carryforward					-			40
		Deferred lease liability					4,174			5,145
		Non-deductible accrued liabilities					1,355			1,232
		Other taxes					1,564			1,420
		Federal benefit of uncertain tax positions					3,910			3,803
		Equity compensation expense					2,728			1,774
		Other					1,952			1,411
			Total deferred tax assets				17,687			15,713
	Deferred tax liabilities
		Property and equipment					12,425			15,253
		Unrealized gains on short-term investments					495			564
		Health care expense					1,150			1,403
		Inventory valuation					-			617
		Other					2,316			2,184
			Total deferred tax liabilities				16,386			20,021
	Net deferred tax liabilities (assets)					$	(1,301)		$	4,308
	The reconciliation of the Company's effective income tax rate with the statutory rate is as follows:
				February 2, 2013			January 28, 2012			January 29, 2011
	Fiscal Year Ended
	Federal income tax rate			35.0	%		35.0	%		35.0	%
	State income taxes			3.2			1.7			2.7
	Tax credits			(1.1)			(1.0)			(1.4)
	Tax exempt interest			(0.5)			(0.5)			(0.4)
	Effects of permanent differences			0.1			(0.1)			0.4
	Other			1.0			0.2			0.3
	Effective income tax rate			37.7	%		35.3	%		36.6	%