INCOME TAXES

9 Months Ended

Nov. 12, 2011

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

In accordance with ASC Topic 740, “Income Taxes” which clarifies the accounting for uncertainty in income taxes recognized in the financial statements, the following required information is provided:

• Unrecognized tax benefits were approximately $200,000 and $2.2 million at November 12, 2011 and February 5, 2011, respectively.  The decrease in unrecognized tax benefits of approximately $2.0 million results from the recognition of certain tax benefits due to statute closure. Within the next 12 months, the Company anticipates the recognition of substantially all remaining uncertain tax benefits due to additional statute closure.  Recognition of these uncertain tax benefits would favorably affect the tax rate.

• The Company recognizes interest expense and penalties related to the above unrecognized tax benefits within income tax expense.  During the 40 weeks ended November 12, 2011, the Company recognized a credit of $46,000 related to interest and penalties due to the statute closure.  As of November 12, 2011, and February 5, 2011, the Company had approximately $0 and $46,000, respectively, accrued for the payment of interest and penalties.

• The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, many states, and Mexican and Canadian jurisdictions.  The Company is generally no longer subject to U.S. federal income tax examination for the years prior to 2008.  There is currently one ongoing examination by state authorities and no ongoing examinations by foreign taxing authorities.