Income Taxes (Tables)

12 Months Ended

Feb. 02, 2013

Components of Income (Loss) Before Income Taxes

The components of income (loss) before income taxes for Fiscal 2012, Fiscal 2011 and Fiscal 2010 were as follows (in thousands):

	Fiscal 2012			Fiscal 2011			Fiscal 2010
U.S.	$	(58,274	)	$	(24,910	)	$	(34,663	)
Foreign		73,938			47,178			48,777
Total income before income taxes	$	15,664		$	22,268		$	14,114

Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) for Fiscal 2012, Fiscal 2011 and Fiscal 2010 were as follows (in thousands):

	Fiscal 2012			Fiscal 2011			Fiscal 2010
Federal:
Current	$	—		$	107		$	22
Deferred		(852	)		109			1,098
		(852	)		216			1,120
State
Current		762			1,477			1,622
Deferred		49			(84	)		(779	)
		811			1,393			843
Foreign
Current		14,707			10,608			8,737
Deferred		(284	)		(1,581	)		(909	)
		14,423			9,027			7,828
Total income tax expense	$	14,382		$	10,636		$	9,791

Differences of Provision for Income Taxes from Amount Computed at Statutory Federal Rate

The provision for income taxes for Fiscal 2012, Fiscal 2011 and Fiscal 2010 differs from an amount computed at the statutory federal rate as follows:

	Fiscal 2012			Fiscal 2011			Fiscal 2010
U.S. income taxes at statutory federal rate		35.0	%		35.0	%		35.0	%
Foreign rate differential		(114.3	)		(41.4	)		(82.5	)
Valuation allowance		93.5			16.1			90.1
Earnings of foreign subsidiaries		86.5			27.3			3.0
State and local income taxes, net of federal tax benefit		(17.2	)		5.9			(2.5	)
Change in accrual for estimated tax contingencies		(5.4	)		0.5			7.9
Other, net		13.7			4.4			18.4
		91.8	%		47.8	%		69.4	%

Tax Effects on Significant Components of Company's Net Deferred Tax Asset (Liability)

The tax effects on the significant components of the Company’s net deferred tax asset (liability) as of February 2, 2013 and January 28, 2012 are as follows (in thousands):

	Feb. 2, 2013			Jan. 28, 2012
Deferred tax assets:
Tax carryforwards	$	107,347		$	79,509
Debt related		25,163			24,145
Compensation & benefits		11,026			11,650
Deferred rent		7,446			7,365
Depreciation		4,867			5,734
Accrued expenses		4,890			5,070
Gift cards		2,832			2,751
Inventory		1,172			849
Other		233			1,567
Total gross deferred tax assets		164,976			138,640
Valuation allowance		(137,965	)		(124,250	)
Total deferred tax assets, net		27,011			14,390
Deferred tax liabilities:
Tradename intangibles		110,569			110,569
Lease rights		7,823			7,940
Earnings from foreign subsidiaries		21,508			8,495
Other		321			562
Total deferred tax liabilities		140,221			127,566
Net deferred tax liability	$	(113,210	)	$	(113,176	)

Deferred Tax Assets and Deferred Tax Liabilities

The deferred tax assets and deferred tax liabilities as of February 2, 2013 and January 28, 2012 are as follows (in thousands):

	Feb. 2, 2013			Jan. 28, 2012
Current deferred tax assets, net of valuation allowance	$	6,606		$	5,852
Non-current deferred tax assets		1,152			1,424
Non-current deferred tax liabilities, net of valuation allowance		(120,968	)		(120,452	)
Net deferred tax liability	$	(113,210	)	$	(113,176	)

Amount and Expiration Dates of Operating Loss and Tax Credit Carryforwards

The amount and expiration dates of operating loss and tax credit carryforwards as of February 2, 2013 are as follows (in thousands):

	Amount		Expiration Date
U.S. federal net operating loss carryforwards	$	54,283	2028 – 2033
Non-U.S. net operating loss carryforwards		11,939	2021 – 2028
Non-U.S. net operating loss carryforwards		9,443	Indefinite
State net operating loss carryforwards		6,366	2013 – 2033
U.S. foreign tax credits		25,316	2019 – 2023
Total	$	107,347

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	Fiscal 2012			Fiscal 2011			Fiscal 2010
Beginning balance	$	12,435		$	12,670		$	12,243
Additions based on tax positions related to the current year		1,241			1,163			1,694
Additions for tax positions of prior years		—			77			—
Reductions for tax positions of prior years		—			(370	)		(1,133	)
Statute expirations		(2,026	)		(815	)		(134	)
Settlements		(421	)		(290	)		—
Ending balance	$	11,229		$	12,435		$	12,670