Income Taxes (Tables)

12 Months Ended

Jan. 31, 2015

Components of Income (Loss) Before Income Taxes

The components of income (loss) before income taxes for Fiscal 2014, Fiscal 2013 and Fiscal 2012 were as follows (in thousands):

	Fiscal 2014			Fiscal 2013			Fiscal 2012
U.S.	$	(261,478	)	$	(116,323	)	$	(58,274	)
Foreign		55,759			59,939			73,938
Total income (loss) before income taxes	$	(205,719	)	$	(56,384	)	$	15,664

Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) for Fiscal 2014, Fiscal 2013 and Fiscal 2012 were as follows (in thousands):

	Fiscal 2014			Fiscal 2013			Fiscal 2012
Federal:
Current	$	—		$	—		$	—
Deferred		(5,099	)		(1,837	)		(852	)
		(5,099	)		(1,837	)		(852	)
State
Current		790			785			762
Deferred		655			65			49
		1,445			850			811
Foreign
Current		11,306			12,375			14,707
Deferred		(1,393	)		(2,465	)		(284	)
		9,913			9,910			14,423
Total income tax expense	$	6,259		$	8,923		$	14,382

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

The provision for income taxes for Fiscal 2014, Fiscal 2013 and Fiscal 2012 differs from an amount computed at the statutory federal rate as follows:

	Fiscal 2014			Fiscal 2013			Fiscal 2012
U.S. income taxes at statutory federal rate		35.0	%		35.0	%		35.0	%
Foreign rate differential		8.4			26.2			(114.3	)
State and local income taxes, net of federal tax benefit		0.9			3.3			(17.2	)
Change in accrual for estimated tax contingencies		0.3			3.3			(5.4	)
Goodwill impairment		(21.0	)		—			—
Earnings of foreign subsidiaries		(13.0	)		(19.4	)		86.5
Valuation allowance		(9.2	)		(66.0	)		93.5
Other, net		(4.4	)		1.8			13.7
		(3.0	)%		(15.8	)%		91.8	%

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

The tax effects on the significant components of the Company’s net deferred tax liability as of January 31, 2015 and February 1, 2014 are as follows (in thousands):

	January 31, 2015			February 1, 2014
Deferred tax assets:
Tax carryforwards	$	196,195		$	195,502
Compensation and benefits		9,620			9,369
Deferred rent		7,888			7,842
Depreciation		3,881			1,998
Accrued expenses		4,468			3,836
Gift cards		3,265			2,857
Inventory		2,426			1,318
Other		—			407
Total gross deferred tax assets		227,743			223,129
Valuation allowance		(190,103	)		(171,570	)
Total deferred tax assets, net		37,640			51,559
Deferred tax liabilities:
Tradename intangibles		106,105			110,569
Earnings from foreign subsidiaries		21,701			31,452
Debt related		9,224			12,944
Lease rights		5,539			7,099
Other		73			215
Total deferred tax liabilities		142,642			162,279
Net deferred tax liability	$	(105,002	)	$	(110,720	)

Deferred Tax Assets and Deferred Tax Liabilities

The deferred tax assets and deferred tax liabilities as of January 31, 2015 and February 1, 2014 are as follows (in thousands):

	January 31, 2015			February 1, 2014
Current deferred tax assets, net of valuation allowance	$	4,662		$	4,600
Non-current deferred tax assets		3,551			4,244
Non-current deferred tax liabilities, net of valuation allowance		(113,215	)		(119,564	)
Net deferred tax liability	$	(105,002	)	$	(110,720	)

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 January 31, 2015 are as follows (in thousands):

	Amount		Expiration Date
U.S. federal net operating loss carryforwards	$	127,419		2029 – 2035
Non-U.S. net operating loss carryforwards		14,981		2016 – 2032
Non-U.S. net operating loss carryforwards		10,245		Indefinite
State net operating loss carryforwards		13,617		2015 – 2035
U.S. foreign tax credits		29,933		2020 – 2025
Total	$	196,195

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 2014			Fiscal 2013			Fiscal 2012
Beginning balance	$	9,820		$	11,229		$	12,435
Additions based on tax positions related to the current year		1,037			1,354			1,241
Additions for tax positions of prior years		—			—			—
Reductions for tax positions of prior years		—			(18	)		—
Statute expirations		(1,593	)		(2,745	)		(2,026	)
Settlements		(41	)		—			(421	)
Ending balance	$	9,223		$	9,820		$	11,229