Income Taxes

12 Months Ended

Jan. 28, 2012

Income Taxes [Abstract]

Income Taxes

NOTE 12 - INCOME TAXES

All Company operations are domestic.  Income tax expense consisted of the following (in thousands):

	Fiscal Year
	2011		2010		2009
Federal income tax expense:
Current	$	8,108	$	14,646	$	13,145
Deferred		6,101		4,744		1,144
		14,209		19,390		14,289
State income tax expense:
Current		1,673		1,741		2,593
Deferred		433		121		224
		2,106		1,862		2,817
	$	16,315	$	21,252	$	17,106

Reconciliation between the federal income tax expense charged to income before income tax computed at statutory tax rates and the actual income tax expense recorded follows (in thousands):

	Fiscal Year
	2011			2010			2009
Federal income tax expense
at the statutory rate	$	16,546		$	20,612		$	16,039
State income taxes, net		1,411			1,354			1,910
Job credits and other, net		(1,642	)		(714	)		(843	)
	$	16,315		$	21,252		$	17,106

Deferred tax assets (liabilities) consist of the following (in thousands):

	January 28, 2012			January 29, 2011
Gross deferred tax assets:
Net operating loss carryforwards	$	1,195		$	1,857
Accrued expenses		2,633			4,029
Lease obligations		25,503			27,115
Deferred compensation		16,694			14,896
Deferred income		1,648			2,071
Other		820			903
		48,493			50,871
Gross deferred tax liabilities:
Inventory		(6,255	)		(6,262	)
Depreciation and amortization		(61,698	)		(58,558	)
		(67,953	)		(64,820	)
Valuation allowance		(654	)		(831	)
Net deferred tax liabilities	$	(20,114	)	$	(14,780	)

ASC No. 740, Income Taxes, requires recognition of future tax benefits of deferred tax assets to the extent such realization is more likely than not.  Net non-current deferred tax liabilities were $17.8 million and $14.4 million and net current deferred tax liabilities were $2.3 million and $0.4 million at January 28, 2012 and January 29, 2011, respectively. Consistent with the requirements of ASC No. 740, the tax benefits recognized related to pre-reorganization deferred tax assets have been recorded as a direct addition to additional paid-in capital.  The remaining valuation allowance of $0.7 million and $0.8 million at January 28, 2012 and January 29, 2011, respectively, was established for pre-reorganization state net operating losses, which may expire prior to utilization.  Adjustments are made to reduce the recorded valuation allowance when positive evidence exists that is sufficient to overcome the negative evidence associated with those losses.

The Company has net operating loss carryforwards for state income tax purposes of approximately $19.2 million which, if not utilized, will expire in varying amounts between 2013 and 2021. The Company has net operating loss carryforwards for federal income tax purposes of approximately $1.0 million, which, if not utilized, will expire in varying amounts between 2023 and 2026.

The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions.  The Company is subject to U.S. federal income tax examinations by tax authorities for the fiscal year ended January 31, 2009 and forward.  Although the outcome of tax audits is uncertain, the Company has concluded that there were no significant uncertain tax positions, as defined by ASC No. 740-10, Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109, requiring recognition in its financial statements.  However, the Company may, from time to time, be assessed interest and/or penalties.  In the event the Company receives an assessment for interest and/or penalties, it will be classified in the financial statements as income tax expense.