INCOME TAXES (Tables)

12 Months Ended

Feb. 01, 2014

INCOME TAXES

Schedule of components of income from continuing operations before income taxes

	Year Ended
(dollar amounts in thousands)	February 1, 2014		February 2, 2013		January 28, 2012
Domestic	$	8,533	$	14,577	$	36,634
Foreign		757		7,923		4,954
Total	$	9,290	$	22,500	$	41,588

Schedule of provision for income taxes

	Year Ended
(dollar amounts in thousands)	February 1, 2014			February 2, 2013			January 28, 2012
Current:
Federal	$	(267	)	$	(338	)	$	—
State		451			471			602
Foreign		2,132			1,636			1,557
Deferred:
Federal(a)		2,765			6,548			14,743
State		840			988			(3,887	)
Foreign		(3,684	)		40			(555	)
Total income tax expense from continuing operations(a)	$	2,237		$	9,345		$	12,460

^(a)

Excludes tax benefit recorded to discontinued operations of $0.1 million, $0.2 million and $0.1 million in fiscal years 2013, 2012 and 2011, respectively.

Schedule of reconciliation of the statutory federal income tax rate to the effective rate for income tax expense

	Year Ended
	February 1, 2014			February 2, 2013			January 28, 2012
Statutory tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal tax		6.0			4.1			3.2
Foreign taxes, net of federal tax		4.4			5.6			1.7
Tax credits, net of valuation allowance		(7.5	)		(3.2	)		(2.3	)
Foreign deferred adjustment		(8.4	)		—			—
Foreign tax law change impact		(3.8	)		—			—
Tax uncertainty adjustment		(3.0	)		(1.5	)		(0.1	)
Release of valuation allowance		—			—			(8.3	)
Non deductible expenses		3.5			0.5			0.7
Stock compensation		—			1.8			0.1
Other, net		(2.1	)		(0.8	)		—
		24.1	%		41.5	%		30.0	%

Schedule of items that gave rise to the deferred tax accounts

(dollar amounts in thousands)	February 1, 2014			February 2, 2013
Deferred tax assets:
Employee compensation	$	3,544		$	5,274
Store closing reserves		673			719
Legal reserve		182			122
Benefit accruals		2,109			1,247
Net operating loss carryforwards—Federal		1,115			1,887
Net operating loss carryforwards—State		111,258			111,785
Tax credit carryforwards		26,605			16,291
Accrued leases		15,215			16,032
Interest rate derivatives		—			708
Deferred gain on sale leaseback		46,176			51,124
Deferred revenue		2,987			5,194
Other		1,312			1,874
Gross deferred tax assets		211,176			212,257
Valuation allowance		(106,695	)		(102,341	)
		104,481			109,916
Deferred tax liabilities:
Depreciation	$	33,059		$	42,400
Inventories		71,630			65,203
Real estate tax		3,300			3,214
Insurance and other		4,299			6,261
Interest rate derivatives		274			—
Debt related liabilities		3,606			3,588
		116,168			120,666
Net deferred tax (liability) asset	$	(11,687	)	$	(10,750	)

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits

(dollar amounts in thousands)	February 1, 2014			February 2, 2013			January 28, 2012
Unrecognized tax benefit balance at the beginning of the year	$	2,274		$	3,364		$	4,131
Gross increases for tax positions taken in prior years		—			—			—
Gross decreases for tax positions taken in prior years		—			(338	)		—
Gross increases for tax positions taken in current year		13			201			235
Settlements taken in current year		—			—			—
Lapse of statute of limitations		(346	)		(953	)		(1,002	)
Unrecognized tax benefit balance at the end of the year	$	1,941		$	2,274		$	3,364