INCOME TAXES	9 Months Ended
Nov. 01, 2014
INCOME TAXES
INCOME TAXES	NOTE 7—INCOME TAXES The Company recognizes taxes payable for the current year, as well as deferred tax assets and liabilities for the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The Company’s effective income tax rate differs from the U.S. statutory rate principally due to state taxes, foreign taxes related to the Company’s Puerto Rico operations and certain other permanent tax items. The annual rate depends on a number of factors, including the jurisdiction in which pre-tax earnings is derived and the timing and nature of discrete items. For the thirteen weeks ended November 1, 2014 the effective tax rate was a 29.0% benefit as compared to a 77.6% expense recorded in the corresponding period of the prior year. The decrease in the effective tax rate was primarily due to a change in the mix of pre-tax (loss) earnings within certain jurisdictions and the impact of permanent tax differences in relation to pre-tax (loss) earnings. For the thirty-nine weeks ended November 1, 2014 and November 2, 2013, the effective tax rate was 138.2% and 46.8%, respectively. The increase in the effective tax rate was primarily attributable to a change in the mix of pre-tax earnings within certain jurisdictions, the impact of permanent tax differences in relation to pre-tax earnings and the effect of discrete items recorded in each year. For income tax benefits related to uncertain tax positions to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. During the thirty-nine weeks ended November 1, 2014, unrecognized tax benefits were reduced by $0.6 million primarily as a result of a tax settlement within certain jurisdictions where the Company operates. The Company does not expect any significant increases or decreases to the amount of unrecognized tax benefits within the next 12 months.

INCOME TAXES

9 Months Ended

Nov. 01, 2014

NOTE 7—INCOME TAXES

The Company recognizes taxes payable for the current year, as well as deferred tax assets and liabilities for the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The Company’s effective income tax rate differs from the U.S. statutory rate principally due to state taxes, foreign taxes related to the Company’s Puerto Rico operations and certain other permanent tax items. The annual rate depends on a number of factors, including the jurisdiction in which pre-tax earnings is derived and the timing and nature of discrete items. For the thirteen weeks ended November 1, 2014 the effective tax rate was a 29.0% benefit as compared to a 77.6% expense recorded in the corresponding period of the prior year. The decrease in the effective tax rate was primarily due to a change in the mix of pre-tax (loss) earnings within certain jurisdictions and the impact of permanent tax differences in relation to pre-tax (loss) earnings.

For the thirty-nine weeks ended November 1, 2014 and November 2, 2013, the effective tax rate was 138.2% and 46.8%, respectively. The increase in the effective tax rate was primarily attributable to a change in the mix of pre-tax earnings within certain jurisdictions, the impact of permanent tax differences in relation to pre-tax earnings and the effect of discrete items recorded in each year.

For income tax benefits related to uncertain tax positions to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. During the thirty-nine weeks ended November 1, 2014, unrecognized tax benefits were reduced by $0.6 million primarily as a result of a tax settlement within certain jurisdictions where the Company operates. The Company does not expect any significant increases or decreases to the amount of unrecognized tax benefits within the next 12 months.