Note 16. Income taxes

3 Months Ended

May 04, 2013

Income Tax Disclosure [Text Block]

16.           Income taxes

We recorded a provision for income taxes of $2.2 million and $0.2 million for the three months ended May 4, 2013 and April 28, 2012, respectively.  The increase in tax expense is primarily attributable to increasing profitability in taxable jurisdictions.  During the three months ended May 4, 2013, we were unable to reasonably project our annual effective tax rate, and therefore computed our provision for income taxes based on year-to-date actual financial results.  Included in our provision for income taxes are foreign exchange gains or losses on unsettled income tax liabilities.

We benefit from tax incentives granted by local tax authorities in certain foreign jurisdictions.  The Economic Development Board of Singapore granted development and expansion incentives to our wholly owned subsidiary in Singapore in 2008 for a period of four years, which ended March 1, 2012, contingent on meeting specified requirements.  The Company is currently in negotiation with the Economic Development Board for its operations plan in Singapore and is not benefiting from the incentives during the three months ended May 4, 2013.