Income Taxes

12 Months Ended

Jan. 31, 2012

Income Taxes [Abstract]

INCOME TAXES

NOTE F — INCOME TAXES

The income tax provision is comprised of the following:

	Year Ended January 31,
	2012		2011			2010
	(In thousands)
Current
Federal	$	19,206	$	24,705		$	18,608
State and city		4,449		5,368			4,152
Foreign		2,396		25			8
		26,051		30,098			22,768
Deferred tax benefit		3,569		6,125			(2,984	)
Income tax expense	$	29,620	$	36,223		$	19,784
Income (loss) before income taxes
United States	$	64,940	$	92,933		$	51,454
Non-United States		14,300		(28	)		48
	$	79,240	$	92,905		$	51,502

The significant components of the Company’s net deferred tax asset at January 31, 2012 and 2011 are summarized as follows:

	2012			2011
	(In thousands)
Deferred tax assets
Compensation	$	1,995		$	2,307
Provision for bad debts and sales allowances		7,474			7,676
Inventory write-downs		1,964			2,033
Deferred tax assets, current		11,433			12,016
Compensation		2,859			1,685
Depreciation and amortization		—			4,493
Straight-line lease		2,596			1,798
Supplemental employee retirement plan		405			317
Net operating loss		242			—
Other		193			11
Deferred tax assets, non-current		6,295			8,304
Total deferred tax assets		17,728			20,320
Deferred tax liabilities
Prepaid expenses and other, current		(1,874	)		(1,981	)
Depreciation and amortization, non-current		(1,140	)		—
Intangibles, non-current		(6,444	)		(6,501	)
Net deferred tax assets	$	8,270		$	11,838

The following is a reconciliation of the statutory federal income tax rate to the effective rate reported in the financial statements for the years ended January 31:

	2012			2011			2010
Provision for Federal income taxes at the statutory rate		35.0	%		35.0	%		35.0	%
State and local income taxes, net of Federal tax benefit		3.3			4.9			4.9
Permanent differences resulting in Federal taxable income		5.5			0.4			0.5
Foreign tax rate differential		(3.4	)		—			—
Foreign tax credit		(2.5	)		—			—
Other, net		(0.5	)		(1.3	)		(2.0	)
Actual provision for income taxes		37.4	%		39.0	%		38.4	%

The Company accounts for uncertain income tax positions in accordance with ASC Topic 740 Income Taxes. As of January 31, 2012, the Company had no material unrecognized tax benefits. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Company is currently under audit by various state and local jurisdiction for the years ended January 31, 2008 through January 31, 2011. As of January 31, 2012, the federal tax examination for the year ended January 31, 2009 has been concluded with no change.

The Company’s policy on classification is to include interest in “interest and financing charges” and penalties in “selling, general and administrative expense” in the accompanying Consolidated Statements of Income. The Company and certain of its subsidiaries are subject to U.S. Federal income tax as well as income tax of multiple state, local, and foreign jurisdictions. U.S. Federal income tax returns have been examined through January 31, 2009.

Undistributed earnings of the Company’s foreign subsidiaries amounted to approximately $13.6 million at January 31, 2012. Those earnings are considered indefinitely reinvested and, accordingly, no provision for U.S. income taxes has been provided thereon. Upon distribution of those earnings in the form of dividends or otherwise, the Company would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the various foreign countries, as applicable.