Taxes on Income (Tables)

12 Months Ended

Feb. 03, 2018

Taxes on Income

Schedule of income from continuing operations before income taxes

	Year Ended
	February 3,		January 28,		January 30,
(In thousands)	2018		2017		2016
United States	$	(46,044)	$	(3,877)	$	12,791
Foreign		(6,787)		(1,587)		—
(Loss) income from continuing operations before income taxes	$	(52,831)	$	(5,464)	$	12,791

Schedule of income tax provision as shown in the income statements

	Year Ended
	February 3,		January 28,		January 30,
(In thousands)	2018		2017		2016
Current:
Federal	$	(81)	$	813	$	2,585
State		(164)		252		(13)
Foreign		1,639		1,221		1,183
		1,394		2,286		3,755
Deferred:
Federal		(150)		1,088		644
State		13		108		33
Foreign		1,773		177		—
		1,636		1,373		677
Tax benefit recorded as a decrease of paid-in capital:
Federal		—		(364)		(68)
State		—		(37)		(6)
		—		(401)		(74)
	$	3,030	$	3,258	$	4,358

Schedule of reconciliation of the actual income tax rates to the federal statutory rate

	Year Ended
		February 3,				January 28,				January 30,
(In thousands, except percentages)		2018				2017				2016
Tax expense at U.S. statutory rate	$	(17,329)	32.8	%	$	(1,858)	34.0	%	$	4,349	34.0	%
State income taxes, net of federal income tax benefit		(942)	1.8			179	(3.3)			187	1.5
Change in U.S. federal statutory rate		7,350	(13.9)			—	—			—	—
Stock-based compensation		1,517	(2.9)			—	—			—	—
Stock warrants		425	(0.8)			—	—			—	—
Adjustments to unrecognized tax benefits		(794)	1.5			233	(4.3)			(189)	(1.5)
Nondeductible expenses		18	—			151	(2.8)			17	0.1
Nondeductible transaction costs		250	(0.5)			2,894	(53.0)			—	—
Valuation allowance		10,688	(20.3)			942	(17.2)			—	—
Foreign Taxes		562	(1.1)			163	(2.9)			—	—
Exchange rate changes		1,427	(2.7)			—	—			—	—
Other		(142)	0.4			554	(10.1)			(6)	—
Tax provision	$	3,030	(5.7)	%	$	3,258	(59.6)	%	$	4,358	34.1	%

Summary of deferred income tax assets

	February 3, 2018		January 28, 2017
(In thousands)	Non-Current		Non-Current
Deferred tax assets:
Deferred revenue		213		478
Amortization		5,967		—
Other		1,578		2,691
State income taxes		—		85
Employee compensation		543		1,630
Net operating loss and credit carryforwards		18,778		12,754
Valuation Allowance		(27,079)		(14,889)
Total deferred income tax assets		—		2,749
Deferred tax liabilities:
Amortization		(10,466)		(10,376)
Depreciation		—		(91)
Total deferred income tax liabilities		(10,466)		(10,467)
Net deferred income tax liabilities	$	(10,466)	$	(7,718)

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

	Year Ended
	February 3,		January 28,		January 30,
(In thousands)	2018		2017		2016
Gross unrecognized tax benefits at beginning of year	$	3,977	$	—	$	449
Additions:
Tax positions taken in prior years		315		2,566		—
Tax positions taken in the current year		1,609		1,411		—
Reductions:
Tax positions taken in prior years		—		—		(96)
Settlement with taxing authorities		(38)		—		(170)
Lapse in statute of limitations		(2,017)		—		(183)
Gross unrecognized tax benefits at year end	$	3,846	$	3,977	$	—