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Income Taxes
6 Months Ended
Jul. 30, 2011
Income Taxes [Abstract]  
INCOME TAXES
10. INCOME TAXES
The provisions codified within ASC Topic 740, Income Taxes (“ASC 740”), require companies to assess whether valuation allowances should be established against their deferred tax assets based on consideration of all available evidence using a “more likely than not” standard. In accordance with ASC 740, the Company maintained a full valuation allowance throughout fiscal 2010 and the 26 weeks ended July 30, 2011 on all the Company’s net deferred tax assets. The Company’s deferred tax asset valuation allowance totaled $155,124 and $126,333 at July 30, 2011 and January 29, 2011, respectively.
Given the Company’s valuation allowance position, no tax benefit was recognized on the Company’s loss before income taxes in the 13 and 26 weeks ended July 30, 2011 and July 31, 2010. The income tax benefit of $1,611 recorded in the 26 weeks ended July 30, 2011 reflects a $3,224 benefit resulting from reclassifying from accumulated other comprehensive loss the residual tax effect associated with certain interest rate swap contracts which expired on July 14, 2011, partially offset by certain state income tax expense and recognition of deferred tax liabilities associated with indefinite-lived assets. The income tax benefit of $187 recorded in the 26 weeks ended July 31, 2010 includes a $1,496 benefit resulting from recognition of uncertain tax positions due to a statute of limitations expiration, partially offset by certain state income tax expense and recognition of deferred tax liabilities associated with indefinite-lived assets.
As of July 30, 2011, it is reasonably possible that gross unrecognized tax benefits could decrease by $328 within the next 12 months due to the expiration of certain statutes of limitations and potential resolution of audits with respect to state tax positions.