INCOME TAXES

3 Months Ended

Apr. 28, 2012

INCOME TAXES

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 2011 and the first quarter of 2012 on all of the Company’s net deferred tax assets.  The Company’s deferred tax asset valuation allowance totaled $163,815 and $147,148 at April 28, 2012 and January 28, 2012, respectively.

Given the Company’s valuation allowance position, no tax benefit was recognized on the Company’s loss before income taxes in the first quarter in each of 2012 and 2011.  The income tax provision of $509 and $700 recorded in the first quarter in each of 2012 and 2011, respectively, reflects certain state income tax expense and recognition of deferred tax liabilities associated with indefinite-lived assets.

As a result of the deferred tax asset valuation allowance maintained throughout 2011 and the first quarter of 2012, the changes recognized within other comprehensive income in the first quarter in each of 2012 and 2011 were recorded on a gross basis.

As of April 28, 2012, it is reasonably possible that gross unrecognized tax benefits could decrease by $214 within the next 12 months due to the expiration of certain statutes of limitations.