14.

Income Taxes

The Company recorded an income tax benefit of $30,694 on a pre-tax loss of $57,897 during the 13 weeks ended October 31, 2015, which represented an effective income tax rate of 53.0%. The Company recorded an income tax benefit of $49,316 on pre-tax loss of $54,425 during the 13 weeks ended November 1, 2014, which represented an effective income tax rate of 90.6%.

The Company recorded an income tax benefit of $31,547 on a pre-tax loss of $66,501 during the 26 weeks ended October 31, 2015, which represented an effective income tax rate of 47.4%. The Company recorded an income tax benefit of $34,109 on pre-tax loss of $37,195 during the 26 weeks ended November 1, 2014, which represented an effective income tax rate of 91.7%.

The income tax benefit for the 13 and 26 weeks ended October 31, 2015 and November 1, 2014 respectively includes the impact of permanent items such as meals and entertainment, non-deductible executive compensation, changes in uncertain tax positions and the impact of filing the income tax returns. In the current year the Company no longer maintains a valuation allowance against its tax assets, except with respect to certain separate state income tax jurisdictions. Additionally, in the prior year the Company recorded the tax implications of the Microsoft agreement in the 13 and 26 weeks ended November 1, 2014 which do not impact the 13 and 26 weeks ended October 31, 2015 as a result of the termination of the Microsoft agreement in December 2014.