INCOME TAXES (Tables)

12 Months Ended

Feb. 01, 2014

Components of provision for income taxes

A summary of the components of the provision for income taxes is as follows (in thousands):

	Fiscal Year Ended
	February 1, 2014			February 2, 2013			January 28, 2012
Federal:
Current	$	37,313		$	39,511		$	30,529
Deferred		312			(1,418	)		26
		37,625			38,093			30,555
State:
Current		5,205			5,355			3,820
Deferred		(4	)		(217	)		(121	)
		5,201			5,138			3,699
Provision for income taxes	$	42,826		$	43,231		$	34,254

Reconciliation of statutory federal income tax rate

A reconciliation of the statutory federal income tax rate to the effective tax rate as a percentage of income before provision for income taxes follows:

	Fiscal Year Ended
	February 1, 2014	February 2, 2013	January 28, 2012
Tax provision computed at the federal statutory rate	35.00%	35.00%	35.00%
Effect of state income taxes, net of federal benefits	2.81	2.76	2.61
Other, net	(0.15)	(0.43)	(0.90)
	37.66%	37.33%	36.71%

Components of deferred income tax assets, net

In accordance with ASC Topic 740, Income Taxes, deferred income taxes on the consolidated balance sheets result from temporary differences between the amount of assets and liabilities recognized for financial reporting and income tax purposes. The components of the deferred income taxes, net, are as follows (in thousands):

	February 1, 2014						February 2, 2013
	Current			Non-current			Current			Non-current
Deferred rent	$	1,452		$	5,193		$	1,406		$	4,834
Inventories		4,649			-			4,439			-
Accruals		3,068			1,605			2,980			1,672
Stock-based compensation		1,267			4,118			1,308			4,148
Other		17			2			17			1
Total deferred tax assets		10,453			10,918			10,150			10,655

Accumulated depreciation and amortization		-			(7,289	)		-			(6,414	)
Prepaid expenses		(927	)		-			(901	)		-
Accruals		(42	)		-			(58	)		-
State taxes		(436	)		(132	)		(423	)		(156	)
Total deferred tax liabilities		(1,405	)		(7,421	)		(1,382	)		(6,570	)
Deferred income taxes, net	$	9,048		$	3,497		$	8,768		$	4,085

Reconciliation of unrecognized tax benefit

A reconciliation of the unrecognized tax benefit under ASC Topic 740 follows (in thousands):

	Fiscal Year Ended
	February 1, 2014			February 2, 2013			January 28, 2012
Unrecognized tax benefits - beginning of year	$	2,708		$	2,604		$	3,887
Gross increases - tax positions in prior period		245			55			31
Gross decreases - tax positions in prior period		(964	)		(42	)		(1,412	)
Gross increases - tax positions in current period		277			278			496
Settlements		(517	)		-			(230	)
Lapse of statute of limitations		(210	)		(187	)		(168	)
Unrecognized tax benefits - end of year	$	1,539		$	2,708		$	2,604

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References+ Details