INCOME TAXES

6 Months Ended

Jul. 23, 2011

INCOME TAXES [Abstract]

INCOME TAXES

NOTE 10  - INCOME TAXES

In accordance with ASC Topic 740, “Income Taxes” which clarifies the accounting for uncertainty in income taxes recognized in the financial statements, the following required information is provided:

●   The Company had a balance of liability for uncertain tax positions of approximately $2.2 million at both July 23, 2011, and February 5, 2011, respectively.  Within the next 12 months, the Company anticipates the recognition of substantially all remaining uncertain tax benefits due to additional statute closure.  Recognition of these uncertain tax benefits would favorably affect the tax rate.

●   The Company recognizes interest expense and penalties related to the above unrecognized tax benefits within income tax expense.  During the 24 weeks ended July 23, 2011, the Company recognized a credit of $17,000 related to interest and penalties due to the true-up in calculation of expense.  As of July 23, 2011, and February 5, 2011, the Company had approximately $29,000 and $46,000, respectively, accrued for the payment of interest and penalties.

●   The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, many states, and Mexican and Canadian jurisdictions.  The Company is generally no longer subject to U.S. federal income tax examination for the years prior to 2006.  The Company is currently under examination by the IRS for the 2008 tax year.  There are currently no ongoing examinations by state or foreign taxing authorities.