Income taxes	9 Months Ended
Nov. 01, 2013
Income taxes
Income taxes	3. Income taxes Under the accounting standards for income taxes, the asset and liability method is used for computing the future income tax consequences of events that have been recognized in the Company’s consolidated financial statements or income tax returns. Income tax reserves are determined using the methodology established by accounting standards for income taxes which require companies to assess each income tax position taken using the following two-step approach. A determination is first made as to whether it is more likely than not that the position will be sustained, based upon the technical merits, upon examination by the taxing authorities. If the tax position is expected to meet the more likely than not criteria, the benefit recorded for the tax position equals the largest amount that is greater than 50% likely to be realized upon ultimate settlement of the respective tax position. The Internal Revenue Service (“IRS”) has previously examined the Company’s 2008 and earlier federal income tax returns. As a result, the 2008 and earlier tax years are not open for further examination by the IRS. The Company has filed an amended federal income tax return requesting a refund of approximately $5.1 million for its 2009 tax year. This amended return is expected to be examined by the IRS. As the statute of limitations has otherwise closed for the 2009 tax year, the IRS’ ability to assess additional income tax for 2009 is limited to the refund requested on the amended income tax return. An income tax benefit was recorded in the current period for the related reduction in the Company’s reserve for uncertain tax benefits. The IRS, at its discretion, may also choose to examine the Company’s 2010 through 2012 fiscal year income tax filings. The Company has various state income tax examinations that are currently in progress. Generally, the Company’s 2010 and later tax years remain open for examination by the various state taxing authorities. As of November 1, 2013, the total reserves for uncertain tax benefits, interest expense related to income taxes and potential income tax penalties were $20.1 million, $2.4 million and $0.4 million, respectively, for a total of $22.9 million. Of this amount, $4.4 million and $18.5 million are reflected in current liabilities as Accrued expenses and other and in noncurrent Other liabilities, respectively, in the condensed consolidated balance sheet. The Company believes it is reasonably possible that the reserve for uncertain tax positions may be reduced by approximately $11.9 million in the coming twelve months principally as a result of the effective settlement of uncertain tax positions. As of November 1, 2013, approximately $20.1 million of the reserve for uncertain tax positions would impact the Company’s effective income tax rate if the Company were to recognize the tax benefit for these positions. The effective income tax rates for the 13-week and 39-week periods ended November 1, 2013 were 35.6% and 36.8%, respectively, compared to rates of 37.4% and 36.6% for the 13-week and 39-week periods ended November 2, 2012, respectively. The 13-week effective income tax rate decreased due to benefits recorded in the 2013 period associated with the expiration of the time period in which the taxing authorities could have assessed additional income tax related to the Company’s 2009 tax year. The 39-week effective income tax rate increased due to the 2012 favorable resolution of income tax examinations that did not reoccur, to the same extent, in the 2013 period. This rate increase was partially offset by the recording of an income tax benefit in 2013 associated with the expiration of the assessment period during which the taxing authorities could have assessed additional income tax associated with the Company’s 2009 tax year. In addition, the 2013 period reflects larger income tax benefits associated with federal jobs credits. The Company receives a significant income tax benefit related to salaries paid to certain newly hired employees that qualify for federal jobs credits (principally the Work Opportunity Tax Credit or “WOTC”). The federal law authorizing the WOTC credit was not in effect for employees hired after December 31, 2011 during the 39-week period ended November 2, 2012, but was retroactively re-enacted later in the Company’s 2012 fiscal year and currently applies to eligible employees hired on or before December 31, 2013. Whether these credits will be available for employees hired after December 31, 2013 depends upon a change in the tax law that extends the expiration date of these credit provisions, the certainty and timing of which are currently unclear.

3. Income taxes

Under the accounting standards for income taxes, the asset and liability method is used for computing the future income tax consequences of events that have been recognized in the Company’s consolidated financial statements or income tax returns.

Income tax reserves are determined using the methodology established by accounting standards for income taxes which require companies to assess each income tax position taken using the following two-step approach. A determination is first made as to whether it is more likely than not that the position will be sustained, based upon the technical merits, upon examination by the taxing authorities. If the tax position is expected to meet the more likely than not criteria, the benefit recorded for the tax position equals the largest amount that is greater than 50% likely to be realized upon ultimate settlement of the respective tax position.

The Internal Revenue Service (“IRS”) has previously examined the Company’s 2008 and earlier federal income tax returns. As a result, the 2008 and earlier tax years are not open for further examination by the IRS. The Company has filed an amended federal income tax return requesting a refund of approximately $5.1 million for its 2009 tax year. This amended return is expected to be examined by the IRS. As the statute of limitations has otherwise closed for the 2009 tax year, the IRS’ ability to assess additional income tax for 2009 is limited to the refund requested on the amended income tax return. An income tax benefit was recorded in the current period for the related reduction in the Company’s reserve for uncertain tax benefits. The IRS, at its discretion, may also choose to examine the Company’s 2010 through 2012 fiscal year income tax filings. The Company has various state income tax examinations that are currently in progress. Generally, the Company’s 2010 and later tax years remain open for examination by the various state taxing authorities.

As of November 1, 2013, the total reserves for uncertain tax benefits, interest expense related to income taxes and potential income tax penalties were $20.1 million, $2.4 million and $0.4 million, respectively, for a total of $22.9 million. Of this amount, $4.4 million and $18.5 million are reflected in current liabilities as Accrued expenses and other and in noncurrent Other liabilities, respectively, in the condensed consolidated balance sheet.

The Company believes it is reasonably possible that the reserve for uncertain tax positions may be reduced by approximately $11.9 million in the coming twelve months principally as a result of the effective settlement of uncertain tax positions. As of November 1, 2013, approximately $20.1 million of the reserve for uncertain tax positions would impact the Company’s effective income tax rate if the Company were to recognize the tax benefit for these positions.

The effective income tax rates for the 13-week and 39-week periods ended November 1, 2013 were 35.6% and 36.8%, respectively, compared to rates of 37.4% and 36.6% for the 13-week and 39-week periods ended November 2, 2012, respectively. The 13-week effective income tax rate decreased due to benefits recorded in the 2013 period associated with the expiration of the time period in which the taxing authorities could have assessed additional income tax related to the Company’s 2009 tax year. The 39-week effective income tax rate increased due to the 2012 favorable resolution of income tax examinations that did not reoccur, to the same extent, in the 2013 period. This rate increase was partially offset by the recording of an income tax benefit in 2013 associated with the expiration of the assessment period during which the taxing authorities could have assessed additional income tax associated with the Company’s 2009 tax year. In addition, the 2013 period reflects larger income tax benefits associated with federal jobs credits. The Company receives a significant income tax benefit related to salaries paid to certain newly hired employees that qualify for federal jobs credits (principally the Work Opportunity Tax Credit or “WOTC”). The federal law authorizing the WOTC credit was not in effect for employees hired after December 31, 2011 during the 39-week period ended November 2, 2012, but was retroactively re-enacted later in the Company’s 2012 fiscal year and currently applies to eligible employees hired on or before December 31, 2013. Whether these credits will be available for employees hired after December 31, 2013 depends upon a change in the tax law that extends the expiration date of these credit provisions, the certainty and timing of which are currently unclear.