Income Taxes (Tables)

12 Months Ended

Feb. 02, 2019

Schedule of provision (benefit) for income taxes

The provision (benefit) for income taxes consists of the following for the years ended February 2, 2019 and February 3, 2018.

(dollars in thousands)	2018			2017
Current
Federal	$	57		$	—
State		(113	)		234
		(56	)		234

Deferred
Federal		87			705
State		21			302
		108			1,007

Provision for Income Tax	$	52		$	1,241

Schedule of deferred income tax assets and deferred income tax liabilities

The income tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities as of year-end are presented below:

(dollars in thousands)	2018			2017
Deferred income tax assets:
Accrual for incentive compensation	$	4,515		$	2,782
Allowance for doubtful accounts		355			653
Insurance accruals		2,171			1,508
Other accruals		642			604
Net operating loss carryforwards		41,333			48,087
Deferred Revenue		199			352
Federal benefit on state reserves		—			55
WOTC Credit Carryforward		6,259			5,295
Property, plant and equipment		4,064			—
Amortization of intangibles		10,478			16,925
Postretirment benefits		142			159
Contribution Carryforward		312			315
Total deferred income tax assets		70,470			76,735
Less: Valuation allowance		63,046			59,299
Deferred income tax assets, net of valuation allowance		7,424			17,436

Deferred income tax liabilities:
Postretirement benefits		—			—
Property, plant and equipment		—			(5,567	)
Inventory valuation		(6,950	)		(11,173	)
Prepaid expenses		(474	)		(588	)
Total deferred income tax liabilities		(7,424	)		(17,328	)

Net deferred income tax assets/liabilities	$	—		$	108

Schedule of reconciliation of the statutory federal income tax rate

A reconciliation of the statutory federal income tax rate to the effective income tax rate is as follows:

	2018				2017
Income tax provision at statutory rate		21.0		%		33.7
State income taxes, net of federal benefit		4.7				3.5
Tax credits, principally jobs		0.2				0.6
Uncertain tax provisions		0.1				—
Change in valuation allowance		(25.8	)			(25.4	)
TCJA Rate Change		—				(13.7	)
Other		—				1.3
Permanent differences		(0.2	)			(0.9	)
Effective income tax rate		(0.0	)	%		(0.9	)

Schedule of unrecognized tax benefits

A reconciliation of the beginning and ending amount of the unrecognized tax benefits is as follows:

(in millions)	2018			2017
Beginning balance	$	2.3		$	0.4
Additions for tax positions of prior years		—			0.5
Additions for current year tax positions		—			1.4
Deductions for tax position for prior years		(2.0	)		—
Settlements of tax position for prior years		(0.3	)		—
Balance at February 2,2019	$	—		$	2.3