Income Taxes (Tables)

12 Months Ended

Feb. 02, 2013

Summary of the entity's distribution between domestic and foreign earnings (loss) from continuing operations before income taxes and the provision (benefit) for income taxes related to continuing operations

The following table summarizes our distribution between domestic and foreign earnings (loss) from continuing operations before income taxes and the provision (benefit) for income taxes related to continuing operations (in thousands):

	Fiscal 2012			Fiscal 2011			Fiscal 2010

Earnings (loss) before income taxes:
Domestic	$	63,429		$	39,880		$	16,733
Foreign		(12,540	)		3,644			4,042

Earnings before income taxes	$	50,889		$	43,524		$	20,775

Current:
Federal	$	21,682		$	8,306		$	5,649
State		2,365			652			2,162
Foreign		(724	)		285			1,698

		23,323			9,243			9,509
Deferred—primarily Federal		(3,271	)		5,385			(4,637	)
Deferred—Foreign		(480	)		(347	)		(332	)

Income Taxes	$	19,572		$	14,281		$	4,540

Schedule of reconciliations of the United States federal statutory income tax rates and the entity's effective tax rates



Statutory tax rate	35.0	%	35.0	%	35.0	%
State income taxes—net of federal income tax benefit	3.0	%	2.3	%	0.5	%
Impact of foreign operations	3.3	%	(1.9	)%	(0.8	)%
Valuation allowance against foreign losses and other carryforwards	4.1	%	(0.1	)%	(3.0	)%
Change in contingency reserves related to unrecognized tax benefits	(3.7	)%	(1.2	)%	(6.6	)%
Impact of permanent differences related to life insurance investments	(0.6	)%	(0.9	)%	(2.2	)%
Impact of federal tax credits	(1.0	)%	(1.1	)%	(2.1	)%
Permanent reduction of available carryforwards	—		—		2.0	%
Change in enacted tax rates and apportionment of income among jurisdictions	(1.1	)%	(0.6	)%	(2.5	)%
Change in assertion on permanent reinvestment of foreign earnings	(1.9	)%	—		—
Other, net	1.4	%	1.3	%	1.6	%

Effective tax rate for continuing operations	38.5	%	32.8	%	21.9	%

Schedule of deferred tax assets and liabilities included in the entity's consolidated balance sheets

Deferred tax assets and liabilities included in our consolidated balance sheets are comprised of the following (in thousands):

	February 2, 2013			January 28, 2012

Deferred Tax Assets:
Inventories	$	13,592		$	11,180
Accrued compensation and benefits		9,868			8,143
Receivable allowances and reserves		2,727			2,406
Depreciation and amortization		1,328			6,003
Non-current liabilities		706			732
Deferred rent and lease obligations		2,093			303
Operating loss carryforwards		3,934			1,565
Other, net		787			2,095

Deferred tax assets		35,035			32,427
Deferred Tax Liabilities:
Acquired intangible assets		(42,827	)		(44,806	)
Foreign(1)		—			(884	)

Deferred tax liabilities		(42,827	)		(45,690	)
Valuation allowance		(3,641	)		(1,886	)

Net deferred tax liability	$	(11,433	)	$	(15,149	)

(1): As of February 2, 2013 and January 28, 2012, we had undistributed earnings of foreign subsidiaries of $6.1 million and $9.6 million, respectively. At January 28, 2012, a deferred tax liability was recorded, as the earnings were not considered permanently reinvested outside of the United States; however no deferred tax liability was recorded as of February 2, 2013 based on the determination that the earnings are considered permanently reinvested outside of the United States. The amount of deferred tax liability not recognized on permanently reinvested earnings that would be payable if the earnings were repatriated to the United States is $0.6 million. We also consider the original investment in our foreign subsidiaries to be permanently reinvested outside the United States as of February 2, 2013. Because the financial basis in each entity does not exceed the tax basis by an amount exceeding undistributed earnings, no additional United States tax would be due if the original investment were to be repatriated.

Schedule of deferred income taxes included in the line items in the entity's consolidated balance sheets

The amounts of deferred income taxes included in the following line items in our consolidated balance sheets are as follows (in thousands):

	February 2, 2013			January 28, 2012

Assets:
Deferred tax assets	$	22,952		$	19,733
Liabilities:
Deferred tax liabilities		(34,385	)		(34,882	)

Net deferred tax liability	$	(11,433	)	$	(15,149	)

Schedule of reconciliation of unrecognized tax benefits at the beginning and end of the year

A summary of unrecognized tax benefits for the most recent three years is as follows (in thousands):

	Fiscal 2012			Fiscal 2011			Fiscal 2010

Balance at beginning of year	$	2,461		$	2,921		$	4,402
Additions for current year tax positions		245			13			15
Expiration of the statute of limitation for the assessment of taxes		(2,195	)		(604	)		(1,402	)
Additions for tax positions of prior year		5			133			153
Reductions for tax positions of prior year		(138	)		(2	)		(24	)
Settlements		(27	)		—			(223	)

Balance at end of year	$	351		$	2,461		$	2,921