INCOME TAXES	6 Months Ended
Aug. 03, 2013
INCOME TAXES
INCOME TAXES	NOTE 6—INCOME TAXES The Company recognizes taxes payable for the current year, as well as deferred tax assets and liabilities for the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The Company’s effective income tax rate differs from the U.S. statutory rate principally due to foreign taxes related to the Company’s Puerto Rico operations, state taxes, and certain other permanent tax items. The effective tax rate of 63.3% for the thirteen weeks ended August 3, 2013 increased by 25.2% from the 38.1% recorded in the corresponding period of the prior year. The current period income tax expense includes a $2.5 million charge primarily due to recording a valuation allowance against state hiring credits as a result of tax law changes. For the twenty-six weeks ended August 3, 2013 and July 28, 2012, the effective tax rate was 37.4% and 38.2%, respectively. In the second quarter of 2013, the Company reduced the benefit of the $3.8 million of state hiring credits recorded in the first quarter of 2013 by $2.5 million primarily due to the tax law changes noted above. For income tax benefits related to uncertain tax positions to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. During the twenty-six weeks ended August 3, 2013, there were no material changes to the Company’s liability for uncertain tax positions.

INCOME TAXES

6 Months Ended

Aug. 03, 2013

NOTE 6—INCOME TAXES

The Company recognizes taxes payable for the current year, as well as deferred tax assets and liabilities for the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The Company’s effective income tax rate differs from the U.S. statutory rate principally due to foreign taxes related to the Company’s Puerto Rico operations, state taxes, and certain other permanent tax items. The effective tax rate of 63.3% for the thirteen weeks ended August 3, 2013 increased by 25.2% from the 38.1% recorded in the corresponding period of the prior year. The current period income tax expense includes a $2.5 million charge primarily due to recording a valuation allowance against state hiring credits as a result of tax law changes.

For the twenty-six weeks ended August 3, 2013 and July 28, 2012, the effective tax rate was 37.4% and 38.2%, respectively. In the second quarter of 2013, the Company reduced the benefit of the $3.8 million of state hiring credits recorded in the first quarter of 2013 by $2.5 million primarily due to the tax law changes noted above.

For income tax benefits related to uncertain tax positions to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. During the twenty-six weeks ended August 3, 2013, there were no material changes to the Company’s liability for uncertain tax positions.