INCOME TAXES	3 Months Ended
May 03, 2014
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 annual rate depends on a number of factors, including the jurisdiction in which operating profit is earned and the timing and nature of discrete items. For the thirteen weeks ended May 3, 2014 the effective tax rate was 39.5% as compared to an income tax benefit recorded during the corresponding period of the prior year due to recognition of $3.8 million in state hiring credits. 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 thirteen weeks ended May 3, 2014, there were no material changes to the Company’s liability for uncertain tax positions.

INCOME TAXES

3 Months Ended

May 03, 2014

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 annual rate depends on a number of factors, including the jurisdiction in which operating profit is earned and the timing and nature of discrete items. For the thirteen weeks ended May 3, 2014 the effective tax rate was 39.5% as compared to an income tax benefit recorded during the corresponding period of the prior year due to recognition of $3.8 million in state hiring credits.

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 thirteen weeks ended May 3, 2014, there were no material changes to the Company’s liability for uncertain tax positions.