Income Taxes (Tables)

12 Months Ended

Feb. 01, 2014

Components of Income Tax Expense (Benefit)

The components of income tax expense for the fiscal periods presented are as follows:



	Fiscal Year Ended
	February 1, 2014			February 2, 2013		January 28, 2012
	(In thousands)
Current income taxes:
Federal	$	—		$	—	$	(127	)
State	949			819		1,546
Total current	949			819		1,419
Deferred income taxes:
Federal	—			—		—
State	(152		)	15		(365		)
Total deferred	(152		)	15		(365		)
Total income tax expense	$	797		$	834	$	1,054

Reconciliation of Income Tax Expense (Benefit)

A reconciliation of income tax expense (benefit) to the amount of income tax expense that would result from applying the federal statutory rate to loss from continuing operations before income taxes for the fiscal periods presented was as follows:



	Fiscal Year Ended
	February 1, 2014			February 2, 2013			January 28, 2012
	(In thousands)
Benefit for income taxes at statutory rate	$	(16,163	)	$	(18,112	)	$	(28,038	)
State income taxes, net of federal income tax benefit	(363		)	(900		)	(1,170		)
Valuation allowance	13,271			19,557			28,600
Derivative liability	3,723			2			1,764
Other	329			287			(102		)
Total income tax expense	$	797		$	834		$	1,054

Summary of Deferred Tax Assets and Liabilities

The major components of the Company’s overall net deferred tax asset of approximately $4 million at February 1, 2014 and February 2, 2013 respectively, were as follows:



	February 1, 2014			February 2, 2013
	(In thousands)
Current net deferred tax asset	$	3,715		$	5,238
Noncurrent net deferred tax asset	138,576			122,827
	142,291			128,065
Valuation allowance	(138,281		)	(123,920		)
Total net deferred tax asset	$	4,010		$	4,145
Deferred tax assets:
Net operating loss and tax credit carryforwards	$	126,213		$	113,264
Deferred lease incentives	5,414			6,047
Deferred rent	6,372			6,506
Deferred and stock-based compensation	4,912			4,516
Inventory cost capitalization	2,552			2,635
Other	3,384			4,931
	148,847			137,899
Deferred tax liabilities:
Depreciation and amortization	$	(2,920	)	$	(6,165	)
Prepaid expenses	(2,234		)	(2,219		)
State income taxes	(1,402		)	(1,450		)
	(6,556		)	(9,834		)
Net deferred taxes before valuation allowance	142,291			128,065
Less: valuation allowance	(138,281		)	(123,920		)
Total net deferred tax asset	$	4,010		$	4,145

Reconciliation of Unrecognized Tax Benefits



	February 1, 2014			February 2, 2013		January 28, 2012
	(In thousands)
Unrecognized tax benefits, opening balance	$	324		$	313	$	493
Gross increases — tax positions in prior period	—			11		271
Gross decreases — tax positions in prior period	(128		)	—		(30		)
Settlements	(185		)	—		(420		)
Lapse of statute of limitations	—			—		(1		)
Unrecognized tax benefits, ending balance	$	11		$	324	$	313