Income Taxes (Tables)

12 Months Ended

Feb. 02, 2013

Components of Income Tax Expense (Benefit)

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

	Fiscal Year Ended
	February 2, 2013		January 28, 2012			January 29, 2011
	(In thousands)
Current income taxes:
Federal	$	—	$	(127	)	$	268
State		825		1,516			1,692
Total current		825		1,389			1,960
Deferred income taxes:
Federal		—		—			—
State		23		(357	)		(896	)
Total deferred		23		(357	)		(896	)
Total income tax expense	$	848	$	1,032		$	1,064

Reconciliation of Income Tax Expense (Benefit)

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

	Fiscal Year Ended
	February 2, 2013			January 28, 2012			January 29, 2011
	(In thousands)
Benefit for income taxes at statutory rate	$	(17,979	)	$	(28,380	)	$	(27,208	)
State income taxes, net of federal income tax benefit		(881	)		(1,209	)		(1,387	)
Valuation allowance		19,415			28,958			29,745
Derivative liability		2			1,764			—
Other		291			(101	)		(86	)
Total income tax expense	$	848		$	1,032		$	1,064

Summary of Deferred Tax Assets and Liabilities

The major components of the Company’s overall net deferred tax asset of approximately $4 million and $5 million at February 2, 2013 and January 28, 2012, respectively, were as follows:

	February 2, 2013			January 28, 2012
	(In thousands)
Current net deferred tax asset	$	5,238		$	3,782
Noncurrent net deferred tax asset		122,827			104,629
		128,065			108,411
Valuation allowance		(123,920	)		(103,777	)
Total net deferred tax asset	$	4,145		$	4,634
Deferred tax assets:
Net operating loss and tax credit carryforwards	$	113,264		$	97,206
Deferred lease incentives		6,047			7,395
Deferred rent		6,506			6,442
Deferred and stock-based compensation		4,516			3,795
Inventory cost capitalization		2,635			2,536
Sublease loss reserves		—			114
Other		4,931			3,470
		137,899			120,958
Deferred tax liabilities:
Depreciation and amortization	$	(6,165	)	$	(8,762	)
Prepaid expenses		(2,219	)		(2,164	)
State income taxes		(1,450	)		(1,621	)
		(9,834	)		(12,547	)
Net deferred taxes before valuation allowance		128,065			108,411
Less: valuation allowance		(123,920	)		(103,777	)
Total net deferred tax asset	$	4,145		$	4,634

Reconciliation of Unrecognized Tax Benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (including interest and penalties) at February 2, 2013, January 28, 2012, and January 29, 2011:

	February 2, 2013		January 28, 2012			January 29, 2011
	(In thousands)
Unrecognized tax benefits, opening balance	$	313	$	493		$	839
Gross increases — tax positions in prior period		11		271			489
Gross decreases — tax positions in prior period		—		(30	)		(644	)
Gross increases — tax positions in current period		—		—			—
Settlements		—		(420	)		(120	)
Lapse of statute of limitations		—		(1	)		(71	)
Unrecognized tax benefits, ending balance	$	324	$	313		$	493