Income Taxes (Tables)

12 Months Ended

Feb. 01, 2014

The income tax provision (benefit) is comprised of the following amounts (in thousands):



	Fiscal Year Ended February 1, 2014			Fiscal Year Ended February 2, 2013
Current:
Federal	$	323		$	—
State and local	578			554
Foreign	—			—
	901			554
Deferred:
Federal	(4,433		)	(18,987		)
State and local	(587		)	(2,696		)
Foreign	(766		)	(680		)
	(5,786		)	(22,363		)
Income tax benefit	(4,885		)	(21,809		)
Less valuation allowance adjustment	5,786			20,257
Income tax provision (benefit)	$	901		$	(1,552	)

Reconciliation of Statutory Federal Income Tax Rate to Pretax Income

The income tax provision (benefit) differs from the amount obtained by applying the statutory Federal income tax rate to pretax income as follows (in thousands):



	Fiscal Year Ended February 1, 2014			Fiscal Year Ended February 2, 2013
Benefit at Federal statutory rates	$	(4,047	)	$	(20,148	)
Permanent adjustments	24			581
State tax, net of Federal	(97		)	366
Net tax benefit adjustment	(765		)	(2,508		)
Change in valuation allowance	5,786			20,257
Other	—			(100		)
Income tax provision (benefit)	$	901		$	(1,552	)

Schedule of Deferred Tax Liabilities

Net deferred tax liabilities, which are included in other long-term liabilities on the accompanying consolidated balance sheets as of February 1, 2014 and February 2, 2013, reflect the tax effect of the following differences between financial statement carrying amounts and tax bases of assets and liabilities as follows (in thousands):



	February 1, 2014			February 2, 2013
Assets:
Net operating loss and tax credit carryforwards	$	11,991		$	14,402
Puerto Rico and U.S. Virgin Islands net operating loss carryforwards	2,986			2,220
Inventories	7,280			6,240
Property and equipment	10,803			14,057
Accounts receivable allowances	371			479
Goodwill and intangibles	415			670
Accrued interest	6,950			4,557
Deferred rent	3,287			3,176
Accrued expenses	2,897			4,153
Share-based compensation	2,726			2,035
Other	1,442			338
Total deferred tax assets	51,148			52,327
Valuation allowance	(46,860		)	(41,074		)
Net deferred tax assets	4,288			11,253
Liabilities:
Tradename	(3,400		)	(3,400		)
Intangibles	(4,288		)	(6,446		)
Inventory step up	—			(4,807		)
Total deferred tax liabilities, net	$	(3,400	)	$	(3,400	)

Schedule of Unrecognized Tax Benefits and Related Interest and Penalties

The balance of unrecognized tax benefits, the amount of related interest and penalties we have provided and what we believe to be the range of reasonably possible changes in the next 12 months, were (in thousands):



	Fiscal Year Ended February 1, 2014		Fiscal Year Ended February 2, 2013
Unrecognized tax benefits	$	1,007	$	714
Portion if recognized would reduce tax expense and effective rate	1,007		714
Accrued interest on unrecognized tax benefits	406		328
Accrued penalties on unrecognized tax benefits	218		142

Reconciliation of Beginning and Ending Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):



	Fiscal Year Ended February 1, 2014		Fiscal Year Ended February 2, 2013
Balance at beginning of year	$	714	$	681
Additions for tax positions of the current year	130		—
Additions for tax positions of prior years	163		33
Balance at end of year	$	1,007	$	714