Income Taxes (Tables)

12 Months Ended

Mar. 03, 2012

Income Taxes from Continuing Operations

The components of income taxes from continuing operations are as follows (in thousands):

	2012		2011		2010
Currently payable:
Federal	$	36,211	$	35,047	$	19,440
State		2,962		3,746		2,680
		39,173		38,793		22,120
Deferred:
Federal		9,357		2,294		(1,281	)
State		1,448		190		708
		10,805		2,484		(573	)
Total income tax expense from continuing operations	$	49,978	$	41,277	$	21,547

Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

	2012			2011
Deferred tax assets:
Deferred credits from landlords	$	11,314		$	13,488
Share-based compensation		3,950			4,979
Compensation accrual		3,745			3,820
Deferred Compensation		1,486			1,035
Other		4,112			5,494
Total deferred tax assets		24,607			28,816
Deferred tax liabilities:
Inventories		(9,245	)		(6,540	)
Property and equipment		(4,990	)		(954	)
Other		(552	)		(697	)
Total deferred tax liabilities		(14,787	)		(8,191	)
Net deferred tax asset	$	9,820		$	20,625

Reconciliation of Statutory Federal Income Tax Rate to Effective Income Tax Rate Related to Continuing Operations

The effective income tax rate related to continuing operations varies from the statutory federal income tax rate for 2012, 2011 and 2010 due to the following:

	2012			2011			2010
Tax at statutory federal income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal benefit		3.0			2.7			1.9
Tax contingencies		(0.9	)		(0.3	)		0.7
Tax-exempt interest		—			—			(0.1	)
Valuation allowance		—			—			(8.1	)
Other		—			0.1			0.4
		37.1	%		37.5	%		29.8	%

Activity Related to Unrecognized Tax Benefits for U.S. Federal and State Tax Jurisdictions and Excludes Accrued Interest and Penalties

The following table summarizes the activity related to its unrecognized tax benefits for U.S. federal and state tax jurisdictions and excludes accrued interest and penalties (in thousands):

	2012			2011			2010
Unrecognized Tax Benefits at Beginning of Year	$	7,530		$	9,255		$	11,843
Increases in Tax Positions for Prior Years		193			26			3,163
Decreases in Tax Positions for Prior Years		(1,057	)		(1,166	)		(4,106	)
Increases in Unrecognized Tax Benefits as a Result of Current Year Activity		50			106			489
Decreases to Unrecognized Tax Benefits Relating to Settlements with Taxing Authorities		(5	)		(113	)		(1,452	)
Decreases to Unrecognized Tax Benefits as a Result of a Lapse of the Applicable Statute of Limitations		(163	)		(578	)		(682	)
Unrecognized Tax Benefits at End of Year	$	6,548		$	7,530		$	9,255