Annual report pursuant to Section 13 and 15(d)

Income taxes

v2.4.0.6
Income taxes
 12 Months Ended
Feb. 02, 2013
Income taxes

6.    Income taxes

The provision for income taxes consists of the following:

 

     Fiscal
2012		     Fiscal
2011		      Fiscal
2010		  

Current:

        

Federal

    $ 83,606      $ 53,495       $ 32,288   

State

      14,832        11,022         7,070   
  

 

 

    

 

 

     

 

 

  

Total current

      98,438        64,517         39,358   

Deferred:

        

Federal

      8,950        10,796         8,076   

State

      (144 )      31         (335 ) 
  

 

 

    

 

 

     

 

 

  

Total deferred

      8,806        10,827         7,741   
  

 

 

    

 

 

     

 

 

  

Provision for income taxes

    $ 107,244      $ 75,344       $ 47,099   
  

 

 

    

 

 

     

 

 

  

A reconciliation of the federal statutory rate to the Company’s effective tax rate is as follows:

 

     Fiscal
2012		     Fiscal
2011		     Fiscal
2010		  

Federal statutory rate

      35.0 %      35.0 %      35.0 % 

State effective rate, net of federal tax benefit

      3.4 %      3.7 %      3.7 % 

Other

      (0.1 %)      (0.2 %)      1.2 % 
  

 

 

    

 

 

    

 

 

  

Effective tax rate

      38.3 %      38.5 %      39.9 % 
  

 

 

    

 

 

    

 

 

  

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

 

     February 2,
2013		     January 28,
2012		  

Deferred tax assets:

     

Reserves not currently deductible

    $ 18,160      $ 13,207   

Employee benefits

      5,029        4,970   

Net operating loss & credit carryforwards

      208        179   

Accrued liabilities

      3,854        3,499   

Inventory valuation

      1,280        1,570   
  

 

 

    

 

 

  

Total deferred tax assets

      28,531        23,425   

Deferred tax liabilities:

     

Property and equipment

      39,357        32,414   

Deferred rent obligation

      21,638        16,572   

Prepaid expenses

      8,140        6,370   
  

 

 

    

 

 

  

Total deferred tax liabilities

      69,135        55,356   
  

 

 

    

 

 

  

Net deferred tax liability

    $ (40,604 )    $ (31,931 ) 
  

 

 

    

 

 

  

At February 2, 2013, the Company had net operating loss carryforwards (NOLs) for federal income tax purposes of approximately $73, which expire between 2013 and 2014. Based on Internal Revenue Code Section 382 relating to changes in ownership of the Company, utilization of the federal NOLs is subject to an annual limitation of $440 for federal NOLs created prior to April 1, 1997. At February 2, 2013, the Company had $281 credit carryforwards for state income tax purposes.

 

The Company accounts for uncertainty in income taxes in accordance with the ASC rules for income taxes. Based on the Company’s best estimate of the potential liability for uncertain tax positions there was no reserve at February 2, 2013 and January 28, 2012.

The Company acknowledges that the amount of unrecognized tax benefits may change in the next twelve months. However, it does not expect the change to have a significant impact on its financial statements. Income tax-related interest and penalties were insignificant for fiscal 2012, 2011 and 2010.

The Company files tax returns in the U.S. Federal and State jurisdictions. The Company is no longer subject to U.S. Federal examinations by the Internal Revenue Services for the years before 2010 and, this applies to examinations by the State authorities before 2008.