XML 28 R12.htm IDEA: XBRL DOCUMENT v3.22.1

Income Taxes

12 Months Ended

Jan. 29, 2022

Income Taxes

Income Taxes

5. Income Taxes

Income tax expense consists of the following (in thousands):

​	​	​	​	​	​	​	​	​	​	​
​		Fiscal Year
​	​	2021			2020			2019		​
Current:	​	​	​	​	​	​	​	​	​	​
Federal	​	$	(11,326)	​	$	(5,538)	​	$	(2,650)	​
State	​		(2,473)	​		(1,405)	​		(945)	​
Total current	​		(13,799)	​		(6,943)	​		(3,595)	​
Deferred:	​	​	​	​	​	​	​	​	​	​
Federal	​		(2,629)	​		(588)	​		104	​
State	​		(574)	​		114	​		26	​
Total deferred	​		(3,203)	​		(474)	​		130	​
Total income tax expense	​	$	(17,002)	​	$	(7,417)	​	$	(3,465)	​

​

Income tax expense computed using the federal statutory rate is reconciled to the reported income tax expense as follows (in thousands):

​	​	​	​	​	​	​	​	​	​	​
​		Fiscal Year
​	​	2021			2020			2019		​
Statutory rate applied to income before income taxes	​	$	(16,641)	​	$	(6,593)	​	$	(4,193)	​
State income taxes, net of federal benefit	​		(2,936)	​		(1,777)	​		(791)	​
State tax credits	​		152	​		168	​		308	​
State tax credits - valuation allowance (net of federal benefit)	​		158	​		—	​		(99)	​
Tax exempt interest	​		—	​		—	​		34	​
General business credits	​		1,433	​		878	​		1,456	​
Nondeductible compensation	​	​	(455)	​	​	—	​	​	—	​
Excess (deficit) tax benefits from stock-based compensation	​	​	1,226	​	​	(58)	​	​	(83)	​
Other	​		61	​		(35)	​		(97)	​
Income tax expense	​	$	(17,002)	​	$	(7,417)	​	$	(3,465)	​

​

Deferred tax assets and deferred tax liabilities consist of the following (in thousands):

​	​	​	​	​	​	​	​
​		January 29,			January 30,
​		2022			2021
Deferred tax assets:	​	​	​	​	​	​	​
Inventory capitalization	​	$	1,910	​	$	1,628	​
Vacation liability	​		781	​		754	​
Operating lease liabilities	​	​	55,088	​	​	49,763	​
State tax credits	​		3,033	​		3,033	​
Stock compensation	​		2,233	​		1,598	​
Deferral of FICA tax	​	​	—	​	​	416	​
Legal expense reserve	​		—	​		128	​
Insurance liabilities	​		778	​		646	​
Other	​		620	​		532	​
Subtotal deferred tax assets	​		64,443	​		58,498	​
Less: State tax credits valuation allowance - net	​		(1,556)	​		(1,714)	​
Total deferred tax assets	​		62,887	​		56,784	​
​	​	​	​	​	​	​	​
Deferred tax liabilities:	​	​	​	​	​	​	​
Right of use asset	​	​	(53,342)	​	​	(47,672)	​
Book and tax depreciation differences	​	​	(5,574)	​	​	(2,040)	​
Prepaid expenses	​		(979)	​		(877)	​
Total deferred tax liabilities	​		(59,895)	​		(50,589)	​
Net deferred tax asset	​	$	2,992	​	$	6,195	​

​

The Company files income tax returns in U.S. federal and state jurisdictions where it does business and is subject to examinations by the Internal Revenue Service (“IRS”) and other taxing authorities. With a few exceptions, the Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years prior to fiscal 2016. The Company reviews and assesses uncertain tax positions, if any, with recognition and measurement of tax benefit based on a “more-likely-than-not” standard with respect to the ultimate outcome, regardless of whether this assessment is favorable or unfavorable. As of January 29, 2022, there were no benefits taken on the Company’s income tax returns that do not qualify for financial statement recognition. If a tax position does not meet the minimum statutory threshold to avoid payment of penalties and interest, a company is required to recognize an expense for the amount of the interest and penalty in the period in which the company claims or expects to claim the position on its tax return. For financial statement purposes, companies are allowed to elect whether to classify such charges as either income tax expense or another expense classification. Should such expense be incurred in the future, the Company will classify such interest as a component of interest expense and penalties as a component of income tax expense.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible and income tax credits may be utilized, management believes it is more likely than not that the Company will realize the benefits of these deductible differences with the exception of certain tax credits available in one state. Beginning in 2011, the Company concluded that its ability to utilize a portion of such state’s tax credits was no longer more likely than not. Such recognition resulted in the establishment of a valuation allowance which necessitated a charge to income tax expense and a reduction in deferred tax assets. Subsequent to 2011, the Company has continued to earn such state credits and has further adjusted the related valuation allowance. At January 29, 2022, the valuation allowance, net of federal tax benefit, totaled $1.6 million.

The effective income tax rate for fiscal 2021, 2020 and 2019 included the recognition of benefits arising from various federal and state tax credits. Under current IRS and state income tax regulations, these credits may be carried back for one year or carried forward for periods up to 20 years. The income tax benefit included $1.6 million, $1.7 million and $1.7 million related to such credits in each of fiscal 2021, 2020 and 2019, respectively.

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Name:	us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration