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NOTE 13 - INCOME TAXES
 12 Months Ended
Jan. 29, 2012
Income Tax Disclosure [Text Block] NOTE 13 – INCOME TAXES
Our provision for income taxes was as follows for the periods indicated:

   
Fifty-Two Weeks Ended
 
   
January 29,
   
January 30,
   
January 31,
 
   
2012
   
2011
   
2010
 
Current expense
                 
      Federal
  $ 1,687     $ 2,450     $ 1,712  
      Foreign
    54       50       34  
      State
    182       301       224  
         Total current expense
    1,923       2,801       1,970  
                         
Deferred taxes
                       
      Federal
    (87 )     (1,735 )     (110 )
      State
    52       (137 )     219  
         Total deferred taxes
    (35 )     (1,872 )     109  
            Income tax expense
  $ 1,888     $ 929     $ 2,079  

Total tax expense for the fiscal year ended January 29, 2012 was $1.6 million, of which $1.9 million was allocated to continuing operations and $(303,000) benefit was allocated to Other Comprehensive Income.  Total tax expenses for fiscal year ended January 30, 2011 was $1.0 million, of which $929,000 was allocated to continuing operations and $100,000 was allocated to Other Comprehensive Income.  Total tax expense for fiscal year ended January 31, 2010 was $2.2 million, of which $2.1 million was allocated to continuing operations and $109,000 was allocated to Other Comprehensive Income.

The effective income tax rate differed from the federal statutory tax rate as follows for the periods indicated:

   
Fifty-Two Weeks Ended
 
   
January 29,
   
January 30,
   
January 31,
 
   
2012
   
2011
   
2010
 
                   
Income taxes at statutory rate
    34.0 %     35.0 %     35.0 %
Increase (decrease) in tax rate resulting from:
                       
      State taxes, net of federal benefit
    2.3       2.2       2.5  
      Non-cash charitable contribution of appreciated inventory
    (0.9 )     (3.2 )     (2.2 )
      Officer's life insurance
    (5.9 )     (6.8 )     (3.8 )
      Captive insurance disbursement
    (1.9 )     (2.4 )     -  
      Subpart F Income
    0.2       2.2       3.1  
      Valuation allowance against state income tax NOL's
    -       -       2.7  
      Penalty
    -       (4.2 )     2.0  
      Other
    (0.6 )     (0.5 )     1.6  
         Effective income tax rate
    27.2 %     22.3 %     40.9 %

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities for the period indicated were:
   
January 29,
   
January 30,
 
   
2012
   
2011
 
Assets
           
Deferred compensation
  $ 3,080     $ 2,519  
Allowance for bad debts
    729       785  
State income taxes
    173       233  
Restructuring
    6       27  
Property, plant and equipment
    404       722  
Intangible assets
    1,270       831  
Charitable contribution carryforward
    954       772  
Inventories
    -       129  
Other
    191       191  
  Total deferred tax assets     6,807       6,209  
  Valuation allowance     (139 )     (139 )
      6,668       6,070  
Liabilities
               
Inventories
    263       -  
Employee benefits
    343       346  
Other
    -       -  
  Total deferred tax liabilities     606       346  
  Net deferred tax asset   $ 6,062     $ 5,724  

At January 29, 2012 and January 30, 2011, our net deferred tax asset was $6.1 million and $5.7 million, respectively. The current and long-term components are shown in of our consolidated balance sheets as follows:
   
January 29,
   
January 30,
 
   
2012
   
2011
 
Prepaid expenses and other current assets (current portion)
  $ 1,012     $ 1,869  
Other assets (long-term portion)
    5,050       3,855  
   Total asset
  $ 6,062     $ 5,724  

At January 30, 2011, $3.8 million of deferred income taxes was classified as “other long-term assets” and $1.9 million was classified as “other current assets” in the consolidated balance sheets.  A valuation allowance of $139,000 was established during the fiscal year ended January 31, 2010 against certain state net operating losses being carried forward.  We expect to fully utilize the remaining deferred tax assets in future periods when the amounts become deductible.

During the fiscal year ended January 31, 2010, we sold $163,000 of state income tax credits that we were not able to use or carryforward. At January 30, 2011 and January 31, 2010, we had state income tax credit carry forwards of $54,000 and $104,000 respectively.

Current accounting standards prescribe a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  The guidance also addresses de-recognition, classification, interest and penalties, accounting in interim periods and disclosures.

We had no material unrecognized tax benefits at January 29, 2012 or January 30, 2011, and there were no material increases or decreases in unrecognized tax benefits during fiscal 2012, fiscal 2011 or fiscal 2010.

We have elected to classify interest and penalties recognized with respect to unrecognized tax benefits as income tax expense.  During fiscal 2010 the Internal Revenue Service assessed a late payment penalty of $100,000, which we recognized as current tax expense.  During fiscal 2011 we successfully requested to have the penalty abated.  The abatement of the penalty is reflected as a $100,000 reduction in fiscal 2011 federal income tax expense.  No interest or penalties were accrued as of January 29, 2012.

Tax years beginning February 3, 2008, through January 30, 2011 remain subject to examination by federal and state taxing authorities.