XML 83 R21.htm IDEA: XBRL DOCUMENT
v2.4.1.9

NOTE 13 - INCOME TAXES | 12 Months Ended
--- | ---
Feb. 01, 2015
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | NOTE 13 – INCOME TAXES Our provision for income taxes was as follows for the periods indicated:
|  | Fifty-Two |  |  | Fifty-Two |  |  | Fifty-Three |
|  | Weeks Ended |  |  | Weeks Ended |  |  | Weeks Ended |
|  | February 1, |  |  | February 2, |  |  | February 3, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Current expense |  |  |  |  |  |  |  |  |
Federal |  | $ | 6,024 |  |  | $ | 3,755 |  |  | $ | 3,894 |
Foreign |  |  | 40 |  |  |  | 41 |  |  |  | 50 |
State |  |  | 635 |  |  |  | 403 |  |  |  | 403 |
Total current expense |  |  | 6,699 |  |  |  | 4,199 |  |  |  | 4,347 |
Deferred taxes |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 97 |  |  |  | 214 |  |  |  | (35 | )
State |  |  | 24 |  |  |  | 126 |  |  |  | 55 |
Total deferred taxes |  |  | 121 |  |  |  | 340 |  |  |  | 20 |
Income tax expense |  | $ | 6,820 |  |  | $ | 4,539 |  |  | $ | 4,367 |
Total tax expense for fiscal 2015 was $6.6 million, of which $6.8 million was allocated to continuing operations and $254,000 benefit was allocated to other comprehensive income. Total tax expense for fiscal 2014 was $4.5 million, of which $4.5 million was allocated to continuing operations and $59,000 benefit was allocated to Other Comprehensive Income. Total tax expense for the fiscal year ended February 3, 2013 was $4.4 million, of which $4.3 million was allocated to continuing operations and $51,000 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 |  |  | Fifty-Two |  |  | Fifty-Three |
|  | Weeks Ended |  |  | Weeks Ended |  |  | Weeks Ended |
|  | February 1, |  |  | February 2, |  |  | February 3, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Income taxes at statutory rate |  |  | 35.0 | % |  |  | 34.0 | % |  |  | 34.0 | %
Increase (decrease) in tax rate resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State taxes, net of federal benefit |  |  | 2.0 |  |  |  | 2.1 |  |  |  | 2.1 |
Officer's life insurance |  |  | (1.2 | ) |  |  | (1.8 | ) |  |  | (3.1 | )
Other, net |  |  | (0.6 | ) |  |  | 2.1 |  |  |  | 0.6 |
Effective income tax rate |  |  | 35.2 | % |  |  | 36.4 | % |  |  | 33.6 | %
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities for the period indicated were:
|  | February 1, |  |  | February 2, |
|  | 2015 |  |  | 2014 |
Assets |  |  |  |  |  |
Deferred compensation |  | $ | 4,120 |  |  | $ | 3,455 |
Allowance for bad debts |  |  | 492 |  |  |  | 448 |
State income taxes |  |  | 8 |  |  |  | 43 |
Property, plant and equipment |  |  | 405 |  |  |  | 370 |
Intangible assets |  |  | 524 |  |  |  | 745 |
Charitable contribution carryforward |  |  | 246 |  |  |  | 608 |
Inventories |  |  | - |  |  |  | 148 |
Other |  |  | 404 |  |  |  | 308 |
Total deferred tax assets |  |  | 6,199 |  |  |  | 6,125 |
Valuation allowance |  |  | - |  |  |  | (34 | )
|  |  | 6,199 |  |  |  | 6,091 |
Liabilities |  |  |  |  |  |  |  |
Employee benefits |  |  | 362 |  |  |  | 320 |
Inventory |  |  | 143 |  |  |  | - |
Total deferred tax liabilities |  |  | 505 |  |  |  | 320 |
Net deferred tax asset without AOCI |  |  | 5,694 |  |  |  | 5,771 |
Deferred tax (asset) liability in AOCI |  |  | 198 |  |  |  | (56 | )
Total net deferred tax asset |  | $ | 5,892 |  |  | $ | 5,715 |
At February 1, 2015 and February 2, 2014 our net deferred tax asset was $5.9 million and $5.7 million, respectively. We expect to fully realize the benefit of the deferred tax assets in future periods when the amounts become deductible. Accordingly, there was a decrease in the valuation allowance of $34,000 during the year. In fiscal 2014, an uncertain tax position of $200,000 related to our investment in a captive insurance arrangement was identified and accrued for. The reserve increased to $284,000 at February 1, 2015. We expect this uncertain tax position will be settled during the next twelve months. Also, in fiscal 2014, we established a reserve of $103,000 for an uncertain tax position related to the use of state loss carryforwards in our tax returns. The balance of this reserve was $142,000 at February 1, 2015. We expect $53,000 of this uncertain tax position to be settled during the next twelve months. 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. A reconciliation of the beginning and ending amount of total unrecognized tax benefits for the fiscal years ended February 1, 2015 and February 2, 2014 are as follows:
|  | February 1, |  |  | February 2, |
|  | 2015 |  |  | 2014 |
Balance, beginning of year |  | $ | 359 |  |  | $ | - |
Increase related to prior year tax positions |  |  | 75 |  |  |  | 279 |
Decrease related to prior year tax positions |  |  | - |  |  |  | - |
Increase related to current year tax positions |  |  | 48 |  |  |  | 80 |
Balance, end of year |  | $ | 482 |  |  | $ | 359 |
The net unrecognized tax benefits as of February 1, 2015, which, if recognized, would affect our effective tax rate are $426,000. $336,000 of this balance is recorded in our current income tax accrual and the balance of $90,000 is recorded in the non-current portion our income tax accrual. Due to taxing authorities' examinations discussed below, we expect that $350,000 of unrecognized tax benefits will decrease within the next year. We have elected to classify interest and penalties recognized with respect to unrecognized tax benefits as income tax expense. Interest expense of $26,000 and $3,000 was accrued as of February 1, 2015 and February 2, 2014, respectively. Tax years beginning January 30, 2012, through February 1, 2015 remain subject to examination by federal and state taxing authorities. An examination of the fiscal 2013 year is currently underway with federal taxing authorities. Also, North Carolina taxing authorities have indicated they will begin an examination of the same year in April 2015.

X
- 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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration