XML 29 R19.htm IDEA: XBRL DOCUMENT v3.4.0.3
13. Income Taxes
3 Months Ended
May. 01, 2016
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
13.               Income  Taxes

We recorded income tax expense of $1.4 million for the fiscal 2017 first quarter compared to $1.9 million for the comparable prior year period.  The effective tax rates for the fiscal 2017 and 2016 first quarters were 35.8% and 35.4%, respectively.  Our effective tax rate was higher in the fiscal 2017 first quarter as a result of a higher state rate due to the creation of tax nexus in additional states as part of the Home Meridian acquisition as well as the reduced impact of certain permanent differences as a result of the acquisition.

The net unrecognized tax benefits as of May 1, 2016 and January 31, 2016, which, if recognized, would affect our effective tax rate are $168,000 and $221,000, respectively.

Tax years ending February 3, 2013, through January 31, 2016 remain subject to examination by federal and state taxing authorities. An examination of the fiscal 2013 with federal taxing authorities was completed during fiscal 2016 with no changes. An examination of our North Carolina state tax returns for fiscal year 2012 and 2013 was completed during the quarter with no material changes.