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INCOME TAXES
 12 Months Ended
Jan. 30, 2022
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

NOTE 15 – INCOME TAXES

 

Our provision for income taxes was as follows for the periods indicated:

 

   

Fifty-Two Weeks Ended

  
   

January 30,

    

January 31,

    

February 2,

  
   

2022

    

2021

    

2020

  

Current expense

                        

      Federal

   $ 650     $ 5,858     $ 2,312  

      Foreign

     107       108       255  

      State

     307       1,154       334  

         Total current expense

     1,064       7,120       2,901  
                         

Deferred taxes

                        

      Federal

     1,980       (9,554 )     1,645  

      State

     344       (1,708 )     298  

         Total deferred taxes

     2,324       (11,262 )     1,943  

            Income tax expense / (benefit)

   $ 3,388     $ (4,142 )   $ 4,844  

 

Total tax expense for fiscal 2022 was $3.6 million, of which $3.4 million expense was allocated to continuing operations and $200,000 tax expense was allocated to other comprehensive income. Total tax benefit for fiscal 2021 was $4.2 million, of which $4.1 million benefit was allocated to continuing operations and $ 30,000 tax benefit was allocated to other comprehensive income. Total tax expense for fiscal 2020 was $4.5 million, of which $4.8 million expense was allocated to continuing operations and $ 300,000 tax benefit 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 30,

    

January 31,

    

February 2,

  
   

2022

    

2021

    

2020

  
                         

Income taxes at statutory rate

     21.0 %     21.0 %     21.0 %

Increase (decrease) in tax rate resulting from:

                        

    State taxes, net of federal benefit

     3.4       3.0       2.4  

    Officer's life insurance

     -1.3       1.7       -1.1  

    Expiration of capital loss

     2.0       0.0       0.0  

    Change in valuation allowance

     -1.9       0.0       0.0  

    Consolidated Appropriation Act provisions

     0.0       1.8       0.0  

    Other

     -0.8       0.9       -0.2  

         Effective income tax rate

     22.4 %     28.4 %     22.1 %

 

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 30,

    

January 31,

  
   

2022

    

2021

  

Assets

                

Intangible assets

   $ 7,212     $ 8,057  

Deferred compensation

     2,807       2,765  

Allowance for bad debts

     2,079       2,235  

Employee benefits

     643       848  

Loss and credit carryover

     88       411  

Accrued liabilities

     320       511  

Deferred rent

     618       444  

Other

     194       369  

Total deferred tax assets

     13,961       15,640  

Valuation allowance

     (88 )     (411 )
      13,873       15,229  

Liabilities

                

Property, plant and equipment

     1,361       775  

Inventories

     900       281  

Total deferred tax liabilities

     2,261       1,056  

Net deferred tax assets

   $ 11,612     $ 14,173  

 

At January 30, 2022 and January 31, 2021 our net deferred asset was $11.6 and $14.2 million, respectively. The decrease in the valuation allowance of $323,000 was primarily due to the expiration of a capital loss carryforward. We expect to fully realize the benefit of the deferred tax assets, with the exception of the foreign tax credit carry forward, in future periods when the amounts become deductible. The foreign tax credit carry forward is $88,000 and expires beginning in fiscal 2029.

 

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 disclosure. We do not have unrecognized tax benefits as of January 30, 2022.

 

Tax years ending February 3, 2019 through January 30, 2022 remain subject to examination by federal and state taxing authorities.