XML 39 R9.htm IDEA: XBRL DOCUMENT
v3.20.1

Income Taxes | 12 Months Ended
--- | ---
Feb. 01, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income Tax Provision The Company’s income tax expense is computed based on the federal statutory rates and the state statutory rates, net of related federal benefit. The Company’s provision for income taxes consists of the following (in thousands):
| 52 Weeks Ended February 1, 2020 |  | 52 Weeks Ended February 2, 2019 |  | 53 Weeks Ended February 3, 2018
Current tax expense (benefit): |  |  |  |  |
Federal | $ | (225 | ) |  | $ | 708 |  |  | $ | 5,141 |
State | 612 |  |  | 810 |  |  | 876 |
Deferred tax expense (benefit): |  |  |  |  |
Federal | 362 |  |  | 455 |  |  | (1,207 | )
State | (71 | ) |  | 58 |  |  | (290 | )
| $ | 678 |  |  | $ | 2,031 |  |  | $ | 4,520 |
Income tax expense differs from the amount computed by applying the statutory federal income tax rate to pre-tax (loss) income. A reconciliation of income tax expense at the statutory federal income tax rate to the amount provided is as follows (in thousands):
| 52 Weeks Ended February 1, 2020 |  | 52 Weeks Ended February 2, 2019 |  | 53 Weeks Ended February 3, 2018
Tax at federal statutory rate | $ | (11,043 | ) |  | $ | 1,220 |  |  | $ | 3,308 |
State income taxes, net of federal benefit | (1,456 | ) |  | 651 |  |  | 559 |
Tax credits | (192 | ) |  | (437 | ) |  | (174 | )
Enactment of tax legislation | — |  |  | — |  |  | 419 |
Unrecognized tax positions | — |  |  | — |  |  | (185 | )
Stock based compensation programs | 1,162 |  |  | 545 |  |  | 575 |
Valuation allowance | 12,035 |  |  | — |  |  | — |
Other | 172 |  |  | 52 |  |  | 18 |
Income tax expense | $ | 678 |  |  | $ | 2,031 |  |  | $ | 4,520 |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):
| February 1, 2020 |  | February 2, 2019
Deferred tax assets: |  |  |
Accruals | $ | 2,622 |  |  | $ | 2,914 |
Inventory valuation | 739 |  |  | 664 |
State tax credit carryforwards | 148 |  |  | 144 |
Federal and state net operating loss carryforwards | 7,462 |  |  | 85 |
Impairment | 4,809 |  |  | — |
Operating lease liabilities | 64,819 |  |  | — |
Deferred rent | — |  |  | 3,755 |
Other | 2,505 |  |  | 3,294 |
Total deferred tax assets | 83,104 |  |  | 10,856 |
Valuation allowance for deferred tax assets | (12,145 | ) |  | (83 | )
Net deferred tax assets | 70,959 |  |  | 10,773 |
Deferred tax liabilities: |  |  |
Depreciation | (16,834 | ) |  | (8,352 | )
Operating lease right-of-use assets | (51,974 | ) |  | — |
Prepaid assets | (626 | ) |  | (718 | )
Total deferred tax liabilities | (69,434 | ) |  | (9,070 | )
Net deferred tax assets | $ | 1,525 |  |  | $ | 1,703 |
On December 22, 2017 the U.S. Government enacted comprehensive tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including but not limited to, reducing the U.S. federal corporate rate from 35% to 21% effective as of January 1, 2018. This change required the Company to re-measure the Company’s deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21% for federal income tax purposes. As permitted by the SEC Staff Accounting Bulletin 118, “Income Tax Accounting Implications of the Tax Cut and Jobs Act”, the Company recorded a provisional amount of $419,000, which was included as a component of income tax expense from continuing operations for the year ended February 3, 2018. The Company subsequently finalized its accounting analysis based on the guidance, interpretations, and data available as of February 2, 2019. Adjustments made for the year ended February 2, 2019 upon finalization of the Company’s accounting analysis were not material to the Company’s consolidated financial statements. As of February 1, 2020, the Company has $30.0 million of federal and $21.4 million of state net operating loss carry-forwards available to offset future taxable income. Federal net operating loss carry-forwards do not expire, and state net operating loss carry-forwards expire in years 2034 through 2039. As of February 1, 2020, the Company has state tax credit carryforwards of approximately $187,000 that expire in years 2023 through 2025. Future utilization of the deferred tax assets is evaluated by the Company and any valuation allowance is adjusted accordingly. For fiscal 2019, the Company established a valuation allowance against its federal and consolidated deferred tax assets, primarily net operating loss carryforwards, due to uncertainty regarding their realization. Accordingly, the Company has established a valuation allowance of $12.1 million and $0.1 million with respect to the deferred tax assets as of February 1, 2020 and February 2, 2019, respectively. Adjustments could be required in the future if the Company estimates that the amount of deferred tax assets to be realized is more or less than the net amount the Company has recorded. Any decrease in the valuation allowance could have the effect of increasing or decreasing the income tax provision based on the nature of the deferred tax asset deemed realizable in the period in which such a determination is made. The Company and one or more of its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. The Company is no longer subject to U.S. federal income tax examinations by authorities for years prior to 2016. With few exceptions, the Company is no longer subject to state and local income tax examinations for years prior to 2013. The Company is not currently engaged in any U.S. federal, state or local income tax examinations. The Company had no unrecognized tax benefits as of February 1, 2020 and February 2, 2019. The Company accrues interest on unrecognized tax benefits as a component of income tax expense. Penalties, if incurred, would be recognized as a component of income tax expense. The Company had no amounts accrued for the payment of interest and penalties associated with unrecognized tax benefits as of February 1, 2020 and February 2, 2019.

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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration