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Income Taxes | 12 Months Ended
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Jan. 30, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Note 3 — Income Taxes The Company’s income tax (benefit) 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 January 30, 2021 |  |  | 52 Weeks Ended February 1, 2020 |  |  | 52 Weeks Ended February 2, 2019 |
Current tax (benefit) expense: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (10,124 | ) |  | $ | (225 | ) |  | $ | 708 |
State |  |  | 52 |  |  |  | 612 |  |  |  | 810 |
Deferred tax expense (benefit): |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | — |  |  |  | 362 |  |  |  | 455 |
State |  |  | 1,525 |  |  |  | (71 | ) |  |  | 58 |
|  | $ | (8,547 | ) |  | $ | 678 |  |  | $ | 2,031 |
Income tax (benefit) expense differs from the amount computed by applying the statutory federal income tax rate to pre-tax income (loss). A reconciliation of income tax (benefit) expense at the statutory federal income tax rate to the amount provided is as follows (in thousands):
|  | 52 Weeks Ended January 30, 2021 |  |  | 52 Weeks Ended February 1, 2020 |  |  | 52 Weeks Ended February 2, 2019 |
Tax at federal statutory rate |  | $ | 1,699 |  |  | $ | (11,043 | ) |  | $ | 1,220 |
State income taxes, net of federal benefit |  |  | 338 |  |  |  | (1,456 | ) |  |  | 651 |
Tax credits |  |  | (90 | ) |  |  | (192 | ) |  |  | (437 | )
Enactment of tax legislation |  |  | (12,276 | ) |  |  | — |  |  |  | — |
Executive compensation |  |  | 177 |  |  |  | — |  |  |  | 35 |
Stock based compensation programs |  |  | 274 |  |  |  | 1,162 |  |  |  | 545 |
Valuation allowance |  |  | 1,292 |  |  |  | 12,035 |  |  |  | — |
Other |  |  | 39 |  |  |  | 172 |  |  |  | 17 |
Income tax (benefit) expense |  | $ | (8,547 | ) |  | $ | 678 |  |  | $ | 2,031 |
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 and are included as part of other assets on the consolidated balance sheets. Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):
|  | January 30, 2021 |  |  | February 1, 2020 |
Deferred tax assets: |  |  |  |  |  |  |  |
Accruals |  | $ | 3,147 |  |  | $ | 2,622 |
Inventory valuation |  |  | 448 |  |  |  | 739 |
State tax credit carryforwards |  |  | 148 |  |  |  | 148 |
Federal and state net operating loss carryforwards |  |  | 1,111 |  |  |  | 7,462 |
Impairment |  |  | 2,410 |  |  |  | 4,809 |
Operating lease liabilities |  |  | 48,808 |  |  |  | 64,819 |
Other |  |  | 2,366 |  |  |  | 2,505 |
Total deferred tax assets |  |  | 58,438 |  |  |  | 83,104 |
Valuation allowance for deferred tax assets |  |  | (6,033 | ) |  |  | (12,145 | )
Net deferred tax assets |  |  | 52,405 |  |  |  | 70,959 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation |  |  | (12,556 | ) |  |  | (16,834 | )
Operating lease right-of-use assets |  |  | (39,126 | ) |  |  | (51,974 | )
Prepaid assets |  |  | (723 | ) |  |  | (626 | )
Total deferred tax liabilities |  |  | (52,405 | ) |  |  | (69,434 | )
Net deferred tax assets |  | $ | — |  |  | $ | 1,525 |
On March 27, 2020, the CARES Act was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits net operating loss carry backs to offset 100% of taxable income for taxable years beginning before 2021. The Company elected to carryback its 2019 net operating loss to offset the Company’s previous taxable income, thus generating a refund of $12.3 million. As of January 30, 2021, the Company has $21.3 million of state net operating loss carry-forwards available to offset future taxable income. State net operating loss carry-forwards expire in years 2035 through 2040. As of January 30, 2021, 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 deferred tax assets due to uncertainty regarding their realization, and in fiscal 2020 the Company established an additional valuation allowance against state net operating loss carry forwards. Accordingly, the Company has established a valuation allowance of $6.0 million and $12.1 million with respect to the deferred tax assets as of January 30, 2021 and February 1, 2020, 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 2017. With few exceptions, the Company is no longer subject to state and local income tax examinations for years prior to 2015. 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 January 30, 2021 and February 1, 2020. 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 January 31, 2021 and February 1, 2020.

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- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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