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Income Taxes | 12 Months Ended
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Jan. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | Note 12. Income Taxes The provision for income taxes for continuing operations consists of the following (in thousands):
|  | 2014 |  |  | 2013 |  |  | 2012 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Domestic: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 759 |  |  | $ | — |  |  | $ | — |
State |  |  | 344 |  |  |  | 43 |  |  |  | 31 |
Foreign |  |  | — |  |  |  | — |  |  |  | — |
Total current |  |  | 1,103 |  |  |  | 43 |  |  |  | 31 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Domestic: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 20,416 |  |  |  | 6,333 |  |  |  | 1,030 |
State |  |  | 2,475 |  |  |  | 905 |  |  |  | 124 |
Foreign |  |  | — |  |  |  | (13 | ) |  |  | (7 | )
Total deferred |  |  | 22,891 |  |  |  | 7,225 |  |  |  | 1,147 |
Total provision for income taxes |  | $ | 23,994 |  |  | $ | 7,268 |  |  | $ | 1,178 |
The sources of income (loss) for continuing operations before provision for income taxes are from the United States for all years. We file U.S. federal income tax returns and income tax returns in various state and local jurisdictions. Current income taxes are the amounts payable under the respective tax laws and regulations on each year’s earnings. A reconciliation of the federal statutory income tax rate to the effective tax rate is as follows:
|  | 2014 |  |  | 2013 |  |  | 2012 |
Statutory federal rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | (35.0 | )%
State taxes, net of federal benefit |  |  | 5.7 | % |  |  | 9.5 | % |  |  | 7.4 | %
Nondeductible interest |  |  | 0.0 | % |  |  | 18.1 | % |  |  | 84.3 | %
Nondeductible transaction costs |  |  | 0.0 | % |  |  | 6.7 | % |  |  | 0.0 | %
Valuation allowance |  |  | (0.7 | )% |  |  | (45.5 | )% |  |  | (52.7 | )%
Other |  |  | 0.2 | % |  |  | (0.1 | )% |  |  | 0.1 | %
Total |  |  | 40.2 | % |  |  | 23.7 | % |  |  | 4.1 | %
Deferred income tax assets and liabilities for continuing operations consisted of the following (in thousands):
|  | January 31, 2015 |  |  | February 1, 2014 |
Deferred tax assets: |  |  |  |  |  |  |  |
Depreciation and amortization |  | $ | 29,935 |  |  | $ | 44,742 |
Employee related costs |  |  | 3,503 |  |  |  | 2,048 |
Allowance for asset valuations |  |  | 3,172 |  |  |  | 2,454 |
Accrued expenses |  |  | 3,933 |  |  |  | 1,589 |
Net operating losses |  |  | 65,111 |  |  |  | 80,936 |
Tax credits |  |  | 888 |  |  |  | — |
Other |  |  | 90 |  |  |  | 1,067 |
Total deferred tax assets |  |  | 106,632 |  |  |  | 132,836 |
Less: valuation allowances |  |  | (1,074 | ) |  |  | (1,843 | )
Net deferred tax assets |  |  | 105,558 |  |  |  | 130,993 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Cancellation of debt income |  |  | (8,876 | ) |  |  | (11,095 | )
Other |  |  | (493 | ) |  |  | — |
Total deferred tax liabilities |  |  | (9,369 | ) |  |  | (11,095 | )
Net deferred tax assets |  | $ | 96,189 |  |  | $ | 119,898 |
Included in: |  |  |  |  |  |  |  |
Prepaid expenses and other current assets |  | $ | 4,015 |  |  | $ | 4,476 |
Deferred income taxes and other assets |  |  | 92,174 |  |  |  | 115,422 |
Net deferred income tax assets |  | $ | 96,189 |  |  | $ | 119,898 |
As of January 31, 2015, various federal and state net operating losses were available for carryforward to offset future taxable income. Substantially all of these net operating losses will expire between 2030 and 2034. The valuation allowance of $1,074 at January 31, 2015 and $1,843 at February 1, 2014, reflects management’s assessment, based on available information, that it is more likely than not that a portion of the deferred tax assets will not be realized due to the inability to generate sufficient state taxable income. Adjustments to the valuation allowance are made when there is a change in management’s assessment of the amount of deferred tax assets that are realizable. Net operating losses as of January 31, 2015 presented above do not include fiscal 2014 and 2013 deductions related to stock options that exceeded expenses previously recognized for financial reporting purposes since they have not yet reduced income taxes payable. The excess deduction will reduce income taxes payable and increase additional paid in capital by $2,675 when ultimately deducted in a future year. As discussed in Note 2, we completed an IPO during fiscal 2013. The completion of the IPO and Restructuring Transactions resulted in the non-Vince businesses being separated from the Vince business. As a result, the Company determined that the full valuation allowance on the U.S. net deferred tax assets was no longer necessary. Since the IPO and Restructuring Transactions occurred between related parties and were considered one integrated transaction along with the establishment of the Tax Receivable Agreement liability, the offset of the release of the valuation allowance was recorded as an adjustment to additional paid-in capital on our Consolidated Balance Sheet at February 1, 2014 in accordance with ASC 740-20-45-11(g). The total valuation allowance on deferred tax assets for continuing operations decreased on a net basis by $769 in the fiscal year ended January 31, 2015 and decreased by $62,924 in the fiscal year ended February 1, 2014. A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands):
|  | 2014 |  |  | 2013 |  |  | 2012 |
Beginning balance |  | $ | 3,693 |  |  | $ | 9,378 |  |  | $ | 11,057 |
Increases for tax positions in current year |  |  | 2,397 |  |  |  | 3,743 |  |  |  | 2,199 |
Increases for tax positions in prior years |  |  | 135 |  |  |  | 356 |  |  |  | 52 |
Decreases for tax positions in prior years |  |  | (1,738 | ) |  |  | (4,186 | ) |  |  | (102 | )
Settlements |  |  | — |  |  |  | (3,022 | ) |  |  | (2,105 | )
Lapse in statute of limitations |  |  | — |  |  |  | (102 | ) |  |  | (1,723 | )
Restructuring Transactions |  |  | — |  |  |  | (2,474 | ) |  |  | — |
Ending balance |  | $ | 4,487 |  |  | $ | 3,693 |  |  | $ | 9,378 |
As of January 31, 2015 and February 1, 2014, unrecognized tax benefits in the amount of $2,195 (net of tax) and $2,155 (net of tax), respectively, would impact our effective tax rate if recognized. It is reasonably possible that within the next 12 months certain temporary unrecognized tax benefits could fully reverse. Should this occur, our unrecognized tax benefits could be reduced by up to $2,054. We include accrued interest and penalties on underpayments of income taxes in our income tax provision. As of January 31, 2015 and February 1, 2014, we did not have any interest and penalties accrued on our Consolidated Balance Sheets. Net interest and penalty provisions (benefit) of $0, $(232) and $600 were recognized in our Consolidated Statements of Operations for the years ended January 31, 2015, February 1, 2014 and February 2, 2013, respectively. Interest is computed on the difference between the tax position recognized net of any unrecognized tax benefits and the amount previously taken or expected to be taken in our tax returns. All amounts above related to unrecognized tax benefits include continuing and discontinued operations until the separation of the Vince and non-Vince businesses on November 27, 2013, and the Vince business after such date. With limited exceptions, we are no longer subject to examination for U.S. federal and state income tax for 2007 and prior.

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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/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 SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: 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 5: 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 6: 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
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