|12 Months Ended|
Jan. 28, 2012
|Income Taxes [Abstract]|
Earnings before income taxes (in thousands):
The provision for income taxes consists of the following (in thousands):
No provision for U.S. income taxes or Canadian withholding taxes has been made on the cumulative undistributed earnings of foreign companies (approximately $169.5 million at January 28, 2012) because we intend to reinvest permanently outside of the United States. The potential deferred tax liability associated with these earnings, net of foreign tax credits associated with the earnings, is estimated to be $30.4 million.
A reconciliation of the statutory federal income tax rate to our effective tax rate is as follows:
At January 28, 2012, we had net deferred tax liabilities of $1.8 million with $29.4 million classified as other current assets and $31.2 million classified as other non-current liabilities. At January 29, 2011, we had net deferred tax assets of $27.5 million with $32.2 million classified as other current assets, $5.0 million classified as other non-current assets and $9.7 million classified as other non-current liabilities.
Total deferred tax assets and liabilities and the related temporary differences as of January 28, 2012 and January 29, 2011 were as follows (in thousands):
In accordance with the guidance regarding accounting for uncertainty in income taxes, we classify uncertain tax positions as non-current income tax liabilities unless expected to be paid within one year and recognize interest and/or penalties related to income tax matters in income tax expense. As of January 28, 2012 and January 29, 2011, the total amount of accrued interest related to uncertain tax positions was $1.4 million. Amounts charged to operations for interest and/or penalties related to income tax matters were $0.3 million, $0.4 million and $0.4 million in fiscal 2011, 2010 and 2009, respectively.
The following table summarizes the activity related to our unrecognized tax benefits (in thousands):
Of the $4.3 million in unrecognized tax benefits as of January 28, 2012, $3.2 million, if recognized, would reduce our income tax expense and effective tax rate. It is reasonably possible that there could be a net reduction in the balance of unrecognized tax benefits of up to $1.0 million in the next twelve months.
The Company is subject to routine compliance examinations on tax matters by various tax jurisdictions in the ordinary course of business. Tax years 2007 through 2011 are open to such examinations. Our tax jurisdictions include the United States, Canada, the United Kingdom, The Netherlands and France as well as their states, provinces and other political subdivisions. A number of U.S. state examinations are ongoing. As of January 28, 2012, we cannot reasonably determine the timing or outcomes of these examinations.
At January 28, 2012, the company had federal, state and foreign net operating loss (“NOL”) carryforwards of approximately $29.2 million, $12.4 million and $12.8 million, respectively. The federal and state NOLs will expire between fiscal 2015 and 2031; the $12.8 million of foreign NOLs can be carried forward indefinitely. We also had $4.0 million of foreign tax credit carryforwards at January 28, 2012 which will expire in 2019. It is more likely than not that we can fully realize the carryforwards in future years.
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.
Reference 1: http://www.xbrl.org/2003/role/presentationRef