Advance Auto Parts 2012 Annual Report Download - page 73

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F-28
Temporary differences which give rise to significant deferred income tax assets (liabilities) are as follows:
December 29,
2012
December 31,
2011
Current deferred income tax assets (liabilities):
Inventory valuation differences $ (176,869) $ (168,156)
Accrued medical and workers compensation 10,523 11,245
Accrued expenses not currently deductible for tax 31,061 30,225
Other, net 1,437 2,735
Total current deferred income tax assets (liabilities) $ (133,848) $ (123,951)
Long-term deferred income tax assets (liabilities):
Property and equipment $ (153,270) $ (131,869)
Share-based compensation 12,624 16,418
Accrued medical and workers compensation 19,570 19,207
Net operating loss carryforwards 4,048 5,455
Straight-line rent 17,799 15,578
Other, net 4,720 6,591
Total long-term deferred income tax assets (liabilities) $ (94,509) $ (68,620)
These amounts are recorded in Other current liabilities and Other long-term liabilities in the accompanying consolidated
balance sheets, as appropriate.
Unrecognized Tax Benefits
The following table lists each category and summarizes the activity of the Company's gross unrecognized tax benefits for
the fiscal years ended December 29, 2012, December 31, 2011 and January 1, 2011:
December 29,
2012
December 31,
2011
January 1,
2011
Unrecognized tax benefits, beginning of period $ 24,711 $ 12,953 $ 11,113
Increases related to prior period tax positions 702 10,555 6
Decreases related to prior period tax positions (9,629)(660) —
Increases related to current period tax positions 3,985 2,861 2,201
Settlements (1,111)(319) —
Expiration of statute of limitations (1,950)(679)(367)
Unrecognized tax benefits, end of period $ 16,708 $ 24,711 $ 12,953
As of December 29, 2012, the entire amount of unrecognized tax benefits, if recognized, would reduce the Company's
annual effective tax rate. As of December 31, 2011, the Company had $14,551 of unrecognized tax benefits which, if
recognized, would reduce the Company's annual effective tax rate.
The Company provides for potential interest and penalties associated with uncertain tax positions as a part of income tax
expense. During Fiscal 2012, the Company recognized a $754 benefit from interest and penalties related to uncertain tax
positions. During Fiscal 2011 and 2010 the Company recorded potential interest and penalties related to uncertain tax positions
of $1,628 and $944, respectively. As of December 29, 2012, the Company had recorded a liability for potential interest and
ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 29, 2012, December 31, 2011 and January 1, 2011
(in thousands, except per share data)