American Eagle Outfitters 2004 Annual Report Download - page 65

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51
Part II
The significant components of the Company's deferred tax assets and liabilities were as follows:
(In thousands) January 29,
2005
January 31,
2004
Deferred tax assets:
Current:
Inventories $4,192 $4,037
Rent 14,732 13,768
Deferred compensation 26,003 1,432
Capital loss 1,426 1,455
Valuation allowance (1,426) (1,455)
Other 2,827 1,347
Total current deferred tax assets 47,754 20,584
Long-term:
Purchase accounting basis differences 1,194 7,384
Operating losses 9,750 12,073
Other 1,987 1,427
Total long-term deferred tax assets 12,931 20,884
Total deferred tax assets $60,685 $41,468
Deferred tax liabilities:
Property and equipment $18,147 $14,399
Other Comprehensive Income - 2,755
Total deferred tax liabilities $18,147 $17,154
Significant components of the provision for income taxes are as follows:
For the Years Ended
(In thousands) January 29,
2005
January 31,
2004
February 1,
2003
Current:
Federal $130,988 $33,519 $47,470
State 24,338 5,860 7,054
Total current 155,326 39,379 54,524
Deferred:
Federal (18,860) 10,424 6,396
Foreign taxes 9,572 525 (263)
State (3,435) 1,851 978
Total deferred (12,723) 12,800 7,111
Provision for income taxes $142,603 $52,179 $61,635
As a result of additional tax deductions related to vested restricted stock grants and stock option exercises, tax
benefits have been recognized as contributed capital for the years ended January 29, 2005, January 31, 2004 and
February 1, 2003 in the amounts of $28.8 million, $0.7 million and $1.2 million, respectively.
No provision was made for U.S. income taxes on any undistributed earnings of the Canadian subsidiaries as it is the
Company's intention to utilize those earnings in the Canadian operations for an indefinite period of time.