Bed, Bath and Beyond 2013 Annual Report Download - page 31

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At March 1, 2014 and March 2, 2013, included in other current assets is a net current deferred income tax asset of
$201.2 million and $212.7 million, respectively, and included in other assets is a net noncurrent deferred income tax asset of
$30.2 million and $36.0 million, respectively. These amounts represent 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.
The significant components of the Company’s deferred tax assets and liabilities consist of the following:
(in thousands)
March 1,
2014
March 2,
2013
Deferred tax assets:
Inventories $ 28,947 $ 33,699
Deferred rent and other rent credits 79,681 82,123
Insurance 58,860 55,070
Stock-based compensation 33,780 33,486
Merchandise credits and gift card liabilities 42,413 22,683
Accrued expenses 68,237 81,069
Obligations on distribution centers 41,454 42,024
Net operating loss carryforwards and other tax credits 32,389 42,506
Other 59,016 57,129
Deferred tax liabilities:
Depreciation (73,106) (71,358)
Goodwill (49,278) (42,719)
Intangibles (79,471) (78,106)
Other (11,480) (8,875)
$231,442 $248,731
At March 1, 2014, as a result of the Cost Plus World Market acquisition (See ‘‘Acquisitions,’’ Note 2), the Company has federal
net operating loss carryforwards of $15.6 million (tax effected), which will begin expiring in 2025, state net operating loss
carryforwards of $9.2 million (tax effected), which will expire between 2013 and 2031, California state enterprise zone credit
carryforwards of $6.6 million (tax effected), which will expire in 2023, but require taxable income in the enterprise zone to be
realizable and other tax credits of $1.0 million (tax effected).
The Company has not established a valuation allowance for the net deferred tax asset as it is considered more likely than not
that it is realizable through a combination of future taxable income and the deductibility of future net deferred tax liabilities.
The following table summarizes the activity related to the gross unrecognized tax benefits from uncertain tax positions:
(in thousands)
March 1,
2014
March 2,
2013
Balance at beginning of year $ 97,892 $124,963
Increase related to current year positions 19,844 24,892
Increase related to prior year positions 2,292 1,183
Decrease related to prior year positions (9,316) (36,104)
Settlements (782) (15,670)
Lapse of statute of limitations (17,317) (1,372)
Balance at end of year $ 92,613 $ 97,892
BED BATH & BEYOND 2013 ANNUAL REPORT
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