Bed, Bath and Beyond 2014 Annual Report Download - page 31

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7. PROVISION FOR INCOME TAXES
The components of the provision for income taxes are as follows:
FISCAL YEAR ENDED
(in thousands)
February 28,
2015
March 1,
2014
March 2,
2013
Current:
Federal $504,154 $514,818 $522,812
State and local 64,486 64,581 55,889
568,640 579,399 578,701
Deferred:
Federal (18,245) 11,221 15,710
State and local (4,034) 537 1,860
(22,279) 11,758 17,570
$546,361 $591,157 $596,271
At February 28, 2015 and March 1, 2014, included in other current assets is a net current deferred income tax asset of
$207.3 million and $175.6 million, respectively, and included in other assets is a net noncurrent deferred income tax asset of
$49.7 million and $55.8 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)
February 28,
2015
March 1,
2014
Deferred tax assets:
Inventories $ 35,169 $ 28,947
Deferred rent and other rent credits 77,878 79,681
Insurance 62,668 58,860
Stock-based compensation 35,591 33,780
Merchandise credits and gift card liabilities 65,055 42,413
Accrued expenses 42,328 42,643
Obligations on distribution centers 41,175 41,454
Net operating loss carryforwards and other tax credits 30,453 32,389
Other 89,933 84,610
Deferred tax liabilities:
Depreciation (74,051) (73,106)
Goodwill (55,888) (49,278)
Intangibles (80,515) (79,471)
Other (12,780) (11,480)
$257,016 $231,442
At February 28, 2015, as a result of the Cost Plus World Market acquisition (See ‘‘Acquisitions,’’ Note 2), the Company has
federal net operating loss carryforwards of $13.7 million (tax effected), which will begin expiring in 2025, state net operating
loss carryforwards of $9.1 million (tax effected), which will expire between 2014 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.
BED BATH & BEYOND 2014 ANNUAL REPORT
29