Bed, Bath and Beyond 2015 Annual Report Download - page 93

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At February 27, 2016, included in other current assets is a net current deferred income tax asset of $201.5 million
and included in deferred rent and other liabilities is a net noncurrent deferred income tax liability of $2.4 million.
At February 28, 2015, included in other current assets is a net current deferred income tax asset of $207.3 million
and included in other assets is a net noncurrent deferred income tax asset of $49.7 million. 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 27,
2016
February 28,
2015
Deferred tax assets:
Inventories $ 30,470 $ 35,169
Deferred rent and other rent credits 74,182 77,878
Insurance 51,238 62,668
Stock-based compensation 39,417 35,591
Merchandise credits and gift card liabilities 66,496 65,055
Accrued expenses 46,226 42,328
Obligations on distribution centers 40,704 41,175
Net operating loss carryforwards and other tax credits 22,253 30,453
Other 90,776 89,933
Deferred tax liabilities:
Depreciation (104,781) (74,051)
Goodwill (62,252) (55,888)
Intangibles (81,150) (80,515)
Other (14,525) (12,780)
$ 199,054 $257,016
At February 27, 2016, the Company has federal net operating loss carryforwards of $11.4 million (tax effected),
which will begin expiring in 2025, state net operating loss carryforwards of $5.0 million (tax effected), which
will expire between 2015 and 2031, California state enterprise zone credit carryforwards of $4.8 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)
February 27,
2016
February 28,
2015
Balance at beginning of year $ 79,985 $ 92,614
Increase related to current year positions 16,662 17,333
Increase related to prior year positions 2,104 6,549
Decrease related to prior year positions (14,698) (20,082)
Settlements (5,865) (11,762)
Lapse of statute of limitations (5,381) (4,667)
Balance at end of year $ 72,807 $ 79,985
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