Big Lots 2007 Annual Report Download - page 155

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BIG LOTS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 9 — Income Taxes (Continued)
Deferred taxes reflect the net tax effects of temporary differences between carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for income tax and FIN No. 48 purposes.
Significant components of our deferred tax assets and liabilities were as follows:
February 2, 2008 February 3, 2007
(In thousands)
Deferred tax assets:
Depreciation and fixed asset basis differences....................... $ 41,041 $ 30,460
Workers’ compensation and other insurance reserves ................. 27,897 27,230
Uniform inventory capitalization ................................. 22,527 21,224
Compensation related .......................................... 14,805 8,392
Accrued rent ................................................. 14,680 15,198
Accrued state taxes ............................................ 6,843 7,639
State tax net operating losses, net of federal tax benefit ............... 4,080 10,747
KB store lease and other discontinued operations contingencies......... — 5,015
Valuation allowances .......................................... (301) (2,021)
Other ...................................................... 27,815 40,887
Total deferred tax assets .................................... 159,387 164,771
Deferred tax liabilities:
Accelerated depreciation and fixed asset basis differences ............. 26,336 25,863
Lease construction reimbursements ............................... 12,095 12,308
Prepaid expenses ............................................. 5,588 5,140
Other ...................................................... 10,666 16,111
Total deferred tax liabilities ................................. 54,685 59,422
Net deferred tax assets ..................................... $ 104,702 $ 105,349
The valuation allowances shown in the table above include state income tax valuation allowances that are net of
the federal tax benefit.
Net deferred tax assets are shown separately on our consolidated balance sheets as current and noncurrent
deferred income taxes. The following table summarizes net deferred income tax assets from the balance sheet:
February 2, 2008 February 3, 2007
(In thousands)
Current deferred income taxes ..................................... $ 53,178 $ 60,292
Noncurrent deferred income taxes ................................. 51,524 45,057
Net deferred tax assets ............................................. $104,702 $105,349
We have established valuation allowances to reflect that it is more likely than not that a portion of the federal
and state deferred tax assets may not be realized.