Big Lots 2008 Annual Report Download - page 133

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BIG LOTS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Reconciliation between the statutory federal income tax rate and the effective income tax rate was as follows:
2008 2007 2006
Statutory federal income tax rate ........................................ 35.0% 35.0% 35.0%
Effect of:
State and local income taxes, net of federal tax benefit..................... 3.4 3.3 2.8
Work opportunity tax and other employment tax credits.................... (0.6) (0.4) (0.9)
Net benefit recognized for prior year FIN No. 48 uncertainties .............. (0.2) (0.4) —
Valuation allowance ................................................ 0.4 (0.5) (0.8)
Municipal interest.................................................. — (0.5) (0.3)
Reversal of previously accrued federal taxes............................. — — (0.8)
Charitable donation of appreciated inventory ............................ — — (0.2)
Other, net ........................................................ — 0.3 (0.9)
Effective income tax rate ......................................... 38.0% 36.8% 33.9%
Income tax payments and refunds were as follows:
2008 2007 2006
(In thousands)
Income taxes paid ............................................. $92,433 $65,767 $ 35,727
Income taxes refunded.......................................... (3,324) (4,241) (22,178)
Net income taxes paid ....................................... $89,109 $61,526 $ 13,549
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:
January 31, 2009 February 2, 2008
(In thousands)
Deferred tax assets:
Depreciation and fixed asset basis differences....................... $ 38,020 $ 41,041
Workers’ compensation and other insurance reserves ................. 27,951 27,897
Uniform inventory capitalization ................................. 21,502 22,527
Compensation related.......................................... 21,003 14,805
Accrued rent ................................................. 11,475 14,680
Accrued state taxes............................................ 7,202 6,843
Pension plans ................................................ 4,490 2,089
State tax net operating losses, net of federal tax benefit ............... 2,507 4,080
KB store lease and other discontinued operations contingencies ........ 1,995 —
Valuation allowances .......................................... (1,269) (301)
Other ...................................................... 24,329 25,726
Total deferred tax assets ..................................... 159,205 159,387
Deferred tax liabilities:
Accelerated depreciation and fixed asset basis differences ............. 31,017 26,336
Lease construction reimbursements ............................... 11,512 12,095
Prepaid expenses ............................................. 5,316 5,588
Other ...................................................... 12,322 10,666
Total deferred tax liabilities .................................. 60,167 54,685
Net deferred tax assets ...................................... $ 99,038 $104,702
Note 9 — Income Taxes (Continued)