Dick's Sporting Goods 2015 Annual Report Download - page 62

In 2015, of the $0.3 million net deferred tax liability, $6.2 million is included within other long-term assets and $6.5 million is
included within long-term liabilities on the Consolidated Balance Sheets. In 2014, the $9.0 million net deferred tax asset was
included in its entirety within other long-term assets.
As of January 30, 2016, deferred income taxes have not been provided on accumulated, but undistributed earnings, of $31.6
million related to the Company's international subsidiaries. It is the Company's intention to permanently reinvest these earnings
outside the United States. The amount of the unrecognized tax liability related to the undistributed earnings as of January 30,
2016 is estimated to be $10.9 million.
As of January€30, 2016, the total liability for uncertain tax positions, including related interest and penalties, was approximately
$12.7 million.
The following table represents a reconciliation of the Company's total balance of unrecognized tax benefits, excluding interest
and penalties (in thousands):
2015 2014 2013
Beginning of fiscal year $8,376 $7,507 $10,670
Increases as a result of tax positions taken in a prior period 1,101 124 1,651
Decreases as a result of tax positions taken in a prior period — — (2,240)
Increases as a result of tax positions taken in the current period 1,193 1,057 985
Decreases as a result of settlements during the current period (63)(312)(3,559)
Reductions as a result of a lapse of statute of limitations during the
current period (823)— —
End of fiscal year $9,784 $8,376 $7,507
The balance at January€30, 2016 includes $6.4 million of unrecognized tax benefits that would impact our effective tax rate if
recognized. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense.
As of January€30, 2016, the liability for uncertain tax positions includes $2.9 million for the accrual of interest and penalties.
During fiscal 2015, 2014 and 2013, the Company recorded $1.2 million, $0.3 million and $0.9 million, respectively, for the
accrual of interest and penalties in the Consolidated Statements of Income. The Company has federal, state and local
examinations currently ongoing. It is possible that these examinations may be resolved within 12€months. Due to the potential
for resolution of these examinations, and the expiration of various statutes of limitation, it is reasonably possible that $5.7
million of the Company's gross unrecognized tax benefits and interest at January€30, 2016 could be recognized within the next
12 months. The Company does not anticipate that changes in its unrecognized tax benefits will have a material impact on the
Consolidated Statements of Income during fiscal 2016.
The Company participates in the Internal Revenue Service ("IRS") Compliance Assurance Program ("CAP"). As part of the
CAP, tax years are audited on a contemporaneous basis so that all or most issues are resolved prior to the filing of the tax return.
The IRS has completed examinations of 2014 and all prior tax years. The Company is no longer subject to examination in any
of its major state jurisdictions for years prior to 2008.
DICK'S SPORTING GOODS,€INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
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