Dillard's 2009 Annual Report Download - page 65

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
8. Income Taxes (Continued)
purposes. Significant components of the Company’s deferred tax assets and liabilities as of January 30,
2010 and January 31, 2009 are as follows:
(in thousands of dollars) January 30, 2010 January 31, 2009
Property and equipment bases and depreciation
differences .............................. $449,179 $ 480,166
Joint venture bases differences ................. 7,119 6,149
Differences between book and tax bases of inventory . 51,227 58,227
Other ................................... 4,900 5,614
Total deferred tax liabilities .................. 512,425 550,156
Accruals not currently deductible ............... (99,666) (89,006)
Capital loss carryforwards .................... (212,116) (216,469)
Net operating loss carryforwards ................ (150,557) (180,723)
State income taxes .......................... (6,199) (10,257)
Other ................................... (1,017) (1,724)
Total deferred tax assets .................... (469,555) (498,179)
Capital loss valuation allowance ................ 212,116 216,469
Net operating loss valuation allowance ........... 121,485 146,507
Net deferred tax assets ..................... (135,954) (135,203)
Net deferred tax liabilities .................. $376,471 $ 414,953
At January 30, 2010, the Company had a deferred tax asset of approximately $212 million related
to a capital loss carryforward that could be utilized to reduce the tax liabilities of future years. This
carryforward will expire as of the end of fiscal 2010. The deferred asset attributable to the capital loss
carryforward has been reduced by a valuation allowance of $212 million due to the uncertainty of
future capital gains necessary to utilize the capital loss carryforward.
At January 30, 2010, the Company had a deferred tax asset related to state net operating loss
carryforwards of approximately $151 million that could be utilized to reduce the tax liabilities of future
years. These carryforwards will expire between fiscal 2010 and 2030. A portion of the deferred asset
attributable to state net operating loss carryforwards was reduced by a valuation allowance of
approximately $121 million for the losses of various members of the affiliated group in states for which
the Company determined that it is ‘‘more likely than not’’ that the benefit of the net operating losses
will not be realized.
The change in the valuation allowances is comprised both of amounts charged to the income tax
provision as shown in the reconciliation table of tax expense, as well as adjustments to the valuation
allowances through other balance sheet accounts attributable to utilization and expiration of the
associated net operating losses.
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