GameStop 2006 Annual Report Download - page 94

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The components of earnings (loss) before income tax expense consisted of the following:
53 Weeks
Ended
February 3,
2007
52 Weeks
Ended
January 28,
2006
52 Weeks
Ended
January 29,
2005
(In thousands)
United States .................................... $211,814 $142,362 $101,961
International ..................................... 42,482 17,560 (3,050)
Total .......................................... $254,296 $159,922 $ 98,911
The difference in income tax provided and the amounts determined by applying the statutory rate to income
before income taxes resulted from the following:
53 Weeks
Ended
February 3,
2007
52 Weeks
Ended
January 28,
2006
52 Weeks
Ended
January 29,
2005
Federal statutory tax rate ........................... 35.0% 35.0% 35.0%
State income taxes, net of federal effect ................ 2.0 1.1 3.3
Foreign income taxes .............................. 0.7 1.4 0.6
Other (including permanent differences) ................ 0.1 (0.5) (0.5)
37.8% 37.0% 38.4%
The Company’s effective tax rate increased from 37.0% in the 52 weeks ended January 28, 2006 to 37.8% in
the 53 weeks ended February 3, 2007 due to corporate restructuring.
F-26
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)