GameStop 2013 Annual Report Download - page 98

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F-25
Contingencies
In the ordinary course of our business, we are, from time to time, subject to various legal proceedings, including matters
involving wage and hour employee class actions and consumer class actions. We may enter into discussions regarding settlement
of these and other types of lawsuits, and may enter into settlement agreements, if we believe settlement is in the best interest of
our stockholders. We do not believe that any such existing legal proceedings or settlements, individually or in the aggregate, will
have a material adverse effect on our financial condition, results of operations or liquidity.
13. Income Taxes
The provision for income tax consisted of the following:
52 Weeks Ended
February 1, 2014
53 Weeks Ended
February 2, 2013
52 Weeks Ended
January 28, 2012
(In millions)
Current tax expense:
Federal ....................................................................................... $ 158.2 $ 229.6 $ 193.5
State ........................................................................................... 24.5 24.1 20.9
Foreign....................................................................................... 34.6 29.4 21.4
217.3 283.1 235.8
Deferred tax expense (benefit):
Federal ....................................................................................... (1.9)(46.3)(10.2)
State ........................................................................................... (0.1)(3.5)(0.2)
Foreign....................................................................................... (0.7)(8.4)(14.8)
(2.7)(58.2)(25.2)
Total income tax expense............................................................. $ 214.6 $ 224.9 $ 210.6
The components of earnings (loss) before income tax expense consisted of the following:
52 Weeks Ended
February 1, 2014
53 Weeks Ended
February 2, 2013
52 Weeks Ended
January 28, 2012
(In millions)
United States ............................................................................... $ 491.6 $ 547.2 $ 551.9
International ................................................................................ 77.2 (592.1)(2.8)
Total............................................................................................. $ 568.8 $ (44.9) $ 549.1
The difference in income tax provided and the amounts determined by applying the statutory rate to earnings (loss) before
income taxes resulted from the following:
52 Weeks Ended
February 1, 2014
53 Weeks Ended
February 2, 2013
52 Weeks Ended
January 28, 2012
Federal statutory tax rate............................................................. 35.0% 35.0 % 35.0%
State income taxes, net of federal benefit ................................... 1.9 (27.7) 2.6
Foreign income taxes .................................................................. (0.5) 5.6 1.3
Nondeductible goodwill impairments......................................... 0.6 (488.6) —
Change in valuation allowance ................................................... — (22.5) 0.1
Subpart F income ........................................................................ 4.8 (61.4) 4.6
Interest income from hybrid securities........................................ (5.8) 73.3 (6.1)
Other (including permanent differences) 1.................................. 1.7 (14.6) 0.9
37.7% (500.9)% 38.4%
(1) Other is comprised of numerous items, none of which is greater than 1.75% of earnings before income taxes.