Kroger 2011 Annual Report Download - page 95

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A-40
NO T E S T O CO N S O L I D A T E D FI N A N C I A L ST A T E M E N T S , CO N T I N U E D
4. TA X E S BA S E D O N IN C O M E
The provision for taxes based on income consists of:
2011 2010 2009
Federal
Current ........................................... $146 $ 697 $193
Deferred .......................................... 78 (136) 275
224 561 468
State and local
Current ........................................... 42 95 41
Deferred .......................................... (19) (55) 23
23 40 64
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $247 $ 601 $532
A reconciliation of the statutory federal rate and the effective rate follows:
2011 2010 2009
Statutory rate .................................... 35.0% 35.0% 35.0%
State income taxes, net of federal tax benefit . . . . . . . . . . 1.8% 1.5% 7.1%
Credits ......................................... (3.6)% (1.3)% (3.4)%
Favorable resolution of issues ....................... (3.4)% (.8)% (2.5 )%
Goodwill impairment ............................. — — 53.9%
Other changes, net ............................... (0.5)% 0.3% 0.3%
29.3% 34.7% 90.4%
The 2011 effective tax rate was significantly lower than 2010 due to the effect on pre-tax income of
the UFCW consolidated pension plan charge of $953 ($591 after-tax). The effect of the UFCW consolidated
pension plan charge on our effective tax rate is reflected in the increased percentages for credits and favorable
resolution of issues.