Kroger 2011 Annual Report Download - page 96

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A-41
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
The tax effects of significant temporary differences that comprise tax balances were as follows:
2011 2010
Current deferred tax assets:
Net operating loss and credit carryforwards . . . . . . . . . . . . . . . . . . . $ 1 $ 2
Compensation related costs ................................ 171 165
Total current deferred tax assets ........................ 172 167
Current deferred tax liabilities:
Insurance related costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (111) (113)
Inventory related costs .................................... (220) (229)
Other ................................................. (31) (45)
Total current deferred tax liabilities ...................... (362) (387)
Current deferred taxes ..................................... $ (190) $ (220)
Long-term deferred tax assets:
Compensation related costs ............................... $ 749 $ 474
Lease accounting ....................................... 93 97
Closed store reserves .................................... 66 61
Insurance related costs .................................. 76 75
Net operating loss and credit carryforwards .................. 44 47
Other ................................................ 23 11
Long-term deferred tax assets ........................... 1,051 765
Long-term deferred tax liabilities:
Depreciation .......................................... (1,698) (1,515)
Long-term deferred taxes ................................... $ (647) $ (750)
At January 28, 2012, the Company had net operating loss carryforwards for state income tax purposes
of $595 that expire from 2013 through 2031. The utilization of certain of the Company’s net operating loss
carryforwards may be limited in a given year.
At January 28, 2012, the Company had State credits of $20, some of which expire from 2012 through
2027. The utilization of certain of the Company’s credits may be limited in a given year.
A reconciliation of the beginning and ending amount of unrecognized tax benefits, including positions
impacting only the timing of tax benefits, is as follows:
2011 2010 2009
Beginning balance ..................................... $333 $ 586 $492
Additions based on tax positions related to the current year . . . . 38 38 111
Reductions based on tax positions related to the current year . . . —(237) (4)
Additions for tax positions of prior years .................... 26 13 33
Reductions for tax positions of prior years . . . . . . . . . . . . . . . . . . (10) (51) (16)
Settlements ........................................... (12) (16) (30)
Ending balance ........................................ $375 $ 333 $586
The Company does not anticipate that changes in the amount of unrecognized tax benefits over the next
twelve months will have a significant impact on its results of operations or financial position.
As of January 28, 2012, January 29, 2011 and January 30, 2010, the amount of unrecognized tax benefits
that, if recognized, would impact the effective tax rate was $123, $116 and $132 respectively.