Kroger 2012 Annual Report Download - page 104

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A-46
NO T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S , CO N T I N U E D
4 . T A X E S B A S E D O N I N C O M E
The provision for taxes based on income consists of:
2012 2011 2010
Federal
Current ........................................... $563 $146 $ 697
Deferred .......................................... 154 78 (136)
717 224 561
State and local
Current ........................................... 46 42 95
Deferred .......................................... 31 (19) (55)
77 23 40
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $794 $247 $ 601
A reconciliation of the statutory federal rate and the effective rate follows:
2012 2011 2010
Statutory rate .................................... 35.0% 35.0% 35.0%
State income taxes, net of federal tax benefit .......... 2.2% 1.8% 1.5%
Credits ......................................... (1.4)% (3.6)% (1.3)%
Favorable resolution of issues ....................... (0.5)% (3.4)% (.8 )%
Other changes, net ............................... (0.8)% (0.5)% 0.3%
34.5% 29.3% 34.7%
The 2011 effective tax rate was significantly lower than 2012 and 2010 due to the effect on pre-tax
income of the UFCW consolidated pension plan charge of $953 ($591 after-tax) in 2011. The effect of the
UFCW consolidated pension plan charge reduced pre-tax income thereby increasing the effect of credits and
of the favorable resolution of tax issues on our 2011 effective tax rate.