Neiman Marcus 2012 Annual Report Download - page 118
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Table of Contents
A reconciliation of income tax expense to the amount calculated based on the federal and state statutory rates is as follows:
Fiscal year ended
(in thousands)
August 3,
2013
July 28,
2012
July 30,
2011
Income tax expense at statutory rate $97,101 $79,918 $ 17,242
State income taxes, net of federal income tax benefit 11,672 8,672 874
Unbenefitted losses in foreign subsidiary 4,594 530 —
Tax expense (benefit) related to tax settlements and other changes in tax
liabilities 525 (1,137) 153
Impact of non-taxable income (13)(18)(169)
Impact of non-deductible expenses 683 1,000 77
Other (829) (714) (536)
Total $113,733 $88,251 $17,641
Effective tax rate 41.0%38.7%35.8%
In fiscal year 2013, we generated earnings before income taxes of approximately $277.4 million, which resulted in a recorded income tax expense of
approximately $113.7 million and an effective tax rate of 41.0%. In fiscal year 2012, we generated earnings before income taxes of approximately $228.3
million, which resulted in a recorded income tax expense of approximately $88.3 million and an effective tax rate of 38.7%. The effective tax rates for fiscal
year 2013 and fiscal year 2012 exceeded the statutory rate primarily due to state income taxes and the lack of a U.S. tax benefit related to the losses from our
investment in a foreign e-commerce retailer.
Significant components of our net deferred income tax asset (liability) are as follows:
(in thousands)
August 3,
2013
July 28,
2012
Deferred income tax assets:
Accruals and reserves $25,909 $23,596
Employee benefits 128,225 161,539
Other 20,298 23,260
Total deferred tax assets $174,432 $208,395
Deferred income tax liabilities:
Inventory $(8,110) $ (11,809)
Depreciation and amortization (69,167)(72,732)
Intangible assets (696,056)(714,743)
Other (12,835) (13,232)
Total deferred tax liabilities (786,168)(812,516)
Net deferred income tax liability $(611,736) $ (604,121)
Net deferred income tax asset (liability):
Current $27,645 $22,484
Non-current (639,381) (626,605)
Total $(611,736)$(604,121)
The net deferred tax liability of $611.7 million at August 3, 2013 increased from $604.1 million at July 28, 2012. This increase was comprised
primarily of 1) $33.3 million decrease in deferred tax assets related to the decrease in our employee benefit plan liabilities, partially offset by 2) $18.7 million
decrease in deferred tax liabilities related to the amortization of certain intangible assets and 3) $3.7 million decrease in deferred tax liabilities related to
inventory. We believe it is more likely than not that we will realize the benefits of our recorded deferred tax assets.
F-24