Pep Boys 2011 Annual Report Download - page 101

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THE PEP BOYS—MANNY, MOE & JACK AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Years ended January 29, 2011, January 30, 2010 and January 31, 2009
NOTE 8—INCOME TAXES
The components of income before income taxes are as follows:
Year Ended
January 28, January 29, January 30,
(dollar amounts in thousands) 2012 2011 2010
Domestic ............................. $36,633 $52,319 $41,921
Foreign .............................. 4,954 6,125 (4,305)
Total ................................ $41,588 $58,444 $37,616
The provision for income taxes includes the following:
Year Ended
January 28, January 29, January 30,
(dollar amounts in thousands) 2012 2011 2010
Current:
Federal............................. $ — $ — $ 398
State............................... 602 491 (511)
Foreign ............................. 1,557 2,210 149
Deferred:
Federal(a) ............................ 14,743 20,309 13,820
State ............................... (3,887) (1,818) 42
Foreign ............................. (555) 81 (395)
Total income tax expense from continuing
operations(a) ......................... $12,460 $21,273 $13,503
(a) Excludes tax benefit recorded to discontinued operations of $0.1 million, $0.3 million and
$0.6 million in fiscal 2011, 2010 and 2009, respectively.
A reconciliation of the statutory federal income tax rate to the effective rate for income tax
expense follows:
Year Ended
January 28, January 29, January 30,
2012 2011 2010
Statutory tax rate ....................... 35.0% 35.0% 35.0%
State income taxes, net of federal tax . . . . . . . . . 3.2 2.4 2.4
Job credits ............................ (1.5) (0.3) (0.9)
Hire credits ........................... (2.1) — —
Tax uncertainty adjustment ................ (0.1) 0.2 (0.5)
Valuation allowance ..................... (8.3) (3.5) —
Non deductible expenses . . . . . . . . . . . . . . . . . . 2.0 0.5 0.3
Stock compensation . . . . . . . . . . . . . . . . . . . . . . 0.1 0.2 0.8
Foreign taxes, net of federal tax . . . . . . . . . . . . . 1.7 2.4 (0.7)
Other, net ............................ — (0.5) (0.5)
30.0% 36.4% 35.9%
57