Petsmart 2009 Annual Report Download - page 64

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The activity related to the reserve for closed stores was as follows (in thousands):
January 31,
2010
February 1,
2009
February 3,
2008
Year Ended
(52 weeks) (52 weeks) (53 weeks)
Opening balance.................................. $6,382 $ 6,157 $ 7,689
Reserve for new store closures . .................... 1,526 3,132 2,546
Changes in sublease assumptions.................... 4,173 1,734 1,379
Lease terminations .............................. (565) (821) 529
Other ........................................ 769 517 539
Charges, net ..................................... 5,903 4,562 4,993
Payments ....................................... (4,069) (4,337) (6,525)
Ending balance................................... $8,216 $ 6,382 $ 6,157
We record charges for new closures and adjustments related to changes in subtenant assumptions and other
occupancy payments in operating, general and administrative expenses in the Consolidated Statements of Oper-
ations and Comprehensive Income. We can make no assurances that additional charges related to closed stores will
not be required based on the changing real estate environment.
Note 6 — Income Taxes
Income before income tax expense and equity in income from investee was as follows (in thousands):
January 31,
2010
February 1,
2009
February 3,
2008
Year Ended
(52 weeks) (52 weeks) (53 weeks)
United States .................................... $301,644 $309,311 $401,079
Foreign ........................................ 7,687 1,786 1,114
$309,331 $311,097 $402,193
Income tax expense consisted of the following (in thousands):
January 31,
2010
February 1,
2009
February 3,
2008
Year Ended
(52 weeks) (52 weeks) (53 weeks)
Current provision:
Federal ....................................... $111,911 $ 73,017 $144,961
State/Foreign .................................. 19,215 9,056 18,325
131,126 82,073 163,286
Deferred:
Federal ....................................... (4,439) 34,372 (15,139)
State/Foreign .................................. (9,133) 4,574 (2,967)
(13,572) 38,946 (18,106)
Income tax expense ............................... $117,554 $121,019 $145,180
F-16
PetSmart, Inc. and Subsidiaries
Notes to Consolidated Financial Statements — (Continued)