Ross 2007 Annual Report Download - page 57

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55
The provision for taxes for financial reporting purposes is different from the tax provision computed by applying the statutory
federal income tax rate. Differences are as follows:
2007 2006 2005
Federal income taxes at the statutory rate 35% 35% 35%
State income taxes (net of federal benefit) and other, net 4% 4% 4%
39% 39% 39%
The components of deferred income taxes at February 2, 2008 and February 3, 2007 are as follows:
($000)
2007 2006
Deferred Tax Assets
Deferred compensation $ 29,163 $ 28,813
Deferred rent 9,755 8,742
Employee benefits 7,474 7, 3 07
Accrued liabilities 20,999 16,633
California franchise taxes 3,976 3,905
Stock-based compensation 7,991 3,998
Other 3,950 3,579
83,308 72,977
Deferred Tax Liabilities
Depreciation (105,174) (110,445)
Merchandise inventory (27,544) (25,189)
Supplies (6,281) (5,134)
Prepaid expenses (5,538) (4,587)
Other 1,969 2,419
(142,568) (142,936)
Net Deferred Tax Liabilities $ (59,260) $ (69,959)
In June 2006, the FASB issued FIN 48. This statement clarifies the criteria that an individual tax position must satisfy for some
or all of the benefits of that position to be recognized in a company’s consolidated financial statements. FIN 48 prescribes a
recognition threshold of more-likely–than-not, and a measurement standard for all tax positions taken or expected to be taken
on a tax return, in order for those tax positions to be recognized in the consolidated financial statements.