Ross 2008 Annual Report Download - page 49

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47
The components of deferred income taxes at January 31, 2009 and February 2, 2008 are as follows:
($000) 2008 2007
Deferred Tax Assets
Deferred compensation $ 25,015 $ 29,163
Deferred rent 10,490 9,755
Employee benefits 7,861 7,474
Accrued liabilities 18,776 20,999
California franchise taxes 3,701 3,976
Stock-based compensation 7,771 7,991
Other 5,761 3,950
79,375 83,308
Deferred Tax Liabilities
Depreciation (121,952) (105,174)
Merchandise inventory (30,627) (27,544)
Supplies (7,015) (6,281)
Prepaid expenses (5,657) (5,538)
Other 2,812 1,969
(162,439) (142,568)
Net Deferred Tax Liabilities $ (83,064) $ (59,260)
Classified as:
Current net deferred tax asset $ 14,093 $ 19,639
Long-term net deferred tax liability (97,157) (78,899)
Net Deferred Tax Liabilities $ (83,064) $ (59,260)
Effective February 4, 2007, the Company adopted the provisions of FIN 48. As a result, the Company established a $26.3
million reserve for unrecognized tax benefits, inclusive of $6.0 million of related interest. The reserve is classified as a long-term
liability and included in other long-term liabilities in the Company’s consolidated balance sheets. Upon adoption of FIN 48, the
Company also recognized a reduction in retained earnings of $7.4 million and certain other deferred income tax assets and
liabilities were reclassified. The changes in amounts of unrecognized tax benefits (gross of federal tax benefits and excluding
interest) since adoption of FIN 48 at January 31, 2009 and February 2, 2008 are as follows:
($000) 2008 2007
Unrecognized tax benefits - beginning of year $ 23,218 $ 25,680
Gross increases:
Tax positions in current period 4,695 5,451
Tax positions in prior period 3,658 1,486
Gross decreases:
Tax positions in prior periods (1,115) (6,352)
Lapse of statute limitations (1,783) (3,004)
Settlements (2,335) (43)
Unrecognized tax benefit - at year end $ 26,338 $ 23,218