Saks Fifth Avenue 2008 Annual Report Download - page 73

SAKS INCORPORATED & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
NOTE 5 — INCOME TAXES
The components of income tax expense (benefit) from continuing operations were as follows:
2008 2007 2006
Current:
Federal ..................................................... $ 1,717 $ 826 $(100,085)
State ....................................................... (839) 2,141 (26,566)
878 2,967 (126,651)
Deferred:
Federal ..................................................... (48,870) 27,745 85,893
State ....................................................... 1,660 (1,559) 7,732
(47,210) 26,186 93,625
Total expense (benefit) from continuing operations .................. $(46,332) $29,153 $ (33,026)
Components of the net deferred tax asset or liability recognized in the consolidated balance sheets were as
follows:
January 31,
2009
February 2,
2008
Current:
Deferred tax assets:
Accrued expenses ................................................ $ 28,099 $ 27,543
NOL carryforwards ............................................... 1,029 23,828
Valuation allowance .............................................. (2,322) (10,609)
Deferred tax liabilities:
Inventory ....................................................... 3,110 2,065
Net current deferred tax asset ........................................... $ 29,916 $ 42,827
Non-current:
Deferred tax assets:
Capital leases ................................................... $ 23,968 $ 26,018
Rent Adjustments ................................................ 18,433 —
Pension ........................................................ 15,993 —
Other long-term liabilities .......................................... 45,913 52,678
AMT Credit ..................................................... 24,269 24,269
NOL carryforwards ............................................... 134,557 66,611
Valuation allowance .............................................. (39,868) (53,228)
Deferred tax liabilities:
Property and equipment ........................................... (11,446) (19,259)
Other assets ..................................................... 14 19
Net non-current deferred tax asset ....................................... $211,833 $ 97,108
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