Saks Fifth Avenue 2009 Annual Report Download - page 77

Download and view the complete annual report

Please find page 77 of the 2009 Saks Fifth Avenue annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 142

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142

Table of Contents
SAKS INCORPORATED & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits follows:
January 30,
2010
January 31,
2009
February 2,
2008
Unrecognized tax benefits at beginning of year $ 46,031 $ 47,648 $ 46,278
Gross amount of increases for tax positions of prior years 1,111 505 1,793
Gross amount of decreases for tax positions of prior years — (761) —
Gross amount of decreases due to statute expirations (6,656) (1,256) (423)
Gross amount of decreases due to tax settlements (128) (105) —
Balance at end of year $ 40,358 $ 46,031 $ 47,648
The Company analyzed its positions related to the reserve for tax exposures and determined that the amount was adequate. The Company will continue to
analyze its positions related to the reserve for tax exposures on an ongoing basis. At January 30, 2010, $34,969 represents the amount of unrecognized tax
benefits that, if recognized, would impact the effective income tax rate in future periods. The Company continually evaluates its tax filing positions and to the
extent the Company prevails on audits or statutes of limitation expire, the unrecognized tax benefits could be realized. The Company believes that it is reasonably
possible that up to $25,532 in unrecognized tax benefits relating to prior acquisitions could be recognized within 12 months of the January 30, 2010 balance sheet
date.
The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. During the years ended January 30,
2010, January 31, 2009 and February 2, 2008, the Company recognized $(63), $1,688 and $377, respectively in interest and penalties, net of related tax effects.
The Company had accrued $5,005, $5,115 and $3,230 for the payment of interest and penalties as of January 30, 2010, January 31, 2009 and February 2, 2008,
respectively.
The Company files a consolidated U.S. federal income tax return as well as state tax returns in multiple state jurisdictions. The Company has completed
examinations by the Internal Revenue Service or the statute of limitations has expired for taxable years through January 28, 2006. With respect to the state and
local jurisdictions, the Company has completed examinations in many jurisdictions through the same period and beyond and currently has examinations in
progress for several jurisdictions.
F-21
Source: SAKS INC, 10-K, March 18, 2010 Powered by Morningstar® Document Research℠