Saks Fifth Avenue 2011 Annual Report Download - page 61

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SAKS INCORPORATED & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share amounts)
NOTE 4: PROPERTY AND EQUIPMENT
A summary of property and equipment is as follows:
January 28,
2012
January 29,
2011
Land and land improvements ...................................... $ 173,945 $ 174,283
Buildings ...................................................... 674,018 672,628
Leasehold improvements ......................................... 299,696 317,394
Fixtures and equipment .......................................... 812,820 810,251
Construction in progress .......................................... 43,001 15,906
2,003,480 1,990,462
Less: accumulated depreciation .................................... (1,128,049) (1,100,098)
Property and equipment, net ................................... $ 875,431 $ 890,364
Amounts above include gross assets recorded under capital leases for buildings and equipment of $98,595 and
$12,985, respectively as of January 28, 2012 and $98,595 and $7,056, respectively as of January 29, 2011.
Amortization of capital lease assets is included in depreciation expense. Accumulated depreciation of assets
recorded under capital leases was $93,327 and $89,686 as of January 28, 2012 and January 29, 2011,
respectively. During 2011 and 2010, capital lease asset additions were $5,929 and $2,800, which are considered
non-cash investing activities. There were no capital lease asset additions in 2009.
Depreciation expense was $118,513, $118,669, and $135,135 in 2011, 2010, and 2009, respectively.
NOTE 5: INCOME TAXES
The components of income tax expense (benefit) from continuing operations are as follows:
2011 2010 2009
Current income taxes:
Federal .......................................... $ 540 $ (29,664) $ (4,261)
State ............................................ (2,707) (1,600) 345
Current income tax benefit ........................ (2,167) (31,264) (3,916)
Deferred income taxes:
Federal .......................................... 39,368 16,284 (34,266)
State ............................................ (10,107) 1,070 (6,319)
Deferred income tax expense (benefit) .............. 29,261 17,354 (40,585)
Income tax expense (benefit) from continuing operations . . $ 27,094 $ (13,910) $ (44,501)
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