TJ Maxx 2009 Annual Report Download - page 85

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K. Income Taxes
The provision for income taxes includes the following:
In thousands
January 30,
2010
January 31,
2009
January 26,
2008
Fiscal Year Ended
(53 weeks)
Current:
Federal $465,799 $259,857 $375,799
State 104,621 27,376 94,727
Foreign 114,195 97,976 87,260
Deferred:
Federal 54,544 126,816 (64,363)
State 1,773 23,955 (15,698)
Foreign (2,942) 74 (70)
Provision for income taxes $737,990 $536,054 $477,655
Income from continuing operations before income taxes includes foreign pre-tax income of $342.3 million in fiscal
2010, $292.6 million in fiscal 2009 and $260.8 million in fiscal 2008.
TJX had net deferred tax (liabilities) assets as follows:
In thousands
January 30,
2010
January 31,
2009
Fiscal Year Ended
Deferred tax assets:
Foreign tax credit carryforward $ 89,796 $ 37,611
Reserve for discontinued operations 11,813 14,859
Pension, stock compensation, postretirement and employee benefits 253,926 238,557
Leases 39,635 38,889
Foreign currency and hedging 3,743 4,571
Computer Intrusion reserve 8,722 16,749
Other 88,447 83,483
Total deferred tax assets $496,082 $434,719
Deferred tax liabilities:
Property, plant and equipment $274,937 $215,462
Capitalized inventory 44,079 44,102
Tradename 42,873 42,873
Undistributed foreign earnings 193,252 111,506
Other 10,926 12,109
Total deferred tax liabilities 566,067 426,052
Net deferred tax (liability) asset $ (69,985) $ 8,667
The fiscal 2010 net deferred tax liability is presented on the balance sheet as a current asset of $122.5 million and a
non-current liability of $192.4 million. For fiscal 2009, the net deferred tax asset is presented on the balance sheet as a
current asset of $135.7 million and a non-current liability of $127.0 million. TJX has provided for deferred U.S. taxes on
all undistributed earnings from its Winners Canadian subsidiary, its Marshalls Puerto Rico subsidiary and its Italian
subsidiary through January 30, 2010. All earnings of TJX’s other foreign subsidiaries are considered indefinitely
reinvested and no U.S. deferred taxes have been provided on those earnings. The net deferred tax (liability) asset
summarized above includes deferred taxes relating to temporary differences at our foreign operations and amounted to
an $18.9 million net liability as of January 30, 2010 and a $19.9 million net liability as of January 31, 2009.
In fiscal 2009, TJX’s HomeGoods subsidiary utilized a Puerto Rico net operating loss carryforward of approximately
$1.1 million which had not been previously recognized. There were no further Puerto Rico net operating losses as of the
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