American Eagle Outfitters 2009 Annual Report Download - page 66

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The significant components of the Company’s deferred tax assets and liabilities were as follows:
January 30,
2010
January 31,
2009
(In thousands)
Deferred tax assets:
Deferred compensation ..................................... $ 36,018 $ 21,492
Tax credits .............................................. 31,756 4,217
Rent ................................................... 24,498 22,207
Inventories .............................................. 11,422 14,828
Investment securities ....................................... 10,677 8,721
Employee compensation and benefits ........................... 10,669 3,677
Foreign and state income taxes . .............................. 7,484 12,984
Temporary impairment of investment securities ................... 3,911 13,446
Other .................................................. 8,384 10,158
Gross deferred tax assets ...................................... 144,819 111,730
Valuation allowance ....................................... (15,688) (12,933)
Total deferred tax assets ...................................... $129,131 $ 98,797
Deferred tax liabilities:
Property and equipment..................................... $(37,896) $ (36,641)
Prepaid expenses .......................................... (3,774) (1,708)
Total deferred tax liabilities .................................... $(41,670) $ (38,349)
Total deferred tax assets, net ................................... $ 87,461 $ 60,448
Classification in the Consolidated Balance Sheet
Current deferred tax assets .................................. $ 60,156 $ 45,447
Noncurrent deferred tax assets . . .............................. 27,305 15,001
Total deferred tax assets ...................................... $ 87,461 $ 60,448
The net increase in deferred tax assets and liabilities was primarily due to an increase in the deferred tax asset
for tax credit carryovers associated with the repatriation of earnings from Canada and an increase in the deferred tax
asset for deferred compensation.
65
AMERICAN EAGLE OUTFITTERS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)