Barnes and Noble 2012 Annual Report Download - page 47

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9. INCOME TAXES
The Company fi les a consolidated federal return with all
subsidiaries owned  or more. Federal and state income
tax provisions (benefi ts) for fi scal , fi scal  and
fi scal  are as follows:
Fiscal 2012 Fiscal 2011 Fiscal 2010
Current:
Federal $ 6,228 (47,825) 51,343
State 3,602 (2,441) 14,192
Total current 9,830 (50,266) 65,535
Deferred:
Federal (28,504) 8,057 (45,903)
State (9,066) (6,443) (11,267)
Total deferred (37,570) 1,614 (57,170)
Total $ (27,740) (48,652) 8,365
Reconciliation between the eff ective income tax rate and
the federal statutory income tax rate is as follows:
Fiscal 2012 Fiscal 2011 Fiscal 2010
Federal statutory income
tax rate 35.0% 35.0% 35.0%
State income taxes, net of
federal income tax benefi t 4.4 4.8 3.8
Additions to unrecognized
tax benefi ts (1.0) (2.5) 11.2
Reductions to unrecognized
tax benefi ts 0.7 1.3 (31.8)
Excess 162(m) limitationa(9.3) — —
Other, net (1.1) 1.1 0.4
Effective income tax rate 28.7% 39.7% 18.6%
a Relates to 162(m) compensation in excess of limitation for the current
year and prior year.
The tax eff ects of temporary diff erences that give rise to
signifi cant components of the Company’s deferred tax
assets and liabilities as of April ,  and April , 
are as follows:
April 28,
2012
April 30,
2011
Deferred tax liabilities:
Investment in Barnes &
Noble.com $ (95,051) (95,051)
Property & equipment (63,216) (57,156)
Goodwill and intangible
asset amortization (233,322) (236,845)
Prepaid expenses (7,827) (7,125)
Other (6,226) (4,861)
Total deferred tax liabilities (405,642) (401,038)
Deferred tax assets:
Loss and credit carryovers 75,817 57,751
Lease transactions 30,043 32,986
Estimated accruals 88,823 52,868
Stock-based compensation 9,946 11,508
Insurance liability 11,105 11,396
Pension 11,953 10,254
Inventory 19,674 18,996
Investments in equity
securities 1,282 1,282
Total deferred tax assets 248,643 197,041
Net deferred tax liabilities $ (156,999) (203,997)
Balance Sheet caption
reported in:
Prepaid expenses and other
current assets $ 111,775 76,135
Deferred tax liabilities (268,774) (280,132)
Net deferred tax liabilities $ (156,999) (203,997)
At April , , the Company had federal and state net
operating loss carryforwards (NOLs) of approximately
, that expire beginning in  through , the
utilization of which is limited to approximately , on
an annual basis. Additionally, the Company had approxi-
mately , of federal NOLs and , of state NOLs
that have no annual limitation and expire beginning in
 through . These NOLs account for , of the
, of loss and credit carryover deferred tax assets at
April , , with the remainder relating primarily to
other state NOLs and federal credits.
2012 Annual Report 45