Big Lots 2010 Annual Report Download - page 137

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BIG LOTS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 8 — Employee Benefit Plans (Continued)
Savings Plans
We have a savings plan with a 401(k) deferral feature and a nonqualified deferred compensation plan with a
similar deferral feature for eligible employees. We contribute a matching percentage of employee contributions.
Our matching contributions are subject to Internal Revenue Service (“IRS”) regulations. For 2010, 2009,
and 2008, we expensed $5.6 million, $5.6 million, and $5.4 million, respectively, related to our matching
contributions. In connection with our nonqualified deferred compensation plan, we had liabilities of $20.2
million and $17.1 million at January 29, 2011 and January 30, 2010, respectively.
Note 9 — Income Taxes
The provision for income taxes from continuing operations was comprised of the following:
2010 2009 2008
(In thousands)
Federal — current ........................................... $ 95,124 $ 91,083 $ 71,619
State and local — current ..................................... 17,326 11,890 9,771
Federal — deferred .......................................... 20,876 15,176 10,189
State and local — deferred .................................... (489) 3,826 3,329
Income tax provision ...................................... $ 132,837 $ 121,975 $94,908
Net deferred tax assets fluctuated by items that are not reflected in deferred expense above. The fluctuations
in net deferred tax assets related to discontinued operations deferred income tax expense were $0.1 million
decrease, $0.5 million increase, and $2.0 million increase for 2010, 2009, and 2008, respectively. Fluctuations
related principally to pension–related charges recorded in accumulated other comprehensive income were $1.7
million decrease, $1.4 million decrease, and $5.8 million increase for 2010, 2009, and 2008, respectively.
Reconciliation between the statutory federal income tax rate and the effective income tax rate was as follows:
2010 2009 2008
Statutory federal income tax rate ...................................... 35.0% 35.0% 35.0%
Effect of:
State and local income taxes, net of federal tax benefit................... 3.1 3.2 3.4
Work opportunity tax and other employment tax credits.................. (0.3) (0.5) (0.6)
Net benefit recognized for prior year tax uncertainties ................... (0.3) 0.0 (0.2)
Valuation allowance .............................................. — (0.4) 0.4
Other, net ...................................................... (0.1) 0.4 —
Effective income tax rate ....................................... 37.4% 37.7% 38.0%
Income tax payments and refunds were as follows:
2010 2009 2008
(In thousands)
Income taxes paid ......................................... $ 100,973 $ 105,961 $92,433
Income taxes refunded...................................... (837) (694) (3,324)
Net income taxes paid ................................... $ 100,136 $ 105,267 $89,109