Big Lots 2011 Annual Report Download - page 180

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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 2011, 2010,
and 2009, we expensed $5.2 million, $5.6 million, and $5.6 million, respectively, related to our matching
contributions. In connection with our nonqualified deferred compensation plan, we had liabilities of $20.4
million and $20.2 million at January 28, 2012 and January 29, 2011, respectively.
Note 9 — Income Taxes
The provision for income taxes from continuing operations was comprised of the following:
2011 2010 2009
(In thousands)
Current:
U.S. Federal ............................................ $107,410 $ 95,124 $ 91,083
U.S. State and local ...................................... 16,791 17,326 11,890
Non-U.S................................................ — — —
Total current tax expense ............................... 124,201 112,450 102,973
Deferred:
U.S. Federal ............................................ 9,203 20,876 15,176
U.S. State and local ...................................... 1,253 (489) 3,826
Non-U.S................................................ — — —
Total deferred tax expense .............................. 10,456 20,387 19,002
Income tax provision ........................................ $ 134,657 $ 132,837 $ 121,975
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 and $0.5 million increase for 2010 and 2009, respectively. There were no fluctuations in deferred tax
assets related to discontinued operations in 2011. Fluctuations related principally to pension-related charges
recorded in accumulated other comprehensive income were $2.6 million increase, $1.7 million decrease, and
$1.4 million decrease for 2011, 2010, and 2009, respectively. Additionally, net deferred tax assets increased by
$0.2 million as a result of the establishment of goodwill associated with the acquisition of the U.S. subsidiaries
of Liquidation World Inc.
Reconciliation between the statutory federal income tax rate and the effective income tax rate for continuing
operations was as follows:
2011 2010 2009
Statutory federal income tax rate........................................ 35.0% 35.0% 35.0%
Effect of:
State and local income taxes, net of federal tax benefit.................... 3.4 3.1 3.2
Non-U.S. income tax rate differential ................................. 0.4 — —
Work opportunity tax and other employment tax credits................... (0.4) (0.3) (0.5)
Net benefit recognized for prior year tax uncertainties .................... — (0.3) —
Valuation allowance ............................................... 1.0 — (0.4)
Other, net ....................................................... — (0.1) 0.4
Effective income tax rate ........................................ 39.4% 37.4% 37.7%
In 2011, the valuation allowance was associated with the non-U.S. deferred tax expense from our Canadian segment.