Big Lots 2012 Annual Report Download - page 146

66
BIG LOTS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 9 — Income Taxes
The provision for income taxes from continuing operations was comprised of the following:
(In thousands) 2012 2011 2010
Current:
U.S. Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 91,361 $107,410 $ 95,124
U.S. State and local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,302 16,791 17,326
Non-U.S.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — —
Total current tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104,663 124,201 112,450
Deferred:
U.S. Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,418 9,203 20,876
U.S. State and local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,067 1,253 (489)
Non-U.S.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — —
Total deferred tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,485 10,456 20,387
Income tax provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $117,148 $134,657 $132,837
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 for 2010. There were no fluctuations in deferred tax assets related to discontinued operations in
2012 and 2011. Fluctuations related principally to pension-related charges recorded in accumulated other
comprehensive income were $1.7 million decrease, $2.6 million increase and $1.7 million decrease for 2012,
2011, and 2010, respectively. Additionally, net deferred tax assets decreased by $0.1 million in 2012 and
increased by $0.2 million in 2011 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:
2012 2011 2010
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 3.4 3.1
Non-U.S. income tax rate differential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4 0.4 —
Work opportunity tax and other employment tax credits . . . . . . . . . . . . . . . . . . . (0.3) (0.4) (0.3)
Net benefit recognized for prior year tax uncertainties . . . . . . . . . . . . . . . . . . . . — — (0.3)
Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 1.0 —
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 — (0.1)
Effective income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39.8% 39.4% 37.4%
In 2012 and 2011, the valuation allowance was associated with the non-U.S. deferred tax expense from our
Canadian segment.
Income tax payments and refunds were as follows:
2012 2011 2010
(In thousands)
Income taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $95,596 $114,406 $100,973
Income taxes refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,764) (983) (837)
Net income taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $92,832 $113,423 $100,136