Dick's Sporting Goods 2011 Annual Report Download - page 92

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DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Components of deferred tax assets (liabilities) consist of the following as of the fiscal periods ended (in
thousands):
2011 2010
Store closing expense $ 14,250 $ 18,496
Stock-based compensation 33,303 32,009
Employee benefits 22,185 23,841
Other accrued expenses not currently deductible for tax purposes 3,864 8,973
Deferred rent 23,232 20,837
Insurance 2,521 2,338
Gift cards 8,626 5,365
Deferred revenue currently taxable 4,212 4,132
Non income-based tax reserves 2,834 1,204
Uncertain income tax positions 3,640 4,151
Other 43 205
Total deferred tax assets 118,710 121,551
Property and equipment (69,186) (44,879)
Inventory (14,149) (16,623)
Unrealized gains on securities available-for-sale (70) (3,996)
Intangibles (10,409) (9,935)
Total deferred tax liabilities (93,814) (75,433)
Net deferred tax asset $ 24,896 $ 46,118
In 2011, of the $24.9 million net deferred tax asset, $12.3 million is included within current assets and
$12.6 million is included within other long-term assets on the Consolidated Balance Sheets. In 2010, of
the $46.1 million net deferred tax asset, $19.0 million is included within current assets and $27.1 million
is included within other long-term assets on the Consolidated Balance Sheets.
As of January 28, 2012, the total liability for uncertain tax positions, including related interest and
penalties, was approximately $21.6 million. The following table represents a reconciliation of the
Company’s total unrecognized tax benefits balances, excluding interest and penalties:
2011 2010 2009
Beginning of fiscal year $ 13,560 $ 12,778 $ 7,829
Increases as a result of tax positions taken in a prior period 5,567 695 3,667
Decreases as a result of tax positions taken in a prior period (52) - -
Increases as a result of tax positions taken in the current
period 1,966 2,304 2,185
Decreases as a result of settlements during the current
period (1,757) (667) -
Reductions as a result of a lapse of statute of limitations
during the current period (592) (1,550) (903)
End of fiscal year $ 18,692 $ 13,560 $ 12,778
Included in the balance at January 28, 2012 are $8.3 million of unrecognized tax benefits that would
impact our effective tax rate if recognized. The Company recognizes accrued interest and penalties
related to unrecognized tax benefits in income tax expense.
70 Dick’s Sporting Goods, Inc. 2011 Annual Report