Dick's Sporting Goods 2012 Annual Report Download - page 91

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69
DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
As of February 2, 2013, the total liability for uncertain tax positions, including related interest and
penalties, was approximately $12.9 million. The following table represents a reconciliation of the
Company’s total unrecognized tax benefits balances, excluding interest and penalties:
2012 2011 2010
Beginning of fiscal year $ 18,692 $ 13,560 $ 12,778
Increases as a result of tax positions taken in a prior period 1,816 5,567 695
Decreases as a result of tax positions taken in a prior period (4,370) (52) -
Increases as a result of tax positions taken in the current period 1,740 1,966 2,304
Decreases as a result of settlements during the current period (6,405) (1,757) (667)
Reductions as a result of a lapse of statute of limitations during the
current period (803) (592) (1,550)
End of fiscal year $ 10,670 $ 18,692 $ 13,560
Included in the balance at February 2, 2013 are $7.3 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.
As of February 2, 2013, the liability for uncertain tax positions included $2.2 million for the accrual of
interest and penalties. During the years ended February 2, 2013, January 28, 2012 and January 29,
2011, the Company recorded $0.8 million, $1.3 million and $1.2 million, respectively, for the accrual of
interest and penalties in its Consolidated Statements of Income. The Company has federal, state and
local examinations currently ongoing. It is possible that these examinations may be resolved within
12 months. Due to the potential for resolution of these examinations, and the expiration of various
statutes of limitation, it is reasonably possible that $4.0 million of the Company’s gross unrecognized
tax benefits and interest at February 2, 2013 could be recognized within the next 12 months. The
Company does not anticipate that changes in its unrecognized tax benefits will have a material impact
on the Consolidated Statements of Income during fiscal 2013.
The Company is no longer subject to U.S. Federal examination for years prior to 2007. The Company
is no longer subject to examination in any of its major state jurisdictions for years prior to 2006.