Dollar Tree 2010 Annual Report Download - page 39

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Notes to Consolidated Financial Statements
NOTE 3—INCOME TAXES
Total income taxes were allocated as follows:
(in millions)
Year Ended
January 29, 2011
Yea r E nd ed
January 30, 2010
Yea r E nd ed
January 31, 2009
Income from continuing operations $ 232.6 $ 187.1 $ 129.6
Accumulated other comprehensive income(loss)
marking derivative fi nancial instruments to fair value 1.3 0.1 (1.7)
Stockholders' equity, tax benefi t on exercises/vesting
of equity-based compensation (7.8) (3.9) (2.3)
$ 226.1 $ 183.3 $ 125.6
The provision for income taxes consists of the following:
(in millions)
Year Ended
January 29, 2011
Yea r E nd ed
January 30, 2010
Yea r E nd ed
January 31, 2009
Federal - current $ 215.7 $ 160.2 $ 91.9
State - current 31.3 27.5 20.7
Total current 247.0 187.7 112.6
Federal - deferred (10.0) (0.4) 15.4
State - deferred (4.4) (0.2) 1.6
Total deferred (14.4) (0.6) 17.0
Provision for income taxes $ 232.6 $ 187.1 $ 129.6
Included in current tax expense for the years ended January 29, 2011, January 30, 2010 and January 31, 2009,
are amounts related to changes in uncertain tax positions associated with temporary differences.
A reconciliation of the statutory federal income tax rate and the effective rate follows:
Year Ended
January 29, 2011
Yea r E nd ed
January 30, 2010
Yea r E nd ed
January 31, 2009
Statutory tax rate 35.0% 35.0% 35.0%
Effect of:
Sta te and local income taxes, net of federal
income tax benefi t 3.4 3.3 3.0
Other, net (1.5) (1.4) (1.9)
Effective tax rate 36.9% 36.9% 36.1%
The rate reduction in “other, net” consists primarily of benefi ts from the resolution of tax uncertainties, interest
on tax reserves, federal jobs credits and tax-exempt interest.
DOLLAR TREE, INC. ♦ 2010 Annual Report 37