Dollar Tree 2010 Annual Report Download - page 40

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Notes to Consolidated Financial Statements
Deferred income taxes refl ect the net tax effects of temporary differences between the carrying amounts of
assets and liabilities for fi nancial reporting purposes and the amounts used for income tax purposes. Deferred tax
assets and liabilities are classifi ed on the accompanying consolidated balance sheets based on the classifi cation of the
underlying asset or liability. Signifi cant components of the Company’s net deferred tax assets (liabilities) follow:
(in millions) January 29, 2011 January 30, 2010
Deferred tax assets:
Deferred rent $ 31.4 $ 23.0
Accrued expenses
25.4 24.8
Property and equipment —
4.3
Sta te tax net operating losses and credit carryforwards,
net of federal benefi t
6.4
6.7
Accrued compensation expense
22.5
22.2
Other
1.9
2.0
Total deferred tax assets
87.6
83.0
Valuation allowance
(4.8)
(6.1)
Deferred tax assets, net
82.8
76.9
Deferred tax liabilities:
Property and equipment
(4.6) —
Goodwill
(15.8)
(15.1)
Prepaid expenses
(3.8)
(7.0)
Inventory
(4.3)
(13.6)
Total deferred tax liabilities
(28.5)
(35.7)
Net deferred tax asset $ 54.3 $ 41.2
38 DOLLAR TREE, INC. ♦ 2010 Annual Report