Dollar Tree 2011 Annual Report Download - page 39

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NOTE 3—INCOME TAXES
Total income taxes were allocated as follows:
(in millions)
Year Ended
January 28, 2012
January 29, 2011 January 30, 2010
Income from continuing operations $ 291.2 $ 232.6 $ 187.1
Accumulated other comprehensive income (loss)
marking derivative financial instruments to fair value (0.1) 1.3 0.1
Stockholders’ equity, tax benefit on exercises/vesting
of equity-based compensation (13.8) (7.8) (3.9)
$ 277.3 $ 226.1 $ 183.3
e provision for income taxes consists of the following:
(in millions)
Year Ended
January 28, 2012
January 29, 2011 January 30, 2010
Federal - current 240.4 215.7 160.2
State - current 39.4 31.3 27.5
Foreign - current 0.3 ——
Total current 28 0.1 247.0 187.7
Federal - deferred 14.9 (10.0) (0.4)
State - deferred 0.1 (4.4) (0.2)
Foreign - deferred (3.9) ——
Total deferred 11.1 (14.4) (0.6)
Included in current tax expense for the years ended January 28, 2012, January 29, 2011 and January 30, 2010, are
amounts related to uncertain tax positions associated with temporary differences, in accordance with ASC 740.
A reconciliation of the statutory federal income tax rate and the effective rate follows:
Year Ended
January 28, 2012
January 29, 2011 January 30, 2010
Statutory tax rate 35.0% 35.0% 35.0%
Effect of:
Sta te and local income taxes, net of federal
income tax benefit 3.4 3.4 3.3
Other, net (1.0) (1.5) (1.4)
Effective tax rate 37.4% 36.9% 36.9%
e rate reduction in “other, net” consists primarily of benefits from the resolution of tax uncertainties, interest on
tax reserves, federal jobs credits and tax-exempt interest offset by certain nondeductible expenses and foreign taxes.
United States income taxes have not been provided on accumulated but undistributed earnings of its foreign
subsidiaries as the company intends to permanently reinvest earnings.
2011 Annual Report 37