Dollar Tree 2013 Annual Report Download - page 56

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40
The provision for income taxes consists of the following:
Year Ended
February 1, February 2, January 28,
(in millions) 2014 2013 2012
Federal - current $ 304.6 $ 324.5 $ 240.4
State - current 45.9 42.4 39.4
Foreign - current 0.4 0.5 0.3
Total current 350.9 367.4 280.1
Federal - deferred 10.5 0.3 14.9
State - deferred 0.9 (3.5) 0.1
Foreign - deferred (4.7)(4.6)(3.9)
Total deferred $ 6.7 $ (7.8) $ 11.1
Included in current tax expense for the years ended February 1, 2014, February 2, 2013 and January 28, 2012, 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
February 1,
2014
February 2,
2013
January 28,
2012
Statutory tax rate 35.0% 35.0% 35.0%
Effect of:
State and local income taxes,
net of federal income tax benefit 3.3 3.0 3.4
Other, net (0.8)(1.3)(1.0)
Effective tax rate 37.5% 36.7% 37.4%
The rate reduction in “other, net” consists primarily of benefits from the resolution of tax uncertainties, interest on tax
reserves, federal jobs credits, foreign taxes and tax-exempt interest offset by certain nondeductible expenses.
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.
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are
classified on the accompanying consolidated balance sheets based on the classification of the underlying asset or
liability. Significant components of the Company's net deferred tax assets (liabilities) follow: