Express 2011 Annual Report Download - page 78

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The provision for income taxes consists of the following:
2011 2010 2009
(in thousands)
Current:
U.S. federal ..................................... $76,984 $ 25,623 $ —
U.S. state and local ............................... 18,048 7,746 1,573
Foreign ........................................ 156 — —
Total .......................................... 95,188 33,369 1,573
Deferred:
U.S. federal ..................................... 714 (16,085) —
U.S. state and local ............................... (949) (2,930) (337)
Foreign ........................................ (85) — —
Total .......................................... (320) (19,015) (337)
Provision for income taxes ......................... $94,868 $ 14,354 $1,236
The following table provides a reconciliation between the statutory federal income tax rate and the effective tax rate:
2011 2010 2009
Federal income tax rate .................................... 35.0% 35.0% — %
State income taxes, net of federal income tax effect .............. 4.7% 4.5% 1.6%
Entity status change from partnership ......................... — % (22.5)% — %
Partnership income not taxable .............................. — % (7.6)% — %
Other items, net .......................................... 0.6% 0.7% — %
Effective tax rate ......................................... 40.3% 10.1% 1.6%
The following table provides the effect of temporary differences that created deferred income taxes as of
January 28, 2012 and January 29, 2011. Deferred tax assets and liabilities represent the future effects on income
taxes resulting from temporary differences and carry-forwards at the end of the respective periods.
January 28, 2012 January 29, 2011
(in thousands)
Deferred tax assets:
Accrued expenses and deferred
compensation .................... $22,417 $17,964
Property and equipment .............. — —
Intangible assets .................... — 934
Rent .............................. 7,831 5,932
Inventory .......................... 1,946 —
Tax credits/carryforwards ............. 114 —
Valuation allowance ................. (290) —
Total deferred tax assets .................. 32,018 24,830
Deferred tax liabilities:
Inventory .......................... — 1,653
Prepaid expenses ................... 3,767 —
Intangible assets .................... 1,764 —
Property and equipment .............. 5,710 1,905
Other ............................. 829 1,644
Total deferred tax liabilities ............... 12,070 5,202
Net deferred tax assets/(liabilities) .......... $19,948 $19,628
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