Express 2012 Annual Report Download - page 70

The following table provides the effect of temporary differences that created deferred income taxes as of
February 2, 2013 and January 28, 2012. 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.
February 2, 2013 January 28, 2012
(in thousands)
Deferred tax assets:
Accrued expenses and deferred
compensation .................... $24,776 $22,417
Rent .............................. 12,703 7,831
Inventory .......................... — 1,946
Other ............................. 164 —
Tax credits/carryforwards ............. 478 114
Valuation allowance ................. (978) (290)
Total deferred tax assets .................. 37,143 32,018
Deferred tax liabilities:
Inventory .......................... 2,884 —
Prepaid expenses ................... 2,895 3,767
Intangible assets .................... 5,981 1,764
Property and equipment .............. 9,372 5,710
Other ............................. — 829
Total deferred tax liabilities ............... 21,132 12,070
Net deferred tax asset/(liability) ............ $16,011 $19,948
Included in the valuation allowance against deferred tax assets are net operating loss carryovers from foreign
subsidiaries totaling $0.2 million and $0.1 million as of February 2, 2013 and January 28, 2012, respectively.
These net operating loss carryovers begin expiring in 2031.
As of February 2, 2013, the valuation allowance for foreign tax credit carryovers totaled $0.3 million. The
Company did not have a valuation allowance for foreign tax credit as of January 28, 2012. The foreign tax credit
carryovers begin expiring in 2021.
The amount of the deferred tax assets considered realizable could be adjusted if estimates of future taxable
income during the carryforward periods are reduced or increased or if objective, negative evidence in the form of
cumulative losses is no longer present, and additional weight may be given to subjective evidence, such as the
Company’s projections for growth.
No other valuation allowances have been provided for deferred tax assets because management believes that it is
more-likely-than-not that the full amount of the net deferred tax assets will be realized in the future.
Net deferred tax assets are classified within the Consolidated Balance Sheets and are included in other current
assets for current deferred tax assets and separately identified as deferred taxes for non-current deferred tax
assets. Net deferred tax liabilities are classified within the Consolidated Balance Sheets and are included in
accrued expenses for current deferred tax liabilities and other long-term liabilities for non-current deferred tax
liabilities. The following table summarizes net deferred tax assets:
February 2, 2013 January 28, 2012
(in thousands)
Current deferred tax assets ................ $ — $ 7,486
Current deferred tax liability .............. (797) —
Non-current deferred taxes ................ 16,808 12,462
Net deferred tax assets ............... $16,011 $19,948
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