Express 2015 Annual Report Download - page 50

Table of Contents
The following table provides the effect of temporary differences that created deferred income taxes as of January 30, 2016 and January 31, 2015. 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.
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Deferred tax assets:
Accrued expenses and deferred compensation $ 40,540
$ 30,667
Rent 28,551
25,605
Lease financing obligations 28,492
29,072
Inventory 1,778
—
Other 1,774
2,104
Tax credits/carryforwards 214
—
Valuation allowance (2,081)
(1,668)
Total deferred tax assets 99,268
85,780
Deferred tax liabilities:
Inventory —
5,915
Prepaid expenses 4,177
3,762
Intangible assets 17,996
13,844
Property and equipment 55,868
51,732
Total deferred tax liabilities 78,041
75,253
Net deferred tax asset $ 21,227
$ 10,527
The net increase in the total valuation allowance attributable to foreign operations for the years ended January 30, 2016, and January 31, 2015 was $0.4
million and $0.3 million, respectively. The foreign capital loss carryforward as of January 30, 2016 and January 31, 2015 was $0.3 million and $0.4 million,
respectively. The Company has established a full valuation allowance related to the foreign capital loss carryforward. The foreign capital loss carryforward
period is indefinite.
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.
Prior to the early adoption of ASU 2015-17 on a prospective basis, net deferred tax assets were classified within the Consolidated Balance Sheets and were
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 were classified within the Consolidated Balance Sheets and were included in accrued expenses for current deferred tax liabilities and other long-
term liabilities for non-current deferred tax liabilities. All net deferred tax assets and liabilities are now classified as non-current within the Consolidated
Balance Sheets. Refer to Note 1 of the Consolidated Financial Statements for additional information on the adoption of ASU 2015-17. The following table
summarizes net deferred tax assets:
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Current deferred tax liability $ —
$ (1,844)
Non-current deferred tax asset 21,227
12,371
Net deferred tax assets $ 21,227
$ 10,527
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