Foot Locker 2011 Annual Report Download - page 73

FOOT LOCKER, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
17. Income Taxes
Following are the domestic and international components of pre-tax income from continuing operations:
2011 2010 2009
(in millions)
Domestic $321 $158 $(23)
International 114 99 96
Total pre-tax income $435 $257 $ 73
The income tax provision consists of the following:
2011 2010 2009
(in millions)
Current:
Federal $ 93 $(28) $ (6)
State and local 11 4 —
International 24 28 30
Total current tax provision 128 4 24
Deferred:
Federal 16 79 (3)
State and local 6 4 —
International 7 1 5
Total deferred tax provision 29 84 2
Total income tax provision $157 $ 88 $26
Provision has been made in the accompanying Consolidated Statements of Operations for additional
income taxes applicable to dividends received or expected to be received from international subsidiaries.
The amount of unremitted earnings of international subsidiaries for which no such tax is provided and
which is considered to be permanently reinvested in the subsidiaries totaled $771 million and
$679 million at January 28, 2012 and January 29, 2011, respectively. The determination of the amount of
the deferred tax liability related to permanently reinvested earnings is not practicable.
A reconciliation of the significant differences between the federal statutory income tax rate and the
effective income tax rate on pre-tax income from continuing operations is as follows:
2011 2010 2009
Federal statutory income tax rate 35.0% 35.0% 35.0%
State and local income taxes, net of federal tax benefit 3.1 2.3 0.2
International income taxed at varying rates (0.3) 1.0 1.3
Foreign tax credits (1.3) (2.0) (7.4)
Decrease in valuation allowance — (0.4) —
Domestic/foreign tax settlements 0.3 (2.3) (2.8)
Federal tax credits (0.6) (0.7) (2.0)
Canadian tax rate changes — — 6.0
Other, net (0.2) 1.4 5.7
Effective income tax rate 36.0% 34.3% 36.0%
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