Lululemon 2010 Annual Report Download - page 80

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Table of Contents
lululemon athletica inc. and Subsidiaries
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and
deferred tax liabilities at January 30, 2011 and January 31, 2010 are presented below:
We have recorded deferred tax assets in respect of foreign tax credits and other deductible temporary differences
of $7,894.
The Company’s current and deferred taxes from federal, state and foreign sources were as follows:
United States income taxes and foreign withholding taxes are not provided on undistributed earnings of foreign
subsidiaries which are considered to be indefinitely reinvesting in the operations of such subsidiaries. The amount of
these earnings was approximately $196,763 at January 30, 2011 and $113,466 at January 31, 2010. Where excess
cash from unremitted earnings has accumulated in our foreign operations and it is advantageous for tax reasons, these
earnings may be remitted.
17 SEGMENTED FINANCIAL INFORMATION
The Company applies ASC Topic 280, Segment Reporting (“ASC 280”),
in determining reportable segments for
financial statement disclosure. Based on financial information provided to the chief operating decision maker of the
Company and the manner in which the Company operates its outlets and other operations, the Company determined
that each store, showroom and warehouse sales or outlet is an operating segment. The Company’s operating
segments also include, direct to consumer through www.lululemon.com , phone sales, Canadian franchise
75
January 30,
January 31,
2011
2010
Deferred tax assets
Net operating loss carryforward
$
472
$
—
Foreign tax credits
672
7,582
Property and equipment
(734
)
(476
)
Deferred lease liability
4,896
4,256
Lease exit costs
92
908
Stock
-
based compensation
1,567
1,245
Other
1,027
1,687
Valuation allowance
(98
)
(100
)
$
7,894
$
15,102
January 30,
January 31,
February 1,
2011
2010
2009
Current taxes
Federal
$
9,476
$
3,621
$
—
State
2,435
243
5
Foreign
37,935
25,965
23,727
Total current
49,846
29,829
23,732
Deferred taxes
Federal
$
11,182
$
(2,030
)
$
(5,143
)
State
635
—
(
984
)
Foreign
(583
)
630
(721
)
Total deferred
11,234
(1,400
)
(6,848
)
Provision for income taxes
$
61,080
$
28,429
$
16,884