Ross 2009 Annual Report Download - page 51

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— 49 —
The components of deferred income taxes at January 30, 2010 and January 31, 2009 are as follows:
($000) 2009 2008
Deferred Tax Assets
Deferred compensation $ 29,014 $ 25,015
Deferred rent 11,094 10,490
Employee benefits — 7,861
Accrued liabilities 20,275 18,776
California franchise taxes 5,399 3,701
Stock-based compensation 7,224 7,771
Other 9,995 8,573
83,001 82,187
Deferred Tax Liabilities
Depreciation (138,134) (121,952)
Merchandise inventory (24,652) (30,627)
Employee benefits (5,529) —
Supplies (7,811) (7,015)
Prepaid expenses (6,052) (5,657)
(182,178) (165,251)
Net Deferred Tax Liabilities $ (99,177) $ (83,064)
Classified as:
Current net deferred tax (liability) asset $ (2,894) $ 14,093
Long-term net deferred tax liability (96,283) (97,157)
Net Deferred Tax Liabilities $ (99,177) $ (83,064)
Effective February 4, 2007, the Company adopted new accounting guidance on the accounting for uncertainty in income taxes.
As a result, the Company established a $26.3 million reserve for unrecognized tax benefits, inclusive of $6.0 million of related
interest. The reserve is classified as a long-term liability and included in other long-term liabilities in the Company’s consolidated
balance sheets. Upon adoption of ASC 740, the Company also recognized a reduction in retained earnings of $7.4 million and
certain other deferred income tax assets and liabilities were reclassified.