Rue 21 2011 Annual Report Download - page 57

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rue21, inc. and subsidiary
Notes to Consolidated Financial Statements — (continued)
Note 8 — Income Taxes
The provision for income taxes at the fiscal years 2011, 2010, and 2009 consists of the current and deferred
elements in the table below:
Fiscal Year Ended
January 28,
2012
January 29,
2011
January 30,
2010
Current:
Federal .............................................. $15,051 $15,834 $10,943
State ................................................ 3,017 3,030 2,281
Total current ..................................... 18,068 18,864 13,224
Deferred:
Federal .............................................. 5,819 939 1,238
State ................................................ 18 (275) (80)
Total deferred ................................ 5,837 664 1,158
Total provision for income taxes .......................... $23,905 $19,528 $14,382
The Company’s income taxes determined at the statutory rate for the fiscal years ended January 28, 2012,
January 29, 2011 and January 30, 2010 differ from the actual rate as follows:
Fiscal Year Ended
January 28,
2012
January 29,
2011
January 30,
2010
Effective Rate
Statutory rate ..................................... 35.0% 35.0% 35.0%
State taxes ....................................... 3.3% 3.8% 3.8%
Permanent differences .............................. 0.2% 0.7% 0.7%
Other ........................................... (0.5%) (0.3%) —
Total ............................................ 38.0% 39.2% 39.5%
As a result of temporary differences, the Company has the following net deferred tax amounts at January 28,
2012, January 29, 2011 and January 30, 2010:
Fiscal Year Ended
January 28,
2012
January 29,
2011
January 30,
2010
Deferred tax assets:
Deferred Rent ........................................ $20,317 $ 15,925 $ 11,371
Accrued Compensation ................................. 2,639 1,675 959
Inventory ............................................ 1,308 1,127 941
Accrued Reserve ...................................... 174 192 162
Other ............................................... 9 42 42
Total deferred tax assets ............................ 24,447 18,961 13,475
Deferred tax liabilities:
Fixed assets .......................................... (30,911) (19,588) (13,438)
Net deferred tax (liability) asset ...................... $ (6,464) $ (627) $ 37
54