Rue 21 2012 Annual Report Download - page 58

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rue21, inc.
Notes to Consolidated Financial Statements — Continued
Note 8 — Income Taxes
The provision for income taxes at the fiscal years 2012, 2011, and 2010 consists of the current and deferred
elements in the table below:
Income Taxes
Fiscal Year Ended
(in thousands)
February 2,
2013
January 28,
2012
January 29,
2011
Current:
Federal .............................................. $23,918 $15,051 $15,834
State ................................................ 3,418 3,017 3,030
Total current ..................................... 27,336 18,068 18,864
Deferred:
Federal .............................................. (2,254) 5,819 939
State ................................................ (495) 18 (275)
Total deferred ................................ (2,749) 5,837 664
Total provision for income taxes .......................... $24,587 $23,905 $19,528
The Company’s income taxes determined at the statutory rate for the fiscal years 2012, 2011 and 2010 differ
from the actual rate as follows:
Fiscal Year Ended
February 2,
2013
January 28,
2012
January 29,
2011
Effective Rate
Statutory rate ..................................... 35.0% 35.0% 35.0%
State taxes ....................................... 2.6% 3.3% 3.8%
Permanent differences .............................. 0.1% 0.2% 0.7%
Other ........................................... (1.8%) (0.5%) (0.3%)
Total ............................................ 35.9% 38.0% 39.2%
As a result of temporary differences, the Company has the following net deferred tax amounts at February 2,
2013, January 28, 2012 and January 29, 2011:
Fiscal Year Ended
(in thousands)
February 2,
2013
January 28,
2012
January 29,
2011
Deferred tax assets:
Deferred Rent ........................................ $25,057 $ 20,317 $ 15,925
Accrued Compensation ................................. 5,789 2,639 1,675
Inventory ............................................ 1,607 1,308 1,127
Accrued Reserve ...................................... 47 174 192
Other ............................................... 11 9 42
Total deferred tax assets ............................ 32,511 24,447 18,961
Deferred tax liabilities:
Fixed assets .......................................... (36,226) (30,911) (19,588)
Net deferred tax (liability) asset ...................... $ (3,715) $ (6,464) $ (627)
54