Safeway 2010 Annual Report Download - page 71

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Total share-based compensation expenses recognized as a component of operating and administrative expense is as
follows (in millions):
2010 2009 2008
Share-based compensation expense $ 55.5 $ 61.7 $ 64.3
Income tax benefit (20.8) (22.6) (23.5)
Share-based compensation expense recognized in
earnings, net of tax $ 34.7 $ 39.1 $ 40.8
Note J: Taxes on Income
The components of income (loss) before income tax expense are as follows (in millions):
2010 2009 2008
Domestic $ 549.6 $(1,315.6) $1,241.2
Foreign 331.6 362.3 263.4
$ 881.2 $ (953.3) $1,504.6
The components of income tax expense are as follows (in millions):
2010 2009 2008
Current:
Federal $ 180.2 $ 137.1 $ 251.1
State 43.9 34.3 40.2
Foreign 97.8 114.9 76.3
321.9 286.3 367.6
Deferred:
Federal (20.7) (111.4) 142.7
State (5.2) (25.6) 24.8
Foreign (5.4) (5.1) 4.2
(31.3) (142.1) 171.7
$ 290.6 $ 144.2 $ 539.3
Reconciliation of the provision for income taxes at the U.S. federal statutory income tax rate to the Company’s income
taxes is as follows (dollars in millions):
2010 2009 2008
Statutory rate 35% 35% 35%
Income tax expense (benefit) using federal statutory rate $ 308.4 $ (333.7) $ 526.6
State taxes on income net of federal benefit 25.2 5.7 42.2
Non deductible goodwill impairment –549.5 –
Canadian tax rate differential (23.1) (16.0) (10.4)
Tax settlements 1.5 (70.0) (3.3)
Other (21.4) 8.7 (15.8)
$ 290.6 $ 144.2 $ 539.3
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