Urban Outfitters 2012 Annual Report Download - page 73

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Table of Contents
URBAN OUTFITTERS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(in thousands, except share and per share data)
The significant components of deferred tax assets and liabilities as of January 31, 2012 and 2011 are as follows:
January 31,
2012 2011
Deferred tax liabilities:
Prepaid expenses $ (1,402) $ (1,551)
Depreciation (4,761) (15,922)
Gross deferred tax liabilities (6,163) (17,473)
Deferred tax assets:
Deferred rent 37,024 43,005
Inventories 3,093 5,434
Accounts receivable 1,166 747
Net operating loss carryforwards 5,684 5,123
Tax uncertainties 7,651 4,433
Accrued salaries and benefits 13,786 13,496
Other temporary differences 4,437 —
Gross deferred tax assets, before valuation allowances 72,841 72,238
Valuation allowances (2,754) (2,622)
Net deferred tax assets $ 63,924 $ 52,143
Net deferred tax assets are attributed to the jurisdictions in which the Company operates. As of January 31, 2012 and 2011, respectively, $48,762 and
$37,170 were attributable to U.S. federal, $12,374 and $13,546 were attributed to state jurisdictions and $2,788 and $1,427 were attributed to foreign
jurisdictions.
As of January 31, 2012, certain non-U.S. subsidiaries of the Company had net operating loss carryforwards for tax purposes of approximately $10,503
that do not expire and certain U.S. subsidiaries of the Company had state net operating loss carryforwards for tax purposes of approximately $9,114 that
expire from 2016 through 2032. As of January 31, 2011, the Company had a full valuation allowance for certain foreign and state net operating loss
carryforwards where it was uncertain the carryforwards would be utilized. The Company had no valuation allowance for certain other foreign and state net
operating loss carryforwards where management believes it is more likely than not the tax benefit of these carryforwards will be realized. As of January 31,
2012 and 2011, the non-current portion of net deferred tax assets aggregated $58,681 and $37,789, respectively.
The cumulative amount of the Company's share of undistributed earnings of non-U.S. subsidiaries for which no deferred taxes have been provided was
$130,219 as of January 31, 2012. These earnings are deemed to be permanently re-invested to finance growth programs.
F-22