Taxes On Earnings (Tables)

12 Months Ended

Feb. 02, 2013

The provision for income taxes consisted of the following:



($000)	2012			2011			2010
Current
Federal	$	485,882		$	343,550		$	329,723
State	31,227			30,702			30,478
	517,109			374,252			360,201
Deferred
Federal	(37,178		)	25,383			(11,139		)
State	(1,850		)	(3,661		)	(6,838		)
	(39,028		)	21,722			(17,977		)
Total	$	478,081		$	395,974		$	342,224

Provision for Taxes Effective Rate

The provision for taxes for financial reporting purposes is different from the tax provision computed by applying the statutory federal income tax rate. Differences are as follows:



	2012		2011		2010
Federal income taxes at the statutory rate	35	%	35	%	35	%
State income taxes (net of federal benefit) and other, net	3	%	3	%	3	%
Total	38	%	38	%	38	%

Components Of Deferred Income Taxes

The components of deferred income taxes at February 2, 2013 and January 28, 2012 are as follows:



($000)	2012			2011
Deferred Tax Assets
Accrued liabilities	$	72,266		$	43,215
Deferred compensation	28,040			34,736
Stock-based compensation	28,781			16,969
Deferred rent	16,984			13,115
California franchise taxes	13,376			11,286
Employee benefits	18,315			10,074
Other	3,686			3,260
	181,448			132,655
Deferred Tax Liabilities
Depreciation	(210,343		)	(199,119		)
Merchandise inventory	(18,802		)	(20,129		)
Supplies	(9,766		)	(9,024		)
Prepaid expenses	(6,431		)	(7,305		)
	(245,342		)	(235,577		)
Net Deferred Tax Liabilities	$	(63,894	)	$	(102,922	)

Classified as:
Current net deferred tax asset	$	20,407		$	5,598
Long-term net deferred tax liability	(84,301		)	(108,520		)
Net Deferred Tax Liabilities	$	(63,894	)	$	(102,922	)

Unrecognized Tax Benefits

The changes in amounts of unrecognized tax benefits (gross of federal tax benefits and excluding interest) at fiscal 2012, 2011, and 2010 are as follows:



($000)	2012			2011			2010
Unrecognized tax benefits - beginning of year	$	56,524		$	43,990		$	33,349
Gross increases:
Tax positions in current period	11,009			9,245			8,957
Tax positions in prior period	4,167			12,193			4,343
Gross decreases:
Tax positions in prior periods	(1,476		)	(4,491		)	—
Lapse of statute limitations	(1,312		)	(682		)	(1,348		)
Settlements	(3,245		)	(3,731		)	(1,311		)
Unrecognized tax benefits - end of year	$	65,667		$	56,524		$	43,990

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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