|12 Months Ended|
Jan. 28, 2012
|Income Taxes [Abstract]|
19) Income Taxes
The components of our income tax (benefit)/expense for continuing operations were as follows:
A reconciliation of the statutory federal income tax rate to our effective rate for continuing operations is as follows:
Our deferred tax assets and liabilities were as follows:
We anticipate that we will generate sufficient pre-tax income in the future to realize the full benefit of the deferred tax assets related to future deductible amounts. Accordingly, a valuation allowance was not required at year-end 2011 or 2010.
Deferred tax assets and liabilities included in our consolidated balance sheets were as follows:
Income taxes on our Consolidated Balance Sheets included current income taxes receivable of $233 million at the end of 2011 and $208 million at the end of 2010, in addition to the net current deferred tax assets shown above.
A reconciliation of unrecognized tax benefits is as follows:
As of the end of 2011, 2010 and 2009 the uncertain tax position balance included $61 million, $60 million and $75 million, respectively, that, if recognized, would lower the effective tax rate and would be reduced upon settlement by $21 million, $21 million and $26 million, respectively, related to the federal tax deduction of state taxes. The remaining amounts reflected tax positions for which the ultimate deductibility is highly certain, but for which there is uncertainty about the timing. Due to deferred tax accounting, other than any interest or penalties incurred, the disallowance of the shorter deductibility period would not impact the effective tax rate, but would accelerate payment to the taxing authority.
Over the next 12 months, it is reasonably possible that the amount of unrecognized tax benefits could be reduced by $25 million if our tax position is sustained upon audit, the controlling statute of limitations expires or we agree to a disallowance.
Accrued interest and penalties related to unrecognized tax benefits included in income tax expense was $4 million as of January 28, 2012, $3 million as of January 29, 2011 and $2 million as of January 30, 2010.
We file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. We are no longer subject to U.S. federal examinations by tax authorities for years before 2010. We expect resolution of issues pertaining to 2009 and 2010 to occur in 2012. The 2007 and 2008 examinations were resolved in 2011. We are audited by the taxing authorities of virtually all states and certain foreign countries and are subject to examination by these taxing jurisdictions for years generally after 2006.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/presentationRef