Kohl's 2008 Annual Report Download - page 57

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KOHL’S CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
6. Income Taxes
Deferred income taxes consist of the following:
Jan. 31,
2009
Feb. 2,
2008
(In Millions)
Deferred tax liabilities:
Property and equipment .................................... $560 $447
Deferred tax assets:
Merchandise inventories ................................... 38 37
Accrued and other liabilities, including stock options ............ 166 149
Accrued step rent liability .................................. 81 70
Unrealized loss on auction rate securities ...................... 29 —
314 256
$246 $191
The components of the provision for income taxes are as follows:
2008 2007 2006
(In Millions)
Current federal .................................................. $411 $604 $583
Current state ................................................... 45 66 73
Deferred federal ................................................. 76 (11) 8
Deferred state .................................................. 8(1) 1
$540 $658 $665
Amounts paid for income taxes ..................................... $471 $709 $567
The provision for income taxes differs from the amount that would be provided by applying the statutory
U.S. corporate tax rate due to the following items:
2008 2007 2006
Provision at statutory rate ........................................... 35.0% 35.0% 35.0%
State income taxes, net of federal tax benefit ........................... 3.1 3.2 3.1
Tax-exempt interest income ......................................... (0.2) (0.4) (0.4)
Other ........................................................... —— (0.2)
Provision for income taxes .......................................... 37.9% 37.8% 37.5%
We have analyzed filing positions in all of the federal and state jurisdictions where we are required to file
income tax returns, as well as all open tax years in these jurisdictions. The only federal returns subject to
examination are for the 2003 through 2008 tax years. State returns subject to examination are generally for the
2003 through 2008 tax years. Certain states have proposed adjustments which we are currently appealing. If we
do not prevail on our appeals, we do not anticipate that the adjustments would result in a material change in our
financial position.
F-18