Safeway 2011 Annual Report Download - page 76

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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):
2011 2010 2009
Share-based compensation expense $ 50.0 $ 55.5 $ 61.7
Income tax benefit (18.8) (20.8) (22.6)
Share-based compensation expense recognized in
earnings, net of tax $ 31.2 $ 34.7 $ 39.1
Note J: Taxes on Income
The components of income (loss) before income tax expense are as follows (in millions):
2011 2010 2009
Domestic $ 500.3 $ 549.6 $(1,315.6)
Foreign 381.8 331.6 362.3
$ 882.1 $ 881.2 $ (953.3)
The components of income tax expense are as follows (in millions):
2011 2010 2009
Current:
Federal $ 223.2 $ 180.2 $ 137.1
State 48.0 43.9 34.3
Foreign 156.4 97.8 114.9
427.6 321.9 286.3
Deferred:
Federal (45.1) (20.7) (111.4)
State (16.0) (5.2) (25.6)
Foreign (2.6) (5.4) (5.1)
(63.7) (31.3) (142.1)
$ 363.9 $ 290.6 $ 144.2
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):
2011 2010 2009
Statutory rate 35% 35% 35%
Income tax expense (benefit) using federal statutory rate $ 308.7 $ 308.4 $ (333.7)
State taxes on income net of federal benefit 20.8 25.2 5.7
Non deductible goodwill impairment ––549.5
Canadian tax rate differential (6.1) (23.1) (16.0)
Utilization of foreign tax credits (28.5) – –
Tax settlements (0.2) 1.5 (70.0)
Taxes on foreign earnings not permanently reinvested 98.9 – –
Other (29.7) (21.4) 8.7
$ 363.9 $ 290.6 $ 144.2
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