Macy's, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Taxes (Tables)

Taxes (Tables)

12 Months Ended

Jan. 28, 2012

Schedule of Income Tax Expense (Benefit)

Income tax expense is as follows:



	2011						2010						2009
	Current		Deferred		Total		Current		Deferred		Total		Current		Deferred		Total
	(millions)
Federal	$	519	$	144	$	663	$	217	$	234	$	451	$	48	$	84	$	132
State and local	43		6		49		12		10		22		9		37		46
	$	562	$	150	$	712	$	229	$	244	$	473	$	57	$	121	$	178

Schedule of Effective Income Tax Reconciliation

The reasons for this difference and their tax effects are as follows:



	2011			2010			2009
	(millions)
Expected tax	$	689		$	462		$	177
State and local income taxes, net of federal income tax benefit	31			14			30
Settlement of federal tax examinations	—			—			(21		)
Other	(8		)	(3		)	(8		)
	$	712		$	473		$	178

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:



	January 28, 2012			January 29, 2011
	(millions)
Deferred tax assets:
Post employment and postretirement benefits	$	559		$	473
Accrued liabilities accounted for on a cash basis for tax purposes	227			195
Long-term debt	109			117
Unrecognized state tax benefits and accrued interest	77			91
State operating loss carryforwards	52			61
Other	155			144
Valuation allowance	(34		)	(35		)
Total deferred tax assets	1,145			1,046
Deferred tax liabilities:
Excess of book basis over tax basis of property and equipment	(1,733		)	(1,793		)
Merchandise inventories	(531		)	(483		)
Intangible assets	(195		)	(162		)
Other	(235		)	(217		)
Total deferred tax liabilities	(2,694		)	(2,655		)
Net deferred tax liability	$	(1,549	)	$	(1,609	)

Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



	January 28, 2012			January 29, 2011
	(millions)
Balance, beginning of period	$	205		$	207
Additions based on tax positions related to the current year	23			19
Additions for tax positions of prior years	—			—
Reductions for tax positions of prior years	(21		)	(8		)
Settlements	(15		)	(4		)
Statute expirations	(13		)	(9		)
Balance, end of period	$	179		$	205
Amounts recognized in the Consolidated Balance Sheets at January 28, 2012 and January 29, 2011
Current income taxes	$	18		$	11
Long-term deferred income taxes	27			24
Other liabilities	134			170
	$	179		$	205

- Definition

Tabular disclosure of unrecognized tax benefits for which a material change is reasonably possible in the next twelve months, typically including the nature of the uncertainty, the event(s) that could cause a material change, and an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made. An unrecognized tax benefit is the difference between a tax position taken in a tax return and the amounts recognized in the financial statements for which it is more likely than not, based on the technical merits of the position, that the tax position will not be sustained upon examination.

+ References + Details