Advance Auto Parts 2006 Annual Report Download - page 89

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ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 30, 2006, December 31, 2005 and January 1, 2005
(in thousands, except per share data)
During fiscal 2005, the Company retired 7,122 shares of common stock, of which 92 shares were repurchased
under the current stock repurchase program, and 7,030 shares were repurchased under the Company’s previous
program at an aggregate cost of $189,160, or an average price $26.91 per share, excluding related expenses.
14. Income Taxes:
Provision (benefit) for income taxes from continuing operations for fiscal 2006, fiscal 2005 and fiscal 2004
consists of the following:
Current Deferred Total
2006-
Federal 126,726$ (4,874)$ 121,852$
State 18,433 (1,688) 16,745
145,159$ (6,562)$ 138,597$
2005-
Federal 124,978$ (1,343)$ 123,635$
State 16,430 4,133 20,563
141,408$ 2,790$ 144,198$
2004-
Federal 102,171$ 1,318$ 103,489$
State 9,042 5,190 14,232
111,213$ 6,508$ 117,721$
The provision (benefit) for income taxes from continuing operations differed from the amount computed by
applying the federal statutory income tax rate due to:
2006 2005 2004
Income from continuing operations
at statutory U.S. federal income tax rate (35%) 129,470$ 132,623$ 107,012$
State income taxes, net of federal
income tax benefit 10,884 13,366 9,251
Non-deductible expenses 1,155 (3) 745
Valuation allowance 70 75 236
Other, net (2,982) (1,863) 477
138,597$ 144,198$ 117,721$
During the year ended January 1, 2005 the Company had a loss from operations of the discontinued Wholesale
Dealer Network of $63. The Company recorded an income tax benefit of $24 related to these discontinued
operations for the year ended January 1, 2005.
Deferred income taxes are recognized for the tax consequences in future years of differences between the tax
bases of assets and liabilities and their financial reporting amounts at each period-end, based on enacted tax laws and
statutory income tax rates applicable to the periods in which the differences are expected to affect taxable income.
Deferred income taxes reflect the net income tax effect of temporary differences between the bases of assets and
liabilities for financial reporting purposes and for income tax reporting purposes. Net deferred income tax balances
are comprised of the following:
F-26