Advance Auto Parts 2013 Annual Report Download - page 80

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ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 28, 2013, December 29, 2012 and December 31, 2011
(in thousands, except per share data)
F-28
The provision for income taxes differed from the amount computed by applying the federal statutory income tax
rate due to:
December 28,
2013
December 29,
2012
December 31,
2011
Income before provision for income taxes at
statutory U.S. federal income tax rate (35%) $ 219,239 $ 218,426 $ 221,632
State income taxes, net of federal income tax
benefit 16,216 16,295 18,348
Other, net (815) 1,683 (1,426)
$ 234,640 $ 236,404 $ 238,554
Deferred Income Tax Assets/(Liabilities)
Deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of
assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred
income taxes reflect the net income tax effect of temporary differences between the basis of assets and liabilities for financial
reporting purposes and for income tax reporting purposes. Net deferred income tax balances are comprised of the following:
December 28,
2013
December 29,
2012
Deferred income tax assets $ 101,979 $ 103,339
Valuation allowance (1,557)(1,557)
Deferred income tax liabilities (321,778)(330,139)
Net deferred income tax liabilities $ (221,356) $ (228,357)
As of December 28, 2013 and December 29, 2012, the Company had deferred income tax assets of $2,207 and $3,213
from federal net operating losses, or NOLs, of $6,307 and $9,181, and deferred income tax assets of $2,130 and $1,841 from
state NOLs of $40,440 and $35,681, respectively. These NOLs may be used to reduce future taxable income and expire
periodically through Fiscal 2033. Due to uncertainties related to the realization of certain deferred tax assets for NOLs in
certain jurisdictions, the Company recorded a valuation allowance of $1,557 as of both December 28, 2013 and December 29,
2012. The amount of deferred income tax assets realizable, however, could change in the future if projections of future taxable
income change. As of December 28, 2013 and December 29, 2012, the Company had cumulative net deferred income tax
liabilities of $221,356 and $228,357, respectively.