Advance Auto Parts 2014 Annual Report Download - page 78

Download and view the complete annual report

Please find page 78 of the 2014 Advance Auto Parts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
January 3, 2015, December 28, 2013 and December 29, 2012
(in thousands, except per share data)
F-31
The provision for income taxes differed from the amount computed by applying the federal statutory income tax
rate due to:
January 3,
2015
December 28,
2013
December 29,
2012
Income before provision for income taxes at
statutory U.S. federal income tax rate (35%) $ 273,488 $ 219,239 $ 218,426
State income taxes, net of federal income tax
benefit 15,723 16,216 16,295
Other, net (1,642)(815) 1,683
$ 287,569 $ 234,640 $ 236,404
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:
January 3,
2015
December 28,
2013
Deferred income tax assets $ 151,997 $ 101,979
Valuation allowance (5,084)(1,557)
Deferred income tax liabilities (593,264)(321,778)
Net deferred income tax liabilities $ (446,351)$ (221,356)
As of January 3, 2015 and December 28, 2013, the Company had deferred income tax assets of $1,297 and $2,207 from
federal net operating losses, or NOLs, of $3,705 and $6,307, and deferred income tax assets of $6,847 and $2,130 from state
NOLs of $165,849 and $40,440, respectively. These NOLs may be used to reduce future taxable income and expire periodically
through Fiscal 2034. Due to uncertainties related to the realization of certain deferred tax assets for NOLs in certain
jurisdictions, the Company recorded a valuation allowance of $5,084 and $1,557 as of both January 3, 2015 and December 28,
2013. The amount of deferred income tax assets realizable, however, could change in the future if projections of future taxable
income change. As of January 3, 2015 and December 28, 2013, the Company had cumulative net deferred income tax liabilities
of $446,351 and $221,356, respectively.
The Company has not recorded deferred taxes when earnings from foreign operations are considered to be indefinitely invested
outside of the U.S. These accumulated net earnings relate to certain ongoing operations for multiple years and were approximately
$108,000 as of January 3, 2015. It is not practicable to determine the income tax liability that would be payable if such earnings
were repatriated.