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59
8. INCOME TAXES
INCOME TAX PROVISION
(In thousands)
Current:
Federal 123,215$ 69,095$ 121,274$
State 17,852 9,992 18,175
Total 141,067 79,087 139,449
Deferred:
Federal 27,805 (37,835) (21,222)
State 1,956 (3,667) (3,183)
Total 29,761 (41,502) (24,405)
Income tax provision 170,828$ 37,585$ 115,044$
2009 2008
Ye ar s Ende d Fe bruar y 2 8 or 2 9
2010
EFFECTIVE INCOME TAX RATE RECONCILIATION
Federal statutory income tax rate 35.0 % 35.0% 35.0%
State and local income taxes, net of federal benefit 3.0 2.7 3.1
Nondeductible and other items (0.2) 0.3 0.1
Valuation allowance ―0.8 0.5
Effective income tax rate 37.8 % 38.8% 38.7%
2010 2009 2008
Years Ended February 28 or 29
TEMPORARY DIFFERENCES RESULTING IN DEFERRED TAX ASSETS AND LIABILITIES
(In thousands)
Deferred tax assets:
Accrued expenses 33,795$ 27,914$
Partnership basis 15,286 44,376
Inventory 1,960 2,108
Stock compens ation 44,526 45,687
Capital los s carry forward 2,514 2,413
Total gross deferred tax ass ets 98,081 122,498
Less: valuation allowance (2,514) (2,413)
Net gross deferred tax assets 95,567 120,085
Deferred tax liab ilities :
Securitized receivables ― 18,620
Prepaid expenses 8,832 8,168
Depreciation and amortization 21,763 2,263
Other 2,143 ―
To tal gros s deferred tax liab ilities 32,738 29,051
Net deferred tax asset 62,829$ 91,034$
2010 2009
As of February 28
Except for amounts for which a valuation allowance has been provided, we believe it is more likely than not that the
results of future operations will generate sufficient taxable income to realize the deferred tax assets. The valuation
allowance as of February 28, 2010, relates to capital loss carryforwards that are not more likely than not to be
utilized prior to their expiration.
As of March 1, 2007, we adopted an accounting pronouncement related to FASB ASC Topic 740, “Income Taxes,”
which established a consistent framework for determining the appropriate level of tax reserves to maintain for
“uncertain tax positions” (formerly FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes”