CarMax 2012 Annual Report Download - page 65

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59
9. INCOME TAXES
INCOME TAX PROVISION
(In thousands)
Current:
Federal 223,548$ 184,919$ 123,215$
State 30,439 28,300 17,852
Total 253,987 213,219 141,067
Deferred:
Federal 54 16,484 25,689
State (926) 1,009 1,852
Total (872) 17,493 27,541
Income tax provision 253,115$ 230,711$ 168,608$
Years Ended February 29 or 28
2012 2011 (1) 2010 (1)
(1) As discussed in Note 2(K), fiscal 2011 and fiscal 2010 reflect the revisions to correct our accounting for sale-leaseback
transactions.
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 2.9 3.3 3.0
Nondeductible and other items 0.2 (0.2) (0.2)
Credits (0.2) ʊʊ
Valuation allowance 0.1 (0.2) ʊ
Effective income tax rate 38.0 % 37.9 % 37.8%
2012 2011 2010
Ye ar s Ende d Fe bruar y 2 9 or 2 8
TEMPORARY DIFFERENCES RESULTING IN DEFERRED TAX ASSETS AND LIABILITIES
(In thousands)
Deferred tax as s ets:
Accrued expenses 33,888$ 33,366$
Partnership basis 55,710 47,798
Depreciation and amortization 43,672 41,194
Stock compensation 53,635 45,726
Capital loss carry forward 2,152 1,445
Total gross deferred tax assets 189,057 169,529
Less : valuation allowance (2,152) (1,445)
Net gros s deferred tax as sets 186,905 168,084
Deferred tax liabilities :
Finance lease obligations 31,634 26,982
Prepaid expenses 6,892 6,394
Inventory 3,240 3,668
Derivatives 2,067 2,164
Total gro s s deferred tax liab ilities 43,833 39,208
Net deferred tax asset 143,072$ 128,876$
As of February 29 or 28
2012 2011 (1)
(1) As discussed in Note 2(K), fiscal 2011 reflects the revisions to correct our accounting for sale-leaseback transactions.
As discussed in Note 2(E), as of March 1, 2010, we adopted FASB ASU Nos. 2009-16 and 2009-17 and amended
our existing warehouse facility. As a result, we wrote-off the deferred tax liability applicable to the remaining