CarMax 2015 Annual Report Download - page 62

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58
9. INCOME TAXES
INCOME TAX PROVISION
Years Ended February 28
(In thousands) 2015 2014 2013
Current:
Federal $ 329,211 $ 283,174 $ 232,652
State 47,061 38,747 30,557
Total 376,272 321,921 263,209
Deferred:
Federal (3,499) (15,129) 4,705
State (800) (2,056) (847)
Total (4,299) (17,185) 3,858
Income tax provision $ 371,973 $ 304,736 $ 267,067
EFFECTIVE INCOME TAX RATE RECONCILIATION
Years Ended February 28
2015 2014 2013
Federal statutory income tax rate 35.0 % 35.0 % 35.0 %
State and local income taxes, net of federal benefit 3.4 3.1 2.9
N
ondeductible and other items 0.2 0.2 0.2
Credits
(0.2) (0.1) ―
Effective income tax rate 38.4 % 38.2 % 38.1 %
TEMPORARY DIFFERENCES RESULTING IN DEFERRED TAX ASSETS AND LIABILITIES
As of February 28
(In thousands)
2015 2014
Deferred tax assets:
Accrued expenses
$ 52,933 $ 48,611
Partnership basis
95,443 71,503
Stock compensation
63,148 60,158
Derivatives
4,010 4,896
Capital loss carry forward
1,597 1,296
Total gross deferred tax assets 217,131
186,464
Less: valuation allowance (1,597) (1,296)
N
et gross deferred tax assets 215,534
185,168
Deferred tax liabilities:
Prepaid expenses 17,935
13,991
Property and equipment
14,816 3,737
Inventory
7,045 7,375
Total gross deferred tax liabilities 39,796
25,103
N
et deferred tax asset $ 175,738 $ 160,065