Dillard's 2003 Annual Report Download - page 45

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5. Trade Accounts Payable and Accrued Expenses
Trade accounts payable and accrued expenses consist of the following:
(in thousands of dollars) January 31, 2004 February 1, 2003
Trade accounts payable $457,485 $431,752
Accrued expenses:
Taxes, other than income 76,263 66,894
Salaries, wages,
and employee benefits 44,661 53,560
Liability to customers 47,340 46,900
Interest 39,789 46,138
Rent 9,949 11,704
Other 4,367 19,014
$679,854 $675,962
6. Income Taxes
The provision for federal and state income taxes is summarized as follows:
Fiscal Fiscal Fiscal
(in thousands of dollars) 2003 2002 2001
Current:
Federal $(5,293) $45,428 $45,107
State (1,680) 2,029 2,015
(6,973) 47,457 47,122
Deferred:
Federal 12,046 23,570 1,692
State 1,577 1,308 351
13,623 24,878 2,043
$6,650 $72,335 $49,165
A reconciliation between the Company’s income tax provision and income taxes using the federal statutory income tax rate is
presented below:
Fiscal Fiscal Fiscal
(in thousands of dollars) 2003 2002 2001
Income tax at the
statutory federal rate $5,598 $71,493 $42,338
State income taxes,
net of federal benefit 122 2,008 1,320
Nondeductible
goodwill amortization and write off 869 - 5,461
Impact of reduced effective income
tax rate on deferred taxes - - -
Other 61 (1,166) 46
$6,650 $72,335 $49,165
At January 31, 2004, the Company incurred a net operating loss of approximately $18.9 million. For federal income tax purposes, the
loss will be carried back to the year ended February 1, 2003 to reduce the income tax liability for that year. For state income tax
purposes, the loss will be carried back to the extent allowed by each states’ law, otherwise the loss will be carried forward to reduce
future years’ state income tax liability. The Company also has a charitable contribution carryforward of approximately $1.3 million
that will expire on January 31, 2009. Deferred income taxes reflect the net tax effects of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company’s
actual federal and state income tax rate (exclusive of the effect of non-deductible goodwill amortization) was 36% in fiscal 2003, 2002
and 2001. Significant components of the Company’s deferred tax assets and liabilities as of January 31, 2004 and February 1, 2003
are as follows:
F-13