Family Dollar 2003 Annual Report Download - page 31

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27
5. Income Taxes:
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of August 30, 2003 and August 31, 2002 were as
follows (In thousands):
August 30, 2003 August 31, 2002
Deferred income tax liabilities:
Excess of book over tax basis of property and equipment $79,395 $68,891
Deferred income tax assets:
Excess of tax over book basis of inventories $18,280 $18,947
Currently nondeductible accruals for:
Self-insurance 34,571 24,792
Vacation and bonus pay 5,018 3,959
Other 3,900 2,243
Total deferred income tax assets $61,769 $49,941
The provisions for income taxes in each of the three years in the period ended August 30, 2003 were as follows (In thousands):
2003 2002 2001
Current:
Federal $130,923 $103,210 $ 77,866
State 12,652 8,983 6,770
143,575 112,193 84,636
Deferred:
Federal (1,469) 11,839 22,761
State 144 660 1,520
(1,325) 12,499 24,281
Total $142,250 $124,692 $108,917
The following table summarizes the components of income tax expense in each of the three years in the period ended August 30, 2003 (In thousands):
2003 2002 2001
%%%
Income tax of pre-tax Income tax of pre-tax Income tax of pre-tax
expense income expense income expense income
Computed “expected” federal income tax $136,404 35.0 $119,567 35.0 $104,448 35.0
State income taxes, net of federal income tax benefit 8,290 2.1 6,363 1.9 5,518 1.8
Other (2,444) (0.6) (1,238) (0.4) (1,049) (0.3)
Actual income tax expense $142,250 36.5 $124,692 36.5 $108,917 36.5