Home Depot 2005 Annual Report Download - page 62

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The reconciliation of the Provision for Income Taxes at the federal statutory rate of 35% to the actual
tax expense for the applicable fiscal years is as follows (amounts in millions):
Fiscal Year Ended
January 29, January 30, February 1,
2006 2005 2004
Income taxes at federal statutory rate $3,249 $2,769 $2,395
State income taxes, net of federal income
tax benefit 279 215 217
Foreign rate differences (10) (17) (29)
Change in valuation allowance (23) (31) —
Other, net (51) (25) (44)
Total $3,444 $2,911 $2,539
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets
and deferred tax liabilities as of January 29, 2006 and January 30, 2005, were as follows (amounts in
millions):
January 29, January 30,
2006 2005
Current:
Deferred Tax Assets:
Accrued self-insurance liabilities $ 220 $ 106
Other accrued liabilities 278 202
Other 28 —
Current Deferred Tax Assets 526 308
Deferred Tax Liabilities:
Accelerated inventory deduction (271) (234)
Other (17) (25)
Current Deferred Tax Liabilities (288) (259)
Current Deferred Tax Assets, net 238 49
Noncurrent:
Deferred Tax Assets:
Accrued self-insurance liabilities 277 79
Other accrued liabilities 35 11
Net operating losses 63 41
Valuation allowance —(23)
Noncurrent Deferred Tax Assets 375 108
Deferred Tax Liabilities:
Property and equipment (1,160) (1,425)
Goodwill and other intangibles (209) (33)
Other —(8)
Noncurrent Deferred Tax Liabilities (1,369) (1,466)
Noncurrent Deferred Tax Liabilities, net (994) (1,358)
Net Deferred Tax Liabilities $ (756) $(1,309)
50