Home Depot 2006 Annual Report Download - page 59

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5. INCOME TAXES
The components of Earnings before Provision for Income Taxes for fiscal 2006, 2005 and 2004 were as
follows (amounts in millions):
Fiscal Year Ended
January 28, January 29, January 30,
2007 2006 2005
United States $8,709 $8,736 $7,508
Foreign 599 546 404
Total $9,308 $9,282 $7,912
The Provision for Income Taxes consisted of the following (amounts in millions):
Fiscal Year Ended
January 28, January 29, January 30,
2007 2006 2005
Current:
Federal $2,831 $3,394 $2,153
State 409 507 279
Foreign 329 156 139
3,569 4,057 2,571
Deferred:
Federal (9) (527) 304
State (9) (111) 52
Foreign (4) 25 (16)
(22) (613) 340
Total $3,547 $3,444 $2,911
The Company’s combined federal, state and foreign effective tax rates for fiscal 2006, 2005 and 2004,
net of offsets generated by federal, state and foreign tax benefits, were approximately 38.1%, 37.1%
and 36.8%, respectively.
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 was as follows (amounts in millions):
Fiscal Year Ended
January 28, January 29, January 30,
2007 2006 2005
Income taxes at federal statutory rate $3,258 $3,249 $2,769
State income taxes, net of federal income tax
benefit 261 279 215
Foreign rate differences 5(10) (17)
Change in valuation allowance —(23) (31)
Other, net 23 (51) (25)
Total $3,547 $3,444 $2,911
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