O'Reilly Auto Parts 2004 Annual Report Download - page 49

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2004 ANNUAL REPORT 47
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
NOTE 10—INCOME TAXES
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. Significant components of the Company's deferred tax assets and liabilities are as follows at December 31:
(In thousands) 2004 2003
Deferred tax assets:
Current:
Allowance for doubtful accounts $ 1,292 $ 373
Other accruals 10,038 6,973
Noncurrent:
Other accruals 1,980 -
Total deferred tax assets 13,310 7,346
Deferred tax liabilities:
Current:
Inventory carrying value 18,528 2,593
Noncurrent:
Property and equipment 39,203 29,171
Other 1,217 277
Total deferred tax liabilities 58,948 32,041
Net deferred tax liabilities $(45,638) $(24,695)
The provision for income taxes consists of the following:
(In thousands) Current Deferred Tot al
2004:
Federal $56,385 $6,942 $63,327
State 6,038 698 6,736
$62,423 $7,640 $70,063
2003:
Federal $41,465 $12,362 $53,827
State 4,694 1,434 6,128
$46,159 $13,796 $59,955
2002:
Federal $39,038 $ 5,113 $44,151
State 4,286 553 4,839
$43,324 $ 5,666 $48,990
A reconciliation of the provision for income taxes to the amounts computed at the federal statutory rate is as follows:
(In thousands) 2004 2003 2002
Federal income taxes at statutory rate $65,708 $56,015 $45,844
State income taxes, net of federal tax benefit 4,355 3,935 3,140
Other items, net -56
$70,063 $59,955 $48,990
The tax benefit associated with the exercise of non-qualified stock options has been reflected as additional paid-in capital in the accompanying consol-
idated financial statements.
During the years ended December 31, 2004, 2003, and 2002, cash paid by the Company for income taxes amounted to $55,140,000, $43,007,000
and $31,119,000, respectively.