O'Reilly Auto Parts 2005 Annual Report Download - page 48

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note 11 – income per common share
The following table sets forth the computation of basic and diluted income per common share:
(In thousands, except per share data)
years ended december 31, 2005 2004 2003
Numerator (basic and diluted):
Net income $164,266 $139,566 $100,087
Denominator:
Denominator for basic income per common share-
weighted-average shares 111,613 110,020 107,816
Effect of stock options (Note 10) 1,772 1,403 1,244
Denominator for diluted income per common share-
adjusted weighted-average shares and assumed conversion 113,385 111,423 109,060
Basic net income per common share $ 1.47 $ 1.27 $ 0.93
Net income per common share-assuming dilution $ 1.45 $ 1.25 $ 0.92
note 12 – 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) 20052004
Deferred tax assets:
Current:
Allowance for doubtful accounts $ 1,050 $ 1,292
Other accruals 17,60110,038
Noncurrent:
Other accruals 2,404 1,980
Total deferred tax assets 21,055 13,310
Deferred tax liabilities:
Current:
Inventory carrying value 21,102 18,528
Noncurrent:
Property and equipment 42,255 39,203
Other 2,665 1,217
Total deferred tax liabilities 66,022 58,948
Net deferred tax liabilities $(44,967) $(45,638)
The provision for income taxes consists of the following:
(In thousands) current deferred total
2005:
Federal $79,720 $ (616) $79,104
State 7,754 (55) 7,699
$87,474 $ (671) $86,803
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
O’REILLY AUTOMOTIVE 2005 ANNUAL REPORT
46
notes to consolidated financial statements (continued)