O'Reilly Auto Parts 2011 Annual Report Download - page 81

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367
71
Provision for income taxes:
The following table reconciles the ―Provision for income taxes‖ included in the accompanying Consolidated Statements of Income for
the years ended December 31, 2011, 2010 and 2009 (in thousands):
2011
Federal $ 228,443
$
55,175
$
283,618
State 25,537 (1,055) 24,482
$ 253,980 $ 54,120 $ 308,100
2010
Federal $ 146,259 $ 88,395 $ 234,654
State 24,484 10,862 35,346
$ 170,743 $ 99,257 $ 270,000
2009
Federal $ 121,919 $ 44,339 $ 166,258
State 17,100 6,042 23,142
$ 139,019 $ 50,381 $ 189,400
Current
Deferred
Total
The following table outlines the reconciliation of the ―Provision for income taxes‖ amounts included in the accompanying
Consolidated Statements of Income to the amounts computed at the federal statutory rate for the years ended December 31, 2011,
2010 and 2009 (in thousands):
Federal income taxes at statutory rate $ 285,524 $241,281 $ 173,914
State income taxes, net of federal tax benefit 16,132 22,267 18,896
Other items, net 6,444 6,452 (3,410)
Total provision for income taxes $ 308,100 $270,000 $ 189,400
Years ended December 31,
2011
2010
2009
The excess tax benefit associated with the exercise of non-qualified stock options has been included within ―Additional paid-in
capital‖ on the accompanying consolidated financial statements.
As of December 31, 2011, the Company had tax credit carryforwards available for state tax purposes of $5.1 million. As of December
31, 2011, the Company had net operating loss carryforwards available for state purposes of $3.0 million. The Company’s state net
operating loss carryforwards generally expire in years ranging from 2021 to 2027, and the Company’s tax credits generally do not
expire.
CSK had net operating losses in various years dating back to the tax year 1993. For CSK, the statute of limitation for a particular tax
year for examination by the IRS is three years subsequent to the last year in which the loss carryover is finally used. The IRS
completed an examination of the CSK consolidated federal tax return for the fiscal years ended January 30, 2005, January 29, 2006,
February 4, 2007, and February 2, 2008. The statute of limitation for a particular tax year for examination by various states is
generally three to four years subsequent to the last year in which the loss carryover is finally used.
Unrecognized tax benefits:
The following table summarizes the changes in the gross amount of unrecognized tax benefits, excluding interest and penalties, for the
years ended December 31, 2011, 2010 and 2009 (in thousands):
2011 2010
2009
Balance as of January 1, $ 36,710 $ 33,570 $ 30,400
Additions based on tax positions related to the current year 7,308 5,138 5,900
Additions based on tax positions related to prior years 4,060 - -
Reductions due to lapse of statute of limitations (2,278) (1,998) (2,730)
Balance as of December 31, $ 45,800 $ 36,710 $ 33,570
Years ended December 31,
FORM 10-K