Ulta 2013 Annual Report Download - page 62

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given that it is in the early stage of the litigation process and is subject to the inherent uncertainties of litigation
(such as the strength of the Company’s legal defenses and the availability of insurance recovery). Although the
maximum amount of liability that may ultimately result from this matter cannot be predicted with certainty,
management expects that this matter, when ultimately resolved, will not have a material adverse effect on the
Company’s consolidated financial position or liquidity. It is possible, however, that the ultimate resolution of this
matter could have a material adverse effect on the Company’s results of operations in a particular quarter or year
if such resolution results in a significant liability for the Company.
The Company is also involved in various legal proceedings that are incidental to the conduct of our business. In
the opinion of management, the amount of any liability with respect to these proceedings, either individually or
in the aggregate, will not be material.
5. Accrued liabilities
Accrued liabilities consist of the following:
(In thousands)
February 1,
2014
February 2,
2013
Accrued vendor liabilities (including accrued property and equipment
costs) ...................................................... $ 15,631 $17,254
Accrued customer liabilities ...................................... 25,507 21,638
Accrued payroll, bonus and employee benefits ....................... 33,642 30,418
Accrued taxes, other ............................................ 12,788 9,991
Other accrued liabilities ......................................... 15,612 12,826
Accrued liabilities .............................................. $103,180 $92,127
6. Income taxes
The provision for income taxes consists of the following:
(In thousands)
Fiscal
2013
Fiscal
2012
Fiscal
2011
Current:
Federal ............................................ $105,731 $ 83,606 $53,495
State .............................................. 15,310 14,832 11,022
Total current .......................................... 121,041 98,438 64,517
Deferred:
Federal ............................................ 3,891 8,950 10,796
State .............................................. (75) (144) 31
Total deferred ......................................... 3,816 8,806 10,827
Provision for income taxes ............................... $124,857 $107,244 $75,344
A reconciliation of the federal statutory rate to the Company’s effective tax rate is as follows:
Fiscal
2013
Fiscal
2012
Fiscal
2011
Federal statutory rate ............................................. 35.0% 35.0% 35.0%
State effective rate, net of federal tax benefit .......................... 3.0% 3.4% 3.7%
Other ......................................................... 0.1% (0.1%) (0.2%)
Effective tax rate ................................................ 38.1% 38.3% 38.5%
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