AutoNation 2005 Annual Report Download - page 63

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Table of Contents
AUTONATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table summarizes information about outstanding and exercisable stock options at December 31, 2005:
Outstanding
Exercisable
Weighted-
Average Weighted- Weighted-Average
Remaining Average Exercise
Contractual Exercise
Exercise Price or Range of Exercise Prices Shares Life (Yrs.) Price Shares Price
$ 3.78 - $ 5.66 .1 1.0 $4.14 .1 $4.14
$ 5.67 - $ 7.56 1.9 3.7 $6.87 1.9 $6.87
$ 7.57 - $11.34 3.0 4.6 $10.96 2.9 $10.96
$11.35 - $15.12 9.4 3.3 $13.17 8.6 $13.26
$15.13 - $18.90 4.4 7.7 $16.91 1.7 $16.98
$18.91 - $22.68 4.9 5.6 $20.83 2.5 $20.15
$22.69 - $34.02 4.3 .9 $25.82 4.3 $25.82
28.0 $16.39 22.0 $15.91
11. INCOME TAXES
The components of the provision for income taxes from continuing operations for the years ended December 31 are as follows:
2005 2004 2003
Current:
Federal $179.9 $149.6 $125.0
State 31.6 23.6 13.7
Federal and state deferred 30.4 63.3 95.0
Change in valuation allowance, net 2.1 .5 8.3
Adjustments and settlements, net (16.6) (26.3) (149.2)
Provision for income taxes $227.4 $210.7 $92.8
A reconciliation of the provision for income taxes calculated using the statutory federal income tax rate to the Company’s provision for
income taxes from continuing operations for the years ended December 31 is as follows:
2005 % 2004 % 2003 %
Provision for income taxes at statutory rate of 35% $218.0 35.0 $212.7 35.0 $214.0 35.0
Non-deductible expenses 2.3 .4 2.1 .3 1.6 .3
State income taxes, net of federal
benefit 21.6 3.5 21.7 3.6 18.7 3.1
241.9 38.9 236.5 38.9 234.3 38.4
Change in valuation allowance, net 2.1 .3 .5 .1 8.3 1.4
Adjustments and settlements, net (16.6) (2.7) (26.3) (4.3) (149.2) (24.4)
Other, net — — — — (.6) (.2)
Provision for income taxes $227.4 36.5 $210.7 34.7 $92.8 15.2
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