Dick's Sporting Goods 2007 Annual Report Download - page 64

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Dick’s Sporting Goods, Inc. | 2007 Annual Report62
Common Stock, Class B Common Stock and Preferred Stock – During fiscal 2004, the Company filed an amendment to its Amended
and Restated Certificate of Incorporation to increase the number of authorized shares of our common stock, par value $0.01 per share
from 100,000,000 to 200,000,000 and Class B common stock, par value $0.01 per share from 20,000,000 to 40,000,000. In addition,
the Company’s corporate charter provides for the authorization of the issuance of up to 5,000,000 shares of preferred stock.
The holders of common stock generally have rights identical to holders of Class B common stock, except that holders of common
stock are entitled to one vote per share and holders of Class B common stock are entitled to ten votes per share. A related party
and relatives of the related party hold all of the Class B common stock. These shares can only be held by members of this group
and are not publicly tradable. Class B common stock can be converted to common stock at the holder’s option.
12. Income Taxes
The components of the provision for income taxes are as follows:
2007 2006 2005
(In thousands)
Current:
Federal $ 118,305 $ 62,573 $ 41,961
State 16,882 11,247 7,295
135,187 73,820 49,256
Deferred:
Federal (28,983) 631 (928)
State (3,713) 623 326
(32,696) 1,254 (602)
Total provision $ 102,491 $ 75,074 $ 48,654
The provision for income taxes differs from the amounts computed by applying the federal statutory rate as follows for the
following periods:
2007 2006 2005
Federal statutory rate 35.0% 35.0% 35.0%
State tax, net of federal benefit 3.6% 4.2% 4.6%
Other permanent items 1.2% 0.8% 0.4%
Effective income tax rate 39.8% 40.0% 40.0%