O'Reilly Auto Parts 2002 Annual Report Download - page 48

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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 thous ands )
2002 2001
Deferred tax assets:
Current:
Allowance for doubtful accounts $327 $665
Inventory carrying value 967 —
Other accruals 3,746 4,284
5,040 4,949
Deferred tax liabilities:
Current:
Inventory carrying value —1,041
Noncurrent:
Property and equipment 15,685 8,333
Other 254 808
Total deferred tax liabilities 15,939 10,182
Net deferred tax liabilities $(10,899) $(5,233)
The provision for income taxes consists of the following:
(In thous ands )
CURRENT DEFERRED TOTAL
2002:
Federal $39,038 $ 5,113 $44,151
State 4,286 553 4,839
$43,324 $ 5,666 $48,990
2001:
Federal $30,429 $ 5,702 $36,131
State 3,575 669 4,244
$34,004 $ 6,371 $40,375
2000:
Federal $25,120 $ 2,946 $28,066
State 3,086 299 3,385
$28,206 $ 3,245 $31,451
A reconciliation of the provision for income taxes to the amounts computed at the federal statutory rate is as follows:
(In thous ands )
2002 2001 2000
Federal income taxes at statutory rate $45,844 $37,354 $29,106
State income taxes, net of federal tax benefit 3,140 2,775 2,200
Other items, net 6246 145
$48,990 $40,375 $31,451
The tax benefit associated with the exercise of non-qualified stock options has been reflected as additional paid-in
capital in the accompanying consolidated financial statements.
During the years ended December 31, 2002, 2001 and 2000, cash paid by the Company for income taxes
amounted to $31,119,000, $28,676,000 and $24,244,000, respectively.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
46 O’Reilly Automotive