Petsmart 2001 Annual Report Download - page 48

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PETsMART, Inc. and Subsidiaries
Notes to Consolidated Financial Statements Ì (Continued)
A reconciliation of the federal statutory income tax rate to the Company's eÅective tax rate before
minority interest, extraordinary item and cumulative eÅect of a change in accounting principle is as follows:
Fiscal Year Ended
January 28, 2001 January 30, 2000 January 31, 1999
Dollars Percentage Dollars Percentage Dollars Percentage
(Dollars in thousands)
Provision at federal statutory tax
rateÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $(11,608) (35.0)% $(2,386) (35.0)% $13,687 35.0%
State income taxes, net of federal
income tax beneÑt ÏÏÏÏÏÏÏÏÏÏÏÏÏ (1,383) (4.2) 3,152 46.2 2,077 5.3
Foreign taxesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (233) (0.7) 804 11.8 95 0.2
Tax in excess of Ñnancial reporting
loss on disposition of subsidiary,
net of accrual adjustmentsÏÏÏÏÏÏÏ Ì Ì (5,000) (73.3) Ì Ì
Enacted change in foreign income
tax rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì Ì Ì 240 0.6
Non-deductible corporate joint
venture losses ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 11,588 34.9 10,171 149.2 Ì Ì
Change in valuation allowance ÏÏÏÏÏ 1,540 4.6 17,987 263.9 Ì Ì
Other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 947 3.0 349 5.1 (262) (0.6)
$ 851 2.6% $25,077 367.9% $15,837 40.5%
The Company recorded deferred income tax assets (liabilities) in the following Ñnancial statement line
items in the accompanying consolidated balance sheets:
January 28, January 30,
2001 2000
(In thousands)
Prepaid expenses and other current assetsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 9,836 $ 6,794
Deferred income taxes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6,828 6,780
Deferred rents and other liabilitiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (3,908) (3,830)
Net deferred income tax asset ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $12,756 $ 9,744
F-19