Petsmart 2006 Annual Report Download - page 73

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Income tax expense consisted of the following (in thousands):
January 28,
2007
January 29,
2006
January 30,
2005
Fiscal Year Ended
Current provision:
Federal ....................................... $108,940 $102,823 $ 78,577
State/Foreign .................................. 14,693 20,596 15,148
123,633 123,419 93,725
Deferred:
Federal ....................................... (19,180) (12,339) (7,246)
State/Foreign .................................. 595 (4,361) (3,128)
(18,585) (16,700) (10,374)
Income tax expense ............................... $105,048 $106,719 $ 83,351
A reconciliation of the federal statutory income tax rate to the Company’s effective tax rate is as follows
(dollars in thousands):
Dollars % Dollars % Dollars %
January 28, 2007 January 29, 2006 January 30, 2005
Fiscal Year Ended
Provision at federal statutory tax rate . . . $101,541 35.0% $101,224 35.0% $84,281 35.0%
State income taxes, net of federal income
tax benefit ..................... 8,327 2.9 9,994 3.5 7,914 3.3
Adjustments to tax reserves .......... (826) (0.3) (4,631) (1.6) 1,071 0.4
Adjustments to deferred tax assets...... 1,494 0.5 3,057 1.1 — —
Tax exempt interest income........... (2,834) (1.0) (2,625) (0.9) (1,376) (0.6)
Adjustment to valuation allowance ..... 337 0.1 645 0.2 (7,737) (3.2)
Utilization of capital loss . ........... (3,033) (1.0) (650) (0.2) (1,247) (0.5)
Other ........................... 42 — (295) (0.1) 445 0.2
$105,048 36.2% $106,719 36.9% $83,351 34.6%
F-17
PetSmart, Inc. and Subsidiaries
Notes to Consolidated Financial Statements — (Continued)