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This excerpt taken from the AN 10-K filed Feb 17, 2010. Provision for Income Taxes Our effective income tax rate was 33.3% in 2009, 13.5% in 2008, and 37.3% in 2007. The tax rate for 2008 reflects the fact that a significant portion of the impairment charges taken in 2008 was not deductible for income tax purposes. Income taxes are provided based upon our anticipated underlying annual blended federal and state income tax rates, adjusted, as necessary, for any other tax matters occurring during the period. As we operate in various states, our effective tax rate is also dependent upon our geographic revenue mix. During the fourth quarter of 2009, we completed a restructuring of certain of our subsidiaries, a consequence of which was the elimination of a deferred tax liability of $12.7 million, which was reflected as a benefit in our tax provision for the three months ended December 31, 2009. As of December 31, 2009, we had unrecognized tax benefits recorded in accordance with an accounting standard related to unrecognized tax benefits. See Note 11 of the Notes to Consolidated Financial Statements for additional discussion. We do not expect that our unrecognized tax benefits will significantly increase or decrease during the twelve months beginning January 1, 2010. During 2008, our unrecognized tax benefits were reduced by approximately $35 million (net of tax effect) as a result of the expiration of a statute of limitations in October 2008. During 2007, we recorded net income tax benefits in our provision for income taxes of $12.0 million related to the resolution of certain tax matters, changes in certain state tax laws, and other adjustments. Discontinued Operations Discontinued operations are related to stores that were sold or terminated, that we have entered into an agreement to sell or terminate, or for which we otherwise deem a proposed sales transaction or termination to be probable, with no material changes expected. We had a loss from discontinued operations totaling $36.2 million during 2009, $30.7 million in 2008, and $5.3 million in 2007, net of income taxes. During 2009, we recorded in discontinued operations estimated losses associated with the Chrysler and General Motors bankruptcies of approximately $11 million (after-tax), including expected losses on the disposition of real estate.
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Table of ContentsSee Note 13 of our Notes to Consolidated Financial Statements for a discussion of discontinued operations. Certain amounts reflected in the accompanying Consolidated Financial Statements for years ended 2009, 2008, and 2007 have been adjusted to classify the results of these stores as discontinued operations. These excerpts taken from the AN 10-K filed Feb 17, 2009. Provision
for Income Taxes
Our effective income tax rate was 13.9% in 2008, 37.3% in 2007,
and 38.9% in 2006. The tax rate for 2008 reflects the fact that
a significant portion of the impairment charges taken in 2008
was not deductible for income tax purposes. Income taxes are
provided based upon our anticipated underlying annual blended
federal and state income tax rates, adjusted, as necessary, for
any other tax matters occurring during the period. As we operate
in various states, our effective tax rate is also dependent upon
our geographic revenue mix. We expect our underlying tax rate to
be approximately 40% on an ongoing basis, excluding the impact
of any potential tax adjustments in the future.
As of December 31, 2008, we had unrecognized tax benefits
recorded in accordance with FIN 48. See Note 11 of the
Notes to Consolidated Financial Statements for additional
discussion.
Our unrecognized tax benefits were reduced by approximately
$35 million (net of tax effect) as a result of the
expiration of a statute of limitations in October 2008. We do
not expect that our unrecognized tax benefits will significantly
increase or decrease during the twelve months beginning
January 1, 2009.
During 2007, we recorded net income tax benefits in our
provision for income taxes of $12.0 million related to the
resolution of certain tax matters, changes in certain state tax
laws, and other adjustments.
During 2006, we made estimated state tax and federal tax
payments totaling $278.3 million, including approximately
$100 million related to provisions for the third and fourth
quarter of 2005, payment for which had been deferred as allowed
for filers impacted by hurricanes in 2005.
Discontinued
Operations
Discontinued operations are related to stores that were sold or
terminated, that we have entered into an agreement to sell or
terminate, or for which we otherwise deem a proposed sales
transaction or termination to be probable, with no material
changes expected. We had a loss from discontinued operations
totaling $17.7 million in 2008, $10.0 million in 2007,
and $12.1 million in 2006, net of income taxes. Certain
amounts reflected in the accompanying Consolidated Financial
Statements for the years ended December 31, 2008, 2007, and
2006, have been adjusted to classify the results of these stores
as discontinued operations.
Provision for Income Taxes Our effective income tax rate was 13.9% in 2008, 37.3% in 2007, and 38.9% in 2006. The tax rate for 2008 reflects the fact that a significant portion of the impairment charges taken in 2008 was not deductible for income tax purposes. Income taxes are provided based upon our anticipated underlying annual blended federal and state income tax rates, adjusted, as necessary, for any other tax matters occurring during the period. As we operate in various states, our effective tax rate is also dependent upon our geographic revenue mix. We expect our underlying tax rate to be approximately 40% on an ongoing basis, excluding the impact of any potential tax adjustments in the future. As of December 31, 2008, we had unrecognized tax benefits recorded in accordance with FIN 48. See Note 11 of the Notes to Consolidated Financial Statements for additional discussion. Our unrecognized tax benefits were reduced by approximately $35 million (net of tax effect) as a result of the expiration of a statute of limitations in October 2008. We do not expect that our unrecognized tax benefits will significantly increase or decrease during the twelve months beginning January 1, 2009. During 2007, we recorded net income tax benefits in our provision for income taxes of $12.0 million related to the resolution of certain tax matters, changes in certain state tax laws, and other adjustments. During 2006, we made estimated state tax and federal tax payments totaling $278.3 million, including approximately $100 million related to provisions for the third and fourth quarter of 2005, payment for which had been deferred as allowed for filers impacted by hurricanes in 2005. Discontinued Operations Discontinued operations are related to stores that were sold or terminated, that we have entered into an agreement to sell or terminate, or for which we otherwise deem a proposed sales transaction or termination to be probable, with no material changes expected. We had a loss from discontinued operations totaling $17.7 million in 2008, $10.0 million in 2007, and $12.1 million in 2006, net of income taxes. Certain amounts reflected in the accompanying Consolidated Financial Statements for the years ended December 31, 2008, 2007, and 2006, have been adjusted to classify the results of these stores as discontinued operations.
These excerpts taken from the AN 10-K filed Feb 28, 2008. Provision
for Income Taxes
Our effective income tax rate was 37.3% in 2007, 38.9% in 2006,
and 36.5% in 2005. Income taxes are provided based upon our
anticipated underlying annual blended federal and state income
tax rates, adjusted, as necessary, for any other tax matters
occurring during the period. As we operate in various states,
our effective tax rate is also dependent upon our geographic
revenue mix. We expect our underlying tax rate to be
approximately 40% on an ongoing basis, excluding the impact of
any potential tax adjustments in the future.
As of December 31, 2007, we had unrecognized tax benefits
recorded in accordance with FIN 48. See Note 11,
Income Taxes, of the Notes to Consolidated Financial Statements
for additional discussion.
During the twelve months beginning January 1, 2008, it is
reasonably possible that we will reduce unrecognized tax
benefits by approximately $35 million to $39 million
(net of tax effect) primarily as a result of the expiration of
certain statutes of limitations.
During 2007, we recorded net income tax benefits in our
provision for income taxes of $12.0 million related to the
resolution of various income tax matters, changes in certain
state tax laws, and other adjustments.
During 2006, we made estimated state tax and federal tax
payments totaling $278.3 million, including approximately
$100 million related to provisions for the third and fourth
quarter of 2005, payment for which had been deferred as allowed
for filers impacted by hurricanes in 2005.
During 2005, we recorded net income tax benefits in our
provision for income taxes of $14.5 million, primarily
related to the resolution of various income tax matters. We also
recognized income of $110.0 million in 2005, included in
discontinued operations related to the settlement of various
income tax matters.
Provision for Income Taxes Our effective income tax rate was 37.3% in 2007, 38.9% in 2006, and 36.5% in 2005. Income taxes are provided based upon our anticipated underlying annual blended federal and state income tax rates, adjusted, as necessary, for any other tax matters occurring during the period. As we operate in various states, our effective tax rate is also dependent upon our geographic revenue mix. We expect our underlying tax rate to be approximately 40% on an ongoing basis, excluding the impact of any potential tax adjustments in the future. As of December 31, 2007, we had unrecognized tax benefits recorded in accordance with FIN 48. See Note 11, Income Taxes, of the Notes to Consolidated Financial Statements for additional discussion. During the twelve months beginning January 1, 2008, it is reasonably possible that we will reduce unrecognized tax benefits by approximately $35 million to $39 million (net of tax effect) primarily as a result of the expiration of certain statutes of limitations. During 2007, we recorded net income tax benefits in our provision for income taxes of $12.0 million related to the resolution of various income tax matters, changes in certain state tax laws, and other adjustments. During 2006, we made estimated state tax and federal tax payments totaling $278.3 million, including approximately $100 million related to provisions for the third and fourth quarter of 2005, payment for which had been deferred as allowed for filers impacted by hurricanes in 2005. During 2005, we recorded net income tax benefits in our provision for income taxes of $14.5 million, primarily related to the resolution of various income tax matters. We also recognized income of $110.0 million in 2005, included in discontinued operations related to the settlement of various income tax matters. This excerpt taken from the AN 10-K filed Feb 28, 2007. Provision
for Income Taxes
The effective income tax rate was 38.9%, 36.5% and 34.7% for the
years ended December 31, 2006, 2005 and 2004, respectively.
Income taxes are provided based upon our anticipated underlying
annual blended federal and state income tax rates, adjusted, as
necessary, for any other tax matters occurring during the
period. As we operate in various states, our effective tax rate
is also dependent upon our geographic revenue mix.
During 2005 and 2004, we recorded net income tax benefits in our
provision for income taxes of $14.5 million and
$25.8 million, respectively, primarily related to the
resolution of various income tax matters. In 2005 and 2004, we
also recognized income of $110.0 million and
$52.2 million, respectively, included in Discontinued
Operations related to the settlement of various income tax
matters.
As a matter of course, various taxing authorities, including the
IRS, regularly audit us. Currently, the IRS is auditing the tax
years from 2002 to 2004. These audits may result in proposed
assessments where the ultimate resolution may result in us owing
additional taxes. We believe that our tax positions comply with
applicable tax law and that we have adequately provided for
these matters. Included in Other Current Liabilities at
December 31, 2006 and 2005 are $58.7 million and
$54.5 million, respectively, provided by us for these
matters. We expect our effective tax rate to be in the low to
mid-39% range on an ongoing basis, excluding the impact of any
potential tax adjustments in the future.
See Note 11, Income Taxes, of the Notes to Consolidated
Financial Statements for further information.
This excerpt taken from the AN 10-K filed Feb 24, 2005. Provision for
Income Taxes
Income taxes have been provided based upon our anticipated underlying annual effective income tax rate. The effective income tax rate was 34.7%, 15.0% and 38.3% for the years ended December 31, 2004, 2003 and 2002, respectively. In March 2003, we entered into a settlement agreement with the IRS with respect to the tax treatment of certain transactions we entered into in 1997 and 1999. As a result of the settlement, during 2003, we recognized an income tax benefit of $127.5 million from the reduction of previously recorded deferred tax liabilities. In 2003, we made a $366.0 million prepayment of the initial installment due March 2004, including interest. Additionally, in 2004, we prepaid the remaining balance due related to the IRS settlement totaling $128.9 million, including accrued interest. During 2004 and 2003, we recorded net income tax benefits in continuing operations totaling $25.8 million and $140.9 million (which includes $127.5 million recognized as a result of the IRS settlement discussed above), respectively, primarily related to the resolution of various income tax matters. We also recognized a $52.2 million gain included in Discontinued Operations related to the settlement of various income tax matters. Our underlying base effective tax rate for 2004 before adjustments was 39%. We substantially completed the federal income tax audit for the years 1997 through 2001 and a federal income tax audit for 2002 and 2003 was recently initiated by the IRS. We are routinely audited by the states in which we do business and remain under examination by various states for the tax years discussed above. We expect additional state and federal tax adjustments over the next eighteen months as we continue to work through various tax matters. Once we resolve our open tax matters, we expect our base effective tax rate to be approximately 39%. See Note 12, Income Taxes, of the Notes to Consolidated Financial Statements for further information.
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