Walmart 1998 Annual Report Download - page 33

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4 Defined Contribution Plans
The Company maintains profit sharing plans under which
most full-time, and many part-time associates become
participants following one year of employment. In fiscal 1998,
the Company added 401(k) plans in which the same associates
may elect to contribute up to 10% of their earnings.
The Company will make annual contributions to these
plans on behalf of all eligible associates, including those who
have not elected to contribute to the 401(k) plan.
Annual Company contributions are made at the sole
discretion of the Company, and were $321 million, $247
million and $204 million in 1998, 1997 and 1996, respectively.
5 Income Taxes
1998 1997 1996
Current
Federal $ 1,891 $ 1,769 $ 1,342
State and local 186 201 188
International 18 4
Total current tax provision 2,095 1,974 1,530
Deferred
Federal (5) (97) 119
State and local (2) (9) 15
International 27 (74) (58)
Total deferred tax provision 20 (180) 76
Total provision for income taxes $ 2,115 $ 1,794 $ 1,606
1998 1997 1996
Deferred tax liabilities:
Property, plant and equipment $ 797 $ 721 $ 617
Inventory 275 145 135
International, principally asset basis differences 387 83 62
Other 33 45 19
Total deferred tax liabilities 1,492 994 833
Deferred tax assets:
Amounts accrued for financial reporting purposes
not yet deductible for tax purposes 441 295 204
International, asset basis and loss carryforwards 258 314 163
Capital leases 190 169 147
Deferred revenue 89 113
Other 108 68 49
Total deferred tax assets 1,086 959 563
Net deferred tax liabilities $406 $ 35 $ 270
1998 1997 1996
Statutory tax rate 35.0% 35.0% 35.0%
State income taxes, net of federal income tax benefit 2.1% 2.2% 3.1%
International (0.3%) (1.5%) (1.0%)
Other 0.2% 1.1% (0.3%)
37.0% 36.8% 36.8%
The income tax provision consists of the following (in millions):
Items that give rise to significant portions of the deferred tax accounts at January 31, are as follows (in millions):
A reconciliation of the significant differences between the effective income tax rate and the federal
statutory rate on pretax income follows:
33