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Income Taxes
 12 Months Ended
Jun. 30, 2012
Income Tax Disclosure [Abstract]  
Income Taxes

 

6. Income Taxes The following are the components of income taxes:

 

Years ended June 30,  2012   2011 
         
Current          
      Federal  $248,257   $285,994 
      State   42,497    48,956 
    290,754    334,950 
           
Deferred          
      Federal   21,988    31,064 
      State   3,764    5,318 
    25,752    36,382 
   $316,506   $371,332 

 

  The reconciliation of income tax expense computed at the Federal statutory tax rate of 34% to the provision for income taxes is as follows:

 

Years ended June 30,  2012   2011 
         
Tax at the statutory rate  $281,586   $331,536 
State income taxes,
net of federal benefit		   30,064    35,396 
Other   4,856    4,400 
   $316,506   $371,332 
           
Effective tax rate   38.2%   38.1%

 

  Deferred income taxes reflect the net tax effect of temporary differences between the bases of assets and liabilities for financial reporting purposes and the bases used for income tax purposes.  Significant components of the Company’s current and noncurrent deferred tax assets and liabilities are as follows:

 

Years ended June 30,  2012   2011 
         
Current deferred tax assets:          
      Allowance for doubtful accounts  $58,327   $62,090 
      Inventory capitalization   34,234    35,634 
      Inventory reserves   26,902    26,707 
    119,463    124,431 
           
Noncurrent deferred tax assets (liabilities):          
      Equipment and improvements   (1,890)   5,035 
      Franchise, trademarks and other
         intangible assets		   28,953    42,812 
    27,063    47,847 
Total net deferred income tax assets  $146,526   $172,278 

 

  As of June 30, 2012, the Company was subject to potential Federal and State tax examinations for the tax years 2008 through 2011.