Assuming that Starbucks had no significant permanent differences between book income and taxable income, did income before taxes for financial reporting exceed or fall short of taxable income for 2012? Explain. I cannot figure out how to calculate income before taxes and taxable income
Wahlen, James M.; Baginski, Stephen P.; Bradshaw, Mark. Financial Reporting, Financial Statement Analysis and Valuation (Page 145). Cengage Learning. Kindle Edition.
Exhibit 2.18Starbucks Income Tax Disclosures(amounts in millions) (Integrative Case 2.1)For the Year Ended September 30 and October 2, respectively:20122011Income Tax ExpenseCurrent:Federal$466.0$344.7State79.961.2Foreign76.837.3Deferred51.7119.9Total5674.4$563.1As of the Year Ended September 30 and October 2, respectively:20122011Components of Deferred Tax Assets and LiabilitiesDeferred tax assets:Property, plant, and equipment$62.7$46.4Accrued occupancy costs72.055.9Accrued compensation and related costs66.969.6Other accrued liabilities15.727.8Asset retirement obligation asset20.119.0Deferred revenue43.747.8Asset impairments38.560.0Tax credits14.623.0Stock based compensation131.8128.8Net operating losses99.285.5Other80.958.6Total Deferred Tax Assets$ 646.1$ 622.4Valuation allowance(154.2)(137.4Net Deferred Tax Assets$ 491.9$ 485.0Deferred tax liabilities:Property, plant, and equipment(89.0)(66.4)Intangible assets and goodwill(34.0)(25.2)Other(44.8)(18.1)Total Deferred Tax Liabilities$ (167.8)$ (109.7Net Deferred Tax Asset$ 324.1$ 375.3Source: Starbucks Corporation, Form 10-K, for the fiscal year ended September 30, 2012.