| |
Income tax expense for 2001, 2000 and 1999 includes the following components:
| |
|
FEDERAL |
|
STATE |
|
FOREIGN |
|
TOTAL |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| 2001 |
|
|
|
|
|
|
|
|
|
| |
Current |
$ |
9,921 |
|
2,806 |
|
26,084 |
|
38,811 |
|
| |
Deferred |
|
16,511 |
|
1,729 |
|
— |
|
18,240 |
|
| |
|
|
|
|
|
|
|
|
|
| |
$ |
26,432 |
|
4,535 |
|
26,084 |
|
57,051 |
|
| |
|
|
|
|
|
|
|
|
|
| 2000 |
|
|
|
|
|
|
|
|
|
| |
Current |
$ |
9,717 |
|
2,802 |
|
27,665 |
|
40,184 |
|
| |
Deferred |
|
7,975 |
|
2,154 |
|
— |
|
10,129 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
$ |
17,692 |
|
4,956 |
|
27,665 |
|
50,313 |
|
| |
|
|
|
|
|
|
|
|
|
| 1999 |
|
|
|
|
|
|
|
|
|
| |
Current |
$ |
3,823 |
|
1,331 |
|
14,149 |
|
19,303 |
|
| |
Deferred |
|
14,098 |
|
2,069 |
|
— |
|
16,167 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
$ |
17,921 |
|
3,400 |
|
14,149 |
|
35,470 |
|
| |
|
|
|
|
|
|
|
|
|
Income tax expense differs from amounts computed by applying the U.S. Federal income tax rate of 35% to earnings before income taxes as a result of the following:
| |
|
2001 |
|
2000 |
|
1999 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Computed "expected" tax expense |
$ |
54,003 |
|
46,672 |
|
33,126 |
|
| Increase (reduction) in income taxes |
|
|
|
|
|
|
|
| |
resulting from: |
|
|
|
|
|
|
|
| |
State and local income taxes, |
|
|
|
|
|
|
|
| |
|
net of Federal income tax benefit |
|
2,948 |
|
3,221 |
|
2,210 |
|
| |
Decrease in valuation allowance |
|
|
|
|
|
|
|
| |
|
for deferred tax assets |
|
(7 |
) |
(68 |
) |
(147 |
) |
| |
Other, net |
|
107 |
|
488 |
|
281 |
|
| |
|
|
|
|
|
|
|
| |
$ |
57,051 |
|
50,313 |
|
35,470 |
|
| |
|
|
|
|
|
|
|
The components of earnings before income taxes are as follows:
| |
|
2001 |
|
2000 |
|
1999 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| United States |
$ |
46,684 |
|
34,176 |
|
30,403 |
|
| Foreign |
|
107,610 |
|
99,172 |
|
64,242 |
|
| |
|
|
|
|
|
|
|
| |
$ |
154,294 |
|
133,348 |
|
94,645 |
|
| |
|
|
|
|
|
|
|
The tax effects of temporary differences, tax credits and operating loss carryforwards that give rise to significant portions of deferred tax assets and deferred tax liabilities at December 31, 2001 and 2000 are as follows:
| YEARS ENDED DECEMBER 31, |
|
2001 |
|
2000 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
| DEFERRED TAX ASSETS: |
|
|
|
|
|
| |
Foreign tax credits related to unremitted |
|
|
|
|
|
| |
|
foreign earnings |
$ |
49,957 |
|
43,596 |
|
| |
Accrued intercompany and third party charges, |
|
|
|
|
|
| |
|
deductible for taxes upon economic performance |
|
|
|
|
|
| |
|
(i.e. actual payment) |
|
2,867 |
|
3,274 |
|
| |
Foreign currency translation adjustment |
|
7,766 |
|
5,169 |
|
| |
Provision for doubtful accounts receivable |
|
2,115 |
|
2,371 |
|
| |
Excess of financial statement over tax depreciation |
|
3,826 |
|
3,150 |
|
| |
Other |
|
1,112 |
|
1,129 |
|
| |
|
|
|
|
|
| |
|
Total gross deferred tax assets |
|
67,643 |
|
58,689 |
|
| |
|
Less valuation allowance |
|
(1 |
) |
(8 |
) |
| |
|
|
|
|
|
| |
|
67,642 |
|
58,681 |
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| DEFERRED TAX LIABILITIES: |
|
|
|
|
|
| |
Unremitted foreign earnings |
|
(55,887 |
) |
(50,476 |
) |
| |
Other |
|
|
(7,250 |
) |
(5,074 |
) |
| |
|
|
|
|
|
| |
|
Total gross deferred tax liabilities |
$ |
(63,137 |
) |
(55,550 |
) |
| |
|
|
|
|
|
| |
|
Net deferred tax assets |
$ |
4,505 |
|
3,131 |
|
| |
|
|
|
|
|
| |
|
Plus current deferred tax liabilities |
$ |
7,651 |
|
5,699 |
|
| |
|
|
|
|
|
| |
|
Noncurrent deferred tax assets |
$ |
12,156 |
|
8,830 |
|
| |
|
|
|
|
|
At December 31, 2001, the Company has net operating loss carryforwards for foreign income tax purposes of $4 which are available over an indefinite period to offset future foreign taxable income.
The Company has not provided U.S. Federal income taxes on undistributed earnings of foreign subsidiaries accumulated through December 31, 1992 since the Company intends to reinvest such earnings indefinitely or to distribute them in a manner in which no significant additional taxes would be incurred. Such undistributed earnings are approximately $41,900 and the additional Federal and state taxes payable in a hypothetical distribution of such accumulated earnings would approximate $10,100. Since 1993, the Company has been providing for Federal and state income tax expense on foreign earnings without regard to whether such earnings will be permanently reinvested outside the United States.
|
