Adaptec 2001 Annual Report Download - page 81

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81
NOTE 12. I ncome Taxes
The income tax provisions, calculated under Statement of Financial Accounting Standard
No. 109 (SFA S 109), consist of the following:
A reconciliation betw een the Company’s effective tax rate and the U.S. Federal statutory rate is
as follows:
Year Ended December 31,
(in thousands) 2001 2000 1999
Current:
Federal -$ 40$ (102)$
State 4 224 526
Foreign (7,034) 100,880 43,843
(7,030) 101,144 44,267
Deferred:
Federal - (72) (23)
Foreign (10,733) 1,340 (2,898)
(10,733) 1,268 (2,921)
Provision for income taxes (17,763)$ 102,412$ 41,346$
Year Ended December 31,
(in thousands) 2001 2000 1999
Income before provision for income taxes (656,817)$ 177,710$ 113,175$
Federal statutory tax rate 35% 35% 35%
Income taxes at U.S. Federal statutory rate (229,886)$ 62,198$ 39,611$
State taxes, net of federal benefit - 224 526
In process research and development costs - 13,370 -
Goodwill 16,188 11,297 -
Impairment of goodwill and purchased intangible assets 94,440 - -
Acquisition costs - 13,291 -
Deferred stock compensation 14,414 9,576 -
Incremental taxes on foreign earnings 1,535 9,093 (697)
Other (97) 530 1,933
Valuation allowance 85,643 (17,167) (27)
Provision for income taxes (17,763)$ 102,412$ 41,346$