Adobe 2001 Annual Report Download - page 81

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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In thousands, except share and per share data)
Note 8. Income Taxes
Income before income taxes includes net income from foreign operations of approximately
$90.0 million, $39.0 million, and $23.1 million for the years ended November 30, 2001; December 1, 2000;
and December 3, 1999, respectively.
The provision for income taxes consisted of the following:
Years Ended
November 30, December 1, December 3,
2001 2000 1999
Current:
United States federal ................. $ 52,355 $ 13,096 $ 54,097
Foreign ........................... 16,087 11,452 11,346
State and local ...................... 4,753 5,063 12,061
Total current ......................... 73,195 29,611 77,504
Deferred:
United States federal ................. (14,494) (1,569) (569)
Foreign ........................... (767) 3,568 1,810
State and local ...................... (2,339) (601) (547)
Total deferred ........................ (17,600) 1,398 694
Charge in lieu of taxes attributable to
employee stock plans ................. 45,692 124,922 58,478
$101,287 $155,931 $136,676
Total income tax expense differs from the expected tax expense (computed by multiplying the United
States federal statutory rate of 35% for fiscal year 2001, 2000, and 1999 by income before income taxes) as
a result of the following:
Years Ended
November 30, December 1, December 3,
2001 2000 1999
Computed ‘‘expected’’ tax expense ......... $107,426 $155,309 $131,050
State tax expense, net of federal benefit ..... 6,983 12,403 14,419
Nondeductible goodwill ................. 3,178 958 —
Tax-exempt income .................... (4,496) (3,868) (2,650)
Tax credits .......................... (8,000) (8,000) (2,450)
Foreign tax rate differential .............. (2,653) (571) —
Other, net ........................... (1,151) (300) (3,693)
$101,287 $155,931 $136,676
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