CDW 2003 Annual Report Download - page 54

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41
2003 2002 2001
Domestic $ 289,641 $ 306,197 $ 279,976
Foreign (77) - -
Total $ 289,564 $ 306,197 $ 279,976
Components of the provision (benefit) for income taxes for the years ended December 31, 2003, 2002 and
2001 consist of (in thousands):
2003 2002 2001
Current:
Federal $ 91,361 $ 101,449 $ 95,503
State 21,244 20,945 19,224
Total current 112,605 122,394 114,727
Deferred 1,773 (1,446) (3,437)
Provision for income taxes $ 114,378 $ 120,948 $ 111,290
The current income tax liabilities for 2003, 2002 and 2001 were reduced by $36.5 million, $69.5 million
and $58.1 million, respectively, for tax benefits recorded directly to paid-in capital relating to the exercise
and vesting of shares pursuant to the CDW Stock Option Plan, the MPK Stock Option Plan and the MPK
Restricted Stock Plan.
The reconciliation between the statutory tax rate expressed as a percentage of income before income taxes
and the actual effective tax rate for the years ended December 31, 2003, 2002 and 2001 is as follows
(dollars in thousands):
2003 2002
2001
Statutory federal income tax rate $ 101,347 35.0 % $ 107,169 35.0 % $ 97,992 35.0 %
State taxes, net of federal benefit 13,921 4.8 13,411 4.4 11,926 4.3
Other (890) (0.3) 368 0.1
1,372 0.5
Effective tax rates $ 114,378 39.5 % $ 120,948 39.5 % $ 111,290 39.8 %
The tax effect of temporary differences that give rise to the net deferred income tax asset at December 31,
2003 and 2002 are presented below (in thousands):