Columbia Sportswear 2003 Annual Report Download - page 53

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
In 2003, the Company reduced accrued income taxes by approximately $2,000,000 due to a reduction in
accrued income taxes related to favorable outcomes of various federal, state and international income tax audits
during the year.
Consolidated income from continuing operations before income taxes consists of the following (in
thousands):
Year ended December 31
2003 2002 2001
U.S. operations .................................................. $147,738 $136,186 $126,593
Foreign operations ............................................... 42,931 27,843 19,020
Incomebeforeincometax ..................................... $190,669 $164,029 $145,613
The components of the provision for income taxes consist of the following (in thousands):
Year ended December 31
2003 2002 2001
Current:
Federal ......................................................... $51,521 $41,583 $43,384
State and local ................................................... 9,277 6,147 7,109
Non-U.S......................................................... 13,752 10,886 8,371
74,550 58,616 58,864
Deferred:
Federal ......................................................... (4,340) 2,910 (1,769)
State and local ................................................... (885) 575 (350)
Non-U.S......................................................... 1,223 (590) 44
(4,002) 2,895 (2,075)
Incometaxexpense ................................................. $70,548 $61,511 $56,789
The following is a reconciliation of the normal expected statutory federal income tax rate to the effective
rate reported in the financial statements:
Year ended December 31
2003 2002 2001
(percent of income)
Provision for federal income taxes at the statutory rate ........................... 35.0% 35.0% 35.0%
State and local income taxes, net of federal benefit .............................. 3.4 2.7 3.1
Non-U.S. income taxed at different rates ...................................... 0.8 1.0 1.3
Foreign tax credits ........................................................ (1.0) (0.8) —
Reduction of accrued income taxes ........................................... (1.1) — —
Other .................................................................. (0.1) (0.4) (0.4)
Actual provision for income taxes ............................................ 37.0% 37.5% 39.0%
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