Columbia Sportswear 2004 Annual Report Download - page 54

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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The components of the provision for income taxes consist of the following (in thousands):
Year ended December 31
2004 2003 2002
Current:
Federal ......................................................... $53,164 $51,521 $41,583
State and local ................................................... 5,746 9,277 6,147
Non-U.S......................................................... 19,971 13,752 10,886
78,881 74,550 58,616
Deferred:
Federal ......................................................... (509) (4,340) 2,910
State and local ................................................... 342 (885) 575
Non-U.S......................................................... (2,417) 1,223 (590)
(2,584) (4,002) 2,895
Incometaxexpense ................................................. $76,297 $70,548 $61,511
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
2004 2003 2002
(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 .............................. 1.8 3.4 2.7
Non-U.S. income taxed at different rates ...................................... (0.9) 0.8 1.0
Foreign tax credits ........................................................ — (1.0) (0.8)
Reduction of accrued income taxes ........................................... — (1.1) —
Other .................................................................. (0.4) (0.1) (0.4)
Actual provision for income taxes ............................................ 35.5% 37.0% 37.5%
Significant components of the Company’s deferred taxes are as follows (in thousands):
As of December 31
2004 2003
Deferred tax assets:
Non-deductible accruals and allowances ....................................... $18,300 $15,774
Capitalized inventory costs ................................................. 3,890 2,463
Other .................................................................. 339 —
22,529 18,237
Deferred tax liabilities:
Depreciation and amortization ............................................... (9,662) (8,870)
Deductible accruals and allowance ........................................... (1,763) (1,127)
(11,425) (9,997)
Total ..................................................................... $11,104 $ 8,240
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