Garmin 2002 Annual Report Download - page 54

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53
Note 8. Income Taxes
The Company’s income tax provision (benefit) consists of the following:
Year Ended
December 28, 2002 December 29, 2001 December 30, 2000
Federal:
Current $18,576 $10,208 $14,638
Deferred (1,639) (338) (450)
16,937 9,870 14,188
State:
Current (1,035) 2,237 3,479
Deferred (328) (74) (2,051)
(1,363) 2,163 1,428
Foreign:
Current 22,969 28,165 21,606
Deferred 1,394 (1,611) (1,963)
24,363 26,554 19,643
Total $39,937 $38,587 $35,259
The income tax provision differs from the amount computed by applying the statutory federal income tax rate to income before
taxes. The sources and tax effects of the differences are as follows:
Year Ended
December 28, 2002 December 29, 2001 December 30, 2000
Federal income tax expense at U.S. statutory rate $63,957 $53,212 $49,323
State income tax expense, net of federal tax effect 886 1,406 928
Foreign tax rate differential (16,759) (13,640) (9,623)
Taiwan tax incentives and credits (10,757) (3,260) (5,181)
Other, net 2,610 869 (188)
Income tax expense $39,937 $38,587 $35,259
The Company’s income before income taxes attributable to foreign operations was $146,804, $120,550, and $99,171, for the
years ended December 28, 2002, December 29, 2001, and December 30, 2000, respectively. The tax incentives and credits received
from Taiwan included in the table above reflect $0.10, $0.03, and $0.05 per weighted-average common share outstanding for the
years ended December 28, 2002, December 29, 2001, and December 30, 2000, respectively. The Company currently expects to
benefit from the incentives and credits being offered by Taiwan through 2007, at which time these tax benefits expire.