Garmin 2009 Annual Report Download - page 100

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CertainoftheCompany’sforeignsubsidiariesparticipateinlocaldefinedbenefitpensionplans.
Contributionsarecalculatedbyformulasthatconsiderfinalpensionablesalaries.Neitherobligationsnor
contributionsfortheyearsendedDecember26,2009,December27,2008,andDecember29,2007,were
significant.
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6.IncomeTaxes
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TheCompany’sincometaxprovision(benefit)consistsofthefollowing:
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December26, December27, December29,
2009 2008 2007
Federal:
Current $104,186 $90,655 $132,452
Deferred (12,021) 23,639 (42,193)
92,165 114,294 90,259
State:
Current 5,381 1,318 12,569
Deferred (947) 1,090 (2,916)
4,434 2,408 9,653
Foreign:
Current 18,469 44,279 34,334
Deferred (10,367) 20,537 (10,984)
8,102 64,816 23,350
Total $104,701 $181,518 $123,262
FiscalYearEnded
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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,includingtheimpactofestablishingtax
contingencyaccruals,areasfollows:

December26, December27, December29,
2009 2008 2007
Federalincometaxexpenseat
U.S.statutoryrate $287,228 $332,278 $342,396
Stateincometaxexpense,netof
federaltaxeffect 2,604 2,030 5,922
Foreigntaxratedifferential (219,482) (233,928) (230,243)
Taiwantaxholidaybenefit (18,556) (24,904) (44,128)
Netchangeinuncertaintaxpostions 41,400 87,800 56,100
Otherforeigntaxesless
incentivesandcredits 10,379 20,428 (117)
Other,net 1,128 (2,186) (6,668)
Incometaxexpense $104,701 $181,518 $123,262
FiscalYearEnded
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TheCompany’sincomebeforeincometaxesattributabletonon‐U.S.operationswas$678,868,$823,364,
and$850,102,fortheyearsendedDecember26,2009,December27,2008,andDecember29,2007,respectively.
TheTaiwantaxholidaybenefitsincludedinthetableabovereflect$0.09,$0.12,and$0.20perweighted‐average
commonshareoutstandingfortheyearsendedDecember26,2009,December27,2008,andDecember29,2007,