Nautilus 2003 Annual Report Download - page 62

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Table of Contents
The components of the net deferred tax asset (liability) at December 31, 2003 and 2002 are as follows:
2003
2002
Assets:
Accrued liabilities
$
5,620
$
2,442
Allowance for doubtful accounts
188
617
Inventory valuation
573
537
Uniform capitalization
391
470
Other
83
111
6,855
4,177
Liabilities:
Prepaid advertising
(935
)
(502
)
Other prepaids
(708
)
(751
)
Depreciation and amortization
(10,206
)
(9,149
)
Undistributed earnings of foreign subsidiaries
(566
)
—
(12,415
)
(10,402
)
Net deferred tax liability
$
(5,560
)
$
(6,225
)
A reconciliation of the U.S. statutory federal income tax rate with the Company’s effective income tax rate is as follows:
2003
2002
2001
U.S. statutory income tax rate
35.0
%
35.0
%
35.0
%
State tax, net of federal benefit
1.8
1.1
1.9
Tax benefit related to U.S. export sales
(0.5
)
(0.2
)
(0.2
)
Nondeductible operational expenses
0.2
0.1
—
Tax exempt interest
(0.3
)
—
(
0.2
)
Research and development credit
(0.3
)
—
—
Other
0.1
—
—
Total
36.0
%
36.0
%
36.5
%
11. EARNINGS PER SHARE
Basic earnings per share is computed on the basis of the weighted average number of common shares outstanding. Diluted earnings per
share is computed on the basis of the weighted average number of common shares outstanding plus the effect of outstanding stock options
calculated using the treasury stock method. Net income for the calculation of both basic and diluted earnings per share is the same as
reported net income for all periods.
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