Nike 2003 Annual Report Download - page 51

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NIKE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The provision for income taxes is as follows:
Year Ended May 31,
2003 2002 2001
(In millions)
Current:
United States
Federal ............................................... $125.6 $156.5 $158.5
State ................................................. 33.6 32.0 31.6
Foreign ................................................. 190.0 147.7 76.2
349.2 336.2 266.3
Deferred:
United States
Federal ............................................... 11.3 (3.3) 64.2
State ................................................. 8.6 3.3 2.6
Foreign ................................................. 13.8 12.8 (1.4)
33.7 12.8 65.4
$382.9 $349.0 $331.7
Deferred tax (assets) and liabilities are comprised of the following:
May 31,
2003 2002
(In millions)
Deferred tax assets:
Allowance for doubtful accounts .................................... $ (11.8) $ (14.5)
Inventory reserves ................................................ (10.0) (17.4)
Sales return reserves .............................................. (27.4) (22.1)
Deferred compensation ............................................ (68.1) (49.0)
Reserves and accrued liabilities ..................................... (28.5) (38.5)
Tax basis inventory adjustment ..................................... (15.9) (16.0)
Property, plant, and equipment ...................................... (28.9) (23.4)
Foreign loss carryforwards ......................................... (32.5) (39.9)
Hedges ........................................................ (110.9) (26.7)
Other .......................................................... (17.7) (22.7)
Total deferred tax assets ......................................... (351.7) (270.2)
Deferred tax liabilities:
Undistributed earnings of foreign subsidiaries .......................... 60.1 22.0
Property, plant and equipment ...................................... 94.3 59.6
Hedges ........................................................ 2.6 13.7
Other .......................................................... 13.7 26.7
Total deferred tax liabilities ...................................... 170.7 122.0
Net deferred tax asset before valuation allowance ......................... (181.0) (148.2)
Valuation allowance ................................................ 13.0 13.2
Net deferred tax asset ............................................... $(168.0) $(135.0)
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