North Face 2001 Annual Report Download - page 64

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In addition, $3.9 million of the 2000 noncash charges were not required and accordingly were credited to
income in 2001. Remaining severance and other cash payments will be made into 2002.
Restructuring costs were recorded as follows:
In thousands 2001 2000
Cost of products sold $129,315 $ 55,851
M arketing, administrative and general expense 70,080 37,226
Other operating expense, net 37,427 26,831
$236,822 $119,908
Note N Income Taxes
The provision for income taxes is computed based on the following amounts of income before income taxes and
cumulative effect of change in accounting policy:
In thousands 2001 2000 1999
Domestic $215,791 $429,453 $567,545
Foreign 47,010 2,080 28,031
$262,801 $431,533 $595,576
The provision for income taxes consists of:
In thousands 2001 2000 1999
Current:
Federal $134,059 $130,740 $175,052
Foreign 18,628 23,957 14,113
State 10,302 17,753 19,607
162,989 172,450 208,772
Deferred, primarily federal (38,018) (8,033) 20,562
$124,971 $164,417 $229,334
The reasons for the difference between income taxes computed by applying the statutory federal income
tax rate and income tax expense in the financial statements are as follows:
In thousands 2001 2000 1999
Tax at federal statutory rate $ 91,981 $151,037 $208,452
State income taxes,
net of federal tax benefit (1,312) 6,169 12,744
Amortization of intangible assets 8,943 8,812 8,241
Write-off of intangible assets 11,713 ––
Foreign operating losses
with no current benefit 17,253 20,613 13,871
Change in valuation allowance (2,820) (4,951) (2,263)
Other, net (787) (17,263) (11,711)
$124,971 $164,417 $229,334
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