Plantronics 1999 Annual Report Download - page 19

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PLANTRONICS ANNUAL REPORT 1999 page 17
Notes to consolidated financial statements
note 6. INCOME TAXES:
Income tax expense for fiscal 1997, 1998 and 1999 consisted of the following:
FISCAL YEAR ENDED MARCH 31,
(IN THOUSANDS) 199 7 199 8 1999
Federal
Current $ 8,744 $10,109 $18,127
Deferred 2,789 4,746 3,344
State 1,854 1,472 1,943
Foreign 1,899 2,116 2,587
$15,286 $18,443 $26,001
Pre-tax earnings of the foreign subsidiaries were $8.2 million, $15.7 million and $24.5 million for fiscal years
1997, 1998 and 1999, respectively. Cumulative earnings of foreign subsidiaries that have been permanently
reinvested as of March 31, 1999 totaled $22.5 million.
The following is a reconciliation between statutory federal income taxes and the total provision for taxes
on pre-tax income:
FISCAL YEAR ENDED MARCH 31,
(IN THOUSANDS) 199 7 199 8 1999
Tax expense at statutory rate $15,735 $20,171 $27,847
Foreign operations taxed at different rates (971) (4,364) (3,609)
State taxes, net of federal benefit 1,204 1,476 1,263
Other, net (682) 1,160 500
$15,286 $18,443 $26,001
Deferred tax liabilities (assets) represent the tax effects of temporary differences between the carrying
amounts of assets and liabilities for financial reporting and income tax purposes. Significant components
of the Company’s deferred tax liabilities and assets are as follows:
MARCH 31,
(IN THOUSANDS) 199 8 1999
Deferred gains on sales of properties $2,476 $ 2,413
Deferred state tax 314 793
Unremitted earnings of certain subsidiaries 5,749 7,249
Other deferred tax liabilities 1,111 1,200
Gross deferred tax liabilities 9,650 11,655
Accruals and other reserves (5,670) (4,122)
Other deferred tax assets (458) (667)
Gross deferred tax assets (6,128) (4,789)
Total net deferred tax liabilities $3,522 $ 6,866