Plantronics 2000 Annual Report Download - page 31

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N OTES TO consolidated financial statements
Pre-tax earnings of the foreign subsidiaries were $15.7 million, $24.5 million and $28.1 million for
fiscal years 1998, 1999 and 2000, respectively. Cumulative earnings of foreign subsidiaries that have been
permanently reinvested as of March 31, 2000 totaled $45.3 million.
The following is a reconciliation between statutory federal income taxes and the total provision for taxes
on pre-tax income:
FISCAL YEAR ENDED M ARCH 3 1 ,
(IN TH OUSANDS) 1998 1999 2000
Tax expense at statutory rate $20,171 $27,847 $33,208
Foreign operations taxed at different rates (4,364) (3,609) (4,422)
State taxes, net of federal benefit 1,476 1,263 1,572
Other, net 1,160 500 3
$18,443 $26,001 $30,361
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 our deferred tax liabilities and assets are as follows:
FISCAL YEAR ENDED M ARCH 3 1 ,
(IN TH OUSANDS) 1 9 9 9 2000
Deferred gains on sales of properties $2,413 $2,350
Deferred state tax 793 —
Unremitted earnings of certain subsidiaries 7,249 3,357
Other deferred tax liabilities 1,200 1,773
Gross deferred tax liabilities 11,655 7,480
Accruals and other reserves (4,122) (6,182)
Deferred state tax —(386)
Other deferred tax assets (667) (539)
Gross deferred tax assets (4,789) (7,107)
Total net deferred tax liabilities $6,866 $ 373
note 7. EMPLOYEE BENEFIT PLANS:
Subject to eligibility requirements, substantially all domestic employees participated in our qualified profit
sharing and 401(k) plan. Under the plan, participating employees received quarterly cash, annual cash and
annual deferred profit sharing payments. All other employees, with the exception of direct labor in Mexico,
participated in quarterly cash profit sharing plans. Domestic employees also had the option of participating
in a salary deferral component of the plan, qualified under Section 401(k) of the Internal Revenue
Code.The profit sharing benefits were based on Plantronics’results of operations before interest and taxes,
adjusted for other items.The percentage of profit distributed to employees varied by location.The profit
sharing was paid in four quarterly installments, and for qualified associates, one annual cash payment and
PLANTRONICS ANN UAL REPORT 2 0 0 0 page 29