Sunbeam 2001 Annual Report Download - page 23

tion. Also during 2000, the Company reached
settlements in legal disputes incurring $1.4 mil-
lion in net settlement and legal expenses.
During 1999, the Company incurred
$2.3 million in costs associated with the exit of
a plastic thermoforming facility.
8. Taxes on Income
The components of the provision for in-
come taxes attributable to continuing opera-
tions were as follows for the years ended
December 31:
(thousands of dollars) 2001 2000 1999
Current income tax expense
(benefit):
U.S.federal............ $(13,978) $ (166) $19,233
Foreign .............. 1,163 462 960
Stateandlocal......... (500) (59) 2,880
Total............... (13,315) 237 23,073
Deferred income tax
expense (benefit):
U.S.federal............ (33,707) 1,135 (3,635)
Stateandlocal......... (4,962) 187 (580)
Total............... (38,669) 1,322 (4,215)
Income tax benefit applied
to goodwill............ 11,541 843 600
Total income tax provision
(benefit) .............. $(40,443) $2,402 $19,458
Foreign pre-tax income was $0.9 million,
$2.5 million and $1.0 million in 2001, 2000
and 1999, respectively.
Deferred tax liabilities (assets) are com-
prised of the following at December 31:
(thousands of dollars) 2001 2000
Property, equipment and
intangibles .............. $ 9,430 $17,559
Other ..................... 2,314 346
Gross deferred tax
liabilities .............. 11,744 17,905
Net operating loss.......... (39,909) —
Accounts receivable
allowances .............. (388) (580)
Inventory valuation........ (1,730) (1,312)
Compensation and benefits. (4,010) (5,352)
Other ..................... (1,351) (2,214)
Gross deferred tax assets. . (47,388) (9,458)
Valuation allowance ....... 5,395 —
Net deferred tax liability
(asset)................... $(30,249) $ 8,447
Approximately $103 million of net operat-
ing loss carryforwards remain at December 31,
2001. Their use is limited to future taxable
income of the Company. The carryforwards
expire in 2021. The Company established a
valuation allowance against a portion of the
net tax benefit associated with all carryfor-
wards and temporary differences at Decem-
ber 31, 2001, as it is more likely than not that
these will not be fully utilized in the available
carryforward period. (See Note 19.)
The difference between the federal statu-
tory income tax rate and the Company’s effec-
tive income tax rate as a percentage of income
from continuing operations is reconciled as
follows:
2001 2000 1999
Federal statutory tax rate . . . 35.0% 35.0% 35.0%
Increase (decrease) in rates
resulting from:
State and local taxes, net . 3.3 1.0 3.0
Foreign ................ (0.9) (2.2) 1.2
Valuation allowance ..... (4.3) — —
Other ................. (0.9) 0.2 (0.1)
Effective income tax rate . . . 32.2% 34.0% 39.1%
In 1999, the income tax expense or benefit
from discontinued operations differed from an
expense or benefit calculated using the federal
statutory tax rate primarily due to state income
taxes and the amortization of intangible assets.
Total income tax payments made by the
Company during the years ended December 31,
2001, 2000 and 1999 were $1.0 million,
$1.7 million and $23.2 million, respectively.
9. Retirement and Other Employee
Benefit Plans
The Company has multiple defined contri-
bution retirement plans that qualify under sec-
tion 401(k) of the Internal Revenue Code. The
Company’s contributions to these retirement
plans were $1.5 million, $1.5 million and
$1.9 million, respectively, in the years ended
December 31, 2001, 2000 and 1999.
The Company also maintains a defined
benefit pension plan for certain of its hourly
employees. The components of net periodic
Alltrista
21