Adobe 1999 Annual Report Download - page 65

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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share data)
(Continued)
64
NOTE 8. INCOME TAXES
Income before income taxes includes net income from foreign operations of approximately $23.1 mil-
lion, $18.8 million, and $59.3 million for the years ended December 3, 1999; November 27, 1998; and
November 28, 1997, respectively.
The provision for income taxes consisted of the following:
Years Ended
December 3 November 27 November 28
1999 1998 1997
Current:
United States federal ................. $ 54,097 $34,466 $ 42,238
Foreign ........................... 11,346 15,394 29,260
State and local ...................... 12,061 6,869 12,320
Total current ......................... 77,504 56,729 83,818
Deferred:
United States federal ................. (569) (4,312) (1,721)
Foreign ........................... 1,810 (1,500) (2,071)
State and local ...................... (547) (962) (380)
Total deferred ........................ 694 (6,774) (4,172)
Charge in lieu of taxes attributable to
employee stock plans ................. 58,478 12,595 29,607
$136,676 $62,550 $109,253
Total income tax expense differs from the expected tax expense (computed by multiplying the United
States federal statutory rate of approximately 35% for fiscal years 1999, 1998, and 1997 by income before
income taxes) as a result of the following:
Years Ended
December 3 November 27 November 28
1999 1998 1997
Computed ‘‘expected’’ tax expense ....................... $131,050 $58,693 $103,632
State tax expense, net of federal benefit ................... 14,419 6,068 10,301
Nondeductible write-off of acquired in-process research and
development ..................................... — — 1,791
Nondeductible goodwill .............................. — 2,011 825
Tax-exempt income .................................. (2,650) (4,190) (5,559)
Tax credits ........................................ (2,450) (4,708) (4,604)
Foreign tax rate differential ............................ — 1,406 1,864
Other, net ........................................ (3,693) 3,270 1,003
$136,676 $62,550 $109,253