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80
and facilities costs. Transaction costs primarily relate to the liquidation of Accelio’s subsidiaries and are
expected to be paid through fiscal 2005. Facility costs relate to leases we assumed upon acquisition of
Accelio that terminate at various times through September 2006.
A summary of restructuring activities, related to our acquisition of Accelio, is as follows:
Balance at
November 28, 2003
Cash
Payments
Adjustments
Balance at
December 3, 2004
Transaction costs .................. $ 255 $ (119) $ (19) $ 117
Cost of closing redundant
facilities..............................
829
(685)
―
144
Other exit costs ..................... 48 (5) (43) ―
Total $ 1,132 $ (809) $ (62) $ 261
Note 9. Income Taxes
Income before income taxes includes net income from foreign operations of approximately $298.0
million, $197.0 million and $163.0 million for fiscal 2004, 2003 and 2002, respectively.
The provision for income taxes consisted of the following for fiscal 2004, 2003 and 2002:
2004 2003 2002
Current:
United States federal.....................................................................
.
$ 1,769 $ 32,751 $ 63,547
Foreign .........................................................................................
.
11,728 11,814 8,344
State and local ..............................................................................
.
1,638 1,090 5,055
Total current.....................................................................................
.
15,135 45,655 76,946
Deferred:
United States federal.....................................................................
.
56,641 31,815 (4,984)
Foreign .........................................................................................
.
(970) (1,072) 259
State and local ..............................................................................
.
(10,353) 314 (761)
Total deferred...................................................................................
.
45,318 31,057 (5,486)
Charge in lieu of taxes attributable to employee stock plans............
.
97,794 37,436 21,830
$ 158,247 $ 114,148 $ 93,290
Total income tax expense differs from the expected tax expense (computed by multiplying the United
States federal statutory rate of 35% for fiscal 2004, 2003 and 2002 by income before income taxes) as a
result of the following:
2004 2003 2002
Computed “expected” tax expense ...................................................
.
$ 213,026 $ 133,172 $ 99,641
State tax expense, net of federal benefit ...........................................
.
6,826 2,473 6,477
Non-deductible goodwill ..................................................................
.
― ― 7,437
Tax-exempt income..........................................................................
.
(4,284) (3,786) (3,915)
Tax credits........................................................................................
.
(9,500) (4,878) (6,000)
Differences between statutory rate and foreign effective tax rate.....
.
(47,622) (24,816) (9,487)
Change in deferred tax asset valuation allowance ............................
.
(1,238) 11,856 ―
Other, net..........................................................................................
.
1,039 127 (863)
$ 158,247 $ 114,148 $ 93,290