Audiovox 2004 Annual Report Download - page 93

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AUDIOVOX CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements, Continued
November 30, 2002, 2003 and 2004
(Dollars in thousands, except share and per share data)
Income tax expense (benefit) was allocated as follows:
November 30,
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
2002 2003 2004
−−−−−−− −−−−−−− −−−−−−−
Statement of operations $ 2,872 $ 7,303 $ 478
Stockholders' equity:
Unrealized holding gain (loss) on
investment securities recognized for
financial reporting purposes 260 1,063 (1,184)
Tax benefit of stock options exercised (17) (216) (227)
−−−−−−− −−−−−−− −−−−−−−
Income tax expense (benefit) $ 3,115 $ 8,150 $ (933)
======= ======= =======
The provision for (recovery of) income taxes is comprised of:
Federal Foreign State Total
2002:
Current $ 4,540 $ 107 $ 950 $ 5,597
Deferred (2,570) 155 (310) (2,725)
−−−−−−− −−−−−−− −−−−−−− −−−−−−−
$ 1,970 $ 262 $ 640 $ 2,872
======= ======= ======= =======
2003:
Current $ 7,552 $ 1,257 $ 353 $ 9,162
Deferred (1,782) 138 (215) (1,859)
−−−−−−− −−−−−−− −−−−−−− −−−−−−−
$ 5,770 $ 1,395 $ 138 $ 7,303
======= ======= ======= =======
2004:
Current $(1,802) $ 867 $ (256) $(1,191)
Deferred 1,464 28 177 1,669
−−−−−−− −−−−−−− −−−−−−− −−−−−−−
$ (338) $ 895 $ (79) $ 478
======= ======= ======= =======
A reconciliation of the provision for income taxes computed at the Federal
statutory rate to income (loss) before income taxes and minority interest
and the actual provision for income taxes is as follows:
November 30,
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
2002 2003 2004
−−−−−−−−−−−−−−−−−−−−−−−−−− −−−−−−−−−−−−−−−−−−−− −−−−−−−−−−−−−−−−−−−
Tax provision at Federal statutory rates $1,209 35.0% $5,117 35.0% $ 398 35.0%
State income taxes, net of Federal benefit 640 18.5 138 0.9 (86) (7.6)
Increase (decrease) in the valuation
allowance for deferred tax assets −− −− −− −− 6 0.6
Foreign tax rate differential 867 25.1 1,695 11.6 53 4.7
Permanent and other, net 156 4.5 353 2.5 107 9.4
−−−−−− −−−− −−−−−− −−−− −−−−−− −−−−−−
$2,872 83.1% $7,303 50.0% $ 478 42.1%
====== ===== ====== ====== ====== ======
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