Audiovox 2006 Annual Report Download - page 74

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Audiovox Corporation and Subsidiaries
Notes to Consolidated Financial Statements, continued
February 28, 2007
(Dollars in thousands, except share and per-share data)
The (benefit) provision for income taxes is comprised of the following:
Years
Ended
February 28,
2007
Three
Months
Ended
February 28,
2006
Years ended
November 30,
2005 2004
Current provision (benefit)
Federal................................... ($2,751) ($4,191) ($ 8,599) ($1,802)
State ..................................... 285 77 (542) (256)
Foreign .................................. 326 (688) 836 868
Total current provision (benefit)............... ($2,140) ($4,802) ($ 8,305) ($1,190)
Deferred provision (benefit)
Federal................................... $ 122 $2,946 ($ 3,385) $1,464
State ..................................... (63) 13 306 177
Foreign .................................. 547 — (25) 28
Total deferred provision (benefit).............. $ 606 $2,959 ($ 3,104) $1,669
Total provision (benefit)
Federal................................... ($2,629) ($1,245) ($11,984) ($ 338)
State ..................................... 222 90 (236) (79)
Foreign .................................. 873 (688) 811 896
Total provision (benefit)...................... ($1,534) ($1,843) ($11,409) $ 479
The effective tax rate before income taxes and minority interest varies from the current statutory
federal income tax rate as follows:
Year
Ended
February 28,
2007
Three
Months
Ended
February 28,
2006
Years ended
November 30,
2005 2004
Tax provision at Federal statutory rates . . $ 755 35.0%$ (517) (35.0)%$ (6,333) (35.0)%$454 35.0%
Tax exempt interest ................ (2,146) (99.4) (384) (26.0) (1,174) (6.5) — —
State income taxes, net of Federal
benefit........................ 23 1.1 40 2.8 (352) (1.9) (86) (6.6)
Increase (decrease) in valuation
allowance ..................... 6 0.3 18 1.2 1,338 7.4 6 0.4
Change in tax reserves .............. 61 2.8 (706) (47.8) (1,524) (8.4) — —
Foreign tax credit ................. — — (89) (6.0) (2,308) (12.8) — —
Foreign tax rate differential .......... — — (208) (14.1) 35 0.2 53 4.1
Benefit for prior year refunds ......... (378) (17.5) — — — — — —
Permanent differences and other ....... 145 6.7 3 — (1,091) (6.0) 52 4.0
Effective tax rate.................. $(1,534) (71.0)%$(1,843) (124.9)%$(11,409) (63.0)%$479 36.9%
Other is a combination of various factors, including changes in the taxable income or loss
between various tax entities with differing effective tax rates, changes in the allocation and
apportionment factors between taxable jurisdictions with differing tax rates of each tax entity,
changes in tax rates and other legislation in the various jurisdictions, and other items.
F-34