Avid 2004 Annual Report Download - page 69

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55
2004
2003
2002
Income before income taxes:
United States
$55,811
$27,105
$7,288
Foreign
14,278
14,334
(2,589)
Total income before income taxes
$70,089
$41,439
$4,699
Provisions for (benefit from) income taxes:
Current tax expense (benefit):
Federal
$630
$250
($459)
State
125
200
200
Foreign benefit of net operating losses
(1,541)
–
–
Other Foreign
488
381
1,927
Total current tax expense (benefit)
(298)
831
1,668
Deferred tax expense (benefit):
Federal
–
–
–
State
–
–
–
Foreign benefit of net operating losses
(2,269)
–
–
Other Foreign
955
(281)
32
Total deferred tax expense (benefit)
(1,314)
(281)
32
Total provision for (benefit from) income taxes
($1,612)
$550
$1,700
Net cash payments for (refunds of) income taxes in 2004, 2003 and 2002 were approximately ($1.3 million), $0.2 million
and $3.9 million respectively.
The cumulative amount of undistributed earnings of subsidiaries, which is intended to be permanently reinvested and for
which U.S. income taxes have not been provided, totaled approximately $50.8 million at December 31, 2004.
Net deferred tax assets are comprised of the following (in thousands):
December 31,
2004
2003
Deferred tax assets:
Tax credit and net operating loss carryforwards
$86,918
$78,138
Allowances for bad debts
614
752
Difference in accounting for:
Revenue
6,186
4,651
Costs and expenses
17,793
17,352
Inventories
3,701
3,876
Acquired intangible assets
49,355
55,099
Other
74
–
Gross deferred tax assets
164,641
159,868
Valuation allowance
(140,785)
(153,220)
Deferred tax assets after valuation allowance
23,856
6,648
Deferred tax liabilities:
Difference in accounting for:
Revenue
(414)
(414)
Costs and expenses
(2,673)
(1,103)
Inventories
(340)
(465)
Acquired intangible assets
(14,508)
–
Other
(2,624)
(3,634)
Gross deferred tax liabilities
(20,559)
(5,616)
Net deferred tax assets
$3,297
$1,032