Circuit City 2005 Annual Report Download - page 60

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The provision (benefit) for income taxes consists of the following (in thousands):
Years Ended December 31 2005 2004 2003
Current:
Federal
$
$
8,622
$
5,247
State
3,146
565
709
Foreign
1,560
(442
)
1,214
Total current
8,745
7,170
Deferred:
Federal
(265
)
725
1,934
State
(490
)
(899
)
(864
)
Foreign
6,983
(2,203
)
(3,886
)
Total deferred
6,228
(2,377
)
(2,816
)
TOTAL
$
$
6,368
$
4,354
Income taxes are accrued and paid by each foreign entity in accordance with applicable local regulations.
A reconciliation of the difference between the income tax expense (benefit) and the computed income tax
expense based on the Federal statutory corporate rate is as follows (in thousands):
Years Ended December 31 2005 2004 2003
Income tax at Federal statutory rate
$
11,506
$
5,795
$
2,646
State and local income taxes (benefits) and
changes in valuation allowances, net of
1,311
(172
)
(100
)
federal tax benefit
Foreign taxes at rates different from the U.S. rate
1,703
2,375
434
Changes in valuation allowances for foreign
deferred tax assets
10,194
Non
-
deductible goodwill impairment
900
Tax credits
(197
)
(599
)
(660
)
Adjustment for prior year taxes
(3,205
)
(588
)
1,311
Other items, net
121
(443
)
(177
)
$
21,433
$
6,368
$
4,354
The deferred tax assets (liabilities) are comprised of the following (in thousands):
2005 2004
Current:
Deductible assets
$
(1,197
)
$
(699
)
Accrued expenses and other liabilities
9,875
9,885
Non
-
deductible assets
1,201
1,179
Other
(125
)
(358
)
Valuation allowances
(527
)
(413
)
Total current
9,227
9,594
Non
-
current:
Net operating loss and credit carryforwards
17,419
Foreign currency translation adjustments
(511
)
(2,816
)