Comfort Inn 2003 Annual Report Download - page 39

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CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
13. Income Taxes
Income before income taxes was derived from the following:
Years ended December 31,
2003 2002 2001
(In thousands)
Income before income taxes:
Domestic operations ................................... $108,760 $93,418 $ 80,647
Foreign operations .................................... 3,647 2,400 (35,230)
Income before income taxes ................................. $112,407 $95,818 $ 45,417
The provisions for income taxes were as follows:
Years ended December 31,
2003 2002 2001
(In thousands)
Current tax expense
Federal ............................................... $44,040 $21,374 $30,890
State ................................................. 3,979 631 3,675
Foreign ............................................... 758 661 665
Deferred tax (benefit) expense
Federal ............................................... (7,306) 11,297 (3,602)
State ................................................. (942) 1,012 (597)
Foreign ............................................... 15 (1) 59
Income taxes ............................................... $40,544 $34,974 $31,090
Deferred tax assets (liabilities) were comprised of the following:
December 31,
2003 2002
(In thousands)
Depreciation and amortization ........................................ $(16,554) $(20,171)
Prepaid expenses ................................................... (11,478) (16,083)
Other ............................................................ (5,510) (4,379)
Gross deferred tax liabilities .......................................... (33,542) (40,633)
Foreign operations ................................................. 2,553 2,549
Accrued expenses .................................................. 8,307 6,239
Other ............................................................ 3,077 4,270
Gross deferred tax assets ............................................ 13,937 13,058
Net deferred tax liability ............................................. (19,605) (27,575)
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