Famous Footwear 2004 Annual Report Download - page 55

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Table of Contents
Notes to Consolidated Financial Statements (continued)
BROWN SHOE COMPANY, INC. 2003 FORM 10-K
The components of income tax provision (benefit) on earnings were as follows:
($ thousands) 2003 2002 2001
FEDERAL
Current $11,750 $6,705 $(4,536)
Deferred 6,673 5,458 (8,438)
18,423 12,163 (12,974)
STATE 837 2,573 (14)
FOREIGN (1,499) 1,591 3,719
Total income tax provision (benefit) $17,761 $16,327 $(9,269)
The Company made federal, state and foreign tax payments, net of refunds, of $12.9 million, $1.8 million and $12.5 million in fiscal 2003,
2002 and 2001, respectively.
The differences between the tax expense reflected in the financial statements and the amounts calculated at the federal statutory income tax
rate of 35% were as follows:
($ thousands) 2003 2002 2001
Income taxes at statutory rate $22,629 $21,525 $(4,631)
State income taxes, net of federal tax benefit 544 1,672 (9)
Foreign earnings taxed at lower rates (5,616) (7,874) (5,834)
Operating loss of majority-owned subsidiary
with no tax benefit 66 396 935
Other 138 608 270
Total income tax provision (benefit) $17,761 $16,327 $(9,269)
Significant components of the Company’s deferred income tax assets and liabilities were as follows:
($ thousands) January 31, 2004 February 1, 2003
Deferred Tax Assets
Employee benefits, compensation and insurance $8,412 $6,482
Accrued expenses 6,437 5,015
Foreign tax credit carryforwards 6,173 7,424
Postretirement and postemployment benefit plans 2,620 2,404
Allowance for doubtful accounts 2,525 2,244
Depreciation 2,463 2,240
Unrealized losses on derivative activities 1,567 1,868
Inventory capitalization and inventory reserves 999 5,441
Other 3,652 6,077
Total deferred tax assets 34,848 39,195
Deferred Tax Liabilities
Retirement plans (16,544) (15,640)
LIFO inventory valuation (14,051) (9,540)
Other (1,260) (4,057)
Total deferred tax liabilities (31,855) (29,237)