Garmin 2003 Annual Report Download - page 57

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56
7. Income Taxes
The Company’s income tax provision (benefit) consists of the following:
The income tax provision differs from the amount computed by applying the statutory federal income tax rate to income
before taxes. The sources and tax effects of the differences are as follows:
The Company’s income before income taxes attributable to non-U.S. operations was $202,390, $146,804, and $120,550, for
the years ended December 27, 2003, December 28, 2002, and December 29, 2001, respectively. The tax incentives and credits
received from Taiwan included in the table above reflect $0.38, $0.10, and $0.03 per weighted-average common share outstanding for
the years ended December 27, 2003, December 28, 2002, and December 29, 2001, respectively. The Company currently expects to
benefit from the incentives and credits being offered by Taiwan through 2008, at which time these tax benefits expire.
Fiscal Year Ended
December 27, December 28, December 29,
2003 2002 2001
Federal:
Current $17,066 $18,576 $10,208
Deferred (2,486) (1,639) (338)
14,580 16,937 9,870
State:
Current 849 (1,035) 2,237
Deferred (1,379) (328) (74)
(530) (1,363) 2,163
Foreign:
Current 33,599 22,969 28,165
Deferred (340) 1,394 (1,611)
33,259 24,363 26,554
Total $47,309 $39,937 $38,587
Fiscal Year Ended
December 27, December 28, December 29,
2003 2002 2001
Federal income tax expense at
U.S. statutory rate $79,080 $63,957 $53,212
State income tax expense, net of
federal tax effect 626 886 1,406
Foreign tax rate differential (21,038) (16,759) (13,640)
Taiwan surtax, tax incentives
and credits (21,161) (10,757) (3,260)
Other, net 9,802 2,610 869
Income tax expense $47,309 $39,937 $38,587