Henry Schein 2003 Annual Report Download - page 51

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HENRY SCHEIN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data)
Note 9– Taxes on Income (Continued)
The tax effects of temporary differences that give rise to our deferred tax asset (liability) were as follows:
December 27, December 28,
2003 2002
Current deferred tax assets:
Inventory, premium coupon redemptions and accounts receivable
valuation allowances $17,021 $18,991
Uniform capitalization adjustments to inventories 4,365 3,473
Other accrued liabilities 9,173 7,455
Total current deferred tax asset 30,559 29,919
Non-current deferred tax asset (liability):
Property and equipment (18,980) (14,590)
Provision for other long-term liabilities (26,593) (17,723)
Net operating loss carryforward 1,981 1,318
Net operating losses of foreign subsidiaries 15,552 11,221
Total non-current deferred tax liability (28,040) (19,774)
Valuation allowance for non-current deferred tax assets (1) (698) (1,842)
Net non-current deferred tax liability (28,738) (21,616)
Net deferred tax asset $ 1,821 $ 8,303
(1) Primarily relates to operating losses of foreign subsidiaries.
The net deferred tax asset is realizable as we have sufficient taxable income in prior years to realize the tax benefit for deductible
temporary differences. The non-current deferred tax liability is included in "Other liabilities" on the accompanying consolidated balance
sheets.
As of December 27, 2003, we have domestic unconsolidated net operating loss carry forwards of $5.0 million, which are available to offset
future federal taxable income through 2023. Foreign net operating losses totaled $43.5 million as of December 27, 2003. Such losses
can be utilized against future foreign income and have an indefinite life.
The tax provisions differ from the amount computed using the federal statutory income tax rate as follows:
Years ended
December 27, December 28, December 29,
2003 2002 2001
Income tax provision at federal statutory rate $79,020 $66,652 $49,122
State income taxes, net of federal income tax effect 7,684 5,897 2,626
Change in valuation reserve and other (2,326) (2,039) 182
Total income tax provision $84,378 $70,510 $51,930
49