National Oilwell Varco 2003 Annual Report Download - page 48

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47
10. Income Taxes
The domestic and foreign components of income before income taxes were as follows (in
thousands):
December 31,
2003
December 31,
2002
December 31,
2001
Domestic 19,051$ 45,716$ 101,700$
Foreign 97,600 67,622 66,317
116,651$ 113,338$ 168,017$
The components of the provision for income taxes consisted of (in thousands):
December 31,
2003
December 31,
2002
December 31,
2001
Current:
Federal 3,349$ 11,315$ 32,222$
State 935 909 581
Foreign 22,561 15,726 23,304
26,845 27,950 56,107
Deferred:
Federal 716 4,888 4,925
State 1,666 1,144 391
Foreign 4,458 5,414 2,531
6,840 11,446 7,847
33,685$ 39,39
6
$ 63,954$
The difference between the effective tax rate reflected in the provision for income taxes and
the U.S. federal statutory rate was as follows (in thousands):
December 31,
2003
December 31,
2002
December 31,
2001
Federal income tax at statutory rate 40,828$ 39,668$ 58,806$
Foreign income tax rate differential (7,873) (3,295) 1,405
State income tax, net of federal benefit 608 556 299
Tax benefit of foreign sales income (3,045) (1,580) (1,575)
Nondeductible expenses 1,646 1,053 2,423
Tax benefit of capital loss carryovers (765) - -
Foreign dividends net of FTCs (2,757) 1,176 (1,967)
Net operating loss carryforwards (708) - 2,948
Change in deferred tax valuation allowance 6,940 400 1,223
Prior year taxes (1,171) 1,126 -
Other (18) 292 392
33,685$ 39,396$ 63,954$