Netgear 2006 Annual Report Download - page 60

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Table of Contents
NETGEAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The provision for income taxes consists of the following (in thousands):
Net deferred tax assets consist of the following (in thousands):
Management’s judgment is required in determining the Company’s provision for income taxes, its deferred tax
assets and any valuation allowance recorded against its deferred tax assets. In management’s judgment it is more
likely than not that such assets will be realized in the future as of December 31, 2006, and as such no valuation
allowance has been recorded against the Company’s deferred tax assets.
56
Year Ended December 31,
2004
2005
2006
Current:
U.S. Federal
$
13,110
$
16,766
$
21,362
State
1,197
2,799
2,965
Foreign
1,033
1,658
6,719
15,340
21,223
31,046
Deferred:
U.S. Federal
(2,427
)
(860
)
(780
)
State
8
504
100
Foreign
—
—
(
2,499
)
(2,419
)
(356
)
(3,179
)
Total
$
12,921
$
20,867
$
27,867
December 31,
2005
2006
Deferred Tax Assets:
Accruals and allowances
$
11,503
$
13,302
Net operating loss carryforwards
—
859
Depreciation
328
801
Stock
-
based compensation
—
899
Other
—
113
11,831
15,974
Deferred Tax Liabilities:
Acquired intangible assets
—
(
395
)
Unremitted earnings of foreign subsidiaries
—
(
11
)
—
(
406
)
Net deferred tax assets
$
11,831
$
15,568
Current portion
$
11,503
$
13,415
Non
-
current portion
328
2,153
Net deferred tax assets
$
11,831
$
15,568