Plantronics 2001 Annual Report Download - page 21

Pre-tax earnings of the foreign subsidiaries were $24.5 million, $28.1 million and $34.5 mil-
lion for fiscal years 1999, 2000 and 2001, respectively. Cumulative earnings of foreign sub-
sidiaries that have been permanently reinvested as of March 31, 2001 totaled $75.7 million.
The following is a reconciliation between statutory federal income taxes and the total provi-
sion for taxes on pre-tax income:
Fiscal Year Ended March 31,
(in thousands) 1999 2000 2001
Tax expense at statutory rate $27,847 $33,208 $35,753
Foreign operations taxed at different rates (3,609) (4,422) (7,451)
Foreign tax credit — — (2,097)
State taxes, net of federal benefit 1,263 1,572 1,900
Other, net 500 3 497
$26,001 $30,361 $28,602
Deferred tax liabilities (assets) represent the tax effects of temporary differences between
the carrying amounts of assets and liabilities for financial reporting and income tax purposes.
Significant components of our deferred tax liabilities and assets are as follows:
March 31,
(in thousands) 2000 2001
Deferred gains on sales of properties $ 2,350 $ 2,413
Unremitted earnings of certain subsidiaries 3,357 3,357
Other deferred tax liabilities 1,773 874
Gross deferred tax liabilities 7,480 6,644
Accruals and other reserves (6,182) (6,878)
Deferred state tax (386) (567)
Other deferred tax assets (539) (232)
Gross deferred tax assets (7,107) (7,677)
Total net deferred tax liabilities (assets) $ 373 $(1,033)
Plantronics 2001 Annual Report 17