Plantronics 2002 Annual Report Download - page 44

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6 . I N C O M E TA X E S
Income tax expense for fiscal 2000, 2001 and 2002 consisted of the following:
Fiscal Year Ended M arch 31 ,
(in th o u sands) 2000 2001 2002
C u r r e n t :
F e d e r a l $2 9 , 1 3 0 $ 2 3 , 1 3 2 $ 2,782
S t a t e 2 , 4 1 9 1 , 9 0 0 (2,310)
F o r e i g n 5 , 3 0 5 4 , 9 7 6 5,446
D e f e r r e d :
F e d e r a l (6,349) (1,371) 940
S t a t e (144) (35) 94
$3 0 , 3 6 1 $ 2 8 , 6 0 2 $ 6,952
Pre-tax earnings of the foreign subsidiaries were $28.1 million, $34.5 million and $24.0 million
for fiscal years 2000, 2001 and 2002, respectively. Cumulative earnings of foreign subsidiaries
that have been permanently reinvested as of March 31, 2002 totaled $116 million.
T he following is a reconciliation between statutory federal income taxes and the total
provision for taxes on pre-tax income:
Fiscal Year End ed M arch 3 1 ,
(in th o u sands) 2000 2001 2002
Tax expense at statutory rate $3 3 , 2 0 8 $ 3 5 , 7 5 3 $ 15,120
Foreign operations taxed at different rates ( 4 , 4 2 2 ) ( 7 , 4 5 1 ) (2,956)
Foreign tax credit — ( 2 , 0 9 7 ) (181)
State taxes, net of federal benefit 1 , 5 7 2 1 , 9 0 0 273
R&D credit ( 4 6 0 ) ( 6 4 0 ) (3,049)
Favorable tax assessment — — (2,562)
O t h e r, net 4 6 3 1 , 1 3 7 307
$3 0 , 3 6 1 $ 2 8 , 6 0 2 $ 6,952
Deferred tax assets and liabilities represent the tax effects of temporary diff e r e n c e s
b e t w e e n the carrying amounts of assets and liabilities for financial reporting and income tax
p u r p o s e s. Significant components of our deferred tax assets and liabilities are as follows:
M a r ch 3 1 ,
(in th o u sands) 2001 2002
Current assets (liabilities):
Accruals and other reserves $6 , 8 7 8 $ 4,790
Other deferred tax assets 2 3 2 1,076
$7 , 1 1 0 $ 5,866
Non-current assets (liabilities):
Deferred gains on sales of properties $( 2 , 4 1 3 ) $(2,413)
Unremitted earnings of certain subsidiaries ( 3 , 3 5 7 ) (3,064)
Deferred state tax 567 730
Other deferred tax liabilities (874) (2,418)
(6 , 0 7 7 ) (7,165)
Total net deferred tax (liabilities) assets $1 , 0 3 3 $(1,299)
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