Rayovac 2002 Annual Report Download - page 54

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40
41
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Rayovac Corporation and Subsidiaries
(In thousands, except per share amounts)
(9) Income Taxes
Pretax income (income before income taxes and extraordinary item) and income tax expense consist of the following:
2000 2001 2002
Pretax income (loss):
United States $30,383 $13,660 $47,288
Outside the United States 27,569 12,426 (1,605)
Total pretax income $57,952 $26,086 $45,683
Income tax expense (benefit):
Current:
Federal $ 7,850 $ 6,617 $10,484
Foreign 8,142 6,217 895
State 705 142 204
Total current 16,697 12,976 11,583
Deferred:
Federal 2,032 (1,977) 6,666
Foreign 731 (1,638) (2,374)
State 142 (136) 571
Total deferred 2,905 (3,751) 4,863
$19,602 $ 9,225 $16,446
In 2001, a tax benefit of $3,260 was recorded in conjunction with the loss on the early extinguishment of debt.
The following reconciles the Federal statutory income tax rate with the Company’s effective tax rate:
2000 2001 2002
Statutory Federal income tax rate 35.0% 35.0% 35.0%
Foreign Sales Corporation/Extraterritorial
Income Exclusion benefit (0.6) (1.4) (0.6)
Effect of foreign items and rate differentials (0.9) 0.8 (0.1)
State income taxes and other 1.0 1.3 1.5
Adjustment of prior year taxes (1.3) (1.4) 0.2
Other 0.6 1.1 0.0
33.8% 35.4% 36.0%