|
CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
13. Income Taxes
Income before income taxes was derived from the following:
| |
Years ended December 31, |
 |
|
| |
2003 |
|
2002 |
|
2001 |
|
|
|
|
| |
(In thousands) |
| Income before income taxes: |
| Domestic operations |
$ |
108,760 |
|
$ |
93,418 |
|
$ |
80,647 |
|
| Foreign operations |
|
3,647 |
|
|
2,400 |
|
|
(35,230 |
) |
|
|
|
|
| Income before income taxes |
$ |
112,407 |
|
$ |
95,818 |
|
$ |
45,417 |
|
|
|
|
|
|
|
|
|
|
| |
| provisions for income taxes were as follows: |
| |
Years ended December 31, |
|
|
| |
2003 |
2002 |
2001 |
|
|
|
|
| |
(In thousands) |
| Current tax expense |
|
|
|
|
|
|
|
|
|
| Federal |
$ |
44,040 |
|
$ |
21,374 |
|
$ |
30,890 |
|
| State |
|
3,979 |
|
|
631 |
|
|
3,675 |
|
| Foreign |
|
758 |
|
|
661 |
|
|
665 |
|
| Deferred tax (benefit) expense |
| Federal |
|
(7,306 |
) |
|
11,297 |
|
|
(3,602 |
) |
| State |
|
(942 |
) |
|
1,012 |
|
|
(597 |
) |
| Foreign |
|
15 |
|
|
(1 |
) |
|
59 |
|
|
|
|
|
| Income taxes |
$ |
40,544 |
|
$ |
34,974 |
|
$ |
31,090 |
|
|
|
|
|
|
|
|
|
Deferred tax assets (liabilities) were comprised of the following:
| |
December 31, |
|
|
| |
2003 |
|
2002 |
|
|
|
| |
(In thousands) |
| Depreciation and amortization |
$ |
(16,554 |
) |
$ |
(20,171 |
) |
| Prepaid expenses |
|
(11,478 |
) |
|
(16,083 |
) |
| Other |
|
(5,510 |
) |
|
(4,379 |
) |
|
|
|
| Gross deferred tax liabilities |
|
(33,542 |
) |
|
(40,633 |
) |
|
|
|
| Foreign operations |
|
2,553 |
|
|
2,549 |
|
| Accrued expenses |
|
8,307 |
|
|
6,239 |
|
| Other |
|
3,077 |
|
|
4,270 |
|
|
|
|
| Gross deferred tax assets |
|
13,937 |
|
|
13,058 |
|
|
|
|
| Net deferred tax liability |
|
(19,605 |
) |
|
(27,575 |
) |
|
|
|
|
|
|
|
|
