N O T E 6 - I n c o m e T
a x e s
The provision (benefit) for income taxes, relating to
continuing operations, consists of the following:
| |
|
|
|
|
|
|
| (Dollars in thousands) |
2000
|
1999
|
1998
|
 |
| Current: |
|
|
|
|
|
|
| Federal |
$
|
1,714
|
$
|
16,067
|
$
|
28,767
|
| State and local |
|
427
|
|
2,857
|
|
6,657
|
|
| |
|
2,141
|
|
18,924
|
|
35,424
|
| Deferred |
|
(19,655)
|
|
14,873
|
|
3,255
|
|
| Total |
$
|
(17,514)
|
$
|
33,797
|
$
|
38,679
|
|
The significant components of the deferred tax expense
(benefit) are as follows:
| |
|
|
|
|
|
|
| (Dollars in thousands) |
2000 |
1999 |
1998 |
|
| Depreciation |
$ |
3,929 |
$ |
4,114 |
$ |
2,609 |
| Goodwill impairment |
|
(19,379) |
|
- |
|
- |
| Restructuring |
|
(3,471) |
|
- |
|
- |
| Pension |
|
3,087 |
|
5,775 |
|
1,961 |
| Inventories |
|
44 |
|
459 |
|
(230) |
| Compensation and benefits |
|
(2,544) |
|
(483) |
|
(2,107) |
| Allowance for doubtful accounts |
|
(1,112) |
|
4,236 |
|
1,192 |
| Retiree health care benefits |
|
550 |
|
359 |
|
(132) |
| Litigation |
|
(805) |
|
- |
|
- |
| Other |
|
46 |
|
413 |
|
(38) |
|
| Total |
$ |
(19,655) |
$ |
14,873 |
$ |
3,255 |
|
The components of the current net deferred tax asset
and long-term net deferred tax liability as of December 31, 2000 and January
2, 2000 are as follows:
| |
|
|
|
|
| (Dollars in thousands) |
December 31,
2000
|
January 2,
2000
|
|
| Deferred tax asset: |
|
|
|
|
| Allowance for doubtful accounts |
$
|
2,512
|
$
|
1,400
|
| Inventories |
|
3,027
|
|
3,071
|
| Compensation and benefits |
|
11,678
|
|
9,134
|
| Restructuring |
|
3,471
|
|
-
|
| Litigation |
|
805
|
|
-
|
| Other |
|
280
|
|
115
|
|
| Total current |
$
|
21,773
|
$
|
13,720
|
|
| Deferred tax liability: |
|
|
|
|
| Depreciation |
$
|
30,164
|
$
|
26,235
|
| Goodwill impairment |
|
(19,379)
|
|
-
|
| Pension |
|
38,890
|
|
36,152
|
| Retiree health care benefits |
|
(21,259)
|
|
(21,809)
|
| Other |
|
211
|
|
-
|
|
| Total long-term |
$
|
28,627
|
$
|
40,578
|
|
The reconciliation of the statutory federal income tax
rate and the effective tax rate follows:
| |
|
|
|
| |
2000
|
1999
|
1998
|
|
| Statutory federal income tax rate |
(35.0)%
|
35.0%
|
35.0%
|
| State and local income taxes |
(5.3)
|
5.3
|
5.3
|
| Capital loss |
1.8
|
-
|
-
|
| Utilization ocapital loss carryover |
-
|
(2.3)
|
-
|
| Other |
1.0
|
(0.3)
|
0.1
|
|
| Effective tax rate |
(37.5)%
|
37.7%
|
40.4%
|
|
|
