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The components of the provision for income taxes are as follows:
(In Thousands) 2000 1999 1998 Current: U.S. Federal $78,384 $80,621 $62,823 State 8,226 9,098 10,049 Foreign 394 154 653 Total current 87,004 89,873 73,525 Deferred: U.S. Federal 6,464 (1,657) 4,080 State 696 (181) 440 Total deferred 7,160 (1,838) 4,520 Total provision for income taxes $94,164 $88,035 $78,045 |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The company believes that, based upon its lengthy and consistent history of profitable operations, it is probable that the net deferred tax assets of $70.6 million will be realized on future tax returns, primarily from the generation of future taxable income.
Significant components of the deferred income tax liabilities and assets were as follows:
(In Thousands) October 28, 2000 October 30, 1999 Deferred tax liabilities: Tax over book depreciation $(32,844) $(31,961) Prepaid pension (31,119) (26,620) Other, net (19,095) (19,690) Deferred tax assets: Vacation accrual 5,009 4,467 Insurance accruals 5,403 6,107 Deferred compensation 10,252 7,834 Postretirement benefits 97,746 97,792 Pension accrual 12,953 14,999 Other, net 22,338 16,649 Net deferred tax assets $ 70,643 $ 69,577 |
Reconciliation of the statutory federal income tax rate to the company's effective tax rate is as follows:
2000 1999 1998
U.S.statutory rate 35.0% 35.0% 35.0%
State taxes on income,
net of federal tax benefit 2.2 2.3 3.1
All other, net (1.6) (2.3) (2.2)
Effective tax rate 35.6% 35.0% 35.9%
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Total income taxes paid during fiscal 2000, 1999 and 1998 were $98.1 million, $76.4 million and $76.5 million, respectively.
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