note 8

The provision for taxes on income consists of:
		*Years ended March 31,*
*In thousands*		1997	1996	1995

Federal:
	Current	$40,901	$64,917	$34,698
	Deferred	(200)	(7,004)	(5,009)
		40,701	57,913	29,689
State:
	Current	12,073	10,343	6,748
	Deferred	(1,483)	(363)	(1,167)
		10,590	9,980	5,581
Foreign:
	Current	4,091	1,555	297
Total		$55,382	$69,448	$35,567

The tax benefits associated with the disqualifying dispositions of stock options or employee stock purchase plan shares reduce taxes currently payable by $16.7 million, $7.9 million and $3.5 million for 1997, 1996, and 1995, respectively. Such benefits are credited to additional paid-in capital when realized. Pretax income from foreign operations was $36.1 million and $11.5 million for fiscal years 1997 and 1996 while fiscal year 1995 had a loss of $.2 million. Unremitted foreign earnings that are considered to be permanently invested outside the United States and on which no deferred taxes have been provided, accumulated to approximately $14.8 million. The residual U.S. tax liability, if such amounts were remitted, would be approximately $3.7 million.

The provision for income taxes reconciles to the amount obtained by applying the Federal statutory income tax rate to income before provision for taxes as follows:
			*Years ended March 31,*
*In thousands*		1997		1996	1995

Income before provision for taxes		$165,758		$170,902	$94,845
Federal statutory tax rate		35%		35%	35%
Computed expected tax		$ 58,016		$ 59,816	$33,196
State taxes net of federal benefit		6,884		6,487	3,627
Tax exempt interest		(3,278)		(2,552)	(1,155)
Write-off of NeoCAD in-process technology		--		7,069	--
Foreign earnings at lower tax rates		(2,478)		(1,057)	--
Research and development tax credit		(2,522)		--	--
Other		(1,240)		(315)	(101)
Provision for taxes on income		$ 55,382		$ 69,448	$35,567

The major components of deferred tax assets and liabilities consist of the following:
			*Years ended March 31,*
*In thousands*		1997		1996	1995

Deferred tax assets:
	Inventory valuation differences	$12,471		$ 3,887	$ 3,393
	Deferred income on shipments to distributors	15,808		15,917	9,232
	Nondeductible accrued expenses	7,568		7,778	6,245
	Other	3,156		2,773	1,000
	Total	39,003		30,355	19,870
Deferred tax liabilities:
	Depreciation and amortization	(4,026)		(3,082)	1,524
	Unremitted foreign earnings	(7,601)		(1,876)	--
	Other	(716)		(264)	(483)
Total net deferred tax assets		$26,660		$25,133	$20,911