NOTE 9. INCOME TAXES
The provision for taxes on income consists of:
|
YEARS
ENDED MARCH 31, |
| (In thousands) |
1998 |
1997 |
1996 |
|
|
Federal:
Current
Deferred |
$45,808
(3,880) |
$40,901
(200) |
$64,917
(7,004) |
|
|
|
41,928 |
40,701 |
57,913 |
|
|
State:
Current
Deferred |
9,285
(311) |
12,073
(1,483) |
10,343
(363) |
|
|
|
8,974 |
10,590 |
9,980 |
|
|
Foreign:
Current |
5,826 |
4,091 |
1,555 |
|
|
| Total |
$56,728 |
$55,382 |
$69,448 |
|
|
The tax benefits associated with the disqualifying dispositions of stock options or
employee stock purchase plan shares reduce taxes currently payable by $16.1 million, $16.7
million, and $7.9 million for 1998, 1997, and 1996, respectively. Such benefits are
credited to additional paid-in capital when realized. Pretax income from foreign
operations was $55.5 million, $36.1 million and $11.5 million for fiscal years 1998, 1997
and 1996, respectively. 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 $32.9 million as of March 31, 1998. The residual US tax
liability, if such amounts were remitted, would be approximately $8.2 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) |
1998 |
1997 |
1996 |
|
|
Income before provision for taxes
Federal statutory tax rate
Computed expected tax
State taxes net of federal benefit
Tax exempt interest
Write-off of NeoCAD in-process technology
Foreign earnings at lower tax rates
Research and development tax credit
Other |
$180,596
35%
$ 63,209
5,833
(4,003)
--
(4,586)
(3,007)
(718) |
$165,758
35%
$ 58,016
6,884
(3,278)
--
(2,478)
(2,522)
(1,240) |
$170,902
35%
$ 59,816
6,487
(2,552)
7,069
(1,057)
--
(315) |
|
|
| Provision for taxes on income |
$ 56,728 |
$ 55,382 |
$ 69,448 |
|
|
The major components of deferred tax assets and liabilities consist of the following:
|
YEARS
ENDED MARCH 31, |
| (In thousands) |
1998 |
1997 |
1996 |
|
|
Deferred tax assets:
Inventory valuation differences
Deferred income on shipments to distributors
Nondeductible accrued expenses
Other |
$ 7,846
23,431
6,904
326 |
$12,471
15,808
7,568
3,156 |
$ 3,887
15,917
7,778
2,773 |
|
|
| Total |
38,507 |
39,003 |
30,355 |
|
|
Deferred tax liabilities:
Depreciation and amortization
Unremitted foreign earnings
Other |
763
(16,032)
(137) |
(4,026)
(7,601)
(716) |
(3,082)
(1,876)
(264) |
|
|
| Total net deferred tax assets |
$23,101 |
$26,660 |
$25,133 |
|
|
Return to Notes to Consolidated
Financial Statements
|
|
