Notes to Consolidated Financial Statements
The provision for income taxes is composed of the following
charges (benefits):
|
2002 |
|
2001 |
|
2000 |
|
|
| Current: |
| Domestic: |
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| Federal |
$ |
33,016 |
|
$ |
49,053 |
|
$ |
20,201 |
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| State and local, including |
| Puerto Rico |
|
7,900 |
|
|
7,728 |
|
|
13,843 |
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| Foreign |
|
50,489 |
|
|
44,167 |
|
|
55,747 |
|
|
|
|
91,405 |
|
|
100,948 |
|
|
89,791 |
|
|
|
| Deferred: |
| Domestic |
|
57,651 |
|
|
29,342 |
|
|
35,029 |
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| Foreign |
|
(449 |
) |
|
8,058 |
|
|
2,217 |
|
|
| |
|
57,202 |
|
|
37,400 |
|
|
37,246 |
|
|
|
$ |
148,607 |
|
$ |
138,348 |
|
$ |
127,037 |
|
|
In accordance with SFAS No. 109, "Accounting for Income
Taxes," deferred tax assets and liabilities are netted on the balance
sheet by separate tax jurisdictions. At September 30, 2002 and
2001, net current deferred tax assets of $71,362 and $64,121,
respectively, were included in Prepaid expenses, deferred taxes and
other. There were no net non-current deferred tax assets in 2002
and 2001. Net current deferred tax liabilities of $4,635 and $744,
respectively, were included in Current Liabilities-Income taxes. Net
non-current deferred tax liabilities of $77,249 and $57,318, respectively,
were included in Deferred Income Taxes and Other. Deferred
taxes are not provided on substantially all undistributed earnings
of foreign subsidiaries. At September 30, 2002, the cumulative
amount of such undistributed earnings approximated $1,614,000
against which substantial tax credits are available. Determining
the tax liability that would arise if these earnings were remitted is
not practicable.
Deferred income taxes at September 30 consisted of:
| |
2002 |
2001 |
2000 |
|
|
Assets |
Liabilities |
Assets |
Liabilities |
Assets |
Liabilities |
|
| Compensation and benefits |
$ |
161,574 |
|
$ |
- |
|
$ |
155,889 |
|
$ |
- |
|
$ |
158,167 |
|
$ |
- |
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| Property and equipment |
|
- |
|
|
124,718 |
|
|
- |
|
|
118,223 |
|
|
- |
|
|
109,419 |
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| Purchase acquisition adjustments |
|
- |
|
|
70,656 |
|
|
- |
|
|
87,603 |
|
|
- |
|
|
98,472 |
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| Other |
|
159,546 |
|
|
134,182 |
|
|
172,981 |
|
|
110,338 |
|
|
199,726 |
|
|
118,186 |
|
|
|
|
321,120 |
|
|
329,556 |
|
|
328,870 |
|
|
316,164 |
|
|
357,893 |
|
|
326,077 |
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| Valuation allowance |
|
(2,086 |
) |
|
- |
|
|
(6,647 |
) |
|
- |
|
|
(17,276 |
) |
|
- |
|
|
|
$ |
319,034 |
|
$ |
329,556 |
|
$ |
322,223 |
|
$ |
316,164 |
|
$ |
340,617 |
|
$ |
326,077 |
|
|
A reconciliation of the federal statutory tax rate to the
Company's effective tax rate follows:
|
2002 |
|
2001 |
|
2000 |
|
|
| Federal statutory tax rate |
|
35.0 |
% |
|
35.0 |
% |
|
35.0 |
% |
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| State and local income taxes, |
| net of federal tax benefit |
|
1.2 |
|
|
.6 |
|
|
.9 |
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| Effect of foreign and Puerto Rican |
| income and foreign tax credits |
|
(9.3 |
) |
|
(8.2 |
) |
|
(8.7 |
) |
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| Research tax credit |
|
(1.4 |
) |
|
(2.0 |
) |
|
(1.6 |
) |
![]() |
| Purchased in-process research |
| and development |
|
- |
|
|
- |
|
|
.3 |
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| Adjustments to estimated liability |
| for prior years' taxes |
|
- |
|
|
- |
|
|
(2.0 |
) |
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| Other, net |
|
(1.9 |
) |
|
(1.4 |
) |
|
.5 |
|
|
|
|
23.6 |
% |
|
24.0 |
% |
|
24.4 |
% |
|
|
The approximate dollar and diluted per-share amounts
of tax reductions related to tax holidays in various countries in
which the Company does business were: 2002-$40,860 and $.15;
2001-$43,275 and $.16; and 2000-$40,500 and $.15. The tax
holidays expire at various dates through 2018.
The Company made income tax payments, net of refunds,
of $52,603 in 2002, $53,498 in 2001, and $51,010 in 2000.
The components of Income Before Income Taxes and
Cumulative Effect of Change in Accounting Principle follow:
|
|
2002 |
|
2001 |
|
2000 |
|
|
| Domestic, including |
| Puerto Rico |
$ |
336,596 |
|
$ |
340,073 |
|
$ |
285,228 |
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| Foreign |
|
291,993 |
|
|
236,677 |
|
|
234,706 |
|
|
|
$ |
628,589 |
|
$ |
576,750 |
|
$ |
519,934 |
|
|
|
