|
notes to consolidated financial statements
Income from continuing operations before income taxes and equity in
earnings of Henkel-Ecolab consisted of:
| 2003 |
2002 |
2001 |
 |
|
|
|
| Domestic |
$286,003 |
$258,779 |
$249,026 |
| Foreign |
162,415 |
93,192 |
40,719 |
|
| Total |
$448,418 |
$351,971 |
$289,745 |
|
The provision for income taxes consisted of:
| 2003 |
2002 |
2001 |
|
|
|
|
| Federal and state |
$ 78,928 |
$ 59,601 |
$107,055 |
| Foreign |
49,687 |
30,557 |
13,303 |
|
| Currently payable |
128,615 |
90,158 |
120,358 |
|
Federal and state |
33,178 |
43,974 |
(1,940) |
| Foreign |
9,277 |
5,949 |
(1,010) |
|
| Deferred |
42,455 |
49,923 |
(2,950) |
|
Provision for income taxes |
$171,070 |
$140,081 |
$117,408 |
|
The company's overall net deferred tax assets and deferred tax liabilities were comprised of the following:
| 2003 |
2002 |
2001 |
|
|
|
|
| Deferred tax assets |
|
|
| Postretirement health care and pension benefits |
$ 1,008 |
$ 19,249 |
$ 47,792 |
| Other accrued liabilities |
53,924 |
52,399 |
55,758 |
| Loss carryforwards |
11,756 |
13,932 |
18,679 |
| Other, net |
27,856 |
28,090 |
17,552 |
| Valuation allowance |
(2,719) |
(1,462) |
(1,462) |
|
| Total |
91,825 |
112,208 |
138,319 |
|
Deferred tax liabilities |
|
|
| Property, plant and equipment basis differences |
61,062 |
53,320 |
40,956 |
| Intangible assets |
49,465 |
38,696 |
26,381 |
| Other, net |
4,714 |
3,273 |
5,403 |
|
| Total |
115,241 |
95,289 |
72,740 |
|
Net deferred tax assets (liabilities) |
$ (23,416) |
$ 16,919 |
$ 65,579 |
|
A reconciliation of the statutory U.S. federal income tax rate to the company's effective income tax rate was:
| 2003 |
2002 |
2001 |
|
|
|
|
| Statutory U.S. rate |
35.0% |
35.0% |
35.0% |
| State income taxes, net of federal benefit |
2.7 |
3.2 |
4.2 |
| Foreign operations |
0.5 |
1.0 |
--- |
| Other, net |
(0.1) |
0.6 |
1.3 |
|
| Effective income tax rate |
38.1% |
39.8% |
40.5% |
|
Cash paid for income taxes was approximately $90 million in
2003, $95 million in 2002 and $99 million in 2001.
No provision has been made for income taxes on the undistributed
earnings of foreign subsidiaries. In the event of a distribution of these
earnings, foreign tax credits would be available to substantially offset
any amount of applicable income tax and foreign withholding taxes that
might be payable on these earnings.
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