The income tax provision consisted of the following:

(Dollars in thousands)	2002			2001			2000
Current:
Federal	$	114,420		$	66,074		$	71,407
State		14,181			12,904			22,616
Foreign		29,127			33,122			29,763
Deferred		9,994			196			(81,814	)
Total provision for income taxes	$	167,722		$	112,296		$	41,972

The components of earnings from continuing operations before income taxes consisted of the following:

(Dollars in thousands)	2002			2001			2000
North America	$	352,645		$	176,711		$	6,710
International		126,560			137,242			83,577
Total	$	479,205		$	313,953		$	90,287

The tax-effected components of deferred income tax assets and liabilities consisted of the following:

(Dollars in thousands)	December 28, 2002			December 29, 2001
Self-insurance accruals	$	26,049		$	28,020
Inventory		34,125			25,150
Vacation pay and other
accrued compensation		31,558			29,670
Reserve for bad debts		4,585			12,724
Reserve for facility closings		52,637			56,151
Merger costs		4,934			5,304
Unrealized loss on investments		20,279			19,266
Foreign and state net operating
loss carryforwards		86,281			88,006
Other items, net		39,545			23,451
Gross deferred tax assets		299,993			287,742
Valuation allowance		(86,281	)		(72,605	)
Deferred tax assets		213,712			215,137
Basis difference in fixed assets		81,016			71,880
Capitalized leases		5,417			5,573
Excess of tax over book amortization		3,356			3,641
Other items, net		1,730			1,856
Deferred tax liabilities		91,519			82,950
Net deferred tax assets	$	122,193		$	132,187

As of December 28, 2002, we had approximately $148 million of foreign and $751 million of state net operating loss carryforwards. Of these carryforwards, approximately $19 million will expire in 2003, $10 million will carry over indefinitely, and the balance will expire between 2004 and 2022. The valuation allowance has been developed to reduce our deferred tax asset to an amount that is more likely than not to be realized, and is based upon the uncertainty of the realization of certain foreign and state deferred tax assets relating to net operating loss carryforwards. Also, during 2002, we made an election that resulted in the utilization of acquired net operating losses associated with 4Sure.com. This election reduced deferred tax assets and increased goodwill (see Note E), with no impact on results of operations or current period cash flow. This and certain other non-cash items have been removed for cash flow presentation.

The following is a reconciliation of income taxes at the Federal statutory rate to the provision for income taxes:

(Dollars in thousands)	2002			2001			2000
Federal tax computed
at the statutory rate	$	167,721		$	109,945		$	32,361
State taxes, net of
Federal benefit		8,526			13,333			6,899
Non-deductible
goodwill amortization		-			1,834			1,744
Foreign income taxed
at rates other than Federal		(12,656	)		(14,534	)		(1,822	)
Other items, net		4,131			1,718			2,790
Provision for income taxes	$	167,722		$	112,296		$	41,972