EXPERIENCEBUSINESS - Harley-Davidson

HARLEY- DAVIDSON, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
6. INCOME TAXES
Provision for income taxes consists of the following:
(In thousands)
2000 1999 1998
Current:
Federal $171,405 $117,612 $ 99,567
State 19,345 15,890 13,325
Foreign 8,730 8,697 8,647
199,480 142,199 121,539
Deferred:
Federal 1,088 9,899 979
State 329 1,788 282
Foreign (54) (294) (71)
1,363 11,393 1,190
Total $200,843 $153,592 $122,729
The provision for income taxes differs from the amount
that would be provided by applying the statutory U.S.
corporate income tax rate due to the following items:
Deferred income taxes result from temporary differences
between the recognition of revenues and expenses for financial
statements and income tax returns. The principal components
of the Company’s deferred tax assets and liabilities as of
December 31 include the following:
(In thousands)
2000 1999
Deferred tax assets:
Accruals not yet tax deductible $41,493 $37,470
Pension and postretirement
health care benefit obligation 35,402 32,298
Other, net 2,387 120
79,282 69,888
Deferred tax liabilities:
Depreciation, tax in excess of book (36,141) (31,567)
Pension obligation (7,005) (10,460)
Other, net (23,489) (10,458)
(66,635) (52,485)
Net deferred tax asset $12,647 $17,403
(In thousands)
2000 1999 1998
Provision at statutory rate 35.0% 35.0% 35.0%
Goodwill write-off/amortization 1.1 .3 .3
Foreign income taxes 0.4 .6 .8
Foreign tax credits (0.4) (.6) (.8)
State taxes, net of federal benefit 1.7 2.8 2.9
Foreign sales corporation (0.7) (.9) (.7)
Other (0.5) (.7) (1.0)
Provision for income taxes 36.6% 36.5% 36.5%
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