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GUESS?, Inc. and Subsidiaries
N O T E 8 . I N C O M E T A X E S
Income taxes are summarized as follows (in thousands):
Year Ended December 31,
2 0 0 0
1999
1998
Federal:
Current
$17,276
$32,508
$14,477
Deferred
(5,602)
(2,464)
793
State:
Current
3,594
5,202
2,459
Deferred
(1,127)
314
41
Foreign:
Current
(1,041)
(360)
410
$13,100
$35,200
$18,180
Actual income taxes differ from expected income taxes obtained by applying the statutory Federal income tax rate to earnings before
income taxes as follows (in thousands):
Year Ended December 31,
2 0 0 0
1999
1998
Computed "expected" tax expense
$10,357
$30,485
$15,152
State taxes, net of Federal benefit
2,210
3,586
1,625
Foreign taxes (benefit)
239
(273)
(14)
U.S. tax and foreign withholding
tax on Foreign distributions
--
--
739
Other
294
1,402
678
$13,100
$35,200
$18,180
Total income taxes were allocated as follows (in thousands):
Year Ended December 31,
2 0 0 0
1999
1998
Operations
$ 13,100
$35,200
$18,180
Stockholders' equity
(10,769)
6,451
--
Total income taxes
$ 2,331
$41,651
$18,180
The tax effects of temporary differences that give rise to significant portions of current and non-current deferred tax assets and deferred
tax liabilities at December 31, 2000 and 1999 are presented below (in thousands):
2 0 0 0
1999
Deferred tax assets:
Retail store closure reserves
$ 1,128
$
269
Deferred lease incentives
1,991
1,718
Rent expense
2,114
2,161
Uniform capitalization adjustment
3,008
2,194
State income taxes
367
1,471
Bad debt and other reserves
4,810
2,904
Severance reserve
--
1,378
Unrealized loss on investments
2,269
--
Other
6,640
2,602
Total deferred assets
22,327
14,697
Deferred tax liabilities
1,725
9,640
Net deferred tax assets
$20,602
$ 5,057
