Home » Financials » 2003 Annual Report
Notes to Consolidated Financial Statements
Notes Nine: INCOME TAXES |
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The provision for income taxes included the following for the years ended November 30:
Deferred income tax assets and (liabilities) consisted of the following as of November 30:
As of November 30, 2003, the Company had foreign Net operating loss carry-overs of approximately $38,600,000. The valuation allowance for deferred income tax assets, which relates primarily to foreign Net operating loss carry-overs and net deductible temporary differences, increased by $2,288,000 in 2003 and by $4,092,000 in 2002. The tax provision represents effective tax rates of 32%, 34% and 28% of income before income taxes for the years ended November 30, 2003, 2002 and 2001, respectively. A reconciliation of income taxes provided at the effective income tax rate and the amount computed at the federal statutory income tax rate of 35% is as follows for the years ended November 30:
In 2001, the U.S. Internal Revenue Service ("IRS") completed the examination of the Company's 1993 through 1995 federal income tax returns and issued an assessment. The Company agreed with the IRS regarding the assessment. The assessment was not material to the Company's financial statements and was paid in 2002. The 1996 through 1998 federal income tax returns are currently under examination by the IRS. No assessments have been issued to date. Although it cannot predict with certainty the ultimate outcome of this examination , the Company believes it has adequately provided for any potential liabilities that may result. In 2001, the Company filed federal and state income tax claims for research and development credits for tax years 1990 through 2000. The claims are currently under IRS examination. Appropriate U.S. and foreign income taxes have been provided for earnings of foreign subsidiary companies that are expected to be remitted in the near future. The cumulative amount of undistributed earnings of foreign subsidiaries that Ameron intends to permanently invest and up on which no deferred U.S. income taxes have been provided is $65,756,000 at November 30, 2003. The additional U.S. income tax on the unremitted foreign earnings, if repatriated, would be offset in whole or in part by foreign tax credits. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
