Electronic Arts 2001 Annual Report Download - page 61

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ELECTRONIC ARTS
59
(15) INCOME TAXES
The Company’s pretax income (loss) from operations for the fiscal years ended March 31, 2001, 2000 and 1999
consisted of the following components:
(In thousands)
2001 2000 1999
Domestic $ (27,166) $ 104,096 $ 79,789
Foreign 13,736 65,718 38,669
Total pretax income (loss) $ (13,430) $ 169,814 $ 118,458
Income tax expense (benefit) for the fiscal years ended March 31, 2001, 2000 and 1999 consisted of:
(In thousands)
Current Deferred Total
2001:
Federal $ (4,233) $ (19,975) $ (24,208)
State 582 (13,809) (13,227)
Foreign 6,981 541 7,522
Charge in lieu of taxes from employee stock plans
for Class A 25,750 – 25,750
$ 29,080 $ (33,243) $ (4,163)
2000:
Federal $ 2,766 $ 3,231 $ 5,997
State 299 859 1,158
Foreign 15,573 (2,649) 12,924
Charge in lieu of taxes from employee stock plans 32,563 – 32,563
$ 51,201 $ 1,441 $ 52,642
1999:
Federal $ 31,204 $ (10,340) $ 20,864
State 4,401 (2,590) 1,811
Foreign 15,715 1,410 17,125
Charge in lieu of taxes from employee stock plans 5,614 – 5,614
$ 56,934 $ (11,520) $ 45,414
The components of the net deferred tax assets as of March 31, 2001 and 2000 consist of:
(In thousands)
2001 2000
Deferred tax assets:
Accruals, reserves and other expenses $ 110,331 $ 70,131
Total 110,331 70,131
Deferred tax liabilities:
Undistributed earnings of DISC (1,189) (1,487)
Prepaid royalty expenses (44,678) (38,562)
Fixed assets (4,456) (3,249)
Unrealized gains on marketable securities –(68)
Total (50,323) (43,366)
Net deferred tax asset $ 60,008 $ 26,765