content_image/83424.jpg content_image/83425.jpg content_image/83428.jpg
## 4 Property, Plant and Equipment 

At December 31, 2002 and 2001, property, plant and equipment was comprised of the following: 

<img src='content_image/83424.jpg'>

## 5 Alabama State Industrial Development Authority Financing and Economic Incentives 

In conjunction with an expansion of its Huntsville, Alabama, facility, ADTRAN was approved for participation in an incentive program offered by the State of Alabama Industrial Development Authority (the “Authority”). Pursuant to the program, on January 13, 1995, the Authority issued $20,000,000 of its taxable revenue bonds and loaned the proceeds from the sale of the bonds to ADTRAN. The bonds were originally purchased by AmSouth Bank of Alabama, Birmingham, Alabama, (the “Bank”). First Union National Bank of Tennessee, Nashville, Tennessee, (the “Bondholder”) purchased the original bonds from the Bank and made further advances to the Authority, bringing the total amount outstanding to $50,000,000. An Amended and Restated Taxable Revenue Bond (“Amended and Restated Bond”), was issued and the original financing agreement was amended. The Amended and Restated Bond bears interest, payable monthly. In 2002, the interest rate was 5%. The Amended and Restated Bond matures on January 1, 2020. ADTRAN is required to make payments to the Authority in amounts necessary to pay the principal of and interest on the Amended and Restated Bond. Included in long-term investments is $50,000,000, which is restricted money market funds, which serves as collateral deposit against the principal of this bond. In conjunction with this program, ADTRAN is eligible to receive certain economic incentives from the state of Alabama that reduce the amount of payroll withholdings that ADTRAN is required to remit to the state for those employment positions that qualify under the program. ADTRAN’s economic incentives realized for the years ended December 31, 2002, 2001 and 2000 were $1,156,000, $1,326,221 and $1,553,398, respectively. 

## 6 Income Taxes 

A summary of the components of the provision for income taxes for the years ended December 31, 2002, 2001 and 2000 is as follows: 

<img src='content_image/83425.jpg'>

The provision for income taxes differs from the amounts computed by applying the Federal statutory rate due to the following: 

<img src='content_image/83428.jpg'>

