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## NOTE 6– INCOME TAXES 

The provision for income taxes is comprised of the following: 

<img src='content_image/76817.jpg'>

Areconciliation between the provision for income taxes computed by applying the statutory Federal income tax rate to earnings before income taxes and minority interest and the actual provision for income taxes is as follows: 

<img src='content_image/76816.jpg'>

Significant components of the Company’s deferred income tax assets and liabilities as of June 30, 2003 and 2002 were as follows: 

<img src='content_image/76815.jpg'>

As of June 30, 2003 and 2002, the Company had current net deferred tax assets of $116.0 million and $112.4 mil- lion, respectively, which are included in prepaid expenses and other current assets in the accompanying consoli- dated balance sheets, and noncurrent net deferred tax assets of $38.7 million and $72.7 million, respectively. 

Federal income and foreign withholding taxes have not been provided on $476.6 million, $473.5 million and $476.4 million of undistributed earnings of international subsidiaries at June 30, 2003, 2002 and 2001, respectively. 

The Company intends to permanently reinvest these 

earnings in its foreign operations, except where it is able to repatriate these earnings to the United States without any material incremental tax provision. 

As of June 30, 2003 and 2002, certain international sub- sidiaries had tax loss carryforwards for local tax purposes of approximately $14.7 million and $10.2 million, respectively. 

With the exception of $3.9 million of losses with an indef- inite carryforward period as of June 30, 2003, these losses expire at various dates through fiscal 2008. Deferred tax assets in the amount of $2.9 million and $1.5 million as of June 30, 2003 and 2002, respectively, have been 

