Bridgford | Investor Service

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Notes to Consolidated Financial Statements

NOTE 4 - INCOME TAXES:

The provision for taxes on income includes the following (in thousands):

	1998	1997	1996
Current:
Federal	$5,241	$3,602	$4,039
State	964	658	551

	6,205	4,260	4,590


Deferred:
Federal	(735)	(99)	(933)
State	(125)	(112)	(192)

	(860)	(211)	(1,125)

	$5,345	$4,049	$3,465

The total tax provision differs from the amount computed by applying the statutory federal income tax rate to income before income taxes as follows (in thousands):

	1998	1997	1996
Provision for federal income taxes at the applicable statutory rate	$4,782	$3,622	$3,100
Increase in provision resulting from: State income taxes, net of federal income tax benefit	518	416	335
Other, net	45	11	30
	$5,345	$4,049	$3,465
Deferred income taxes result from differences in the bases of assets and liabilities for tax and accounting purposes.

Deferred income taxes result from differences in the bases of assets and liabilities for tax and accounting purposes.

Deferred tax assets (liabilities) are comprised of the following (in thousands):

	1998	1997
Receivables allowance	$235	$233
Inventory capitalization	329	233
Deferred compensation	382	385
Franchise tax	154	107
Employee benefits	842	631
Other	(29)	44

Current tax assets	$1,913	$1,690
Deferred compensation	$1,348	$1,001
Pension and health care benefits	3,343	2,870
Depreciation	(952)	(769)
Non-current taz assets, net	3,739	3,102
No valuation allowance was provided against deferred tax assets in the accompanying statements.

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