Abercrombie &Fitch A reconciliation between the statutory Federal income tax rate and the effective income tax rate follows: based on a percentage of sales exceeding a stipulated amount. Store lease terms generally require additional payments covering taxes, common area costs and certain other expenses. A summary of rent expense follows (thousands): Income taxes payable included net current deferred tax assets of $6.0 million and $4.9 million at February 1, 2003 and February 2, 2002, respectively. At February 1, 2003, the Company was committed to noncance- lable leases with remaining terms of one to fourteen years. These commitments include store leases with initial terms ranging pri- marily from ten to fifteen years. A summary of minimum rent commitments under noncancelable leases follows (thousands): Under a tax sharing arrangement with The Limited, who owned 84.2% of the outstanding Common Stock through May 19, 1998, the Company was responsible for and paid to The Limited its proportionate share of income taxes calculated upon its separate taxable income at the estimated annual effective tax rate for periods prior to May 19, 1998. Amounts paid to The Limited totaled $1.4 million, $20 thousand and $829 thousand in 2002, 2001 and 2000, respectively. Amounts paid directly to taxing authorities were $82.3 million, $94.3 million and $111.7 million in 2002, 2001 and 2000, respectively. The amount paid to The Limited during 2002 constituted a final tax sharing pay- ment pursuant to an agreement to terminate the tax sharing agreement entered into with The Limited as of May 19, 1998. As a result, the Company has been indemnified by The Limited for any federal, state or local income taxes asserted with respect to The Limited for all periods prior to May 19, 1998. The effect of temporary differences which give rise to de- ferred income tax assets (liabilities) was as follows (thousands): No valuation allowance has been provided for deferred tax assets because management believes that it is more likely than 7. INCOME TAXES The provision for income taxes consisted of  (thousands): 6. ACCRUED EXPENSES Accrued expenses consisted of the  following (thousands): 2002 2001 2000 Currently payable: Federal  $ 90,069 $ 80,126 $ 80,856 State 12,034 14,567 18,403 $102,103 $ 94,693 $ 99,259 Deferred: Federal 17,699 11,133 2,814 State 1,648 2,024 1,247 $ 19,347 $ 13,157) $ 4,061 Total provision $121,450 $107,850 $103,320 22 2002 2001 Deferred tax assets: Deferred compensation  $ 8,113 $ 8,833 Accrued expenses 6,754 7,216 Inventory 2,960 1,747 Rent 1,314 1,525 Other 124 139 Total deferred tax assets 19,265 19,460 Deferred tax liabilities: Property and equipment (25,954) (8,307) Store supplies (8,061) (7,417) Total deferred tax liabilities (34,015) (15,724) Net deferred income tax assets (liabilities) $(14,750) $3,736 2002 2001 2000 Store rent: Fixed minimum $105,751 $83,608 $65,716 Contingent 4,886 4,897 7,079 Total store rent $110,637 $88,505 $72,795 Buildings, equipment and other 1,133 1,566 2,777 Total rent expense $111,770 $90,071 $75,572 2002 2001 2000 Federal income tax rate 35.0% 35.0% 35.0% State income tax, net of Federal income tax effect 3.5% 3.9% 4.1% Other items, net (0.1)% 0.1% 0.4% Total 38.4% 39.0% 39.5% 2003 $120,313 2006 112,899 2004 $121,316 2007 99,381 2005 $118,695 Thereafter 316,724 2002 2001 Unredeemed gift card revenue $23,454 $17,031 Rent and landlord charges 18,465 16,247 Compensation and benefits 15,857 9,492 Accrual for construction in progress 12,680 25,338 Catalogue and advertising costs 9,701 11,178 Taxes, other than income 5,512 3,552 Other 34,769 26,748 Total $120,438 $109,586