MOVADO GROUP, INC. As of January 31, 2001, the Company had foreign net operating loss carryforwards of approximately $3.5 million, which are available to offset taxable income in future years. As of January 31, 2001, the Company maintained a valuation allowance with respect to the tax benefit of certain foreign net operating loss  carryforwards. Since the Company’s foreign deferred tax assets relate primarily to its former sales office  in Germany, which is currently operated by an independent distributor, the Company’s assessment is that a portion of the foreign deferred tax assets will not likely be utilized in the foreseeable future. Management is continuing to evaluate the appropriate level of allowance based on future operating results and changes in  circumstances. The provision for income taxes differs from the amount determined by applying the U.S. federal statutory rate as follows  (in thousands) : In fiscal 2001, the Company recognized a tax benefit of $1,083 from realization of domestic and certain foreign net operating loss carryforwards. No provision has been made for taxes on foreign subsidiaries’ undistributed earnings of approximately $155 million at January 31, 2001, as those earnings are considered to be reinvested for an indefinite period.  In fiscal 1996, the Company entered into an agreement with a trust which owns an insurance policy issued on the lives of the Company's Chairman and Chief Executive Officer and his spouse. Under that agreement, the trust has assigned the insurance policy to the Company as collateral to secure repayment by the trust of  interest-free loans to be made by the Company in amounts sufficient for the trust to pay the premiums on said insurance policy (approximately $741,000 per annum). Under the agreement, the trust will repay the loans from the proceeds of the policy. The Company had loaned approximately $3.8 million and $3.1 million under this agreement at January 31, 2001 and 2000, respectively.  51 Note 9. Other Assets Fiscal Year Ended January 31,  2001 2000 1999 Provision for income taxes at the U.S. statutory rate $9,691 $5,311 $ 9,533 Lower effective foreign income tax rate (3,621) (3,362) (3,685) Change in valuation allowance (56) (1,221) — Tax provided on repatriated earnings of foreign subsidiaries 265 238 252 State and local taxes, net of federal benefit 113 8 134 Other, net 530 454 31 $6,922 $1,428 $6,265