The income tax provision consisted of the following: The foreign provision for income taxes is based on foreign pretax earnings. Earnings of foreign subsidiaries would be subject to U.S. income taxation on repatriation to the U.S. The Company’s consolidated financial statements fully provide for any related tax liability on amounts that may be repatriated. Deferred tax assets and liabilities reflect the future income tax effects of temporary differences between the consolidated finan- cial statement carrying amounts of existing assets and liabilities and their respective tax bases and are measured using enacted tax rates that apply to taxable income. Significant components of deferred tax assets (liabilities) consist of the following: In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. Management considers the reversal of deferred tax liabilities and projected future tax- able income in making this assessment. Based upon this assessment, management believes it is more likely than not that the Company will realize the benefits of these deductible differences, net of any valuation allowances. February 29, February 28, 2004 2003 (in thousands) Deferred tax assets: Inventory $ 23,347 $ – Employee benefits 20,696 15,100 Net operating losses 15,477 – Insurance accruals 5,682 6,061 Prepaid and other assets 815 9,156 Restructuring accruals – 1,198 Other accruals 23,433 15,778 Gross deferred tax assets 89,450 47,293 Valuation allowances (2,712) – Deferred tax assets, net 86,738 47,293 Deferred tax liabilities: Property, plant and equipment $ (96,059) $ (73,705) Intangible assets (147,271) (101,338) Derivative instruments (17,883) (9,081) Inventory – (1,140) Provision for unremitted earnings (2,547) – Total deferred tax liabilities (263,760) (185,264) Deferred tax liabilities, net (177,022) (137,971) Less: Current deferred tax assets, net 10,388 7,268 Long-term deferred tax liabilities, net $ (187,410) $ (145,239) For the Years Ended February 29, February 28,  February 28, 2004 2003 2002 (in thousands) Current: Federal $ 68,125 $ 79,472 $ 63,917 State 13,698 13,807 10,800 Foreign 14,116 17,301 12,556 Total current 95,939 110,580 87,273 Deferred: Federal 18,843 16,290 (492) State 6,180 2,502 (251) Foreign 3,021 2,258 4,418 Total deferred 28,044 21,050 3,675 Income tax provision $ 123,983 $ 131,630 $ 90,948 58