32 THE CHILDREN’S PLACE RETAIL STORES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 4. COMMITMENTS AND CONTINGENCIES (Continued) 5. LITIGATION 6. INCOME TAXES Future minimum annual lease payments under the Company’ operating leases at February 2, 2002, are as follows (dollars in thousands): The Company is involved in various legal proceedings arising in the normal course of its business. In the opinion of management, any ultimate liability arising out of such proceedings, will not have a material adverse effect on the Company’ financial position or results of operations. Components of the Company’ provision for income taxes consisted of the following (dollars in thousands): Operating Leases Fiscal year 2002 .................................................................. $74,117 2003 .................................................................. 75,240 2004 .................................................................. 73,730 2005 .................................................................. 72,880 2006 .................................................................. 71,119 Thereafter .......................................................... 243,948 Total minimum lease payments ............................... $611,034 Fiscal Year Ended February 2, 2002 February 3, 2001 January 29, 2000 Current Federal ............................................. $25,480 $21,477 $14,900 Foreign.............................................. 679 694 533  State ................................................ 5,466 4,278 3,500  Deferred Federal ............................................. ( 2,099 ) 311 2,574  State ................................................ ( 359 ) 701 881 Provision for income taxes..................... $29,167 $27,461 $22,388