Income before income taxes and cumulative effect of change in accounting method is as follows: (Dollars in thousands) 2003 2002 2001 Domestic $147,581 $44,668 $40,809 Foreign 7,809 5,530 3,683 Income before income taxes and cumulative effect of change in accounting method $155,390 $50,198 $44,492 (Dollars in thousands) 2003 2002 2001 Current: Federal $ 53,767 $13,447 $10,681 Foreign 2,881 2,449 1,938 State and local 6,080 1,906 1,635 Deferred (3,680) 1,545 2,040 Total income tax expense  $ 59,048 $19,347 $16,294 (Dollars in thousands) 2003 2002 2001 Statutory federal income tax rate 35.0% 35.0% 35.0% Increase (decrease) in income taxes resulting from: State and local income taxes, net of federal income tax benefit 2.5 2.5 2.1 Research credits (0.1) (1.9) (0.8) Other items 0.6 2.9 0.3 Effective income tax rate 38.0% 38.5% 36.6% Income taxes paid $ 46,119 $18,003 $19,783 Foreign  Loss on Gains on  Accumulated  Currency Minimum Available- Cash Flow Other Translation Pension  for-Sale Hedging Comprehensive (Dollars in thousands) Adjustments Liability Securities Derivatives Loss Balance at May 1, 2000 $ 9,327 $ — $ — $ — $ 9,327 Current period charge 7,308 — — — 7,308 Income tax benefit — — — — — Balance at April 30, 2001 $16,635 $ —  $ — $ — $16,635 Current period (credit) charge (1,669) 1,228 — — (441) Income tax benefit — (431) — — (431) Balance at April 30, 2002 $14,966 $  797 $ — $ — $15,763 Current period (credit) charge (8,268) 13,917 477 (381) 5,745 Income tax (benefit) expense — (5,288) (181) 145 (5,324) Balance at April 30, 2003 $ 6,698 $ 9,426 $ 296 $(236) $16,184 38 Note N: Accumulated Other Comprehensive Loss Comprehensive income is included in the Statements of Consolidated Shareholders’ Equity. The components of accu- mulated other comprehensive loss as shown on the Consolidated Balance Sheets are as follows: Year Ended April 30, Year Ended April 30, A reconciliation of the statutory federal income tax rate and the effective income tax rate follows: Percent of Pretax Income The components of the provision for income taxes are as follows: Year Ended April 30,