years ended December 31, 2004, 2003 and 2002, respectively. Certain of the Company’s employees participate in a defined contri- bution plan in the United Kingdom and Ireland sponsored by the Company. The costs to the Company related to these plans were not material to the Company’s results of operations or financial position for the years presented.  The operating results of Ygyan, Infopulse, ACES, UHCI and Silverline, for the periods included indicated above, were not material to the consolidated operating results of the Company for the years ended December 31, 2004, 2003 and 2002. Cognizant India maintains employee benefit plans that cover substan- tially all India-based employees. The employees’ provident fund, pension and family pension plans are statutory defined contribution retirement benefit plans. Under the plans, employees contribute up to 12% of their base compensation, which is matched by an equal con- tribution by Cognizant India. Contribution expense recognized was $2,254, $1,310 and $928 for the years ended December 31, 2004, 2003 and 2002, respectively.  Cognizant India also maintains a statutory gratuity plan that is a statu- tory post-employment benefit plan providing defined lump sum ben- efits. Cognizant India makes annual contributions to an employee’s gratuity fund established with a government-owned insurance corpo- ration to fund a portion of the estimated obligation. The Company estimates its obligation based upon employees’ salary and years of service. Contribution expense recognized by the Company was $2,752, $1,112 and $752 for the years ended December 31, 2004, 2003 and 2002, respectively.  The Company does not offer any defined benefit pension plans to its employees. Income before provision for income taxes shown below is based on the geographic location to which such income is attributed for years ended December 31: The provision for income taxes consists of the following components for the years ended December 31: The Company has a 401(k) savings plan which allows eligible U.S. employees of the Company to contribute a percentage of their com- pensation into the plan and the Company matches up to 50.0% of the eligible employee’s contribution. The amount charged to expense for the matching contribution was $1,046, $642 and $479 for the All of the intangible assets have finite lives and as such are subject to amortization. Amortization of intangibles totaled $2,005 for 2004, $1,485 for 2003 and $326 for 2002. Estimated amortization expenses of the Company’s existing intangible assets for the next five years are as follows: Components of intangibles assets are as follows: In 2004, approximately $1,126 of the increase in goodwill relates to the acquisition of Ygyan and approximately $4,028 relates to an adjustment to the initial purchase price allocation of Infopulse. The increase in goodwill in 2003 relates to the acquisition of ACES. No impairment losses were recognized during the three years ended December 31, 2004. Changes in goodwill for the year ended December 31, 2004 and 2003 are as follows: 5. Goodwill and Intangible Assets, net 7. Income Taxes 6. Employee Benefits Current: Federal and state $ 13,829 $ 8,690 $ 6,292 Foreign 9,100 1,942 2,432 Total current 22,929 10,632 8,724 Deferred: Federal and state (338) 4,355 1,565 Foreign (739) (121) 240 Total deferred (1,077) 4,234 1,805 Total provision $ 21,852 $ 14,866 $ 10,529 2004 2003 2002 United States $ 33,688 $ 17,516 $ 11,892 Foreign 88,407 54,715 33,199 Total $122,095 $ 72,231 $ 45,091 2004 2003 2002 2005 $ 1,584 2006 1,573 2007 1,573 2008 1,573 2009 1,572 Year Amount Y Intangibles: Customer relationships $14,849 $ 17,061 10 years Assembled workforce 1,162 1,106 1.8 years Other 175 120 5-8 years 16,186 18,287 Less: accumulated amortization (4,060) (1,851) Intangible assets, net $12,126 $ 16,436 Weighted 2004 2003 Average Life Balance beginning of year $ 4,477 $ 878 Acquisition and adjustments 5,154 3,599 Cumulative translation adjustments 70 – Balance end of year $ 9,701 $ 4,477 2004 2003 COGNIZANT ANNUAL REPORT 2004 38 Notes to Consolidated Financial Statements (in thousands, except share and per share data)