NOTES TO CONSOLIDATED FINANCIAL STATEMENTS BARNES GROUP INC. PAGE 32 Back to Table of Contents Income taxes paid, net of refunds, were $1,906, $2,046 and $7,165 in 2002, 2001 and 2000, respectively. The deferred income tax assets will be realized through reversals of existing taxable temporary differences with the remainder, net of the valuation allowance, dependent on future income. Management believes that sufficient income will be earned in the future to realize the remaining net deferred income tax assets. Tax loss carry-forwards of $67,523 have remaining carry- forward periods ranging from two years to unlimited. The Company has tax credit carry-forwards of $4,097, with remaining carry-forward periods ranging from one to 10 years. The Company has not recognized deferred income taxes on $149,937 of undistributed earnings of its international subsidiaries, since such earnings are considered to be reinvested indefinitely. If the earnings were distributed in the form of dividends, the Company would be subject, in certain cases, to both U.S. income taxes and foreign withholding taxes. Determination of the amount of this unrecognized deferred income tax liability is not practicable. A reconciliation of the U.S. federal statutory income tax rate to the consolidated effective income tax rate follows: Deferred income tax assets and liabilities at December 31 consisted of the tax effects of temporary differences related to the following: Assets Liabilities Allowance for doubtful accounts Depreciation and amortization Inventory valuation Postretirement/postemployment costs Tax loss carry-forwards Other Valuation allowance Current deferred income taxes Non-current deferred income taxes 2001 $ 756 (9,023) 7,472 23,325 10,762 (2,883) 30,409 (7,924) $  22,485 $  16,702 5,783 $  22,485 2002 $ 512 (13,279) 6,593 22,548 28,156 2,129 46,659 (8,025) $ 38,634 $ 16,024 22,610 $ 38,634 2001 $ — 2,930 782 (249) — 3,293 6,756 — $^{$}$6,756 $ 688 6,068 $^{$}$6,756 2002 $ — 1,791 1,007 (265) — 4,158 6,691 — $^{$}$6,691 $ 946 5,745 $^{$}$6,691 U.S. federal statutory income tax rate State taxes (net of federal benefit)  State tax rate reduction Foreign losses without tax benefit  Tax on foreign operations  NASCO equity income Export sales benefit  ESOP dividend  Other  Consolidated effective income tax rate 2001 35.0% 1.1 — 3.6 (22.8) 0.1 (1.5) — 3.0 18.5% 2000 35.0% 1.8 1.6 0.8 (12.7) (0.5) (0.9) — 1.5 26.6% 2002 35.0% 0.9 — 3.6 (16.0) (0.4) (1.3) (5.8) 2.0 18.0%