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41
Years Ended December 31, Amount
2005 $ 7,268
2006 7,996
2007 8,288
2008 8,493
2009 8,691
Thereafter 13,417
Total future minimum lease payments $ 54,153
In 1996, we recorded a $4.0 million pre-tax charge to operating results for exit costs relating to our leased
Buffalo Grove, Illinois facility. The exit costs consisted primarily of the estimated cost to the Company of
subleasing the vacated facility, including holding costs, the estimated costs of restoring the building to its
original condition and certain asset write-offs resulting from the relocation. During 2004, 2003 and 2002,
we charged approximately $167,000, $898,000 and $764,000 against the exit accrual, respectively. These
amounts include cash payments for rent, real estate taxes and restoration, net of sublease payments.
We discontinued use of the Buffalo Grove facility in the fourth quarter of 2002 and sales personnel were
relocated to the Mettawa, Illinois office. The Buffalo Grove lease term expired in December 2003. We
completed the restoration of the facility during 2004.
9. Income Taxes
Pretax income from continuing operations for the years ended December 31, 2004, 2003 and 2002 was taxed
under the following jurisdictions (in thousands):
2004 2003 2002
Domestic $ 400,585 $ 289,641 $ 306,197
Foreign (725) (77) -
Total $ 399,860 $ 289,564 $ 306,197
Components of the provision (benefit) for income taxes for the years ended December 31, 2004, 2003 and
2002 consist of (in thousands):
2004 2003 2002
Current:
Federal $ 128,527 $ 91,361 $ 101,449
State 27,671 21,244 20,945
Total current 156,198 112,605 122,394
Deferred 2,217 1,773 (1,446)
Provision for income taxes $ 158,415 $ 114,378 $ 120,948
The current income tax liabilities for 2004, 2003 and 2002 were reduced by $19.6 million, $36.5 million
and $69.5 million, respectively, for tax benefits recorded directly to paid-in capital relating to the exercise
and vesting of shares pursuant to the CDW Stock Option Plan, the MPK Stock Option Plan and the MPK
Restricted Stock Plan as described in Note 10.
The reconciliation between the statutory tax rate expressed as a percentage of income before income taxes
and the actual effective tax rate for the years ended December 31, 2004, 2003 and 2002 is as follows
(dollars in thousands):