Express Scripts 2013 Annual Report Download - page 85

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85 Express Scripts 2013 Annual Report
The provision (benefit) for income taxes for continuing operations consists of the following:
Year Ended December 31,
(in millions) 2013 2012 2011
Income from continuing operations before income taxes:
United States $ 2,987.6 $ 2,185.8 $ 2,029.4
Foreign 42.7 14.6 (2.3)
Total $ 3,030.3 $ 2,200.4 $ 2,027.1
Current provision:
Federal $ 1,483.4 $ 1,009.5 $ 565.2
State 192.3 216.8 42.5
Foreign 2.0 0.7 3.1
Total current provision 1,677.7 1,227.0 610.8
Deferred provision:
Federal (520.0)(358.5) 125.3
State (45.3)(29.8) 12.4
Foreign (8.4)(0.7) 0.1
Total deferred provision (benefit) (573.7)(389.0) 137.8
Total current and deferred provision $ 1,104.0 $ 838.0 $ 748.6
A reconciliation of the statutory federal income tax rate and the effective tax rate follows (the effect of foreign
taxes on the effective tax rate for 2013, 2012, and 2011 is immaterial):
Year Ended December 31,
2013 2012 2011
Statutory federal income tax rate 35.0% 35.0% 35.0%
State taxes, net of federal benefit 2.6 5.1 2.0
Non-controlling interest (0.3)(0.3)—
Investment in foreign subsidiaries (0.7)(3.0)—
Other, net (0.2) 1.3 —
Effective tax rate 36.4% 38.1% 37.0%
Our effective tax rate from continuing operations decreased to 36.4% for the year ended December 31, 2013,
compared to 38.1% and 37.0% for 2012 and 2011, respectively.
During 2013, we recorded a discrete benefit of $51.2 million primarily attributable to investments in certain foreign
subsidiaries for which we recognized as a result of various divestitures, deferred tax implications of newly enacted state laws
and income not recognized for tax purposes. We recorded a discrete benefit of $8.2 million in 2012 primarily attributable to an
income tax contingency related to prior year income tax return filings and investments in certain foreign subsidiaries which we
expected to realize in the foreseeable future.
The effective tax rate recognized in discontinued operations was (115.1)% and (30.5)% for the years ended
December 31, 2013 and 2012, respectively. There were no discontinued operations in 2011. Our income tax provision from
discontinued operations was $28.7 million, and $7.5 million for 2013 and 2012, respectively.