FairPoint Communications 2004 Annual Report Download - page 109

C&E, Taconic, and GT Com also sponsor defined contribution 401(k) retirement savings plans for union employees. C&E,
Taconic, and GT Com match contributions to these plans based upon a percentage of pay of all qualified personnel and make certain
profit sharing contributions. Contributions to these plans were $0.2 million, $0.2 million, and $0.3 million for the years ended
December 31, 2004, 2003, and 2002, respectively.
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Income tax benefit (expense) from continuing operations for the years ended December 31, 2004, 2003, and 2002 consists of the
following components (dollars in thousands):
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Current:
Federal $ — — —
State (543)199 (603)
Total current income tax benefit (expense) from continuing
operations (543)199 (603)
Investment tax credits 27 37 85
Deferred:
Federal — — —
State — — —
Total deferred income tax benefit (expense) from continuing
operations — — —
Total income tax benefit (expense) from continuing operations $(516)236 (518)
Total income tax benefit (expense) from continuing operations was different than that computed by applying U.S. Federal income
tax rates to losses from continuing operations before income taxes for the years ended December 31, 2004, 2003, and 2002. The
reasons for the differences are presented below (dollars in thousands):
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Computed "expected" Federal tax benefit from continuing
operations $8,104 2,880 1,952
State income tax benefit (expense), net of Federal income tax
expense (358)131 (398)
Amortization of investment tax credits 27 37 85
Dividends on preferred stock (6,862)(3,077)—
Dividends received deduction 103 94 —
Change in valuation allowance (1,858)— (2,279)
Disallowed expenses and other 328 171 122
Total income tax benefit (expense) from continuing
operations $(516)236 (518)
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