MoneyGram 2004 Annual Report Download - page 70

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Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 11. Income Taxes
The components of earnings before income taxes from continuing operations are as follows for the year ended December 31:
2004 2003 2002
(Dollars in thousands)
Earnings before income taxes from continuing operations:
United States $ 53,507 $ 64,259 $ 71,178
Foreign 35,513 23,912 15,509
Total $ 89,020 $ 88,171 $ 86,687
Income tax expense related to continuing operations for the year ended December 31 consists of:
2004 2003 2002
(Dollars in thousands)
Current:
Federal $ 4,386 $ 24,370 $ 15,346
State 4,962 3,233 3,771
Foreign 8,261 (702) 3,856
Current income tax expense 17,609 26,901 22,973
Deferred income tax expense 6,282 (14,416) (11,050)
$ 23,891 $ 12,485 $ 11,923
Income tax expense totaling $13.8 million and $25.0 million in 2004 and 2003, respectively, and an income tax benefit of $11.0 million in 2002 is included in
"Income and gain from discontinued operations, net of tax" in the Consolidated Statement of Income. Taxes paid were $35.7 million, $24.1 million and $31.4
million for 2004, 2003 and 2002, respectively.
A reconciliation of the expected federal income tax at statutory rates to the actual taxes provided on income from continuing operations for the year ended
December 31 is:
2004 % 2003 % 2002 %
(Dollars in thousands)
Income tax at statutory federal income tax rate $ 31,157 35.0% $ 30,860 35.0% $ 30,340 35.0%
Tax effect of:
State income tax, net of federal income tax effect 910 1.0% 959 1.1% 1,293 1.5%
Preferred stock redemption costs 6,004 6.7% — — — —
Other 1,348 1.5% 1,166 1.3% 1,993 2.3%
39,419 44.2% 32,985 37.4% 33,626 38.8%
Tax-exempt income (15,528) (17.4%) (20,500) (23.2%) (21,703) (25.0%)
Income tax expense $ 23,891 26.8% $ 12,485 14.2% $ 11,923 13.8%
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