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9. Income Taxes
Income tax (provision) benefit attributable to income (loss) from continuing operations as
shown in the Consolidated Statements of Income (Loss) includes the following components:
Year Ended December 31
2005 2004 2003
(thousands)
Current income tax (provision) benefit
Federal ........................................ $ 28,908 $ (124,944) $ —
State ......................................... (14,629) (7,933) 3,043
Foreign ........................................ (20,512) (24,606) (22,712)
(6,233) (157,483) (19,669)
Deferred income tax (provision) benefit
Federal ........................................ 22,646 21,350 4,316
State ......................................... (23,331) (10,595) (3,250)
Foreign ........................................ 5,692 4,437 4,743
5,007 15,192 5,809
$ (1,226) $(142,291) $(13,860)
Income tax benefit attributable to loss from discontinued operations was $20.1 million,
$38.9 million and $11.6 million for the years ended December 31, 2005, 2004 and 2003,
respectively.
During 2005, 2004 and 2003, the Company made cash payments for income taxes, net of
refunds received, of $134.1 million, $36.6 million and $22.5 million, respectively.
The income tax (provision) benefit attributable to income (loss) from continuing operations for
the years ended December 31, 2005, 2004 and 2003 differed from the amounts computed by
applying the statutory U.S. Federal income tax rate of 35% to pretax income (loss) from continuing
operations as a result of the following:
Year Ended December 31
2005 2004 2003
(thousands)
Tax (provision) benefit at statutory rate ................... $ 13,166 $ (132,805) $ (17,234)
State taxes, net of federal effect ........................ (5,532) (12,043) (136)
Foreign tax provision differential ........................ (2,883) (6,905) (8,522)
Basis difference in investments disposed of ............... 14,867 7,000 —
Nondeductible compensation ......................... (4,268) — —
State NOL valuation allowance ........................ (21,533) — —
Change in contingency liability ........................ (4,607) — —
Tax settlement, net of other charges ..................... 12,462 — 2,924
ESOP dividend deduction ............................ 1,489 2,911 4,120
Other, net ........................................ (4,387) (449) 4,988
$ (1,226) $(142,291) $(13,860)
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