Washington Post 2013 Annual Report Download - page 86

9. INCOME TAXES
Income from continuing operations before income taxes consists of
the following:
Year Ended December 31
(in thousands) 2013 2012 2011
U.S. ...................... $287,221 $137,743 $243,913
Non-U.S. ................... 14,005 17,516 11,875
$301,226 $155,259 $255,788
The provision for income taxes on income from continuing
operations consists of the following:
(in thousands) Current Deferred Total
Year Ended December 31, 2013
U.S. Federal ................ $ 78,375 $ 22,438 $100,813
State and Local .............. 10,514 (9,808) 706
Non-U.S. ................... 10,051 (1,570) 8,481
$ 98,940 $ 11,060 $110,000
Year Ended December 31, 2012
U.S. Federal ................ $111,024 $ (48,685) $ 62,339
State and Local .............. 14,062 (5,135) 8,927
Non-U.S. ................... 12,631 (697) 11,934
$137,717 $ (54,517) $ 83,200
Year Ended December 31, 2011
U.S. Federal ................ $ 42,950 $ 26,732 $ 69,682
State and Local .............. 15,937 10,475 26,412
Non-U.S. ................... 9,129 (823) 8,306
$ 68,016 $ 36,384 $104,400
The provision for income taxes on continuing operations exceeds
the amount of income tax determined by applying the U.S. Federal
statutory rate of 35% to income from continuing operations before
taxes as a result of the following:
Year Ended December 31
(in thousands) 2013 2012 2011
U.S. Federal taxes at statutory rate . . $ 105,429 $ 54,341 $ 89,526
State and local taxes, net of U.S.
Federal tax ................ 3,097 9,247 4,143
Valuation allowances against state
tax benefits, net of U.S. Federal
tax...................... (2,638) (3,443) 9,748
Tax provided on non-U.S.
subsidiary earnings and
distributions at more (less) than
the expected U.S. Federal
statutory tax rate ............ 694 (7,320) (6,882)
Valuation allowances against non-
U.S. income tax benefits ...... 7,233 15,966 8,072
Goodwill impairment .......... —12,776 —
U.S. Federal Manufacturing
Deduction tax (benefit) expense . . (5,218) (3,323) 1,365
Other, net .................. 1,403 4,956 (1,572)
Provision for Income Taxes ..... $ 110,000 $ 83,200 $104,400
During 2013, 2012 and 2011, in addition to the income tax
provision for continuing operations presented above, the Company
also recorded tax expense or benefits on discontinued operations.
Losses from discontinued operations and gains or losses on sales
and dispositions of discontinued operations have been reclassified
from previously reported income from operations and reported
separately as loss from discontinued operations, net of tax. Tax
expense of $28.4 million and tax benefits of $78.3 million and
$8.3 million with respect to discontinued operations were recorded
in 2013, 2012 and 2011, respectively.
Deferred income taxes consist of the following:
As of December 31
(in thousands) 2013 2012
Accrued postretirement benefits ......... $ 15,408 $ 25,287
Other benefit obligations ............. 101,923 123,306
Accounts receivable ................. 24,911 31,073
State income tax loss carryforwards ...... 30,036 34,578
U.S. Federal income tax loss
carryforwards .................... 2,613 2,857
U.S. Federal capital loss carryforwards . . . —10,837
U.S. Federal foreign income tax credit
carryforwards .................... 8,265 6,781
Non-U.S. income tax loss carryforwards . . 32,600 27,039
Other ........................... 61,753 58,133
Deferred Tax Assets ................ 277,509 319,891
Valuation allowances ................ (72,767) (78,109)
Deferred Tax Assets, Net ............. $ 204,742 $241,782
Property, plant and equipment ......... 134,627 175,025
Prepaid pension cost ................ 497,727 241,846
Unrealized gain on available-for-sale
securities ....................... 115,785 73,712
Goodwill and other intangible assets ..... 293,749 276,652
Deferred Tax Liabilities .............. $1,041,888 $767,235
Deferred Income Tax Liabilities, Net .... $ 837,146 $525,453
The Company has $597.1 million of state income tax loss
carryforwards available to offset future state taxable income. State
income tax loss carryforwards, if unutilized, will start to expire
approximately as follows:
(in millions)
2014 ........................................ $ 5.3
2015 ........................................ 5.4
2016 ........................................ 5.7
2017 ........................................ 2.5
2018 ........................................ 4.5
2019 and after ................................. 573.7
Total ........................................ $ 597.1
The Company has recorded at December 31, 2013, $30.0 million
in deferred state income tax assets, net of U.S. Federal income tax,
with respect to these state income tax loss carryforwards. The
Company has established a full valuation allowance, reducing the
net recorded amount of deferred tax assets with respect to state tax
loss carryforwards, since the Company has determined that it is
more likely than not that the state tax losses may not be fully utilized
in the future to reduce state taxable income.
The Company has $7.4 million of U.S. Federal income tax loss
carryforwards obtained as a result of prior stock acquisitions. U.S.
Federal income tax loss carryforwards are expected to be fully
utilized as follows:
(in millions)
2014 .......................................... $0.7
2015 .......................................... 0.7
2016 .......................................... 0.7
2017 .......................................... 0.7
2018 .......................................... 0.7
2019 and after ................................... 3.9
Total ........................................... $ 7.4
68 GRAHAM HOLDINGS COMPANY