Western Union 2014 Annual Report Download - page 256

2014 FORM 10-K
THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
118
10. Income Taxes
The components of pre-tax income, generally based on the jurisdiction of the legal entity, were as follows (in millions):
Year Ended December 31,
2014 2013 2012
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 34.7 $ (28.4) $ 94.8
Foreign. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 933.5 955.3 1,074.0
$ 968.2 $ 926.9 $ 1,168.8
For the years ended December 31, 2014, 2013 and 2012, 96%, 103% and 92% of the Company's pre-tax income was derived
from foreign sources, respectively.
The provision for income taxes was as follows (in millions):
Year Ended December 31,
2014 2013 2012
Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 57.0 $ 88.3 $ 92.5
State and local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.9 (3.7)(14.8)
Foreign. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.9 43.9 65.2
$ 115.8 $ 128.5 $ 142.9
Domestic taxes have been incurred on certain pre-tax income amounts that were generated by the Company's foreign operations.
Accordingly, the percentage obtained by dividing the total federal, state and local tax provision by the domestic pre-tax income,
all as shown in the preceding tables, may be higher than the statutory tax rates in the United States.
The Company's effective tax rates differed from statutory rates as follows:
Year Ended December 31,
2014 2013 2012
Federal statutory rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.0 % 35.0 % 35.0 %
State income taxes, net of federal income tax benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6 % 0.7 % 0.6 %
Foreign rate differential, net of U.S. tax paid on foreign earnings (4.3%, 9.2% and 5.1%,
respectively) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24.0)% (22.9)% (22.5)%
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4 % 1.1 % (0.9)%
Effective tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.0 % 13.9 % 12.2 %