Western Union 2015 Annual Report Download - page 223

THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
121
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,
2015 2014 2013
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (27.0) $ 34.7 $ (28.4)
Foreign. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 968.8 933.5 955.3
$ 941.8 $ 968.2 $ 926.9
For the years ended December 31, 2015, 2014 and 2013, 103%, 96% and 103% 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,
2015 2014 2013
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 33.2 $ 57.0 $ 88.3
State and local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.0) 4.9 (3.7)
Foreign. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71.8 53.9 43.9
$ 104.0 $ 115.8 $ 128.5
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,
2015 2014 2013
Federal statutory rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.0 % 35.0 % 35.0 %
State income taxes, net of federal income tax benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4 % 0.6 % 0.7 %
Foreign rate differential, net of U.S. tax paid on foreign earnings (3.4%, 4.3% and 9.2%,
respectively) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24.6)% (24.0)% (22.9)%
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 % 0.4 % 1.1 %
Effective tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.0 % 12.0 % 13.9 %
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