Western Union 2015 Annual Report Download - page 224

THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
122
The decrease in the Company's effective tax rate for the year ended December 31, 2015 compared to 2014 is primarily due
to various tax planning benefits, some of which are non-recurring, partially offset by changes in the composition of foreign earnings
between higher taxed and lower taxed and the combined effects of various discrete items. The decrease in the Company's effective
tax rate for the year ended December 31, 2014 compared to 2013 is primarily due to the combined effect of various discrete items,
including those related to foreign currency fluctuations on certain income tax attributes, and changes in tax contingency reserves,
partially offset by changes in the composition of earnings between foreign and domestic. The Company continues to benefit from
a significant proportion of its profits being foreign-derived and generally taxed at lower rates than its combined federal and state
tax rates in the United States. Certain portions of the Company's foreign source income are subject to United States federal and
state income tax as earned due to the nature of the income, and dividend repatriations of the Company's foreign source income are
generally subject to United States federal and state income tax.
The Company's provision for income taxes consisted of the following components (in millions):
Year Ended December 31,
2015 2014 2013
Current:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 59.6 $ 76.1 $ 86.1
State and local. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4 4.7 8.1
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78.9 61.8 73.6
Total current taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143.9 142.6 167.8
Deferred:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26.4)(19.1) 2.2
State and local. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6.4) 0.2 (11.8)
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7.1)(7.9)(29.7)
Total deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (39.9)(26.8)(39.3)
$ 104.0 $ 115.8 $ 128.5
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