eTrade 2000 Annual Report Download - page 88

change in control or other defined redemption event. The Company used $145.0 million of the net proceeds to repay the outstanding
balance on a line of credit in February 2000. Debt issuance costs of $19.1 million are included in other assets and are being amortized
to corporate interest expense over the term of the notes. 14. INCOME TAXES
The components of income tax expense (benefit) are as follows (in thousands):
Years Ended September 30,
2000 1999 1998
Current:
Federal $ 18,857 $ 6,133 $ 1,483
Foreign 7,571 254 237
State 4,086 1,110 (189 )
Total current 30,514 7,497 1,531
Deferred:
Federal 41,144 (30,522 ) (229 )
State 13,820 (8,263 ) 581
Total deferred 54,964 (38,785 ) 352
Income tax expense (benefit) $ 85,478 $ (31,288 ) $ 1,883
The components of pre-tax income (loss) before minority interest in subsidiaries are as follows (in thousands):
Years Ended September 30,
2000 1999 1998
Domestic $ 116,573 $ (84,027 ) $ 2,901
Foreign (12,124 ) 621 (58 )
Total pre-tax income (loss) $ 104,449 $ (83,406 ) $ 2,843
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Deferred income taxes are recorded when revenues and expenses are recognized in different periods for financial statement and tax
return purposes. The temporary differences and tax carryforwards that created deferred tax assets (liabilities) are as follows (in
thousands):
September 30,
2000 1999
Deferred tax assets:
Reserves and allowances $ 4,013 $ 4,519
Net operating loss carryforwards 57,232 80,415
Depreciation and amortization 1,543 1,188
Deferred compensation 3,146 1,373
Capitalized technology development 7,433 5,290
General loan loss 3,591 —
Undistributed earnings in subsidiaries 5,563 5,261
Alternative minimum tax credit 1,680 1,997
Other 3,455 2,530
Total deferred tax assets 87,656 102,573
Deferred tax liabilities:
Internally developed software (2,857 ) (1,709 )
Acquired intangibles (6,746 ) —
Basis difference in investments (43,511 ) (109,054 )
Purchased software (3,024 ) (3,024 )
Other (463 ) (304 )
Total deferred tax liabilities (56,601 ) (114,091 )
Valuation allowance (10,537 ) (1,629 )
2002. EDGAR Online, Inc.