American Home Shield 2006 Annual Report Download - page 58

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Total long-term liability (113,300) (88,100)
Net deferred tax asset (liability) $ (78,250) $ 20,680
(1) The deferred tax liability relates primarily to the difference in the tax versus book basis of intangible assets. The majority of this
liability will not actually be paid until a business unit of the Company is sold.
At December 31, 2005, the Company had tax effected federal and state net operating loss carryforwards of approximately $21
million, expiring at various dates up to 2025. The Company also had federal and state tax credit carryforwards of approximately $4
million which expire at various dates up to 2024.
In 2005, cash paid for income taxes were $146 million, including a net payment of $86 million to the IRS and various states
pursuant to the Company's agreement with the IRS. In 2004, total tax payments were $13 million. In 2003, the Company received
net tax refunds of $1 million.
Acquisitions
Acquisitions have been accounted for using the purchase method and, accordingly, the results of operations of the acquired
businesses have been included in the Company's consolidated financial statements since their dates of acquisition. The assets and
liabilities of these businesses were recorded in the financial statements at their estimated fair values as of the acquisition dates.
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