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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
76
9. Income Taxes
The components of the Company’s deferred tax assets and liabilities as of December 31, 2007 and
2006, were as follows (in thousands):
2007 2006
Deferred tax assets:
Allowance for valuation of merchandise held for disposition.................
.
$ 472 $ 427
Tax over book accrual of finance and service charges............................
.
5,266 5,511
Allowance for cash advance losses.........................................................
.
9,691 7,351
Valuation of notes receivable – sale of discontinued operations ............
.
ʊ 947
Deferred compensation ...........................................................................
.
5,353 4,193
Net capital losses.....................................................................................
.
ʊ 20
Deferred state credits ..............................................................................
.
1,258 137
Other .......................................................................................................
.
1,621 1,503
Total deferred tax assets.......................................................................
.
23,661 20,089
Deferred tax liabilities:
Amortization of acquired intangibles ......................................................
.
$ 15,799 $ 11,524
Property and equipment ..........................................................................
.
4,488 3,717
Other .......................................................................................................
.
1,754 1,294
Total deferred tax liabilities .................................................................
.
22,041 16,535
Net deferred tax assets ......................................................................
.
$ 1,620 $ 3,554
Balance sheet classification:
Current deferred tax assets......................................................................
.
$ 20,204 $ 16,324
Non-current deferred tax liabilities .........................................................
.
(18,584) (12,770)
Net deferred tax assets................................................................................
.
$ 1,620 $ 3,554
The components of the provision for income taxes and the income to which it relates for the years
ended December 31, 2007, 2006 and 2005 are shown below (in thousands):
2007 2006 2005
Income from continuing operations before income taxes................ $ 124,765 $ 96,168 $ 70,882
Current provision:
Federal.......................................................................................... $ 40,141 $ 36,582 $ 26,291
State and local .............................................................................. 3,345 2,284 1,401
43,486 38,866 27,692
Deferred provision (benefit):
Federal.......................................................................................... 3,381 (3,203) (1,845)
State and local .............................................................................. (1,448) (435) 214
1,933 (3,638) (1,631)
Total provision .......................................................................... $ 45,419 $ 35,228 $ 26,061