Equifax 2000 Annual Report Download - page 36

The provision for income taxes is reconciled
with the federal statutory rate as follows:
(In thousands) 2000 1999 1998
Federal statutory rate 35.0% 35.0% 35.0%
Provision computed at
federal statutory rate $134,879 $128,073 $114,536
State and local taxes,
net of federal tax benefit 6,390 11,993 10,274
Nondeductible
goodwill (including
amounts related
to divestitures) 9,396 2,236 5,357
Other 6,682 7,745 3,645
$157,347 $150,047 $133,812
Components of the Company’s deferred income
tax assets and liabilities at December 31, 2000
and 1999 are as follows:
(In thousands) 2000 1999
Deferred income tax assets:
Reserves and accrued expenses $ 21,597 $ 26,067
Postretirement benefits 9,695 9,515
Employee compensation programs 13,476 15,890
Deferred revenue 9,929 11,517
Net operating loss carryforwards
of subsidiaries 5,494 11,066
Foreign tax credit carryforwards 26,614 18,629
Other 8,380 8,318
95,185 101,002
Deferred income tax liabilities:
Data files and other assets (74,807) (71,163)
Depreciation (2,933) (2,940)
Pension expense (38,250) (34,236)
Undistributed earnings
of foreign subsidiaries (33,649) (28,891)
Other (12,508) (8,889)
(162,147) (146,119)
Net deferred income tax liability $ (66,962) $ (45,117)
The Company’s deferred income tax assets and
liabilities at December 31, 2000 and 1999 are
included in the accompanying consolidated
balance sheets as follows:
(In thousands) 2000 1999
Deferred income tax assets $ 23,236 $ 28,015
Deferred income tax liabilities (90,198) (73,132)
Net deferred income tax liability $(66,962) $(45,117)
Accumulated undistributed retained earnings
of Canadian subsidiaries amounted to approxi-
mately $29,121,000 at December 31, 2000. No
provision for Canadian withholding taxes or
United States federal income taxes is made
on these earnings because they are considered
by management to be permanently invested
in those subsidiaries and, under the tax laws,
are not subject to such taxes until distributed
as dividends. If the earnings were not consid-
ered permanently invested, approximately
$1,456,000 of deferred income taxes would
have been provided. Such taxes, if ultimately
paid, may be recoverable as foreign tax credits
in the United States.
"6.SHAREHOLDERS’ EQUITY
Rights Plan In 1995, the Company’s Board of
Directors adopted a Shareholder Rights Plan
(Rights Plan). The Rights Plan contains provi-
sions to protect the Company’s shareholders in
the event of an unsolicited offer to acquire the
Company, including offers that do not treat all
shareholders equally, the acquisition in the
open market of shares constituting control
without offering fair value to all shareholders,
and other coercive, unfair or inadequate
takeover bids and practices that could impair the
ability of the Board of Directors to represent
shareholders’ interests fully. Pursuant to the
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