Equifax 2004 Annual Report Download - page 65

N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
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on a demand basis following the expiration of the revolver
on September 30, 2004, and the remaining balance was
paid in October 2004. Borrowings under this loan (which
are included in the 2003 short-term borrowings totals above)
at December 31, 2003 were $15.4 million.
In November 2004, we entered into a C$25.0 million
revolving credit facility that replaced the C$100.0 million
facility that expired in September 2004. The C$25.0 million
facility expires in September 2005. There were no borrow-
ings outstanding under this facility at December 31, 2004.
Cash paid for interest was $34.9 million in 2004, $39.6 mil-
lion in 2003 and $41.8 million in 2002.
8.฀INCOME฀TAXES
We record deferred income taxes using enacted tax laws
and rates for the years in which the taxes are expected to be
paid. Deferred income tax assets and liabilities are recorded
based on the differences between the fi nancial reporting
and income tax bases of assets and liabilities.
The provision for income taxes from continuing operations
consists of the following:
(in millions)
2004
2003 2002
Current:
Federal
$ 74.7
$ 63.5 $ 71.9
State
12.9
5.7 10.0
Foreign
24.7
22.8 21.4
112.3
92.0 103.3
Deferred:
Federal
30.9
11.4 23.3
State
2.7
– (1.9)
Foreign
2.0
1.2 (0.3)
35.6
12.6 21.1
$147.9
$104.6 $124.4
Domestic and foreign income from continuing operations
before income taxes was as follows:
(in millions)
2004
2003 2002
United States
$302.8
$214.9 $264.5
Foreign
82.4
70.4 51.6
$385.2
$285.3 $316.1
The provision for income taxes from continuing operations
is reconciled with the federal statutory rate, as follows:
(in millions)
2004
2003 2002
Federal statutory rate
35.0%
35.0% 35.0%
Provision computed at
federal statutory rate
$134.8
$ 99.9 $110.6
State and local taxes, net
of federal tax benefi t
10.3
0.6 5.0
Foreign
2.0
(9.1) (8.4)
Valuation allowance
(13.0)
7.4 21.1
Tax reserves
12.9
(0.8) –
Other
0.9
6.6 (3.9)
$147.9
$104.6 $124.4
Components of the deferred income tax assets and liabili-
ties at December 31, 2004 and 2003 are as follows:
(in millions)
2004
2003
Deferred income tax assets:
Reserves and accrued expenses
$ 18.9
$ 17.1
Postretirement benefi ts
71.1
71.5
Employee compensation programs
17.1
12.6
Deferred revenue
4.8
7.0
Depreciation
–
0.2
–
–
Net operating loss carryforwards
of subsidiaries
26.7
40.1
Foreign tax credits
21.9
19.1
Unrealized foreign exchange loss
41.4
58.5
Valuation allowance
(88.0)
(111.9)
Other
4.2
3.6
118.1
117.8
Deferred income tax liabilities:
Data fi les and other assets
(62.2)
(50.5)
Depreciation
(1.5)
–
Pension expense
(70.2)
(61.9)
Undistributed earnings of
foreign subsidiaries
(7.9)
(8.0)
Other
(1.7)
(1.2)
(143.5)
(121.6)
Net deferred income tax liability
$ (25.4)
$
(3.8)