FairPoint Communications 2005 Annual Report Download - page 88

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these plans were $0.3 million, $0.2 million, and $0.2 million for the years ended December 31, 2005, 2004, and 2003, respectively.
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Income tax benefit (expense) from continuing operations for the years ended December 31, 2005, 2004, and 2003 consists of the following components (in
thousands):
  
Current:
Federal $ — $ — $ —
State (1,128) (543)199
Total current income tax benefit (expense) from continuing operations (1,128) (543)199
Investment tax credits 16 27 37
Deferred:
Federal 78,385 — —
State 5,823 — —
Total deferred income tax benefit (expense) from continuing operations 84,208 — —
Total income tax benefit (expense) from continuing operations $83,096 $(516)$ 236
Income tax expense of $0.2 million has also been recognized associated with income from discontinued operations.
Total income tax benefit (expense) from continuing operations was different than that computed by applying U.S. Federal income tax rates to losses from
continuing operations before income taxes for the years ended December 31, 2005, 2004, and 2003. The reasons for the differences are presented below (in
thousands):
  
Computed “expected” Federal tax benefit (expense) from continuing operations $19,090 $8,104 $ 2,880
State income tax benefit (expense), net of
Federal income tax expense 167 (358)131
Dividends and loss on redemption on preferred stock (4,291) (6,862)(3,077)
Dividends received deduction 153 103 94
Rate change 1,585 — —
Change in valuation allowance (Federal and state) 66,011 (1,858) —
Other 381 355 208
Total income tax benefit (expense) from continuing operations $83,096 $(516)$ 236
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