Health Net 2004 Annual Report Download - page 118

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HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 10—Income Taxes
Significant components of the provision for income taxes are as follows for the years ended December 31 (amounts in
thousands):
A reconciliation of the statutory federal income tax rate and the effective income tax rate on income is as follows for the years
ended December 31:
F-32
2004
2003
2002
Current:
Federal
$46,630
$165,880
$82,085
State
10,584
33,790
15,433
Total current
57,214
199,670
97,518
Deferred:
Federal
(26,132)
(417)
9,987
State
(6,270)
(5,362)
9,869
Total deferred
(32,402)
(5,779)
19,856
Total provision for income taxes
$24,812
$193,891
$117,374
2004
2003
2002
Statutory federal income tax rate
35.0%
35.0%
35.0%
State and local taxes, net of federal income tax effec
t
4.1
3.6
4.7
Tax exempt interest income
(0.3)
(0.1)
(0.1)
Goodwill and intangible assets amortization
0.5
0.1
0.1
Examination settlements
(2.7)
(1.9)
(6.0)
Other, ne
t
0.2
0.8
(0.3)
Effective income tax rate
36.8%
37.5%
33.4%