eTrade 2006 Annual Report Download - page 127

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NOTE 19—INCOME TAXES
The components of income tax expense from continuing operations are as follows (dollars in thousands)
Year Ended December 31,
2006 2005 2004
Current:
Federal $211,984 $158,050 $ 95,862
Foreign (56) 3,518 4,442
State 8,394 19,237 14,540
Total current 220,322 180,805 114,844
Deferred:
Federal 82,433 45,200 44,086
Foreign (5,996) (1,264) 2,328
State 5,224 5,082 20,506
Total deferred 81,661 49,018 66,920
Income tax expense from continuing operations $301,983 $229,823 $181,764
The Company is subject to examination by the Internal Revenue Service (“IRS”), taxing authorities in
foreign countries and states in which the Company has significant business operations. The Company regularly
assesses the likelihood of additional tax deficiencies in each of the taxing jurisdictions resulting from ongoing
and subsequent years’ examinations. Included in current tax expense are charges to accruals for expected tax
contingencies in accordance with SFAS No. 5.
The components of income before income taxes and discontinued operations are as follows (dollars in
thousands):
Year Ended December 31,
2006 2005 2004
Domestic $893,382 $653,131 $545,197
Foreign 35,415 22,995 19,290
Total income before income taxes and discontinued
operations $928,797 $676,126 $564,487
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