Income Taxes
Nine Months Ended September 30, 2003
U.S. Argentina Canada Total
Federal $ (.9) $ (8.1) $ - $ (9.0)
State - - - - Total (.9) (8.1) - (9.0)
Deferred Taxes 104.7 (.7) - 104.0
Tax Benefit (Provision)* $ 103.8 $ (8.8) $ - $ 95.0
Estimated Cash Taxes** $2 - $4 $10 - $12 $0 - $1 $12 - $17
* Excludes $1.3 million provision associated with the cumulative effect of change in accounting principle from the adoption of SFAS 143. Future deferred income tax expense in the U.S. will approximate statutory rates.
** Pioneer has net operating losses in the U.S. and Canada. Consequently, for federal tax purposes, the Company will only be subject to alternative minimum tax in the U.S. at an effective rate of 2% and minimal federal taxes in Canada. Pioneer will continue to be subject to taxes in Argentina and to state and local taxes in each jurisdiction.