Provision for income taxes consisted of the following (in thousands):
Years Ended December 31,
2000 1999 1998
Federal:
Current $ 63,606 $ 46,656 $ 37,936
Deferred 9,075 11,146 5,197
72,681 57,802 43,133
State:
Current 4,543 7,363 9,261
Deferred 648 1,759 1,244
5,191 9,122 10,505
$ 77,872 $ 66,924 $ 53,638
The Company's effective tax rate differs from the federal statutory rate for the
following reasons:
Years Ended December 31,
2000 1999 1998
Income taxes at federal statutory rate 35.0% 35.0% 35.0%
State taxes, net of federal benefit 2.5 3.3 4.0
Earnings not subject to corporate income taxes (1.2) (0.8)
Other, net (1.9) (2.1) (3.5)
Total 35.6% 35.0% 34.7%
The income tax effects of temporary differences that give rise to significant
portions of deferred tax assets and liabilities are as follows:
December 31
2000 1999
Deferred income tax assets (in thousands):
Insurance reserves $ 5,076 $ 6,737
Advertising expense reserves 1,544 1,164
Intangibles 12,705 13,285
Other, net 1,830 852
21,155 22,038
Deferred income tax liabilities (in thousands):
Depreciation 35,537 26,697
35,537 26,697
Net deferred tax liability $ (14,382) $ (4,659)
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