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## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

(thousands of dollars unless otherwise indicated) 

The provisions for income taxes included estimated taxes payable on that portion of retained earnings of foreign subsidiaries expected to be received by the Com- pany. The effect of the repatriation provisions of the American Jobs Creation Act of 2004 and the provisions of APB No. 23, “Accounting for Income Taxes – Special Areas,” was $2,693 in 2004. A provision was not made with respect to $13,399 of retained earnings at Decem- ber 31, 2004 that have been invested by foreign sub- sidiaries. It was not practicable to estimate the amount of unrecognized deferred tax liability for undistributed foreign earnings. 

Significant components of income before income taxes, minority interest and cumulative effect of change in accounting principle as used for income tax purposes, were as follows: 

<img src='content_image/125623.jpg'>

A reconciliation of the statutory federal income tax rate to the effective tax rate follows: 

## NOTE 15—NET INCOME PER COMMON SHARE 

<img src='content_image/125624.jpg'>

<img src='content_image/125622.jpg'>

A portion of the transitional impairment charge recorded in the first quarter of 2002 (see Note 2) related to goodwill that was not deductible for tax purposes. This is not reflected in the statutory federal income tax rate reconciliation above because the transitional impairment charge was recorded as a cumulative effect of change in accounting principle. The remaining por- tion of the impairment charge created federal, state, for- eign and local deferred tax benefits in the amount of $64,476 due to the temporary differences between the carrying amounts for financial statement purposes and amounts used for tax purposes. The increase in the ESOP dividends deduction was the result of increases to the annual dividend payable for 2004 versus 2003 and changes in plan design which resulted in an increase in deductible dividends. 

