04-HP-876_newMDA.qxd 12/15/04 3:04 PM Page 33 The provision for income taxes totaled $4.4 million in 2004, $14.6 million in 2003, and $40.6 million in 2002. Effective income tax rates on income from continuing operations were 55 percent in 2004, 43 percent in 2003, and 44 percent in 2002. Effective income tax rates are higher for the Company’s  international operations than for its U.S. operations. As a result, the aggregate effective rate is higher in years when international operations make up a higher percentage of financial operating profit. I nternational operating profit, as a percent of total Company operating profit, was 68 percent in 2004, eight per- cent in 2003, and 15 percent in 2002. (See Note 5 of the Financial Statements). COMPARISON OF THE YEARS ENDED SEPTEMBER 30, 2004 AND 2003 Operating statistics for per day revenue, expense and mar gin do not include reimbursements of “out-of-pocket” expenses. 2004 2003 % Change U.S. LAND OPERATIONS (in thousands, except operating statistics) Revenues $347,793 $273,993 26.9% Direct operating expenses 246,177 201,398 22.2 General and administrative expense 7,765 9,304 (16.5) Depreciation 56,528 44,726 26.4 Operating profit $  37,323 $ 18,565  101.0 Operating Statistics: Activity days 27,472 22,588 21.6% Average rig revenue per day $ 11,700 $ 11,436 2.3 Average rig expense per day $ 8,001 $ 8,221 (2.7) Average rig margin per day $ 3,699 $ 3,215 15.1 Number of owned rigs at end of period 87 83 4.8 Rig utilization 87% 81% 7.4 34