Notes to Consolidated Financial Statements 59 The income tax provision attributable to income from continuing operations before income taxes is as follows: The major tax effected components of the Company’s net deferred tax liability are as follows: Reconciliation of the federal income tax statutory rate and the Company’s effective tax rate is as follows: For U.S. federal income tax return purposes, the Company has a net operating loss carryforward of $4 million, which will begin to expire in 2009. For state income tax purposes, the Company has a New Jersey net operating loss carryforward of $122 million, which equates to a deferred tax asset of $7 million, after federal tax effect, and before valuation allowance. The New Jersey net operating loss carryforwards begin to expire in 2005. Y ear Ended December 31 (In thousands) 2004 2003 2002 Current—federal . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 200,419 $ 68,760 $ 50,352 Deferred—federal . . . . . . . . . . . . . . . . . . . . . . . . . . .  (9,155) 40,142 111,981 Provision for federal income taxes . . . . . . . . . . . . .  191,264 108,902 162,333 Current—state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2,851 5,167 6,169 Deferred—state . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  11,420 (682) (51) Provision for state income taxes. . . . . . . . . . . . . . . 14,271 4,485 6,118 Current—foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . .  424 — — Deferred—foreign . . . . . . . . . . . . . . . . . . . . . . . . . . .  — — — Provision for foreign income taxes . . . . . . . . . . . . .  424 — — $ 205,959 $113,387 $ 168,451 At December 31 (In thousands) 2004 2003 Deferred tax assets—federal and state Bad debt reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 25,168 $ 34,502 Deferred compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  25,131 21,170 Net operating loss carryforward . . . . . . . . . . . . . . . . . . . . . . . .  8,569 9,929 Preopening and start-up costs . . . . . . . . . . . . . . . . . . . . . . . . .  4,305 7,085 Accruals, reserves and other . . . . . . . . . . . . . . . . . . . . . . . . . . 35,162 39,280 98,335 111,966 Less: Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,608) (9,682) 92,727 102,284 Deferred tax liabilities—federal and state Property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  (1,708,753) (1,680,121) Investments in unconsolidated affiliates . . . . . . . . . . . . . . . . . .  (130,056) (116,587) Unremitted earnings of foreign subsidiary . . . . . . . . . . . . . . . .  (11,150) — Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (15,848) (21,862) (1,865,807) (1,818,570) Deferred taxes—foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  — 146 Net deferred tax liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1,773,080) $ (1,716,140) Y ear Ended December 31 2004 2003 2002 Federal income tax statutory rate . . . . . . . . . . . . . . . . . . 35.0% 35.0% 35.0% State income tax (net of federal benefit) . . . . . . . . . . . . . 1.7 0.8 0.9 Reversal of reserves for prior tax years . . . . . . . . . . . . . . (1.0) (3.9) — Permanent and other items . . . . . . . . . . . . . . . . . . . . . . 1.4 1.1 0.9 37.1% 33.0% 36.8%