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secured Federal Reserve Bank short-term discount window and $63.8 million available in secured FHLBshort-term borrowing capacity (see Note 6 – Investments).Note 14 – Taxes on IncomeTaxes on income were as follows:(in thousands)for the fiscal years ended September 30, 2009 2008 2007Current expenseFederal ................................................. $223,600 $409,433 $422,770State ................................................... 42,855 61,860 48,635Foreign ................................................. 96,901 169,856 169,838Deferred expense ............................................. 20,958 7,227 51,120Total Provision for Income Taxes ........................... $384,314 $648,376 $692,363Included in income before taxes was $594.9 million, $1,197.9 million and $1,298.1 million of pre-taxforeign income for fiscal years 2009, 2008 and 2007. The provision for U.S. income taxes in fiscal years2009, 2008 and 2007 included benefits of $1.1 million, $4.5 million and $5.5 million related to theutilization of net operating loss carry-forwards. In fiscal years 2009, 2008 and 2007, the Company’s incometaxes payable for federal, state and foreign purposes have been reduced by tax benefits of $7.3 million,$33.6 million and $38.6 million associated with its stock-based compensation plans. The benefits wererecorded as an increase in capital in excess of par value.The significant components of deferred tax assets and deferred tax liabilities were as follows:(in thousands)as of September 30, 2009 2008Deferred Tax AssetsState taxes ............................................................ $ 8,688 $ 13,491Allowance for loan losses ................................................ 3,028 3,097Deferred compensation and employee benefits ............................... 42,376 38,940Stock-based compensation ............................................... 24,809 25,140Net operating loss carry-forwards ......................................... 21,167 18,259Tax benefit for uncertain tax positions ...................................... 28,849 25,352Residual interests from securitization transactions ............................ 13,012 12,009Unrealized losses on investments .......................................... 2,474 9,704Other ................................................................ 13,247 959Total deferred tax assets ................................................. 157,650 146,951Valuation allowance for net operating loss carry-forwards ...................... (14,143) (10,812)Deferred tax assets, net of valuation allowance ............................... 143,507 136,139Deferred Tax LiabilitiesDepreciation on fixed assets .............................................. 18,054 16,817Goodwill and other purchased intangibles ................................... 204,915 191,570Deferred commissions .................................................. 39,685 23,175Employee compensation ................................................. 12,162 24,366Other ................................................................ 18,579 8,781Total deferred tax liabilities .............................................. 293,395 264,709Net Deferred Tax Liability ......................................... $149,888 $128,57097