4 joint ventures and partnerships below is a summary of the unaudited balance sheets of harbor bay isle associates a part nership formed to develop a residential community in the san francisco area and of all joint ventures and partnerships combined as of october 31 1974 harbor bay isle total joint associates ventures and in thousands 50 owned partnerships current assets other assets principally land current liabilities . . . long-term liabilities . net worth * long-term liabilities consist of assessment liens payable to a reclamation district which issued bonds to raise funds for developing the project utah acquired substantially all of these bonds and they are included in long-term receivables and other in the accompanying bal ance sheet because of the difficulties experienced in developing this project utah has pro vided a significant reserve on its investment in the bonds 5 provision for employees retirement program the utah retirement program consists of a profit sharing plan a stock investment plan and a retirement plan the retirement plan is a pension program in which utah is required to con tribute sufficient funds each year to fully fund the liabilities of the plan annual contributions to the profit sharing plan and the stock investment plan are based upon a profit sharing for mula there are no unamortized past service costs with respect to the retirement plan certain domestic operations provide pension plans resulting from collective bargaining agreements and two subsidiaries operating in foreign countries have established separate retirement plans fund assets of these plans at october 31 1974 approximated vested benefits at that date 6 long-term liabilities long-term liabilities at october 31 1974 and 1973 consisted of in thousands unsecured — notes payable to banks 9.3 weighted average due in varying installments to 1980 a b notes payable to insurance company 7.6 due in varying installments from 1975 to 1988 8 guaranteed sinking fund debentures due march 15 1987 c ¦ 7v2 guaranteed notes due march 15 1979 5 subordinated guaranteed debentures called for redemption on june 7 1974 advances under gas purchase contracts — noninterest bearing other notes and contracts less — current portion secured by assets — notes payable to banks 12 due through 1978 secured by assets other notes and contracts less — current portion a interest rates on certain notes change with the prime rate or its foreign money market equivalent and range from 0 to 1 % above such rates b utah believes that competitive conditions require the maintenance of compensating bal ances not legally restricted under certain loan agreements depending upon the interest rates of the credits compensation realized by the banks from the performance of other serv ices and the level of use of the credits the compensating balances range between 10 and 20 of the lines of credit at the level of borrowing under these agreements as of october 31 1974 24.5 million approximately 2.4 million of the cash balance shown in the con solidated balance sheet represents compensating balances after adjusting for the differ ences of float between utah's records and those of the banks c subject to redemption through a sinking fund to which payments must be made beginning in 1977 installments due on long-term liabilities for the five years subsequent to october 31 1974 are as follows in thousands 1975 . 1976 . 1977 . 1978 . 1979 . $ 9,643 30,723 30,679 29,543 42,930 utah capitalizes financing costs of identifiable new borrowings associated with the develop ment of new mining projects if these costs had been charged directly to expense the effect would have been to reduce net income by 2,084,000 in 1974 and 152,000 in 1973 after deduc tion of the amortization of interest capitalized in prior years and the related offsetting income tax effect 7 income taxes the provision for income taxes consisted of in thousands 1974 1973 federal - current $ 1,518 $ 1,416 deferred 346 4,112 foreign — current 34,465 13,105 deferred 33,747 21,032 70,076 31,441 deferred income tax expense results from differences in the accounting period in which cer tain revenues costs and expenses are recognized under utah's financial and tax accounting methods the sources of these differences for the year ended october 31 1974 and the tax effect of each were as follows in thousands mine development costs 14,373 accelerated deductions of foreign mining equipment and facilities 20,871 other 1,151 34,093 for the year ended october 31 1974 the provision for income taxes amounted to 70,076,000 an effective tax rate of 41.96 the tax is less than that computed by applying the 48 u.s federal income tax rate to income before income taxes principally because of u.s intangible drilling costs and statutory depletion the 85 domestic dividend deduction on earnings of affiliates income earned in australia being subject to a lower tax rate and a canadian tax holiday for mining income earned in canada through december 31 1973 8 earnings per share earnings per common and common equivalent share were computed based upon the weighted average number of shares of common stock and common stock equivalents out standing during each year 31,434,755 for 1974 and 31,282,480 for 1973 the common stock equivalents are attributable to the assumed conversion of the 30 cumulative convertible pre 33