Avon 2010 Annual Report Download - page 81

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Income from continuing operations, before taxes for the years ended December 31 was as follows:
2010 2009 2008
United States $ (228.7) $ (156.0) $ (31.0)
Foreign 1,174.1 1,069.7 1,254.0
Total $ 945.4 $ 913.7 $1,223.0
The provision for income taxes for the years ended December 31 was as follows:
2010 2009 2008
Federal:
Current $ (20.8) $ (17.5) $ (45.9)
Deferred (56.3) (42.1) (6.3)
(77.1) (59.6) (52.2)
Foreign:
Current 470.5 476.2 470.8
Deferred (38.5) (121.4) (78.9)
432.0 354.8 391.9
State and other:
Current 3.6 2.1 1.2
Deferred (8.3) (2.8) (.4)
(4.7) (0.7) .8
Total $350.2 $ 294.5 $340.5
The effective tax rate for the years ended December 31 was as follows:
2010 2009 2008
Statutory federal rate 35.0% 35.0% 35.0%
State and local taxes, net of federal tax benefit (.3) .2 .2
Taxes on foreign income, including translation (2.1) (4.9) (3.1)
Tax audit settlements, refunds, and amended
returns (2.5) (.7) (4.5)
Net change in valuation allowances (.2) 3.4 –
Venezuela devaluation and highly inflationary
accounting 6.0 – –
Other 1.1 (.8) .2
Effective tax rate 37.0% 32.2% 27.8%
At December 31, 2010, we had tax loss carryforwards of $1,612.7. The loss carryforwards expiring between 2011 and 2025 are $128.2 and
the loss carryforwards which do not expire are $1,484.5. We also had minimum tax credit carryforwards of $32.6 which do not expire,
business credit carryforwards of $10.0 that will expire between 2020 and 2030, and foreign tax credit carryforwards of $178.8 that will
expire between 2016 and 2020.
A V O N 2010 F-17