Blizzard 2009 Annual Report Download - page 73

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61
16.IncomeTaxes
ThroughJuly9,2008,VivendiGames’resultswereincludedintheconsolidatedfederaland
certainforeign,stateandlocalincometaxreturnsfiledbyVivendioritsaffiliates.However,theincometax
provisionisreflectedinourconsolidatedstatementsofoperations,includingtheimpactofU.S.net
operatinglossescarriedforward,asiftheamountswerecomputedonaseparatestandalonebasis.
UnderVivendigrouppolicy,anyU.S.netoperatinglossesgeneratedbyVivendiGameswere
surrenderedtoVivendiorVivendi’ssubsidiariesintheyearoflosswithnobenefitforsuchlossesbeing
recordedinVivendiGames’incometaxprovision.VivendiGames’remainingseparateU.S.netoperating
losscarryforwardtaxbenefitof$79millionwasrecognizedin2007throughareductioninthevaluation
allowance.
Domesticandforeignincomebeforeincometaxesanddetailsoftheincometaxexpense(benefit)
areasfollows(amountsinmillions):
Fortheyearsended
December31,
2009
2008
2007
Income(loss)beforeincometaxbenefit:
Domestic...................................................................................
$(237)
$(131)
$144
Foreign......................................................................................
229
(56)
31
$(8)
$(187)
$175
Incometaxexpense(benefit):
Current:
Federal..................................................................................
$237
$251
$90
State......................................................................................
46
49
7
Foreign..................................................................................
14
41
24
Totalcurrent................................................................
297
341
121
Deferred:
Federal..................................................................................
(309)
(294)
(55)
State......................................................................................
(75)
(67)
(2)
Foreign..................................................................................
(12)
(62)
(7)
Releaseofvaluationallowance................................
(22)
—
(30)
Changeinvaluationallowancerelatedtonet
operatinglosssurrendered................................................
—
—
(79)
Totaldeferred................................................................
(418)
(423)
(173)
Addbackbenefitcreditedtoadditionalpaidin
capital:
Excesstaxbenefitassociatedwithstockoptions......................
—
2
—
Incometaxbenefit................................................................
$(121)
$(80)
$(52)
FortheyearendedDecember31,2009,wehaveapretaxdomesticlossof$237millionand
foreignpretaxincomeof$229million.TheU.S.pretaxlossisprimarilydrivenbystockoptionexpense,
intangibleassetamortizationrecordeddomesticallyaswellasanimpairmentofintangibleassetsinthe
currentyear.
 