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Table of Contents
UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
10. INCOME TAXES (Continued)
The provision for income taxes was comprised of the following (in thousands):
The following is a reconciliation of the statutory federal income tax rate to the Company's effective income tax rate (in thousands):
F-36
Year Ended December 31,
2009
2008
2007
Current:
Federal
$
41,987
$
37,784
$
27,278
State
6,617
4,513
6,389
Foreign
8,442
(2,453
)
—
57,046
39,844
33,667
Deferred:
Federal
(5,822
)
(15,359
)
6,070
State
(1,533
)
(9
)
803
Foreign
(1,547
)
(1,189
)
375
(8,902
)
(16,557
)
7,248
Provision for income taxes
$
48,144
$
23,287
$
40,915
Year Ended December 31,
2009
2008
2007
Federal taxes at statutory rate
of 35%
$
41,380
$
(24,980
)
$
34,541
State taxes, net
3,493
912
4,660
Nondeductible executive
compensation
3,958
5,796
1,107
Goodwill impairment
—
39,900
—
Effects of foreign income
(2,706
)
(104
)
(75
)
Foreign distribution
8,127
828
—
Foreign tax credit
(5,871
)
(294
)
—
Changes in uncertain tax
positions
(2,669
)
1,942
336
Changes in valuation
allowance
2,419
(1,053
)
1,821
Benefits of tax exempt
income
—
(
726
)
(2,179
)
Other differences, net
13
1,066
704
Provision for income taxes
$
48,144
$
23,287
$
40,915