Classmates.com 2010 Annual Report Download - page 140

Table of Contents
UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
9. 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-34
Year Ended December 31,
2010
2009
2008
Current:
Federal
$
25,144
$
41,987
$
37,784
State
2,743
6,617
4,513
Foreign
8,264
8,442
(2,453
)
36,151
57,046
39,844
Deferred:
Federal
2,530
(5,822
)
(15,359
)
State
(981
)
(1,533
)
(9
)
Foreign
(1,472
)
(1,547
)
(1,189
)
77
(8,902
)
(16,557
)
Provision for income taxes
$
36,228
$
48,144
$
23,287
Year Ended December 31,
2010
2009
2008
Federal taxes at statutory rate
of 35%
$
31,470
$
41,380
$
(24,980
)
State taxes, net
2,846
3,493
912
Nondeductible executive
compensation
3,873
6,377
4,743
Goodwill impairment
—
—
39,900
Effects of foreign income
(3,321
)
(2,706
)
(104
)
Foreign distribution
9,636
8,127
828
Foreign tax credit
(6,807
)
(5,871
)
(294
)
Changes in uncertain tax
positions
(1,448
)
(2,669
)
1,942
Benefits of tax exempt
income
—
—
(
726
)
Other differences, net
(21
)
13
1,066
Provision for income taxes
$
36,228
$
48,144
$
23,287