Classmates.com 2010 Annual Report Download - page 141

Table of Contents
UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
9. INCOME TAXES (Continued)
The significant components of net deferred tax balances were as follows (in thousands):
The Company had a valuation allowance of $7.5 million and $6.5 million at December 31, 2010 and 2009, respectively, to reduce deferred
tax assets to an amount that is more likely than not to be realized in future periods. The valuation allowance relates primarily to foreign net
operating losses and foreign tax credits.
F-35
December 31,
2010
2009
Deferred tax assets:
Net operating loss and foreign tax
credit carryforwards
$
54,051
$
58,227
Stock
-
based compensation
3,156
4,949
Other, net
11,447
13,356
Total gross deferred tax assets
68,654
76,532
Less: valuation allowance
(7,510
)
(6,541
)
Total deferred tax assets after
valuation allowance
61,144
69,991
Deferred tax liabilities:
Amortization of acquired intangible
assets
(87,954
)
(94,905
)
Depreciation and amortization
(1,667
)
(4,077
)
Total deferred tax liabilities
(89,621
)
(98,982
)
Net deferred tax liabilities
$
(28,477
)
$
(28,991
)
December 31,
2010 2009
Current portion of deferred tax assets, net
$
14,200
$
15,797
Long
-
term portion of deferred tax
liabilities, net
(42,677
)
(44,788
)
Net deferred tax liabilities
$
(28,477
)
$
(28,991
)