Clearwire 2010 Annual Report Download - page 93

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8. Income Taxes
The income tax provision consists of the following for the years ended December 31, 2010, 2009 and 2008 (in
thousands):
2010 2009 2008
Year Ended December 31,
Current taxes:
International ........................................... $ 335 $(389) $ 325
Federal . . . ............................................ — — —
State ................................................. 700 148 —
Total current taxes ..................................... 1,035 (241) 325
Deferred taxes:
International ........................................... (1,191) 953 (87)
Federal . . . ............................................ — — 51,686
State ................................................. — — 9,683
Total deferred taxes .................................... (1,191) 953 61,282
Income tax (benefit) provision ............................ $ (156) $ 712 $61,607
The income tax rate computed using the federal statutory rates is reconciled to the reported effective income
tax rate as follows:
2010 2009 2008
Year Ended December 31,
Federal statutory income tax rate ................................ 35.0% 35.0% 35.0%
State income taxes (net of federal benefit) .......................... 0.7 0.8 (1.5)
Non-controlling interest ....................................... (27.6) (25.9) —
Other, net.................................................. 0.1 0.7 0.2
Valuation allowance .......................................... (8.2) (10.7) (50.3)
Effective income tax rate ...................................... 0.0% (0.1)% (16.6)%
88
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)