CompUSA 2010 Annual Report Download - page 98

47
Non
-current:
Accelerated depreciation $ 6,107 $ 1,858
Other 73
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Total non-current liabilities $ 6,180 $ 1,858
The Company has not provided for federal income taxes applicable to the undistributed earnings of its foreign subsidiaries of
approximately $48.5 million as of December 31, 2010, since these earnings are considered indefinitely reinvested. The Company
has foreign net operating loss carryforwards which expire through 2025. The Company records these benefits as assets to the
extent that utilization of such assets is more likely than not; otherwise, a valuation allowance has been recorded. The Company
has also provided valuation allowances for certain state deferred tax assets and net operating loss carryforwards where it is not
likely they will be realized.
As of December 31, 2010, the Company has recorded valuation allowances of approximately $29.3 million including valuations
against net operating loss carryforwards incurred in foreign and state jurisdictions of $20.4 million and $2.1 million, respectively,
deductible temporary differences incurred in foreign jurisdictions of $6.4 million, the majority of which relates to the WStore
acquisition, and $0.4 million for other state deductible temporary differences.
Valuation allowances increased in 2009 by $20.9 million as a result of the WStore acquisition and the valuation allowances
recorded against acquired deferred tax assets and net operating losses. Carry forward losses of $1 million were utilized in 2009
for which valuation allowances had been previously provided.
The Company is routinely audited by federal, state and foreign tax authorities with respect to its income taxes. The Company
regularly reviews and evaluates the likelihood of audit assessments. The Company’ s federal income tax returns have been audited
through 2006. The Company has not signed any consents to extend the statute of limitations for any subsequent years. The
Company’ s significant state tax returns have been audited through 2005. The Company considers its significant tax jurisdictions
in foreign locations to be the United Kingdom, Canada, France, Italy and Germany. The Company remains subject to
examination in the United Kingdom for years after 2008, in Canada for years after 2005, in France for years after 2008, in Italy
for years after 2006, in Netherlands for years after 2005 and in Germany for years after 2008.
In accordance with the guidance for accounting for uncertainty in income taxes the Company recognizes the tax benefits from an
uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing
authorities based on the technical merits of the position. The tax benefit of an uncertain tax position that meets the more-likely-
than-not recognition threshold is measured as the largest amount that is greater than 50% likely to be realized upon settlement
with the tax authority. To the extent we prevail in matters for which accruals have been established or are required to pay amounts
in excess of accruals, our effective tax rate in a given financial statement period could be affected. There were no accrued interest
or penalty charges related to unrecognized tax benefits recorded in income tax expense in 2010 or 2009. As of December 31, 2010
the Company had no uncertain tax positions.
The following table details activity of the Company’ s uncertain tax positions during 2009:
December 31,
2009
Balance beginning of year $ 916
Decreases related to settlements with taxing authorities (916)
Balance end of year $
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