Hertz 2008 Annual Report Download - page 181

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 7—Taxes on Income
The components of income (loss) before income taxes and minority interest for the periods were as
follows (in thousands of dollars):
Years ended December 31,
2008 2007 2006
Domestic ....................................... $(1,166,682) $189,978 $ 61,056
Foreign ........................................ (216,125) 196,842 139,595
Total ......................................... $(1,382,807) $386,820 $200,651
The total provision (benefit) for taxes on income consists of the following (in thousands of dollars):
Years ended December 31,
2008 2007 2006
Current:
Federal ...................................... $ (1,536) $ 10,500 $ 6,576
Foreign ...................................... 36,527 18,346 28,527
State and local ................................. 2,972 13,982 2,537
Total current ................................. 37,963 42,828 37,640
Deferred:
Federal ...................................... (192,870) 66,906 28,499
Foreign ...................................... (12,665) 8,374 11,148
State and local ................................. (29,275) (15,537) (9,293)
Total deferred ................................ (234,810) 59,743 30,354
Total provision (benefit) ........................ $ (196,847) $102,571 $ 67,994
The principal items of the U.S. and foreign net deferred tax liability at December 31, 2008 and 2007 are as
follows (in thousands of dollars):
2008 2007
Deferred Tax Assets:
Employee benefit plans ................................. $ 101,779 $ 155,478
Net operating loss carryforwards ........................... 464,738 490,843
Foreign tax credit carryforwards ........................... 20,786 21,177
Federal and state tax credit carryforwards .................... 8,782 5,379
Accrued and prepaid expenses ............................ 264,907 161,718
Total Deferred Tax Assets ................................ 860,992 834,595
Less: Valuation Reserves ................................ (123,210) (69,879)
Total Net Deferred Tax Assets ............................. 737,782 764,716
Deferred Tax Liabilities:
Depreciation on tangible assets ............................ (1,165,832) (1,414,946)
Intangible assets ...................................... (1,053,816) (1,146,869)
Total Deferred Tax Liabilities .............................. (2,219,648) (2,561,815)
Net Deferred Tax Liability ............................... $(1,481,866) $(1,797,099)
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