Memorex 2010 Annual Report Download - page 72

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Employee Retirement Savings Plans
We sponsor a 401(k) retirement savings plan under which eligible United States employees may choose to save up
to 20 percent of eligible compensation on a pre-tax basis, subject to certain IRS limitations. From January 1 to March 31,
2009, we matched 100 percent of employee contributions up to the first three percent of eligible compensation plus
50 percent on the next two percent of eligible compensation. Between April 2009 and December 31, 2009, we matched
50 percent of employee contributions on the first three percent of eligible compensation and 25 percent on the next two
percent of eligible compensation in our stock. In November 2009, we determined it was appropriate to reinstate our 401(k)
Plan matching contribution to the rate applied prior to April 2009. The reinstatement became effective January 1, 2010 and
continued through December 31, 2010. Effective January 1, 2011, we will match 100 percent of employee contributions up
to the first five percent of eligible compensation.
We also sponsor a variable compensation program in which we may, at our discretion, contribute up to three percent
of eligible employee compensation to employees’ 401(k) retirement accounts, depending upon our performance. No
contributions have been made under the variable compensation program for the years ended 2010, 2009 or 2008.
We used shares of treasury stock to match employee 401(k) contributions for 2010, 2009 and 2008. Total expense
related to the use of shares of treasury stock to match employee 401(k) contributions was $1.7 million, $1.3 million and
$2.6 million in 2010, 2009 and 2008, respectively.
Note 10 — Income Taxes
The components of loss from continuing operations before income taxes were as follows:
2010 2009 2008
Years Ended December 31,
(In millions)
U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(114.3) $(116.0) $(51.6)
International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37.9 39.3 9.9
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (76.4) $ (76.7) $(41.7)
The components of the income tax provision (benefit) from continuing operations were as follows:
2010 2009 2008
Years Ended December 31,
(In millions)
Current
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12.1 $(27.0) $(9.4)
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8 (6.4) (1.8)
International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.0 2.7 7.1
Deferred
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.7 (6.6) (5.7)
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.6 (0.9) (0.5)
International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7 5.5 6.4
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $81.9 $(32.7) $(3.9)
69
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)