OfficeMax 2008 Annual Report Download - page 70

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7. Income Taxes
The income tax (provision) benefit attributable to income (loss) from continuing operations as
shown in the Consolidated Statements of Income (Loss) includes the following components:
2008 2007 2006
(thousands)
Current income tax (provision) benefit
Federal ....................................... $(10,111) $ (25,710) $ (10,014)
State ......................................... (24,166) (11,380) (4,079)
Foreign ....................................... (23,282) (24,582) (17,816)
(57,559) (61,672) (31,909)
Deferred income tax (provision) benefit
Federal ....................................... 274,376 (61,882) (31,521)
State ......................................... 76,129 (4,785) (6,428)
Foreign ....................................... 13,535 3,057 1,117
364,040 (63,610) (36,832)
$306,481 $(125,282) $(68,741)
There was no impact due to discontinued operations during 2008 and 2007. Income tax benefit
attributable to loss from discontinued operations was $10.6 million for 2006.
During 2008, 2007 and 2006, the Company made cash payments for income taxes, net of
refunds received, of $91.5 million, $89.5 million and $0.6 million, respectively.
The income tax provision attributable to income (loss) from continuing operations for the years
ended December 27, 2008, December 29, 2007 and December 30, 2006 differed from the amounts
computed by applying the statutory U.S. Federal income tax rate of 35% to pre-tax income (loss)
from continuing operations as a result of the following:
2008 2007 2006
(thousands)
Tax (provision) benefit at statutory rate .................. $ 690,340 $ (118,184) $ (60,157)
State taxes, net of federal effect ....................... 29,041 (11,030) (5,907)
Foreign tax provision differential ....................... (3,283) 106 (5,262)
Impact of goodwill impairment ........................ (418,920) — —
NOL valuation allowance and credits ................... 1,291 434 (6,498)
Change in tax contingency liability ..................... (3,394) 755 1,925
Tax settlement, net of other charges .................... 6,830 1,582 5,240
ESOP dividend deduction ........................... 1,166 1,317 1,413
Other, net ....................................... 3,410 (262) 505
$ 306,481 $(125,282) $(68,741)
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