OfficeMax 2011 Annual Report Download - page 91

During 2011, 2010 and 2009, the Company made cash payments for income taxes, net of refunds received,
as follows:
2011 2010 2009
(thousands)
Cash tax payments (refunds), net .................................... $13,524 $(5,026) $(71,026)
The income tax expense attributable to income (loss) from continuing operations for the years ended
December 31, 2011, December 25, 2010 and December 26, 2009 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:
2011 2010 2009
(thousands)
Income tax (expense) benefit at statutory rate ............................ $(20,173) $(40,507) $10,617
State taxes (expense) benefit, net of federal effect ........................ (723) (2,346) 2,516
Foreign tax provision differential ..................................... 4,354 338 1,085
Effect on deferreds due to tax restructuring ............................. 5,960 — —
Net operating loss valuation allowance and credits ....................... (10,818) (590) (2,484)
Change in tax contingency liability .................................... (695) (308) (3,390)
Tax settlement, net of other charges ................................... — — 14,880
Repatriation of foreign earnings, net ................................... (2,517) (2,291) 3,428
ESOP dividend deduction ........................................... 743 885 944
Other permanent items, net .......................................... 4,352 2,947 1,162
Total income tax (expense) benefit ................................ $(19,517) $(41,872) $28,758
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and
deferred tax liabilities at year-end are presented in the following table:
2011 2010
(thousands)
Impairment of note receivable .............................................. $278,269 $ 286,207
Minimum tax and other credits carryover ..................................... 228,224 230,267
Net operating loss carryovers ............................................... 151,787 109,423
Deferred gain on Boise Investment .......................................... 68,936 69,925
Compensation obligations ................................................. 172,403 146,369
Operating reserves and accrued expenses ..................................... 55,679 63,205
Investments and deferred charges ........................................... 3,441 5,136
Property and equipment ................................................... 1,558 4,937
Allowances for receivables ................................................. 12,306 12,764
Inventory ............................................................... 4,216 4,167
Tax goodwill ............................................................ 2,907 4,587
Other .................................................................. 6,891 4,804
Total deferred tax assets ................................................... $986,617 $ 941,791
Valuation allowance on NOLs and credits ..................................... $ (25,543) $ (14,726)
Total deferred tax assets after valuation allowance .............................. $961,074 $ 927,065
Timberland installment gain related to Wachovia Note ........................... $(260,040) $(266,798)
Timberland installment gain related to Lehman Note ............................ (269,284) (276,965)
Undistributed earnings .................................................... (5,823) (5,817)
Total deferred tax liabilities ................................................ $(535,147) $(549,580)
Total net deferred tax assets ................................................ $425,927 $ 377,485
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