Radio Shack 2012 Annual Report Download - page 65

63
unrecognized deferred tax liability related to these earnings
was approximately $2.0 million.
A reconciliation of the consolidated liability for gross
unrecognized income tax benefits (excluding interest) from
January 1, 2010, to December 31, 2012, is as follows:
(In millions) 2012 2011 2010
Balance at beginning of year $ 27.3 $ 25.9 $ 26.5
Increases related to
prior period tax positions 96.9 1.8 --
Decreases related to
prior period tax positions (2.9)
(0.4) (0.4)
Increases related to
current period tax positions
19.3 1.8 1.7
Settlements (0.3)
(0.6) (1.1)
Lapse in applicable
statute of limitations (0.5)
(1.2) (0.8)
Balance at end of year $ 139.8 $ 27.3 $ 25.9
In 2012 we took certain tax positions that resulted in
approximately $97 million of tax benefits on our 2011
federal and state tax returns. In connection with these tax
positions, we recorded a liability for unrecognized tax
benefits, of which approximately $87 million was classified
as other non-current liabilities in our Consolidated Balance
Sheets. The remaining $10 million of unrecognized tax
benefit liabilities have been offset as a reduction against
certain state net operating loss carryforwards recorded as
part of our deferred tax assets. These unrecognized tax
benefits are directly associated with tax positions taken in
the tax years that resulted in the net operating loss
carryforwards.
The amount of unrecognized tax benefits that, if
recognized, would affect the effective tax rate as of
December 31, 2012, was $90.9 million.
We recognize accrued interest and penalties associated
with unrecognized tax benefits as part of the tax provision.
As of December 31, 2012 and 2011, we had $14.0 million
and $12.4 million, respectively, of accrued interest expense
associated with unrecognized tax benefits. Income tax
expense included interest associated with unrecognized tax
benefits of $2.5 million, $2.7 million, and $1.7 million, in
2012, 2011 and 2010, respectively.
RadioShack Corporation and its U.S. subsidiaries join in the
filing of a U.S. federal consolidated income tax return. The
U.S. federal statute of limitations is closed for all years prior
to 2004. Foreign and U.S. state jurisdictions have statutes
of limitations generally ranging from 3 to 5 years. Our tax
returns are currently under examination in various federal,
state and foreign jurisdictions. It is reasonably possible that
the amount of unrecognized tax benefits related to certain
tax positions could be reduced by $9 million over the next
12 months because of settlements or the expiration of the
applicable statute of limitations.
NOTE 11 – NET (LOSS) INCOME PER SHARE
Basic net (loss) income per share is computed based only
on the weighted-average number of common shares
outstanding for each period presented. Diluted net (loss)
income per share reflects the potential dilution that would
have occurred if securities or other contracts to issue
common stock had been exercised, converted, or resulted
in the issuance of common stock that would have then
shared in the earnings of the entity.
The following table reconciles the numerator and
denominator used in the basic and diluted net (loss) income
per share calculations for the years presented:
(In millions) 2012 2011 2010
Numerator:
(Loss) income from
continuing operations $ (139.4)
$ 67.1 $ 190.7
Discontinued operations,
net of taxes -- 5.1 15.4
Net (loss) income $ (139.4)
$ 72.2 $ 206.1
Denominator:
Weighted-average
common shares
outstanding
100.1
102.5
120.5
Dilutive effect of
stock-based awards -- 0.8 2.2
Weighted-average shares
for diluted net income
per share
100.1
103.3
122.7